Marc Guzman's West County Blog

Marc Guzman is the Technology Manager and a Broker-Associate at Security Pacific Real Estate (Lic# 01397719) in West Contra Costa County of Northern California. Currently specializing in residential sales in the Bay Area and responsible for over 800 transactions since 2003. To subscribe to my blog, click 'Follow on Tumblr' at the top of the page or sign up for the RSS Feed. For past articles, enjoy the easy navigation in the 'Archives' or use the Search option below. Enjoy!
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Well it has been a while since I have written an article so I decided I’d write one today.  It seems like the Federal Housing Administration (FHA) is looking to ramp up its Distressed Asset Disposition Program.  Currently the FHA has over 700,000 delinquent loans on its books so to cut down on the backlog they created a program in which they sell mortgages to investors.

Well according to the FHA, the program was a success in its pilot program to sell 2,000 mortgages that now they have decided to ramp up the sales.  Starting in September, the FHA will be selling 5,000 mortgages per quarter.  The new investors will be required to continue efforts in keeping the owner in the property and cannot foreclose for at least six months.  According to the FHA, more options can be provided to distressed homeowners by going this route.  Other options include deeding the property back to the investor in which the previous owner can rent-to-own in three years.

So what do you think?  Is this really a way to help distressed homeowners or another way to sell properties to corporate buyers?  I want to hear your thoughts so please leave a comment below.

Marc Guzman

Today’s Top News is Sure to Spark Some Talk

Mortgage Debt Relief Act of 2007 is set to expire this year, how will this affect you?

Home Values in 80 Metro Areas are up; April was largest gain since ____.

FHA has a new announcement regarding their newest FHA Bulk Sale Program.

Question of the Day:  Is the FHA Bulk Sale Program good or bad for our economy?

As always, thanks for watching!


Marc Guzman

The time to buy real estate for investments is NOW!

Morgan Stanly Housing Chief, Oliver Chang, stepped down to follow this same path by starting an investment fund to buy, hold and rent real estate. In addition, RealtyTrac came out with Top 10 markets to buy foreclosures and San Francisco made #5.


Marc Guzman

Bank of America Short Sale Cash Incentives of up to $30,000.

A few weeks ago, Bank of America announced a new process to streamline Short Sales.  Now they have announced a new cash incentive for homeowners conducting short sales.  There is a catch though… watch the video above to find out.

For a history on Bank of America’s new policy, check out the following.
Video:  Bank of America Announces Short Sale Streamlining

Marc Guzman


Offer Statistics for Bay Area Real Estate Market - Foreclosures, Short Sales and Regular Home Sales.

This video and chart easily explains the Bay Area real estate market and the multiple offers being received on properties.  It also provides tips to home sellers and home buyers to achieving your goals in today’s challenging market.

TIP For Watching Video: To see the chart better, open the video in YouTube and maximize the screen. (


Marc Guzman

333 30th Street, Richmond, CA 94805

Not the best looking house right now but great investment opportunity! This is Back on the Market and at a reduced price of $154,900.

House features 3 Bedrooms, 1.5 Baths and 2,263 Living Sq Ft.  Located in desirable North and East neighborhood of Richmond, CA.  Near park and many amenities.

Contact Marc Guzman for private showing.

(510) 662-8536

Last week Bank of America announced it is launching a pilot program to rent properties to delinquent homeowners.  If you have been a reader and follower of West County Blog, this will come to you as no surprise since I posted an article back in December discussing Bank of America preparing for this type of program.

The first pilot program will affect just under 1,000 homeowners and Bank of America will be targeting homeowners that are 60+ days past due and who cannot qualify for any type of loan modification.

How the program will work, the homeowner must first give title of the property back to Bank of America.  Bank of America will forgive the debt owed and the now former homeowner will be allowed to rent the property for up to three years at or below current market rental rate.  In addition, the former homeowner will be relieved of property taxes and homeowner’s insurance.

The program is called “Mortgage to Lease” and is currently targeting homeowners in Arizona, Nevada and New York.  Some homeowners have already reported being contacted by Bank of America.  Right now, the program is being conducted on a solicitation basis, homeowners cannot request or apply.


Marc Guzman

2012 Foreclosure-to-Rental Program to Capture 50% of Bank Foreclosures

One thing I should clarify that I didn’t mention in the video: 7.5 Million foreclosures in pipeline with half in the top 20 metropolitan areas. The majority of the foreclosures that will be sold are concentrated in the 20 metropolitan areas hit the hardest by the housing crash. That is why 50% of government-backed mortgage foreclosures in those areas will never hit the market.

For example, at the end of February 2012 the first bulk sale was put for for auction. It consisted of 2,490 homes in 6 cities ONLY. Yes only 6 cities and they were cities hit hard by the housing crash. This is why 50% in these metropolitan areas will disappear.

Of course this will create an even more shortage of inventory in many of these areas and we will see another small bubble in home values before it pops in a few years when the hedge funds and equity firms decide to liquidate properties.

So if you are thinking of selling your home, do so within the next year or two. You’ll have the advantage of high buyer demand.

Marc Guzman

The first pilot transaction in which investors can buy foreclosures in the Foreclosure-to-Rental initiative was launched today.  The Federal Housing Finance Agency (FHFA) has a package of 2,500 properties in 6 major cities and has begun taking bids from qualified investors.  These homes are a mix of both Fannie Mae and Freddie Mac properties.

These qualified investors must submit their applications along with proof to demonstrate they have the capability of turning these properties into rentals for the next 3 years.  The Foreclosure-to-Rental program was announced last year and it was estimated to begin in March 2012.  Well it began just a few days before March.

For a history on this Foreclosure-to-Rental program, check out the following:

What to Expect in 2012 with new Foreclosure to Rental Program

Plan to Lease Out Foreclosures Gets Closer to Reality

What If You Could Walk Away From Your Mortgage But Not Your House?


Marc Guzman

For the last 7 or 8 months, I have been talking about how the banks will eventually turn their foreclosure properties into rentals.  Well yesterday, Fannie Mae and Freddie Mac announced that it will start taking applications from investors to get pre-qualified for the upcoming Foreclosure-to-Rental program.  This new program will create an investment vehicle that will allow investors to purchasxe a controlling equity interest in bulk packages of properties owned by Fannie and Freddie.  If you still have doubts about this, go direct to Fannie Mae’s website: and read it for yourself.  You can also go to

So what does this mean for home sellers, home buyers and professionals in the real estate industry?

Home Sellers – With many foreclosures turning into rentals, the current lack of inventory on the market will continue.  It will be a seller’s market with multiple offers on almost every property.  So 2012 will be the year to sell.  For those sellers facing foreclosure, doing a short sale is the best option.  In California, the 1st and 2nd lien holder (normally the bank holding your mortgage) cannot come after you for loses after approving a short sale.. last year a new California law banned it.  But if the bank forecloses, then the 2nd lien holder can come after you for a judgment.  So completing a short sale in today’s seller’s market is the way to go.

Home Buyers – Unfortunately due to the lack of inventory, you will be competing with other home buyers on the few available properties.  The reality is that you will have to overbid on most properties.  But the good news is that you will not have to overbid by much because home values will not increase by much.. maybe a few percentage points but nothing drastic.  They will continue to stay very affordable.  In most areas of West Contra Costa County, SF Bay Area, CA, buying is cheaper than renting.  I’ll be making another video this coming weekend explaining why prices wont go much higher and what you as a buyer can do to increase your chances of getting your offer accepted. 

Real Estate Profesionals – It is going to get very tough out there.  The National Association of Realtors came out with a statistic that in the next 18 months, 70-80% of ALL brokerages currently in business will go out of business.  I’m already seeing it here in my area with several mid-size brokerages falling apart.  The reason is due to lower volume of sales, running a mid-size brokerage is too expensive.  The ones that will last are small mom and pop shops and large brokerages such as Security Pacific Real Estate (visit  So what should be your 2012 business plan?  Get realigned with a strong brokerage that will last through the housing market.  And don’t forget to network, network, network.

Marc Guzman