There is a new bill currently making its way through the California State Assembly – AB 1511.

AB 1511 would make it mandatory to disclose if any residential property is located within 2,000 feet of a gas transmission or hazardous liquid pipeline as depicted in maps by the National Pipeline Mapping System (NPMS) and Geographic Information Systems (GIS) data made available by the federal Pipeline and Hazardous Materials Safety Administration.

Currently gas transmission and hazardous liquid pipelines are NOT required by law to be disclosed as a part of natural hazard disclosure.

So what do you think? What might be the pros and cons of such a law. Comment below. you can also read more about this bill here.

GFCI stands for Ground Fault Circuit Interrupt. These are the circuits in your home with the black and red buttons on them that make a snapping sound when the circuit has been tripped. You will usually find them in the bathroom, kitchen and on exterior outlets.

So how come I need to have them in my home you might ask. Well, they are there for a few very important reasons. A GFCI, according to the National Electrical Code, is defined as “A device intended for the protection of personnel. A GFCI functions to de-energize a circuit or portion thereof within an established period of time when a current to ground exceeds some predetermined value that is less than that required to operate the over-current protective device of the supply circuit.” (NEC 1996, Art. 100)

A Ground fault can be defined as a “fault” to “ground.” This occurs when either of the current-carrying conductors on the circuit becomes inadvertently connected to ground. Examples of this are: Insulation failures in the wiring of buildings or damaged appliances, tools, extension cords; misuse of devices; wiring errors, etc. Some people call this condition a “short” to ground. A GFCI unit is supposed to sense when this occurs, and “interrupts” the circuit by turning it off.

The ground fault circuit interrupter was designed for safety reasons. It has a sensing device that monitors the amount of current flowing through the conductors of the circuit. As long as the circuit conductors have equal amounts of current flowing through them, i.e: the amount flowing “out” is the same as what is “returning” the circuit is maintained. When more current flows out, than returns, there is a “fault” or “leakage” of current from the circuit. The GFCI senses the imbalance in the circuit, and “trips” thereby interrupting the current flow, and causing your hair dryer to quit.

To illustrate, suppose the hot (ungrounded) wire inside of a toaster touches the metal casing. If you came along later and touched the casing while grounded, current or electricity, would now flow through you (you are getting shocked). The GFCI would detect that the current returning from the toaster is less than the current going to the toaster and would trip before a fatal shock occurred, thus protecting your life.

A Short summary of the history of GFCI protection for your Home and where these devices are required to be installed, and are called out by you Home Inspector:

1971: Outdoors (direct grade access), & within 15 feet of a swimming pool.
1975: Bathroom receptacles.
1978: Garages, Fountains.
1981: Whirlpools, tubs, etc.
1984: Motels in bathrooms; replacements for non-grounded type.
1987: Kitchens within 6′ of the sink, (1) in a basement; boathouses.
1990: All in unfinished basements; crawl spaces.
1993: Wet bar sinks; Replacements in other required areas.
1996: All kitchen counter-top outlets; dedicated circuits in bathrooms; All outdoor outlets, in sheds, balconies, whether accessible from grade level or not; Electric car chargers.

On Monday, March 12th, the proposed Settlement documents were filed in Federal Court revealing what each of the Lenders is required to do. You can read the details at http://nationalmortgagesettlement.com/.

How they’ll meet those obligations is critical to upside down homeowners. Those details are slowly emerging through analysis, press-releases, and side deals.

Here’s what you need to know so far:

1.  The Lenders – the Settlement ends lawsuits by the Federal Government and State Attorneys General against:

(1)  Bank of America

(2)  Wells Fargo

(3)  JP Morgan Chase

(4)  Citigroup, and

(5)  Ally Financial (formerly GMAC).

2.  The Settlement – requires the 5 Lenders to collectively provide up to $25 Billion in relief to distressed borrowers and payments to government agencies.  This will be provided through a combination of direct cash payments and credits for debt reduction and other loan adjustments.  The individual lender shares are:

Lenders                                             Pmts. to Gvt           Debt Reduction                Total              

(1)  Bank of America:                          $3.24 Billion           $8.58 Billion                       $11.82 Billion

(2)  Wells Fargo:                                  $1.01 Billion            $4.34 Billion                       $5.35 Billion

(3)  JP Morgan Chase:                        $1.08 Billion           $4.21 Billion                        $5.29 Billion

(4)  Citigroup:                                       $415 Million           $1.79 Billion                        $2.21 Billion

(5)  Ally Financial (form. GMAC):    $110 Million           $200 Million                       $310 Million

3.  The Allocations – The Settlement requires the Lenders to provide the relief through three broad categories:

(1) Foreclosure Assistance Payments – paid to State and Federal Govenerment agencies to fund and/or reimburse their various borrower assistance programs.  The agencies get to use these funds as they see fit;

(2) Consumer Relief Programs – These funds are not actually “out-of-pocket” payments.  Rather, the Lenders will receive “credits” against this obligation in exchange for principal reductions on existing loans.  These will be made in two different categories:

(a)  1st Lien Principal Forgiveness – they will receive “credits” against their Settlement obligations for each $1 of debt forgiveness on loans. The amount of the credit will likely vary based upon the loan to value (LTV) ratio involved.  A minimum of 30% of the credits must be allocated to principal forgiveness on loans with an LTV of 175% or less.

 (b)  2nd Lien Principal Forgiveness – Lenders will receive a sliding scale of credits based upon the delinquency of the borrower with the least delinquent loans receiving the highest credits. Presumably, those who are not delinquent at all on their 2nd loans will get no relief.

 (3) Loan Refinancing – These funds will be used to assist debtors in refinancing their existing loans. Credits are likely to be based upon a formula that factors: (1) new interest rate compared to old interest rate; and (2) amount of debt forgiveness involved. So, each loan can bring a different result.

4.  The Side Deals – The Settlement is very complex and the devil will be in the details since each lender can map out exactly how it plans to satisfy its allocations.  See my recent Blog on the Wells Fargo roadmap for an example of that Lender’s plans. However, already participating lenders are cutting “side-deals” to obtain a better result by offering even better settlement options:

a.  Bank of America – announced deeper principal reductions for about 200,000 homeowners, up to $100,000 each.  In exchange, they will avoid up to $850 Million in penalties.  BofA has also announced that it is temporarily halting foreclosures while it identifies and solicits the potential beneficiaries of these reductions.

b.  Ally Financial – announced possible principal reductions to current market value.  Further, some borrowers in extreme financial distress may get reductions to 85% of their home’s value.

5.  What to Do Now – Although the Settlement terms must still be approved by a Federal Judge, if you are in financial distress and in danger of losing your home, contact your State Attorney General’s office for information and contact links with the specific lenders.  The California AG’s website for the National Settlement is at http://oag.ca.gov/nationalmortgagesettlement and has internet and/or phone contacts for each of the participating lenders.  Don’t expect immediate relief.  The Settlement is a process that still requires Court approval, will take several months to get organized, and will take up to three years to fully provide benefits.  But, it does promise substantial relief for those who qualify and diligently pursue the available benefits.

Meanwhile, if you or someone you know is struggling with an upside-down property in California and don’t know what to do, I’d like to help, I can offer the knowledge of what to expect and help guide you to form strategies to either keep the property or move on with as little financial risk as possible. To schedule a consultation, please contact our office at 916 283-7956.

The information presented in this Article is not to be taken as legal advice. Every person’s situation is different. If you are upside-down on your loan, especially if youre facing a lender lawsuit, get competent legal advice in your State immediately so that you can determine your best options.

DRE 01438657

Here is more news you can use:

The “foreclosure wave” many predicted at the end of last year is beginning to look more like a drought, as foreclosure sales dropped significantly in February. Although sales to 3rd Parties, typically investors, were down month-over-month, as apercentage of all sales 3rd Parties purchased a record 37.6 percent of foreclosures, up from 20.3 percent a year earlier, and just 2.2 percent in February 2008.

Further eliminating any possibility of a foreclosure wave for months to come, was a substantial drop in new foreclosure filings in California, Nevada, and Washington. Arizona saw a modest increase in foreclosure starts, while Oregon jumped a dramatic 39.4 percent. Despite the size of the increase, it simply offset a drop in January, and showed little change in comparison to earlier months. Nevada remains far below the average number of foreclosure starts; and the dramatic changes to their foreclosure laws will likely drag out the Nevada foreclosure process for years to come.

Unlike years past, February’s drop in sales was not due to the short month. Thanks to the Leap Year, California had only one less business day than usual in February (because of the Abraham Lincoln’s birthday observation). The other states do not observe Lincoln’s birthday, and so had the same number of business days as other months.

Are you looking to buy foreclosures? Would you like a list of homes that are available now as foreclosures or how about a list of homes scheduled for auction? I would love to help.

Call me today for all your buying, selling, real estate needs.

Scott Ivey, 916-283-7956

DRE: 01438657

A credit bureau based credit risk scoring model, more commonly known as a credit score, is a numeric representation of your credit risk based on a review of the information in your credit file. The score is generated by a sophisticated credit scoring model, which is made up a series of complex algorithms. The most common credit scoring model is the FICO credit score, designed and developed by Minnesota based FICO (formerly Fair Isaac Corporation and more formerly Fair Isaac and Company.)

The FICO scoring models are converted to software and installed on the computer systems of all three of the major credit reporting agencies; Equifax, Experian and TransUnion. The credit bureaus then use the software under a licensing agreement with FICO to score their credit reports and sell the resulting scores to lenders, insurance companies and others who have a need for the number. The credit bureaus pay FICO a royalty for each score that is sold.

The FICO scoring system is not owned or controlled by the credit reporting agencies. They are simply the distributor.
Despite myths to the contrary, each of the three bureaus has a FICO score developed specifically for them from a sample of credit reports, which they provide to FICO. The FICO score at Equifax is called BEACON. The FICO score at Experian is called The Experian/FICO Score. And, the FICO Score at TransUnion is called FICO Risk Score Classic (formerly EMPIRICA).

FICO rebuilds each of their scoring models roughly every 24 months and then installs the newer version at the bureaus. The older version/s are not decommissioned as it takes years for a newer model to be fully adopted by the industry. In fact, there are still major credit card issuers that are using FICO scoring models that were built years ago.

If you are interested in what your FICO score is, beware. There are many sites that offer “Free” credit reports but will try to sell you into paid subscription services.  At AnnualCreditReport.com, you can get a free copy of each of your credit reports once each year. In just a couple minutes, you can see how your credit is, but only once a year. Then there’s a site called CreditKarma.com that allows you free access to both your credit report and your credit score. CreditKarma does this routinely; it’s not just once a year.

Realty Times – 30-year Fixed-rate Mortgage Averages 3.90 Percent.

There has never been a better time in my lifetime for you to buy a home. No kidding. The opportunity is extreme. If your situation fits, don’t miss the opportunity.

Extreme home buying opportunities abound | www.clarkhoward.com.

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As reported in DSNews.com, government officials have announced changes to the administration’s Home Affordable Modification Program (HAMP) which are expected to extend relief to a larger share of struggling homeowners as well as renters, according to federal officials. One of the key adjustments to the program centers around principal reductions. HAMP currently includes an option for servicers to provide underwater homeowners who are struggling with their payments with a modification that includes a principal writedown. To encourage investors to agree to principal reduction modifications, Treasury is tripling the incentives for such restructurings, paying from 18 to 63 cents on the dollar, depending on the degree of change in the loan-to-value (LTV) ratio.

As we’ve often seen in the market, Fannie Mae and Freddie Mac remain obstacles to both loan modifications and short sales by refusing principal reduction in loan modifications and restricting short sale contrbutions to junior lenders.  Since these two GSE’s own or guarantee up to 80% of all residential loans, they have a significant effect on market recovery.

The Federal Housing Finance Agency (FHFA) has prohibited Fannie Mae and Freddie Mac from employing HAMP’s principal reducing option for their borrowers. Treasury has notified FHFA that it will pay these same principal reduction incentives to Fannie and Freddie if they allow servicers to forgive principal in conjunction with a HAMP modification. FHFA issued a statement in response noting that it recently released analysis concluding principal forgiveness does not offer any greater benefits than principal forbearance as a loss mitigation tool. But the agency says it will reassess the investor incentives now being offered, taking into consideration the number of eligible loans, operational costs to implement such changes, and the potential effects of incentivizing borrowers to remain current.

Among the other changes announced, borrowers who are struggling because of debt beyond their mortgages, such as second liens and medical bills, will be eligible for an alternative program evaluation with more flexible debt-to-income criteria. In addition, Treasury will expand eligibility to include investor properties that are currently occupied by a tenant as well as vacant properties slated for rental use. Tim Massad, Treasury’s assistant secretary for financial stability says single-family homes serve an important function as affordable rental housing, and foreclosure of investor-owned homes has disproportionate negative effects on low- and moderate-income renters, as well as communities.

The deadline for HAMP will be extended for an additional year through December 31, 2013. Time will tell whether this change actually yeilds results. Meanwhile, if you or someone you know is struggling with an upside-down property and don’t know what to do, our Consultation Program can offer knowledge of what to expect and form strategies to either keep the property or move on with as little financial risk as possible.  To schedule a Consultation, please contact our office at 916-283-7956.

Scott Ivey is Realtor and Team leader with Connect Realty, for additional information on what I do for families, please visit my home page at http://www.scottivey.net.

You may also  join me on Facebook by clicking here.

Scott Ivey

Thinking about a career in Real Estate? Want to kick your current career into high gear? Visit DiscoverConnectRealty.com

The information presented in this Article is not to be taken as legal advice. Every person’s situation is different. If you are upside-down on your loan(s), especially if you’re facing a lender lawsuit, get competent legal advice in your State immediately so that you can determine your best options.

Here is a wonderful article I read concerning Life Settlement Investing with a Self-Directed IRA by Munzer Ghosheh, who is the Business Development Manager for The Entrust Group

The life settlement market has burgeoned into a $20 billion industry and according to Bernstein Research, is on track to exceed $160 billion over the next few years. For those who are unfamiliar with it, a life settlement transaction is the sale of an existing life insurance policy to a third party for more than its surrender value, but less than the net death benefit. Many seniors are taking advantage of such transactions instead of traditional life insurance policies. It enables them to sell their policy in a life settlement transaction for cash today, rather than wait and have their beneficiaries collect the proceeds once they pass away.

A life settlement investment entails buying into the beneficiary interest of a policy or policies and experiencing the return on investment just as a beneficiary in any life insurance policy would receive the payout. This unique investment tool is available to both small and large investors. They may utilize non-qualified/cash funds or qualified retirement account monies held within an Entrust self-directed IRA to fund the investment. This type of investment can serve as a defensive strategy because the return is relatively immune from the negative effects of a slow economy, stock market volatility, interest rate fluctuations, the softening of the real estate market, soaring oil prices, unexpected geopolitical events, etc. The integrity of the investment is further protected as the payout comes from some of the largest, most reputable, financially sound insurance companies in the world.

When considering potential alternative investments within a retirement plan, one might consider life settlement investments as an option. The rapid growth of this industry stems from the fact that the investment allows for a win-win scenario where the senior is allowed to access hidden assets and the investor diversifies away from a traditional investment portfolio. To learn more about this unique investment opportunity, contact your local Entrust office for more information.

By Munzer Ghosheh

Munzer Ghosheh is a Certified IRA Services Professional and Business Development Manager for The Entrust Group – Los Angeles, a premier provider of self-directed retirement plans. He can be reached at mghosheh@theentrustgroup.com or 310-899-3811.

Scott Ivey is Realtor and Team leader with Connect Realty, for additional information on what I do for families, please visit my home page at http://www.scottivey.net.

You may also  join me on Facebook by clicking here.

Scott Ivey

Thinking about a career in Real Estate? Want to kick your current career into high gear? Visit DiscoverConnectRealty.com