Realtors for Ventura | Oxnard | Camarillo

Should principal balances on mortgages be reduced for homeowners who can’t (or won’t) make their payments?

That’s a big question facing the 5 largest servicers (read BofA, Wells Fargo, Chase, Citi and Ally Financial) on Wednesday. As part of the effort to clean up the robo-signing mess in states that have judicial foreclosures, the attorneys general of the 50 states plus the fed issued a 27 page “Settlement Terms” document that is intended to provide more safeguards of procedural rights for the foreclosure process.

But a part of this document (see paragraph VI – Monetary Relief) has a single paragraph that states “a substantial portion of monetary relief shall be dedicated by Servicer to support an enhanced program of sustainable loan modifications including principal reductions.”

This concept is causing a raging philosophical debate. Is it fair or right for a homeowner to have his debt reduced while his underwater neighbor is still making payments on his negative equity? Let’s see what Wednesday brings…

Foreclosure activity for January was showing a downward trend. Check out the continuing declining trend of  foreclosures for February on this 12 month graph.

The quarterly trends will be updated after the end of first quarter ending in March.

The California Association of Realtors published a full page “open letter” in 7 major California newspapers today (including the LA Times) for the purpose of raising awareness of multiple issues facing the foreclosure crisis and efforts to mitigate that crisis – specifically focusing on short sales and their role in today’s foreclosure crisis.

Efforts to do loan modifications under the federal HAMP program have failed to stem the crisis, forcing homeowners to attempt short sales. However, lack of standardized procedures, incredible bureaucracy hurdles within the large banks, loan servicers unable to handle the work loads and a host of other issues have made short sales a nightmare for homeowners, buyers and agents alike. The open letter stated that “only three out of five transactions closed – even when there was an interested and qualified buyer”. Now you know why Realtors hate short sales!

A solution to this mess is the little known HAFA (Home Affordable Foreclosure Alternatives) short sale program instituted last summer by the US Treasury Department. HAFA is a pre-approved short sale process that was designed to eliminate many of the traditional issues of the short sale process plus provide a $3,000 relocation allowance at close of escrow for the homeowner among other things.

In December, the California Association of Realtors sent a letter to the Treasury Department, Fannie Mae, Freddie Mac and the Federal Housing Finance Agency encouraging these agencies to implement changes to the HAFA program to make it a more workable solution for short sales.

Today’s open letter was designed to make these regulators, elected officials and other stakeholders aware that all of us “with a stake in California’s economic future (must) resolve this issue …Our families and our communities can’t wait any longer”.

There is no doubt prices have been slowly softening over the past several months, much like a slow leak in a tire. Even though, historically, interest rates are super low and price points make it “easier” to buy a home than in years past, buyers are in the driver’s seat as short sales and foreclosures continue to dominate the market.

Buyers are more fussy. Even in entry level homes ($400k range), they want granite countertops, current colors (not “white”), newer appliances (not “avocado green”), and for heavens sake – no “cottage cheese” ceilings! In the past, buyers were willing to accept perceived shortcomings, but with both husband and wife working full time jobs, they want things to be move in ready. Homes that don’t meet that criteria have to be discounted price point wise.

So take a look at these trend charts. Note that we won’t have the updated quarterly charts until the end of this month (first quarter, 2011).

Sold prices – Single family homes in Ventura, Oxnard, Camarillo:

• 12 month graph

Sold prices – Condos in Ventura, Oxnard, Camarillo:

• 12 month graph
  

Numbers sold – Single family homes in Ventura, Oxnard, Camarillo:

• 12 month graph
  

I can’t believe it’s been almost a year since I’ve updated progress on the Tiger Moth! Too much work and not enough play time at the airport…

But during the past 6 plus months I’ve managed to finish the lower right wing which has the aileron. Some biplanes have ailerons on all 4 wings, but I’ve chosen to just have them on the lower wings.

To see how this wing progressed, especially how the aileron was built, I’ve posted some more pictures.

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