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Were you in foreclosure in 2009 or 2010? Important Announcement Information

Posted in Welcome by Administrator on the October 6th, 2012

Were you in foreclosure in 2009 or 2010?

2009-2010 foreclosure help

2009-2010 foreclosure help- Federal Government review of Foreclosure filings.

Help for Homeowners in foreclosure during 2009 thru 2010

 http://bcove.me/izfwpunb -the Federal Governments Video explanation.   

www.IndependentForeclosureReview.com This is the site that you need to review in order to make sure that if you were foreclosed between 2009 and 2010 that you have the right to make sure that your file was handled properly.  You must apply for review before 12-31-2012 so please make sure that you do get the Free review in case you are entitled to part of the monies set aside for reimbursment by the government for wrongful filings.

Help for Homeowners during 2009-2010

Federal reserve video vault-  You can find Spanish and English video information to help you understand what is happening with the help for homeowners during those years.

You must file by 12-31-2012 in order for the federal govenment to be able to review your situation whether you are still in foreclosure or your home has already been sold at sheriff’s sale.  It is to your benefit for the government to review your file and make sure you were properly foreclosed upon.

Short Sale Outcomes why Loan Modifications don’t solve the problem

Posted in Credit Notes,Financing- Loss Mitigation,Real Estate,Welcome by Administrator on the September 20th, 2012

I have listened to recorded countless videos on how to convert homeowners off of loan modifications and into short sales. The basic reality that needs to be understood by both homeowner and agent is that when ANY paperwork is done on or for a short sale there is a 99% chance that there will either be a short sale or a foreclosure in the future.

Why?

Simple, excluding the 1% that hit the lottery and the homeowner gets a full rewrite or recast or even possibly an equity reduction on their existing loan terms, the reality is that they won’t!

It is just basic math.

If 99% of loan modifications do not convert to full new loans, why then do the banks keep pushing for them, why do agents help homeowners and why do homeowners want them?

Banks want information, Agents want to help homeowners and homeowners want to stay in their homes.

Here are the possible outcomes:

2, 5 or 10 year adjustment of terms and rate. This is the best case scenario when requesting a new loan modification. The horrifying reality is this, even if the homeowner makes every single payment they will eventually hit the end of the terms.  99% of these loans will not modify for a second time and all the homeowner has actually done is delay the inevitable sale of their home. To qualify for the longer term adjustment depends on the original loan. Basically the better the original loan the better the offer on the loan modification. A loan modification will always meet an end to its terms. Further it will correct the delinquent payments on their credit and in most cases becomes a short term fix for a long term problem need a very real solution
Trial loan modifications. There is a possibility of a trial loan modification becoming a short term loan modification. However the stats on homeowner not making payments even on trial loan modifications is staggering. The reality is simply this, if a homeowner gets a trial loan modification there is a 90% chance that it will go back in default (missed payment).

So the current market has created the band aid effect to get us through an election period and hopes that the economy and employment will magically all turn around.

Homeowners are trying hail marry passes to get to stay in their home and the banks/government are freezing the sale of REOs in an attempt to inflate home prices.

I still teach, preach and push this basic thought: Write it off, take the loss and move on! It’s a financial decision. Too much debt, too little income. Within 2 years, Short sale owners are able to go right back into the same bank they settled with 2 years ago and make an application for a loan… and get a mortgage approved. (Interest rates and Down Payments might be higher, but not much as you’ve settled to the terms of your previous loan by assisting in the sale of the property). You might find yourself gravitating back to the old neighborhood just in time to buy the neighbors property at current values.

Q and A- General Real Estate Questions

Posted in Real Estate,Real Estate- Q & A,Welcome by Administrator on the September 10th, 2012

Q & A

Real Estate Simplified

Inherited homes-  Repairs or mortgage payments can make inheriting a home a problem

Q: Mother-in-law gave my husband and Siblings her home before she passed. It is paid off, and there is no mortgage in this case. It needs repairs, but none of us can afford to pay for them.  If we have bad credit between all of us- What can we do with the home? – Louann G.

A: Even with good credit, it sounds as if no one could get a typical bank mortgage loan on the house in its present condition but check into FHA lending which has relaxed guidelines and you may be in for a surprise. I wouldn’t advise trying to fix the place up if you can’t get renovation funding from an FHA 203k loan (The Borrower would have to occupy, in this case).

Your 1st choice is to put the house on the market “as is”, at a bargain price, for an all cash payment.   There are always investors looking for fixer-uppers.

2ndly, hold out for an FHA 203k Buyer (Owner-Occupant) that can roll purchase and repairs costs into one loan.

3rdly, call a few real estate agents for advice.  If you find one that is interested in partnering with you or putting you in touch with a Rehabber you may be able to cut a deal for each others contributions to the renovation of the property and subsequent Sale.  (Use an Atty. as this is a complicated transaction).

Is it Illegal not to pay rent for years?

Q: I moved into an apartment in 2010. In the summer of 2012, my landlord wrote us a letter stating that he was no longer the owner of the property and the new owner would contact us. In case we needed to call, we were given a name of a bank and a phone number, which led me to believe this was a foreclosure or simply a case of throwing in the towel.

I tried calling the bank, and they wouldn’t speak to me because my name was not attached to anything. It is now April of 2012, I am still in the house, and I haven’t paid rent in two years. I’ve maintained the property (paid the heat and hot water that I previously was not responsible for, invested in a lawn mower and regularly taken care of the lawn and garden, replaced the washing machine, paid to have the dryer fixed, paid to have some plumbing fixed, etc … ).

I am basically a homeowner without a mortgage. I can’t figure out who pays the water or who pays the taxes. I’m just kind of at a loss of what is going on right now, but I’m just riding with it. Am I doing anything illegal?

A: Possibly a legal advisement is to have been stashing away the rent in a special account until you found out who was entitled to it.  And, of course, that would have to take into account the utilities and maintenance you’ve assumed responsibility for.

You could search the public records and the tax office to determine who owns the property, or have a lawyer do it for you. I suspect, though, that in your shoes, a lot of people might continue “just riding with it.”

Wells Fargo is helping move damaged REO properties by donating them to renovaters that will rehab and resell

Posted in Lender News Reports,Welcome by Administrator on the August 16th, 2012

Through the REO program, Wells Fargo donates foreclosed homes to Rebuilding Together affiliates in eight cities. Participating Rebuilding Together Affiliates are in the following cities: Baltimore, Los Angeles, Oakland, Philadelphia, Providence, St. Paul (Twin Cities), Tampa, and Washington, DC.  Our City of Chicago could use a similar program to help blighted areas which were once viable growing areas.

Each Rebuilding Together Affiliate then renovates the donated REO property and works with a real estate agent to sell the home to a buyer that is between 80-120% of the area median income (AMI). As part of the initiative, buyers are also required to complete a Homebuyer Education class and show a certificate of completion before closing.  The buyers also must live in the home; homes cannot be sold to an investor or rapidly resold to capture profits.

Once the home is sold, the proceeds from the sale are returned to the Rebuilding Together affiliate’s operating fund, allowing the organizations to continue to make critical home repairs for homeowners in need.

“We are so grateful to Wells Fargo for helping Rebuilding Together establish the REO program as a way to transform REO properties back toward viable homes in stable communities, while helping low- and moderate-income families obtain safe, healthy and affordable housing,” said Gary A. Officer, President and CEO of Rebuilding Together, “The sale of these properties can provide critical income to support Rebuilding Together Affiliates in their core mission work.”

In 2011, Wells Fargo Housing Foundation programs delivered a record $23.4 million, 697 discounted and 1245 donated properties to support local affordable housing and community revitalization programs.

“Wells Fargo is proud to support the work of Rebuilding Together to help create affordable and sustainable housing opportunities for low-to-moderate income families,” said Kimberly Jackson, head of the Wells Fargo Housing Foundation.

The first home to be sold under the program was in Philadelphia, PA where the affiliate renovated the home in the Greater Northeast neighborhood and sold it to a first time home buyer who is also a police officer candidate.

In Tampa, FL the home donated by Wells Fargo sold within three weeks of it being donated to Rebuilding Together Tampa Bay.

Rebuilding Together Twin Cities also has renovated its first house in Richfield, MN through the program and put it up for sale.  Rebuilding Together- Twin Cities has plans to renovate and sell a total of four homes this fiscal year.

In addition, Wells Fargo has made grants to other Rebuilding Together affiliates (Milwaukee and New Orleans) for the purpose of rehabilitating and/or purchasing REO properties (Roanoke and Sacramento) as part of their asset building strategies and to support the mission of their local organizations.

ABOUT REBUILDING TOGETHER Rebuilding Together believes in a safe and healthy home for every person. Rebuilding Together provides critical repairs to an existing home, addressing both structural issues and those that affect the health of the homeowners. House by house, block by block, we work with our nearly 200 affiliates & 200,000 volunteers, who are skilled tradesperson’s, corporate partners and everyday citizens, to repair homes, to stabilize and revitalize communities. For nearly 25 years, we have seen the benefits when people remain in their homes: lives are improved and communities are revived.

For more information: www.RebuildingTogether.org. You can also follow Rebuilding Together on Twitter @rebldgtogthr or become a fan on Facebook at Facebook.com/RebuildingTogether.

About Wells Fargo Wells Fargo & Company (NYSE: WFC) is a nationwide, diversified, community-based financial services company with $1.3 trillion in assets. Founded in 1852 and headquartered in San Francisco, Wells Fargo provides banking, insurance, investments, mortgage, and consumer and commercial finance through more than 9,000 stores, 12,000 ATMs, the Internet (wellsfargo.com), and has offices in more than 35 countries to support the bank’s customers who conduct business in the global economy. With approximately 265,000 full-time equivalent team members, Wells Fargo serves one in three households in the United States. Wells Fargo & Company was ranked No. 26 on Fortune’s 2012 rankings of America’s largest corporations.

Wells Fargo’s vision is to satisfy all our customers’ financial needs and help them succeed financially.

SOURCE Rebuilding Together

Loan Modifications information reference site

Posted in Credit Notes,Financing- Loss Mitigation,REO -Lender Owned Properties,Welcome by Administrator on the December 18th, 2011

One of the best web sites I can refer people to on the subject of Loan Modifications and Short Sales is at http://Honish.com.  It’s an eye opener and training ground for handling the banks when it comes to settling debts on an upside down mortgage transaction.

 

If you or someone you know is in the middle of or considering defaulting on their mortgage-they need to read up and this site is guaranteed to have insightful tips on conducting the safest ways of dealing with a mortgage debt collector.  If you should decide to Short Sale after reading the materials provided on this site.  Please give us a call to discuss further what the benefits and outcome in your particular situation could be.

Cook County stops evictions on some lenders

Posted in Welcome by Administrator on the November 1st, 2010

Lenders are having to stop and review their foreclosure files after it was brought up that some are not checking their work. Bank of America actually suspended foreclosure sales across America until they could verify their processes are being adhered to. approx 35 lenders were mentioned including Chase, JP Morgan & many other large institutions.