Bank of America to pay homeowners more for short sales

Bank of America launched a new short sale program that could pay distressed homeowners between $2,500 and $30,000 in relocation assistance.

Qualified homeowners who initiate a short sale without an offer could be eligible to receive $2,500 to $30,000 in relocation assistance and owe no more on their mortgage with the sale of their property.

The new program requires a borrower to work with the bank to obtain a preapproved sales price before submitting a purchase offer. To qualify for the program, a short sale offer must be submitted by the end of 2012 and close by Sept. 26, 2013.

“This program can help customers make a planned transition from ownership when home retention options have been exhausted or they have made a decision not to keep the home,” said Bob Hora, executive of home transition services for BofA.

Save the Mortgage Interest Deduction!

President Obama’s budget proposal last week attracted more than a few passionate voices from real estate who oppose elements that would limit itemized tax deductions, including the mortgage interest deduction that enables homeowners to deduct part of their mortgage interest from their overall tax bill.

In short, the budget would reduce the value of itemized deductions to 28% for married couples with incomes over $250,000 and individuals with income over $200,000. The current value of deductions could be as high as 33-35%, depending on the tax bracket the household is in. The reason it’s so vehemently opposed by real estate industry groups like the National Association of Realtors is that it’s a vital component to the housing recovery – and it feels like a penalty being put on responsible homeowners.

One of the perks of owning a home has been the ability to deduct a portion of the money paid in mortgage interest each year from an owner’s tax bill. This is part of the reason ownership makes more financial sense than renting for many families over the long-term.

Now feels like the worst possible timing for a change like this. Removing this benefit that is highly regarded by many would-be homeowners as a perk of owning versus renting likely would have a negative impact on the economic recovery.

Also, as NAR points out in a letter opposing the budget proposal, the nation’s homeowners already pay 80-90% of U.S. federal income taxes. Raising taxes on them now could seriously wear down demand, taking home values with it at a critical time for the overall health of the housing market.

Many might argue that the value of the change on the overall economic state of the nation far outweighs that of the individual homeowners who would be affected. But, the fact is that by eroding home values, the nation is affected in the end anyway. In addition, perception is a highly valuable (or dangerous) thing when it comes to real estate markets. Just the very perception that homeownership may have lost some of its luster in the often-cited tax benefits by new buyers has the potential to do damage.

And we can’t afford to lose any momentum in housing demand.

NAR is fighting against this proposed change, and so am I. Let’s save the mortgage interest tax deduction for the nation’s homeowners and incoming buyers. Now is not a good time for a change like this. Obama may not see it, but the deduction is vital to the stability of the nation’s housing markets.

Loan limits restored to their higher amounts!

The Senate voted yesterday and overwhelmingly passed the appropriations bill effectively reinstalling higher conforming loan limits for the FHA through the end of 2013.  In Orange and LA counties, it’s confirmed that $729,750 will be our new loan limit.

Despite uncertain economic times, most Americans still value home ownership.

By Gino Blefari

How’s the real estate market? It’s a question every one of us in this business is faced with every day. Homeowners, buyers and sellers seem to have honed a hyper-awareness for the state of the economy, how it impacts home values – or real estate prices in general – and how it impacts their personal finances. This is no surprise given the times we’re living in.

Just when things seem like they are looking up (sales of existing homes increased 7.7% to a rate of 5 million in August, up from 4.67 million in July), we get a reality check of how Americans are feeling about the state of housing. A survey released by Fannie Mae this week showed that for the most part, people are still very pessimistic about the current economy, home prices and household finances. How people view the economy is actually pretty important to our recovery – meaning, if they view things as really bad, they’re not going to buy or sell until they change their minds or circumstances force them to change.

The most interesting thing about Fannie Mae’s September survey is that the majority of respondents said they’d buy their next home rather than rent: 63% said they would buy their next home if they were going to move, up 1 percentage point since August. Only 32% said they’d rent their next home, which is down 2 percentage points since the previous month.

If Americans are so pessimistic, why would they commit to such a large financial obligation? The answer is simple: They view buying conditions as really good:

lowest mortgage interest rates anyone can remember
a firm belief that home prices will fall over the next year
a firm belief that rents will continue to rise.
We can also deduce from this that Americans still value homeownership – despite uncertain economic times. Owning still makes sense to most people over the long term. And perhaps Americans are even feeling like homeownership is the one certainty they can count on in the long term to provide some form of financial security if the rest of the economy gets its act together.

If all these people say they’d rather buy than rent their next home, then why aren’t we seeing soaring sales? As noted above, many are expecting more problems with the economy and financial situations to get worse. 19% of respondents in Fannie Mae’s survey said they expect their own financial situations to worsen over the next year. While that’s actually down a bit from August when it was 22%, it’s still a significant figure to think about. One-fifth of people on average are bracing for more bad news.

What can we do? We can stop and think about the true state of the real estate market and how heavily impacted it can be by something as intangible as the way people are feeling about the economy, cost of living, job security and personal finances. Just because home sales start trending up doesn’t mean we’re in the clear, and when we see them stumble doesn’t mean homeownership is any less valuable to Americans.

Rates are amazing now! 30 year fixed rates in the high 3% range and possibly dropping lower.

The Fed, ending a two-day policy meeting later Wednesday, is expected to announce a rebalancing of its bond portfolio weighted more heavily to longer-term securities, pushing already-low long-term interest rates even lower in a move dubbed Operation Twist.  On Wednesday, the Federal Reserve will conclude its latest policy meeting and may announce further measures aimed at lowering long-term borrowing costs. One option is called “Operation Twist:” the Fed would sell some of its short-term holdings and buy longer-term U.S. debt to push yields—which are already at historic lows—even lower.  Why? One clear aim of Fed policy, as Chairman Ben Bernanke wrote in an op-ed last year, is to bring about “lower mortgage rates [that] will make housing more affordable and allow more homeowners to refinance.”  The trouble is, the relationship between Treasury yields and mortgage rates isn’t perfect. And in recent weeks, the difference, or spread, between the 10-year Treasury yield and Freddie Mac’s average 30-year fixed-rate mortgage has widened considerably.

Carole Geronsin Main Panelist at The International Real Estate Summit

September 1, 2011 Anaheim, California – Over 2,200 real estate agents and mortgage professionals gathered for a three day sales training and marketing Summit, where Carole Geronsin was selected as an elite panelist member.

Carole’s expertise on the local market, negotiations, online marketing, customer service and fiscal knowledge were the reasons why she was asked  to contribute to the to the assembled group. Out of more than 65,000 real estate professionals, Carole was chosen to speak on this platform.

In these trying times, Carole is able to not only list and sell residential real estate at a very high volume, she is also able to effectively teach and mentor agents from across North America and Europe.

Carole shares her success and passion for real estate with her two partners, Genelle and George Geronsin. Together, this dynamic family team has dominated the North Orange County area in sales volume, consistently ranking as the #1 producers along with #1 ranked Prudential.

If you would like more information, please contact The Geronsins at 714-283-6649.

The Geronsins nominated to Inman News 100 Most Influential Real Estate Leaders in the USA

Inman News, the leading source of independent real estate news, information, advice, research, opinion and commentary for industry professionals and consumers has nominated The Geronsins as one of the top 100 most influential real estate leaders in the nation. Inman News states that the top 100 list recognizes those whose voices and actions have the power to change the industry.  Among them are individuals who embody strength, common sense, innovation, ingenuity, perseverance and progress.  They include the industry’s brain trust and dealmakers, and those outside the industry who impact the business of buying and selling homes. “Being nominated to this list is one of our career highlights,” states Carole.  “It shows that our dedication to the industry, our client care and our service to others matter.” With a combined 50 years in the real estate industry, The Geronsins have built their business practices around the best ways to assist their clients.  “We are always looking for new innovative ways to bring marketing assistance and exposure to our clients homes,” says Genelle.  “In a constant changing marketplace we need to adjust our thought process and practices to what is most effective for each clients home.” The Geronsins, who have been Prudential California Realty’s top selling agents in all of North Orange County for 19 out of the past 20 years have an unparalleled tract record of sales.  In 2010 alone they sold in excess of $80,000,000 and assisted over 90 families with their home selling and/or purchasing needs.  In an ever changing economy and real estate market consumers need experienced agents that provide the value of longevity, sales tract record and knowledge to best assist them to make good financial choices. “Currently homeowners are facing financial dilemmas,” states George.  “Each dilemma is different.  Do I take advantage of the interest rates and buy up?  Do I sell now or wait?  What is likely to happen in the next couple of years and how will that affect my home affordability?  I can’t afford my house payment anymore, what are my options?  We look at every client’s concerns individually and best assess their situation.  We spend as much time as needed to adequately council them with information on their options.”  Carole adds “we do not make decisions for our clients.  We simply provide them with resources, and the facts so that they can make the best decision for themselves.” The uniqueness that The Geronsins bring to the Inman List is the fact that they are a family team.  They bring two generations of thought processes and practices into the real estate market every day.  “We feel blessed to be able to work together”, says Genelle.  “We all have different strengths and we are able to combine them to help our clients in the best way possible.”

Longtime homeowners only regret? That they had not bought more homes.

Longtime homeowners provide valuable insight when asked if they regret buying their home.  Their only regret? That they had not bought more houses.  According to Gino Blefari, President & CEO of Intero Real Estate Services Inc., this response is the true measure of consumer confidence.

I often speak with homeowners who’ve lived in their homes for 20, 30, 40 or even over 50 years and I always like to ask, “If you had the chance to go back in time and buy more houses, would you?”

Their answer – always immediate and with ironclad certainty – YES!

This to me speaks volumes about the enduring value of homeownership. It’s much more meaningful than the consumer sentiment surveys you see each month gauging consumer confidence in housing. If the nation’s veteran homeowners can still stand in their front lawns and unequivocally say they made the right decision and whose only remorse is not buying more property, then I’d say that’s the kind of consumer confidence other assets may only dream about.

Don’t be fooled by the sad stories of foreclosures or the owners who decided to walk away because they were underwater. These stories have nothing to do with the value we put on homeownership. These stories are often about people who were unlucky or got caught up in mortgages they couldn’t really afford, who lost their jobs or who were unprepared for a financial emergency.

Even through all of this, homeownership is still valued in this country. Do you think that homeowners who walk from their mortgages will never buy a house again? You’re dead wrong.

Do you think that marriages and babies and promotions will no longer lead to home purchases? You’re dead wrong. How do I know this? Because our veteran homeowners can look back through boom-and-bust cycles and still say with certainty that they made the right decision. Because even as the nightly news blasts stories about “plummeting” home values, our agents’ phones are ringing from customers eager to buy.

Housing is certainly an important market to our economy. But homes time and again prove that they are not simply commodities to be traded on Wall Street like stocks and bonds. They are not items on financial spreadsheets. They are homes – places where we create memories, live our lives, build our futures.

When we finally emerge from this lull and look back on the recovery years for answers, I have a feeling that more of us will say, “I wish I would’ve bought more houses before that market took off.” We won’t regret all the years spent building wealth in our homes.

Fannie Mae HomePath Financing for REOs

The nation’s largest mortgage lender, Fannie Mae, has announced a new financing program called the HomePath program. This program is intended to help reduce Fannie Mae’s inventory of real estate owned property (REO) by attracting investors, owner occupants, and second home owners.

The HomePath financing program offers various down payment options depending on the type of buyer

• 3% for owner occupant
• 10% for second home buyer
• 15% for investors

To even further attract buyers, this financing program eliminates the appraisal requirement and mortgage insurance. Often times in real estate, delays of closing escrow come from third party elements such as getting an appraisal, termite inspection, and home inspection. It is not uncommon for there to be several appraisals on a property because of difference of opinions from one or more parties involved with the sale of the home.

Another interesting aspect of the HomePath financing program is the no-declining market restriction. The mortgage is only restricted by the amount of the down payment.

There is also the Home Path Renovation Mortgage which is similar to the FHA 203K which allows the buyer to borrow money to make repairs on the property for them to live in.

Fannie Mae has made these financing options available for potential buyers in an effort to reduce their REO inventory, but only time will tell if buyers will use this type of financing. To view a list of mortgage lenders honoring Homepath Financing, visit http://www.fanniemae.com/homepath/financing/lenders-list-2010-eng.html;jsessionid=LJIMML2UOTHDTJ2FECISFGI.

Prudential Real Estate Awarded Highest Seller Satisfaction by J.D. Power & Associates

Prudential Real Estate has done it again! J.D. Power and Associates has honored Prudential Real Estate with the 2010 Highest Seller Satisfaction Award.

Prudential Real Estate received the highest number of points with 760 out of 1000, and received particularly high marks in the marketing and agent categories. Prudential Real Estate came in second for the Home Buying survey, receiving 811.4/1000 points.

The 2010 Home Buyer/Seller study was conducted from March 2009 to April 2010 and was judged on four primary factors: agent, marketing, office, and services. Over 3,000 surveys were submitted from 2,817 respondents who bought or sold a home during the time period.

We couldn’t be more proud or honored to be affiliated with Prudential Real Estate, and congratulate our colleagues in sharing this achievement with them.