The Original Post is Located Here: Church Loan Modification

Loan Modification expert reacts to Obama News

The Original Post is Located Here: Loan Modification For Second Mortgage

Sunny Isles Real Estate Agents-Foreclosure & Short Sale Experts

If you’re in the market for Miami Beach or Sunny Isles real estate, there are many options to help you find the best deals on some of the hottest properties.  As the economy continues to struggle, many people are faced with foreclosure or short sale of their homes.  This can be a difficult and embarrassing time for any family.  It’s important to find real estate agents that can help guide you through this process to help protect your interests.  Whether you’re the seller or buyer in these situations, the experts at Sunny Isles can help you enjoy a smooth transition in these more difficult transactions.

There’s no doubt that foreclosures and short sales aren’t ideal for anyone.  In the case of foreclosure, the homeowner faces financial disaster and the lender will lose substantial money in the process; when it comes to a short sale, the homeowner will be better able to protect their financial situation and the lender will still face losing money.  The opportunity to make some of the money back on these transactions comes from a future buyer of these properties.  For anyone in the market for property, it’s a good idea to consider purchasing a foreclosed property to get a better deal.

Foreclosures can be difficult to deal with for newcomers to the market.  Finding an expert agent like the ones at Sunny Isles will help protect your interests and ensure you find a good property at a great deal.  It can be confusing to deal with these unusual scenarios, but with it becoming more common in today’s economy, more agents are able to become more knowledgeable about the intricacies of the market.  If you want to get into the market in the Miami area, foreclosures can be a great way to find a property that would normally be out of your budget at a price you can afford.

Short sales and foreclosures have become more common in today’s unstable economy.  It’s no wonder that so many buyers have decided to get into the market with a discounted property that was foreclosed upon.  With such a confusing market, it’s a good idea to turn to an expert at Sunny Isles to help guide you through the process of buying a property in this highly desirable area.  It’s never been so easy to get a great property at substantial savings thanks to the opportunities of foreclosure and short sale.  

About the Author

Sunny Realty of South Florida features technologically advanced and Internet savvy realtors. They specialize in Sunny Isles real estate, Miami real estate and luxury condominiums. SunnyIslesMiamiRealEstate.com provides instant access to the best in Miami Beach condos

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Foreclosure Solution – Shortsale Miami Beach

The Original Post is Located Here: Short Sale Miami Beach

Pros and Cons for Homeowners in Massachusetts and New Hampshire Participating in the HAFA Short Sale Program

Short sales are confusing enough, but let’s throw a new program into the mix.  It’s called HAFA.  Now to not confuse you even further, I’m going to talk about the good old regular HAFA program and not the Freddie Mac/Fannie Mae HAFA short sale program.

Homeowners need to be aware of the pros and cons of the HAFA program.  I received two calls this week from agents who were furious when their short sales were approved the lenders “kept the right to pursue the deficiency” and gave no relocation assistance.

Here’s why:

SECOND lenders do not have to participate in the HAFA program so even though it’s Chase or Wells or whoever the second lender is and they independently participate in the HAFA program as a second lender on the property they do not have to comply with the HAFA program.  The agent’s going into these short sales didn’t realize that.  Not only were the agent’s furious about the homeowners, the lenders in both cases CUT the commission to get an approval.  Imagine that?  A short sale lender cutting an agent’s commission?  Well THERE’S something you don’t see every day right?  WRONG!!

So let’s go over the basics for the HAFA program.

The PROS:

If you only have ONE mortgage and that mortgage company is a participant and approves your short sale there are some PROS:

1)      You will be released of the deficiency (the difference in the accepted offer to what you owe- for example you owe $225,000 and someone offers $175,000 you will be released of that $50,000 deficient amount.  The lender will not go after you)-This doesn’t mean you won’t have tax liabilities.

2)      You can get up to $3000 in moving expenses.

3)      The lender will need to respond in 10 days to the buyer’s offer-THIS DOES NOT MEAN you will GET AN APPROVAL in 10 days.  They just need to respond and a response is, “Hey we’ve received it and we’re looking at it”

Those are VERY strong reasons to attempt a HAFA short sale if you QUALIFY! So let’s see if you actually qualify….

These are some of the qualifiers for HAFA:

1. Property must be the homeowner’s primary residence.- No investment or second homes will be considered. “The property is the borrower’s principal residence, except that the property can be vacant up to 90 days prior to the date of the Short Sale Agreement (SSA), Alternative Request for Approval of Short Sale (Alternative (RASS) or DIL Agreement if the borrower provides documentation that the borrower was required to relocate at least 100 miles from the property to accept new employment or was transferred by the current employer and there is no evidence indicating that the borrower has purchased a one- to four-unit property 90 days prior to the date of the SSA, Alternative RASS or DIL Agreement.” [From the Supplemental Directive]
2. The first mortgage must have originated before 2009.
3. Mortgage payments must be delinquent OR default is reasonably foreseeable.
4. Unpaid balance is not more than $729,750.
5. If a homeowner hasn’t applied to HAMP the servicer will require a completed Request for Modification and Affidavit along with verifiable financial hardship evidence that the homeowner’s financial situation meets the 31% income eligibility requirement.
6. Homeowner’s TOTAL monthly payment PITI-(principle, interest, taxes, insurance and HOA dues) MUST EXCEED 31% of their GROSS MONTHLY INCOME.

Ok. Great.  You qualify and you’ve applied to HAFA and are enrolled in the program:

Here are the CONS:
 1) Mandatory deed in lieu – The homeowner is required to sign a deed in lieu requiring them to hand back their house to the bank if the home doesn’t sell.  This is the number one reason I would never have a homeowner sign up for HAFA – a Deed in Lieu is a “friendly foreclosure” and reports on your credit report very similar to a foreclosure

            2) 120 days.  You have 120 days to sell your home through HAFA from when they MAIL you the SSA (Short Sale Application) – If you don’t sell your home in that time, refer to #1.  You agreed to a friendly foreclosure – deed in lieu.  You MAY be given additional time to market your home, but don’t bet on it.

            3) Your lender will set the price for the property.  A BPO is done PRIOR to listing the property. The BPO agent is hired by YOUR LENDER and if that BPO agent is not experienced with the home market in your area you could be in trouble.  They are not responsible for the accuracy of the list price and have no responsibility to you in the event the property is not sold.

***Side note: Last week I got a call from a homeowner who had Bank of America as a lender and had NO idea she had enrolled in the HAFA program.  Her agent had not fully explained what was going on and she didn’t know what she agreed to.  She asked me to buy her home.  Now we buy short sales.  We love short sales, and that’s what we focus on for investing but we cannot buy every short sale and we have to qualify them.  I immediately called her agent and spoke to him.  He informed me the lender set a price of $177,000 for the property.  They got one offer in for $120,000 in which I’m sure you can guess the outcome.  They (BOA) denied the offer.  The home needed a tremendous amount of work.  It’s value really was closer to $100,000 with all the repairs it needed and the location didn’t help it’s value.  I explained to her we could not buy it because we would be no where near an acceptable offer for BOA.  It was heart breaking to explain to her that if she didn’t get an offer, she would likely be looking at the deed in lieu****

4) HAFA is a set of guidelines.  It’s not law, so if the lender doesn’t follow protocol, there really isn’t a legal action that can be taken.

            5) Each participating lender develops their own written policy, consistent with investor guidelines, that describes the basis on which the lender will offer the HAFA program to borrowers. You do not get to see the guidelines. However, the  guidelines are submitted to the government. So how are you to seriously know if the guidelines have been broken?  Makes a LOT of sense huh?

            6) Servicers may amend the terms of the SSA in accordance with investor requirements – Basically this means lenders can do whatever the heck they want and well, then why would anyone consider HAFA?  Lenders do whatever they want with a good old traditional short sale and you don’t have all the other negatives.

            7) Homeowners must make partial mortgage payments through the process.  These payment amounts are determined by your lender.

            COMMISSION ISN’T PROTECTED – This one is really for the agents out there.  I think that’s why the agents we work with really like us.  THEIR COMMISSION is PAID IN FULL.  Here’s the thing.  If a second lender wants commissions slashed to approve the short sale within HAFA your commission is not protected at 6% and then it truly isn’t a HAFA short sale as the agents we spoke with this week found out.

The reason I wrote this is because of the two agents who worked very hard on what they believed was a HAFA short sale releasing the homeowner of any deficiency and allowing a $3000 moving credit.  Their frustration with the 5-6 months they wasted only to have the end result be similar to a traditional short sale was evident. PLEASE keep in mind second lien holders DO NOT necessarily participate in the HAFA process EVEN if they area HAFA approved lender.

We purchase MULTIPLE short sales and don’t put offers on any HAFA short sale property because we don’t believe in having a homeowner sign a deed in lieu to be part of the program.  I am not saying the program doesn’t have it’s benefits, but homeowners, agents, and everyone else involved need to know ALL the pros and cons before making a decision on how to short sale their home, whether through HAFA or a traditional short sale.

Maryann Little works with homeowners in preforeclosure.  Her company Rapid Property Relief, LLC focuses on preforeclosure acquisition and negotiation in New Hampshire and Massachusetts.  For more information go to http://rapidpropertyrelief.com.

About the Author

Maryann Little works with homeowners in preforeclosure.  Her company Rapid Property Relief, LLC focuses on preforeclosure acquisition and negotiation in New Hampshire and Massachusetts.  For more information go to http://rapidpropertyrelief.com.

The Original Post is Located Here: Short Sale My Home

Magic Peanut Butter – TALKING DOG BOOK CRITIC

The Original Post is Located Here: Short Sale Books

Will The Obama Making Home Affordable Program Help You?

President Barack Obama’s new mortgage relief plan, unveiled recently, aims to help up to 9 million borrowers qualify for more affordable mortgages and stay in their homes.

Still however, the million dollar question continues to linger in the minds of many homeowners. “Will it help me?”

Obama’s “Making Home Affordable” program is designed to work with lenders to modify the loan terms for up to 4 million homeowners and to refinance up to 5 million homeowners into more affordable fixed-rate loans.

Here are some questions and answers about the latest round of aid for homeowners.

A: How do I know if I qualify for the refinancing plan?

Q: Only homeowners in good standing whose loans are held by Fannie Mae or Freddie Mac qualify.

The property must be owner-occupied and the borrower must have enough income to make payments on the new mortgage debt.

Borrowers can’t owe more than 105 percent of their home’s current value on their first mortgage. For example, if your home is worth $200,000, your first mortgage can’t exceed $210,000. Borrowers with a second mortgage still can qualify as long as their first mortgage isn’t more than 105 percent of their home’s value.

Homeowners can’t take cash out during the refinancing to pay other debt.

Borrowers have until June 2010 to apply for the program.

Q: How do I know if my mortgage is owned by Fannie Mae or Freddie Mac?

A: Call your current lender or mortgage servicer. You can find the phone number on your monthly mortgage statement or coupon book.

You can also contact Fannie Mae at 1-800-7FANNIE and Freddie Mac at 1-800-FREDDIE from 8 a.m. to 8 p.m. EST. Or, go to http://www.fanniemae.com/homeaffordable and http://www.freddiemac.com/avoidforeclosure and fill out the online request forms.

Q: What borrowers qualify for the modification program?

A: You don’t have to be behind on your mortgage payments to qualify. Delinquent borrowers and current borrowers who are at risk of imminent default are both eligible.

The program applies to mortgages made on Jan. 1 or earlier. The mortgage payment including taxes, insurance and homeowners association dues must exceed 31 percent of the borrowers’ gross monthly income.

The property must be the homeowner’s primary residence. It can’t be investor-owned, vacant or condemned. Home loans for single-family properties that are worth more than $759,750 don’t qualify.

The program is voluntary, relying on a $75 billion subsidy to encourage mortgage companies to participate. Lenders must agree to reduce the loan payments to 38 percent of a borrower’s monthly income. After that, the government and lender split the cost of bringing the payment down to 31 percent.

Eligible borrowers will have to provide their most recent tax return and two pay stubs, as well as an “affidavit of financial hardship” to qualify for the loan modification program. In the affidavit, applicants will have to cite the reasons behind their financial woes, such as job loss or a drop in income. The government will then take steps to verify the information.

Borrowers are only allowed to have their loans modified once. The program runs through Dec. 31, 2012.

Q: What if I’m in bankruptcy or in active litigation over my mortgage?

A: That doesn’t necessarily keep you from qualifying for the modification program. And borrowers in active litigation can modify their home loans without waiving their legal rights.

Q: What do I do to get help?

A: For the modification program, call your lender or mortgage servicer to see if you’re eligible. For the refinance program, first find out if your mortgage is held by Fannie Mae or Freddie Mac. Then contact your lender, mortgage servicer or a mortgage broker for refinancing options.

Q: How soon can I get help?

A: Both the modification and refinancing programs start immediately.

Q: What if I don’t qualify for either program – is there any other way to get help with a mortgage?

A: Contact your lender or mortgage servicer regarding other modification programs or refinance options. Alternatively, contact a local housing counselor to negotiate with your lender or servicer, to help locate other local resources like rescue grants or loans, or to facilitate a short sale or deed-in-lieu of foreclosure if staying in the home isn’t possible.

A short sale is where homeowners sell houses for less than the amount owed on them, and the lender then considers the debt paid off. A deed-in-lieu of foreclosure is where the borrower gives the property to the lender to satisfy a delinquent loan and to avoid foreclosure proceedings.

Local housing counselors can be found at the U.S. Department of Housing and Urban Development’s Web site at http://www.hud.gov/offices/hsg/sfh/hcc/hcs.cfm.

Q: Do FHA, VA or USDA home loans qualify for modifications under the Obama Loan Modification Plan?

A: Mortgages backed by the Federal Housing Administration, Veterans Administration or the U.S. Department of Agriculture are being modified under other programs. The Obama Administration and Congress are working on legislation that would allow modifications of these home loans consistent with the Making Home Affordable program.

About the Author

Peter is pne of the nation’s leading experts on foreclosure prevention, loan modification and loss mitigation strategies. His firm The Loan Modification Network connects homeowners with a nationally recognized group of attorneys licensed in all fifty states to assist homeowners in forclosure preventioan strategies and loan modifications. Call 800-437-2185 or go to http://www.us-loan-modification.com to learn more.

The Original Post is Located Here: Short Sale Obama Plan

“Loan Modification for Investment Property”

The Original Post is Located Here: Loan Modification For Investment Property

When Your Home Loan Modification Fails it is Time to Look at a Short Sale!

Many homeowners are giving up on modifying their loans and are resorting to short sales to relieve themselves of the burden that their homes have become. In most cases, short sales are a great alternative to bankruptcy or foreclosure. There are some things you should know going into the short sale process.

A short sale is the process of selling a property for less than what is owed on the mortgage. Lenders are allowing this because it is a better choice for them to take a discount on the mortgage than go through the process of foreclosure and then having to sell a home themselves.

Obtaining short sale approval requires borrowers to document their financial hardship, submit financial documents and prove that they can no longer make their house payment. The hardship letter is a key part of this. Writing an excellent letter stating factually how your situation has changed for you financially and makes it no longer possible to sustain your mortgage is part of this package.

After you have been assigned a loss mitigator and submitted your documentation, the bank will then evaluate your situation and decide if they will grant you a short sale. Not all mortgage lenders offer short sales, nor do all homeowners or properties qualify for approval. To make things more interesting every lender’s process is slightly different as well.

Similar to an IRS audit, loss mitigators carefully review borrowers’ financial status to evaluate if they are financially insolvent or possess other assets which could be used to repay the loan. Borrowers are usually required to submit payroll documentation, previous years’ tax returns, list of income and expenses, property tax and homeowners’ insurance premiums, credit card and banking statements, and various other documents.

Another key element in the short sale process is getting a buyer for your home. You will need to list your home with a real estate agent, and I highly suggest that you choose your agent carefully, working only with one that is skilled at short sales and talking with banks. Once you do have a buyer, you will need to submit the purchase and sale contract to the lender as well.

In some cases and in some markets, a buyer cannot be located in the time allowed by the bank and lenders commence with foreclosure proceedings. When you are facing foreclosure, you need to sell your house quickly. This means it is time to seek out private real estate investors. Real estate investors are attracted to distressed properties because they are sold below market value and can often times be held and sold later for a profit.

Real estate investors typically buy homes with cash, increasing their power of negotiation. Locating an investor who purchases properties with cash can improve borrowers’ chance of obtaining short sale approval.

If you are behind on your mortgage, or the payments are just too much to take anymore, you should take time to consider short selling your home and weigh the pros and cons of this decision. Be should to contact your tax professional with any tax implication questions. The important thing to remember is that time is not on your side and ignoring the bank notices will not do you any favors!

Need more advice doing a short sale on your Seattle area home? Take the time to contact me and lets discuss your situation and what I can do to help you get your life back on track financially. I am an Now Pay Close Attention –

On the next page you will find loan modification specialists that have proven track records for helping homeowners modify their home loans and cut their payments in half ==>

So If you want to cut your mortgage payment in half and stop the banks from taking your home then I strongly recommend that you to read everything on the next page before it’s too late!

Visit this page ==> How To Modify Your Home Loan & Cut Your Payment By 50%Home Loan Modification Specialists

About the Author

Everyone’s using The Most Effective Loan Modification Specialists to get their home loans modified and you can too.

Click Here to learn how everyday people are modifing their home loans, stopping foreclosure and saving thousands.

The Original Post is Located Here: Seattle Loan Modification

A Guide On Short Sale Real Estate Investing

Short sale is a very simple way. A short sale occurs when the sale proceeds of a house fall short of what the owner still owes on the mortgage. Many lenders will agree to accept the proceeds of a short sale and forgive the rest of what is owed on the mortgage when the owner cannot make the mortgage payments.

The protections against abusive short selling are vital for issuer and share holder assurance and have endorsed prophylactic rules considered to curtail scheming behavior are held traditionally. It is one of the primary reasons for securities borrowing, without which, short selling would be impossible. Lenders have no interest in negotiation unless their payments are several months late. Another consideration is you may be held liable for taxes on the difference between the sale amount and the original loan amount. Short sales require nerves of steel.

Including different costs and risks of shorting, as well as legal and institutional restrictions and allowing stocks to be overpriced are the constraints of short sale. Make a guide of expensive stock leading to consequent low returns. The portion of mortgage of higher price of a home provided buyer willing to buy the property when the lender agrees transpires short sale. The difficult purchaser real estate business deal to agree, involve as much, and no more paperwork than an original mortgage application. The seller already owns the item at the time of the short sale. Short sales of securities are not registered on an exchange and connections in securities covered by paragraph that are resulted in the OTC market. However, they are not subject to rule. These are also used in strategies of hedge a situation in another security or a linked economic utensil.

Short sale in real estate is not always present transaction. Negotiating a lower price for a home than what is owned to the bank in a short sale of real estate. The sale of a house proceeds the fall short of the owner until owes the mortgage. To accept the proceeds of a short sale and forgive the rest of other. What is owned on the mortgage when the trader cannot make the credit payments. This is agreed by many lenders. The lender avoids a costly foreclosure and the owner can pay off the loan for less than they owes are made by recognizing a short sale.

Short sales came into the view of credit report as “pre-foreclosure in redemption”, but not as “debt discharged due to foreclosure”. The difference between the amount owed and the amount paid will not legally pursue a borrower but the lender has no guarantee who accepts a short sale. This amount is known as deficiency in some states. The mortgage debt is fully discharged. The prices of stolen stock are minus commissions and expenses for purchasing the stock so the profit is the difference between the prices of the stock. The potential losses are unlimited when the prices of the shares increase.

About the Author

Nick Cifonie, a long-time real estate investor, speaker and mentor gives an explanation about wholesaling, retailing, subject-to real estate investing, rehabs, lease options and many other strategies. For more information, log on to the website http://www.REI-TV.com
Insiders Guide to a Successful Short Sale Part 1 12-5-09 Future of Real Estate TV-Radio Show

The Original Post is Located Here: Short Sale Guide

Getting A Loan Modification While Unemployed – How It’s Done!

It used to be a basic expectation if you were applying for a loan, you had to be employed. Today, in a time of economic unrest and government support offered to lenders, there is a lot more leeway when it comes to giving loans, and unemployed applicant may find themselves approved.

Job lose is much more common and homeowners who are unemployed are wondering if their applications for loan modification will be approved. Actually, it is more difficult for unemployed homeowners to have their loans approved by lenders and the difficulty increases the longer the homeowner has been without work.

If you are unemployed and you need a loan modification in order to keep your family in their home, you are not alone. In the United States unemployment is on the rise and the entire country is feeling the effects. You are fearful of foreclosure. There are options available to you. Since unemployment is such a common occurrence, the Home Affordable Program strongly encourages banks to work with homeowners.

The truth is that mortgage lenders are mainly concerned with your debt to income ratio as the determining factor in getting a loan modification. You will have a better chance of getting approved if you are getting unemployment checks. If you do are not getting any compensation, you still have a chance.

It might be beneficial to wait to apply for a modification until you at least have something hopeful in the future or have had a job interview. The lender is already losing money when a loan modification is granted and if there is suspicion that you are not going to be able to pay your mortgage, the bank will be very hesitant. You can apply for a modification up to 30 days before the foreclosure date, so if you wait a little while, you might improve your chances.

Rarely a lender will approve a loan modification while the homeowner is unemployed. When this happens, the homeowner has met the qualifications set by the bank to a T and has an excellent work history. Your chances of this happening are much better if you have worked for a company for a long time than if you worked there for only a few months. Work history is as important to the bank as it is to future employers, as it directly affects the possibility of getting a new job.

Whatever you situation, if you are unemployed, being approved for a loan modification is not going to be easy. Even unemployment checks may not meet the requirements of your lender. In normal circumstances it is difficult to get a loan modification approved, without a job, it is even harder. You can always try; you never know what is going to happen.
About the Author

For essential tips and facts about how to get approved for a Mortgage Modification, Visit our simple, no nonsense loan modification guide and resource: http://MortgageModificationLoan.net/

The Original Post is Located Here: Application For Loan Modification