Tag: Real Estate Financing

  • The Path to Fannie Mae and Freddie Mac Approval, Reoblogsite.com


    So, you have been a mortgage broker for a while now, and you think you are ready for the next step: approval by Fannie Mae and Freddie Mac as a Seller and Servicer, so you can service your own loans.

    In general, to be an approved Seller and Servicer for either FNMA or FHLMC, you are going to need to meet the following requirements: a corporate net worth of $500,000 to $1 million; adequate warehousing lines; three letters of reference; errors and omissions insurance and fidelity insurance; an excellent quality control program; and personnel experienced in all aspects of mortgage origination, processing, underwriting, funding and shipping, administration, service accounting and, of course, servicing itself.

    These are only general, minimal requirements, so let us take a more detailed look at the requirements and the process. I preface the following information with the understanding that the reader realizes that approval of a firm by FNMA or FHLMC is at their complete discretion and is, to a great extent, a judgment call based upon your total package and all the factors included in it. All requirements are subject to change.

    As far as FHLMC approval goes, net worth requirements are either $1 million or $500,000, depending upon whether you use the generally accepted accounting principles (GAAP) net worth of $1 million, or the FHLMC definition of acceptable net worth ($500,000). Unfortunately, a lot of potential applicants are not aware of the $500,000 net worth possibility. Even a call to Freddie Mac still found the operator not aware of that option, and claiming $1 million was a hard, fast requirement to be approved.

    Acceptable net worth is defined by FHLMC as GAAP net worth minus any of the following: goodwill, purchased servicing, capitalized excess servicing, investments in joint ventures, investments in limited partnerships, REO, property, plant and equipment, receivables from affiliates, investment in affiliates, other intangibles and other assets, and deferred taxes on capitalized excess servicing. Audited financial statements are to be provided as part of the approval package.

    One requirement that many still think is in force, but is not, is the requirement that a mortgage company be approved by HUD-FHA in order to be a FHLMC Seller and Servicer.

    Additional requirements include having an acceptable quality control program; Errors and Omissions insurance and Fidelity insurance of $300,000 minimum coverage; a business plan (specific and reasonable for short and long term strategies); three reference letters from investors; credit reports on managing executives; adequate experience in origination and sales; and experience in underwriting, administration, default management, REO servicing and investor accounting, and servicing. Servicing is usually the weak spot for mortgage companies. You must show that whether or not you use a sub-servicer, and you have staff with more than adequate ability and knowledge to handle servicing. FHLMC no longer says you need a specific amount of servicing on the books to be approved and, in fact, you can be approved with no servicing, but the stronger the package, the more likely you will be approved.

    If you are accepting Third Party Originated (TPO) loans, you also have to provide information on your standards and procedures for accepting and servicing them, since there have been so many problems with the history of these loans.

    In order to apply to FHLMC, you request an application package (call 800-Freddie) and follow the instructions completely. You will need to submit resumes, financial statements, credit reports, a business plan, various certifications, the approval you want, a list of parent or subsidiary companies, corporate liaisons in various corporate capacities, any legal problems with company or managing officers, a list of investors (including their reference letters), a list of your warehouse lenders, quality control program and questionnaire, number and quantity of loans originated and sold in the last two years, number and quantity of loans serviced plus your delinquency ratios, copy of insurance coverage and all other pertinent information you feel would help your package. There is a $1000 application fee.

    As far as FNMA is concerned, their requirements are very similar to those of FHLMC. There are differences, though, and as I list the general requirements (FNMA also can request any additional information it needs; the application package is a guideline and basis from which to work), any item that is different will be identified with an asterisk.

    You need a corporate net worth of at least $500,000, a quality control program, experienced personnel in all areas pertinent to the business, proof that the personnel have not had any problems when employed at other FNMA-approved entities, a servicing system in place (your own or sub-services), Errors and Omissions and Fidelity insurance (same dollar amounts), references, credit reports, history and scope of the business, list of any owner of five percent or more of the company, audited financial statements, estimated volume to be sold to FNMA during the first 12 months, and availability of all key personnel for an on-site interview with FNMA staff.

    In order to apply to FNMA, call the nearest regional office and request an application package. You will return the following information (some of it on their forms): areas you operate within; the approval you are applying for; any legal disclosures of problems with the company or personnel; narrative on history and scope of the company; resumes in same areas as FHLMC; investors you are currently servicing for; proof of Errors and Omissions and Fidelity coverage; financial statement; quality control program; FNMA Selling ad Servicing Contracts; estimated first 12 months sales volume; quantity and dollar amount of loans originated in the last three years; credit authorizations; number of employees in servicing and origination; liaison personnel in selling, underwriting, servicing and investor accounting; number and dollar amount of loans serviced; list of delinquencies; list of warehouse lines; and various certifications, along with a $1000 application fee.

    To summarize, if you have, or are willing to acquire, the net worth, the insurance and plenty of experienced personnel, and can show you have the corporate capacity to meet all of the approval requirements of FNMA or FHLMC, maybe you should consider becoming a Seller and Servicer. The mortgage business is in an improving cycle, with the housing market (new and resale) beginning to show signs of coming alive again. This may be your time. But remember, it is not right for everyone, so be sure the approvals and servicing would fit into your corporate goals.

    REOBlogsite.com
    http://www.reoblogsite.com/reo-management/the-path-to-fannie-mae-and-freddie-mac-approval.html?utm_source=twitterfeed&utm_medium=twitter

  • Oregon gets federal money to help unemployed avert foreclosures, Charles Pope, The Oregonian


    WASHINGTON — The Obama administration released $600 million Wednesday to help unemployed homeowners in Oregon and four other states avoid foreclosure.

    Oregon, where one in every 76 homes is facing foreclosure, qualifies for $88 million.The money will be used to help distressed homeowners.

    The money will be available to state housing authorities in Oregon, Ohio, South Carolina, Rhode Island and North Carolina “to support local initiatives to assist struggling homeowners in these five states that have high percentages of their population living in areas of economic distress due to unemployment,” the Treasury Department said.

    According to Treasury, the money will augment “targeted programs to expand options for homeowners struggling to make their mortgage payments because of unemployment, as well as programs to address first and second liens, facilitate short sales and/or deeds-in-lieu of foreclosure, and assist in the payment of arrearages.”
    State officials in Oregon estimate that up to 7,400 homeowners will be helped.

    Among other things, Oregon will:

    — provide funds to assist with loan modifications, including through principal reduction and arrearage payments.

    — provide up to six months of mortgage payment assistance for an unemployed borrower or a borrower experiencing other financial distress. Lenders or servicers would be required to match for up to an additional six months.

    — offer funds to ensure a successful modification or pay arrearages or other fees incurred during unemployment or financial distress once a homeowner has regained employment or recovered from that financial distress.

    — provide assistance to borrowers who participated in the state’s Hardest Hit Fund unemployed borrower program but did not subsequently regain employment in order to facilitate a short sale or deed-in-lieu of foreclosure. This assistance would be matched by lenders or servicers.

    In all, states estimate that approximately 50,000 struggling homeowners will receive aid.

    Wednesday’s announcement is only the latest in the Obama administration’s efforts to dent the foreclosure crisis.

    The money is part of the $2.1 billion is directing from its existing $75 billion mortgage assistance program to a total of 10 states. Each state designed its own plan. Treasury approved money in June for Arizona, California, Florida, Michigan and Nevada.

    In the latest package of aid, Ohio will receive $172 million — the largest amount of money. That could aid around 15,000 homeowners by helping borrowers pay their mortgage for up to a year while they search for jobs. It could also provide incentives for mortgage companies to reduce borrowers’ mortgage balances.

    North Carolina is receiving $159 million, and South Carolina is in line for $138 million while Rhode Island is receiving $43 million.

    http://www.oregonlive.com/politics/index.ssf/2010/08/oregon_gets_federal_money_to_h.html

  • Multnomahforeclosures.com: Bank Owned Property List Update for July 2010


    July REO list for bank owned property has been added to Multnomahforeclosures.com . REO lists for Clackamas, Multnomah and Washington County has been addd to the site. The homes listed in these files were deeded back or returned to the investor or lender due to the finalizing of the foreclosure process. Many of these homes may already be on the market or will soon will be. It would not be a bad idea to contact the new owner of these properties and find out what their plans are when it comes to their future ownership of the property.

    Multnomah County Foreclosures
    http://multnomahforeclosures.com/

  • Multnomahforeclosures.com: Update with July 30, 2010 NOD Lists


    Multnomahforeclosures.com was updated today (July 31, 2010) with the largest list of Notice Defaults to date. With Notice of Default records dating back over 2 years. Multnomahforeclosures.com documents the fall of the great real estate bust of the 21st centry. The lists are of the raw data taken from county records.

    It is not a bad idea for investors and people that are seeking a home of their own to keep an eye on the Notice of Default lists. Many of the homes listed are on the market or will be.

    All listings are in PDF and Excel Spread Sheet format.

    Multnomah County Foreclosures

    http://multnomahforeclosures.com

  • The Future of Fannie Mae and Freddie Mac to be decided August 17th, by Jim Kim, FierceFinance


    The most glaring omission from the Dodd-Frank financial reform act is without a doubt the lack of a plan for Fannie Mae and Freddie Mac. The government-sponsored enterprises remain encumbered with billions in toxic loans, and unfortunately, the movement to fix these institutions has been stuck on the back burner–until now. The Treasury Department has announced it will hold a conference on the future of Fannie and Freddie on Aug. 17. A Congressional hearing will be held in September.

    The administration seems bent on offering a concrete proposal in January, which is welcome news, as the travails of these entities are costing taxpayers a lot of money. So far the tab stands at $145.9 billion; it will likely end up topping $380 billion–which would make it by far the most expensive bailout effort to date.

    What sort of solutions will be discussed? I doubt anyone will argue that having some sort of body that guarantees mortgages and sells them for securitization is a bad thing. The key will be to somehow retain the salutary effects of this process, which can lower costs, expand the ability of lenders to make home loans, and protect lenders from rate shocks.

    Taking the long view, the rise of securitization has been a welcome development. The real estate crash has revealed that there’s a down side if you let securitization run amok. One theory, as noted by the New York Times, is that this process has led to lax lending. “If mortgage issuers passed along the default risk to Freddie Mac and Fannie Mae or to the buyers of mortgage-backed securities, those issuers would have little incentive to screen borrowers properly. While issuers often do have some skin in the game, the enormous amount of both securitization and sloppy lending during the boom made it natural to link the two phenomena.” Indeed, defenders of Fannie and Freddie have long argued that they were pressured to start guaranteeing non-prime loans, to expand the homeownership pie. On top of all of this, securitization has made it harder for loans to be worked out. These are certainly reasonable theories.

    The bottom line is that securitization of mortgage loans based on a sound lending standard is a good idea. But how best to do that? Perhaps the biggest issue is whether the government has a role in subsidizing this effort. And if so, what exactly is that role? What are your ideas?

    FierceFinance
    http://www.fiercefinance.com/story/future-fannie-mae-freddie-mac-be-decided-aug-17/2010-07-29?utm_source=twitterfeed&utm_medium=twitter

  • FHA Loan Gravy Train Derailing?


    After a week of travel to Motown on business, and seeing the housing bust at ground zero, I have to ask you all some questions regarding housing and our government’s role in the quagmire.

    Fannie and Freddie dominated the easy loan space to back all borrowers with a pulse from 2000-2007, and now they occupy a toxic waste dumping ground for many a bank’s bad mortgages while trading as penny stocks with all but explicit taxpayer backing.

    The new game in town when it comes to financing mortgages circa 2008-2010 is the truly explicit government backed FHA. That federal agency is THE mortgage market, without which no private bank/investor in their right mind would loan money to anyone to buy real estate at today’s prices. Private loan origination to purchase real estate has all but disappeared.

    Is the FHA spigot beginning to twist toward the “off” position?

    “The Federal Housing Administration’s Mortgagee Review Board (MRB) published a notice today to announce dozens of administrative actions against FHA-approved lenders who failed to meet its requirements. The total amount of originators that used to write FHA-backed mortgages, the report shows, but are restricted from doing so today, has surpassed the 900 mark.”

    “The rate of seriously delinquent mortgages backed by the Federal Housing Administration (FHA) declined slightly from May to June, but the gross number of mortgages that are either 90 or more days past due or in foreclosure increased 35% year-over-year.”

    “The total value of unpaid FHA mortgages was $865.5bn in June, up 30.3% from $663.8bn one year ago and up 3.3% from $837.8bn in May.”

    So we’re on the hook as taxpayers for Fannie and Freddie, and now the FHA is approaching the $1Tillion mark. Delinquencies are skyrocketing, yet the federal government keeps propping up housing prices despite the reality of stagnant wages. Why? How long can this last? When does cold hard cash flow via wages show up in the equation? Perhaps sooner than we all think…

    “A total of 168,915 FHA loan applications were received last month, down 6.9 percent from May and 29.4 percent lower than levels seen a year ago, according to the FHA Outlook report.”

    How much of an income and/or VAT-sales tax increase is Portland and Oregon willing to pay in order to prop up housing prices via government intervention and real estate bailouts? What business does the government have in financing our privately owned assets?

    The sooner the government gets out of housing finance, the sooner most Americans will be able to truly afford a home based upon local wages. Why do we vote for and pay our elected officials to artificially prop up housing and real estate prices?

    This post is just a few thoughts from the road, after seeing real estate up close in the Detriot and Southern Michigan area at truly rock bottom prices. Based upon what I saw during my travels, wage based reality bites…

    Portland Housing Blog
    http://portlandhousing.blogspot.com/2010/07/fha-loan-gravy-train-derailing.html

  • Demystifying Income Documentation, By Jason Hillard, Fireside Lending Group


    Having discussed the importance of the home loan pre-interview, I would like to dedicate a little time to income documentation. There is a lot of confusion about this subject, and thanks to an atrociously lazy mainstream media, and some irresponsible “new media”, disagreements on the issue are still coming up in day to day business operations.

    This is a list of the items your mortgage professional NEEDS from you, REGARDLESS of what type of home loan you want or what type of borrower you are.

    –most recent 30 days of paystubs
    –most recent statement for any depository account, ALL PAGES
    –most recent statement for any other liquid assets or retirement plan
    –most recent 2 years federal tax returns with ALL PAGES/SCHEDULES
    –any divorce/alimony/child support documentation
    –any bankruptcy discharge documentation from the last 10 years

    The reality is that most loans now are what is referred to as “full doc”, which is to say that you will be subject to a financial rectal exam. There are some stated income programs coming back, but bank on your next home loan funding as a result of a full fledged inquest into your personal finances. We’re talking mortgage court-marshal, so you need to be prepared.

    It may sound funny, but you really should frame your thinking around this analogy. Your mortgage professional is really taking up your case, not just packaging a home loan. The underwriter is the judge, jury, and executioner. That is why you need someone who vigorously represents you, like us. (We are not above plugging our outstanding services.)

    So I am now going to explain the thinking behind each of these items, from an underwriter’s perspective. You know you are a good person who will pay back what is owed, and so do we. Let’s delve into the mind of the cagey underwriter though, and see where it leads.

    30 days of paystubs
    This is pretty simple, obviously. But it does go a little beyond “does this person have a job that pays legal tender?”

    What the elusive underwriter is searching for is your year-to-date (YTD) numbers. Does this person work an average of 40 hours? Is there overtime pay that is consistent? What about commisions and bonuses? And is this borrower’s income consistent with the tax returns provided?

    Now, some check stub formats provide a lot of information, and others leave something to be desired. However, it is estimated that 30 days worth of paystubs will provide an accurate representation of monthly income calculated on a yearly basis. “In plain english”, you say? Your YTD pay divided by the number of months so far this year minus one month equals your monthly income.

    Most Recent Depository Statements
    This is usually your most recent bank statement, for all accounts you have. This helps to verify liquid assets. It is very important when running your situation through the automated underwriting software to have this information accurate. This verifies the number of months of cash reserves you have and/or whether you actually have your down-payment available.

    Why do we emphasize ALL PAGES? We know…your balance is on the first page. However, when an underwriter sees “page 1 of 7″ on your bank statement, they immediately want to know, and quite honestly NEED to know what the other 6 pages say. Are there car loans, lines of credit, etc. that aren’t shown on the 1st page? The underwriter needs to assume the worst at all times in order to protect their mortgage company from exposure to loan buybacks.

    Other Asset & Retirement Statements
    More “liquifiable” assets. Stocks, bonds, 401ks, IRAs, etc. What resources do you have that you can sell to make your payments in the event that your income disappears? That’s why we need proof of these items. Important note: for most loan programs, the value of 401ks and IRAs will be decreased by 3o per cent. The reason for this is that if you lose your job, and have to dip into these funds to make your payments, there will be about 30% in penalties and taxes you will have to pay for early withdrawal.

    Last Two Years Federal Tax Returns (All Pages)
    These aren’t always needed. However, we always ask for them. More and more, the automated underwriting systems are requiring them. And even if the underwriter doesn’t need them, it’s a good idea to show them to your mortgage professional. Why? Because, you will be signing a disclosure (4506T) stating that the lender has the right to request transcripts of your last 2 federal tax returns. This right will be exercised. Having a competent mortgage professional look over them upfront assures a smaller chance of “issues” coming up later. You may have what are called “2106” expenses, which reduce your income in the eyes of the underwriter. If you are riding the fence with your debt-to-income ratio, this can implode your home loan.

    As for the self-employed, we will always need 2 years of federal tax returns. There’s no way around it right now.

    Divorce Decrees & Child Support
    Divorce is a nasty thing, and it can rear its ugly head AGAIN the next time you apply for a mortgage. Is there an alimony agreement? Alimony reduces your income. How long will it continue? Is there child support involved? Again, how long will you be obligated to pay it? Is either amount scheduled to increase? The bank has to look at the big picture when it comes to your overall liabilities, and these can play a huge role in determining your debt-to-income ratio.

    Bankruptcy
    Chapter 7 or Chapter 13? When was it discharged? What was included? What was excluded? The details and date of your bankruptcy discharge is a crucial piece of information. The lender must document what liabilities remain, which are cleared, and that the requisite amount of time, as prescribed by the mortgage product you are applying for, has transpired since the discharge.

    Other Circumstances
    You may have a pension that you are looking forward to in the future. Unfortunately, it doesn’t have any cash value now, so it cannot be considered as an asset right now. And you’re not receiving any income from it right now, so it doesn’t offset your debt-to-income ratio.

    Maybe you just started your own business last year, and things are going great. Unfortunately, current underwriting guidelines do not allow us to consider self-employed income unless you have been in business for two years, as evidenced by 2 years of federal tax returns.

    There are all kinds of unique situations, and we are always happy to help you determine where you stand.

    Please understand that in order to truly apply for a home loan, you need to have these items prepared. We don’t ask for them just to make your life miserable. Your mortgage professional is your advocate, not your enemy. You have to present them with ALL of the information so that they can properly represent you in front of the judge. I mean underwriter.

    If you have any questions about income documentation or mortgages in general, please feel free to shoot us an email! Jason Hillard, Fireside Lending Group jasonh@firesidelendinggroup.com

  • MultnomahForeclosures.com Update: New Notice of Default Lists Posted


    Multnomahforeclosures.com was updated today with the largest list of Notice Defaults to date. With Notice of Default records dating back over 2 years. Multnomahforeclosures.com documents the fall of the great real estate bust of the 21st centry. The lists are of the raw data taken from county records.

    It is not a bad idea for investors and people that are seeking a home of their own to keep an eye on the Notice of Default lists. Many of the homes listed are on the market or will be.

    All listings are in PDF and Excel Spread Sheet format.

    Multnomah County Foreclosures

    http://multnomahforeclosures.com

  • Multnomah County Foreclosures


    It has been nearly 5 months since Multnomahforeclosures.com (http://www.multnomahforeclosures.com/) has been updated. As of July 6th, 2010 the site will be updated weekly again. Each week the Notice of Default lists for several counties in Oregon and Clark County will be posted. This information is public information and is provided to make it easier for real estate buyers and the professionals that serve them to develop opportunities in the Oregon market.

    Visit Multnomah Foreclosures, download the Notice of Default reports for free and help the Oregon Market grow!

  • Northwest Residential Apprasial LLC. A Company I will not work with again


    I had an appraiser from Northwest Residential Appraisal LLC (http://www.nwresidentialappraisal.net/) inform me that most people that pay cash for real estate pay more than people that obtain loans. He also asserted that sellers do not consider cash buyers more favorably than they do buyers that obtain loans. In my opinion this Apprasier is either dishonest, ignorant of historical real estate trends when it comes to cash buyers over buyers that seek financing or is covering for some other prejudice he hold against this property. Regardless, I do not want this company around my business again.

    This is the type of professionals we have to deal with in Oregon. Everywhere else on the planet a cash buyer is always considered a better option and a buyer that has to obtain a loan as more risky. That is unless you are working with Northwest Appraisal Services LLC.

    I will never allow a client of mine to become a victim of this company again.

    Fred Stewart
    Stewart Group Realty Inc.

  • FHA CHANGES ARE COMING!


    Mortgage Insurance Premiums increased from 1.75 to 2.25% – Effective April 1st
    · Seller Contribution decreased from 6% to 3% – TBA early Spring

    · Increased Monthly MI – Effective date TBA

    Increased down payment for borrowers with lower credit scores TBA

    TAX CREDIT: Buyer must have a binding purchase contract by April 30th to qualify for tax credit.

    WHAT DOES ALL OF THIS MEAN?

    A 200k purchase price after April 30th may have up to a 15k impact on the borrower.
    (Assuming current rates stay the same. Well…we all know what happens when we assume J)

    ACTION REQUIRED:

    Convert any “shoppers” into BUYERS between NOW and April 30th!

    Don’t hesitate to call or e-mail with any questions you may have concerning how this will affect your clients.

    Melissa Stashin

    Sr. Mortgage Banker/ Branch Manager
    NMLS #40033

    Pacific Residential Mortgage, LLC

    2 CenterPointe Dr. STE 500

    Lake Oswego, OR 97035

    (503) 670-0525 x113

    (971) 221-5656 Cell

    (503) 670-0674 Fax

    (800) 318-4571 Toll Free

    http://www.TeamStashin.com

  • Colonial’s failure could make mortgages more scarce, CNN Money


    The collapse of Colonial BancGroup poses another hazard to the still-shaky housing market: Mortgages could become even harder to get.

    The Southern regional bank, based in Montgomery, Ala., was the largest remaining player in warehouse lending, which provides short-term financing to independent mortgage bankers. At one time, these mortgage bankers originated half of all U.S. home loans using these funds.

    Today, the warehouse lending market is decimated. In 2007 it was worth an estimated $200 billion; now there is just $25 billion available — 25% of which belongs to Colonial. With Colonial’s failure, those funds could become even more scarce.

    “It’s like if they shut down half the concession stands at the baseball game,” said Scott Stern, CEO of the Lenders One mortgage bankers group in St. Louis. “It means the guy who’s last in line is going to have to wait a lot longer to get a hot dog, and in this market who knows what the price is going to be when he gets there?”

    The money began drying up when investors started shunning mortgages not guaranteed by government-backed agencies such as Fannie Mae. These loans, made by the independent mortgage bankers, had become closely associated with the worst excesses of the housing bubble.

    Among the biggest players in the market were Countrywide, rescued last year by Bank of America, and Washington Mutual, which collapsed last September. This year, two other prominent lenders had to unwind their warehouse business: National City, the troubled Cleveland bank acquired last fall by PNC; and Guaranty Bank, the Texas thrift that warned last month that it expects to be taken over by regulators.

    To be sure, everyone isn’t fleeing the market. ResCap, a troubled home lender owned by the government-supported GMAC finance company, said earlier this year that it would expand its warehouse lending business. Citi said this month it expects to put $2 billion into warehouse lines this year.

    But with small banks failing and pulling back and many larger players, such as JPMorgan Chase and Wells Fargo, not aggressively pursuing new business, few expect the new entries to reopen the market.

    Thus the industry is lobbying Washington to give government-backed Fannie Mae, Freddie Mac and Ginnie Mae a bigger role in warehouse lending.

    But with those entities already backing some 90% of current U.S. mortgage originations — and taxpayers on the hook for potentially hundreds of billions of dollars of losses at Fannie and Freddie — that idea is proving a hard sell.

    Still, mortgage bankers are hoping the latest tremors in the banking industry will make Washington more receptive.

    “We’re trying to show people how important this is, but I’m not sure the urgency is there,” said Glen Corso, a longtime mortgage industry executive who now heads the Warehouse Lending Project that’s advocating an expanded federal role. “We’d like to see a private solution, obviously, but failing that we need to get something in place to keep financing flowing.”

  • New Web Site: OregonRealEstateWanted.com


    I am excited to let you know that I have created and released a new web site. OregonRealEstateWanted.com (http://www.oregonrealestatewanted.com/) The ORW web site will be advertising the buyers I am working with to the public much like Stewart Group would advertise a real estate listing. My hope is to develop the most opportunities possible for my buyers.

    If you have friends or family looking for real estate and they want their needs exposed to the widest audience possible….let them know about the OregonRealEstateWanted.com web site. Brokers, feel free to use the site as one of your many tools. Review the site from time to time and see if any of the buyers listed there are looking for YOUR listing.

    Buyers, that seek to have their ads placed on the OregonRealEstateWanted.com web site should contact Fred Stewart, Broker Stewart Group Realty Inc.

    Fred Stewart
    President/Broker
    Stewart Group Realty Inc.
    503-289-4970 Cell
    503-296-2336 Fax
    info@sgrealty.us
    http://www.sgrealty.us

  • Important New Regulations Affecting Closing Dates!


    From the Desk of Phil Querin, Partner, Davis Wright Tremaine, LLC, PMAR/OREF Legal Counsel

    Although the initial annual percentage rate (APR) on a residential loan is disclosed in the Good Faith Estimate early in the purchase transaction, it can change before closing. Under the new rules enacted in the Truth in Lending Act, effective on July 30, 2009 (last Thursday), if the actual (i.e. the final) APR varies from that initially disclosed on the Good Faith Estimate by at least .125%, then there is a mandatory additional three (3) business day waiting period before the transaction can close. So if the final APR isn’t disclosed until late in the transaction, it could potentially force the three (3) business day period to extend beyond the closing date set forth in the Sale Agreement.

    As you know, the Oregon Real Estate Forms (OREF) closing date is written in stone – there are no automatic extensions – so if it appears that the APR could be held up or there is any indication that the APR will change at closing, brokers would be well-advised to get seller and buyer to agree in advance to a written extension as a contingency if the final APR causes the three (3) business day period to extend beyond the scheduled closing date. OREF will be meeting shortly to consider some additional language for the new sale agreement form, although it won’t actually get printed and distributed until early next year. In the meantime, I have recommended to my clients that they may wish to consider adding an addendum to their sale agreements with language such as the following: ” In the event that Buyer’s final Annual Percentage Rate (“APR”) differs from the APR initially disclosed to the Buyer in the Good Faith Estimate by .125% or more, the Closing Deadline defined in the Real Estate Sale Agreement shall automatically be extended for three (3) additional business days in accordance with Regulation Z of the Truth in Lending Act ,as amended on July 30, 2008.”

    This, of course, is subject to the review of the companies’ principal broker and legal counsel.

  • Amateur historian Alan Silver unofficial archivest of Portland’s MLK Jr. Bouldevaby Anna Griffin, The Oregonian


    Amateur historian Alan Silver unofficial archivest of Portland’s MLK Jr. Bouldevard
    by Anna Griffin, The Oregonian
    Saturday June 06, 2009, 6:30 AM

    Michael Lloyd, The Oregonian
    On his blog, MLK in Motion, Alan Silver tracks changes up and down the boulevard. His interest may come from the similarities between his adopted home and the place he grew up in, southern New Jersey. Philadelphia and Trenton, N.J., have suffered their own urban decay and struggled with their own racial tensions.
    Northeast Martin Luther King Jr. Boulevard is the kind of place most people speed past, foot on the accelerator, eyes straight ahead. It’s four lanes of concrete and faded dreams, nondescript in spots, downright ugly in others, seemingly architecturally designed to be ignored.

    But when Alan Silver leads the way, each block tells a story.

    Way up north, near where King meets Rosa Parks, Silver points out a little green house that once was an underground music club and weekend brunch spot, operated without any permits. Farther south, at Fremont, a pretty, new, publicly funded building with plenty of vacancies marks the spot where neighbors, angry over issues of traffic, trash and the treatment of restaurant workers, once forced McDonald’s to give up its MLK beachhead. A few blocks down from that, a squat little building that does nothing to draw the eye just happens to be on the National Registry of Historic Places.

    Today, it’s home to Bardy Trophy. But 75 years ago, Van De Kamp’s Holland Dutch Bakery sold coffee cakes and other pastries from the shop, and a big Dutch windmill churned on the roof.

    “Wouldn’t that have been a cool thing to see every day?” asks Silver, a rumpled guy with a bike messenger bag on his back and a head full of obscure local lore. “Can’t you just see the morning rush? All those immigrants who worked down at the rail yards going in for coffee and pastries on their way down the hill to work?

    “This place used to be so vibrant. Most people have no idea.”

    Silver, a 38-year-old blogger and amateur historian, is perhaps the least likely tour guide for what used to be the heart of first immigrant and then black Portland. He’s a burly, sweet-natured white guy from Southern New Jersey with no background in planning or research, just an instinct for storytelling and an unusual interest in his adopted hometown’s backstory.

    “I tell people it’s my hobby,” he says. “Really, if I’m honest, I’m kind of in love with the place.”

    The street that began as Margaretta, went a century as Union and finally was renamed to honor King has been one of Portland’s main north-south arteries since the late 1800s. It’s also always been a sort of city-within-a-city for the City of Roses’ forgotten classes.

    In the late 1800s and early 1900s European immigrants made the boulevard their Main Street. They studded it with shops, saloons and small bungalows, all an easy commute by foot, horse or ferry to new and bustling rail- and shipyards along the Willamette River. African Americans were driven to the neighborhoods around the avenue by the Vanport floods in the 1940s, the construction of Memorial Coliseum in the 1950s and redlining by real-estate agents.

    For most of its life, the street was a commercial hub, prosperous if segregated. That changed in the late 1960s. The opening of Interstate 5 — a faster route north — drove some business owners to the suburbs. Race riots scared away many more.

    For much of the past three decades, the boulevard has suffered rising crime, dropping property values and the highest storefront vacancy rates in town. Hail Mary planning decisions — adding medians and removing on-street parking in 1980; rezoning large swaths of MLK for higher-density homes and shops in the early ’90s — added to the general sense of desolation.

    “What is Union Avenue?” planners asked in an early 1970s Model Cities application. “A voice, a place left alone too long.”

    That document is among several thousand pages that crowd Silver’s apartment.

    “Maybe I’m fascinated with this part of Portland because it reminds me of home,” he says. “Maybe I feel at home in an area that has fallen into misuse.”

    Silver grew up just outside Philadelphia, in a part of the world dominated by highways, urban decay and tight living. “A treeless cement wonder” is how he describes it. He migrated west almost two decades ago on a whim.

    “I was 21 years old and had no idea what I wanted to do, but I knew if I stayed there I was going to get in some kind of trouble,” he said. “Every place I could think of moving was too hot, too cold, too Southern, too big. But I didn’t know a thing about Portland — nobody did back then — so that decided it.”

    The Greyhound trip out here took three days, but proved worth it when a fellow passenger offered to let Silver and a buddy crash on his floor for a while. The past has always fascinated him — he earned a bachelor’s degree in sociology at Portland State studying the role of women in the workplace during the Great Depression — but graduate school turned out to be more of a grind than he wanted.

    “I never really wanted to work very much,” he says. “So I didn’t.”

    He jokingly describes himself as a dilettante, although he’s definitely not a silver spoon sort. Rather, he’s one of those Portland types who holds a job — these days, he’s a part-time church bookkeeper — to support his hobbies: reading, hanging out with friends, hosting a pirate radio show, taking pictures.

    Silver lives a couple blocks east of MLK and bikes or walks everywhere. A few years ago, he was strolling through the neighborhood when he came upon a box of free stuff someone left on a corner. Inside, he found a weathered book detailing Seattle’s African American history and a pristine copy of the Oregon Mirror, a long-defunct black newspaper.

    Those finds got him thinking.

    He knew the neighborhood where he lived once was part of Albina, an independent city sucked up by Portland in 1891 and since divided into 10 separate neighborhoods. He already had a habit of taking pictures of things he saw on his daily travels along MLK. Gradually, casual interest turned into a serious pastime. He began using his days off to read old newspaper clippings at the library, then branched out into planning documents and historic maps. He grew braver about popping his head into offices and stores to ask questions: How long have you been here? What was here before? Does the building have a story?

    Last year, he started a blog, “MLK in Motion”, mostly just to have a place to collect his photos. It’s evolved to include updates on construction projects such as the new Planned Parenthood building, plugs or pans of the boulevard’s increasing roster of restaurants, funny asides and miniature history lessons. It barely scratches the surface of his interest, or his research.

    ***
    There aren’t a lot of people left, for example, who can tell you about the time Portland State professor and antiwar activist Frank Giese firebombed a military recruiting station at the northeast corner of MLK and Shaver, now a church.
    Less than a block away, no plaque marks the spot where, in 1981, two off-duty cops tossed dead possums in front of the old Burger Barn. Nor does anything indicate the outrage among many African Americans when an investigator described the incident as an “ill-advised prank” rather than racial harassment.

    Few of the more than 25,000 people who drive MLK each day have ever looked closely enough to see the scars on the sides of the few remaining pre-1920s buildings, the marks left when business owners simply lopped off the fronts in response to a city street-widening.

    Silver has both the curiosity and the time to investigate such things. Like the time he couldn’t stand the intrigue anymore and opened an overdue water bill that had been sticking out of an abandoned auto shop’s front fence for weeks.

    “They owed $24,000,” he says. “So I’m guessing they didn’t move voluntarily.”

    Silver points out the former home of Fernando’s Auto Shop as an example of what MLK looked like in between its heyday as a business hub and the current redevelopment. “Garage after garage,” he says. “Functional, not pretty.”

    Similarly, when asked to point out his least favorite stretch of MLK, he heads to the intersection with Ainsworth Street. A Walgreens, a Safeway and a Starbucks sit on three of the four corners, ugly examples of urban renewal done wrong. In addition to being decidedly mundane and unfriendly architecturally — urban renewal that satisfies the wallet but not the eye — each business sports a sign out front welcoming guests to a different neighborhood. “King? Woodlawn? Piedmont? Where are we exactly?” he says, holding up his hands in mock befuddlement.

    He’s thinking about writing a book but doesn’t know where to begin. There’s a definite need: In most city reports, the street’s history starts in the 1980s. He’s certainly got the attention span. Silver once spent a year reading everything he could find about ancient Greek drama. Even if he never finds the will to put his Albina research down for posterity, at least this obsession gets him out of the house and talking to other people.

    “The blog is more about posing questions than finding answers,” he says. “How did this place get this way? Why was it so ignored for so long? What did it look like before we all just sort of gave up?”

    ***
    His travels turn up mysteries: He knows the taggers who use the boulevard as their personal, oversized canvasses by name — “Paulrus,” are you out there? — but rarely by face. He wonders who has been slapping stickers showing sepia-toned photographs of Native Americans on telephone poles, and what message they’re trying to send.
    He also finds humor in the oddest places: the smiley face someone crafted in a vacant lot out of dirt and flowers, gone a day after it appeared. Or the corner lot — now vacant, of course — that at various points in history housed both a church and a porn shop. The guy hosting a yard sale one weekend who explained that he calls the boulevard “MLK-TV” because he can sit out on his front porch and always find something entertaining to watch on the street.

    Some of Silver’s work is amateurish. Much is incomplete. But his blog and collection of old papers and planning reports represent one of the most comprehensive efforts undertaken to document this important area’s past. Silver is practicing citizen journalism and, beyond that, even citizen anthropology. He’s filling in the gaps and pulling in closer than any professional journalist or scholar would likely ever have the time, patience or interest in doing.

    “Most people out here want to talk about what they’re doing. They’re excited,” Silver says. “They may look at me a little oddly, but they answer my questions.”

    That’s because these days good things are happening on MLK. Although the recession has slowed the change, taxpayers are finally seeing some payback for the tens of millions in public money pumped into MLK, with new stores, new restaurants, a plethora of affordable housing and even a few offices. Private development is slowly following, although the street is still a long way from attracting a national chain or offering residents all the basic services they need.

    Police statistics say crime has dropped dramatically from the gang warfare days of the 1980s and early ’90s. Silver’s own experience — he sees more people out at night and receives fewer solicitations from prostitutes — confirm that.

    Many old-time residents of the neighborhoods around MLK are dying off or being driven from their homes by gentrification, so the history is disappearing. Few of the area’s new homeowners and investors have the time or inclination to think about how the street became a place to ignore. They’re too busy working to make it more vibrant and make their investments pay off.

    “Maybe it’s something about Portland that people don’t want to figure out this stuff, they don’t want to talk about the past,” Silver says. “It’s certainly different from a lot of places that celebrate their histories or learn from them or — what’s the word I’m looking for? — at least acknowledge them.”

    Anna Griffin: 503-412-7053; annagriffin@news.oregonian.com

  • Short Sale vs Foreclosure – EFFECT ON CREDIT, By Paul Dean, Evergreen Ohana Group


    I thought this information would be beneficial to know, when you are dealing with sellers on a Short Sale basis. Many consumer don’t realize the impact of a short sale on their credit. Read the attached article and commentary from our credit agency below. There are a couple KEY pieces:

    1. Foreclosure – lenders won’t do another loan for 4 yrs. (Bankruptcy is now 4yrs also)

    2. Short sale – if they keep payments current and their credit is relatively intact, and they do due diligence with the lender to determine how they will report the Short sale on their credit report (ie. “settled” is the best, Deed in Lieu is the same effect as a “foreclosure”) this will result is the least amount of damage to their credit rating. That also goes for a Notice of Default (NOD), even though a foreclosure process was started and the seller is able to sell the home prior to it actually going to foreclosure sale, this will be reported as “foreclosure in process” on their credit, which is treated as a “foreclosure” for credit scoring purposes.

    3. Oregon is not a deficiency State. Meaning that Oregon does not pursue the seller for any deficiency. The banks just take the loss, the seller’s credit is damaged, and that’s the end of it.

    4. The biggest advantage to sellers in a Short Sale is keeping payments as current as possible and getting the lender to reflect the account as “settled”. That will allow this borrower to secure another home loan sooner (maybe 2yrs), rather than if a foreclosure or NOD (4yrs) is reported on their credit.

    I think this is valuable information to share with your sellers.

    To Your Success,

    Paul Dean
    Principal
    Evergreen Ohana Group
    5331 SW Macadam Ave, Suite 287
    Portland, OR 97239

    Office: (503) 892-2800 Ext.11
    Fax: (503) 892-2803
    Email: pauld@evergreenohana.com
    Website: http://www.evergreenohana.com
    OR ML-21,WA 510-LO-33391, WA:520-CL-50385

  • Foreclosure leaders focused on 4 states in new metro list, Catherine Clifford, CNNMoney.com staff writer


    The 26 cities with the highest foreclosure rate in the nation are all located in four hard-hit states, with Las Vegas topping the list, according to a report released Wednesday.

    Metro areas in California, Florida, Nevada and Arizona topped the foreclosure filing list for the first quarter of 2009 in a report from RealtyTrac, an online marketer of foreclosed properties. A foreclosure filing includes default papers, auction sale notices and repossessions.

    Las Vegas had the highest rate of foreclosures of any city, with one in every 22 homes subject to a foreclosure filing in the first three months of the year. The rate of foreclosure filings was 4.5%, seven times the national average.

    Merced, Calif., had the second highest rate, with Cape Coral-Fort Myers, Fla., Stockton, Calif., and Riverside-San Bernardino-Ontario, Calif., rounding out the top five.

    “The metro areas with the highest levels of foreclosure activity in the first quarter of 2009 paint a picture of concentrated problems in a relatively small number of hard-hit areas,” said James J. Saccacio, chief executive officer of RealtyTrac, in a written statement.

    Foreclosure rates have been very high in the 4 key states throughout the bursting of the housing bubble, and so it was to be expected that cities from those states would pepper the top of the list.

    However, it was a surprise to see the list so top heavy, according to Rick Sharga, senior vice president at RealtyTrac.

    “The concentration of troubled metro areas within the hardest-hit states, candidly, was even more severe than we expected it to be,” Sharga said. “The degree to which those four states dominated the rankings surprised even us.”

    New problem cities: Meanwhile, some metropolitan areas had a surge in foreclosures. Boise City-Nampa, Idaho, in 27th place, Provo-Orem, Utah, in 37th, and Charleston-North Charleston, S.C., in 51st were examples Sharga gave of areas that had particular strong gains in filings.

    Sharga said the rise of foreclosures in additional regions indicates new factors influencing the housing market as the recession drags on.

    “What we believe we are seeing is some of the areas with unemployment problems,” said Sharga. “These are people living paycheck to paycheck and, when the paycheck is gone, suddenly they can’t afford to make their mortgage payments.”

    The data for RealtyTrak’s metro area foreclosure report is collected from 2,200 counties across the nation, and those counties represent more than 90% of the U.S. population. Some 203 areas are covered by the report.

    Across the nation, foreclosure activity in the first quarter hit a record high, according to another RealtyTrac report issued last week. Total foreclosure filings reached 803,489 in the first three months of the year, the highest monthly and quarterly totals since RealtyTrac began reporting in January 2005.

    The national report also found that the worst of the foreclosures were centralized in a handful of worst-hit states. California, Florida, Arizona, Nevada and Illinois accounted for nearly 60% of the total foreclosure activity in the first quarter, with 479,516 properties received foreclosure filings in those states.

    http://finance.yahoo.com/news/Foreclosure-leaders-focused-cnnm-14996946.html

  • Multnomah County Foreclosure site updated


    New foreclosure reports listed on the multnomah county foreclosure web site. This week a new addition is the bank owned property lists (REO List) for the month of February 2009. This list consists of properties that were forcloused or deeded back to the lender in lew of foreclosure. Some of these homes are on the market but most are not. These lists will have the name and contact information (address) of the owners (lenders) of the property. Contacting the owners for status might allow an opportunity for you to purchase any of these properties in post foreclosure.

    Mulnomah County Foreclosures
    http://multnomahforeclosures.com/

    Fred Stewart
    President
    Stewart Group Realty Inc.
    fred@sgrealtyinc.com
    http://www.sgrealty.us/
    503-289-4970 (Phone)
    503-296-2336 (Fax)