BRIEF EXPLANATION OF COMMON FORECLOSURE TERMS
August 24, 2010
Ever get confused over foreclosure terms from your lender? Enclosed is a list that I hope will be helpful to those trying to understand the definitions associated with foreclosure terms?
If you are either in the process of buying or selling a foreclosure property, understanding the basic terms will help you ask appropriate questions of your REALTOR®, the escrow officer, the lender or other parties involved in this real estate transaction. This can expedite the time frame of the process for everyone involved including you.
Below are the most common terms used in connection with the foreclosure process:
- A Deed of Trust: A Deed of Trust is the security for your loan. This document that is recorded in the public records. A deed of trust contains three parties:
- The Trustor: which is the borrower
- The Trustee: which is an entity that holds “bare or legal” title
- The Beneficiary: which is the lender.
- The deed of trust is an instrument that identifies the following:
- Original loan amount: Legal description of the property being used as security for the mortgage
- The parties involved
- Inception and maturity date of the loan
- Provisions of the mortgage and requirements
- Late fees
- Legal procedures
- Acceleration and alienation clauses
- Riders, if any, regarding such clauses as prepayment penalties or terms of an adjustable rate mortgage.
- Notice of Default: Lenders file in the public records where the property is located a public notice called the Notice of Default. It states that the borrower is in default, behind in the mortgage payments, and if the payments are not paid up, the lender will seize the home. In California, lenders typically do not file a Notice of Default until the borrower is at least a minimum 60 days behind in making payments. Lenders must then wait 90 days. During that 90-day period, the borrower has the right to make up the back payments and reinstate the loan. After 90 days, the lender is required to publish a notice in the newspaper for 20 days and then may sell the property to the highest acceptable bidder on the courthouse steps. If no acceptable bid is received, the trustee then conveys the property to the lender. These figures are at the earliest dates.
- Deed-in-Lieu of Foreclosure: A potential option taken by a mortgagor (a borrower) to avoid foreclosure under which the mortgagor deeds the collateral property (the home) back to the mortgagee (the lender) in exchange for the release of all obligations under the mortgage. More of these deeds are being processed in 2009 and 2010.
- Foreclosure: Legal proceeding by which a borrower’s rights to a mortgaged property may be extinguished if the borrower fails to live up to the obligations agreed to in the loan contract. The lender may then declare the entire debt due and owing and may seek to satisfy it by foreclosing. Foreclosure is commonly by a court-decreed sale of the property to the highest bidder, who is often the lender.
As we all know, foreclosures continue to be in the news and continue to dominate the market in 2010 and will continue in 2011. This means that REALTORS, struggling homeowners, and potential buyers need to have information about the process and terms of foreclosure in order to make important decisions about the sale or purchase of a property or maybe even trying to stop a foreclosure before in the early stages.
There are many more thoughts you may have when you receive information by phone or mail about foreclosures so contact me to discuss and I will be happy to help you in any way I can.
Danny Dominguez
Windermere Real Estate
HELPFUL DEFINITIONS OF COMMON FORECLOSURE TERMS
July 9, 2010
Ever confused when hearing or reading about foreclosure terms then continue reading and hopefully this will help you!
If you are either in the process of buying or selling a foreclosure property, understanding the basic terms will help you ask appropriate questions of your REALTOR, the escrow officer, the lender or other parties involved in this real estate transaction. This can expedite the timeframe of the process for everyone involved including you.
Below are some of the most common terms used in connection with the foreclosure process:
A Deed of Trust: A Deed of Trust is the security for your loan. It is the formal document that is recorded in the public records.
A deed of trust contains three parties:
The Trustor, which is the borrower
The Trustee, which is an entity that holds “bare or legal” title
The Beneficiary, which is the lender
The deed of trust is an instrument that identifies the following:
Original loan amount
Legal description of the property being used as security for the mortgage
The parties involved
Inception and maturity date of the loan
Provisions of the mortgage and requirements
Legal procedures
Late fees
Acceleration and alienation clauses
Riders, if any, regarding such clauses as prepayment penalties or terms of an adjustable rate mortgage
Notice of Default:Lenders file in the public records where the property is located a public notice called the Notice of Default. It states that the borrower is in default, behind in the mortgage payments, and if the payments are not paid up, the lender will seize the home. In California, lenders typically do not file a Notice of Default until the borrower is at least 60 days behind in making payments. Lenders must then wait 90 days. During that 90-day period, the borrower has the right to make up the back payments and reinstate the loan. After 90 days, the lender is required to publish a notice in the newspaper for 20 days and then may sell the property to the highest acceptable bidder on the courthouse steps. If no acceptable bid is received, the trustee then conveys the property to the lender. Most of these dates are at the earliest allowable time frames.
Deed-in-Lieu of Foreclosure :A potential option taken by a mortgagor (a borrower) to avoid foreclosure under which the mortgagor deeds the collateral property (the home) back to the mortgagee (the lender) in exchange for the release of all obligations under the mortgage. Many lenders are moving in this direction in 2010.
Foreclosure: Legal proceeding by which a borrower’s rights to a mortgaged property may be extinguished if the borrower fails to live up to the obligations agreed to in the loan contract. The lender may then declare the entire debt due and owing and may seek to satisfy it by foreclosing. Foreclosure is commonly by a court-decreed sale of the property to the highest bidder, who is often the lender.
As we all know, foreclosures continue to be in the news and continue to dominate the market in 2010 and will continue in 2011. This means that REALTORS, struggling homeowners, and potential buyers need to have information about the process and terms of foreclosure in order to make important decisions about the sale or purchase of a property.
So if you receive any letters, phone calls or read any information about foreclosures please do not hesitate to contact me to discuss your options when buying or selling. As you can see the sooner you make a decision about buying or selling a foreclosure the better off you can be in this struggling market.
Danny Dominguez
Windermere Real Estate
DIFFERNCES BETWEEN FORECLOSURE AND SHORT SALES
July 8, 2010
Longtime Realtors Angie and Danny Dominguez offer the following tips to homeowners considering a Foreclosure or Short Sale
Many homeowners are not aware that a Short Sale has less serious consequences for the homeowner than a foreclosure.
For example, a homeowner who loses a home to Foreclosure is ineligible for a Fannie Mae backed mortgage for a period of 5 years as opposed to a Short Sale which makes them ineligible for only 2 years. Investors are ineligible for 7 years compared to 2 years.
In addition, a Foreclosure will typically lower your credit score anywhere from 250 to over 300 points and will affect your credit score for over 3 years. A Short Sale will typically lower your credit score as little as 50 points if all other payments are being made and will affect the homeowner for as little as 12 to 18 months. (this is a big difference)
Foreclosure remain as a public record on a person’s credit history for 10 years or more. A Short Sale is not reported on a credit history. The loan is typically reported “paid in full, settled.” Owners should always check their credit report and creditor’s.
Homeowners (and many Realtors) do not understand Short Sales and are mainly interested in the consequences to their credit and their life.
We advise them to do a Short Sale … IF THEY QUALIFY. It’s not a “get out of my mortgage free card,” though. A homeowner must be able to demonstrate a verifiable hardship such as a job loss, death in the family, mortgage rate adjusting to the point they cannot afford it, illness etc. But, there is no point in listing a home as a Short Sale if the bank will not agree to it. The homeowner CANNOT have assets that could be used to pay the mortgage.
Most problems with Short Sales stem from Realtors who are not familiar with them. For example, a smart Realtor will only present ONE offer to the bank – the highest and the best. You must present all the rest of the offers to the Seller but you present only ONE offer to the bank. You also need to present a COMPLETE package to the bank.
For additional information, you can contact Angie or Danny Dominguez at Windermere Real Estate to further discuss your options when considering selling.
Warm regards,
Angie and Danny Dominguez
909 838-9037 direct
SHOULD I STAGE MY HOME OR NOT?
July 8, 2010
10 Great reasons why to stage your home...
1. Historically homes tend to sell in fewer days on the market when staged by professional.
The costs for Staging can vary from only a few hundred dollars for a simple redecorating plan that rearranges your own furnishings to a cost per square foot charge when staging the home with leased furniture and accessories. You can expect the square foot charges to be approximately $1.50 to $3.00 per foot of area.
Staging may also offer some tax advantages depending on your individual circumstances. The costs may be a tax deduction so check with your financial advisor to see if your property qualifies.
For more information on the benefits of staging you can contact me, Danny Dominguez at 909 838-9037 or at www.bigbeardreaming.com
Best regards,
Danny Dominguez
Windermere Real Estate
CUTTING-EDGE REAL ESTATE MARKETING TOOLS
June 20, 2010
The owners of Windermere Coachella Valley Real Estate, Bob Deville and Bob Bennion, discussed the importance of using “Cutting-Edge Real Estate Marketing Tools” at their recent all-agent meeting in Rancho Mirage, California.
SPRING EDITION of WINDERMERE HOMES & LIFESTYLES MAGAZINE NOW AVAILABLE
June 20, 2010
The new Spring Editon of Windermere HOMES & Lifestyles magazine, featuring hundreds of homes for sale in all price ranges throughout the Coachella Valley, is now online. Click here to view. The magazine is also available at all Windermere office locations throughout the Coachella Valley and Southern California.
View the magazine online and flip through the pages to find the home of your dreams. Or request that a copy be mailed to you.
You can also find a copy at various shops, Palm Springs Airport, restaurants and car washes throughout the Coachella Valley. The print version of the magazine will be on stands the second week in April.
Warm regards,
Danny Dominguez
WINDERMER”S HOMES & LIFESTYLES MAGAZINE-SUMMER EDITION
June 11, 2010
Check out the Spring Editon of Windermere HOMES & Lifestyles magazine, featuring hundreds of homes for sale in all price ranges throughout the Coachella Valley, is now online. Click here to view.
View the magazine online and flip through the pages to find the home of your dreams. Or request that a copy be mailed to you.
You can also find a copy at various shops, restaurants and car washes throughout the Coachella Valley. The print version of the magazine is currently on stands at the Palm Springs airport as well.
Warm regards,
Danny Dominguez
IS WINDERMERE’S PREMIER PROPERTIES PROGRAM FOR YOU…
June 10, 2010
Windermere Real Estate sales statistics for first Quarter 2010 were just released by the Desert Area MLS. Windermere leads all other real estate companies in the desert in home sales over $1,000,000.
“Our high end market is active, and magnificent homes and estates are selling well,” says Windermere Real Estate Coachella Valley owner Bob Deville. “Every transaction is a challenge for buyer, sellers and the real estate agent, in our current market climate, however with the success of our Windermere Premier Properties Program, deals are closing. Windermere has always had a very successful Premier Properties Program. This unique program is represented and managed by Premier Directors – agents specializing in high-end and unique properties,” adds Deville. “With special signage, our award-winning Premier Properties web site, specialized and specific marketing materials and our targeted networking, both within the company and with outside real estate companies and agents, Windermere has been extremely successful in the listing and selling of home in this segment.”
Windermere recently installed its 2010 Executive Premier Directors and 2010 Premier Directors. This special group of Premier Directors are responsible for approving Premier Properties to the program as well as mentoring non-directors by physically previewing prospective Premier Properties. Acceptance and qualification into the program requires the written approval from two Premier Directors. The Directors also provide marketing and advertising advice for agents with a qualifying Premier Property.
“We have a very impressive and powerful 2010 slate of Premier Directors,” says Deville. “As a direct result of their hands-on involvement and team work, our high-end buyer and sellers will continue to benefit from this program, as our numbers clearly indicate, and as the high end market activity increases,” he says.
To gather how this program can benefit your listing contact Danny Dominguez for further details.
Warm regards,
Danny Dominguez
Tags: Coachella Valley, Real Estate, Windermere
Posted in Agents, Premier Properties | 1 Comment
ANGIE AND DANNY DOMINGUEZ JOIN WINDERMERE REAL ESTATE
June 10, 2010
Windermere Real Estate is proud to announce the addition of these new real estate professionals to its Coachella Valley offices in the month of May.
Please welcome Victoria Calender, Rancho Mirage; Dan Conover, Palm Desert Cook and Hovley; Angie Dominguez, La Quinta; Daniel Dominguez, La Quinta; Kathy Dool, La Quinta; Gloria Gutierrez, Cathedral City; Penny Poynter, Indian Wells Main; Cyra Valenzuela Cathedral City; Juan-Carlos Vizaga, Cathedral City and Susan Zazzetti, Palm Springs South.
“As we continue to grow, opening new offices in Cathedral City and Indio, we offer full coverage for Buyers and Sellers in the Coachella Valley, as well as the surrounding areas,” says Windermere owner Bob Deville.
Posted in Agents, Bob Deville and Bob Bennion | 1
NATIONAL HOME VALUES ARE ON THE RISE!!!
April 22, 2010
As reported by the National Association of Realtor’s today, home values are on the rise. Nationwide home values rose 5.2% for March 2010. This was the largest increase in home values across America since July 2009. This is more evidence the national economy is also on the mend and the consumer is confidant about the economy.
In Big Bear news this is the final week for skiing and snowboarding. Big Bear Mountain Resorts announced on April 21st that Snow Summit will close for the season on April 28th. Sister resort Bear Mountain has already been closed since April 14th. During this time Snow Summit will honor all season passes for both resorts.
Also Highway 330 will remain closed until mid May due to storm drainage repair. All other roads to the Big Bear area are open with no restrictions. As always please contact us for current conditions.
Warm regards,
Daniel Dominguez
