4/01/2020

Mortgage FORBEARANCE Cares Act

The Cares Act Does Not provide Guidance for Servicers or Owners or Trustees of Mortgage Notes, yet 



Keep in mind that forbearance does not mean forgiveness of debt. This is not a modification. This is not debt forgiveness. This is not reducing the balance. In fact they can charge you fees. In fact they can create a balloon due. In fact they can foreclose when this is lifted.









Only government loans guaranteed by Fannie Mae, Freddie Mac, USDA, and FHA will even think about offering forbearance. If you already are rolling late payments Chase for example has sent you to the punishment unit: Specialized Loan Servicing. All the big banks have their unit they spin off mortgage loans where the borrower is difficult, slow payment record, and they police like politsiya.

 The owner, investor or trustee who owns the note has a say in how or what kind of delayed payment agreement they might offer. One can assume there will be tiered deals depending on the amount of equity in your real estate, the payment record, the location of subject property and how hard the economy is hit in the subject property surrounds.

It's going to be difficult to track what a servicer offers to Borrowers and I assume none of it will be a level playing field, and this we won't see until 2023. They may offer borrowers to pay half for three months, then double down for three. They may offer borrowers to pay some reduced amount then it will be all due and payable in a year. Borrowers must understand they need to have an exit strategy ready at the date of the balloon or acceleration.

 This pandemic may continue for more than a year. Finding a replacement job at the same pay scale may not be realistic in six months or a year. Renting a room to increase your monthly nut may not be a healthy choice as this brings into your home more opportunities for the virus to be carried inside. Values will certainly decrease, the equity in the home may not exist in a year. Location weighs heavy on the decision making.

As we saw in the crash of 2008 and 1990 property values came back for single family in coastal and desirable employment areas in two years but not so for condominiums and inland. Each borrower situation is unique and not easy to make the choice. If you intend to call your servicer
(Ocwen MR Cooper or the bank...) you must say the word coronavirus and ask for a forbearance package. Once you receive it in writing get some advice as to the best course of action.

I keep you all in my prayers.
If you haven't refinanced and  gotten rate down to the 3's - let's talk.

C G
NMLS 324982

(949) 784-9699

here is the cares act

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3/30/2020

My Victory Garden


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My tip of the day
I love to garden and like many I forget to put the gloves on before I pull that first weed.
Once you start pulling, there's no end to the work.
Since Coronavirus I'm washing my hand more frequently. This is a nice solution to
having dry hands.
After you squeeze your orange juice or lemons. Save the peel and pith.
Wash hands with soap then dog your fingernails into and through the white pith to
the oily skin. The oils in the citrus deep clean your nails, it smells wonderful and
you will find your nails cleaner and the hands smell like the blossoms in summer.
Also a great way to get rid of the smell of garlic on your fingers after chopping



3/19/2020

California Real Estate With Covid-19


Appraisal Delays Due to COVID-19
Shelter Desk At Home?

Appraisal RAC or AMC ordering companies should be setting in
place policies to work from home. Houston We Have a Problem.           
My corporate office has all the operations and loan officers working from home which is not a problem BUT many pieces of a home loan are done in person.


Due to the increasing confirmed cases of COVID-19

Mandated self-quarantine may cause delays:

Appraisers and homeowners who have or have not been in contact with COVID-19 are under self-quarantine.  California, and other states to soon follow, issued a mandatory self-quarantine for members of the community who are age 65 and older.  Please be aware that this will impact many appraisers who will no longer be able to complete inspections, either because of their age or the age of one or more residents living at the property to be inspected. The average age of an appraiser is 65. 

Orders in certain counties are on hold:
In response to the spread of COVID-19 cases in the state of California, a legal order of Shelter in Place has been issued, prohibiting non-essential business for the following counties - Alameda, Contra Costa, Marin, San Francisco, San Mateo, Santa Clara, Santa Cruz, San Benito, Monterey, and the City of Berkeley, which has its own public health division.  Unfortunately, all appraisal orders in these counties that have not yet been inspected will temporarily be placed ON HOLD.

Set realistic expectations in regard to turn times, fees, and logistics. We will do the same for you. Together, we can maintain a great customer experience by ensuring everyone is informed, adaptable, and communicating along the way! Do not make short closing contracts that involve a mortgage with appraisal. 

Good news- refinances are often not needing an appraisal.

Other news:

County recorder offices are shut down in almost all Northern California counties
Many are not allowing erecording such as Santa Clara.

Riverside, San Bernardino, San Diego, and Orange Counties were open for erecoding only this morning. 

Kings County (small office of few) is open from 11- 1 for walk ins and over the counter
This is going to make for some creative solutions.
What are you fixes?
I have a few


3/09/2020

Lemonaid Mortgage




Financial markets are dark sky.  Coronavirus scare dominates the news.

Dow off 1700, Ten Year at 0.50%. Oil price war, etc. oh my I need another gallon of isoprophyl alcohol to wash everything... Life gives lemons...

I'm mixing my Refinance Lemonaid Recipe:
or Lemonade depending on your spelling
 3 fresh lemons from my garden,
 15 sprigs of lavender flowers,
 3 teaspoons sugar,
 1 teaspoon real honey, 
1/2 gallon of water and ice. 
Pour into your prettiest glass. 
Start your loan application. 
Absorb the Vitamin C- when you close I'll give you organic citrus only fed water and sunlight.

No-one knows what’s going to happen but the majority of us will be fine, in fact we will be great.

It's only paperwork to get a mortgage loan. Get the pdf copy of your w-2 2019 and 2018 in a little file folder, then download pdf copies of last two bank statements and put in the folder; do you have online Human Resources? download those last 30 days pay stubs or scan them. Get the mortgage bill and just the bill page of fire insurance, then driver's licenses and you have 95% of it.
If self employed - let's talk with your CPA and have him her send everything. Even on a bank statement loan without taxes you will get a lower payment. No shaking hands, all done from home.

Saving a hundred, two hundred or three hundred dollars a month is worth while!  And we get to reconnect and talk for three weeks. I'll do a check up on your insurance, life insurance, 529 Plan, fix your credit and talk about my favorite handyman.

Times are volatile. Rates are going to swing wild as banks get busy and push rate locks out 45 and 60 days which costs more. Try an do a no points loan so there isn't so much juice in the squeeze.

I’d personally lock at 3.5%, rather than trying for 3.375% and ending up at 3.75%.

Here’s a great article from Housing Wire that explains how lenders are dealing with the volume challenge:


 Come on down my orange and lemon trees have lots of fruit 
Let's make LEMONADE
Pinnacle Home Loans – With you in mind… 
(949) 784-9699
C G Barbeau Caroline Gerardo Barbeau 
NMLS 324982


Peach tree blooming this week

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