Real Estate Digest
A California Real Estate Newsletter
Edition 4, September 2014
Dear Readers, 
Hello, and welcome to the Fourth Edition of the Real Estate Digest. 
This edition is all about recovery. Today's consumer is in the stages of recovering from multiple economic and credit crises. To help out, various creditors have lessened the default waiting period following an "adverse credit event" to get approval. Be it extenuating circumstances (when there were plenty to go around!) or just subsequent credit-worthiness, there is a multitude of devices newly in place to help out.

Following is a chart of the new reduced timing for credit approval from various agencies, as well as an explanation of the changes.

As always, our blessings and gratitude for your continued and loyal support--YOU keep us going!
Click here for a better look

Credit Recovery 

Defining Extenuating Circumstances


The Federal National Mortgage Association (FNMA), or Fannie Mae as it is called, is a government-sponsored enterprise whose purpose is to expand the secondary mortgage market by providing mortgage-backed securities and low interest rates, and in effect increasing the number of lenders in the mortgage market by reducing the reliance on locally-based savings and loan associations. Recently the "waiting period" for Fannie Mae credit approval following a Significant Derogatory Credit Event ("Significant Event") has been reduced, as indicated in its 2014 "Single Family Selling Guide". Examples of a Significant Event are bankruptcies, defaults,  and foreclosures.


This adds the possibility for a person with a bankruptcy on their credit history to proffer the existence of Extenuating Circumstances, or "nonrecurring events that are beyond the borrower's control that result in a sudden, significant, and prolonged reduction in income or a catastrophic increase in financial obligations." If a borrower claims that derogatory information is the result of extenuating circumstances, the lender must substantiate the borrower's claim.


Examples of such extenuating circumstances include a copy of "a divorce decree, medical reports or bills, notice of job layoff, job severance papers, etc." and documents that illustrate factors that contributed to the borrower's inability to resolve the problems that resulted from the event (such as a copy of insurance papers or claim settlements, property listing agreements, lease agreements, tax returns (covering the periods prior to, during, and after a loss of employment), etc.).


In the event that a borrower can establish the existence of such extenuating circumstances, then the "waiting period" for approval by Fannie Mae is cut in half-from two years to four years. This seems to be a step in the right direction, following economic downturn as was experienced in recent decades past.


CAR Market Forecasts through 2015:
The Research & Economics branch of the California Association of Realtors (CAR) has released a report that indicates a promising forecast for the housing market. While the median price for the sale of detached homes continues to rise, the number of homes being sold is increasing as well, following a slump which started in 2012.

See more here.
Christine's Corner

Creating locally owned utility Companies:

The Institute for Local Self-Reliance (ILSR) is dedicated to sustainability and prosperity through self-starter initiatives; or as they describe it, "to provide innovative strategies, working models and timely information to support environmentally sound and equitable community development."

In a recent report titled "Advantage Local--Why Local Energy Ownership Matters", the ILSR outlines the advantages and barriers facing renewable energy sources such as wind and solar. Its conclusion, that renewable energy is most viable on a local community-driven, level, follows from its finding that the most substantial barriers renewable energy faces is the centralization of traditional energy sources oil and gas. 

Moreover, the report indicates that renewable energy is finding new and increasing support through policy initiatives. Boulder Colorado is in the lead in  creating a local electrical utility: website
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Local Market Trends


Schneider Estates
Christine Schneider, Broker
BRE# 01749537

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Issue 4
September, 2014