Will Your Bank Make Your Mortgage Payment if You Lose Your Job?

According to Shannon Spangler, our in-house lender rep (Bank of Amercia), B of A has a home protection policy that will make a home borrowers mortgage payments for up to 12 months - FREE. That's right, you don't have to purchase the policy and it covers you for the first 12 months.

Buyers thinking about buying a home, but worried about possible job cuts, should check out this Bank of America home Protection Plan

Bank of America's Brand - Shelter in the Storm

Worried consumers are looking for a safe haven for their deposits  and Bank of America is clearly benefiting from the flight to safety. Troubles at IndyMac Bank, Washington Mutual, Wachovia and others helped Bank of America to increase it's consumer base.

HarperMees & Associates met with Harold Michaud, Area Manager & Senior V.P. for Bank of America, yesterday at the Keller Williams Realty offices in Danville, CA. Keller Williams Realty in Danville & Walnut Creek recently chose Bank of America to to be their "in-house lender." Businesses are also looking for safety & stabiity.

I asked Harold Michaud what was the foremost message he would like to get out to worried consumers - "Bank of America is Funding Loans."

Bank of America has the largest underwriting base in the United States and Harold Michaud wants consumers to know that B of A's doors are open to consumers looking for shelter from the storm.

• Washington Mutual (WaMU) announced yesterday that it will be laying off 1600 employees in Pleasanton (1200) & San Francisco.
• About 40 percent of Bay Area companies intend to chop jobs during the coming six months, according to a new survey of local executives released Thursday.

Get our FREE In-Depth Marekt reports - updated weekly, breaking data down by zip code and price point.

Contact Paul for more information on how foreclosures are impacting East Bay home prices (925) 963-4246

REOs – bank owned properties – are on the rise nationwide and California is leading the way. According to reports, California has led the nation in foreclosure filings for 15 straight months.

Real Estate Owned properties are houses which do not sell at foreclosure auctions. When houses are returned to the bank, the mortgage is eliminated and the bank negotiates with creditors to remove or reduce liens.

The 680 corridor from Walnut Creek to Pleasanton is one of the most stable real estate markets in the country, but that doesn’t mean that communities like Alamo, Danville and San Ramon are immune to the foreclosure problems.

The big lenders like Bank of America, Countrywide, IndyMac and others are ramping up their foreclosure and REO efforts to help homeowners in trouble and expedite the process.

Three perspectives to the foreclosure/REO situation:

• Homeowners in trouble – need help with restructuring to save their homes or expedited processes that help them move quickly through the difficulties and challenges with as little damage to their financial future as possible.
• Investors – individuals looking to invest in REOs and foreclosures will benefit from expedited procedures.
• Communities – neighborhoods like Danville and San Ramon will benefit by reducing vacant homes in the area and the quicker the inventory is moved, the sooner property values can be freed from the negative impact of REOs in the area.

Countrywide Mortgages Foreclosure Blog  indicates that they currently have over 14,000 properties available representing almost $3 billion of property – $1.3 Billion in California.

Financing REO properties in Danville and San Ramon is the same as any other investment property. Plan to contribute at least 10% or more toward the down payment. Do your due diligence to properly cash flow your investment; with this you will be able to weather any market volatility in the future.

These three news items should be of interest to home sellers and buyers in the TriValley area (Danville, San Ramon, Dublin, Pleasanton).

State contractors board warns of scam – The California Contractors State License Board has issued a warning to consumers about electrical repair companies operating in metropolitan areas that are pressuring customers into unneeded repairs.

Bank of America Cuts Fees For Its Home Loans – Looking to boost market share when loan demand has slowed, Bank of America Corp. has rolled out a no-fee mortgage aimed at home buyers.

C.A.R. Red Alert Update

Home buyers at risk: SB 670 Defeated in Committee

SB 670 (Correa), C.A.R.’s sponsored “Private Transfer Tax Prohibition” bill was defeated today by the Senate Transportation and Housing Committee today. The legislation would have protected consumers by placing responsible restrictions on private transfer taxes levied by developers and limiting the proceeds to environmental and affordable housing efforts related to the new development on which the private transfer taxes are imposed.

Currently, there are no restrictions on where or how proceeds from private transfer taxes can be spent; no accountability or oversight of the recipients of the private transfer tax funds; no limits on how long a private transfer tax may be imposed; no limits on the amount of private transfer taxes that can be imposed on home buyers; and no clear mechanism for disclosing the existence of a private transfer tax obligation to home buyers.

"We are extremely disappointed that SB 670 failed to make it out of committee today,” said C.A.R. President Colleen Badagliacco. “Home buyers in California deserve better. Private transfer taxes can add more than $10,000 to the cost of a home, with no upward limit on how much developers can charge unsuspecting consumers.

Note: As it now stands, a developer can attach a private transfer tax to the sale of a new home and if they are so inclined, can use those funds for anything – including their kids college education. Also, there is no limit on tax – everytime the property changes hands, the tax is accessed again.