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Although the actual settlement has not yet been released, the attorney general has stated that other financial benefits for California include $849 million for refinancing 28,000 borrowers who are underwater but current on their payments; $279 million restitution for 140,000 homeowners who were foreclosed upon between 2008 and 2011; $1.1 billion for unemployed homeowners, transitional assistance, and repairing blight; $3.5 billion to extinguish unpaid loans that remain after foreclosure for 32,000 homeowners; and $430 million to the state attorney general’s office for costs and fees. As part of a California guarantee, if the lenders fail to reduce principal balances by a minimum of $12 billion, they will be required to pay fines up to $800 million to the state.

The loans involved in this settlement are those owned or serviced by Bank of America, JPMorgan Chase, Wells Fargo, Citigroup, and Ally Financial Inc. The settlement releases the five named lenders from certain federal and state claims pertaining to robo-signing and other foreclosure misconduct by the lenders. It does not affect any individual’s rights to bring legal action against a lender. It also does not apply to the majority of mortgage loans, which are those owned by Fannie Mae or Freddie Mac.

This mortgage settlement does not change any homeowner’s existing financial relationship with a settling lender. It does not relieve homeowners from any obligation. It does not require a settling lender to stop any foreclosure.

Homeowners seeking relief under the settlement agreement should contact their loan servicer or a HUD-approved housing counselor. More information including detailed FAQs is also available from the California Attorney General’s website, or visit the National Mortgage Settlement website.

1. Don’t host an open house alone; take along a colleague. Never show properties alone at night or advertise it as vacant.
2. Always have prospects meet you at your office the first time. Get a license plate number and leave it at the front desk. Just explain that it is office policy; a client who means no harm won’t mind.
3. Always take your own car for showings. When you leave your car, lock it.
4. Let potential buyers take the lead when exploring a home, with you following behind. Avoid going into the basement or confined areas with a prospect.
5. Be careful how you dress. Flashy or expensive jewelry might attract the wrong kind of attention.
6. Preview the property ahead of time so that you are familiar with the area.
7. Always carry a cell phone where it is easily accessible (not in the purse you left in the car or stowed in a kitchen cabinet.)
8. Implement a buddy system. Enlist at least 5 colleagues or close friends that you can rely on in case of emergency. Let them know your whereabouts prior to showing a property and trust that they will have your back.

Overall, the trend right now is replacement over remodeling–swapping out the old for the new rather than doing a total gut job, which can be much more costly.

This year’s Cost vs. Value report found that exterior replacement projects–such as new garage doors and a new entry door–offer some of the best returns at resale, allowing home owners to recoup close to 70 percent or more of the costs of the project at times of resale.

The following are the top, mid-range projects from this year’s report, based on what home owners stand to recoup at time of resale:

1. Replacing the entry door to steel

Estimated cost: $1,238
Cost recouped at resale: 73%

2. Attic bedroom (converting unfinished attic space into a bedroom with bathroom and shower)

Estimated cost: $50,148
Cost recouped at resale: 72.5%

3. Minor kitchen remodel (including new cabinets and drawers, countertops, hardware, and appliances)

Estimated cost: $19,588
Cost recouped at resale: 72.1%

4. Garage door replacement

Estimated cost: $1,512
Cost recouped at resale: 71.9%

5. Deck addition (wood)

Estimated cost: $10,350
Cost recouped at resale: 70.1%

6. Siding replacement (vinyl)

Estimated cost: $11,729
Cost recouped at resale: 69.5%

The REO Initiative will allow qualified investors to purchase pools of foreclosed properties with the requirement to rent the purchased properties for a specified number of years. This rental period could provide relief for local housing markets that continue to be depressed by the volume of foreclosed properties, and provide additional rental options to certain markets. Prequalification ensures investors will have the financial capacity and operational expertise to manage properties in a way that is conducive to the stabilization of communities hard hit by the housing downturn.

During the pilot phase, Fannie Mae will offer for sale pools of various types of assets including rental properties, vacant properties and non-performing loans with a focus on the hardest-hit areas. The first transaction will be announced in the near-term.

California’s housing market is unique.  California has an extremely low REO inventory where REO sales are getting top dollar in multiple offer situations.  On average, REOs are sold are sold in less than 60 days.  Bulk sales in California not only would have a negative impact on home prices, but would also push down home values for existing homeowners in those communities.  C.A.R. is asking that the Federal Housing Finance Agency, Dept. of Treasury, and Dept. of Housing and Urban Development consider this program only in areas where REO inventory is abundant and selling in bulk makes sense.

More info

Where is the balance in today’s marketplace in generating and converting leads? In this free webinar, real estate coach Dirk Zeller will discuss strategies, tactics, and systems that can help you run your lead-generation and conversion systems.

You will learn:

•     How to combine timeless success systems with new technologies.
•     Strategies and tactics for targeting one of the fastest-growing niches in real estate — investors.
•     Time management systems that allow you to increase both your income time off.
•     How to use today’s economic trends, data, buyer fears, and seller frustrations to increase your sales.

The live webinar will be held Thursday, February 9th at 12p PT.  To register, visit the REALTOR Mag website.