Christina Dunham's Random Real Estate Musings

What goes up must come down. During the housing boom of 2003 to 2006, property values in the Bay Area experienced double-digit appreciation with buyers bidding up to $100,000 over list price just to be considered for the sale.

Today, values for single family homes in California are back to 2000 levels, with the February 2009 median home price at $247,590 statewide. This represents a drop of almost half from just a couple of years ago, and the first time since 1999 that home values have dipped below the $300,000 threshold. In 2006, the height of the housing boom, the media price for a single family home in California was $535,700.

With foreclosure bargains flooding the market, home values continue to get pushed lower, creating opportunities for first-time homebuyers. As such, sale of existing homes has increased around the Bay Area, up 26.1 percent from just 12 months prior. Around the San Francisco/Bay Area, foreclosure sales represent 52 percent of home sales.

Good news from homebuyers, bad news for homeowners. However, this represents an opportunity for those who purchased their homes after January 2002. Proposition 8, passed by California voters in November 1978, allows for a temporary reduction in assessed value when properties suffer a “decline-in-value” – when the current market value of your property is less than the current assessed value.

County Tax Assessors statewide are reviewing hundreds of properties for an automatic reduction of property taxes. San Mateo County, for example, is currently conducting a review of 45,000 properties for a potential value re-assessment, and corresponding property tax reduction. San Mateo County provides this service for free for its residents.

If you feel you qualify for a tax reduction, contact your county Tax Assessor’s Office directly. No need to hire a “property tax review” company to do this for you, as the county typically does not charge for this service. All you need is a bit of patience on your part in completing the necessary forms.

Make sure you have the following information handy:

- Your Full Property Address

- Assessor’s Parcel Number APN) found in your Property Tax Bill

- The Current Assessed Value as indicated in your Property Tax Bill

- Your opinion of Current Market Value (consult an appraiser for a more accurate figure)

- The Original Purchase Date

- A List of Supporting Documentation confirming your Opinion of Value (such as an appraisal report or comparable sales report)

Below is a list of recommended websites:

Alameda County – visit http://www.co.alameda.ca.us/assessor/reassessments.htm

Contra Costa County – visit http://www.co.contra-costa.ca.us/index.asp?nid=191

Sacramento County – go to http://www.assessor.saccounty.net/DeclineinValueReassessments/SAC_ASR_DF_Decline_Value

San Francisco County - http://www.sfgov.org/site/assessor_index.asp?id=92

San Mateo County - complete the form online at http://www.smcare.org/library/forms/forms_declineapp.asp.

Santa Clara County – check out http://www.sccassessor.org/portal/site/asr/ for more information

Solano County - visit http://www.co.solano.ca.us/depts/assessor/default.asp for filing instructions

If your county is not part of this list, simple Google “<county name> decline in value assessor.” Good luck!

Until next week, Happy Home Loan Shopping!

Christina Dunham is a Mortgage Advisor with Bay Equity, a commercial, residential and FHA Direct Lender. She may be reached at contact@christinadunham.com.

Government Bail-out for First-Time Homebuyers

Before you file your taxes this year, don't forget about the $8000 tax credit (or 10% of the home’s value, whichever is less) for first-time home buyers, which was enacted by the 2008 American Housing Rescue and Foreclosure Act. Designed to help stimulate interest in the housing market, this temporary provision provides a first-time home buyer (someone who hasn't owned a home in the last three years) a tax credit of up to $8000 for homes purchased between January 1, 2009 and December 1, 2009.

Qualifying taxpayers who buy a home this year before Dec. 1 can get up to $8,000, or $4,000 for married filing separately.

“For first-time homebuyers this year, this special feature can put money in their pockets right now rather than waiting another year to claim the tax credit, “ said IRS Commissioner Doug Shulman. “This important change gives qualifying homebuyers cash they do not have to pay back.”

It's not the $15,000 credit that Lawrence Yun, chief economist for the National Association Realtors (NAR) wanted to see. But Yun said, "The $8,000 credit will bring an additional 300,000 new homebuyers into the market. The credit could also create a domino effect," he said, "because each first-time homebuyer sale will lead to two more trade-up transactions down the line."

Basically the tax credit is an interest-free loan from the government to help you offset the costs of home ownership. But here's the best part. The law allows qualified taxpayers to take the credit against either their 2008 or 2009 taxes. Unlike the $7,500 credit from the previous stimulus bill, this is a true tax credit, in that it doesn't have to be repaid, as long as the buyers remain in the home for at least 3 years.

This means, if you qualify, you can buy a house this year before the end of the year and receive the credit on the 2008 tax returns you're filling out right now. Imagine having an extra $8000 in cash to pay bills or credit cards or even pay for renovations on your new home. If you choose to utilize the credit on your 2009 returns, your tax professional can help you reduce income tax withholding up to the amount of the credit. This will help you to increase your take-home pay throughout the year to save money for a down payment for a qualified purchase before December 1^st.

Qualified taxpayers who have already completed their returns and filed for the $7,500 credit can file amended returns for 2008 to claim the credit. You can download the necessary form from the IRS website at http://www.irs.gov/pub/irs-pdf/f5405.pdf. The instructions to the revised Form 5405 provide additional information on who can and cannot claim the credit, income limitations, and repayment of the credit.

There are certain income restrictions and rules for repayment. The new law does not affect people who purchased a home after April 8, 2008, and on or before December 31, 2008. For taxpayers who are claiming the credit on their 2008 tax returns, the maximum credit remains at 10 percent of the purchase price, up to $7,500, or $3,750 for married individuals filing separately. In addition, the credit for these 2008 purchases must be repaid in 15 equal installments over 15 years, beginning with the 2010 tax year.

Although the building industry was pleased with the credit, the $15,000 credit "would have done a lot more to turn around the housing market," said Bernard Markstein, an economist and director of forecasting for the National Association of Homebuilders (NAHB).

Christina Dunham is a Mortgage Advisor with Bay Equity, a commercial, residential and FHA Direct Lender. She may be reached at contact@christinadunham.com.

New $10,000 Tax Credit for New Home Buyers in California

California lawmakers approved a new budget that included a $10,000 tax credit for home buyers, the largest home-buyer incentive ever offered in US history to date.

The tax credit is available for qualified buyers who purchase a newly constructed home on or after March 1, 2009, and before March 1, 2010, purchase a qualified principal residence that has never been occupied. The buyer must reside in the new home for a minimum of two years immediately following the purchase date.

Qualified Buyer Definition:
The California Franchise Tax Board defines a qualified buyer as “A taxpayer who purchases a single-family residence, whether detached or attached, that has never been occupied, that is purchased to be the principal residence of the taxpayer for a minimum of two years, and that is eligible for the homeowner’s exemption under California Revenue and Taxation Code Section 218.”

Qualified Principal Residence Definition:
A qualified principal residence refers to “ single-family residence, whether detached or attached, that has never been occupied and is purchased to be the principal residence of the taxpayer for a minimum of two years and is eligible for the property tax homeowner’s exemption.” This can be a single family home, condominium, a unit in a cooperative project, a houseboat, a manufactured home, or a mobile home. According to the rules, owner-built properties do not qualify because the home has not been “purchased.”

In addition, here’s what you need to know about the tax credit:

• This is NOT limited to first-time buyers;
• There is NO income limitation; and most importantly
• You do NOT have to pay it back, as long as you remain in the home for 2 years.

The bill, however, only set aside $100 million for this tax credit, so after 10,000 new homes are purchased, the credit is gone – so don't wait.

The credit CAN be utilized along with the new $8,000 first-time home buyer's credit made available by the new Stimulus Plan.

This means that if you're a first-time home buyer, and you purchase a qualified new home in California that costs more than $200,000, you'll get $18,000 in tax credits that you do not have to pay back, if you're a first-time home buyer and you purchase a new home that remains your primary residence for three years.

It's important to note that qualified home buyers will receive the tax credit, in equal amounts, over 3-years. If your tax credit is $7,500, you will receive a tax credit of $2,500 each year for three years. If your tax credit is $10,000, you will receive a tax credit of $3,333.33 each year for three years.

Finally, there is no down payment requirement to receive the $10,000 tax credit, although you will likely have a down payment requirement to secure a mortgage in today's market, at least 3.5% if you use FHA financing. The good news is the Stimulus Plan also restored the higher maximum loan limits of $729,750 for FHA and conventional loans for 2009.

This is largest home buyer tax credit ever offered in US history, let alone California. If you have even been thinking about buying a new home in California, give your mortgage advisor a call to get pre-qualified before it's too late. Don't miss out on this great opportunity to buy the new home of your dreams.

For more information, visit the California Franchise Tax Board’s website at http://www.ftb.ca.gov/individuals/New_Home_Credit.shtml

Christina Dunham is a Mortgage Advisor with Bay Equity, LLC, a direct lender specializing in residential, commercial and FHA loans. She may be reached at contact@christinadunham.com.

Home values in the San Francisco Bay Area continue to slide for the third year in a row. Values for single-family homes in the nine-county region dropped to $350,000, the lowest it has been since 2000. In San Francisco and the Northern Peninsula area, property values have dropped about 20%. In areas like Vallejo, the drop is even steeper at 32%.

Nationwide, one in every five homes sold in the last 12 months was a foreclosure, and one in six of all homeowners are upside down on their mortgage; that is, their loan balance is greater than their home’s value.

When this is the case, the best option is a short sale, which occurs when a bank or mortgage lender agrees to discount a loan balance, due to an economic hardship on the part of the home owner. The home owner sells the mortgaged property for less than the outstanding balance of the loan, and turns over the proceeds of the sale to the lender in full satisfaction of the debt. In such instances, the lender would have the right to approve or disapprove a proposed sale.

A short sale is typically executed to prevent a home foreclosure. Lenders often choose to allow a short sale if they believe that it will result in a smaller financial loss than foreclosing. For the home owners, the advantages include avoidance of having foreclosures on their credit histories. Additionally, a short sale is typically faster and less expensive than a foreclosure.

Junior lien holders, such as holders of second mortgages, HELOC lenders, and homeowner associations (special assessment liens), may also need to approve the short sale. Frequent objectors to short sales include those who hold tax liens (income, estate or corporate franchise tax - as opposed to real property taxes, which have priority even unrecorded) and mechanic's lien holders. It is possible for junior lien holders to prevent the short sale.

While it is frequently common for a lender to forgive the balance of the loan in question, it is unlikely that a lien holder that is not a mortgagee will forgive any of their balance. Further, it is common for a lender to omit updating the zero balance and settlement option on the mortgagor's credit report, or even flat-out refuse to do so "due to their financial loss."

The Mortgage Forgiveness Debt Relief Act Of 2007

When the lender decides to forgive all or a portion of the debt and accept less, the forgiven amount is considered as income for the borrower, like with a foreclosure, leaving it open to be taxed. However, The Mortgage Forgiveness Debt Relief Act of 2007 contains amendments to remove such tax liability, allowing the borrower and lender to work together to find a solution beneficial to both parties. For more details, download the IRS publication “Canceled Debts, Foreclosures, Repossessions and Abandonments” at http://www.irs.gov/pub/irs-pdf/p4681.pdf.

How Does a Short Sale Affect the Borrower's Credit?

To date, most short-sales are appearing as "Paid Settlements" on a mortgage account. In the wake of the current mortgage crisis, short sales are becoming extremely common, but legislation has not caught up with the tidal wave and there is no law on the books relating to them to date. As a result, there is an opportunity for the borrower to negotiate credit reporting with the lender.

A short sale proves that the borrower is exhausting every effort to pay the loan. The borrower has willingly committed to taking on months of emotional and physical stress in a good-faith effort to sell the property to maintain a good relationship with that lender. Here are the options you can request for in preferred order:

• Paid As Agreed - Won't hurt the score at all as long as the borrower has kept payments current.
• Unrated - May drop a few points.
• Paid Settlement - Credit score will drop 50-150 points.

If the short-sale is reported to the credit bureaus, the item will remain on the credit report for 7 years from the completion date or the settlement date. Since some lenders consider short sales the same as foreclosure, borrowers may need to wait up to 2 years from the date the short sale is completed to apply for another home loan. There is no exception for extenuating circumstances.

Christina Dunham is a Mortgage Advisor with Bay Equity, LLC, a direct lender specializing in residential, commercial and FHA loans. She may be reached at contact@christinadunham.com.

What is Foreclosure?
Foreclosure is the legal process in which a bank or other secured creditor either sells or repossesses a parcel of real property, home or land, after the owner has failed to comply with the mortgage or deed of trust agreement with the lender. Most frequently, the violation of the mortgage agreement is the default of payment. The completion of the foreclosure process allows the lender to sell the property, and keep the proceeds to pay off the mortgage as well as any legal costs. The length of the foreclosure process varies from state to state.

If the foreclosed property is sold for less than the remaining primary mortgage balance, and there is no insurance to cover the loss, the court overseeing the foreclosure process may enter a deficiency judgment against the borrower. Deficiency judgments can be used to place a lien on the borrower's other personal property, obligating the borrower to repay the difference or suffer the loss of their property. It gives the lender a legal right to collect the remainder of debt out of borrower's other existing assets.

However, there are exceptions to this rule. If the mortgage is classified as "non-recourse debt," then the borrower has no personal liability in the event of foreclosure. This is often the case with residential mortgages. If so, the lender may not go after borrower's personal assets to recoup additional loss.

The lender's ability to pursue a deficiency judgment can be restricted by state laws. In California and some other states, original mortgages (the ones taken out at the time of purchase) are typically non-recourse loans, however, refinanced loans and home equity lines of credit aren't.

If the lender chooses not to pursue deficiency judgment – or can't because the mortgage is non-recourse – and writes off the loss, the borrower may have to pay income taxes on the un-repaid amount if it can be considered "forgiven debt."

Any other loans taken out against the property being foreclosed (second mortgages, HELOCs) are "wiped out" by foreclosure (in the sense that they are no longer attached to the property), but the borrower is still obligated to pay them off if they are not paid out of the foreclosure auction's proceeds.

How Does a Foreclosure Affect Credit?
A foreclosure can be reported as a Foreclosure or Repossession and carries a derogatory payment status. There is a misconception that foreclosures are considered Public Records to the scoring system, however, they are not. Although there is a Public Notice Record on file once a foreclosure is filed, this record is completely different than a credit report public record.

A Foreclosure will remain on a credit report for 7 years from completion date and credit scores can drop from 50-250 points. The difference in point loss depends on how many points you have to lose in the payment history factor of your credit. So if someone has a 750 credit score, and they opt to foreclose, their score could drop up to 250 points. However, if someone has a 500 credit score, they may lose 50 points for the same derogatory.

If a Deficiency Judgment or Tax Lien is filed in connection with a Foreclosure, the credit score can drop an additional 100 points.

When it comes to foreclosure and how it affects the ability to obtain credit in the future, there are multiple points of extremely negative impact. Deficiency judgments for the amount not collected by the lender in the foreclosure sale can end up on the borrower's credit report as a derogatory mark. Additionally, there is a high risk that the borrower will be hit with a substantial tax penalty which can result in a tax lien, which also appears on the credit report. As a general rule, other than a bankruptcy, foreclosure is the least desirable of all of the options available when a borrower is upside down in a home mortgage.

What you can do
If you are going through a foreclosure due to circumstances of losing a job, a medical crisis, or sub-prime mortgage crisis fall-out, make sure to fully document your experience now. Do not wait until later, because the details and emotional energy of what you are going through will be more difficult to document and prove down the road if you decide to apply for a loan in 2 years based on an “Extenuating Circumstance” claim.

Most importantly, outline a plan to recover from a foreclosure by slowly rebuilding your credit. Maintain on-time payments for credit card, utility, and other bills. It is important to understand that over time, all derogatory credit will have less impact on your score.

Next week: Deed-in-Lieu of Foreclosure and Credit.

The Federal Trade Commission (FTC) estimates that as many as 9 million Americans have their identities stolen each year. This means that an identity is stolen every 3 seconds, costing the average victim nearly $4,000 and nearly 175 hours to straighten out their problems and their credit. How can you protect yourself from the dangers of identity theft? Here are some suggestions.

1. Conduct a Credit Check-up – Visit www.annualcreditreport.com to obtain a free credit report every 12 months. Review all three of your credit reports and look for any suspicious activity, unusual or inaccurate names or addresses, or any inquiries that were done without your knowledge. In many states, you may place a 90-day "Fraud Alert" on your credit report, which further restricts access to your credit information. Simply call one of the three main credit bureaus to activate the alert. Here are the toll-free numbers: Equifax 1-800-525-6285; Experian® 1-888-397-3742; or TransUnion® 1-800-680-7289.

2. Don't Give It Up – Avoid falling prey to phishing scams, both over phone and through email. In a phishing scam, identity thieves pretend to be someone from your bank or a credit institution and simply ask you for your personal information. If someone contacts you and requests any personal information, don't give it to them. Verify who is requesting the data and why, and then call the institution yourself. One extra phone call could save you a lot of trouble and money.

3. Stay off the Pharm – While phishing enables thieves to pilfer information from you, pharming is another kind of scam that consists of hijacking your computer and stealing your personal information. A pharming site is designed to look just like the website you're trying to visit. However, enter your information on this fake site and not only can it track your moves within it, it may also direct your computer to give up other personal information at a later time. Be sure you are visiting the correct site, that the address in the navigation bar is correct before entering any information.

4. Return to Sender – Some scammers simply fill out a change of address form and divert your mail to another location. Others simply steal the mail they want right from your mailbox. The key to avoiding this scam is to know your statement delivery dates and pay close attention to any unusual delays in delivery. A lot of identity thieves do things the old-fashioned way: They rummage through your trash to collect your information that way. Be sure to shred any junk mail

or other documents that may contain your personal information before you throw it away.

5. Opt-out of Special Offers – Visit www.optoutprescreen.com to cut down on the pre-approved offers from credit card and insurance companies. It's also good idea to have your clients opt out as well, especially if they're thinking about buying a home. When people apply for a mortgage, they often become "trigger leads" to the credit bureau, who sell your clients' information to any number of companies. It only takes a few minutes to opt out, but it could spare your clients a ton of junk mail and could possibly save them from identity theft.

Your credit profile is one of your most precious assets, so protect your identity from theft and fraud. For more information on credit reports, visit www.sfmortgageadvisor.com and download our complimentary brochure.

There has been a lot of talk lately about the 4.5% 30-year fixed rate mortgage. According to the Wall Street Journal, the U.S. Treasury Department would “use the clout of mortgage giants Fannie Mae and Freddie Mac to encourage banks to lend at rates as low as 4.5 percent.”

The Treasury hopes that this plan can revitalize the sagging real estate market, possibly arresting the decline in home prices. Lower rates enable borrowers to afford bigger loans, thus increasing demand and pushing up home values.

Currently, home loan rates are already in the high- 4% to low-5% range, spurring a flurry of refinance activities. Rates on a 30-year fixed loan are currently around 4.875%. We’re already seeing lender backlog due to low interest rates. In 2003, with rates at these same levels, some lenders were taking up to 90 days to close a loan.

Will this low-rate 30-year fixed loan become a reality though? Right now, no one really knows. Homeowners who could benefit from a lower interest rate need to know that even if 4.5% becomes a reality from Washington's actions, it would only be available to home buyers, not homeowners seeking to better their rate. If you need to refinance, you will be left out unless you act quickly and take advantage of the current interest rate levels.

Interest rates change constantly, and it is important to know that rates are cyclical. If rates are currently at historical lows then we know there is a strong probability rates will go up again, and vice versa. Certain economic indicators such as unemployment data, consumer price index, retail sales data, and consumer confidence all have an effect on mortgage interest rates. For example, the Fed announced recently that they are going to buy up to $600 billion in mortgage-backed securities, driving rates to historical lows. In January, the SEC is meeting and information may be released that could have a significant bearing on rates, potentially for the worse.

But the key factor to watch is the relationship between stocks and bonds. When the economy is slow and the stock market is "bearish," many investors move money out of stocks and into bonds and mortgage-backed securities. This causes mortgage interest rates to go down. When the economy is doing well, the stock market rallies and is considered "bullish." Investors then have a tendency to move their money out of that safe haven of bonds and mortgage-backed securities and back into stocks. As a result, mortgage interest rates go up.

For a quick snapshot of today’s mortgage interest rates, check out the table below. For a more specific rate quote, contact your mortgage advisor today.

As of 12/16/08	Conforming	APR	Payment per $1000	Jumbo	APR	Payment per $1000
30-Yr Fixed	4.875	4.938	$5.29	6.250	6.344	$6.16
15-Yr Fixed	4.875	4.983	$7.84	6.375	6.532	$8.64
7-Yr ARM	5.875	4.941	$5.92
5-Yr ARM	5.500	5.565	$5.68
5-Yr Int Only	5.625	5.690	$4.69	6.000	6.093	$5.00
3-Yr ARM	5.375	5.439	$5.60

Until next week, happy home loan shopping!

According to a survey by the National Association of Realtors (NAR), California is the most expensive real estate market in country. Californians’ spend more of their monthly income on housing (35 percent) compared to other markets. What happens when rates adjust and their mortgage payments increase? Especially in areas where property values have dropped dramatically, homeowners are struggling to maintain their increased mortgage payments and make ends meet.

Foreclosure Forecast:
Nationwide, there are currently 541,301 homes in foreclosure, almost double the figure from this time last year, and 283,548 individuals filing for bankruptcy. In California, over 139,500 homeowners are delinquent on their mortgages and over 179,200 homes are in foreclosure.

If you find yourself part of this statistic, then act fast – the sooner you communicate with your mortgage lender, the better. There is a big difference in what you can do to protect your house and your credit at day 1 and day 120. Lenders typically begin calling when you are 10 to 16 days late on you mortgage. Once the payment is 30 days delinquent, the collection attempts become more aggressive. Around the 90^th to 120^th day, lenders may initiate formal foreclosure proceedings, especially if you have not made attempts to arrange a workaround.

According to an update of Freddie Mac's "Foreclosure Avoidance Research Survey," homeowners are generally unaware of many of the options available to them when struggling to make a mortgage payment. Worse, the study found that 20 percent of people say that nothing would happen after missing three or more mortgage payments because "it takes a while for anything to happen if a person is late on a mortgage payment."

Robin Stout Migala, senior delinquency resolutions manager for Freddie Mac, says that most homeowners don't realize that Fannie Mae and Freddie Mac, the largest investors in the secondary mortgage market, encourage mortgage servicers to avoid foreclosure whenever possible. They grade servicers on how well they're working out delinquent loans. "We not only rank them, we pay them to do workouts. They get a certain dollar amount for every workout type. We spent $7 million in cash bonuses" on the program last year, Stout Migala explains.

Before paying down credit cards, doctor bills or other low priority debt, pay your mortgage first. While being late on a credit card payment could mean a collection, being late on your mortgage poses a more severe consequence: foreclosure. To prevent becoming part of that statistic, here are some other options to consider:

Refinance your Mortgage
If you are only 30 to 60 days late on your mortgage, you still have a chance to refinance into a program which may help you greatly reduce your monthly mortgage payment. Depending on your credit and current loan balance, you may even be able to get some cash-out of up to 90 percent of the value of your house to help consolidate your debt and tied you over until you are back on your feet.

With the 30-Year Fixed rate for loan balances below $417,000 dipping to 4.875% today, now may be a good opportunity to refinance into a long-term loan program.

Consult with a Local Realtor
If you feel your financial issues might be longer-term, consider pocketing the equity you’ve built by selling. Contact a local real estate agent to obtain a Comparative Market Analysis Report to find out the value of your home, its marketability and its possible sale price. While this might not be the ideal solution, it is better than letting the bank sell the house for less than the best price and helps you avoid a foreclosure on your credit report. If property values in your area have suffered, your real estate agent can help arrange for a “short-sale,” wherein your home is listed and sold for less than the loan balance owed to your lender.

Contact your Lender
The truth is that lenders would prefer you stay in your home than foreclose, which could cost thousands of dollars and drag on for a year or more. The sooner you call them (using the toll-free Customer Service number on your loan statement), the better your options. They may be willing to arrange either a forbearance, repayment plan or a loan modification. Forbearance is an agreement to temporarily let you pay less or nothing while you get back on your feet. Repayment plans include extending the grace period for making late payments, skipping one to six payments for a year or two, or accepting reduced payments from one to eighteen months.

With a loan modification, lenders may lower the interest rate for a certain number of years, lower your loan amount, or lengthen the term of the loan, thus reducing monthly payments. This could help provide some breathing room for those with short-term financial set-backs, such as job loss, divorce, or medical leave. Lenders typically do not charge for loan modifications, but do require submission of a complete loan modification request package. Check your lender’s website for their specific requirements.

Sit down with a Housing Counselor
If you need assistance or coaching in putting together your loan modification request package, sit down with a trained housing counselor to find out your options. Beware of Internet Scam artists posing as non-profit credit counselors or foreclosure mitigation specialists. To find a reputable credit counselor or to get more information about the foreclosure process, visit www.hud.gov.

To speak with Filipino housing counselors, www.mabuhayalliance.org, a HUD-certified organization that assists homeowners in distress. Mabuhay Alliance will be holding a free Foreclosure Prevention Clinic on Saturday, December 13 in Solano County. Visit www.mabuhayalliance.org/foreclosure for more information.

Seek Legal Advice
If foreclosure is imminent, talk to your lawyer regarding your legal rights. Some homeowners simply turn over their deed to the lender instead of fighting the foreclosure process, but a knowledgeable attorney can help determine whether there are some legal defenses to your foreclosure. California is a “Non-Judicial State” which means there is no civil litigation, no court, no judge, no sheriff. Consumer law is complex. When emotional distress impairs decision making, having an expert on your side to spot defenses can help save your home.

Save your Home
The best way to save your home is to act NOW. Begin working on a solution before your mortgage woes get out of hand. For more information about any of the options above, feel free to contact me at contact@christinadunham.com.

Loss Mitigation Specialists from Ten Lenders including Countrywide, Bank of America, JP Morgan Chase/WaMu and Downey Savings to be present

Solano County’s foreclosure rate is nearly four times the national average, with one in 12 homes foreclosed in the past year, and home prices dropping 30 to 40 percent over the same period. It is one of the California counties hardest hit by the subprime mortgage crisis.

In October of this year, Mabuhay Alliance, a Filipino-American non-profit organization, spearheaded a movement to get the Vallejo City Council and the Solano County Board of Supervisors to issue a moratorium on foreclosures. The resolution was unanimously passed on October 29^th.

As part of Solano County’s efforts, the City of Vallejo is hosting a free foreclosure intervention clinic at the Solano County Community College on 545 Columbus Parkway on Saturday, December 13th. The event will run from 12:00 p.m. to 5:00 p.m. and organizers expect to serve up to 300 troubled homeowners. You do not need to be a resident of Solano County to participate in the clinic.

Loss mitigation specialists from several banks including Countrywide Home Loans, Bank of America, Citi Mortgage, Wells Fargo, JP Morgan Chase, WaMu, HSBC, IndyMac Federal Bank, Downey Savings and EMC Mortgage will be available to review loan modification requests on the spot.

In addition, volunteer housing counselors, mortgage counselors and attorneys will be on hand to provide valuable information and assist you in identifying next steps as well as making decisions regarding your home and finances.

Housing counselors can evaluate your current financial situation and discuss loan modification and pre-foreclosure options. Mortgage counselors can review your mortgage documents to answer your questions about interest rates, pre-payment penalties, and other mortgage terms.

The volunteer attorneys can answer your questions about the foreclosure and/or bankruptcy process, tax liabilities, debt liability, and other potential judgments.

There is no cost, and pre-registration is required. We recommend arriving up to 30 minutes early as attendees will be entertained on a first come, first serve basis and only the first 300 homeowners will be served. On-line registration is available at www.mabuhayalliance.org/foreclosure. Deadline for pre-registration is December 8, 2008.

Tips on how to speed through the line and ensure audience with your lender – download the forms below from www.mabuhayalliance.org/foreclosure and:

• Sign and date the Authorization to Release Information
• Complete the Intake Form
• Download the Checklist of Documents
• Complete the Monthly Budget Form

Print out the completed forms and bring the necessary supporting documents with you, including copies of your mortgage documents, 2006 and 2007 W-2s, as well as most current pay stubs, in order to have a productive one-on-one meeting with your lender.

The free Foreclosure Intervention Clinic is presented by Mabuhay Alliance in collaboration with NaFFAA, United Way of the Bay Area, and the Filipino Community of Solano County, and is hosted by the City of Vallejo and Solano County.

For more information, call Mabuhay Alliance at 858-586-7382 or email info@mabuhayalliance.org.

There’s no doubt about it – we are in a recession. With the holidays just around the corner, it’s more important than ever to tighten our belts and find ways to save money.

Annual income aside, there's not a person among us who wouldn't welcome the idea of having more money in their savings account. This is the money we use on everything from yearly vacations to family presents. Come holiday time, wouldn't it be nice to have an extra thousand or so dollars at your disposal?

Here are a few ideas that can help to make that possible. The best part is you'll hardly feel it!

Make Your Coffee at Home – How much do you usually end up spending at Starbuck’s or Pete’s? On average, people spend about $2.50 per cup. A pound of coffee, costing $10, makes about 45 cups. Assuming one cup of coffee every morning, that one pound bag can last you up to 9 weeks, and save you over $100 over the same period.

Bring Your Lunch to Work - The average person spends $6 when they buy their lunch yet only $2 when they pack it themselves. That's a potential savings of $20 a week or $1,040 dollars a year.

Durable over Disposable - Using products like Handi-Wipes (semi-disposable rags) as opposed to paper towels, and a rechargeable razor rather than the disposable kind, can save you up to $200 per year.

Hold an Annual Yard Sale - You should have no problem making at least a hundred bucks. Besides, you'll get rid of all that household clutter in the process. Whatever you don't sell can be donated to charity and used as a tax write-off (just be sure to ask for a receipt itemizing your donation!)

Ask for Discounts - From buying airline tickets to paying a medical bill, always ask if there's a discount to be had. The worst that can happen is you'll be told no.

Get a Library Card - As opposed to buying a book for $20 or renting a DVD for $4, get it for free. If you average 3 movie rentals a month, you'll save yourself over $140 a year.

Watch Those Utilities - Changing over to energy saving light bulbs and low flow showerheads is a great start. Also, most utility companies offer a home audit you can complete online. If not, go to http://hes.lbl.gov for a virtual inspection of your home. You may be surprised to learn how much energy (and money) you could be saving.

The good news is suggestions like these are merely a start. Only you know where your household may be wasting money. Find inefficient habits and figure out a solution. Remember, every little bit counts.

The final step is when you save money on something, put the savings into an earmarked account. Then leave it alone until it's the appropriate time to use it.

Do you have any tips on boosting your savings? If so, drop me an email at contact@christinadunham.com and tell me about them!

AND HAVE A HAPPY THANKSGIVING!!!