There’s no doubt about it. California foreclosure law is complex.

I sometimes hear California referred to as a “non-recourse” state. That designation can be misleading.

California has two types of loans: Recourse and non-recourse. When reduced to their most essential terms, the difference between these two is: A borrower may have personal liability following a foreclosure on a recourse loan.

Conversely, a borrower will generally have no personal liability following a Judicial Foreclosure Sale on a non-recourse loan.

That’s the difference. But the practical application of that difference, and the effects and consequences, could fill volumes.

For example, a short sale is not a foreclosure sale. It’s a voluntary sale, whereas a foreclosure is involuntary. When borrowers sell short, they agree to the sale. In a foreclosure, there’s no agreement to sell; the property is seized and sold by the county

That simple difference can have far-reaching consequences. California has several laws that protect, to a certain degree, the interests of borrowers in a foreclosure. But some of these laws and protections may not apply to a short sale.

Full story is available on The Inside Bay Area

Time is running out. Homebuyers must sign a contract by the end of next week to take advantage of federal tax incentives.

In the rush to make a deal, one detail that they’ll need to weigh carefully is securing the appropriate insurance to protect their investment.

Keep in mind these basics when thinking about homeowners insurance coverage:

Full story is availble on The New York Times

Nothing short of a miracle, it seems, will keep Melissa Miller in the house in Honey Brook, Chester County, that has been part of her family for more than a century. Despite her best efforts, it goes to sheriff’s sale Thursday.

The house is Miller’s home, but she has not owned it since 2006, when she tried to save it with an “unconventional refinancing” and ended up being scammed out of the legal title to the property.

Miller, 40, is one of 350 victims of a complicated mortgage-fraud scheme federal prosecutors have dubbed “Operation Homewrecker.”

Full story is availalble on Philadelphia Inquirer

The supply of foreclosed homes that banks need to sell is rising again, signaling further downward pressure on home prices in some parts of the U.S.

Mortgage analysts at Barclays Capital in New York estimated that banks and mortgage investors held a total of 645,800 foreclosed homes in January, up 4.6% from 617,286 a month earlier.

According to Barclays, the supply peaked at around 845,000 in November 2008 and then declined through 2009.

Even though the number of people behind on mortgage payments kept rising last year, the flow of homes into bank ownership slowed markedly because of time-consuming efforts to figure out which distressed borrowers could qualify for programs that attempt to avert foreclosures by reducing monthly payments. Meanwhile, brisk demand from investors and first-time home buyers helped banks unload many of the homes they held.

Full story is available on The Wall Street Journal

A home is probably the best investment you will ever make in your life. This only adds to the fact that you need to secure your investment through home insurance. Insure4USA.com recently released guide for buyers of home insurance highlights the most effective ways to obtain affordable home insurance. The home insurance buyer’s guide contains comprehensive information on types of home insurance policies available.

Dropping home insurance during these tough economic times may occur to many homeowners. However, the thought of cutting back on home insurance can only lead to further disaster in case of any mishaps. According to CEO of Insure4USA.com, “This is a time when homeowners require specific guidance on the best home insurance packages available in the market”. He stresses the fact that many homeowners don’t have a clue as to the type of insurance they need and the benefits of umbrella policies. For the uninitiated, an umbrella policy is that protects you against any lawsuits that may be filed by someone that may be injured within your property. You can get to know more about this policy in Insure4USA’s homeowners guide.

Full story is available on Online PR News

The end of the foreclosure crisis is finally in sight. For the first time in almost three years, the number of homeowners falling behind on their loans is declining.

The drop means the number of people losing their homes will start to fall. But some pain from the crisis is sure to persist. Because millions of people are already in foreclosure, deeply discounted houses will put pressure on home prices for years.

“Housing is on a path to recovery,” said Mike Larson, a real estate analyst with Weiss Research. “It’s going to be a very long, gradual process.”

Full story is available on nashuatelegraph.com

Ohio Attorney General Richard Cordray is suing Barclays Capital Real Estate Inc. for allegedly not helping consumers at risk of losing their homes.

Cordray, a Democrat, said the company provided “inadequate, incompetent customer service” and issued “unfair” loan modification agreements.

The lawsuit against Barclays’s unit known as HomEq Servicing, seeks a court order barring the loan-servicing firm from violating Ohio consumer protection laws and fines of $25,000 for each violation.

Full story is available on Legal News Online

A leading insurer has warned Britons about the potential dangers to the home over the Christmas period.
Homeowners must ensure that their properties are fully covered to prevent this year’s Christmas celebrations turning into a disaster, it was claimed today (December 21st).

MORETH>N Home Insurance revealed that it witnessed a substantial increase in the number of fire incidents reported by its customers on Christmas Day in 2008.

Full story is available on Prudent Minds

It happens to everyone at some point: You have to make a claim on your auto or homeowners insurance. In most cases, that first claim should not have an affect on your rates.

But one man recently learned the hazard of making more than one claim!

Bad Luck Strikes….Three Times

Jeff Hummer showed me where his refrigerator flooded the kitchen of his Butler County Ohio home, ruining his hardwood floors.

Full story is available on wcpo.com

Florida homeowners insurance laws dictate how much an insurer has to pay in the event of a “total loss” to a home.

The law that applies to total loss cases is called the Valued Policy Law. Under this law, an insurer is obligated to pay the entire amount of insurance provided under the policy even if the repair or replacement of the building could be done for less. When identifying a total loss, an insurer must consider whether the cost of building repair might exceed the property’s value. This can become complicated in cases where a single event causes two types of damage. This often occurs in the case of hurricanes, which cause damage by flood and wind. Wind is typically covered under a homeowner’s insurance policy, while flooding is not. Many questions have been raised with respect to the application of the Valued Policy Law in these cases.

Full story is available on Web Wire