Tag Archives: Santa maria homes

Doing A Short Sale With Bank Of America

With all the lawsuits that Bank Of America has pending against them and all the negative media in the last few years you would think they would do a 180 on their business practices by now.   I am sure they have done some improvements in their business practices in the last few years, not because they wanted to but because they have been forced to.   Especially with all the bad foreclosures that happened and with all the robo signing screw ups as well as mishandling of the paper work.  But it seems that rather than accepting responsibility for their business practices they are still using the same excuses and doing some of the same business practices that got them in the mess that they are in.   Sometimes it makes you wonder how did Bank Of America get to be too big too fail in the first place and where did it all go wrong.

I have been working on doing a short sale for the last 6 months on a property  that happens to be one of the Santa Maria homes for sale.   The property happens to be 2432 La Costa Dr., Santa Maria, Ca. and a very nice home.   Now one of the things when doing a short sale with Bank Of America is that they utilize a company known as Loan Resolutions Corp. to help facilitate the process? At least that is the idea, same idea that the Equator system is used to communicate with the agents to make things easier and more efficient.   So when doing a short sale with Bank of America you are dealing with the bank and investors and LRC as well.  So more moving parts only makes things more simple?

Well turns out that the short sale was approved since Oct. 29, 2012.  But no approval letter was generated?  Or issued ? Now every time I followed with the Negotiator assigned to the file I am told the letters are being reviewed for approval, and I was even told at one time I would have the letter no later than Nov. 08, 2012 well that did not happen.  I did follow up and then told and educated there are other loans in the process and this is a 5 step process on approving letter, writting the letter and reviewing etc etc., and to be patient.  But the suspicion did grow when my calls and emails via Equator went unanswered for days as the seller awaits for a decision as well as the buyer.  Although the huge difference is that the seller has a huge tax liability for thousands of dollars looming over his head if the short sale does not close before Dec. 31, 2012 since that is when the Debt Forgiveness Act expires.

Finally after hours on the phone 11/21/2012 and being transferred several times and even losing connection a few times who knows could of been an error. I finally did get hold of someone that let me know the letter has been generate twice just never sent to me because the buyer was getting  VA financing.  According to the internal notes on their system they did not feel that buyer could close on the transaction before 12/14/2012 because the loan was scheduled to be SOLD to another servicer.   But remember the short sale was approved since 10/29/2012?

This was unbelievable!!! The short sale is and has been approved and its been in the process for months and they had loan scheduled to be sold next month?   Forget about the homeowner having huge tax consequences, forget about the buyer making plans and being patient to buy the home.  Forget about the work and time involved to get the short sale approved and submitting all the documents requested.  Forget about the short sale process would have to be started all over again from the beginning with a new servicer once the loan is sold.

Now upon more phone calls and discussion Bank Of America is blaming LRC (Loans Resolutions Corp), and LRC is blaming Bank Of America but neither one is accepting responsibility for the current situation.   This is completely unprofessional and indifferent to all parties involved, where all parties involved are and or will be suffering some kind of financial losses due to the mishandling and just unprofessional handling of the file.   Bottom line is maybe not all banks are still operating this way but at least one is.   Rather than being truthful and upfront with their intentions.


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Why You May Want To Do A 1031 Exchange

Being involved in 1031 exchange will give you several benefits.  Its something that many investors have used over the years when buying real estate,its basically a tax strategy to defer your taxes so that way you can use the capital and help it to keep on growing and working for you.  Many investors have used it in their approach in buying homes in Santa Maria as investment properties.  It does not just help you to find the right property to own.   where to loan and finding the right people to work with but it also help you in making more money and saving your money from being taxed.  A 1031 exchange is a specific tax stragtegy, that is usually used for those that own real estate property as an investment.  This 1031 exchange can be used to roll-over profits earned from selling real state property to purchase another property instead of paying tax on the property that was already purchased.  For example when an investor buys one of the Santa Maria homes for sale at a discount and later turns around and sells that property for a profit he can take that profit and reinvest versus having to pay taxes on that profit as he normally would have to do on a regular transaction.  But there are some specfics that you need to familiarize yourself with first, now there is more to it than just this but at least you will have some idea and enough for you to want to learn more about doing a 1031 exchange.

There are two major benefits of 1031 exchange, first, it allows you to delay specific tax from the gains of the sale of the property, and instead invest it into other properties, from the capital gain so that it can be used later. Second benefit from 1031 exchange is that it allows for more equity to be part of the investment, since you are reinvesting your gains from the previous sale withoug having to give up any of it to taxes you have more equity invested in the new property from the very begining. So every time you invest in a new property, it will gain a higher value.  Now keep in mind this is a tactic that you can use every where not just in Santa Maria, California, but you will have to investigate how your state treats investment properties.  However, it should be remembered that the investment you will take into consideration is that it should be of the same kind of properties.  Another thing to keep in considertion is that you cannot touch any of the funds from the sale of your previous property to avoid the any Capital Gains.  You will have to use a trust company in doing a 1031 exchange that will help you to facilitate the process as well as make sure you are doing it correctly usually your title company can help you facilitate that just make sure you let them know that you will doing a  1031 exchange. Doing a 1031 exchange will help you with getting more out of your property and making a strong foundation in your real estate investment.

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Why You Need To Get A Home Inspection

Finding the right Inspector, Is one way to achieve the rule of real state and that is to get your money’s worth , and to insure that you are getting a good investment.  Typically most agents will recommend a client when buying one of the homes in Santa Maria that they get home inspection.  The reality is you are not buying T.V. or even a used car.  When you end up having serious problems wiht a home it can cost you more than what you bought the home for.  So a home inspection can also buy you peace of mind. This will grant you to locate a property that is worth the cost.  There can be larger problems that you may encounter before you move in to your house, like electricity, water supply, plumbing, furnace and heat supplies, and generally build your home. And to make sure that everything is built up to standard. All of these are the issues can be something that an Inspector can help find.


There are numerous who have saved thousands of dollars by having an Inspector to look at what is in the home and how it needs to be changed.  Reality is that just because the Inspector says there is something wrong in your house,does not mean you have to cancel either.   Many of the Santa Maria homes for sale in Santa Maria, California are not perfect most homes are not.  But you may want to know for your own peace of mind what are the issues the home may have.  Many times you will find that the issues that the home has are really minor and nothign to worry or stress over.  But then you have the right to request repairs that will be an issue.  Just keep in mind we are talking about repairs that affect the integrity of the home not neccessarily anything cosmetic.  Being that in most markets you may be dealing with a foreclosure or short sale the bank will not look at any repairs that are cosemetic.  Only those that may be considered a lending condition for the loan.  Now if you and the seller can come to terms on the repairs needed you do have the right to ask for repairs or the money back that used for the deposit for the home. So you need to make sure that you choose the right Inspector, that you feel you and your agent can do a complete and competent job.  Sometimes the real state agent will have a given inspector that they like to work with. After all you can still provide your own Inspector by contract, This will help you to move into your home without any problems with a possible spare before you move in.

It is important to hire an inspector as a part of the process of buying a house. It will help to clarify and define the standard of the home and can lesser the burdens in the future.  First, before you sign any of your loan documents, good luck out there and remember that with rates at all time 50 year lows and values being what they are you can still find great deals out there.

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Advice For First Time Home Buyers

Here is some advice if you happen to be qualifying for a first time home buyer loan trying to buy a  Santa Maria home.  It’s a great time to buy a home whether it be in the Santa Maria real estate market or any where ever you happen to be looking.  But usually a big concern most first time home buyers have is trying to not make a mistake in buying a home since a home is such a big step.  For most people buying a home is going to be the biggest investment or purchase that they will ever make.  So yes this is a big step for mostly any one.  First and foremost is that the last few years have taught us a few things, one is to live within our means.  Two that becoming a home owner, and owing our own house is not a right but a privilege.  So hopefully this will be of some help to those looking buy a home.

So lets start off with what can you afford forget about trying to keep up with your friends that is how most of us end up in situations we wish we never were in.  We bought the car that we can’t afford and have more things in the garage than we know what to do with.  So forget about having a house nicer or bigger than someone you know, or just as a big, you are shopping for yourself and the last thing you want to be is basically poor and own a home.  What I mean by that is that your paychecks are being consumed every month just to pay the mortgage forget about having a life or taking the wife and kids out.  Because at the end of the month there’s just not enough left over for anything to buy or do.  You should keep your new mortgage payment less than 40% of what your gross income is.  You may qualify for more and that’s great but here is the thing to think about.  What if you had a reduction in your pay, what if your wife had a reduction in her pay, what if you had unexpected finances pop up?  You need to have that financial cushion for the what ifs in life.  So lets say that your gross income is $3,000.00 a month that is before deductions then your new mortgage payment should not be more than $1,200.00 with taxes and insurance the whole nine yards.  For those trying to figure out how do I figure out my mortgage payments are there are ton of calculators out there just do a search for mortgage calculators.

Now the thing I hear more than anything is “but homes in that price range are not on the side of town that I want”.  “Or homes in that price range are older” or etc etc etc.  Of course you want a home that you can be happy with in and live in that will be good for you and your family.  But do keep your expectations reasonable you are a first time home buyer this is your first home and it does not mean that it will be your last.  If you cannot compromise then maybe you are not ready to buy a home at this time.

When you do finally get a home and ready to make that big step forget about the whole buy now and sell next year mentality and make some quick cash.  It’s not going to happen in this market or any time soon.  If you are looking on how to get rich quick on real estate stop reading this now and order those “Carlton Sheets” programs.  Buying a home should be an investment that you hold on to for at least a few years.


Last but not least is a real estate agent, of course you can buy a home without a real estate agent you can also represent yourself in court without an attorney.  The funny thing is even attorney’s get an attorney to represent themselves when going to court.  The reality is like any industry there are good apples and there are bad apples.  So try to select a real estate agent that does real estate not 5 different things and real estate is just a hobby for them.  Also I know it’s very tempting to just call the guy with his name on the sign on the house you just saw.  There are two sides to the real estate transaction you have the selling and the buying side.

The listing agent (the guy with his name on the sign) is going to represent the seller, selling his home and try to get the best deal for him when selling his home.  You as a first time home buyer want someone to represent you and try to get the best terms for you.  I am not going to say that a real estate agent cannot represent both sides fairly but I think you can see that there is some sort of conflict of interest here.  So do yourself a favor and find yourself an agent where his job is to work just for you not you and the home owner.  Then when you see a home that you like call your agent and get the details make them do the work for you, so find someone to represent you that does real estate as a career not a hobby.  And before you know it you will be sitting in your new home.


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Real People Trying To Get A Loan Modification

Homeowners Say Banks Not Following Rules for Loan Modifications

by Paul Kiel ProPublica, Jan. 14, 2010, 11 a.m.

Nathan Reynolds is something of an expert on the government’s foreclosure prevention program. A mortgage broker who’s worked in the Chicago area since 1998, he’s seen both his business and his home’s value plummet in the past few years. After receiving his own trial loan modification from JPMorgan Chase, he’s helped others apply for modifications through the program on his own time.

Have you worked for a servicer in a loan modification call center? We want to hear from you.

Are you a homeowner who’s struggling to pay your mortgage? Are you seeking a loan modification through the government program? We want to hear from you.

But in November, after Reynolds had made trial loan payments for seven months, Chase told him his mortgage would not be permanently modified. Chase had determined that his personal financial troubles were only temporary because Reynolds had expressed optimism that the administratio’s policies might rescue the housing market, boosting his income.

That’s not a legitimate reason for a loan servicer to deny someone’s modification, according to the Treasury Department’s guidelines for the program. And Reynolds experience along with the cases of two other homeowners examined by ProPublica, shows how servicers have created unnecessary hurdles that, in some instances, violate the loan program’s rules.

Housing advocates say they frequently see homeowners rejected or kept in a trial modification for questionable reasons. “There’s a real resistance on the servicers part to making permanent modifications,” said Diane Thompson of the National Consumer Law Center.

The administration set a goal of helping up to 4 million homeowners through the $75 billion mortgage modification program as a way to blunt the boom in foreclosures. Treasury has produced a growing number of mandatory guidelines for banks and other loan servicers to review applications and perform the modifications. In exchange for tailoring loan payments to 31 percent of the homeowner’s monthly income, both the servicer and the owner of the loan receive incentive payments.

Servicers representing 85 percent of the housing market have signed up to participate. Applicants must first go through a trial period before their mortgage payments can be permanently reduced. But servicers have been slow to convert hundreds of thousands of trials into permanent modifications as of November, only about 31,000 had been made permanent. That spurred Treasury to publicly criticize the servicers performance and to put out new guidelines in recent months to speed up the process.

Treasury said recently (PDF) that the effort has resulted in a “significant increase” in offers of permanent modifications, but numbers demonstrating how significant won2019t be available until February.

ProPublica has reported since last June on homeowners frustrations in receiving a prompt answer from servicers, particularly the program’s largest servicers  Bank of America, JPMorgan Chase, Wells Fargo and CitiMortgage. In response to widespread complaints, those servicers have dramatically increased staffing and touted other improvements, such as new document management systems.

But when homeowners do get an answer, the reasons don’t always jibe with how the program is supposed to work. Housing advocates say this is a direct result of a lack of effective oversight of servicers in the program, something ProPublica has focused on before.

2018An Excuse to Deny Someone2019

Reynolds was a prime candidate for a loan adjustment and was among the earliest homeowners to receive a trial modification.

His mortgage brokerage business had followed the market downward, and as a result, he’d fallen three months behind on his interest-only mortgage. Area real estate cratered. His own home, bought in 2001 for just over $400,000, had rocketed up to about $1.2 million in value in 2006, and then down again to about $350,000. With a refinancing in 2005 and a home equity line of credit with Countrywide, his mortgage debt exceeded his home2019s value by more than 70 percent.

Soon after the loan program was announced last February, Reynolds applied. He received an application in late April and was accepted, making his first payment of about $2,400 (down from $3,300) in May. He made six more payments. Like many borrowers in the program, he says he was asked over and over to send the same documents and later, updated versions of those documents. Finally, in late November, he received an answer: He was denied a permanent loan modification.

The reason? A Chase employee explained to Reynolds that they’d determined his financial difficulties weren’t permanent. In his application, he’d written that he believed that the government’s rescue efforts would “save the U.S. housing market” and that his business “will once again be profitable.” The Chase employee told him that statement indicated his hardship was only temporary.

“That’s just nonsense,” said Thompson of the consumer center. “To me, that sounds like an excuse to deny someone.”

Chase spokeswoman Christine Holevas told ProPublica that Reynolds had been denied “because the skill and ability is still there to earn the income.” Since he’d “stated in his letter that business would be picking up,” it was “not considered a permanent hardship,” Holevas said.

Such a determination contradicts Treasury’s guidance to servicers for the program. A FAQ (PDF) issued to servicers says the program does not “distinguish between short-term and long-term hardships for eligibility purposes.”

When ProPublica asked about this guideline, Holevas did not directly respond. She did offer another reason for denying Reynolds: Chases review of financial information showed his income had not decreased.

Reynolds, who has a wife and two small children, says no Chase employee had made such a claim to him and that the documents he provided show that his mortgage business dropped more than 50 percent in 2009. He submitted a new hardship statement in December, in which he tried to make clear that his troubles are real and lasting. Holevas said those documents would be reviewed.

Now, Reynolds says his finances are at the breaking point and bankruptcy appears unavoidable if Chase denies him again. “I did everything that was asked of me, but Chase has me backed into a corner that I cannot get out of.”

The Nine-Month Trial

Six months into a trial modification, Gary Fitz of California still doesn2019t know whether or when his mortgage will be permanently modified, and he’s been told he2019ll have to wait for a few more months.

Under the program’s design, the trial period was supposed to last three months, giving time for the servicers to collect and evaluate the homeowner’s financial information. At the end of the trial, if the homeowner fit the program’s criteria and had made all three modified payments, the servicer was supposed to promptly make the modification permanent.

Instead, trial modifications routinely last more than six months, homeowners and housing advocates say.

There are a number of adverse consequences of a trial period’s dragging on, said the consumer law center2019s Thompson. Because a homeowner is not making a full payment, the balance of the mortgage grows during the trial period. The servicer reports the shortfall to credit reporting agencies, so the homeowner’s credit score can drop. And most important, says Thompson, the homeowner isn’t saving money in case the modification fails and the home is foreclosed. “Keeping someone in a trial modification really does not do them a favor,” she said.

Fitz2019s case shows why some homeowners have remained in limbo so long.

He sought a loan modification in the spring of 2009 because his wife’s salary had been cut. Like millions of others, he applied soon after the administration announced the program last February. He was accepted for a trial modification and made his first payment in July.

Fitz was prepared for an uphill struggle. A Wells Fargo customer service representative told him early in the application process that he should make seven copies of his financial information because Wells Fargo would likely lose it more than once. He says he’s sent the same paperwork in five times.

When the trial stage lasts so long, servicers commonly ask homeowners for updated financial information months into the trial period. Fitz, for example, submitted his paperwork for the first time last spring. But when Wells Fargo requested an updated package in December, it showed that he’d received a pay raise last June of about $80 per month.

Because of that, Wells Fargo started him over on a new trial period even though his trial payments climbed just $27, from $1,733 to $1,760. His first payment on the new trial period is due Feb. 1, meaning that by the time he completes it, he will have been making trial payments for nine months.

Wells Fargo spokesman Kevin Waetke said the company does not comment on individual borrower’s cases. He did say, however, that “the federal guidelines require a final review of updated financial documents before moving any Home Affordable Modification from trial status to complete.”

That’s not true. A Treasury guidance (PDF) to servicers issued in October, meant to streamline the review process, says there is “no requirement” to “refresh” the homeowner’s documentation as long as it was up-to-date when it was originally received.

Wells Fargo also appears to have begun Fitz’s second trial period contrary to Treasury guidelines. A Treasury guidance (PDF) last April said that a servicer should not begin a new trial period if a homeowner has only a minor income change (defined as exceeding the “initial income information by 25 percent or less”). Guidelines issued later (PDF) are even more restrictive about starting a new trial period. The reason is clear: The purpose of the trial period for the homeowner is to demonstrate the ability to pay, and such a small change in income is unlikely to affect that.

Asked to respond, Waetke said that “given the complexity of the program, the volume of calls we receive and the number of modifications currently in process, there is the potential for a mistake to be made.” He added that Wells Fargo would continue to review the case.

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Buying Time

Sometimes there seems to be no reason at all for a trial period to drag on.

Cynthia Mason of Texas, another homeowner with a Wells Fargo mortgage, also recently restarted her trial period after several months.

Last spring, she sought a loan modification because medical and other expenses had made it impossible for her to afford her mortgage payment on a fixed alimony income. She’d planned to supplement that income with a job, but has been unable to find anything. Like Fitz, she began the program in July.

In October, good news came with a phone call: She’d been accepted for a permanent modification. She waited for the final paperwork to arrive, but it never did. Instead, while speaking to a Wells Fargo employee about an unrelated issue six weeks later, she found out that she’d in fact been denied. When Mason inquired why, she says she was told some documentation was missing, but the employee could not tell her what it was. She also learned she owed late fees because she’d paid the modified payment, not the original, full payment, in November and December.

When she complained about the late fees (which were eventually canceled), she was passed to a different employee, who told her she was being put back into a trial period. She didn’t understand why. Another representative finally told her that she’d been denied because of a negative “Net Present Value” test. The test is the calculation at the center of the Treasury Department’s program: It determines whether the loans owner (sometimes the lender, sometimes a mortgage-backed security’s investors) is likely to make more money modifying the loan or not. A negative result means the servicer has no obligation under the program to modify the loan and is a common reason for denial.

But in Mason’s case, a Wells Fargo employee told her she’d nevertheless been put back into the trial period in order to “buy time.”

Wells Fargo spokesman Waetke declined to speak about Masons case but did say that the bank sometimes extends the trial period “to allow customers time to get the documents so we can complete the review.” Mason says she doesn’t know of any documents that might be missing, and she’s not optimistic about receiving a permanent modification. By extending the trial, Mason told ProPublica, Wells Fargo is “just prolonging the inevitable” denial.

Have you applied for a loan modification under the Obama administration’s Making Home Affordable program? Are you thinking about it? If so, we at ProPublica want to hear your story.

Central Coast Homes For Sale

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If you have any questions about buying a Santa Maria home for sale in the Santa Maria Real Estate market or any properties on the Central Coastand need to get a loan in Santa Maria, CA or any where in the state of so I California not just on the Central Coast, so I can do California home loans, and first time home buyer loans, as well as refinance home loans and just plain simple mortgage loans.  So please contact me by sending me an email at: GenePerez@GMSLoans.net

I do also service all the nearby communities and other markets such as the Santa Ynez real estate market, Nipomo Real estate market, Arroyo Grande real estate market, Grover Beach Real Estate Market, and all other surrounding areas regarding the homes on the Central Coast.

my goal is to provide you with resources you need. I can also help in getting the financing for your home.  If you have any suggestions or questions in how I can provide more or better

information please let me know.  I have been helping my clients for the last 15 years  on the Central Coast, Gene Perez – 805-448-7101 , DRE 01321588


Important Disclaimer: Questions and answers provided on this website and by Gene Perez is to be considered general information, and is not intended to substitute for informed professional financial, tax, legal, investment, accounting, or other professional advice.

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