According to a RealtyTrac US foreclosure report, close to 400,000 Californian homeowners defaulted on their mortgage and received foreclosure notices from January to June 2009, which was a 15% increase from the number of NODs recorded during the first half of last year.

What is a Notice of Default?

After homeowners have been delinquent in mortgage payments for a couple of months, a notice of default (NOD) is issued. In the state of California, you are given 90 days to bring due loans current after receiving an NOD by certified mail, and if you don’t bring your payments up to date, then a notice of trustees of sale will be issued. At this point, mortgage default is official.

What is a Notice of Trustees of Sale?

This notice serves to inform delinquent homeowners their properties will be put up for auction. The notice is published on the property and in a local newspaper once a week for three consecutive weeks. Homeowners will also receive a copy of the notification by certified mail.

What to Expect at an Auction?

A representative from the lending institution will conduct a public auction at the place stated in the notice of trustees of sale. The trustee’s deed will be handed over to the successful bidder once the total amount of the bid is paid. Payment has to be made in cashier’s check or cash immediately after the bidding is over.

Can You Prevent Any of This from Happening?

When your property goes to auction, it’s too late to save it, but you can prevent an auction by acting fast after you receive the NOD. Here’s how:

• Using equity, you can try to refinance your mortgage
• Work with your lender to modify your loan
• Hire a San Diego agent to get you going on a short sale

If your mortgage is in default, the best thing to do is to consult a real estate expert at San Diego  Short Sales ASAP.  We look forward to hearing from you.

We at San Diego Short Sales ASAP realize you are in the information gathering stage of your purchase and we respect your privacy.  Should you have any questions, please feel free to Contact us or call directly at 760-576-4357.   If you or someone who you know could use are help contact us DRE Lic 01788274

• Your first step is to home-ownership is to  contact a loan officer who is referred to you by someone you trust.  Buying a home is a big step and a big responsibility, so make sure you are dealing with people you can rely on to look after your best interests.

• Be prepared for your first meeting or phone conversation with your loan officer by having your most recent pay stubs, most recent bank statements, and W2s and tax returns from the last two years handy.   Having these items ready will help your loan officer to qualify you for the right purchase price and monthly payment.

• It is also very important to review your average monthly income and outgoing expenses.  Knowing how much money is currently coming in and going out will help you to determine what monthly payment you will be comfortable paying.  You want to be confident that you won’t be overextending yourself when it comes time to pay your monthly bills at your new home.  TIP—print out your last three bank statements and add up the amount of money that comes in and goes out of your accounts each month.  Look carefully at what items you may need to cut out in order to afford a new house.

NO surprises when your first payment comes in the mail.

• Be sure to ask your loan officer these important questions:  How long is the interest rate fixed for?  What are the terms of the loan you are offering me?  How much will my down payment be?  How much are your loan fees?  What will my total closing costs and out of pocket costs be?  What is the interest rate?  What will my total monthly payment be?  You need to be sure you clearly understand how much your total payment will be including your mortgage payment, property taxes, home owner’s insurance, and any HOA dues, mortgage insurance, or special property tax assessments.

Tania Shanahan

Loan Officer Prospect Mtg

Cell: (858) 248-3529

PS. Home prices in San Diego are affordable, and interest rates are still near historical lows.  Right now is a great time to buy a home.  As long as you are smart about your purchase and your mortgage, you will reap the benefits of home-ownership for years to come!!!

This caused a disturbance in the Force…

Government programmed Economic Recovery

U.S. economy is on the mend. But amid a consumer rebound driven largely by tax breaks and government programs, it remained to be seen if a recovery will continue in the absence of federal help.

Analysts wonder how long spending growth can continue in the absence of programs like cash for clunkers or extended unemployment benefits or First Time Buyer’s Tax credit.

Government aid is also propping up the housing market, Auto market and unemployment.

Despite improvement in the economy, employers remain skittish about hiring. Initial claims for unemployment insurance increased 17,000 to 551,000 in the week ending Sept. 26, on a seasonally adjusted basis.

Original Article

Banks Bite Bullet on Loans

Lenders Start to Write Off Some Principal in Modifying Terms for Troubled Mortgages

That’s good news for some homeowners, but may portend more write-offs over the next few years for banks and other lenders now wading through hundreds of thousands of applications for loan modifications. The trade-off for banks is that by taking the hit now they can boost their chances of being repaid.

Original Article

The Credit Crunch Continues   

Taxpayer dollars have supported institutions that are ‘too big to fail.’ Small business has been left out in the cold.

Since the onset of the credit crisis over two years ago, available credit to small businesses and consumers has contracted by trillions of dollars, and that phenomenon is reflected in dismal consumer spending trends. Equally worrisome are the trends in small-business credit, which has contracted at one of the fastest paces of any lending category. Small business loans are hard to find, and credit-card lines (a critical funding source to small businesses) have been cut by 25% since last year.         

Why do small businesses matter so much?

Original Article

Parts of Asia Start to Watch Inflation

While the West still worries about the ravages of deflation, emerging markets in Asia are beginning to contemplate what to do about the opposite problem: inflation.

But the latest data confirm that Asian central bankers have to start thinking about applying the brakes to prevent economies from overheating. Interest rates in most countries are at record low levels and need to rise sharply to get back to levels associated with average growth rates.

“Clearly the period of falling inflation is over for emerging markets,” says UBS economist Jonathan Anderson. “We are at the inflection point.”

Original Article

Japanese Regulator Eases Position on Loans

Government Will Help Banks Hurt by Plan to Delay Repayments

Shizuka Kamei

Japan’s new bank regulator is softening its stance on a proposed moratorium on

loan repayments by small business and individuals, in the latest sign that the country’s new leadership is adjusting its rhetoric to the reality of government

Original Article

Geithner and Bernanke Rally Around the Dollar

China and Russia have been the major drivers behind calls for an alternative reserve currency, blaming the U.S. for the global crisis and worrying that its growing debt load could pose a further threat to stability.

The Fed will do its part to ensure that inflation remains under control, he said. “We are confident that we can manage our policies to support the economy without inducing inflation in the medium term,” he said. “We are committed to low inflation and we fully believe we have the tools and the political will necessary to achieve that.”

Original Article

FHA made ten videos to help consumers understand how to avoid foreclosure.  This is tip #2  Call your lender, yea right how many times have you call your lender?

Do not ignore  the Problem!   Open your mail.  Call your lender.