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Banks really do prefer foreclosure- Smart Spending – MSN Money
New study says loan servicers lack financial incentive to modify mortgages.
Can you believe it, the truth is finally coming out. What it basically comes down to is that the banks are hiring servicers to modify the loans. These servicers have no financial stake in trying as hard as they can to modify existing loans. Because of this they are not being held accountable to the thousands of homeowners that need their help.
I saw this first hand the past couple weeks when in submitting a offer to an agent who then had to submit to a “servicing” company that was in charge of listing bank-owned property.
We took them an offer for only $20,000 under asking price, all cash offer, close in two weeks. You know what we got? NADA, NOTHING, NO RESPONSE! That’s right banks, your servicers aren’t working for you they are working for themselves!
Instead the servicers contract was almost up so they decided to cancel the listing and quickly throw it up on an auction site for 5 days to see if it would sell that way. IT DIDN’T! The highest offer it got was $50,000 less then what we offered which didn’t clear their reserve minimum apparently.
Well here we are again, the unit is now back on the market with the same agent thank-goodness except now back at Countrywide. The agent contacted me today and I said “great submit the offer.” Her response back left me confused…
“Usually buyers go away mad. Thank you!”
It’s not her fault obviously I don’t know why people would take offense to the idiocy of banks. But here we are starting over again and hopefully that the “servicing” company is out of this we can actually get down to the business of selling houses!
If you are looking to Buy or Sell Real Estate in Grant County I would love to Help! Call or text me at 509-760-7733
Follow me on Twitter @ hjadkinson
Become a fan on Facebook http://preview.tinyurl.com/ykcrkm2
Follow my Moses Lake Real Estate Blog @ http://hjadkinson.wordpress.com/
Moses Lake Downtown Trick-or Treating
Moses Lake Halloween Activities
LakeTown Landing’s Annual Trick or Treat Event will be held on Saturday, October 31st from 5 to 7 pm on Third Avenue from Alder Street to Beech Street. This event is growing each year with participation from many merchants even spilling on to the side streets. MLBA will be sponsoring a movie in Sinkiuse Square…bring your chairs and blankets and enjoy It’s the Great Pumpkin, Charlie Brown.
This is always a fantastic way for you to get the trick-or-treating all done at the same time. They usually close off the street so you don’t have to worry about the traffic! Tons Tons of Fun! Don’t forget your Moses Lake Merchants could always use donations of candy as it is an expensive evening for struggling business owners.
The Moses Lake Haunted House is taking place from now until the 31st out at the Grant County Fairgrounds. The Haunted House is brought to you by Nightscare Productions. Kid Hours are between 7 pm –8pm, adult hours are from 8 pm – 10 pm Tuesday - Saturday. Remember to bring in 1 can of food and you will receive $1.00 off the admission. Admission is $5.00 for adults and $4.00 for children.
This is brought to you entirely by volunteers from Big Bend Community College.
Don’t forget Freedom Homes on Broadway Usually has an Open House night for trick-or-treating. More information coming regarding that…..
If you are looking to Buy or Sell Real Estate in Grant County I would love to Help! Call or text me at 509-760-7733
Follow me on Twitter @ hjadkinson
Become a fan on Facebook http://preview.tinyurl.com/ykcrkm2
Follow my Moses Lake Real Estate Blog @ http://hjadkinson.wordpress.com/
Moses Lake Real Estate
Total Active Residential Listings of of 10-16-09……………………….346
Currently in Pending & Pending Inspection……………………………..84 with an average listing price of $193,807 @ 114 days on market
In the last 6 months 159 residential properties have sold with an average sale price of $190,894 @ 142 days on the market.
Month of September & October
We got 77 new listings since the beginning of September
We have 56 homes in Pending & Pending Inspection since the beginning of September
Of those 36 homes have sold since the beginning of September.
We have in the past 2 weeks seen a small slow-down in the market with a marked absence of pendings and new listings. As we go into the Holiday season people are going to want to hold off wanting to do a big move before Thanksgiving and Christmas sneak up on us.
There will be a rush of closings at the end of November that we hope the Title companies can accommodate in time for the First-time Home Buyers Credit.
If you are looking to Buy or Sell Real Estate in Grant County I would love to Help!
Follow me on Twitter @ hjadkinson
Become a fan on Facebook http://preview.tinyurl.com/ykcrkm2
Follow my Moses Lake Real Estate Blog @ http://hjadkinson.wordpress.com/
Is the FDIC Killing Short Sales?
This just goes to show how mishandled this whole situation has been for everyone. Why would they want to approve short sales when they can make more money from a foreclosure!
Is The FDIC Killing Short Sales?
As some of you already know, I blogged recently about being interviewed recently by our local NBC news affiliate. To read the blog, click here. Basically, IndyMac Bank (now OneWest Bank), is holding one of my clients hostage, demanding a $75k promissory note, or they will proceed to foreclosure. For the life of me, I couldn’t figure out why they were doing this. The BPO came in at the contract price of $275k, with a net to IndyMac of $241k. What advantage could there possibly be for them to proceed to foreclosure?
Yesterday, I figured it out. You see, IndyMac was taken over by the FDIC and sold to OneWest Bank in March/2009. Guess who the investors are behind OneWest? George Soros, Michael Dell, Steve Mnuchin (former Goldman Sachs executive), and John Paulson (hedge-fund billionaire).
Now, listen to the deal they got from the FDIC….
Basically, they purchased all current residential mortgages at 70% of par value (70% of the outstanding loan amounts). They purchased all current HELOCS at 58% of Par Value!!!
Next, in order to “sweeten the pot”, the FDIC stepped in and guaranteed the following: For any residential mortgages where OneWest experiences a loss, the FDIC will step in and cover anywhere from 80%-95% of the loss. The loss is calculated using the ORIGINAL LOAN BALANCE, not the amount that OneWest paid for the loan. Let’s use my clients situation as an example:
Loan Amount is $478,000, plus 6 months of missed payments, for a grand total of $485,200
OneWest pays $334,600 for the loan
We have an all cash offer of $241,000, net to OneWest.
So, let’s do the math, shall we? The net loss, according to the FDIC formula is the ORIGINAL LOAN AMOUNT minus the amount of the offer. In this case, $485,200-$241,000, or $244,200. Next, the FDIC, according to their Loss Share Agreement, writes a check to OneWest for 80% of the so-called “net loss”. So, in this case, OneWest gets a check from Uncle Sam for $195,360 (.80 X $244,200).
Add the $195,360 to the sales price of $241,000, and you get a grand total of $436,360. Remember, OneWest paid $334,600 for the loan. So, OneWest puts $101,760 in their pocket, thanks to the FDIC. Folks, that is over $100k of our hard-earned tax dollars!
So, you ask…Why does this program hurt short sales? Because, our brilliant government offers this SAME PROGRAM FOR FORECLOSURES! The only difference is, the government picks up 80% of the tab on all of the extra costs associated with a foreclosure (BPO’s, upkeep, utilities/maintenance, legal fees, etc.)
So, If I’m OneWest, why would I want to waste my time negotiating through a Short Sale, when I can make the same amount of money (if not more) by just letting it go to foreclosure? And we wonder why nobody can get a Loan Modification? Why would OneWest approve a loan modification for this guy, when they can foreclose and make over $100k? And, to add injury to insult, they have held this loan for 6 months! Not a bad ROI, huh?
What infuriates me the most is that in my particular case mentioned above, they have the guts to hold my client hostage for a $75k promissory note, after they are already making more than $100k on the sale!!! This is his primary residence, 1st Position loan, and OneWest has NO RECOURSE! Imagine if they could make $100k, then get a deficiency judgement! Talk about making some big bucks!
Can you say “GREED”?
The scary thing is that over 50 banks have Shared Loss Agreements in place with the FDIC. Some of them include: Bank of America (go figure), CitiMortgage, Wells Fargo, etc.
This entire agreement between the FDIC and OneWest can be found here, on the FDIC website. It’s all there, for the world to see! They have it all layed out. All of the formulas, worksheets, etc.
Now, it’s up to us to bring it to the attention of our elected officials and the media. Enough is Enough!
UPDATE 9/18/09: I JUST READ AN AWESOME ARTICLE ON THIS, THAT GOES INTO WAY MORE DETAIL THAN MY BLOG ABOVE. TAKE THE TIME TO READ IT WHEN YOU GET A CHANCE! CLICK HERE TO READ IT.
Wait, it gets better…The FDIC just announced that it needs to start borrowing money from the U.S. Treasure in order to replenish it’s deposit insurance fund (the same fund being used to pay all of these banks in the Loss Share Agreements). Go Figure! Click Here to read it.
Robert G. Hertzog
Phoenix Real Estate Consultant
Is the FDIC Killing Short Sales?
This just goes to show how mishandled this whole situation has been for everyone. Why would they want to approve short sales when they can make more money from a foreclosure!
Is The FDIC Killing Short Sales?
As some of you already know, I blogged recently about being interviewed recently by our local NBC news affiliate. To read the blog, click here. Basically, IndyMac Bank (now OneWest Bank), is holding one of my clients hostage, demanding a $75k promissory note, or they will proceed to foreclosure. For the life of me, I couldn’t figure out why they were doing this. The BPO came in at the contract price of $275k, with a net to IndyMac of $241k. What advantage could there possibly be for them to proceed to foreclosure?
Yesterday, I figured it out. You see, IndyMac was taken over by the FDIC and sold to OneWest Bank in March/2009. Guess who the investors are behind OneWest? George Soros, Michael Dell, Steve Mnuchin (former Goldman Sachs executive), and John Paulson (hedge-fund billionaire).
Now, listen to the deal they got from the FDIC….
Basically, they purchased all current residential mortgages at 70% of par value (70% of the outstanding loan amounts). They purchased all current HELOCS at 58% of Par Value!!!
Next, in order to “sweeten the pot”, the FDIC stepped in and guaranteed the following: For any residential mortgages where OneWest experiences a loss, the FDIC will step in and cover anywhere from 80%-95% of the loss. The loss is calculated using the ORIGINAL LOAN BALANCE, not the amount that OneWest paid for the loan. Let’s use my clients situation as an example:
Loan Amount is $478,000, plus 6 months of missed payments, for a grand total of $485,200
OneWest pays $334,600 for the loan
We have an all cash offer of $241,000, net to OneWest.
So, let’s do the math, shall we? The net loss, according to the FDIC formula is the ORIGINAL LOAN AMOUNT minus the amount of the offer. In this case, $485,200-$241,000, or $244,200. Next, the FDIC, according to their Loss Share Agreement, writes a check to OneWest for 80% of the so-called “net loss”. So, in this case, OneWest gets a check from Uncle Sam for $195,360 (.80 X $244,200).
Add the $195,360 to the sales price of $241,000, and you get a grand total of $436,360. Remember, OneWest paid $334,600 for the loan. So, OneWest puts $101,760 in their pocket, thanks to the FDIC. Folks, that is over $100k of our hard-earned tax dollars!
So, you ask…Why does this program hurt short sales? Because, our brilliant government offers this SAME PROGRAM FOR FORECLOSURES! The only difference is, the government picks up 80% of the tab on all of the extra costs associated with a foreclosure (BPO’s, upkeep, utilities/maintenance, legal fees, etc.)
So, If I’m OneWest, why would I want to waste my time negotiating through a Short Sale, when I can make the same amount of money (if not more) by just letting it go to foreclosure? And we wonder why nobody can get a Loan Modification? Why would OneWest approve a loan modification for this guy, when they can foreclose and make over $100k? And, to add injury to insult, they have held this loan for 6 months! Not a bad ROI, huh?
What infuriates me the most is that in my particular case mentioned above, they have the guts to hold my client hostage for a $75k promissory note, after they are already making more than $100k on the sale!!! This is his primary residence, 1st Position loan, and OneWest has NO RECOURSE! Imagine if they could make $100k, then get a deficiency judgement! Talk about making some big bucks!
Can you say “GREED”?
The scary thing is that over 50 banks have Shared Loss Agreements in place with the FDIC. Some of them include: Bank of America (go figure), CitiMortgage, Wells Fargo, etc.
This entire agreement between the FDIC and OneWest can be found here, on the FDIC website. It’s all there, for the world to see! They have it all layed out. All of the formulas, worksheets, etc.
Now, it’s up to us to bring it to the attention of our elected officials and the media. Enough is Enough!
UPDATE 9/18/09: I JUST READ AN AWESOME ARTICLE ON THIS, THAT GOES INTO WAY MORE DETAIL THAN MY BLOG ABOVE. TAKE THE TIME TO READ IT WHEN YOU GET A CHANCE! CLICK HERE TO READ IT.
Wait, it gets better…The FDIC just announced that it needs to start borrowing money from the U.S. Treasure in order to replenish it’s deposit insurance fund (the same fund being used to pay all of these banks in the Loss Share Agreements). Go Figure! Click Here to read it.
Robert G. Hertzog
Phoenix Real Estate Consultant
Moses Lake Museum & Arts
New art exhibits open at the Moses Lake Museum & Art Center!
Oct 15, 2009
CARTOONISTS NORTHWEST
OCTOBER 16 – NOVEMBER 14, 2009
Opening Reception: Friday, Oct. 16 at 7 p.m.
Established in 1981, Cartoonists Northwest is an association of professional and amateur cartoonists who meet monthly to network, collaborate, and promote community among Pacific Northwest artists.
In addition, Cartoonists Northwest artist Elizabeth Pankey will present, Caricature and Other Funny Stuff on Saturday, October 17 at 1:30 p.m. Admission is FREE and the presentation is appropriate for ages 10 thru adult. Private critiques after presentation. Please sign up in advance for critiques, space is limited.
Featured artwork: from Last Kiss, by John Lustig.
DEANNA PINDELL
THE JOURNEY: METAPHORS AND METAMORPHOSIS
OCTOBER 16 – NOVEMBER 14, 2009
Opening Reception: Friday, Oct. 16 at 7 p.m.
The Journey: Metaphors and Metamorphosis is a body of work exploring the transition into afterlife. A universal human concern, this theme transcends cultural or religious differences. As a sculptural installation, these works offer a pathway through a strange jungle of forms. The physical pathway is a metaphor for the metaphysical journey, each of us embarks upon when life ends.
Featured artwork: Unseen Guests, beeswax encaustic over paper, Deanna Pindell.
For details, please call 509-766-9395.
Moses Lake Museum & Art Center (MAC) is a non-profit institution emphasizing the history and art of Central Washington and is supported by the City of Moses Lake and Friends of MAC.
The MAC is located at 228 West Third Avenue in downtown Moses Lake. Hours are 11am to 5pm, Tuesday through Saturday, and admission is FREE.
Follow me on Twitter @ hjadkinson
Become a fan on Facebook http://preview.tinyurl.com/ykcrkm2
Follow my Moses Lake Real Estate Blog @ http://hjadkinson.wordpress.com/
Moses Lake Museum & Arts
New art exhibits open at the Moses Lake Museum & Art Center!
Oct 15, 2009
CARTOONISTS NORTHWEST
OCTOBER 16 – NOVEMBER 14, 2009
Opening Reception: Friday, Oct. 16 at 7 p.m.
Established in 1981, Cartoonists Northwest is an association of professional and amateur cartoonists who meet monthly to network, collaborate, and promote community among Pacific Northwest artists.
In addition, Cartoonists Northwest artist Elizabeth Pankey will present, Caricature and Other Funny Stuff on Saturday, October 17 at 1:30 p.m. Admission is FREE and the presentation is appropriate for ages 10 thru adult. Private critiques after presentation. Please sign up in advance for critiques, space is limited.
Featured artwork: from Last Kiss, by John Lustig.
DEANNA PINDELL
THE JOURNEY: METAPHORS AND METAMORPHOSIS
OCTOBER 16 – NOVEMBER 14, 2009
Opening Reception: Friday, Oct. 16 at 7 p.m.
The Journey: Metaphors and Metamorphosis is a body of work exploring the transition into afterlife. A universal human concern, this theme transcends cultural or religious differences. As a sculptural installation, these works offer a pathway through a strange jungle of forms. The physical pathway is a metaphor for the metaphysical journey, each of us embarks upon when life ends.
Featured artwork: Unseen Guests, beeswax encaustic over paper, Deanna Pindell.
For details, please call 509-766-9395.
Moses Lake Museum & Art Center (MAC) is a non-profit institution emphasizing the history and art of Central Washington and is supported by the City of Moses Lake and Friends of MAC.
The MAC is located at 228 West Third Avenue in downtown Moses Lake. Hours are 11am to 5pm, Tuesday through Saturday, and admission is FREE.
Follow me on Twitter @ hjadkinson
Become a fan on Facebook http://preview.tinyurl.com/ykcrkm2
Follow my Moses Lake Real Estate Blog @ http://hjadkinson.wordpress.com/
$8000 Home Buyer Tax Credit
In searching and trying to find what the topic “du jour” is today it has become glaringly obvious that it is the home buyer tax credit. There are a couple things that I think about the credit and believe me everything I write here is strictly opinion and nothing else.
- I don’t know if the tax credit is going to help us, is it a band-aid for a solution that is much bigger then we can wrap our heads around? With that said I am leaving it open for further evaluation.
- I have only had 2 clients that have used the credit and it was something they were thankful for.
- I think we are going to have a heck of a lot of pissed off clients if they extend and add to that credit.
I see all these drawn out blogs explaining the tax credit until they must be raw at the fingertips when really it is quite simple:
-
Applies to purchases that close after April 8, 2008, and before Dec. 1, 2009.
-
Applies only to homes used as a taxpayer’s principal residence.
-
Reduces a taxpayer’s tax bill or increases his or her refund, dollar for dollar.
-
Is fully refundable, meaning the credit will be paid out to eligible taxpayers, even if they owe no tax or the credit is more than the tax owed.
To apply for the credit fill out form 5405 . A couple other things to be aware of taken directly from the irs website:
For home purchased in 2009, the credit does not have to be paid back unless the home ceases to be the taxpayer’s main residence within a three-year period following the purchase.
First-time homebuyers who purchase a home in 2009 can claim the credit on either a 2008 tax return, due April 15, 2009, or a 2009 tax return, due April 15, 2010. The credit may not be claimed before the closing date. But, if the closing occurs after April 15, 2009, a taxpayer can still claim it on a 2008 tax return by requesting an extension of time to file or by filing an amended return.
So don’t forget when you’re filing your taxes for the next year to apply for the credit if you have the chance.
Moses Lake Colder Weather
Well if you were around at all this weekend you felt the same weather I did. It was freezing, literally! In one of my divisions I had over 6 people whose irrigation pipes burst over the weekend. 
I just wanted to put a reminder out to everyone to make sure you winterize your irrigation systems and pools. Also make sure you wrap any metal water pipes that are open to the outside. If you don’t you could have a problem like we had this weekend.
I just wanted to put a reminder out to everyone to make sure you winterize your irrigation systems and pools. Also make sure you wrap any metal water pipes that are open to the outside. If you don’t you could have a problem like we had this weekend.For more information on winterizing your system click here
Make sure you’re prepared for the cold!
Moses Lake Pumpkin Patches
Moses Lake Pumpkin Patches If you are looking for some local places for harvest events and pumpkin patches here are a couple places that will come in handy for the Halloween season.
1. Grandpa Burts Pumpkin Patch: Located at 10820 Dune Lake Loop SE, Moses Lake WA 509-431-7119
Hours of Operation: Starts Oct 16, 2009 From 10-5:30 Find them at Dune Lakes Flower Farm
2.It looks like the Haywire Maize in Pasco won’t be opening this year but check back next year for dates and times.
3. The County Mercantile: Located right off Highway 395 entering Pasco 509-545-2192
Hours of Operation: Starts Oct 1-Oct 31 from 9:00-Dusk Admission $6.50 person
Tons of Activities for the kids:
- Hayride out to the pumpkin patch.
- Two massive straw bale pyramids.
- A craft straw bale maze for the kids.
- A big red barn full of farm animals, also known as a “petting zoo.”
- A HUGE 4 acre corn maze to get lost in (come and take your chances to see if you can make it out).
- Face painting (12 – 3pm on weekends only)
They will also be adding bands this year as well as a permenant merry-go-round! More info can be found here
County Mercantile
Don’t miss out on all the fun to be had at Moses Lake Harvest time!
