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	<title>South Bay Home Buying</title>
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	<link>http://aboutfirsttimehomebuying.com</link>
	<description>Redondo Beach Homes, Torrance Homes, Buying a Home, First Time Homebuying</description>
	<lastBuildDate>Mon, 21 Jun 2010 23:01:22 +0000</lastBuildDate>
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		<title>Energy Efficiency Rebate Program</title>
		<link>http://aboutfirsttimehomebuying.com/?p=492</link>
		<comments>http://aboutfirsttimehomebuying.com/?p=492#comments</comments>
		<pubDate>Mon, 21 Jun 2010 22:59:58 +0000</pubDate>
		<dc:creator>LesleySiegel</dc:creator>
				<category><![CDATA[Featured]]></category>
		<category><![CDATA[Green Living]]></category>

		<guid isPermaLink="false">http://aboutfirsttimehomebuying.com/?p=492</guid>
		<description><![CDATA[Do your clients know that more than 70% of the energy used in our homes is for appliances, refrigeration, space heating, cooling, and water heating? Replacing old appliances and equipment with those that are ENERGY STAR labeled can help American families save significantly on their utility bills. Each state and territory has selected its own [...]]]></description>
			<content:encoded><![CDATA[<p>Do your clients know that more than 70% of the energy used in our homes is for appliances, refrigeration, space heating, cooling, and water heating? Replacing old appliances and equipment with those that are ENERGY STAR labeled can help American families save significantly on their utility bills. Each state and territory has selected its own set of ENERGY STAR qualified products to rebate, based on this DOE list of recommended appliances:</p>
<p>-	Boilers<br />
-	Central air conditioners<br />
-	Clothes washers<br />
-	Dishwashers<br />
-	Freezers<br />
-	Furnaces (oil and gas)<br />
-	Heat pumps (air source and geothermal)<br />
-	Refrigerators<br />
-	Room air conditioners<br />
-	Water heaters</p>
<p>To encourage customers to buy energy efficient products, ENERGY STAR partners occasionally sponsor special offers, such as sales tax exemptions or credits, or rebates on qualified products. Here is a list of different products you might consider swapping out for ENERGY STAR products in order to earn a rebate in your specific region:</p>
<p><strong>ENERGY STAR Clothes Washer:</strong><br />
-	Use about 30% less energy<br />
-	Use over 50% less water than regular washers<br />
-	Have a greater capacity than conventional models, meaning fewer loads of laundry.<br />
-	Cut energy costs by more than a third<br />
-	Cut water costs by more than half<br />
-	Save $135 each year on utility bills</p>
<p><strong>ENERGY STAR Dishwasher:</strong><br />
-	Use about 8 gallons less water per wash<br />
-	Use less energy to combat global warming<br />
-	Save an extra $40 on utility bills compared to regular dishwasher</p>
<p><strong>ENERGY STAR Refrigerators: </strong><br />
-	20% more energy efficient<br />
-	Cut your energy bills by $165 over the lifetime of your fridge</p>
<p><strong>ENERGY STAR Freezers:</strong><br />
-	Use 10% less energy<br />
-	Save an extra $35 a year on energy bills</p>
<p><strong>ENERGY STAR Room Air Conditioners:</strong><br />
-	Use 10% less energy<br />
- If every room air conditioner sold were ENERGY STAR qualified, it would prevent 800 million pounds of greenhouse gas emissions annually, equivalent to the emissions of more than 66,000 cars. WOW!</p>
<p><strong>ENERGY STAR Solar Water Heaters:</strong><br />
-	Cut energy bills in half</p>
<p><strong>ENERGY STAR appliances help save the environment.</strong> Nearly 70 percent of U.S. electricity is generated by burning coal and natural gas, which releases greenhouse gasses into the atmosphere and causes global warming. ENERGY STAR qualified appliances use less energy than conventional models, and help protect our lakes, streams and oceans.</p>
<p><strong>Visit <a href="http://energystar.gov/">Energystar.gov</a> to find out more about the rebate program in your state and reduce your carbon footprint.</strong></p>
]]></content:encoded>
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		</item>
		<item>
		<title>Home Warranty Defined</title>
		<link>http://aboutfirsttimehomebuying.com/?p=483</link>
		<comments>http://aboutfirsttimehomebuying.com/?p=483#comments</comments>
		<pubDate>Mon, 21 Jun 2010 22:49:16 +0000</pubDate>
		<dc:creator>LesleySiegel</dc:creator>
				<category><![CDATA[Featured]]></category>
		<category><![CDATA[Real Estate]]></category>

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		<description><![CDATA[A home warranty is your best defense against upcoming home repairs and replacements. It&#8217;s not your homeowner&#8217;s insurance policy. A home warranty is a separate contract covering repairs and replacements on systems and appliances in your home, usually for a period of one year. Home warranties cover some, but NOT ALL, of these appliances and [...]]]></description>
			<content:encoded><![CDATA[<p>A home warranty is your best defense against upcoming home repairs and replacements. It&#8217;s not your homeowner&#8217;s insurance policy. A home warranty is a separate contract covering repairs and replacements on systems and appliances in your home, usually for a period of one year.</p>
<p>Home warranties cover some, but NOT ALL, of these appliances and systems. Contract costs and coverage can vary widely. Always compare before purchasing. Home warranties cover normal wear and tear on these systems and appliances, and they MUST be in working order BEFORE the contract is entered into with the warranty company.</p>
<p>Make sure you have reviewed your contract and coverage BEFORE you need it to understand what is covered and what is not. When you buy a home warranty, consider premium and optional coverage to customize the plan to fit your needs.</p>
<p>A home warranty can be very beneficial and save you money when it is understood and utilized for its intended purpose which is to cover systems and appliances for normal wear and tear, that were in working condition before the contract began.</p>
<p>To learn more visit: <a title="Homw Warranty of America" href="&lt;a href=&quot;http://http://www.hwahomewarranty.com/about/who/?referrer=greentipsremax&quot;&gt;&lt;/a&gt;" target="_blank">Home Warranty of America</a></p>
]]></content:encoded>
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		</item>
		<item>
		<title>The New HAFA Plan</title>
		<link>http://aboutfirsttimehomebuying.com/?p=452</link>
		<comments>http://aboutfirsttimehomebuying.com/?p=452#comments</comments>
		<pubDate>Mon, 14 Jun 2010 22:42:24 +0000</pubDate>
		<dc:creator>LesleySiegel</dc:creator>
				<category><![CDATA[Distressed Properties]]></category>
		<category><![CDATA[Featured]]></category>

		<guid isPermaLink="false">http://aboutfirsttimehomebuying.com/?p=452</guid>
		<description><![CDATA[HAFA provides incentives in connection with a short sale or a deed-in-lieu of foreclosure (DIL) used to avoid foreclosure on a loan eligible for modification under the HAMP program.]]></description>
			<content:encoded><![CDATA[<p>HAFA provides incentives in connection with a short sale or a deed-in-lieu of foreclosure (DIL) used to avoid foreclosure on a loan eligible for modification under the HAMP program.</p>
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		<item>
		<title>So.Bay Price Spike in April</title>
		<link>http://aboutfirsttimehomebuying.com/?p=428</link>
		<comments>http://aboutfirsttimehomebuying.com/?p=428#comments</comments>
		<pubDate>Wed, 26 May 2010 21:25:59 +0000</pubDate>
		<dc:creator>TaraBurke</dc:creator>
				<category><![CDATA[Featured]]></category>
		<category><![CDATA[Real Estate]]></category>
		<category><![CDATA[Uncategorized]]></category>

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		<description><![CDATA[South Bay home prices spike in April By Muhammed El-Hasan Business Writer The Daily Breeze Posted: 05/24/2010 06:36:27 PM PDT Local home prices spiked in April, mirroring a statewide trend, according to a report released Monday. The median price of all types of homes sold in the South Bay &#8211; excluding the Palos Verdes Peninsula and [...]]]></description>
			<content:encoded><![CDATA[<h1>South Bay home prices spike in April</h1>
<p>By Muhammed El-Hasan Business Writer</p>
<p>The Daily Breeze</p>
<p>Posted: 05/24/2010 06:36:27 PM PDT</p>
<p>Local home prices spiked in April, mirroring a statewide trend, according to a report released Monday.</p>
<p>The median price of all types of homes sold in the South Bay &#8211; excluding the Palos Verdes Peninsula and Carson &#8211; rose 21.5 percent last month, compared to April of last year, the California Association of Realtors said.</p>
<p>The median, which represents the middle figure where half of homes sold for more and half for less, was $550,000 in April.</p>
<p>On The Hill, the median price rose 14.8 percent to $970,000 in one year.</p>
<p>In fact, Carson was the only local community cited in the report that saw a drop for April, of 6.2 percent to $286,000.</p>
<p>In a recent report by the South Bay Association of Realtors, sales of single-family homes in the South Bay &#8211; excluding the Peninsula &#8211; rose 1 percent in April year over year. Local sales of condominiums and town homes rose 6.1 percent.</p>
<p>Home sales nationwide have benefited from an $8,000 tax credit for first-time buyers, helping to spur demand.</p>
<p>&#8220;Both single-family and condominium home sales are continuing their steady climb over the last several months in terms of both prices and sales volume,&#8221; Paul Clark, president of the South Bay Realtors group, said in a statement. &#8220;While some local markets occasionally show fluctuation in prices and volume, we are hopeful that the overall South Bay trends will point toward a sustainable economic recovery.&#8221;</p>
<p>Horrell Realtors agent John</p>
<p>Parsons said the local housing market appears to be stabilizing after the slump of the past few years. He has noticed more people visiting open houses lately.</p>
<p>However, Parsons cautioned against reading too much into the spike in median prices, explaining the dramatic increase could be a result of more higher-end homes selling in April compared to a year earlier.</p>
<p>&#8220;I sure don&#8217;t think the average property is worth 21 percent more than it was last year,&#8221; said Parsons, who also serves as a Redondo Beach planning commissioner. &#8220;We were seeing that kind of increase when the market was spiking (during the housing bubble).&#8221;</p>
<p>Manhattan Beach was the priciest community cited in the statewide report, with a median of $1,572,500, up 11.7 percent.</p>
<p>Statewide, April sales and preowned, single-family homes fell 8.1 percent even as the median rose 21 percent to $306,230.</p>
<p>Despite the federal tax credit, a California homebuyer tax credit that started May 1 might have led buyers to delay a purchase, said Steve Goddard, president of the statewide Realtors group.</p>
<p>Under the federal program, a buyer must have signed a purchase contract by the end of April, with a completed sale by the end of June.</p>
<p>The $10,000 state credit is for first-time buyers or for new homes, and lasts from May through December. That allows some homebuyers to benefit from both credits.</p>
<p>&#8220;It&#8217;s likely that the state tax credit that went into effect May 1 created an incentive for many buyers to postpone closing escrow so they could take advantage of both the state and federal tax credits that were available,&#8221; Goddard, a Manhattan Beach Realtor, said in a statement. &#8220;We should see the pace of closed sales edge up in May and June as these tax-incentivized transactions close.&#8221;</p>
<p>Goddard said statewide home sales dipped below the 500,000-unit level on an annualized basis for the first time in 19 months.</p>
<p>Supply issues may help explain that dip since demand for low-cost foreclosed homes far exceeded supply, he said.</p>
<p>To see prices in your area, click in the link below and select you city.</p>
<p><a href="http://www.dailybreeze.com/news/ci_15153974?source=email" target="_blank">http://www.dailybreeze.com/news/ci_15153974?source=email</a></p>
]]></content:encoded>
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		</item>
		<item>
		<title>What is the Difference between a Listing Agent &amp; Selling Agent?  How do you choose??!!</title>
		<link>http://aboutfirsttimehomebuying.com/?p=420</link>
		<comments>http://aboutfirsttimehomebuying.com/?p=420#comments</comments>
		<pubDate>Wed, 19 May 2010 21:58:53 +0000</pubDate>
		<dc:creator>LesleySiegel</dc:creator>
				<category><![CDATA[Buyer's Guide]]></category>

		<guid isPermaLink="false">http://aboutfirsttimehomebuying.com/?p=420</guid>
		<description><![CDATA[Lesley has over 15 years experience in the South Bay working with both Buyers &#38; Sellers.  Read the article below and then contact Lesley to discuss your buying and selling needs. Listing Agents and Selling Agents When someone decides it is time to sell their home, they interview several Realtors from different companies to determine [...]]]></description>
			<content:encoded><![CDATA[<p>Lesley has over 15 years experience in the South Bay working with both Buyers &amp; Sellers.  Read the article below and then contact Lesley to discuss your buying and selling needs.</p>
<h5>Listing Agents and Selling Agents</h5>
<p>When someone decides it is time to <strong><em>sell</em></strong> their home, they interview several Realtors from different companies to determine which one is best for them. They want someone who will represent them and someone they feel will do an effective job at marketing their home.</p>
<p>However, when someone decides to buy a home, they usually end up with their Realtor through sheer accident. Why don&#8217;t <em>home buyers </em>search for a Realtor the same way that <em>home sellers</em> do?</p>
<p>Instead, homebuyers usually end up with a Realtor as a result of answering an advertisement. The advertisement will give a brief summary of a home available for sale along with the price, but it says nothing at all about the Realtor.</p>
<p>So&#8230;</p>
<p>&#8230;does it really make a difference?</p>
<h5>Listing Agents and Selling Agents</h5>
<p>You see, there are two &#8220;sides&#8221; to every sale. The listing side and the selling side. Most deals have an agent representing each side, so there are generally two agents involved The seller&#8217;s side is represented by the listing agent</p>
<p><a href="http://www.realestateabc.com/homebuying/why.htm" target="undefined"></a></p>
<p>. The buyer&#8217;s side is represented by the selling agent (also known as the buyer&#8217;s agent).</p>
<p>Agents can deal with both buyers and sellers, but the majority tend to focus their efforts on one or the other. Some even exclusively handle either buyers or sellers.</p>
<p>So what should you do?</p>
<p>We simply recommend that you take as much care to hire a real estate agent as you would for any other professional. Ask questions. Ask about education, experience, and focus.</p>
<p>After all, buying your next house is probably the biggest purchase you&#8217;ve ever made in your life. Does it make more sense to find your agent by accident&#8230;or by design?</p>
<p>http://www.realestateabc.com/homebuying/why.htm</p>
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		</item>
		<item>
		<title>Save Energy by Reducing Your Carbon Output</title>
		<link>http://aboutfirsttimehomebuying.com/?p=415</link>
		<comments>http://aboutfirsttimehomebuying.com/?p=415#comments</comments>
		<pubDate>Wed, 19 May 2010 21:34:49 +0000</pubDate>
		<dc:creator>LesleySiegel</dc:creator>
				<category><![CDATA[Green Living]]></category>

		<guid isPermaLink="false">http://aboutfirsttimehomebuying.com/?p=415</guid>
		<description><![CDATA[By Paul McRandle March 1, 2008 Photo courtesy Mathias Clamer Weight control and health tend to go hand in hand—and what’s true for our waistlines also holds true when it comes to the weight of the greenhouse gas carbon dioxide (CO2) and the health of the planet. Excess pounds of carbon dioxide are raising the [...]]]></description>
			<content:encoded><![CDATA[<h1>By Paul McRandle</h1>
<p>March 1, 2008</p>
<p>Photo courtesy Mathias Clamer</p>
<p>Weight control and health tend to go hand in hand—and what’s true for our waistlines also holds true when it comes to the weight of the greenhouse gas carbon dioxide (CO2) and the health of the planet. Excess pounds of carbon dioxide are raising the earth’s temperature and putting coastlines, not waistlines, at risk. Yet for a lot of people, the idea of going on a carbon diet to reduce pounds, much less tons, of the stuff seems airy when there’s nothing to hold onto.</p>
<p>Think of pounds of CO2 as inflated balloons: One pound of CO2 would fill a balloon about two and a half feet wide, and the amount of energy each of us uses every day, just to power our homes and drive our cars, would fill 47 of them. Imagine that for each member of your family 47 of those balloons are added to your home each day. In a week, a family of four would pack in 1,316 balloons, in a month 5,703, and in a year 68,432—enough to fill a building nine stories tall and 100 feet on each side. You wouldn’t be able to find your house in it. It’s no wonder we’re smothering our planet in greenhouse gases. The more balloons of CO2 in the air, the more heat they trap in our atmosphere. So here’s a 10-step carbon diet—a program to keep the greenhouse gas out of 142 balloons every week.</p>
<p><strong>1. Wash your clothes in cold water instead of hot. </strong><br />
• • • • • • • • •<br />
Burst balloons: 9 per week<br />
Start with something easy. Washing machines produce over 500 pounds of CO2 a year when run on hot water. But your clothes will be just as clean and may even last longer when laundered in cold water.</p>
<p><strong>2. Use a drying rack. </strong><br />
• • • • • • • • • • • • • •<br />
Burst balloons: 14 per week<br />
Dryers produce about 1,450 pounds of CO2 per year and the high heat damages fabric. So get more life out of your garments, lower your electric bill and spare the planet by drying at least half of your clothes on a rack or line. Plus, sunlight is the most effective stain-remover around.</p>
<p><strong>3. Seal and weatherstrip your home. </strong><br />
• • • • • • • • • • • • • • • • •<br />
Burst balloons: 17 per week<br />
This summer, sealing your home will ensure you don’t lose the cool air you’re paying for. Caulking and weatherstrip- ping doors, windows and any cracks or openings in walls will save about 225 pounds of CO2 per season to run your AC. It pays off even more in the winter when you need to trap the heat; every year, you save 640 pounds of CO2 if you have natural gas heat and 470 pounds if you have elec- tric heat. And it’s a simple job.</p>
<p><strong>4. Insulate. </strong><br />
• • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •<br />
Burst balloons: 41 per week (natural gas heating), 30 per week (electric heat)<br />
Insulating your home is a bit more demanding and best handled professionally. There are a number of insulating options better than fiberglass, which presents a breath- ing hazard from airborne glass particles and formalde- hyde released during installation. Some green-building specialists claim that spray foam insulation is the most efficient and cost-effective variety, even though it’s usu- ally composed of petroleum-based polyurethane. If you choose spray foam, consider a blend that includes soy- bean oil, such as BioBase501, to reduce the reliance on fossil fuels. Another alternative, recycled denim insula- tion, uses a more eco-friendly material but isn’ t as effi- cient an insulator as polyurethane foam.</p>
<p><strong>5. Wrap your water heater and turn down the temperature. </strong><br />
• • • • • • • • • • • • • • • •<br />
Burst balloons: 16 per week<br />
Insulating your water heater with a simple DIY kit, available at most hardware stores for $20, will save you 300 pounds of CO2 annually. As water heaters can ac- count for up to 13 percent of your utility bill, set the tem- perature to 120° F. Turning it down from 140° F will save 479 pounds of CO2 annually. If you’re really up for a renovation, switch from a con- ventional water heater to an on-demand heater.</p>
<p><strong>6. Run the dishwasher only when full. </strong><br />
• • • • • • • • • • • • • • • • •<br />
Burst balloons: 17 per week<br />
Wait until you fill your dishwasher before turning it on and always set it to the energy saver mode.</p>
<p><strong>7. Turn off your TV, DVD player, computer and cable box. </strong><br />
• • • • •<br />
Burst balloons: 5 per week<br />
Even while idling in “standby” mode, your home enter- tainment center and computer consume energy. Plug them into a power strip and turn it off after you shut down your electronics.</p>
<p><strong>8. Clean your refrigerator. </strong><br />
• • • • • • • • • • • • • • •<br />
Burst balloons: 15 per week<br />
Take a look at the top of your fridge—cluttered much? Clear it off. Those piled-up plastic containers and cereal boxes can prevent your fridge from venting heat effec- tively. Then go for the more demanding project: Remove the grill at the base of the fridge (or turn the fridge around) to clean the coils.</p>
<p><strong>9. Compost Your Food Scraps. </strong><br />
• • • • •<br />
Burst balloons: 5 per week<br />
Food waste stored in airless landfills is eaten by bacteria that release massive amounts of methane, a gas 21 times more heat-trapping than CO2. Composting ten pounds of food a week will keep five balloons out of the air.</p>
<p><strong>10. Take the bus or ride your bike. </strong><br />
• • •<br />
Burst balloons: 3 per week (bus), 12 per week (bike)<br />
The average 12-mile commute to work produces roughly 12 pounds of CO2 (depending on your mileage, you pro- duce one pound of CO2 for every mile driven). Even diesel buses are greener than cars when you factor in the number of passengers on board. Give the bus a shot once a week for a year. Or give your legs and heart a workout by commuting on a bike and save even more.</p>
<p>To sum it all up, after a year of these efforts, you’ll have kept over 7,000 balloons of CO2 from entering the atmosphere. That’s about 3.5 tons of CO2 off the average</p>
<p><strong>What is a Carbon Footprint?</strong> Your “carbon footprint” is the amount of greenhouse gases you produce over a year measured in tons of CO2. Because we rely on so many goods and services to support our power-hungry lifestyles, our footprint includes emisions from industry, agriculture, transportation, forestry, power generation and buildings. The weight builds up pretty quickly: The aver- age American’s footprint is 26.5 tons, not far from Australia’s 28 tons per person, but in less-developed India the number dwindles to one ton.</p>
<p>http://www.thegreenguide.com/home-garden/energy-saving/lose-carbon/1</p>
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		</item>
		<item>
		<title>How Much Home Can You Afford?</title>
		<link>http://aboutfirsttimehomebuying.com/?p=404</link>
		<comments>http://aboutfirsttimehomebuying.com/?p=404#comments</comments>
		<pubDate>Wed, 19 May 2010 21:16:14 +0000</pubDate>
		<dc:creator>LesleySiegel</dc:creator>
				<category><![CDATA[Financing]]></category>

		<guid isPermaLink="false">http://aboutfirsttimehomebuying.com/?p=404</guid>
		<description><![CDATA[Be informed before you begin your dream home search.  Review the loan chart below and see how much home you can actually afford.  More questions?  Click on the &#8220;Contact Me&#8221; box to the right and ask Lesley Siegel.  She specializes in first time home and buyers can help walk you through one of the biggest [...]]]></description>
			<content:encoded><![CDATA[<p>Be informed before you begin your dream home search.  Review the loan chart below and see how much home you can actually afford.  More questions?  Click on the &#8220;Contact Me&#8221; box to the right and ask Lesley Siegel.  She specializes in first time home and buyers can help walk you through one of the biggest purchases of your life!</p>
<p style="text-align: center;"><a href="http://aboutfirsttimehomebuying.com/wp-content/uploads/2010/05/Loan-Chart2.png"><img class="aligncenter size-full wp-image-440" title="Loan Chart" src="http://aboutfirsttimehomebuying.com/wp-content/uploads/2010/05/Loan-Chart2.png" alt="" width="374" height="367" /></a></p>
]]></content:encoded>
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		</item>
		<item>
		<title>What is HAFA?</title>
		<link>http://aboutfirsttimehomebuying.com/?p=393</link>
		<comments>http://aboutfirsttimehomebuying.com/?p=393#comments</comments>
		<pubDate>Mon, 10 May 2010 23:34:42 +0000</pubDate>
		<dc:creator>LesleySiegel</dc:creator>
				<category><![CDATA[Distressed Properties]]></category>

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		<description><![CDATA[Watch the video to find what the new HAFA is, and how it can help you in your short sale. .]]></description>
			<content:encoded><![CDATA[<p style="text-align: center;">Watch the video to find what the new HAFA is, and how it can help you in your short sale.</p>
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		<title>Suzie Orman on Short Sale &amp; Foreclosure</title>
		<link>http://aboutfirsttimehomebuying.com/?p=347</link>
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		<pubDate>Mon, 03 May 2010 22:23:39 +0000</pubDate>
		<dc:creator>LesleySiegel</dc:creator>
				<category><![CDATA[Distressed Properties]]></category>
		<category><![CDATA[foreclosure]]></category>
		<category><![CDATA[short sale]]></category>
		<category><![CDATA[South Bay Homebuying]]></category>
		<category><![CDATA[Suzie Orman]]></category>

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		<description><![CDATA[Facing foreclosure? Lesley Siegel, Realtor &#38; Certified Distressed Property Expert can help to answer your questions and alleviate your concerns. Looking to Buy a foreclosed property?  As a Certified Distressed Property Expert (CDPE) Lesley Siegel have vast knowlege of the process of buying or selling a short sale or foreclosure. ]]></description>
			<content:encoded><![CDATA[<p style="text-align: center;"><em>Facing foreclosure? Lesley Siegel, Realtor &amp; Certified Distressed Property Expert can help to answer your questions and alleviate your concerns.</em></p>
<p style="text-align: center;"><em>Looking to Buy a foreclosed property?  As a Certified Distressed Property Expert (CDPE) Lesley Siegel have vast knowlege of the process of buying or selling a short sale or foreclosure.  </em></p>
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		<title>Homes lost, but some 2nd-mortgage debts remain</title>
		<link>http://aboutfirsttimehomebuying.com/?p=296</link>
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		<pubDate>Wed, 28 Apr 2010 21:30:43 +0000</pubDate>
		<dc:creator>LesleySiegel</dc:creator>
				<category><![CDATA[Distressed Properties]]></category>
		<category><![CDATA[bank debt]]></category>
		<category><![CDATA[debt]]></category>
		<category><![CDATA[foreclosure]]></category>
		<category><![CDATA[mortgage]]></category>
		<category><![CDATA[shortsale]]></category>

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		<description><![CDATA[Have questions about your mortgage or facing foreclosure? Lesley Siegel, Realtor &#38; Certified Distressed Property Expert can help to answer your questions and alleviate your concerns.   Carolyn Said, Chronicle Staff Writer Monday, April 19, 2010 Eleven days after losing his home to foreclosure, Jorge, a Napa construction worker, received an ominous letter in the [...]]]></description>
			<content:encoded><![CDATA[<div><em>Have questions about your mortgage or facing foreclosure? Lesley Siegel, Realtor &amp; Certified Distressed Property Expert can help to answer your questions and alleviate your concerns.</em></div>
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<h1><a href="mailto:csaid@sfchronicle.com">Carolyn Said, Chronicle Staff Writer</a></h1>
<p>Monday, April 19, 2010</p>
<p>Eleven days after losing his home to foreclosure, Jorge, a Napa construction worker, received an ominous letter in the mail. It said he still owed $78,000 on his home&#8217;s second loan.</p>
<p>&#8220;I was afraid and felt pressured,&#8221; said Jorge, who asked that his last name be withheld because he is embarrassed about his situation. &#8220;I called them to say I had already lost the house in a foreclosure,&#8221; he said, speaking in Spanish through a translator. &#8220;They told me it doesn&#8217;t matter, you have to pay the money anyway.&#8221;</p>
<p>Jorge&#8217;s experience is being mirrored elsewhere. Debt collectors are starting to hound people who lost their homes to foreclosures or short sales over their second mortgages.</p>
<p>In California, a foreclosure generally wipes out the borrowers&#8217; obligation on the main mortgage but not necessarily on other home loans.</p>
<p>&#8220;We&#8217;ve seen a lot of folks coming to us, saying, &#8216;I was foreclosed on, now these people say I owe $150,000 for my second loan; I thought everything was going to go away, what do I do now?&#8217; &#8221; said Noah Zinner, an attorney with Housing &amp; Economic Rights Advocates in Oakland.</p>
<p>Some experts think the trend will accelerate, causing foreclosure pain to linger.</p>
<p>&#8220;I think the other shoe is going to drop soon,&#8221; said Shannon Jones, a real estate attorney in Danville who gets several calls a day from people concerned about their liabilities post-foreclosure. &#8220;In the next two years we will see a huge volume of (debt collection on) second loans. We&#8217;re seeing a number of lenders start filing suit or turn them over to collection companies.&#8221;</p>
<p>California is a nonrecourse state, meaning lenders cannot pursue borrowers for unpaid balances on home-purchase loans. However, home loans not used for the purchase &#8211; home equity lines of credit and second loans taken out after purchase &#8211; are recourse loans, which means lenders are legally entitled to collect the unpaid balance. Depending on the type of loan, they have four to six years to pursue borrowers, Jones said.</p>
<h3>Pursuing borrower</h3>
<p>Refinanced mortgages do become recourse loans, but in California a nonjudicial foreclosure &#8211; the most common kind &#8211; eliminates the borrower&#8217;s liability to the lender that carried out the foreclosure, which is generally the main lender. A second lender for a nonpurchase loan, however, still has &#8220;recourse,&#8221; or the right to pursue the borrower.</p>
<p>In Jorge&#8217;s case, he took out the second loan to buy his house, so it is nonrecourse debt, and he cannot be sued for the unpaid balance. A debt collector can, however, ask him to pay &#8220;voluntarily.&#8221;</p>
<h3>Class action planned</h3>
<p>For several months, Jorge continued to receive letters and phone calls from both his bank and a debt collector asking him to pay.</p>
<p>&#8220;The servicer says there is nothing that prohibits the borrower from voluntarily paying us,&#8221; Zinner said. &#8220;There is no question it&#8217;s sneaky, but it&#8217;s not illegal for them to do that. If they were to threaten to sue, that would clearly be illegal.&#8221;</p>
<p>&#8220;I suspect they&#8217;re just dealing with volume,&#8221; said Maeve Elise Brown, executive director of the Oakland group. &#8220;(Debt collectors) buy the debt for 10 cents on the dollar and figure they&#8217;ll browbeat a certain percentage of homeowners into paying them, whether the money is lawfully due or not.&#8221;</p>
<p>Housing &amp; Economic Rights Advocates has partnered with attorney Will Kennedy of Santa Clara to represent Jorge and plans to pursue a class-action case on behalf of other borrowers with nonrecourse loans whose lenders dunned them for that debt.</p>
<p>&#8220;Many people are in Jorge&#8217;s situation and don&#8217;t realize they&#8217;re under no obligation to make any more payments after a foreclosure,&#8221; Kennedy said.</p>
<h3>Loans after purchase</h3>
<p>But millions of borrowers do have recourse loans that they took out after purchase, which means lenders have a legal right to pursue them for unpaid balances.</p>
<p>In California during the boom real estate years &#8211; 2005 to 2007 &#8211; homeowners took out 2.88 million home equity lines of credit and 1.18 million nonpurchase second loans, according to First American CoreLogic, which tracks loan data. The total was 4 million such recourse loans totaling $485.3 billion.</p>
<p>Some experts think lenders may pick whom to pursue by probing defaulted borrowers&#8217; net worth.</p>
<p>Rick Harper, director of housing at Consumer Credit Counseling Services of San Francisco, which staffs the federal HOPE for Homeowners hot line, said his workers tell borrowers who are considering default that their second loans could make them liable to debt collection.</p>
<p>&#8220;Depending on what the holder of that note wants to do, it can make their (the borrowers&#8217;) life miserable,&#8221; he said. &#8220;Most of the (lenders) do an asset test to see if there&#8217;s anything there. They can run credit reports, use investigative services, get their hands on the applications they used when they applied for a loan.&#8221; Applications for loan modifications and short sales also require disclosure of assets.</p>
<h3>Banks check assets</h3>
<p>At Wells Fargo, Mary Berg, a spokeswoman for the Home Equity Group, said in an e-mail: &#8220;On a case-by-case basis, after a review of the borrower&#8217;s situation, we do sometimes pursue deficiency balances in states that allow this type of activity. We only pursue deficiency judgments if we determine that the borrower has the ability to repay the entire or a portion of the balance.&#8221;</p>
<p>Wells, Bank of America and JPMorgan Chase hold the lion&#8217;s share of U.S. second liens, according to Inside Mortgage Finance. BofA has $147 billion, Wells $124 billion and Chase $118 billion, it says.</p>
<p>Chase wrote off about $4.6 billion in home equity loans in 2009, and has said it expects to write off up to $5.6 billion of the loans this year.</p>
<p>Chase declined to comment. BofA did not return requests for comment.</p>
<p>Jones, the Danville real estate attorney, said she&#8217;s turned down some second-loan clients.</p>
<p>For instance, one Bay Area man had borrowed $52,000 on a home equity line of credit for a home that ended up in foreclosure.</p>
<p>&#8220;The lender filed suit against him and he asked me to defend him,&#8221; she said. &#8220;I said, &#8216;You don&#8217;t have a defense. You borrowed the money, you spent the money. You signed a promissory note and said you would pay it back.&#8217; &#8221;</p>
<p>Often, such borrowers end up settling with the lender for pennies on the dollar, Jones said. &#8220;You can&#8217;t get blood from a turnip,&#8221; she said.</p>
<h3>Bankruptcy option</h3>
<p>Margot Saunders, an attorney with the National Consumer Law Center, said bankruptcy may be the best option for some people to wipe out liability for their second loans.</p>
<p>&#8220;People with a second mortgage who are facing foreclosure should go to bankruptcy to get rid of the unsecured second-mortgage note,&#8221; she said. &#8220;They should do it as soon as they&#8217;re foreclosed upon, because that&#8217;s when they&#8217;re at rock-bottom, not when they&#8217;ve started to rebuild (their finances).&#8221;</p>
<p>Other attorneys said borrowers should try to discharge their second liens before a foreclosure or short sale by offering the lender a percentage of the amount due.</p>
<p>Home Affordable Modification Program, the government&#8217;s foreclosure-prevention plan, recently added provisions encouraging lenders to settle or modify second loans. If adopted by lenders, that could help people who lose their homes in the future avoid pursuit by debt collectors, but it won&#8217;t do anything for the millions who already lost their homes in recent years.</p>
<p>&#8220;It will be hard for people in our state to start over again, if they sometimes lawfully and sometimes unlawfully end up getting pursued for pretty significant-sized debt,&#8221; Brown said.</p>
<p>E-mail Carolyn Said at <a href="mailto:csaid@sfchronicle.com">csaid@sfchronicle.com</a>.</p>
<p id="url">http://sfgate.com/cgi-bin/article.cgi?f=/c/a/2010/04/19/MN3C1CQGOC.DTL</p>
<p id="pageno">This article appeared on page <strong>A &#8211; 1</strong> of the San Francisco Chronicle</p>
<p> </p>
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