Exit Desert Ocean Presents an Spring Valley Lake Home at Schooner Drive.

Lenders and Foreclosures
There is so much discussion concerning Short Sales, Deed in Lieu of Foreclosure and Foreclosures. Here is what was presented to me recently at a FHA Class. I mention that it was a FHA Class and not a Foreclosure class because I buy into we really know what we walk around with in our head or we really know what is written in front of us.

What does a foreclosure mean to a client? How does it affect his credit? How does it affect his financial future?

Answers:

In a foreclosure, at the point of foreclosure all liens, debts are cut off. However, the lender may/will 1099 the client because of how the law reads the perceived profit in the deficiency balance. The Speaker recommended that this was the best way to go.

Second, a Deed in Lieu of Foreclosure is a foreclosure and will read as such on a persons credit. Voluntarily, the borrower/grant-or of the property gives the property back to the lender/grantee. It makes release of the finance burden quicker. It may reduce or eliminate any public exposure. A deed in lieu of foreclosure is only a step better than a foreclosure. You lose the home. Your credit is harmed but this is accepted as payment and the borrower will not be issued a 1099. You may not have any monies to face and the process is much quicker. However, your credit will show foreclosure.

Finally, A short sale, the IRS often sees this process as Debt Relief and will count the forgiven amount as income. You will owe money on your taxes of the difference. If you are at the 30 marginal tax rate and the forgiven amount is $100,000. That means you will have a tax issue of $30,000. Ouch. If it is sold through a short sale the lender may say, "You owe us the difference" That Can follow you around or be sold to collection agency until paid. Wow.

So our speaker basically stated, " Don't do a short sale, simply do the foreclosure." I felt that ran against the current popular conventional wisdom of the market. But now, I am wondering. What is truly best for the client and more selfishly how do I make a living in a declining market that will in all likelihood decline even more.

Where is the money is the loss.

Thanks For reading. This is the news from Victorville, Hesperia, Apple valley

Val Rensink Exit Desert Ocean Realty



World Vision Rocks. Your change can change a child's life for ever. Throw your coins at World Vision and change some childs live today forever.

Will the Presidential Election help Stop the Market From Going Down?
When Will The Market Stop Going Down?

You may be wondering. "Will it ever stop?" What are some possible indications that the market will turn around. If you remember the down turns of the past, then you are familiar with the early 80's and the 90's. We are not surprised that there is a downturn in the market, BUT we are surprised by how drastic it is. Why is that? For a moment imagine a two small hills. Say only ten feet high. Small. Then imagine a hundred foot hill. The market experienced in the 80's and 90's two small hills and now after a long run we are facing a tall hill. A hill fueled by the lowest interest rates in 40 years combined with the most creative financing we have ever seen. Then the Fall Out.

The foreclosure market is currently at an all time high. 197 Billion dollars of loans have reset. From January to June another 527 Billion dollars of loans will reset. Do you think that will affect the forclosure market. I do. But ....

Two things drive real estate market: the economy and politics. WE have no control over the economy. Yet the election-politics is coming up. Do you think the presidential candidates want to talk about the "housing problem"? I don't think so. Pressure is already being put upon lenders to take action. CountyWide the Largest home loan lender showed up on the newspaper front page offering millions of dollars worth of loan help. We know that there is a bill on the presidents desk for signing to help forgive the 1099 issue of foreclosures. Things are looking up.

But here is the bad news. When I said that there will be 527 billion in loan reset the other side of the coin is that in the next two years there will be close to 2 trillion, trillion in loans reseting. That's a Big number and tells us that it is a big problem. So for a while it is a buyers market. And I don't see anytime soon that it will stop going down.

And Just for a Wrinkle- What about the Olympics? You know the one good guy time of the year when the whole world watches and loves and cheers. The feel Good. Will that affect the market?

Well with 30 Percent of the Adjustable loans and the no doc loans being written here in California... you finish the thought.

Today I asked another group about the election factor.  They thought it will have an effect albeit a small one.



Thanks for reading

Val Exit Desert Ocean Realty

World Vision changes Lives

Seller, Have you Thought About a AITD?

It is happening in Victorville and Hesperia.

It will be coming to Phelan, Apple Valley and the whole high desert. This is the return of the 80's financing.

Yes, in this market, there are alternative ways to creatively sell your home. For those of us who have been in the industry long enough and remember the high rates of the 1980's. Do you remember the Carter years? 18% interest on home loans. Now houses were still sold but buyers used seller financing when the seller owned the property. What did they do when the seller didn't own the property? That's where an AITD comes in. That is an All Inclusive Trust Deed. Simply put an AITD note and deed of trust is a junior financing method which included at least three things: 1) the obligation created in the current transaction, 2) the debts (current financing) of prior note(s) 3) The deed of trust securing the subject property.

If agreed to in the following manner that means that the current note and the AITD are the same amount. A mirror of each other. It is very important when in the future an order for full re-conveyance from a beneficiary is needed but that entity has absolutely no money interest at stake. That being the case that person or entity may refuse to cooperate or the real nightmare be impossible to be found.

If you perform an AITD to acquire a property. You are using the Financing which has been acquired by the current owner. Although not illegal ( except in VA or FHA gov loans- do not AITD them again do not!!! you will get into trouble. you will go to jail or worse.) the bank often reserves the right to enact the Due on Sale clause. The Due on Sale Clause (read the wording in the loan documents) usually means the bank has the right to call the full amount of the loan due now. If you have any qualms about this type of financing- don't do it.

Last idea. Get your own fire/hazard insurance for the property. And do not cancel the current insurance of the persons named in the bank loan. Yes you will carry two policies on the property. Why? Because the policy that the persons named in the bank loan carry is owner occupied insurance. Your policy must reflect what you are doing with the home. Are you renting? Are you Owner Occupied? You get the idea and sequence.

Thanks for reading

Val Exit Desert Ocean Realty

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RE Podcast Recommendations?
Have you listened to any of the free podcasts offered on iTunes?

I recently received an 8 gig ipod. I listened to music and life motivation/inspiration stuff. Then I discovered Ted Kopel and five free pod-casts on America. Then I laughed and thought and cried to the series supported by your sleep number Lake Wobegon with Garrison Keeler(sp). So I typed in the words "Real Estate" and lo and behold, real estate financing, investments, Re-max down loads, Sales info , stuff for being current. I would say the choice was close to 34 different authors/formates all of which I have never heard of. Now itunes is kind enough to show a popularity rating along side the selections, yet that does not give an indication of quality, relevancy- not that I am complaining because it is free.

But Beyond Free. Any recommendations from sites or author you know? I am more than curious. I am practically addicted to my IPOD.



Thanks for reading and responding



Val Rensink Exit Desert Ocean Realty Victor-ville.

World Vision Rocks the world of Children, you can too.

SpotLight On Cheryl Ballestracci
Let Me introduce you To Cheryl Ballestracci. First, A Year for a Day should be the theme. How do you made a Day memorable to outside Businesses and Entrepreneur's?

She is a Woman with a drive. She serves consistently and with a tireless reserve of determination. She has a way of speaking that attracts the attention of those around her. In her own way she is fearless. She stepped into the role of President of High Desert Opportunity 2007. A major organization event for broadcasting the Opportunity of the High Desert. As the president of the 26th annual HDO event she took the position and opportunity very seriously. Her preparation came from many different aspects of her life, however in the recent past she served at chairperson of the Exhibit Booths. It takes a gifted person to pull together the high octane talents that are pulled into making the 2007 HDO a Success. Her oversight covered such items as chairing the many meeting, concerns and direction for the Opportunity Theater, a full Schedule of events, photo shots with exhibitors and leading speakers for the day. Then cast an eye in the direction of the Brokers Bus Tour, and the experts in areas of Demographics, Labor, Education, Transportation.

Along with the many duties of HDO that she gave her time and energy, Cheryl also spends her career time in investing. She believes in looking for the Highest and Best use of a property. She believes in creating and enhancing equity. She believes in doing what ever she touches with a thoroughness that would make most of us blush. She is a Realtor with the Keller Williams Realty Victor Valley Market Center under the leadership of Broker Brad Bodell, Operating Principal, Cindy Bostick, Team Leader.



Well there is always much more that could be said.



Thanks For reading.

You Made need to do Seller financing. What are some things that you should be aware of before you sign on the line.

Watch out for Seller Financing and the All Inclusive Trust Deed or Wraps.
Seller finance takes many forms--- one that is coming back is All inclusive Trust Deed, Wrap Around Deed. These are forms of Seller Financing. So many terms. But to the point Seller Financing in this market is very important and powerful. So I would like to write about Being a WRAPPER!. But First don't do this if you have any questions or hesitations about it. This article is not about why you should be a wrapper.



Why should you use and when should you use an All inclusive Trust Deed(? which commonly is often known as a Wrap Around Deed.) With the creative mortgages of the last few years having disappeared into the thin air. It is easy to predict that AITD's will resurface and be used widely.

What is an All Inclusive Trust Deed? It is like a grant deed which conveys the ownership of real estate from one person to another. It is junior or subordinate to other liens of record. It could be a Mirror AITD which means the aitd matches the numbers of the financing exactly.

What are the sellers responsiblefor? 1) responsible for any call on the note- acceleration- enacting of the due on sale clause. 2) responsible for payments, even when a collection (third party intermediary) is set up. 3) Responsible for prepayment penalties, Rate adjustments, balloon etc if any on the loan- therefore read the loan documents very carefully. 4) Responsible for any due date of the underlying loan wherein they fall due prior to the due date of the wrap.

What are the buyers responsibilities? 1 Maintain property within the guidelines of the agreement. If you cannot change the building on the property under the provisions of the wrap-then you can't. However, if you have purchased this property and disclosured you intention of higher and better use- then you can. 2) Pay insurance- additional to the insurance carried by the person named on the loan. Since you own the property, your insurance should cover the issue of fire or other applicable distruction. 3) Pay taxes, if these are set up in a impound account and included with the payment fine. 4) Make payments on time as directed by beneficiary(seller)- It is a good idea to have a third party make the payment notifying both seller and buyer that the same has been sent in a timely manner.

What are the Potention Hazards or Problems?: First) the Due on sale provisions- allowed by the contract there is a might/may enact the due on sale clause. The lender does not have to enact them. However the acceleration clause of the contract gives the Lender the right to call the full amount of the remaining part of the loan due with in thirty days. Acceleration is a demand payment of the total outstanding balance and is closely related to the idea of alienation clause because the property have 2) Interest rates higher on the underlying loan.- it is typical to charge a point additional on the wrap as profit to the seller. 3) Prepayment penalties, Balloon payments, Additional principal pay-downs and/or adjustable rates on underlying loans 4) No payments are made through escrow!! 5) Make sure insurance stays in the sellers name and get your own insurance to cover in the case of disaster. Then it is your policy that is affected since you are the owner of the property. 6) Seller does not make the underlying payments and forgets to tell you and the property goes into foreclosure and you are not aware of it. 7) Tax impounds



How do you put some safeguards into this situation? First REQUEST for Notice of Default for ALL Loans both the underlying and the wrap itself for benefit of both the buyer/borrower and the seller/beneficiary. 2) put together a collection account for payments. Due on Sale clauses are not normally built into most AITD and Deeds of Trust. Do not presume that one does or does not belong. Ask questions and get instructions as to whether or not the parties agree to a Due-on-sale provision.

It is true the doing this aitd and doing a quit claim deed may leave a cloud on the title. That would require an affivadit from the person conveying or it might even require a quite title action from a judge.


Now to the part we all want--- What are the Advantages to both the buyer and the sellen in the use of the All inclusive financing??

Look for my next article on that. If you have read this far you are a hero and a star

I will be using this approach to making more deal in the High desert, and most recently I am looking to do this in the city of Hesperia.

Val Rensink Exit Desert Ocean Realty ExitDOR.

Spot light on Community Development Technician
If you meet her, she is a little shy in manner, has that behind the counter control of the situation. Brenda Simmons is a capable Planning Tech for the City of 29 Palms.

She brings a wealth of experience and a clear understanding of zoning, maps, history that impacts and what the local politics is looking for and not looking for in development.

As I visited her on Sept 21, 2007 the issues ranged from zoning to planning to 500 year flood plan to preserving our night sky.

Preserving Our Night Sky- Light Polution, Low Sodium Lights and fully shielded. Purpose? the preservation of the night sky to enchace the view of the stars in the evening is identified as a comminity asset to the City's General Plan. Concern? The proliferation of unshielded ights in the community erodes thenight sky so the City has extablished procedures to require shielding.

Zoning: The area I came to look at is a multi family zoned area with a specific overlay. Its zoning designation is RM Mutiple Residential. That means its purpose is create and enhance and preserve areas where two or more dwelling units on the same lot are predominant. This zoning also meets with the need for a range of housing in the area.

Redevelopment Agency: This agency was established in 1993. It is allowed for under the California Community Redevelopment law. The power of this law is the issue of incremental property tax revenues which are collected. It then uses these gained revenue to eliminate blight and improve targeted areas.

Recent politics: On the City Council Mr. Kevin Cole has accepted a position to the Parks and Recreation department and therefor must resign his position on the City Council. No Drama just a good move.

Then the Flood. There are control channels for flooding. In the year 2003 there was a major flood. One of the channels was 12 feet deep in torrenting water. Earthen walls simply erode under the impact of this force. A car with Three people did not judge the depth of a crossing (6th in depth) and was swept away and all died.

What is the criterea of a 500-Year Flood Plain? It means that there is a 0.2% chance of being flooded in any given year; 6% chance of flooding during a 30-year period

compare that to a 100-Year Flood Plain: 1% chance of being flooded in any given year; 26% chance of flooding during a 30-year period. This does effect buidling codes and set backs and insurance.



Any way I had a wonderful Time with Brenda.



Thanks For Reading

Val Rensink Exit Desert Ocean Realty