Real Estate Experts Weigh In On Mortgage Settlement

Real Estate Experts Weigh In On Mortgage Settlement


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{fonttblf0fswissfcharset0 Helvetica;} {colortbl;red255green255blue255;}
margl1440margr1440vieww9000viewh8400viewkind0 pardtx720tx1440tx2160tx2880tx3600tx4320tx5040tx5760tx6480tx7200tx7920tx8640qlqnaturalpardirnatural f0fs24 cf0>>Joanne: LAST WEEK GOVERNMENT
OFFICIALS AND FIVE MAJOR BANKS REACHED A SETTLEMENT OVER THE
BANKS DECEPTIVE FORECLOSURE SETTLEMENTS.
JOINING ME TO TALK ABOUT WHAT IT MEANS TO HOME OWNERS HERE ARE
VINO PAJANOR AND MATT BATTIATA, CEO OF THE BATTIATA INVESTMENT
GROUP. BATTIATA HAS BEEN A UNDERWRITER
FOR KPB. HOW WILL THIS BE BROUGHT TO
PRINCIPAL AND COMPENSATION FOR THOSE FORECLOSED ON.
>>THERE IS UP TO $20,000 FOR PRINCIPAL WRITE DOWNS FOR
MILLION HOME OWNERS ON A NATION AL LEVEL.
IF YOU’RE UPSIDE DOWN ON YOUR LOAN YOU COULD GET A
20,000-DOLLAR PRINCIPAL WRITE DOWN.
IF YOU HAVE GONE THROUGH FORECLOSURE THE BANK WILL
COMPENSATE UP TO $2000 IF YOU WERE ILLEGALLY FORECLOSED ON.
THE REST OF THE MONEY IS USED FOR DEBT WRITE OFFS IN SHORT
SALES. THAT’S WHERE WE EXPECT THE
$20 MILLION TO GO. page WRITE OFFS TO THE BANKS FOR
SHORT SALES.>>Joanne: LET’S GO BACK TO THE
20,000-DOLLAR PRICE PRINCIPAL REDUCTION.
THAT DOESN’T SEEM LIKE A LOT HERE.
>>NO THE AVERAGE HOMEOWNER ON A NATIONAL BASIS SUP SIDE DOWN BY
ABOUT 60,000. HERE IN SAN DIEGO IT’S AT LEAST
A HUNDRED THOU. A 20,000-DOLLAR PRINCIPAL
REDUCTION, IT’S NICE, BUT WON’T MAKE ANYONE STAY IN A HOME THEY
WOULDN’T OF STAYED IN. IT’S KIND OF A DROP IN THE
BUCKET.>>Joanne: VINO, DO WE KNOW WHO
WILL BE ELIGIBLE FOR THE PROGRAMS.
>>FOR THE HOME OWNERS ILLEGALLY FORECLOSED ON.
WE’RE LOOKING AT A NUMBER BUT WE DON’T HAVE THE EGG ILLIBILITY
REQUIREMENTS. THE BANKS HAVE BEEN ASKED TO
COME UP WITH THAT. IT WILL BE AWHILE BEFORE THE
BANKS STARTS COMING UP WITH THIS INFORMATION FOR US TO IMPLEMENT.
AS FAR AS WE KNOW SOME OF THE REQUIREMENTS ARE PUBLIC
KNOWLEDGE. RIGHT NOW YOU HAVE TO HAVE AN
INTEREST RATE OVER 5.25 TO BE ELIGIBLE.
IF YOU HAVE HAD ISSUES IN THE PAST YOU SHOULD HAVE OF
DELINQUENCY PAYMENT IN THE PAST. THERE ARE REQUIREMENTS BUT WE
DON’T KNOW THE EXACT DETAILS. THEY’RE BEING WORKED AT AS WE
SPEAK.>>Joanne: MATT, YOU MENTIONED
SHORT SALE. YOU’RE UNDER WATER AND THE BANK
ALLOWS TO SELL IT FOR LESS. WHO BENEFITS FROM THE LOSS
ABSORBED? page THE BANKS OR HOME OWNERS.
>>THE BANKS ABSORB THE LOSS. A LOT OF THE $25 BILLION WILL GO
TO WRITE OFFS.>>Joanne: IT GOES BACK TO THE
BANK?>>YES THE BANKS ARE WRITING OFF
THE MONEY. IN A LOT OF CASES THE BANKS ARE
THE SERVICER. THERE ARE INVESTORS THAT OWN THE
MONEY. IN MOST CASES YOU HAVE A LENDER
YOU SEND THE PAYMENT TO THEY’RE THE SERVER.
THERE IS A INVESTOR BEHIND THEM FROM THE STOCK MARKET, FOR
EXAMPLE, THAT OWNS THAT LOAN. THAT’S WHO YOU REALLY OWE THE
MONEY TO. IN A SHORT SALE THE BANK WRITES
OFF THE DEFICIENCY. THAT’S A SHORT SALE.
>>Joanne: VINO, ARE YOU GETTING A LOT OF CALLS AT YOUR OFFICE?
>>YES. AM I HE WILL I I BELIEVE?
WHERE DO YOU FIND OUT IF I’M ELIGIBLE OR NOT.
I THINK I’M FORECLOSED ON ILLEGALLY, WHERE DO I FILE A
COMPLAINT. WE’RE ASKING THEM TO TAKE THE
TIME OFF ON A SATURDAY AND COME TO A HOME CLINIC.
THERE ARE COUNSELORS TO DO ANNA ASSESS.
FOR FREE. THEY’RE NOT SUPPOSE TO CHARGE A
HOMEOWNER, IT’S ALL FREE. WE HAVE PRO BONO ATTORNEYS FROM
THE SAN DIEGO BAR AND STATE BAR WHO ARE LICENSED TO SEE IF YOU
HAVE AN OPTION TO FILE A COMPLAINT WITH THE AG OFFICE.
THE AG WANTS TO TAKE THE COMPLAINTS FROM THE HOME OWNERS
TO TAKE ANNA ASSESS. THOSE FORECLOSED ON DURING THE
ELIGIBLE PERIODS HAVE CLAIMS page AGAINST THE BANKS.
>>Joanne: BEFORE WE GO, MATT N YOUR VIEW, WILL THIS HELP
STABILIZE THE HOUSING MARKET IN SAN DIEGO.
>>NO. I DON’T THINK IT WILL HAVE ANY
IMPACT ON THE MARKET IN SAN DIEGO COUNTY.
WE HAVE 35-50 PERCENT OF HOMES UPSIDE DOWN.
YOU HAVE A HUGE NUMBER OF PEOPLE IN HOMES UPSIDE DOWN THAT THEY
CAN’T AFFORD. THERE ARE A HUGE NUMBER OF
PEOPLE WHO OWE AT THE PEEK LEVELS FROM 2004-2005, UNTIL THE
MARKET BOTTOMS OUT AND COMES BACK TO THE PEEK PRICE THAT’S
WILL TAKE QUITE AWHILE. UNTIL THESE PEOPLE GET OUT OF
THE HOMES THEY CAN’T AFFORD THE MARKET CAN’T STABILIZE.
YOU KNOW THIS IS, THIS 25 BILLION-DOLLAR SETTLEMENT.
IT SOUNDS LIKE A LOT OF MONEY BUT IT WON’T HAVE A HUGE IMPACT.
THE BANKS WILL CONTINUE TO DO LOTS OF SHORT SALES.
THAT’S THEIR ALTERNATIVE TO FORECLOSURE.
I DON’T EXPECT THEM TO DO ANYTHING SIGNIFICANT IN
MODIFICATIONS.>>Joanne: MATT BATTIATA, VINO
PAJANOR, THANK YOU FOR BEING HERE.
>>THANK YOU. }

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