You too can be one of the lucky 150,000 loan owners that will see their second mortgages gone.
Bank of America to extinguish up to 150,000 second liens
By Kerri Ann Panchuk October 1, 2012 • 8:03amBorrowers with second liens owned and serviced by Bank of America ($8.97 0.14%) may qualify to get their subordinate debt extinguished entirely.
The banking giant mailed 150,000 letters to pre-qualified homeowners who are eligible to have their Bank of America second-lien mortgages eliminated.
The program was designed to ease the pains of struggling borrowers who are also dealing with issues on first mortgages and to help more individuals create equity in their properties.
Borrowers receiving the letter will have second liens on collateral property completely removed unless the customer decides to opt out of the automatic relief by sending a response within 30 days of receiving the letter.
The offer takes care of the entire unpaid principal balance on second liens. Only second liens owned and serviced by BofA that meet certain delinquency and property value guidelines are qualified for the program.
Second lien mortgages associated with a severly delinquent first lien mortgage also qualify as long as the second-lien is serviced or fully owned by BofA. Ownership of the first lien mortgage does not matter as long as BofA has control of the subordinate lien.
Mailings to eligible customers began in July. Only customers who receive pre-qualified letters will be able to use the program today.
Wouldn't you be embarrassed to overpay by $100,000? Only fools buy houses without knowing neighborhood values. Don't be a fool. Don't suffer the pain of an underwater mortgage. The surest way to lose your house is to overpay for it. Our reports identify overvalued and undervalued neighborhoods. Use it to broaden or narrow your search area. Savvy buyers work with us to find bargains. We've saved thousands from financial ruin. Let us save you too. If you want peace of mind while shopping for your next home, sign up for our monthly market newsletter.
We're sorry, but it seems that we're having some problems loading MLS # S712823 from our database. Please check back soon.
Proprietary OC Housing News home purchase analysis
2788 LONGWOOD Costa Mesa, CA 92626
$450,000 …….. Asking Price
$210,000 ………. Purchase Price
4/14/1999 ………. Purchase Date
$240,000 ………. Gross Gain (Loss)
($16,800) ………… Commissions and Costs at 8%
============================================
$223,200 ………. Net Gain (Loss)
============================================
114.3% ………. Gross Percent Change
106.3% ………. Net Percent Change
5.7% ………… Annual Appreciation
Cost of Home Ownership
——————————————————————————
$450,000 …….. Asking Price
$15,750 ………… 3.5% Down FHA Financing
3.60% …………. Mortgage Interest Rate
30 ……………… Number of Years
$434,250 …….. Mortgage
$113,386 ………. Income Requirement
$1,974 ………… Monthly Mortgage Payment
$390 ………… Property Tax at 1.04%
$0 ………… Mello Roos & Special Taxes
$113 ………… Homeowners Insurance at 0.3%
$452 ………… Private Mortgage Insurance
$0 ………… Homeowners Association Fees
============================================
$2,929 ………. Monthly Cash Outlays
($296) ………. Tax Savings
($672) ………. Equity Hidden in Payment
$18 ………….. Lost Income to Down Payment
$133 ………….. Maintenance and Replacement Reserves
============================================
$2,112 ………. Monthly Cost of Ownership
Cash Acquisition Demands
——————————————————————————
$6,000 ………… Furnishing and Move In at 1% + $1,500
$6,000 ………… Closing Costs at 1% + $1,500
$4,343 ………… Interest Points
$15,750 ………… Down Payment
============================================
$32,093 ………. Total Cash Costs
$32,300 ………. Emergency Cash Reserves
============================================
$64,393 ………. Total Savings Needed
The property above is available for sale on the MLS.
Contact us for a comparative market analysis, a cost of ownership analysis, or information on how you can make an offer today!
Cost of Ownership Analysis
Are you ready to make an offer, but you are worried the cost of ownership is really more than you can afford? Don't make a mistake that might cost you the family home, your life savings, and your good credit! Get the advice of a seasoned professional. Contact us at info@ochousingnews.com today!
We produce detailed reports showing the cost of ownership based on the most likely transaction price and current financing terms. You will know how much you will spend each month in out-of-pocket expenditures and the true monthly cost of ownership factoring in tax deductions, loan amortization, and opportunity costs on your down payment. In addition, we show you how this cost compares to a rental of equal quality to make sure buying is the right decision for your situation.
An OC Housing News Cost of Ownership Analysis will calm your worries and give you peace-of-mind.
Let us show you the way!
Reports are available for properties in the Southern California MLS coverage area, and are generally delivered within 24-72 hours. If you wish to receive multiple properties, please contact us at info@ochousingnews.com, and we will prepare the reports for you.
OC Housing News FREE Guides!
Nearby Foreclosures
Gain a competitive advantage over other buyers. By locating distressed properties -- before they hit the MLS -- you can discover where tomorrow's REOs and short sales will appear. Most of these properties are not listed on the MLS, but they will be soon. Research properties in advance and get a jump on your competition. Don't miss out on another deal because you couldn't act quickly. Use this tool to your advantage! The red properties are already bank owned. As soon as REO asset managers prepare them for sale, they will be on the MLS. Get ready! The green and blue properties have owners who are not paying their mortgages. They may be offered as short sales, or they may go through foreclosure and become REO. Either way, they will also likely be available on the MLS soon. Find your next home! Be prepared to offer on these properties by researching them in advance or risk losing out to buyers who are have done their homework. Start your research today! To find distressed properties, enter your desired location and press search. Scroll through list by pressing "next."Comparative Market Analysis
Are you ready to make an offer, but you are worried you will either (1) underbid and miss the property or (2) overbid and pay too much? Don't make a mistake and miss your dream home, or worse yet, overpay for it! Get the advice of a seasoned professional. Contact us at info@ochousingnews.com today!
Are you thinking about selling, but you are worried you will either (1) overprice and fail to sell or (2) underprice and leave money at the negotiating table? We are the experts in real estate valuation. Work with us to set the right prices to sell your property quickly for the largest amount possible. Let us show you what your property is worth today!
An OC Housing News Comparative Market Analysis will calm your worries and give you peace-of-mind.
See for yourself right now!
Reports are available for properties in the Southern California MLS coverage area, and are generally delivered within 24-72 hours. If you wish to receive multiple properties, please contact us at info@ochousingnews.com, and we will prepare the reports for you.
Home Prices Forecast to Weather Winter, but Will Congress Ice Gains?
Home prices continued to reclaim lost ground in September with increases recorded for every corner of the country, Clear Capital reported Tuesday. Improvements have been so strong, in fact, the real estate valuation firm says yearly growth is forecast to shake off winter’s chill and continue through the first quarter of 2013.
That is, if federal lawmakers can keep from squashing consumer confidence, and before coming head-to-head with the end-of-year deadline, can agree on a resolution for the $500 billion in tax increases and spending cuts scheduled to take effect—a looming cloud of financial uncertainty that pundits have dubbed the “fiscal cliff.”
National home prices closed out the third quarter 3.6 percent higher than the previous year, according to Clear Capital’s latest Home Data Index (HDI). If the fiscal cliff is averted, the company projects a 2.2 percent gain nationally through the first quarter of next year with home prices defying the typical seasonal trajectory that follows the thermometer’s mercury lower.
Clear Capital’s Dr. Alex Villacorta says housing is making notable progress, with enough momentum to carry improvements well into the new year, but he warns it could all be undone by the 535 delegates representing the American people that sit atop Capitol Hill.
“[W]e’ve turned our focus to the impending fiscal cliff,” said Villacorta, Clear Capital’s director of research and analytics. “With forecasted gains of 2.2 percent over the next six months, the threat of the fiscal cliff could throw a wrench into the recovery.”
Even if Congress grinds out a fix as the curtain falls on 2012 and the cliff is avoided, Villacorta says they run the risk of damaging consumer confidence—particularly among potential homebuyers—if a resolution fails to materialize until just before the year-end deadline. “Confidence is key to turning the recovery’s near-term sprint into a marathon,” Villacorta said. “The sooner businesses and consumers are reassured, the more likely they are to build, purchase, or loan on a house.”
According to Clear Capital, the housing recovery now lies in Congress’ hands. The company draws parallels between recent bouts of economic uncertainty and declines in both consumer confidence and home prices in its latest report.
Consumers reacted negatively to the debt ceiling spectacle last summer with a 14.3 percent drop in sentiment—the largest since the end of the recession—and concurrently, home prices experienced their worst annual declines since the bottom of the market in 2009, Clear Capital reports.
The company also points to May 2011, when the debt ceiling debate really began to intensify and consequently, when home prices dropped 6.8 percent year-over-year. Annual home price declines persisted through 2011, until finally finding some relief in early 2012, coinciding with recorded improvements in consumer sentiment.
Clear Capital’s data indicates strength in consumer sentiment also corresponded with the only two notable housing improvements since 2009. The company says between March 2009 and June 2010, consumer sentiment rebounded 32.6 percent. Over the same period, home prices went from seeing yearly declines of 22.7 percent to yearly growth of 4.0 percent. Similarly, between December 2011 and September 2012, consumer sentiment gained 12.0 percent, and home prices moved from yearly losses of 2.3 percent to gains of 3.6 percent by Clear Capital’s assessment.
Now, the valuation company says, economic and housing improvements are priming pent up homebuyer demand for a breakout. Consumer sentiment has finally rebounded from the debt ceiling debate lows of last year, up 31.8 percent, and homebuilders are echoing consumers, with confidence at a five-year high.
While the Federal Reserve’s recent announcement of QE3 should further improve housing affordability with lower mortgage rates and boost expectations for the market, Clear Capital contends it might not be enough to overcome “fear of the cliff.”
Recovery continued to take hold in September at the national and regional levels, according to the company’s report. The West continued to dominate with 9.4 percent in annual gains — the highest yearly gain the region has recorded since the second quarter in 2006.
Clear Capital says what it calls the “first in, first out recovery” has been driven by harder hit markets, many of which reside in the West. Projected gains of 5.3 percent over the next six months in the West are expected to drive a sustained recovery at the national level through the winter months, the company explained.
The South and Midwest saw yearly gains in September of 3.2 percent and 1.5 percent, respectively. Clear Capital expects the South to see further price advances of 1.9 percent through March 2013 and the Midwest to post a 0.8 percent rise in home prices.
The Northeast continues to see annual gains soften, with prices in September rising just 0.9 percent over the previous year. Home prices in the Northeast are expected to do more of the same and remain relatively flat, growing 0.9 percent over the next six months, according to Clear Capital’s forecast.
The good news, Clear Capital says, is that far more markets are improving than are declining. The company’s forecast shows the recovery will sustain the typically slow winter, and start the spring buying season strong.
But as we approach the end of 2012, will fear from the impending fiscal cliff sway consumer confidence and discourage potential homebuyers?
“We say yes, it can,” Clear Capital stated. “Congress must make tough decisions before the 11th hour.”
All wishfull thinking. Clear capital is a realtor site run by a realtor take what he says with a bucket full of salt.
He does take bullishness to the point of bullshit.