Short Sales in Palm Beach County Florida: Foreclosure Alternatives in Palm Beach County Fl

Check out this great MSN video - Why keep paying the bank?

2012-01-19T17:38:00.002-05:00

Check out the video and the accompanying article.

Click on the video below.

Will the Govt. force you to declare bankruptcy as a result of a short sale?

2012-01-13T17:39:00.001-05:00

Short sales are becoming more common, banks are becoming more accommodating, and the process has shortened up quite a bit…but that could change if the tax break that currently does not force homeowners who do short sales to claim the forgiven debt on their tax returns is not extended.

On December 31st, 2012, the Mortgage Debt Relief Act, also called the Mortgage Forgiveness Debt Relief Act, will expire if changes are not made to the legislation. When this happens, the “deficiency”, or difference between what your bank ‘nets’ on your short sale and what you owed, if forgiven, once again, will be viewed as taxable income.

This will make short sales far less attractive to nearly every distressed property owner. And it could slow down the short sale market long before the end of this year, because “short sales take a while to get approved. If there isn’t an extension of this legislation by June or July, there probably won’t be as much incentive to do short sales in the latter months of 2012 as short sales with some lender can exceed six months from start to finish.

Additional fallout could take the form of more strategic defaults once short sales are no longer an option, warn analysts. If homeowners stand to lose money in the form of additional taxes on the “forgiven” debts on their homes, they may simply opt to walk away from the property at some point. Of course, in the case of strategic defaults – or other forms of foreclosure as well – lenders can pursue the delinquent borrowers for the difference between the amount that they owed on the property when they stopped paying and the amount the lender was able to make when the property was sold. These debts are often difficult to collect, but some lenders opt to wait years before pursuing them in the hopes that former homeowners to get back on their feet and once again have some assets to go after.

Some banks sell the debts to third-party collections companies. Even if this part of the debt is ultimately written off, it can create tax problems years down the road for homeowners because when the debt is written off it may be considered income to the homeowner.

We are hoping that the Mortgage Debt Relief Act will be extended long before it expires on December 31 of this year. If the legislation is not extended, many homeowners may be forced to declare bankruptcy in order to avoid paying income taxes on their “forgiven” debts.

If you are in a position where you think a short sale may be an option for you, please give me a call sooner rather than later.

Thanks…Steve Jackson

561-602-1258 – Direct

email: ShortSale@thejacksonteam.com

Are you “choosing” foreclosure?

2012-01-12T06:43:00.001-05:00

It frustrates me to see homeowners continue to stick their head in the sand and choose foreclosure. Yes, I said CHOOSE!

Foreclosure is a choice made by uninformed homeowners who have simply given up. No matter how frustrated you are or how grim the situation has become, foreclosure is almost never the right choice.

Below I’ll explore a number of ways to avoid foreclosure:

1) Loan Modification

A loan modification is an adjustment to the original loan terms agreed upon by the lender and the borrower. There are three areas that can be adjusted:

1 Interest rate (lowered either temporarily or for the life of the loan)
2. Length of the loan (extended to 40 years!)
3. Principal owed/Principal reduction (this is the least likely to occur)

Loan Mod Requirements

You will need to provide extensive documentation to prove why you need a modification. Your bank will go through a credit check, run an income vs.. expenses analysis, and then will do an appraisal on your home.

By most accounts, the loan modification programs, the most popular one was HAMP (Home Affordable Modification Program), many called it the “Obama plan,” have been an absolute failure. The criteria to qualify for one of these programs continues to change and most borrowers who have attempted them have been denied.

And those who were approved many times did not get approved for terms that would allow them to keep their home long term. That is why the re-default rate is over 50% within 12 months after a loan modification.

Our position on Loan Modifications has never changed: If your financial hardship is temporary and the savings from the loan modification will enable you to keep your home, then this is a viable option.

What to Watch Out For: Trial modifications that entice you into paying 3 straight payments and then once you do, they deny you for a permanent modification. But a crucial thing to watch for is when you are in a month over month holding pattern and keep getting told that your file is being reviewed the bank is moving forward with a foreclosure action!

2) Refinancing

If you are upside down, where you owe more than your home is worth, then the only chance to refinance will most likely be through the Home Affordable Modification Program (HARP). The Obama administration recently loosened the requirements to get into HARP in an effort to assist more underwater homeowners.

HARP Requirements:

Your loan must be guaranteed (owned) by Fannie Mae or Freddie Mac and have been since prior to May 31^st 2009.
You must be current on your existing mortgage and current for the prior 6 straight months
You can only have 1 late payment on your mortgage in the last 12 months

Contact your existing lender to see if they are participating in HARP.

HARP can be a long term solution if a homeowner can get into a lower payment they can afford. However distressed homeowners need to remember that this does not solve the fact that the home is underwater. In addition, it pushes your loan out 30 years again.

What to Watch Out for: Be on the look out for loan modification and refinance scams. Any time the media shines the light on some of these programs, scam artists try to take advantage of distressed home owners. Never pay any up front fees of any kind or any fees throughout the refinance process!

3) Forbearance

Forbearance is a special agreement between the lender and the borrower to delay a foreclosure and come to an agreement as to how missed payments (and associated fees) are to be paid back.

Is Forbearance Right for You?

Forbearance should only be used for a temporary financial hardship. If someone has a more long term hardship such as unemployment or underemployment then this is not a good option. The lender will not agree to forbearance unless the terms are favorable to them which may include a lump sum payment or tacking on any missed payment to the back end of your loan. Remember all of those payments that you don’t make get ADDED onto the end of your loan.

What to Watch Out for: Trying to obtain forbearance because you can no longer afford your home and you are upside down is a bad idea and only makes you further upside down.

4) Bankruptcy

Bankruptcy is the legal status of an insolvent person or business that cannot repay debts owed to creditors.

Is Bankruptcy Right for You?

Bankruptcy does not stop a foreclosure forever. But it will delay it and it may eliminate the responsibility for the deficiency balance on your mortgage.

Bankruptcy Requirements

Income and assets guidelines dictate if an individual or a household would qualify for it. If a foreclosure date does not allow for enough time to find another place to live, there are additional liens on the property that would prevent the home to be sold on the open market, or you are concerned that the bank will come after you for the difference, than a bankruptcy may make sense.

What to Watch Out For: Bankruptcy has the worst possible effect on your credit and should only be used when absolutely needed.

5) Deed in Lieu of Foreclosure

A deed in lieu of foreclosure occurs when a borrower conveys all interest in their property over to the lender to satisfy the loan that is in default and avoid foreclosure proceedings.

Is Deed in Lieu of Foreclosure Right for You?

A deed in lieu of foreclosure, is basically a “voluntary foreclosure,” since you are essentially handing over the property to the bank without them having to go through the actual foreclosure process. While a deed in lieu is easier than foreclosure, the only party who will reap the benefits of this program is the bank. The credit implications and impact on your ability to borrow money in the future are identical to a foreclosure. It is not looked upon favorably.

What Are The Deed in Lieu of Foreclosure Requirements?

Like many foreclosure alternatives, there is a long list of requirements that prevents many people from qualifying for a deed in lieu of foreclosure.

For example, other liens and mortgages may limit this option, and a true hardship must exist. Since the bank is not in the business of owning properties they will only consider this option if the loan is in default and they truly believe they will have to foreclose if they do not agree to it.

Lenders prefer short sales over a deed in lieu because with a short sale they don’t have to take over the property. Even under the Treasury’s HAFA program you are required to first attempt a short sale and if that fails after 120 days then you can apply for a deed in lieu of foreclosure.

What to Watch Out for: A deed in lieu does not automatically forgive the deficiency balance on the loan. Just like with a short sale you need to be sure the language in your Deed-in-lieu agreement waives any deficiency balance.

6) Short Sale

A short sale is the process of selling a home through which the lien holder(s) agrees to settle for less than they are owed.

Any unpaid balance owed to the creditors is known as the deficiency which, if negotiated effectively, is forgiven.

The main reasons our clients opt for a short sale over the other options are: debt forgiveness, credit impact, ability to purchase another home more quickly, the likelihood of a continued depressed housing market, selling with dignity, and moving in a more predictable and controllable timeframe.

We have found that many distressed homeowners will attempt some of the above methods such as loan modification, forbearance, and then leave a short sale for last. Then once the short sale is complete almost all of them wish they had done the short sale from the beginning!

Please…don’t wait until you get the “notice of foreclosure sale” served to you…give me a call now, we’ll discuss what your best option is and how to accomplish it. My direct line is 561-602-1258.

Thanks for reading, Steve Jackson

Foreclosure/Short Sale…1099 differences

2012-01-12T05:37:00.001-05:00

The following is from a great blog post entitled; IRS Form 1099-A, 1099-C and the Cancellation of Debt in Foreclosure on The Accounting Consortium blog:

Okay, so misinformation and confusion about the tax implications of foreclosure arising from the cancellation of debt seems to be piling up. In particular, folks seem most confused by the receipt of Form 1099-A from lenders who have taken property back in foreclosure.

First, remember the basic principle: Cancellation of debt MAY result in taxable ordinary income.

Second, because a foreclosure is viewed as a “sale of property,” if you let real estate go in foreclosure and it results in a cancellation of debt, then that foreclosure may be a taxable event.

There are three exceptions:

1. First, if the property lost in foreclosure is a principal residence-literally the home in which you live-then the cancellation of the debt (“COD”) generally won’t be taxable. This is a result of the Mortgage Forgiveness Debt Relief Act of 2007.

2. Second, if your are “insolvent” at the time that the debt is cancelled (not at the time of the foreclosure, but more on this below) then you will not be taxed. Insolvency is a simple balance sheet test: If your liabilities exceed your assets, you are insolvent. Don’t over think it. You will have to submit IRS Form 982 with the tax return in the applicable year in order to demonstrate that insolvency.

3. Third, if the debt is cancelled as a result of a bankruptcy filing, then there is also no tax. (This is one of the reasons I call bankruptcy “the ultimate mortgage modification tool.”)

So what about this Form 1099-A business? Form 1099-A is the form that the lender sends you (and the IRS) that documents that the lender has accepted real property in partial satisfaction of a secured debt. It does not create the tax liability. It is not documentary evidence of cancellation of debt. It is a tax neutral document.

The document that causes the problem is the IRS Form 1099-C. This is the one that tells you that the bank has cancelled the debt. It has two effects: First, it can be used as evidence in a later lawsuit by the lender to refute an allegation that the debt is still due and owing. It is not proof; it is just evidence, or as lawyers like to say, it is “probative but not dispositive.” Second, it will likely give rise to the possibility of a taxable event precisely because it constitutes a statement by the lender that the debt has actually been cancelled. (The above exceptions still apply, but how you need to deal with the problem will change.)

Remember: Foreclosure doesn’t ‘per se’ cancel the debt; it merely satisfies that part of the total debt which is equal to the value of the property.

Here’s the down and dirty of it: You are not likely to receive a Form 1099-C from a foreclosing lender on a recourse obligation because they want to hold out the possibility of recovering a deficiency for as long as they can. (Assuming, of course that the anti-deficiency laws allow it…But that’s a whole different topic that I won’t get into here.)

So since only part of the debt is paid by the foreclosure, and since you’ve only received a 1099-A, without that 1099-C, the claim stays alive until it dies by some other means. Prudent tax pros generally counsel that it is wise to provide some sort of estimated liability if the property has been lost to foreclosure, and you still haven’t received her 1099-C. I tend to disagree with that somewhat, because there is no COD tax until the debt is actually cancelled, and the debt isn’t cancelled until the lender or the law says it is. Estimating the liability based on an assumption that recourse debt will be cancelled eventually may create a need to amend the return later if the lender comes after you. Of course, if the debt is unambiguously non-recourse, meaning that no deficiency is possible, then it makes sense to go the estimate route because the debt is now cancelled by operation of law.

Last, an issue related to this is the difference in bankruptcy dischargeability status between a mortgage debt owed to a lender, and an income tax debt owed to the government. They are not treated the same in bankruptcy: If you owe the bank and you file, then the debt is immediately dischargeable. But if you wait until you have filed the tax return and income tax on the COD (cancellation of debt) is actually assessed, then it is no longer as easily discharged in bankruptcy. Because back income taxes are not dischargeable until two years after the tax return was last due and ten months (approximately…it’s actually 280 days) after the tax is “assessed,” if you wait to file bankruptcy until after you have filed your tax return, you have converted an immediately dischargeable mortgage deficiency owed to a bank into a tax debt owed to the government that you will have to live with through that waiting period before you can dump it in bankruptcy… Capiche?

Because these problems involve the interplay between basic contract law, mortgage and anti-deficiency laws (all of which are state law issues), and federal tax law, these can be gnarly problems to sort out. Unfortunately, not many attorneys understand them, and not a whole lot of tax pros either. This is because no one’s ever lost money on a real estate investment before now. Well, that’s not really true of course, but we are seeing things that are changing history, and testing the limits of most general practitioners. If you think you may have a tax problem arising from a past or pending foreclosure, make sure you seek professional advice from someone who understands the issues. It will vary from state to state, due to the differences in anti-deficiency legislation.

If you would like to schedule a confidential meeting to explore your foreclosure avoidance options, please call me directly at 561-602-1258 or email me. SSinfo@thejacksonteam.com

Thanks for reading…Steve Jackson

Fannie Mae forebearance extension just announced

2012-01-06T17:15:00.001-05:00

Just this afternoon I received an email bulletin from Freddie Mac that give some relief to unemployed individuals having difficulty making payments on a Freddie Mac loan.

Here is a brief overview with a link to the actual Freddie Mac document I received:

Freddie Mac, (Bulletin 2010-17), is introducing new forbearance requirements to provide a “short-term
unemployment forbearance” relief option to assist Borrowers who are unable to make their Mortgage
payment due to unemployment. In addition, Freddie Mac is introducing an “extended unemployment
forbearance” relief option to provide an extension of the forbearance period if such Borrowers have not
regained employment after the short-term forbearance period has ended. Including these additional relief
options in our loss mitigation tool kit gives unemployed Borrowers an opportunity to retain
homeownership by providing Mortgage payment relief while they seek re-employment.

Servicers will have delegated authority to approve eligible Borrowers for a short-term unemployment
forbearance period of six months during which time the monthly Mortgage payment is either suspended
or reduced. If the Borrower remains unemployed at the end of the short-term unemployment forbearance
period, the Servicer must consider the Borrower for extended unemployment forbearance in accordance
with the Guide. If the Borrower meets the eligibility criteria for extended unemployment forbearance, the
Servicer must obtain Freddie Mac’s written approval before entering into an extended unemployment
forbearance plan with the Borrower.

EFFECTIVE DATE: Changes announced in this Bulletin are effective February 1, 2012 for all new Borrower evaluations for an alternative to foreclosure. However, Servicers may begin implementing the unemployment forbearance relief options earlier for all new requests for assistance in which an eligible Borrower’s hardship is unemployment.

If you have any question about Freddie Macs new plan, above, or any other questions regarding foreclosure alternatives, please pick up the phone and call me directly at 561-602-1258...or send me an email

Florida Hardest Hit Fund Info

2012-01-05T12:28:00.001-05:00

Program Fact Sheet

Background:
In February 2010, US Treasury (Treasury) created the “Housing Finance Agency (HFA) Innovation Fund for the Hardest-Hit Housing Markets” (HFA Hardest-Hit Fund) and allocated funds under the Emergency Economic Stabilization Act of 2008 (EESA) to five states: Arizona, California, Florida, Michigan and Nevada. The funds were allocated to these states because of their excessive housing market depreciation and to assist in foreclosure prevention efforts. In March 2010, Treasury allocated a second disbursement of $600 million to an additional five state HFAs based on high unemployment rates. On August 11, Treasury again expanded the HFA Hardest-Hit Fund to include a total of 18 states and the District of Columbia, and added an additional $2 billion. Florida received another allocation of funds, $236.8 million, from the third round of funding, which added to the initial allocation of $418 million, brought Florida’s total funding to $656.8 million. Most recently, on September 29, 2010, Treasury announced a fourth round of funding, awarding Florida an additional $401 million; this brings Florida’s total award amount to more than $1 billion.

Current Programs
Florida Housing Finance Corporation (Florida Housing) was directed by Treasury to use a portion of these funds specifically for targeted unemployment programs that provide temporary assistance to eligible homeowners.
These targeted unemployment programs are as follows:
• Unemployment Mortgage Assistance Program (UMAP) will provide up to six (6) months of payments (with a cap of $12,000) to the mortgage lender to assist unemployed/underemployed borrowers with their first mortgage until they can resume full payments on their own.
• Mortgage Loan Reinstatement Payment (MLRP) Program will be used to bring a delinquent mortgage current (up to $6,000) for a homeowner who has returned to work or recovered from underemployment.

A pilot program was implemented in Lee County, which concluded on March 18, 2011. Homeowners from across the state will be able to submit applications via the HHF website on April 18, 2011.

For additional information (including detailed eligibility criteria) and/or to apply for these programs, visit the HHF website at www.FLHardestHitHelp.org

Documents typically required for a short sale file to be submitted

2011-12-27T07:12:00.002-05:00

Below are just some of the documents lenders are likely to require when we submit a short sale file:

Financial Information

Tax information
- Two most recent 1040′s
- Two most recent W2′s
- 4506t
60 days of current bank statements (Updated every 30-60 days)
30 days of current pay stubs or commission check stubs (Updated every 30-60 days)
If self employed-pay stubs or YTD profit and loss statement
Monthly budget/financial statement

Hardship information

Hardship letter
Any docs supporting the actual hardship

Mortgage & Other Relevant Property Information

1st Mortgage statement
2nd Mortgage statement if applicable
Recent Real Estate tax bills
Recent condo/HOA association bills if applicable
Any unpaid tax and hazard insurance bills

Loan Modification...who really benefits?

2011-12-11T16:30:00.001-05:00

Over the past 3 years, banks have been given trillions of dollars from Congress (otherwise known as the US taxpayers) to motivate them to modify their home loans as the housing bubble collapsed. However, very few people have actually had their loans permanently adjusted, and instead, banks have been pursuing foreclosures at enormous rates.

Our opinion is that when it comes to loan mods, the homeowner who needs to be wary. On the surface, having the ability to lower ones payments an underwater mortgage certainly looks like a great deal, but we also know that the banks are on the edge of collapse due to the fact that the states and the courts are showing many of these entities do not have the proper documentation and ownership to actually foreclose on property.

The issue at hand is ownership of title, and rightful ownership of the actual note. When banks made their original loans to home buyers, they had the simple contract of title and note. However, when they sold the note to investments banks, who then separated the note from the title, and bundled these obligations with hundreds of others to create the RMBS, they simply put the title into a dummy holding company called MERS, and there was no longer a true and legal chain of ownership of the lien.

As time went on, some courts began to realize that the original banks, or the servicing agents who were simply collecting monthly mortgage payments, did not have the legal right or proper paperwork to foreclose on someones property.

So now, as a last ditch effort to compile the proper paperwork to satisfy the courts, banks are now suddenly offering loan modifications so that homeowners will by default, re-affirm the loan and justify a chain of ownership to the banks they did not have at the time of the foreclosure proceedings. Another important back-door trick of the banks is that they offer these "trial" loam mods, requesting all manner of financial documentation. And to get a loan modification, the homeowner needs to show income and assets enough to sustain payment on the lower payment. So most homeowner will go to great lengths to find and disclose and affirm assets and income that the bank may not have known about otherwise. Now, the banks know what assets to go after when they terminate the "trial" modification and foreclose instead.

In an article by Bruce Krasting on one of my favorite blogs, Zerohedge, he makes this assessment of the modification offers to homeowners:

One possible response would be to get all troubled borrowers to reaffirm their debt, the second is to get the trouble borrowers back to paying something on the mortgage, even if it were a fraction of what was formerly owed on a monthly basis. A loan modification would achieve both results. When a borrower signs up for a loan mod they sign new papers. A portion of this process will re-establish any loan balance that is due. The language in the mod could have new foreclosure terms that eliminate the banker’s problem with past tainted documentation. Once a borrower makes a few months of new lowered payments they are, in effect, confirming their acceptance of the new terms.

Most Mods go bust in six months or are cancelled for any number of reasons by the lender. So on the surface it would seem little is accomplished from the lenders perspective. But we think the lenders motivation for doing a loan mod is not to get a borrower to a monthly payment that they could realistically pay, but rather the motivation is to circumvent the foreclosure trap the lenders are in. A mod could legally resolve the problems.

To us, it appears to be a strong possibility that the banks and institutions that desire to foreclose on property are offering these modifications NOT as a means to help homeowners, but rather as a way to create new paperwork that will stand up in court, as well as uncovering assets and income that the banks may not have known existed, allowing the banks to foreclose and move on.

That being said, we have heard of homeowners that have received advantageous, permanent, modifications and are happy, keeping up with their payments, and keeping their home.

As we always recommend, any time your bank want documents from you or wants you to sign anything, contact a well educated and experienced real estate attorney.

You can also call us to discuss your options and the relative benefits/drawback to each...

or call me on my direct line at 561-602-1258

Thanks for reading...Steve

Merry Christmas From Aunt Fannie and Uncle Freddie

2011-12-06T12:19:00.001-05:00

Fannie Mae and Freddie Mac are suspending evictions of foreclosed properties from Dec. 19 through Jan. 2, 2012.

The government-sponsored enterprises are the first institutions this holiday season to announce their annual moratoriums, which is a common practice in the housing sector to provide families a greater measure of certainty during the holidays.

During this period, legal and administrative proceedings for evictions may continue, but families living in foreclosed properties will be permitted to remain in the home.

The suspensions apply only to eviction lockouts related to REO properties owned by Fannie Mae and Freddie Mac and will not affect other pre- or post-foreclosure processes.

“The holidays are meant for families to spend time together, especially if they’ve gone through the stress of financial challenges and foreclosure,” said Terry Edwards, executive vice president of credit portfolio management at Fannie Mae, in a statement.

“No family should have to give up their home during this holiday season," he said.

Explanation of how our corrupt central banking system works

2011-12-01T06:16:00.001-05:00

The New Face of Foreclosure: Strategic Default

2011-11-25T16:46:00.001-05:00

Fox Business.com

Written By Laura Rowley Published September 19, 2011 Daily Finance, (Excerpts of the full article)

If you find yourself “upside-down on your property…be it your primary residence or an investment property, please give me a call on my direct line: 561-602-1258. Thanks, Steve Jackson

(or send me an email: Steve@ShortSales123.com)

Gene Kessler, 67, may be the new face of mortgage default. The tech industry retiree is in the process of walking away from the home he purchased for $166,000 in 2004 in a small town 75 miles southwest of Minneapolis.

Its value has plummeted to $111,000, wiping out Kessler's $45,000 down payment and leaving him with a mortgage that's more than the home is worth. He stopped paying the loan six months ago, and estimates he'll have to vacate by March 2012.

But Kessler isn't in financial trouble, and he could afford the monthly payments. He has no other debts and two pensions from former employers, as well as Social Security. He also has a woodworking hobby, and runs a small business selling the artisan lamps he makes in galleries. He's single now, and his two children are grown and gone…

First notices of default jumped 33% in August, a nine-month high and the biggest month-over-month increase since August 2007, according to figures by RealtyTrac released Wednesday.

"There are 3 million to 4 million seriously delinquent mortgages that under normal circumstances would be in foreclosure but have been kept out by procedural delays and paperwork problems," says Rick Sharga, RealtyTrac senior vice president. The recent spike in foreclosure starts suggests lenders are "hitting the restart button" on cases that were delayed by documentation problems such as robo-signing, he explains.

There's no data on the demographics or financial histories of the people receiving recent default notices. But among them are some homeowners who have never defaulted on a loan before, at least according to one poll. YouWalkAway.com surveyed several hundred of its clients earlier this year, and just 23% said they had previously shirked a financial obligation.

"The people we are now seeing are nearing retirement age, who never missed a payment on anything in their lives," says Jon Maddux, co-founder and CEO of the Carlsbad, Calif., firm. "They are trapped. They can't sell or get a modification and they need to downsize or move for a job."

Attitudes toward default have also shifted, Maddux says. "Back in 2008 people were very emotional, very scared, in disbelief or denial," he says. "Now they are simply fed up. It's a very calculated, black-and-white business decision. People feel very relieved."

A more widespread understanding of the consequences of default may be a factor, says Brent White, a University of Arizona law professor and author of Underwater Home.

"The conventional wisdom is you are ruined and are not going to recover," says White, who wrote a widely circulated discussion paper on the topic. But in so-called "non-recourse" states such as California, the bank can only foreclose on the property and resell it. If the price is less than the amount owed on the mortgage, the lender can't sue the homeowner to recoup the shortfall, says White. Even in recourse states, the bank is unlikely to go after the homeowner following foreclosure, he argues.

"The vast majority of those who default end up doing a short sale and that (sometimes) discharges the deficiency," he says. "If they are pursued, they can (sometimes) negotiate to pay less than the full amount. A savvy person who retains an attorney or other knowledgeable person to walk them through the process will likely get through default without having to pay a deficiency judgment. Most people will have a good credit score again within a couple years."

But John Ulzheimer, president of consumer education for SmartCredit.com, disagrees, at least for consumers new to default. "If someone who has never missed a payment suddenly puts their home in foreclosure, their credit score is destroyed," says Ulzheimer, who previously worked for a credit bureau.

"If you already have payment problems on the mortgage and defaulted on other accounts, [foreclosure] may not have a material downward impact, but it will lock in a lower score for a long time," Ulzheimer says. People who stop paying the mortgage can minimize the credit score impact by using that free cash flow to pay down other debts, such as credit cards, he adds.

But just because the bank doesn't pursue homeowners today doesn't mean it won't tomorrow, argues Ulzheimer. The statute of limitations to sue on contract debt in recourse states ranges from three to 15 years. "Some people think that's the next shoe to fall," he notes….

White says underwater homeowners should figure out if they are paying substantially more to own a house on a monthly basis than they would pay to rent a similar property. "Even if you are thousands of dollars underwater, if you are paying the same as you would to rent, you don't gain that much financially by defaulting," he says. (The survey by YouWalkAway.com found a quarter of respondents saved 50% or more on housing expenses when they rented after their default.)

In addition, someone who will need a good credit score to run a small business or borrow to meet a goal, such as a child's college education, should avoid strategic default. "If you have a particular need for easy credit in the future, then it doesn't make financial sense," White notes.

As for Kessler, he is looking forward to biking, tennis and skiing in the Southwest next year. "I don't feel guilty at all about walking away from the place," he says. "The banks really did it to themselves. They made a ton of money with me over the years. I owned four or five houses. But I don't think I'll ever buy another house. I'll probably just rent until they put me in a nursing home."

Read the full, original article here: http://www.foxbusiness.com/industries/2011/09/19/new-face-foreclosure-strategic-defaults/#ixzz1ektafvO9

A Thanksgiving message to our readers

2011-11-23T15:09:00.001-05:00

Time to get your snorkle! 50% with mortgages are under water...

2011-11-21T10:57:00.001-05:00

Take a look at this short CNBC video about the situation many of my clients find themselves in:

If you find yourself upside-down, or very close, you can stay put, do nothing, and hope that everything gets better. Or you can email me for information that may be helpful in getting your lender to agree to a loan modification, which may lower your payments and help you be able to stay in your home.

Also, if you don't want to stay in your underwater home, we have been very successful in processing Short Sales for our cleints, with NO out of pocket costs closing costs or commissions...and in some cases, we have obtained for them a"relocation bonus" as high as $23,000! You can call me directly if you'd like to speak or meet coonfidentially regarding this subject.

2011-11-11T06:49:00.001-05:00

If they keep predicting a market bottom…eventually they’ll all be right!

2011-11-10T14:45:00.001-05:00

Just to say it at the outset of this post…why don’t any of the reporters, be it newspaper, online outlets or television, ever do any research and ask any tough questions when they continue to interview and quote the “experts” regarding housing?

Case in point: Here is a headline of an article/interview of Zillow chief economist, Stan Humphries, 18 months ago:

As Housing Market Nears Bottom, Pent-Up Supply Waits…And here is the prediction directly from the article: We forecast that the nation will hit a bottom in home values in the third quarter of this year, (which would have been July-Sept 2010) but that there will be negligible appreciation in home values for three to five years after we’ve reached bottom…

Case-Shiller, an oft quoted research firm has this on-the-money prediction from an interview from November 30th 2009:

U.S. home prices are unlikely to fall much further in the next year even after a “discouraging” report on values in September, said Karl Case, the co-creator of the S&P/Case-Shiller Index.

“If I were betting even odds, I’d bet that we don’t have much further decline, but that we bounce along the bottom,” Case, a retired professor of economics at Wellesley College, said today in a Bloomberg Television interview…

And then here is a quote from an interview Shiller did less than 60 days ago: SHILLER: “House Prices Probably Won’t Hit Bottom For Years”

And the icing on the cake has been our own chief economist(s) of the National Association of Realtors:

04/2006: We can expect a historically strong housing market moving forward, earmarked by generally balanced conditions across the country and fairly stable levels of home sales with some month-to-month fluctuations.”, NAR

07/2006: “Right now we are on course for a soft-landing in housing.”, NAR

10/2006: “The worst is behind us, as far as a market correction. This is likely the trough for sales. When consumers recognize that home sales are stabilizing, we’ll see the buyers who’ve been on the sidelines get back into the market.”, NAR.

12/2006: “At least the bottom appears to have already occurred. It looks like figures will be improving.”, NAR.

01/2007: “It appears we have established a bottom” David Lereah, NAR Chief Economist.

07/2007: “Home sales will probably fluctuate in a narrow range in the short run, but gradually trend upward with improving activity by the end of the year.”, NAR

11/2007: “I don’t anticipate any further major sales declines,” Yun said. However, the NAR didn’t anticipate the sales declines of the past two years, and it’s been predicting a bottom nearly every month since early 2006. (from Marketwatch)

02/2008: Reuters reports that “The NAR’s chief economist, Lawrence Yun, said the market is ‘scratching the bottom,’ with sales holding at a deflated rate of around 5 million units for the past several months.”

02/2008, There is no chance of a large price decline in Rockford, Lawrence Yun told a crowd of more than 400 at Cliffbreakers, 700 W. Riverside Blvd. There is not a price bubble in Rockford., BusinessRockford.com (see July, 2009 news report below)

07/2008: There are signs of pent up demand . I think we are very near to the end of the housing downturn, Yun said.

12/2008: I would not have done anything different. But I was a public spokesman writing about housing having a good future. Ex-NAR Chief Economist Lareah.

04/2009: “We are close to the bottom, says Lawrence Yun, chief economist for the National Association of Realtors. Once home sales begin to rise that could boost home buying confidence and get others off the sidelines.”

04/2009: The “worst may be over” in parts of the West, said Lawrence Yun, NAR Chief Economist.

07/2009: Follow up from 2/08 quote above: BusinessRockford.com – The local housing market showed few signs of rebounding in the first half of 2009, with sales of single-family homes and condominiums falling nearly 20 percent and median sale prices falling in all but two of the Rock River Valley’s largest municipalities... In Rockford, the median prices of the 61104 ZIP code are down 52.3 percent from the first six months of 2008, dropping from $64,950 to just $31,000.

Now, more than ever, it is so important to work with an agent that will consult, diagnose and recommend solutions based upon a multitude of factors…with the MOST important one being; what is in YOUR best interest.

In the past several years, I have ‘converted’ many buyers into renters, but also, some renters into buyers, because that's what we decided, together was the best option for them. I have also dissuaded many sellers from becoming ‘landlords by default’ and putting tenants in their homes while waiting for “prices to go up’ because they didn’t want to “give their house away”. On the flip side of that coin, I just had a conversation with a prospective client yesterday and we decided AGAINST selling, as the cash-flow the home would generate, along with the tax benefits of renting outweighed the prospect of home value declines…their time horizon was sufficiently long to mitigate the risk when compared to the monthly cash flow.

If you would like to discuss all of the factors that you should be considering, whether it be on the selling or buying side, please call me at 561-602-1258…or email me at Steve@TheJacksonTeam.com

Thanks for reading,

Steve Jackson

Why does a British Bank do a better job than the American Banks? (Is HSBC British?)

2011-11-04T07:19:00.001-04:00

We have always liked short sales with HSBC. They respond promptly and are easy to work with. The bottom line is that they do a solid, competent job handling short sales.

I think the reason is because they never got a bailout from Uncle Sam. If they are incompetent and lose money, then they, and their stockholders, take the loss.

Menawhile, the large American Banks are awful to work with. I have countless stories of real estate agents working on a large national bank’s short sales for 6-9 months with no answer, documents transmitted ,and lost, multiple times, etc., etc. Want an answer to an e-mail? Be prepared to wait 1-2 weeks for that. Leave a voice mail? Don't ever expect a call back! The people at the TBTF banks are undertrained, overworked and disorganized. In my opinion, the reason these TBTF (too big to fail) don't care is because they don't own the loans, and, if they do lose money, uncle Sam will be there to be the backstop.

I remember hearing that Bank of America only owns 20% of the loans they handle, they are just the servicer for the rest. And there is a good chance that a big slice of the 20% are probably guaranteed by the government (taxpayers).

Contrast this with HSBC. They own most of their loans. That means they are the ones that stand to lose money. I couldn't find HSBC ever getting a bailout on the bailout search page. They have to have a well run bank.

Based upon our experiences, their short sales are handled properly and professionally. Here is why. They are acting as a principal. If they do a lousy job, then they lose the money themselves.

On 80% of Bank of America's loans, someone else is losing the money. That is why there is no sense of urgency at Bank of America. It's like monopoly money. It just makes sense that people do a better job if their own money is on the line. The big banks are handling other people's money. There is no accountability.

At HSBC, if the short sale department does a lousy job, then it affects HSBC's quarterly statement. If things go bad, then people are held accountable. In my opinion, there is nothing of the sort happening at American Banks such as Bank of America or JP Morgan Chase, Wells Fargo, etc.

Thinking about a short sale? We have lots of experience with all of the lenders out there. We can help you short sale your property, at NO COST TO YOU, and allow you to get back on your feet. Send me an e-mail at ShortSaleInfo@thejacksonteam.com. Or, if you prefer, you can call me at (561) 602-1258.

When we meet, I will explain how the process works in detail and answer any questions you may have.
Steve and Jackie, The Jackson Realty Group Inc.. Lake Worth, Boynton Beach Short Sales Realtors

Phone: (561) 602-1258. ShortSaleInfo@thejacksonteam.com.

Personalized...Not Franchised

Steven Jackson specializes in short sales in Palm Beach County, Florida.

Have a loan with BofA? NOW IS THE TIME TO DO A SHORT SALE!

2011-10-22T16:44:00.001-04:00

If you have a loan with BofA and owe more on your loan than your home is worth…DO NOT WAIT…CALL ME TODAY

(you’ll see why below)

Below is a partial screen-shot of an email that I recently received from Bank of America.

They are offering a MINIMUM of $5,000 paid to you, the short sale seller, at closing…and possibly as much as $20,000!

BUT…we only have about 6 weeks to get started.

Really, no kidding…if you have a Bank of America (Countrywide too) loan and are upside down…this is a great opportunity.

My direct # is 561-602-1258…if you reach my voicemail, leave me a message…or you can also send me a text to that number.

Thanks for reading…Steve Jackson

Foreclosure filings down 70% year over year…but all is not as it seems!

2011-10-13T09:46:00.001-04:00

Excerpts from a report in today's Palm Beach Post:

In an unexpected bit of fallout from the real estate crash, lenders are filing far fewer foreclosures.

Alas, that's not because the economic picture is improving but because the housing market is flooded with repossessed homes, and banks and courts are inundated with default proceedings.

Foreclosure filings in Palm Beach County plunged 70 percent in July, August and September compared to the same three months a year ago, research firm RealtyTrac says in a report to be released today.

In normal times, a sharp decline in foreclosure filings would be cause for celebration. But these aren't normal times.

Nearly 2 million Floridians owe more than their homes are worth, and the state's unemployment rate has been stuck above 10 percent for more than two years.

Foreclosure experts say several factors have lenders taking back fewer homes. One is simple supply and demand; banks typically sell properties they repossess, and they know that putting more homes on the market will hurt values.

"The banks don't have a motivation to push these through quickly," said Tom Ice, a foreclosure attorney in Royal Palm Beach. "There's a lot of expense involved in owning the houses. And they understand that flooding the market with properties is going to push down the resale value of their own properties."

John Tuccillo, chief economist for the Florida Realtors, agrees.

"Banks are in business to make as much money as they can, or to lose as little money as they can," he said. "It's a bad business decision to flood the market."

Once a lender takes back a home, it pays the costs of owning the property, including insurance premiums, homeowner association fees and maintenance. So banks seemingly have decided that it makes sense to leave a deadbeat borrower in the home.

"There is an economic benefit to them of leaving the homeowner in the property," Ice said.

Another factor: Legal controversies surrounding foreclosures have caused banks to slow their court filings. Palm Beach County Clerk Sharon Bock pointed to the "robosigning" debacle and to the difficulties lenders have faced in proving ownership of foreclosed homes.

"The banks just simply are holding back," Bock said. "They have many more loans in default than they're putting through into foreclosure."

RealtyTrac's Daren Blomquist agreed that legal concerns have created what he called an "artificial slowing."

"Trying to adjust to the huge volume of foreclosures in 2010, lenders were resorting to questionable (illegal) procedures," Blomquist said. "To make sure they don't get into trouble again, they have to take longer and can't process as many as they used to."

Yet another reason: Lenders have begun to push short sales as an alternative to foreclosure. In a short sale, a homeowner owes more than the home is worth and finds a buyer willing to buy the property. The bank agrees to forgive the difference between the loan amount and the sale amount.

While lenders have been notoriously slow to approve short sales, two major banks have begun to encourage short sales by giving homeowners as much as $20,000 at closing.

"Bank of America and Chase have rolled out more aggressive incentive programs for short sales," said Damian Turco, an attorney in Palm Beach Gardens. "Lenders are recognizing that it's a better business decision to avoid foreclosure."

While banks take a hit on a short sale, they're likely to incur an even bigger loss on a foreclosure.

"Lenders are getting smarter," Tuccillo said. "I talk to a lot of people who say the process is getting more rational."

Strategic default OK for Mortgage Bankers Association…but not for you?

2011-10-04T04:50:00.001-04:00

The article below is from a recent post on the Mortgage-Mod_Monster blog:

Again we read the guilt trip that the mortgage industry places on distressed homeowners when dealing with their distressed mortgage. But it’s OK and even advisable for the corporations to walk away from their obligations. I’ve written about this before, but when the Mortgage Banker’s Association double deals, this is just too juicy to not publicize.

Freely quoting from Mandelman’s post: “The CEO of the powerful Mortgage Bankers Association, John Courson, has said that underwater borrowers should keep paying on their mortgage loans and ‘should not walk away from lawful debts’. In an interview this past year, Courson appeared genuinely concerned adding: ‘What about the message they will send to their family and their kids and their friends?’

Just last year, you pointed out that defaults hurt neighborhoods by lowering property values, so borrowers would do less harm to our society were they just to repay what they owe. You know… like the responsible homeowners.

This past week, the Co-Star Group, Inc., indicated that it had agreed to buy the MBA’s 10-story headquarters building in DC for $41.3 million. The only problem is that $41.3 million comes up a skosh shy of the $75 million first mortgage on the building that the MBA took out from PNC Financial Group way back in 2007, when they purchased the property for $79 million.

The very same MBA also defaulted on their payments and secured a forbearance agreement, prior to the short sale. Nicely done, Johnny-O.

What kind of message are YOU now sending to Your family, Your children, and Your friends by walking away from Your lawful $75 million debt? Are they being morally harmed by your decision to stick the bank with close to $25 million? And why aren’t You simply paying Your mortgage as agreed, Mr. Courson?

Again, advice to the distressed homeowner: Answer the emotional question first – do you want to keep your house? or walk away with the least damage and purchase another home in two years? Then consider the financial questions. Do you have steady, although significantly reduced employment that you can count on for the foreseeable future? Do you believe your property recover any lost value in 5 to nine years?

Currently, the best answer to solving a distressed mortgage is the REST Report. The REST Report calculates Net Present Value and enables a distressed mortgage owner to negotiate an unbiased mortgage modification with court support if the mortgage servicer chooses to ignore the calculations and pursue foreclosure…

If you don’t believe your property can recover value in 5 to nine years, give the keys back to the bank…It even now has a name, compliments of firms like the Mortgage Banker’s Association. It’s called a ‘strategic default’. Do not even consider for one minute any ethical responsibility to anyone but yourself. Your bank cares not one whit for your well-being. You owe them, or anyone else, not one red cent.

Ocwen rolls out a new loan modification for underwater borrowers

2011-09-30T04:17:00.001-04:00

Finally a lender gets a brain! Locally based Ocwen recently revealed a plan that incorporates many of the components of a loan mod/refinance that I suggested over a year ago: Reduce the loan amount to today's value, write off the ‘underwater portion’ over a number of years if the owners stays current on all mortgage obligation aspects, and if/when the home is sold, Ocwen will recoup some of the regained equity…Brilliant! The other big added benefit to the lender is that they get to draw up new loan documents without all of the defects that are being challenged in court right now…and I wouldn’t be surprised if they slip in some new restrictive language to the now docs too!

For all of you with an underwater Ocwen loan…CALL THEM TODAY to see if you can qualify, then call me and let me know the details of the process/qualification/final terms so I can spread the news.

Below are excerpts from the article that was in the Palm Beach post.

The company is rolling out a new loan modification plan for underwater borrowers that lowers the amount owed on the loan - thus reducing the monthly payment - but asks for a share in the appreciated value when the house is either sold or refinanced.

The kickback to the lender may deter people who can afford to make their payments from defaulting, while giving an incentive to either the lender or investor to modify the loan.

"We think this answers some of the critics who say that by reducing principal, you are rewarding imprudent borrowing behavior," said Ocwen Executive Vice President Paul Koches. "What we see is unprecedented delinquencies, and we're doing our best to resolve them."

Offered in 33 states, including Florida, the plan is available only on loans where it will earn more for either the lender or investor than if the home went into foreclosure.

Called a shared appreciation modification, it's fairly simple on its face.

A home's principal amount is reduced to 95 percent of the current market value. That portion is forgiven in equal amounts over a three-year period as long as the owner stays current on the loan.

When the house is later either sold or refinanced, the homeowner must give the lender 25 percent of the appreciated value of the home.

For example, say the principal balance on a loan is $125,000, but the current value of the home is only $100,000. Ocwen's plan would reduce the balance to $95,000, putting $30,000 in a non-interest-bearing account that will be forgiven over a three-year period.

If the house is later sold for $120,000 - marking an appreciation of $20,000 - the homeowner would get to keep $15,000, while $5,000 would go to the lender. If the home doesn't appreciate, then the sale occurs as it normally would.

Ocwen, which has about 245 employees in its West Palm Beach office, estimates about 53,000 homeowners nationwide will be eligible for the principal reduction program.

The company specializes in servicing the nation's riskiest home loans and has a portfolio of about 460,000 loans. Ocwen's recent acquisition of Litton Loan Servicing will add 250,000 loans to its portfolio.

A test of the new loan modification program that was launched last year found that of borrowers offered the plan, 79 percent accepted it. The default rate has been about 2.6 percent.

"You have folks breaking their necks to make payments on a home where there is no hope in their lifetime of it regaining equity," Koches said. "A homeowner in a negative equity situation is one-and-a-half to two times more likely to go into delinquency."

In Palm Beach County, nearly 43 percent of homes with mortgages were underwater during the first quarter of 2011, according to real estate analysis firm CoreLogic.

Most home loan modifications result in an interest rate reduction, which can do little in the long run for homeowners who owe more on their loan than their home is worth, said Kathleen Day, spokeswoman for the Center for Responsible Lending.

"We've felt for a long time that unless you do principal write-downs, you really aren't getting at the problem," Day said. "It's in everyone's best interest to keep a credit worthy person in their home."

Thanks for reading…Steve Jackson

10 million more foreclosures in the pipeline

2011-09-20T19:15:00.001-04:00

In August, the Obama administration asked the housing industry for ideas on how to more efficiently sell or unload this overhang, and the Senate heard testimony from various housing players Tuesday.

Roughly 10.4 million mortgages, or one in five homes with a mortgage will likely default if Congress refuses to implement new policy changes to prevent and sell more foreclosures, according to analyst Laurie Goodman from Amherst Securities Group.

At the end of the second quarter, more than 2.7 million long-delinquent loans, others in foreclosure and REO properties sat in the shadow inventory, more than double what it was in the first quarter of 2010. With the market averaging roughly 90,000 loan liquidations per month, it would take 32 months, nearly three years, to move through the overhang…and that number is contingent on NO other loans going into default.

"Many analysts looking at the housing problem mistakenly assume it is limited to loans that are currently non-performing (or 60-plus days past due). Such borrowers have a high probability of eventually losing their homes. However, the problem also includes loans with a compromised pay history; these are re-defaulting at a rapid rate," Goodman told a Senate subcommittee Tuesday.

Most of the proposals included recommendations to sell properties ‘in bulk’ to investors with one of the stipulations being that they be turned into rentals. (italics mine)

Stan Humphries, chief economist for Zillow, said the rental market is currently booming and would be able to handle a mass conversion of foreclosures into rentals. "Investors smell a distinct opportunity in this situation: The chance to buy an asset cheaply and rent it out. In fact, close to one-third of the purchases of existing homes this year have gone to all-cash buyers, the bulk of whom are real estate investors," Humphries said.

This sounds to me like the housing equivalent of ‘cash-for-clunkers’ which resulted in the removal from the market of tens of thousands of good, affordable used cars, as the requirement was to “junk’ the clunker trade-in (the dealers were not allowed to re-sell them)…The same thing will happen with homes; currently, a lot of buyers can’t purchase a great many of the foreclosed homes as they require too much work and/or don’t qualify for an FHA loan. Typically, the buyers in the under $250k market, (where a great percentage of the foreclosed homes sell), are FHA buyers because they DON’T have a lot of cash…so they are not able to ‘buy and rehab’. BUT, that is where cash buyers come in…they buy, rehab to move in condition, and re-sell…quite often to FHA or other low-down-payment buyers and they make a little money doing it…as they should. But if you take away these homes by requiring that they be converted to rentals, how does that help? Well, it helps the big companies, REITS, and investment groups that will get a piece of that sweet deal!

Just read my recent posts regarding the scary legislation working its way through Tallahhssee now…going to make it sooo easy, cheap and fast for the banks to get these homes back…We need everyone to PAY ATTENTION…and thanks for reading!

Steve Jackson

Foreclosures ramp up: County's 13% jump the trickle before the dam breaks, experts warn

2011-09-15T07:01:00.001-04:00

More Palm Beach County homes received first-time foreclosure notices in August than the previous month, and experts warned Wednesday that the 13 percent increase is just a trickle before the flood.

Statewide, new foreclosure filings were up 10 percent last month from July, according to findings to be released today by the Irvine, Calif.-based company RealtyTrac.

Nationally, initial notices of foreclosure were up 33 percent.

But unlike previous reports that found increases and decreases in foreclosure activity were similar nationwide, there was a marked difference in August between judicial states, where a judge is required to sign off on a home repossession, and non-judicial states.

In the 25 states RealtyTrac considers non-judicial, initial foreclosures leapt 46 percent in August from July, although they were still down 10 percent from August 2010. In judicial states, including Florida, there was only a 21 percent increase in August from July, with a 25 percent drop from last year.

"I've been told by a number of banks' lawyers that they have cases ready to go and are just waiting for approval to file," said Mike Wasylik, a foreclosure defense attorney with the firm Ricardo, Wasylik & Kaniuk, which has an office in Boca Raton. "I've been expecting the dam to break for months now and I think there is still uncertainty about what is going to happen with regulatory actions and pending settlements."

Foreclosures were suspended last fall following questions about the validity of court documents used to take back homes. Activity remained on a simmer through early spring and has jumped around since then as lenders continue to patch up their foreclosure processes.

The nation's largest home lender and servicer, Bank of America, confirmed Wednesday it had ramped up foreclosures in non-judicial states, including Nevada, which saw a 31 percent increase in new filings in August from July. California, also a non-judicial state, saw a 55 percent increase.

"Strong gains like that from July to August demonstrate our progress, clearing more volume to advance to foreclosure once we pass the numerous, improved quality controls we have in place and only after all other options with homeowners have been exhausted," said Jumana Bauwens, a Bank of America spokeswoman. "The industry has not yet returned to normal or necessary foreclosure activity levels, but progress is certainly being made."

Still, lenders face more uncertainty.

Earlier this month, the Federal Housing Finance Agency sued 17 financial firms for selling Fannie Mae and Freddie Mac billions of dollars' worth of risky mortgage-backed securities that turned sour when the market collapsed.

Also, settlement negotiations continue between banks and the nation's attorneys general. The attorneys general joined last year in an effort to investigate the robo-signing scandal, penalize lenders for their paperwork missteps and help struggling borrowers.

"The banks don't know what their exposure is from past problems or that they have resolved the problems to the satisfaction of the attorneys general," said Guy Cecala, chief executive officer and publisher of Inside Mortgage Finance.

But foreclosures have not come to a complete standstill.

Last month, 715 Palm Beach County homes were sold at auction - the final step in a foreclosure - according to Palm Beach County Clerk of Courts data released Wednesday.

Just 31 percent of scheduled auctions were canceled, a decrease from a high of 51 percent in January when banks hurried to delay sales in the wake of the robo-signing scandal.

The Palm Beach County clerk's office tallied 1,126 initial foreclosure filings last month. That's slightly higher than RealtyTrac's 926, but could be a function of when the numbers were gathered.

"We were anticipating another wave of foreclosure filings this year, based on expert forecasts, but so far an influx of new cases has yet to materialize," said Clerk Sharon Bock.

RealtyTrac has lowered its nationwide prediction of total foreclosure filings - initial notices, sale notices and auctions - for 2011 from 3 million to 2.5 million.

"As painful an issue as foreclosure is, it has to get back on track, otherwise we'll slip further and further behind," Cecala said. "The year 2011 will go down as the year that nothing got done."

If you have been reading my blog, you have read about the scary pro-bank bill under review now in Florida…my guess is that the banks are holding back going forward here in full force in the hopes that this bill gets passed in the dark of night. Then, the banks can EASILY FORECLOSE AND TAKE POSSESSION OF HOMES. The bill even has a provision that if you defend your foreclosure but the bank eventually does get to foreclose…YOU AND YOUR ATTY HAVE TO PAY THE BANKS LEGAL FEES!

Thanks for reading…Steve Jackson

No deficiency...no problem?

2011-08-30T06:05:00.001-04:00

Once a short sale has been successfully negotiated and you have the appropriate language in your short sale acceptance letter from your lender indicating that they will not pursue a deficiency, you're in the clear, right?

Not so fast!

What normally comes next is a 1099 C forgiveness of debt. This is now income to you in the year the debt was written off. WHAT? You bet. A creditor is required by law to issue a 1009 C to any individual who settles a debt or has a debt written off that is in excess of $600. This is a very big trap that people with lots of debt find themselves in. If you have received one of those in the mail, you may have to declare the amount on that form as income. (see your tax person) Then you will have to (maybe) pay tax on it.

Using a debt management firm to settle your debts? You settle your $5000 credit card bill for $3000. Don’t be surprised when the 1099 C comes in the mail. House sells at foreclosure sale, the bank has not been paid all the money. You should be on the look out for a 1099 C.

There are 2 exceptions to the 1099 C rule for most debt. The first applies when you are insolvent as the time the debt is written off. This is defined by the IRS. The second is if you file bankruptcy before the debt is written off and the 1099Cc is issued, there is no income to declare. If you file bankruptcy after the 1099 C is issued you still have to declare that as income. (again, check with your tax preparer). Here is a debt insolvency worksheet that you may find helpful. Also, the IRS’s website has examples to help you determine if you can qualify for this exception.

There is a third exception that is only good for real estate. It is the The Mortgage Forgiveness Debt Relief Act and Debt Cancellation. It applies to the owners of residential real estate only under specific circumstances. The Mortgage Debt Relief Act of 2007 generally allows taxpayers to exclude income from the discharge of debt on their principal residence. Debt reduced through mortgage restructuring, as well as mortgage debt forgiven in connection with a foreclosure also qualifies for the relief.

as always, the above is not intended to be legal or tax advice...consult the appropriate professionals for details regarding how this affects you, specifically.

Is Florida the Next Non-Judicial Foreclosure State

2011-08-24T15:05:00.001-04:00

Please forward this blog post to every Floridian that you know…if this gets passed, it will be devastating for tens of thousands of homeowners. It will take away the right to challenge the banks foreclosure (fraudulent documents and all) AND includes a huge disincentive to foreclosure defense attorneys from even taking your case.

If the mortgage industry has its way, the passage of a new bill floating around Tallahassee will ensure that Floridians will be displaced from their homes without legal representation or due process. In typical Orwellian style, this bill is entitled the Fair Foreclosure Act – it’s anything but . . .

Florida often makes the national news when it comes to foreclosures, and it’s never positive. According to a recent 24/7 Wall Street study, three of the ten housing markets most likely to collapse in 2012 are in Florida. Naples, Miami and Ft. Lauderdale all make the top 10, and the rest of the Sunshine State isn’t far behind.

In its preamble, the FFA actually says, “Once suit has been filed, the public interest is served by moving foreclosure cases to final resolution expeditiously in order to get real property back into the stream of commerce.” Of course, it is this glut of foreclosed homes flooding the real estate market that has all but ensured its collapse. REO properties typically sell far below market value, and when so many REOs exist, it drives the overall market to new lows. The vicious cycle is complete as more homeowners suffer increased losses from a down market.

So the bill’s stated purpose is flawed right from the outset, but getting our homes back into the “stream of commerce” really isn’t the purpose of the Fair Foreclosure Act. Its sole design is to take Floridians’ property without due process or equal protection under the law.

Florida has a proud history of whoring for the mortgage industry, and while states across the country are fighting to restore honor and integrity to our judicial system, Florida has taken a different approach. In Florida, the Supreme Court and our elected state officials are doing what they can to ensure their benefactors . . . the banks . . . get what they want.

Remember Foreclosure Court? It unconstitutionally employed retired senior judges to act as mortgage mercenaries – ramrodding defective foreclosures through the judicial system despite national ridicule. I am actually shocked it fell victim to Governor Scott’s massive spending cuts. That must have been a mistake.

Then, with the addition of Pam Bondi as our new Attorney General, the mortgage industry took firm control of our prosecutors as well. Ms. Bondi all but killed any investigation into foreclosure fraud, and fired two assistant prosecutors who gained national attention for piecing together a massive conspiracy by the mortgage industry to defraud our state court judges in foreclosure cases.

BUT, these acts of treason pale in comparison to the Fair Foreclosure Act, which proposes to do the following:

Where the amount of principal and interest equals or exceeds 120% of the just value of the home, it will allow the mortgage company to foreclose without going through the judicial process. That means no foreclosure complaint, no defense, no due process, no justice. It will be as easy to take your home as it is to repo a car.
It will repeal Florida Statutes § 57.105, which awards attorney fees to homeowners who successfully defeat mortgage companies in court. At the same time, it assesses attorney fees against a homeowner and his lawyer (in equal parts) if the mortgage company prevails. The design here is to stop consumer lawyers from taking any more foreclosure cases by making it impossible to make money and even personally expose the lawyer to penalties. Consumer lawyers will have no upside potential and all downside risk.
It will eliminate the right of a homeowner to set aside a wrongful foreclosure, even if the plaintiff committed fraud in the process of taking the home. The ONLY recourse would be awarding money damages. This language is to appease the title companies by retroactively ratifying all that foreclosure fraud that has taken place over the last decade. Once the bank takes your home, you’ll never get it back, no matter what.

The typical knee-jerk response is always that these homeowners are people who “got in over their head.” But such banking propaganda ignores the fact that 1 in 2 houses in Florida have no equity. So, according to bankers, half of Floridians are irresponsible homebuyers. Wall Street and greedy bankers created this horrible mess, but they want no part of shared sacrifice in cleaning it up. Middle class America didn’t cause this problem, and Middle class America shouldn’t pay for it.

We Floridians suffer from foreclosure fatigue, and the FFA will send us all over the edge.

This article comes courtesy of Chip Parker, A Jacksonville Bankruptcy Attorney. About Chip Parker, Jacksonville Bankruptcy Attorney

Chip Parker is the managing partner of the fastest growing law firm in Northeast Florida (two years running), Parker & DuFresne, P.A., and according to The Jacksonville Business Journal, he is an Ultimate CEO. Mr. Parker represents businesses and consumers facing bankruptcy, and homeowners in foreclosure defense actions. He is the recent recipient of Jacksonville Area Legal Aid's Award for Outstanding Pro Bono Service. Mr. Parker is an active member of the National Association of Consumer Bankruptcy Attorneys and National Association of Consumer Advocates

Banks Now Prefer Short Sales to Foreclosures

2011-08-24T05:09:00.001-04:00

Below are excerpts from a recent article that confirms what we have been saying for about the past 9 months. Last December, just a few months after the ‘ROBO-SIGNING’ scandal really became widely publicized, we saw a noticeable shift in lender attitudes during our short sale negotiations. Lenders were much more open to approving short sales.

If you owe more than your home is worth…now may be the time to contact us about the possibility of doing a short sale. Here’s my direct line: 561-602-1258

A lender’s interest is in profit, and a foreclosure used to be more lucrative for a bank than a short sale. Now, however, the average foreclosure takes more than 300 days to process; time where no profit is being made on the house, it remains as a negative entry on the bank’s books, and the time and work that goes into the process now costs banks more profit than a short sale – wherein a bank approves the sale by the homeowner for less than the loan amount, losing the difference between the sale price and the loan. . This shortcut is becoming an increasingly more popular option for the nation’s three largest mortgage carriers, Bank of America, JPMorgan Chase and Wells Fargo.

Banks dealing with lengthy, complicated and frequently messy foreclosures are starting to see "short sales" as a quicker and cheaper way of getting bad loans off their books.

"We think the short sale is a good solution for many struggling homeowners and we let them know that it's an option," said Christine Holevas, spokesperson for JPMorgan in an email. Foreclosure can be an expensive and lengthy process for all parties. It's a good deal for the homeowner and a good deal for us (a cheaper way to get a bad loan off the books.)"

A short sale is seen as a more palatable alternative to foreclosure for borrowers. In its simplest form, borrowers with underwater mortgages sell their homes to a buyer at a price that is approved by the lender. The lender normally forgives the difference between the loan and the sale proceeds- in essence the bank is being shorted for the loan amount.

Previously, lenders were said to prefer foreclosures to short sales because they -- or the investors in the loans -- figured that more money could be made from the former.

But the average time for the foreclosure process- from the time of notice to the completed foreclosure- is now 318 days in the U.S., according to RealtyTrac.

The longer it takes for a foreclosure to be approved, the longer bad loans stay on banks' books. Foreclosures are also more expensive, because of the legal expenses involved as well as the expenses for maintenance and upkeep while the property is in foreclosure.

According to real estate analytics firm CoreLogic, the number of short sales in the market have tripled in the last two years and transactions are anticipated to grow by 25% in 2011. The markets with the largest short sale volume are California, Arizona, Colorado and Florida.

"Lenders often consider short sales as the lesser of two evils when compared to foreclosures," Core Logic noted in a May 2011 report on short sales. "While significant losses may be incurred in both foreclosure and short sale scenarios, the overall negative financial impact of short sales is typically less than that of foreclosure. In many cases short sales represent the best way for lenders to minimize their overall losses. In general, all parties fare better when a foreclosure is prevented."

Still, the short sale process is not easy and industry observers say sellers and buyers of short sale properties must set realistic expectations.

For one, borrowers should realize that their credit scores aren't any less affected under a short sale than it is in the case of a foreclosure. In both case, the borrower is considered in default.

However, in a short sale, the borrower's debt is often forgiven, at least on the first lien. Also, a borrower who does a short sale might be able to apply for another mortgage sooner than he or she could in the case of a foreclosure, where the wait can be as much as 7 years.

And, the more parties involved on the lender side, the more complicated the short sale process is. Investors, junior lien holders and mortgage insurers often want more documentation to prove financial hardship of the seller, proof of funding for the borrower and they may want to negotiate the price.

The short sale process can go a lot more smoothly when the real estate agent is someone who understands how to do a short sale. "This is not a regular sale where there is just one contract between a buyer and a seller,".

This article was republished with permission from The Street.

If you’d like to discuss your short sale options, call me directly at 561-602-1258

Steve Jackson

Thanks for reading my blog

SHORT SALE SUMMIT REVELATIONS BY BANK OF AMERICA

2011-08-18T04:56:00.001-04:00

Some of my short sale staff and I met with Bank of America in Miami today at their “Short Sale Summit”. We had a nice small group that met twice this afternoon - and I got to ask and have answered several questions which I think are important to those agents who are working short sales.

THEY SENT THE BIG GUNS

First, we definitely had the top end management for this discussion. Bob Hora is the Short Sale, Deed in Lieu, REO, LandSafe Field Services Executive for Legacy Asset Servicing at Bank of America. He leads a team of 5,000 associates – those that you speak to regarding short sales and deeds in lieu through Bank of America as lender or servicer. Joining him was David Sunlin, Bob’s immediate junior who is Senior Vice President and Operations Executive for Short sales, Deed in Lieu and Real Estate Management for Bank of America – meaning he is in charge of real estate operations for Bank of America’s default loan servicing operations. On a more local side, Matthew McCain is the Home Loans Manager for BoA and his territory is all of South Florida, and he acted as moderator. He is a go to guy for this region (his base is in Naples) and will make presentations to individual agent and Realtor groups if requested.

BoA FAVORING SHORT SALES OVER MODIFICATIONS

It seemed from the discussion, that BoA wants to do short sales more than they want to do loan modifications through HAMP or in house programs. There seemed to be a more significant emphasis toward short sales for avoiding foreclosure than through modifications. In fact, although they flew in about a dozen “expeditors” available for us to share specific file processing issues – none of them dealt with loan modifications. There was zero mention of principal reduction programs.

INVOLVING REAL ESTATE AGENTS IN THE DEED IN LIEU OPPORTUNITY

BoA is seriously floating the idea that if a short sale is denied or a short sale cannot reasonable be consummated, the real estate agent can become involved in the process of a deed in lieu of foreclosure process. This will have some limitations on the degree of involvement by agents as they cannot be forced into an unauthorized practice of law situation. Watch for this to develop over the next several months…

CASH FOR KEYS WITH DEFICIENCY RELEASE TO AVOID FORECLOSURE DELAYS

This is on the front burner for implementation beginning September 2011 - Another program that we should begin to see put into operation is “an aggressive and meaningful” program to encourage homeowners to not ride out a foreclosure process for all its worth (i.e.: living in the property for as long as possible without paying the mortgage). This is a “cash for keys” type program that more realistically takes into consideration the benefits to the homeowner of the extended foreclosure lawsuit timing vs. a waiver of deficiency rights coupled with a “cash for keys” that takes into consideration more than borrower income, but also loan size and size of home to make this successful – but expect it to be more meaningful than similar programs through HAFA.

DO I NEED TO STOP PAYING MY MORTGAGE TO GET BANK ATTENTION?

Still think that you have to stop paying the mortgage to get a short sale? You are still wrong and this time we heard it not just from me - but straight from Bank of America. Although proving up hardship can be easier with a stoppage of payments (and indeed some investors serviced by BoA require delinquencies ranging up to 120 days before a hardship is deemed “valid”), the specific statement of policy was that delinquency is NOT necessary provided other factors of hardship and imminent default can be shown.

NEGOTIATION MINUTIA AND FRUSTATION WITH NEGOTIATOR DEMANDS

They acknowledged that some of their negotiators sweat the small things (like “we won’t pay for the termite inspection”) instead of looking at the big picture, and they are working on training improvements to even-out the process of analysis and create consistency in the process. Still, there are plenty of quirks in their systems.

“THAT MAKES NO LOGIC” STILL PREVALENT

One expeditor, who was trying to help us on a HUD issue regarding a seller contribution to the closing proceeds, listened to my explanation to my seminar attendees of the issue with “why is the bank thinking this way?” At some of my seminars I have a PowerPoint slide that asks 3 simple questions that can be answered with logic. Everyone get them right and we all agree that everyone applied logic to get a 100% score. I then tell the seminar attendees to take a 10 minute break and go to their cars and lock their logic in their car trunks – and then come back so we can continue the seminar. Logic has no place in the short sale negotiation process. The BoA expeditor (who was from California) said it was the best and most accurate analogy of the actual “without logic” process that she had heard.

RELATION OF CREDIT SCORES TO DEFICIENCY WAIVER

A conflict arose regarding a statement made many times that a low FICO score was a determining factor in obtaining the coveted waiver of deficiency in the short sale approval letter. The conflict was relative to the statement that you can do a short sale without defaulting on the mortgage. David remarked that no conflicting statement was intended, and that waivers can be determined not merely on FICO scores but on other factors as well. Our experience in our office cannot correlate credit scores with whether or not BoA provides a waiver of deficiency.

CONFUSING SHORT SALE APPROVAL LETTER LANGUAGE

We recently received a very confusing approval letter that said both that the lender was reserving its rights to a deficiency and in the same letter that the lender will report to the IRS with a Form 1099 the forgiveness of income from the short sale. Bob took the letter from me and promised a review from their legal staff and a response. The letter is discussed in my article, NEW AND CONFUSING BANK OF AMERICA SHORT SALE "APPROVAL" LANGUAGE.

ESCROWS MAY INCLUDE ASSOCIATION ASSESSMENTS FOR FUTURE LOANS

Lastly, expect some pilot programs on new loans that add on to the escrow list not only real estate taxes and insurance, but condominium / property / homeowner association assessments. The fight to get short sales through is constantly being waged between lender and association. BoA is also considering setting up an association lien subset of negotiators to improve the short sale opportunities even with unpaid association fees. [We maintain that the better course of action for homeowners is to continue paying the association, as unpaid assessments can be the straw that prevents the short sale from succeeding.]

The bad news is that the BoA time-line for short sales still deems 4 and a half months as acceptable. So the educated buyer (educated by their agent) is a key element for retaining the buyer through the short sale process.

Bank of America actually put together a meaningful program for agents and attorneys that process short sales and the experience was well worth the 3 hour drive. Stay tuned for updates and developments!

--------------------------------------------------------------

Be sure to contact your own attorney for your state laws, and always consult your own attorney on any legal decision you need to make. This article is for information purposes and is not specific advice to any one reader.

Richard Zaretsky, Esq., RICHARD P. ZARETSKY P.A. ATTORNEYS AT LAW, 1655 PALM BEACH LAKES BLVD, SUITE 900, WEST PALM BEACH, FLORIDA 33401, PHONE 561 689 6660 RPZ99@Florida-Counsel.com - FLORIDA BAR BOARD CERTIFIED IN REAL ESTATE LAW - We assist Brokers and Sellers with Short Sales and Modifications and Consult with Brokers and Sellers Nationwide! Shortsales@Florida-Counsel.com New Website www.Florida-Counsel.com

See our easy to find articles at TABLE OF CONTENTS - SHORT SALE AND LOAN MODIFICATION ARTICLES.

Dylan Ratigan says what needs to be said

2011-08-10T06:04:00.001-04:00

DylanRatigan.com

Major Lenders Offering Perks on Short Sales

2011-07-29T09:02:00.001-04:00

The nation’s leading mortgage lenders are extending extras for short sale transactions employed as an alternative to foreclosure – both in the form of monetary incentives for borrowers and streamlined procedures for real estate agents.

Wells Fargo says it has been making “enhanced financial relocation assistance offers” that can be as much as $10,000 or $20,000 to certain borrowers who meet undisclosed criteria who choose to go through with a short sale or transfer the title back to Wells via a deed-in-lieu.

This extra incentive is being offered to distressed borrowers in Florida and other states where the foreclosure process is lengthening, a spokesperson for Wells Fargo explained. The exact amount of the relocation funds provided to individual borrowers varies based on a number of factors, the company says.

Wells Fargo noted that this type of additional relocation assistance is only available on first-lien loans that the company itself owns – which represent only about 20 percent of the loans Wells Fargo services.

Chase is also offering a range of incentives to borrowers that agree to a pre-foreclosure sale “because if we can’t work out a modification, a short sale is a better result for the borrower, the servicer, the investor, and the neighborhood than a foreclosure,” the company said in a statement.

Chase says the amount of the offer “depends on a number of factors” but declined to share specific details on how much money it’s been providing to short sellers.

Citi has confirmed that it is offering incentives up to $12,000 for borrowers in cases where Citi owns the loan.

BofA says it is “committed to improving the short sale process” and has made procedural changes to cut some of the red tape for agents working with the bank on pre-foreclosure sales. They now allow real estate agents to submit a backup offer on a transaction if the original buyer has walked away from the sale.

This means that agents no longer have to initiate a brand new short sale if the buyer changes, Bank of America explained. Instead, agents can move ahead with the original transaction and continue to work with the same short sale specialist without having to resubmit all of the same documents and start from scratch.

Strategic Default...true or false

2011-07-21T07:11:00.002-04:00

FALSE: If the amount owed is greater than the value of the house, the only option is to stop paying and walk away.

TRUE: You have many options, the most obvious of which is to continue paying the mortgage; which, if the total PITI is close to what rent would be for a similar home, may be a very good option. Next, if you have a documentable hardship, cannot remain current on your mortgage payment and are upside-down, other options besides strategic default include: loan modification, forbearance, short sale, deed in lieu and/or filing chapter 7/13 bankruptcy. Depending on the circumstances, any of these options should prove more beneficial to you than simply allowing the lender to foreclose.

FALSE: Following a short sale, the homeowner remains liable for the deficiency, or difference between what is netted from the sale and what is owed to the bank.

TRUE: We have seen many lenders waive the deficiency as part of the negotiation process. This sometimes requires additional back and forth and possibly a monetary contribution or unsecured note from the seller. But once the lender determines that the net sales proceeds approximate the value of their collateral and that the seller has no other assets to contribute, they may be willing to agree to a short sale with no recourse to, or contribution from, the borrower. Also, we have had great success qualifying our clients for a seldom-used program that includes a deficiency waiver AND a relocation bonus check for our sellers handed to them from the bank!

FALSE: There is no meaningful difference to your credit score between a short sale and a foreclosure.

TRUE: The most damaging impact of a short sale occurs only after the period of delinquency exceeds three or four months. In other words, the impact of a short sale on a borrower's credit resembles a foreclosure only after a significant number of missed payments. Otherwise, it is like any other settlement or charge off - the impact would be limited to two to five years and, anecdotally, has a much smaller numerical impact on a persons credit score than a foreclosure. In any event, completing a short sale would not force homeowners to check "yes" to questions from future employers or on future mortgage applications that ask the prospective applicant whether they have ever experienced a foreclosure or deed in lieu of foreclosure.

FALSE: A foreclosure through a 'strategic mortgage default' has less impact on your credit than a 'normal' foreclosure.

TRUE: Credit bureaus do not research the reason behind a foreclosure or default. If you're late on your payments, you're late, and if the lender forecloses, then it is reported as a foreclosure. The credit report should reflect the events that have transpired, no more, no less. Likewise, late penalties, attorney fees, etc. and henceforth, deficiency judgments, can occur as a result of any foreclosure, regardless of rationale.

FALSE: A strategic mortgage default/foreclosure is a better, easier option than a short sale.

TRUE: This is almost never the case. A foreclosure is a unilateral process being controlled solely by your bank...no negotiation, no predictability. A short sale is a bilateral process wherin you, the homeowner, has input and influence regarding the process and outcome. In a short sale, as part of the process, your lender does a cost/benefit analysis to determine if they will net more money accepting your short short sale or more money if they foreclose...and in just about every case, short sales net the lender more than foreclosures (this is true almost by definition, as the lender will not approve a short sale if they feel a foreclosure will return higher proceeds). This, by itself, mitigates any potential deficiency or tax consequence to the you. And in many instances, a lender will waive a deficiency judgment altogether in the short sale, which of course does not happen in a foreclosure context.

If you have reached the point where 'strategic default' has entered your conversation as a possible solution...take the time to call me and schedule a confidential meeting to explore all of your options. You can reach me at this number: 561-602-1258

Thanks for reading...Steve

And obviously, this post, and the blog in general, is not intended to be a substitute for professional legal, tax and associated advice. Consult your attorney and CPA before you make any decisions that may have serious legal and tax implications.

The ultimate inside job!

2011-07-18T07:03:00.002-04:00

This is a must watch 3 minute video...

Florida...Of the banks, By the banks and For the Banks

2011-07-16T11:16:00.004-04:00

Foreclosure fraud investigators forced out at attorney general's office

By Kimberly Miller Palm Beach Post Staff Writer

Updated: 6:38 p.m. Wednesday, July 13, 2011, Posted: 10:06 p.m. Tuesday, July 12, 2011

A lead foreclosure fraud investigator for the state said she and a colleague were forced to resign from the Florida attorney general's office, unexpectedly ending their nearly yearlong pursuit to hold law firms and banks accountable.

Former Assistant Attorney General Theresa Edwards and colleague June Clarkson had been investigating the state's so-called "foreclosure mills," uncovering evidence of legal malpractice that also implicated banks and loan servicers.

Despite positive performance evaluations, Edwards said the two were told during a meeting with their supervisor in late May to give up their jobs voluntarily or be let go. Edwards said no reason was given for the move.

"It all happened very abruptly," said Edwards, who had worked in the attorney general's office for about three years.

The foreclosure investigations were launched under former Attorney General Bill McCollum, but Edwards said she sensed changes were coming under Gov. Rick Scott and Attorney General Pam Bondi."I think they wanted to put people in there that were more in line with their thinking," Edwards said.

Bondi's press secretary said Tuesday that foreclosure investigations are still open and are being personally led or supervised by Division Director Richard Lawson.

"The division has made these investigations a top priority and will continue to actively pursue all of our investigations into foreclosure law firms," said Jennifer Krell Davis.

But Edwards said she was given no time to brief anyone on the investigations and that there were notes that had yet to be transcribed and filed. (wouldn't you think that if the dept. was going to continue the with investigations that they would have wanted the files to be up-to-date and the new investigators to be briefed?)

Davis said she could not comment on personnel issues when asked about the nature of the resignations.

On May 20, Edwards said she and Clarkson were summoned together to a meeting at 3:30 p.m. and told by Robert Julian, then the South Florida bureau chief for the Economic Crimes Section of the attorney general's office, that they had the opportunity to resign or would be let go immediately. They turned in nearly identical resignation letters that day.

"We had absolutely no idea it was coming," said Edwards, who in an April 22 performance review she provided to The Palm Beach Post was praised by Julian.

In sworn statements taken by Edwards and Clarkson as part of their investigation of the Law Offices of David J. Stern, former employees described conditions where signatures were regularly forged on foreclosure documents, paperwork was notarized by non-notaries, and flawed files were hidden from auditors of federal mortgage backers Fannie Mae and Freddie Mac.

"I know those two ladies did a yeoman's job, and it perplexed me when they left the office," Josh Bleil, a partner in the Ticktin Law Group foreclosure defense firm, said about Edwards and Clarkson. "They were instrumental in creating the Power Point presentation that blew up everything."

Bleil is referring to a 98-page report titled "Unfair, Deceptive and Unconscionable Acts in Foreclosure Cases," which outlines instances of questionable signatures and notarizations, as well as foreclosures filed by entities that might not have had the legal ability to foreclose.

Julian notes in Edwards' April performance review that the foreclosure investigation has faced criticism. (From the banks and Law firms under investigations most likely!)

In January, Bondi's office told lawmakers in a Senate Banking and Insurance Committee meeting that Florida's foreclosure process is in "total disarray" with a "morass" of fraudulent paperwork.

Committee member Sen. Joe Negron, R-Stuart, criticized suggestions that banks should be pushed to employ foreclosure alternatives such as short sales. He also objected to the term "foreclosure mill" when referring to the state's large law firms that represent banks."Foreclosure mill could also be called very busy law firm because you provide excellent service to your clients," Negron said. (Is he serious?) (Wonder if “providing excellent service” includes fabricating evidence to prove your client’s case? Example of a Foreclosure Mill providing excellent service: http://tinyurl.com/28lkk5s )

Edwards and Clarkson have opened their own foreclosure defense firm based in Hollywood and hope to help homeowners with the knowledge they gained in the attorney general's office."It's been a very unexpected change in circumstance," Edwards said.

(Florida citizens beware...the next move will be for them to try to make Florida a 'Non-Judicial' foreclosure state...no more worries about going to court to foreclose on a home...right back to the bank without any fuss!)

July 4th, 2011

2011-07-03T10:53:00.001-04:00

I am well aware of the toil, and blood, and treasure, that it will cost us to maintain this declaration, and support and defend these states. Yet, through all the gloom, I can see the rays of light and glory; I can see that the end is more than worth all the means, and that posterity will triumph.

John Adams, letter to Abigail Adams, July 3, 1776

Mortgages that are delinquent 90 or more days outnumber current bank owned foreclosure sales by a ratio of 50 to 1

2011-07-01T15:25:00.001-04:00

According to LPS, (Lender Processing Services) mortgage monitor report for May , the number of properties delinquent 90 or more days (or in foreclosure) outnumber foreclosure sales 50 to 1!

More than one-third of homeowners who have had a foreclosure suit filed by their lender haven't made a payment in more than two years, according to LPS.

"Negative equity also remains a concern, with nearly 30% of current loans in a negative equity position," according to LPS. "The equity impact on new seriously delinquent loans is significant, with loans significantly underwater defaulting up to 10 times as much as loans with equity."

So…what does this mortgage industry report tell us? Well, it is the counterbalance to all of the so-called ‘experts’ reporting that foreclosures are down. That’s a nice sound bite…but doesn’t report the entire story.

The deleterious effect that vacant homes and foreclosure sales have on home values is not soon to be over.

If you may have to (or want to) sell your home in the next 2-3 years…do it sooner than later. If you are currently in the market to buy a home…make sure that you are buying for the right reasons, in the right place, and at the right price.

Will I be able to find a rental after a short sale or foreclosure?

2011-06-29T14:24:00.001-04:00

A recent poll of members of a national landlord association reveals that rental property owners are willing to rent to prospective tenants with a foreclosure or short sale on their credit report…

LOS ANGELES, April 20, 2011 /PRNewswire/ -- More than three-quarters (82%) of independent landlords say they would rent to someone who lost a home in foreclosure, assuming the applicant traditionally had good credit, according to a survey released today by The National Association of Independent Landlords.

"Landlords typically won't rent to applicants with poor credit—and a foreclosure will absolutely slam someone's scores. The exception is when they see people who have paid their bills their whole life, but lost their job, can't meet their mortgage and must hand their keys back to the bank," said Tracey Benson, president of The National Association of Independent Landlords.

Despite recent credit problems, Benson said, applicants with a foreclosure can prove good risks, chiefly because they did once own their own home: "These people are used to taking pride in where they live. Often, they lost their jobs and homes through no fault of their own."

Increasingly, mortgage defaults stem more from lost jobs than ill-equipped borrowers who lost homes they never should have bought, Benson said. A thorough background check, like one conducted by The National Association of Independent Landlords, will indicate into which category an applicant falls—and whether financial woes are part of a recent spate of bad luck or a life-long trend.

"Because of this abundance of defaults, there is a greater need for rental property, so landlords should carefully vet applicants," Benson said.

The National Association of Independent Landlords polled 563 members from March 21 through March 25, 2011.

About The National Association of Independent Landlords

The National Association of Independent Landlords is the country's largest provider of services for small landlords. Services include credit reports, electronic rent collection and tenant screening as well as information about property management, rental laws in all 50 states and other issues critical to property owners. Visit us at www.landlordassociation.com or call 800.352.3395.

SOURCE The National Association of Independent Landlords

Happy Fathers Day

2011-06-19T07:14:00.001-04:00

To a child…LOVE is spelled TIME.

Click on the photo above…it will take you to see a touching and insightful 2 minute video about what is most important to your kids.

Blessings to all of the Fathers out there.

Selling your home at a loss...Short sale, deed in lieu, assumption.

2011-06-17T15:16:00.001-04:00

What about a loan modification?

2011-06-13T17:48:00.004-04:00

I periodically receive email news bites from a Miami attorney, Don Gonzalez (contact info below)...The most recent one, excerpted below, covers a subject on which I receive many questions...and Don discusses it clearly and succinctly:

Realities of a Loan Modification
On a continuous basis I see clients, as well as Realtors, who are interested in a loan modification. These individuals are clearly behind on their payments for a mortgage which is upside down. Upon falling behind, they are usually contacted by their lender. The client/realtor usually receives notification from their lender expressing interest in working with them through a loan modification. The lender will usually require that proper documentation be submitted, which generally includes bank statements, a hardship letter and tax returns, proof of income, etc. Once this documentation has been submitted, the lender usually responds with an offer to put this person on some kind of trial run, such as a three month payment period or something of a different nature. In order to undergo the so-called modification, one person that I know was required to pay a $20,000 lump sum payment in order to get a deferral on their remaining backlog of late payments. Typically, I have to explain to a client that the loan modification is usually not going meet their expectation if their expectation is a considerable reduction in principle balance...Income is one of the determining factors for a loan modification. Further, many lenders stress government programs to aid in loan modifications (such as the HAMP program). But, as of date, I have yet to see one actually go through.

In conclusion, I want you to understand that the expectation of a loan modification to be anything other than a reduction of interest rate is unrealistic (emphasis mine). This is a drop in the bucket if you are so upside down and behind on your payments and will not be of substantial value to prevent the loss of your home...As always, if you have any questions or need additional information, please feel free to email me.

Until next time,

Don Gonzalez, Esq
DON GONZALEZ, P.A.
Attorney At Law
1820 N. Corporate Lakes Blvd. Suite 201
Weston, FL 33326
954-598-0660
http://www.dongonzalezpa.us/
DonGonzalez@aol.com

Don Gonzalez, P.A. provides the information in this email as a service to its email readers. While the information on this site deals with legal issues, it does not constitute legal advice. If you have questions related to the application of law to your specific circumstance, you are encouraged to consult an attorney who can investigate the particular issues of your situation.

Bankruptcy Basics from the US Courts site

2011-06-09T13:08:00.002-04:00

Questions about bankruptcy come up at a majority of my appointments with sellers who are upside down on their homes and trying to explore their options. I always defer to the experts on the subject: bankruptcy attorneys.

But, I recently came accross this series of helpful videos that will give homeowners a basic understanding of the various bankruptcy options. Just click on the video, below. You can then watch the entire series of nine short videos.

Short Sale Opportunities Lost - The Procrastinating Client

2011-06-05T09:32:00.001-04:00

Courtesy of our friend and highly regarded short sale attorney, Richard Zaretsky, comes this article regarding waiting until the end to do a short sale:

Short sale sellers and owners seeking a loan modification need legal representation sooner rather than later in the process. I have used the example of the sand filled hour glass, with each grain of sand being an opportunity for financial planning, tax planning, strategy creation and fulfillment, and a solution to the financial distress of the seller. As time goes on, the sand drops to the bottom, and is lost forever. Often people come to see me with all the sand gone - and I just cannot help them - it's too late.

GET A REAL ESTATE AGENT!

With very few exceptions, we tell anyone that comes to see us that has even a few grains of sand left, to see a real estate broker and if they don't know how to find one, we give them a list of brokers that work their area and we know to be experienced in short sales. [We also tell them to interview at least 3, and choose one that they feel comfortable with.] They need a real estate broker to understand the market for their property and gauge how long to get an offer and at what price. Doing a good job as proponent for the seller means knowing at least as much as the bank is going to know about the property.

IT IS SELDOM TOO LATE TO DO A SHORT SALE

We have many times achieve a short sale from a dead start, with only a few weeks to go until a foreclosure sale is scheduled to occur. Trust me! - it's not a fun experience - and I often think that in such situations I need to stick to my motto, "PAY ME NOW OR PAY ME MORE LATER!" It is certainly a challenge to save one of the opportunity or solution grains of sand just as it is passing through to that bottom of the hour glass! But it can be done.

REALISTIC SOLUTIONS

The fact that we can get a short sale done just when the homeowner seems to be falling over Niagara Falls is proof that lenders prefer short sales to other liquidation solutions. The seller must be educated to understand that not all opportunities are on the table - because they are so late to the party. Planning is the biggest opportunity that is usually gone. What I tell all our short sale clients is the same - "you don't know if you don't try". Probably 9.8 times out of 10 the end result is a closing that the seller is satisfied with relative to the other "options". But you don't get a satisfied customer unless the customer is fully informed of all the other options. We NEVER tell a client what to do. We advise them of the consequences of their decision for each decision option they may take.

Tell your sellers to be pro-active and get legal and real estate agent advice so that they can plan a strategy rather than react to a first strike by the lender. It will make you involvement as a broker more rewarding and pleasant in the short sale process - or maybe you can even make the sacrifice to find out the potential seller is actually better off with a loan modification. Those situations often create long term referral sources since you were so honest in looking out for the best interest of the client.

Copyright 2011 Richard P. Zaretsky, Esq.

------------------------------------

Be sure to contact your own attorney for your state laws, and always consult your own attorney on any legal decision you need to make. This article is for information purposes and is not specific advice to any one reader.

Richard Zaretsky, Esq., RICHARD P. ZARETSKY P.A. ATTORNEYS AT LAW, 1655 PALM BEACH LAKES BLVD, SUITE 900, WEST PALM BEACH, FLORIDA 33401, PHONE 561 689 6660 email: RPZ99@Florida-Counsel.com - FLORIDA BAR BOARD CERTIFIED IN REAL ESTATE LAW - We assist Brokers and Sellers with Short Sales and Modifications and Consult with Brokers and Sellers Nationwide! Shortsales@Florida-Counsel.com Website www.Florida-Counsel.com .

Short Sales on investment property

2011-06-04T08:07:00.000-04:00

Do you have a investment/rental/2nd home and are upside down on that property? We have experience in assisting with foreclosure alternatives on that segment of property. Give me a call at 561-602-1258...we'll explore your options, in private.

Thanks

Steve

Memorial Day 2011

2011-05-28T19:43:00.001-04:00

"Your silent tents of green
We deck with fragrant flowers;
Yours has the suffering been,
The memory shall be ours."

- Henry Wadsworth Longfellow -

Courtesy of the blog: Dr. Housing Bubble

2011-05-15T13:00:00.001-04:00

Multiple sets of indicators are clearly showing that the housing market is entering a second winter. Home prices are inching closer to cycle lows and indicators of housing distress are rampant throughout the country. Home prices during the troubling five years of 1928 through 1933 saw a decline of 25.9 percent nationwide and this was during the Great Depression. The latest Case-Shiller data shows that home prices in the 20 City and 10 City composite measures are down by 32 percent from their 2006 peak. This is now nominally the worst housing correction since the Great Depression. The continuing correction in housing is economically challenging middle class households in ways vastly different from those during the Great Depression. What is troubling about the new cycle lows is that the liquidity injected into the banking system by the Federal Reserve simply delayed the inevitable while diverting precious resources to a broken financial system. The painful lesson of the new reality is that household income, the gas in the engine, is simply too low to support prices even at today’s new lower levels.

Many were early to call a bottom in the housing market last year. It all varied on what data you were looking at. It was true that the home buyer tax credits and the Federal Reserve pushing mortgage rates lower created an artificial stimulus that did revive the market briefly. You should ask yourself what these actions covered. The home buyer tax credits and the Fed intervening made home buying cheaper only because an artificial floor was temporarily placed. Home prices for many years have not been dictated by the market in the sense of an open transparent market where sellers and buyers compete for goods in a somewhat balanced system. Home prices have so many artificial carrots and glistening bells and whistles that the real price is hard to ascertain. Imagine the government stepping in and offering a giant tax credit for buying SUVs. It is logical to assume that at least initially, sales will increase as the real price of the vehicle is pushed lower. Yet in the end market prices have to reflect more steady measures. As the tax credit evaporated and the Federal Reserve’s mortgage buying spree ended, the reality was American households simply do not have the income to support current prices. You can see the recent up and down here:

Home prices have been falling steadily since the summer of 2010. The fact that we still have close to 7,000,000 homes in the shadow inventory tells us that we still have a long way to go before any normal housing market is restored. This by far is the worst housing collapse ever and it is still ongoing. This isn’t some closed chapter in our history books. We are still experiencing the actual correction. You can see from the above charts and gather a sense of how deep this correction is. Or maybe this chart can help:

The adjustment in the housing market is still fluid and dynamic. I recall reading an article in the summer of 2009 showing some prescient insight into the market. In the article this chart was produced:

“(Moody’s) A number of indicators of housing have bottomed, and there are tantalizing signs that the descent in house prices is at least moderating. When all is said and done, this housing correction, easily the worst on record for the U.S., will see the national Case-Shiller® house price index fall nearly 40% from its 2006 peak. The correction will be not only deep but also lengthy, with the U.S. price index bottoming in the second quarter of 2010. The national price level will not regain its 2006 high until 2020, a peak-to-peak housing cycle of 14 years. Regions will vary substantially, however, with areas that saw prices rise most taking the longest to return.”

What is interesting is that the market did hit a bottom early in 2010. Yet what wasn’t accounted for was the double-dip in the housing market which is what we are now clearly in. The enormous backlog of shadow inventory will keep a steady stream of lower priced properties for years to come. I also find it interesting that the above chart is able to predict 12 years out and that California will see peak levels again in 2023. Frankly, I think projections going out more than 3 years for housing prices in this current market is similar to flipping a coin since all we can say with certainty is that home prices cannot go up with no significant income changes. People keep asking about certain financial ratios about when it would make sense to buy. Unfortunately we now live in a much more challenging financial world. The metrics now have to change completely. We are used to paying very little for food and fuel in relation to total household income. Other countries are used to paying more:

As we all know the cost of food is and has been going up yet income has remained stagnant or has dropped. The amount that can be spent on housing by default decreases. The Fed has essentially focused on the borrowing side of the equation by trying to lower rates to adjust to this new lower income world. Ironically this artificial intervention by the Federal Reserve has harmed most Americans while favoring investment banks around the country who really are the only sector who benefit from inflated housing costs. Lower home prices are actually beneficial to the one-third that rent. The one-third that own but have no mortgage are likely to not change their spending habits. It is the two-third that own and have a mortgage that are largely in play. If people purchase carefully and actually treat a home as a place to live, then if prices dipped another 20 percent it would not matter. The narrative that home prices need support is largely a banking propaganda piece trying to keep inflated balance sheets propped up.

As more and more disposable income is taken up by items outside of housing the amount of money Americans can finance for purchasing a home dwindles. This is why the demand for lower priced homes is healthy while markets where jumbo loans are needed are basically groveling at the feet of the government for more subsidies to keep prices inflated. Why would these supposedly rich areas need subsidies? What is it to the rich family to pay a little more from their healthy income to a house payment? The answer is that these markets are largely giant shell games where cars are leased and jumbo mortgages reign supreme. No doubt there are very wealthy enclaves with real solid incomes but you have other areas like Culver City or Pasadena where much of the economy is a paper tiger. You have households making $100,000 to $150,000 a year living as if they made $300,000 and above.

What can we learn from the Great Depression housing market and the one we are currently living in? First, many of the safety nets absent from the Great Depression like giant handouts to banks, food stamps, unemployment insurance, the FDIC, and stronger government intervention have made things look much better. Yet this is like a storm ravaging your property and you being happy that you have insurance. Sure, the place is covered but someone is still going to pay for the cost. I have few qualms about unemployment insurance or even food assistance since these keep people from absolute destitute situations and in terms of costs, are relatively low. For example $64 billion was paid out in 2010 to 40,000,000 families through food assistance. This money is spent back into the economy immediately. To put this in perspective look at the absolute failure of the home buyer tax credit:

“(WSJ) The credit wasn’t great for taxpayers, either. IRS says it paid $26 billion in home buyer credits in 2009 and 2010, enough to cover the maximum $8,000 credit for more than 3 million buyers. (It says at least $513 million went for fraudulent claims. Some claimants hadn’t bought houses. Some filed twice. Some were under age 18 or incarcerated.)”

Let us not forget about the multi-trillion dollar elephant in the room regarding the bailouts to the unworthy and financially broken financial system. The fact that most Americans have their wealth in housing and this was turned into a speculative casino by Wall Street is incredibly irresponsible. The reality of the new home price lows should tell you really who the bailouts were targeted for.

In the end home prices will continue to decline simply because no income growth has shown up in over a decade. Even if we do see income growth, we have to measure this with other rising costs like food and fuel. In the end, you can’t eat your house and maybe this is why the American Dream is now being redefined.

Dr. Housing Bubble is always a very informative and interseting read...you can subscribe to his blog by clicking this link.

Happy Mothers Day

2011-05-08T07:20:00.001-04:00

How mortgage delinquencies affect credit scores

2011-05-01T05:53:00.002-04:00

Below, taken directly from an article published on the FICO® Banking Analytics Blog:

Research looks at how mortgage delinquencies affect scores;

How much impact does a short sale have on FICO® Scores? How about a foreclosure? Since I frequently hear these questions from clients and others, I thought I’d share new FICO® research that sheds light on this very subject.

The FICO® study simulated various types of mortgage delinquencies on three representative credit bureau profiles of consumers scoring 680, 720 and 780, respectively. I say “representative profiles” because we focused on consumers whose credit characteristics (e.g., utilization, delinquency history, age of file) were typical of the three score points considered. All consumers had an active currently-paid-as-agreed mortgage on file.

Results are shown below. The first chart shows the impact on the score for each stage of delinquency, and the second shows how long it takes the score to fully “recover” after the fact.

All in all, we saw:

•The magnitude of FICO® Score impact is highly dependent on the starting score.

•There's no significant difference in score impact between short sale/deed-in-lieu/settlement and foreclosure.

•While a score may begin to improve sooner, it could take up to 7-10 years to fully recover, assuming all other obligations are paid as agreed.

•In general, the higher starting score, the longer it takes for the score to fully recover.

•Even if there’s minimal difference in score impact between moderate and severe delinquencies, there may be significant difference in time required for the score to fully recover.

This study provides good benchmarks of score impact from mortgage delinquencies. However, it is important to note that research was done only on select consumer credit profiles. Given the wide range of credit profiles that exist, results may vary beyond what's in the charts above.

My comments/analysis, below:

If you were to look solely at the score comparisons of a short sale and foreclosure in the chart above, you might say that there is no advantage to a short sale over a foreclosure...however, I believe the above article and accompanying charts assumed that for the short sale, (as well as the foreclosure), the mortgage payments had been more than 90 days delinquent. But, that does not have to be the case. We have had great success in assisting clients with short sales who have never missed a mortgage payment or have missed just 1 or 2...thus, one could surmise that this type of short sale would have much less of a delterious affect on ones credit score.

A short sale undertaken early enough allows the borrower to mitigate a lot of damage e.g. not having to miss mortgage payments. Short sales can and are closed without missed payments... in a majority of cases the borrower's default need only be 'imminent'. I believe it is the 'days late' on the mortgage history that is the prime factor in the degradation of the FICO® score.

This article/chart does not reflect what is the impact of the typical language added by a short sale (i.e. 'settled in full for less than the full amount') WHERE THE BORROWER CLOSES THE SHORT SALE WITHOUT MISSING A PAYMENT? A foreclosure by comparison (and by definitiion) will always have many missed payments.

Also, FICO® score is not the only consideration when comparing foreclosures and short sales. You can qualify for home loan financing within 2-3 years after a short sale. It can be up to7 years after a foreclosure. In addition, the current standard residential loan application asks whether you have EVER had a foreclosure. It does not (yet) ask about short sales. So if you had a foreclosure, 15 years from now, you would have to say "yes" to that question, or risk a claim for loan fraud.

Then there are job considerations when affects of a short sale are compared to the affects of a foreclosure that this article does not mention. If you have to pass a security clearance for your job, a foreclosure may prevent the issuance of the clearance. In this case a short sale is a better choice.

If you are in default on your mortgage or at risk for imminent default I recommend contacting a competent attorney who truly specializes in defending and protecting howeowners in default.

Give me a call on my direct line at 561-602-1258 if you'd like to discuss your situation and options.

Thanks,

Steve

Is anyone surprised?

2011-04-27T11:42:00.000-04:00

Foreclosure mediation program produces dismal results statewide

Below is an article from todays Palm Beach Post. Now this news doesn't come as any surprise to me, or anyone involved with this 'mandatory' process. What we have found here locally is that in the majority of cases, in contradiction to the guidelines, the banks representative would say that they did not have the authority to agree to anything without some other type of approval. All for show.

The first statewide report on the Supreme Court's foreclosure mediation program is out, and at least one South Florida judge says the program is neither helping homeowners nor clearing caseloads.

About 4 percent of 57,909 foreclosure cases...ended in agreement between the bank and borrower...The success rate is higher - 27 percent - if only mediations that actually occurred are considered...Mediation was required by a 2009 state Supreme Court order as a way to lighten judicial caseloads, as well as aid borrowers - objectives Miami-Dade Circuit Judge Jennifer Bailey said have not been achieved.

"I think it's fair to say...has not significantly helped Floridians stay in their houses," said Bailey, who served as chairwoman of Florida's Task Force on Residential Mortgage Foreclosure Cases. "It is incredibly disheartening."

Florida requires that every foreclosure go through the courts, which had a backlog of 322,724 cases as of February.

In Palm Beach County, 3,252 foreclosures were referred to mediation. Of those, mediations occurred in (only)269 cases. Just 51 cases ended in a written settlement, which can include a loan modification, short sale or deed-in-lieu of foreclosure....(which equates to only 1.5% helped)

The mediations, which were heralded for their guarantee of a sit-down meeting between homeowner and lender, are for homesteaded properties only. The lender pays the $750 cost .One of the biggest roadblocks for the program has been the inability to reach borrowers, whose phones are often disconnected and who may be overwhelmed by foreclosure-related mail.

To participate in mediation, homeowners must complete a foreclosure counseling course and provide financial paperwork - tasks some homeowners reject...But Bailey also blames banks for the program's poor performance. She has fielded complaints that lenders show up unprepared and without the decision-making ability to negotiate a settlement.

"One of the most significant frustrations we've discovered is there is no effective way to police institutional noncompliance," Bailey said.

If you have been served a Lis Pendens regarding a mortgage default, contact an attorney specializing in defending homeowners in default ASAP. Comply with and attend the mediation in good faith, and contact us about your short sale options should you decide that a loan modification won't work or is not what you want.

Thanks for reading.

2011-04-24T08:32:00.001-04:00

Do you have a Freddie or a Fannie?

2011-04-19T18:18:00.001-04:00

Each GSE as well as each lender has their own rules and guidelines regarding if and how they will proceed with a short sale.

If you are “upside-down” on your home and want to start exploring your options, one of the first things you’ll need to do is to check if you have a GSE loan.

I have provided 2 links below to help you out.

Freddie: https://ww3.freddiemac.com/corporate/

Fannie: http://www.fanniemae.com/loanlookup/

If you’d like to discuss your situation and possible options confidentially, please call me on my direct line at 561-602-1258.

If you’re upside-down, don’t wait…find out who has your loan…then call me.

Thanks for reading…Steve

Florida 'rocket docket' court told to respond to ACLU claims « HousingWire

2011-04-19T16:23:00.001-04:00

Tuesday, April 19th, 2011, 11:51 am

A Florida appellate court issued an order Tuesday, requiring the state's 20th Judicial Circuit to respond within 20 days to claims of ignoring court rules and rushing foreclosure cases through its system.

In April, the American Civil Liberties Union filed a petition with Florida's 2nd District Court of Appeals attempting to block the 20th Judicial Circuit from accelerating foreclosures through its so-called "rocket docket."

Beginning in July, the docket was used in all five counties in the southwestern Florida circuit: Lee, Collier, Charlotte, Hendry and Glades. Judges began pushing foreclosures through the system in order to work though a 40,000 case backlog.

According to sworn affidavits from foreclosure defense attorneys, court judges allegedly ignored court rules requiring additional paperwork from lenders and denied homeowners a say in court if they were delinquent on their loan.

A spokesperson for the 20th Judicial Court was not immediately available for comment.

The appellate court order sent Tuesday to Chief Judge Keith Cary does not act as a stay on the court. An employee in the appellate court's clerk office said the 20th Judicial Court will continue to operate as the ACLU case is heard.

Write to Jon Prior.

I am glad something is finally being done about the “Rocket Docket”. I have several friends who are foreclosure defense attorneys here in Palm Beach County and I have heard over and over that the judges would rush them through a hearing, never even looking at the paperwork submitted by the bank or objected to by the homeowners attorney.

Just because the courts are busy is no justification for foregoing due process and proper legal documentation.

Why lenders have a dis-incentive to modify loans...

2011-04-13T12:47:00.003-04:00

A Georgetown Law professor lets the cat out of the bag! The video is from C-Span in 2010...but it certainly makes it impossible for the lawmakers to say that they didn't know why the govt. loan mod programs were such a failure.

Think you know who owns your mortgage? Watch this 60 minutes clip...

2011-04-04T05:18:00.003-04:00

Thinking of just “walking away” from your house?

2011-03-30T14:00:00.001-04:00

DON’T DO IT!

A recent study estimates that 36% of Americans think walking away is a viable option when they owe more on their home than what it is worth. But few are aware of the severe financial consequences of these actions, and even fewer know the options available to avoid these consequences.

If you are at the crossroads of deciding whether or not to walk away (or “strategically default,”) you will find that there is nothing strategic about foreclosure, especially when there are options that can help you to avoid it.

Destroying your credit is NOT “Strategic”! Walking away from your mortgage can be incredibly dangerous and damaging to your financial future.

In a “strategic default,” homeowners simply choose to walk away from their mortgages—in other words, move out, stop paying and just “”let the bank take it”. Generally, this is done when a homeowner owes more on the home than it’s worth or is “underwater.” Most homeowners do not understand that walking away will expose them to foreclosure, which carries credit issues, current and future employment challenges, issues with security clearances, and the potential for non-stop debt collections.

In a Florida foreclosure, generally, the bank gets the home back at a courthouse auction…actually held as an online auction here in Palm Beach County. At some point in the future, the bank will re-sell the foreclosed property. The difference between what the bank finally ‘nets’ after the sale and what you owed (penalties/interest/legal fees/taxes/hoa fees, etc. added) is the deficiency. The bank can then get a judgment for this amount and attempt to collect, either directly, by giving it to the collection arm of the bank or, they sell it to a collection agency. And these collections efforts can haunt you for 20 years!

One of the first things we strongly recommend to anyone we speak with who is faced with a foreclosure action by their lender is for them to contact an expert foreclosure defense attorney…Be forewarned: Many Lenders have persuaded borrowers to represent themselves when facing foreclosure. Remember, the Lender’s first priority is collecting payments, not to gain a full understanding of your financial hardship. Don’t wait too long to seek help. Foreclosure Defense results are often best achieved with borrowers who seek help as soon as there is a problem.

Also, you don’t have to abandon your home…Borrowers need to understand that they are the legal titleholder to the home until a Judge declares otherwise. Although the Lender may hold a Mortgage Note, this does not mean that they can tell you to leave your home when you miss mortgage payments. Do not take the word of your Lender; seek counsel to advise you of your rights to remain in the property while searching for alternatives to foreclosure.

What about bankruptcy? Although bankruptcy can be a valuable tool when faced with an immediate sale of the property, it will rarely save your home from foreclosure. Many times, bankruptcy should be used as a last resort and only in combination with other large debts (i.e. immense credit card debt).

Do Not Ignore paperwork sent to you by the bank…Upon missing payments, most Lenders will send various documents and require a response. Many times these documents are discarded or there is no response. Save everything your lender has mailed or delivered to you and bring it to your attorney.

A foreclosure will be seen on your credit report for years…it will most likely impact you when trying to rent a home, trying to buy (or lease) anything on credit, applying for jobs, applying for various security clearances, and more!

You have options…one of the best ones right now is a Short Sale. This is where the lender agrees to let you sell the home for less than the amount owed.

We have recently been utilizing a little-known strategy that can: 1) speed up the process, 2) relieve the seller of deficiencies, 3) is FREE to the seller, 4) Get the seller a $3000 ‘relocation’ payment from the lender! You can click right HERE to see if you may qualify to work with us using this strategy.

Now, remember, I am NOT an attorney and this article is NOT intended to be legal advice…for that, please contact a competent legal professional.

But if you’d like to discuss your situation, see how we can help you out of a jam, and see how we’ve helped many, many people in your same predicament…call me on my private line right now: 561-602-1258

And thanks for reading my blog!

Steve Jackson

Ninja tactic to short sell your home!

2011-03-07T18:45:00.002-05:00

Click the photo below and you'll be 1 step closer to finding out about a little-known Govt. program that we use that gets a short sale in Palm Beach County done in weeks...costs our clients nothing...GIVES our clients money at closing...and relieves our clients of any deficiency!!

Click the photo below and we'll see if you qualify:

90 Day Guaranteed Sale Program? There’s NO free lunch!

2011-03-01T04:09:00.001-05:00

Once again, I have started to see this being promoted by mail and on the radio.

"If we don't sell your house in 90 days...WE'LL BUY IT!"

Sounds great...especially in this market. Worth checking out? That's what the agent is hoping you'll think. Get their phone to ring...but they'll most likely never discuss the details over the phone..."much to complicated and need to see your home to see if it qualifies"...get the foot in the door. But there is NEVER a free lunch; there is always a cost associated. But, particularly in this type of market, it would be "good business" if the agent NEVER bought any homes, or if they did, that they were purchased at such a drastic discount that the seller could do better selling the home themselves.

I have gone to several seminars where they promoted this (tactic/gimmick) and the client pitch starts out sounding something like this: " Mr./Mrs. homeowner, a big dilemma when making your move is deciding whether to buy 1st or sell 1st. Either way is risky as you could end up with 2 homes (or no home). Our unique/innovative/etc Guaranteed Sale Program solves this dilemma...you get our personal guarantee that if we don't sell your home in 90/120/180 days, we will buy it at a price acceptable to you. Now, WE take all the risk from you and you can immediately place a confident offer on another home". The hidden details usually follow some or all of these general guidelines:

Must purchase one of the agents listings...or at least buy a 'full commission' home with them
Seller must still pay a full commission on the 'guaranteed' sale
Quite often an 'upfront' fee or guaranteed sale program fee of anywhere from $295 to fees in the thousands
"Agreed upon" price well below appraisal/market value...could be as low as the 80% range, then subtract commissions, fees, closing costs etc.
Original list price 5% below comparables
Seller is REQUIRED to continually lower the asking price during the 90 day (or whatever the guarantee period is)...for example: 100% for 1st 30 days, 90% day 30-60, 80% day 60-90, at which point they have reached their 'guarantee' point (but minus a full commission, etc.)
Sign the listing agreement first...then the guaranteed purchase details come later
May be a maximum allowable program price
Restrictions on home condition
Use the language "I'll buy it for 'list' price", but fail to say that the 'list' price is the 80% ENDING list price

If they'll buy it for the full price that they agree to list it for...then that's putting their money where their dog and pony show is.

Think about these few points:

With as difficult as it is to get a mortgage now, COULD your agent actually perform on their guarantee? Ask to speak with their mortgage lender...do your due diligence the same as you would with any other buyer.
If they don't need a mortgage and have a few $$million sitting around to buy homes that don't sell in 90 days, why are they a real estate agent?
Are they "flipping" the purchase option to an investor? Are they going to list the home for the investor once they buy it? Then why don't they get the investor to buy it from you...without the middle-man ans with you getting the higher price?
Can they assign the guaranteed sale price (as in a wholesaler)? Again...you're losing out.

Good, solid, cutting-edge marketing, a detailed understanding of the local and national economic factors affecting home values, subdivision level market knowledge, ability to analyze trends...trust and mutual respect...THIS is what is needed today...not a worn-out gimic. Thanks for reading

Large housing inventories to be sold at deep discounts in 2011…and other stories

2011-02-22T07:13:00.002-05:00

From recent HousingWire news and other sources: (all italics mine)
Foreclosure filings and completed foreclosures will reach record levels this year, after lenders exhaust alternatives such as mortgage modifications (which have been hugely unsuccessful)…Analysts expect increased losses to residential mortgage-backed securities, as a result, because large inventories of foreclosed homes will be sold at deep discounts…
DBRS projects delinquency trends to continue climbing this year, as negative home equity persists, home prices remain down, unemployment stays high, and many borrowers have trouble refinancing due to tightened underwriting standards.
Analysts said the number of REO properties could double over the next 12 months to 4 million from 2 million, and it will take at least one to two years to sell those homes, further hindering recovery.
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Interesting research from PEW Local Trends that goes into great detail about Strategic Defaults..
What will be surprising to many is the dramatic increase in the number of homeowners willing to walk away from their underwater home. Just 3 years ago when we started reporting on this phenomena similar studies were done that resulted in fewer than 10% of those surveyed deemed strategic defaulting as ‘acceptable’. Now, that number is approaching 40%…
What this will mean going forward is that homes that are not even on the banks radar for potential default/foreclosure will be going back to the bank in record numbers, increasing the already lofty numbers of expected bank-owned properties.
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The mortgage interest tax deduction is being lead to the gallows for a little meeting with the guillotine…better known as the Obama Administration.
The National Association of Realtors is the lone voice in the blood thirsty crowd calling for the tax deduction to live on…
Here are the two sides of the argument:
The Off With Its Head…end the deduction argument: Why should non homeowners owners subsidize homeowners? Why are we punishing people for renting? Why create system that motivates people to buy more home than they otherwise would have? Why should the government incentive people taking on a mortgage thus, debt. (Sounds noble, does it not?….).
The ‘Let it live’ crowd’s argument: Owners are more stable, move less..invest more in communities. Owners spend more on home improvements and the like..thus, putting more money back into their communities.
I can tell you this for certain…regardless if you are red or blue…if the mortgage interest tax deduction, that will be quite a few nails in the housing coffin.
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Looming changes for Fannie and Freddie. The White House outlined last Friday its plans to begin shrinking their support of both of the government sponsored entities (GSEs) Fannie Mae and Freddie Mac. While the process could take several years, the effects will be felt in coming months.
Everything about obtaining a mortgage loan is about to change. Vastly fewer people will have the financial ability to obtain a loan.
It seems that the current administration is attempting to move us away from a homeownership society to a generation of renters…however, if the tax benefits of owning a primary residence are removed, do you think that the tax benefits of investor-owned properties will be left intact? If there are greatly reduced incentives (or even restrictive penalties i.e.. rent control) for investors, whom do you think will own all of the properties that people will need to rent?…It will be local/state or federal agencies that become the new landlords…watch out for this!
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I post these stories and opinions not to alarm but to inform…there is so much ‘spin’ out there from the various interest groups that it is hard to know which way is up or down.
For certain individuals and investors, in very specific circumstances…now is a great time to buy. Conversely, with what I think is going to be happening in the next few years to the housing market, now is also a good time to sell…it is hard to see, but will be clear in retrospect.

WHAT IF I DECIDE TO DO NOTHING AND JUST LET THE BANK FORECLOSE?

2011-02-15T12:27:00.003-05:00

Courtesy of our friend and expert real estate attorney, Richard Zaretsky, comes this article that addresses a question that we get from everyone who is upside down or behind on their mortgage...(thanks Richard)

In the series of questions I get when interviewing a potential client who is upside down on his or her mortgage, one question always asked (especially after I quote my fee) is "What if I decide to do nothing?"

It is a legitimate question and with all the press (and misinformation) that abounds, it is hard for those in need of the facts to separate the reality from the imaginary. For example, The New York Times reported on December 2, 2010 that Florida was a "non-recourse" state (meaning that the lender could not pursue a borrower on the promissory note). That information was corrected but not until December 19th - and of the over 1 million print edition readers that saw the wrong information - how many saw the "correction"? To many readers with Florida properties, walking away and doing nothing for their underwater Florida property became a reality - albeit a false reality the fallout from which many a homeowner has yet to realize.

FALSE INFORMATION - The reality is that in all recourse states (Florida being one) and in many non-recourse states to the extent the mortgage and note do not qualify as a non-recourse obligation, doing nothing has essentially the same outcome.

As I pointed out in several of my articles and interviews (see CNN, Banks Begin to Go After Deficiencies, Foreclosure Consequences) unless the borrower has in writing from the lender that they are releasing the borrower from the further liability of the deficiency, there remains a valuable right to collect that deficiency from the borrower. That "valuable right" is just like a negotiable instrument - it can be sold for consideration (ie: $$$) and the lender does not even have to get a judgment first to be able to sell that right.

IT JUST DOESN'T MAKE SENSE - SO WHY BELIEVE IT?
So many people tell me "the banks are not going after deficiencies - because no one has money to pay them". Get real!!! First, my office has seen, since the first of this year (just 7 weeks), more people saying the bank is trying to collect the balance of the loan than ALL of last year! Why? Let's look at the economics of this deal. An accountant friend of mine created a sizable side business of buying defaulted credit card debt and uncollectable obligations like these deficiency rights. He would typically pay 3 to 10 cents on the dollar. Do you think he just wallpapered his office with these obligations he bought? No way! He had a machine of lawyers and collection companies that pursued these debtors and if necessary, sued them to collect. If he got only 15% of them to pay even a portion of the debt, he was way ahead and made a nice profit. He also had the luxury of waiting - since he had the statute of limitations to first even sue the debtor and then when he got a judgment, he could ride it out for years (20 in Florida). He even would sell the judgments he got so he recouped his attorney fees and filing costs and made a profit - and then the new owner of the judgment would do the nasty things to collect the judgment, like garnishment, attachment of bank accounts, and dragging the debtor to a deposition or court to expose and explain his current finances.

FALSE SECURITY
And a word to those that say they are judgment proof. That may be true, but that won't prevent a lender from being able to file an attachment or garnishment. What then happens is the bank with the account that may indeed be exempt, must freeze the account until a judge decides that the money in the account is exempt from the attachment, or the pay is exempt from the garnishment. In the meantime, the defaulted borrower has checks bouncing all over town! So judgment proof is not aggravation proof.

Now you decide - Is it a good idea to do nothing?

Copyright 2011 Richard P. Zaretsky, Esq.
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Be sure to contact your own attorney for your state laws, and always consult your own attorney on any legal decision you need to make. This article is for information purposes and is not specific advice to any one reader.
Richard Zaretsky, Esq., RICHARD P. ZARETSKY P.A. ATTORNEYS AT LAW, 1655 PALM BEACH LAKES BLVD, SUITE 900, WEST PALM BEACH, FLORIDA 33401, PHONE 561 689 6660 email: RPZ99@Florida-Counsel.com - FLORIDA BAR BOARD CERTIFIED IN REAL ESTATE LAW - We assist Brokers and Sellers with Short Sales and Modifications and Consult with Brokers and Sellers Nationwide! Shortsales@Florida-Counsel.com Website http://www.florida-counsel.com/.
See our easy to understand articles at:
TABLE OF CONTENTS - SHORT SALE AND LOAN MODIFICATION ARTICLES

We have a better option...Don't let the process be a unilateral one wherin the bank dictates everything...including how much you eventually owe! Call me directly to see how we can make the outcome shift in your favor with a bi-lateral negotiation. My direct line is 561-602-1258

Thanks for reading,

Steve Jackson

Early release information on buying a home after a short sale or foreclosure

2011-02-08T18:06:00.001-05:00

Waiting Period Requirements to Buy a Home Again

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Federal Housing Administration (FHA)

1) Foreclosure is 3 years
2) Deed-in Lieu is 3 years
3) Short Sale is 3 years
4) Bankruptcy is 2 years
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Veterans Administration (VA)

1) Foreclosure is 2 years
2) Deed-in Lieu is 2 years
3) Short Sale is 2 years
4) Bankruptcy is 2 years
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Conventional Conforming (FNMA/FHLMC)

1) Foreclosure is 7 years
2) Deed-in-Lieu is 4 years < 80% LTV and 5 years > 80% LTV for primary residences. 7 years for second homes and investment properties regardless of LTV.
3) Short Sales is 2 years < 80% LTV and 5 years > 80% LTV and 7 years > 90% LTV
4) Bankruptcy is 4 years
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Conventional Non-Conforming (JUMBO)

1) Foreclosure is 7 years
2) Deed-in-Lieu is 7 years
3) Short Sale is 7 years
4) Bankruptcy is 7 years

The above are the new guidelines that are expected to be announced soon. If you have any questions or fall into one of the above categories and are looking to purchase a home again...please call me directly: 561-602-1258

Thanks for reading

Shadow inventory threatens housing recovery

2011-01-21T06:11:00.001-05:00

NEW YORK (CNNMoney) -- There is a growing glut of foreclosed homes threatening to hit the market over the next couple of years, potentially delaying any recovery.

There were 1.7 million homes either owned by the bank or in some stage of foreclosure at the end of the third quarter of 2010, according to a recent report by Standard & Poor's. It would take 44 months, at the current rate of sales, to sell them off -- a 25% increase from the beginning of 2010. (S&P does not count home loans backed by Fannie Mae and Freddie Mac.)…

next, my commentary…

The paragraph above, in and of itself is troubling…but when you look at the statement within the parentheses, it becomes horrifying! The most recent statistic that I’ve read estimates in excess of 65% of all loans as being backed by Fannie or Freddie…and this S & P report just decides to leave that out? I have been telling my clients for a year or more that this distressed inventory backlog will continue to drag home values down for several more years…coupled with no real plan or prospects for meaningful job and income growth, and the market looks very, very soft to me.

The following is from the recent Mortgage Bankers Association Delinquency Report, and will be a real eye-opener:

Number of properties that are 30 or more days delinquent or in foreclosure: (A+B loans) 6,870,000 !

Big difference from the widely published news story in CNNMoney…over 5 million more at least 30 days past due or further along in the foreclosure process.

And Numero Uno on the list of states with highest percentage of non-current loans…you guessed it: FLORIDA

So, 44 months to sell off 1.7M (and this doesn’t count all of the “non-distressed” homes on the market)…so how many months to sell off 6.8M? Well, using my middle school math, I came up with 176 months of inventory…That’s over 14 years!

Not to beat a dead horse, but if you are thinking of selling, even (especially) if you owe more than your home is worth…lets talk about your options, market direction, etc. Call me directly at 561-602-1258. If I don’t answer, please leave me a message

How do I avoid a deficiency judgment?

2011-01-20T03:16:00.002-05:00

Boynton Beach FL – We frequently receive this question:

If I short sale an investment property, will the bank/investor pursue the deficiency?

Here was our answer. That is a legal question. Since I am not a lawyer I cannot answer it.

But, I do know that there are several things that you can do to get the lender to forgive you of the debt.

First, just work hard to convince your lender to waive the deficiency. But, be aware that Investment Property Short Sales are tougher because the lenders may be more reluctant to waive the deficiency. Many lenders will agree to waive it when you have presented financial statements that show you cannot afford the deficiency. We have methods that have been very successful in geting very large deficincies forgiven...if you schedule a consultation with me, we can discuss these strategies then.

If you can't get deficiency waiver language in your short sale approval letter, and the lender goes forward and gets an actual deficiency judgment, and they begin collection proceeding or sell the judgment to a collection agency...hire a good lawyer. They can usually find a hole in their court case and get you out of paying the debt. These lenders are so disorganized that the often do not have all their paperwork in order.

Or, they can find a situation where the lender broke FDCA Law. In that case, the lender is usually more than happy to settle with you versus facing a lawsuit.

Thinking about a short sale? I can help you short sale your property and never pay the bank another penny. Send me an e-mail at ShortSaleInfo@thejacksonteam.com. I will contact you for a free consultation.
Or, if you prefer, you can call me at (561) 602-1258

Considering a loan modification? Our loan modification kit has the instructions you will need to help you get a loan modification approved with your bank. Click here to request a copy.

Thanks for reading

The Jackson Realty Group, Personalized...Not Franchised
.
This is not intended as legal, technical, or tax advice. Please speak with a licensed professional before making any decision. Information is deemed reliable but not guaranteed as of the date of writing. The views expressed here are Steve and Jackie Jackson's personal views and do not reflect the views of The Jackson Realty Group Inc..

Is your home worth half of what you owe?

2011-01-20T02:37:00.001-05:00

Boynton Beach FL – We recently received a question from Luis. Here is Luis's Question.

"I am working on a loan modification on my home. I just don’t want to be upside down and want a fair interest rate. Why should I pay on a mortgage that is twice as much as my home is worth, plus the interest on that mortgage? It just doesn’t make sense. How can I get a loan mod with a fair interest rate where I am repaying what my home is worth today? Thank for your help, Luis.”

Here was our answer. You are asking for something that most lenders don’t like to do...principal reductions. Here is why.

Principal reductions usually have to be written down right away on their books. If you owe them $300,000 and they reduce your loan principal to $150,000, then they immediately have to reduce the company’s earnings by $150,000 for the year.

If they do that on enough loans, then it hurts the CEO’s ability to get a bonus. I don’t have much sympathy for the bank CEOs, but that’s how it works.

Here is what lenders like to do instead. They will reduce your interest rate to 2% for 5 years. After that, the interest rate will go back to the original level.

That way the write off will be much smaller than $150,000. That makes a much smaller difference on the CEO’s bonus for the year.

It’s also one of the reasons that most loan mod programs don’t work. The banks aren’t willing to be realistic.

It’s also why I think a short sale is the best principal reduction plan. Then you rent a home for 2-3 years and then buy a new one at today’s market level. That way you guarantee your principal reduction and don’t waste time arguing for a principal reduction with someone who isn’t allowed to give it to you.

We can help you short sale your property and possibly never pay the bank another penny. Send me an e-mail at ShortSaleInfo@thejacksonteam.com. I will contact you for a free consultation.When we talk, I will explain how the process works in detail and answer any questions you may have. Or, if you prefer, you can call me at (561) 602-1258

Thinking about a loan modification? Our Boynton Beach loan modification kit has the instructions you will need to help you get a loan modification approved with your bank. LoanModKit@thejacksonteam.com.

The Jackson Realty Group, Personalized...Not Franchised

This is not intended as legal, technical, or tax advice. Please speak with a licensed professional before making any decision. Information is deemed reliable but not guaranteed as of the date of writing. The views expressed here are Steve and Jackie Jackson's personal views and do not reflect the views of The Jackson Realty Group Inc..

A Common Loan Modification Mistake and How to Avoid It

2011-01-20T02:01:00.003-05:00

Boynton Beach FL – Here is a common loan modification mistake that many homeowners make. They accept a very short term payment agreement that is not a loan modification.

They could have gotten a real modification, but settled for whatever the lender recommended to them. They settled for what is called forbearance. Here’s how it works.

A forbearance does not reduce your payments. It doesn’t reduce your back payments, or reduces them very little. The lender just allows you to catch up on all the debt over a set time period.

You start paying your normal payments again. In addition, you also have to pay extra every month to catch up the back payments.

Many homeowners are so desperate to keep their home that they agree to this. It is the first thing recommended by their lender and they just accept it. Quite possibly, the homeowner could have received a real loan modification with genuine relief.

In some cases this is good for the homeowner.They didn’t experience a big drop in income and can afford the payment. But, if their income was subsequently reduced, then they are setting themselves up for failure. Why?

Many lenders have a policy that they won’t negotiate a loan modification with someone who has already defaulted on a forbearance or loan modification.No, they won’t admit this in public. And it usually isn’t a written policy. They just simply put people asking for a new modification on the back burner.

The bottom line: Don’t accept a forbearance unless you can afford the payments. And remember, if you do accept it and later default, then you are putting yourself at a much higher risk of losing your home.

We offer a loan modification guide to consumers. Here is what we cover in the Stop Foreclosure Institute's Loan Modification Insider Secrets Guide.

* An easy to understand, Step By Step Guidebook.

* How to write a Hardship Letter that gets your loan modification approved.

* Three big loan modification mistakes and how to avoid them.

* Loan Modification from the lenders point of view.

* How the Making Home Affordable Program can help you.

* What not to do so you don't risk being carted off to jail.

* How to calculate your budget properly to increase your chance of success.

To request this kit send me an email : LoanModKit@thejacksonteam.com

Thinking about a short sale instead of a loan modification? We can help you short sale your property without paying any closing costs or commissions. Send me an e-mail at ShortSaleInfo@thejacksonteam.com. I will contact you for an in-depth consultation.

When we talk, I will explain how the process works in detail and answer any questions you may have. Or, if you prefer, you can call me at (561) 602-1258

Thanks for reading this, Steve and Jackie Jackson.

ShortSaleInfo@thejacksonteam.com.

Personalized...Not Franchised

Steven Jackson specializes in loan modification assistance and short sales in Boynton Beach Florida. Boynton Beach Loan Modification Help, Boynton Beach Short Sales. Boynton Beach Short Sale Realtor,Short Sale Realtor. Boynton Beach FL Short Sales. Boynton Beach Realtor.

This is not intended as legal, technical, or tax advice. Please speak with a licensed professional before making any decision. Information is deemed reliable but not guaranteed as of the date of writing. The views expressed here are Steve and Jackie Jackson's personal views and do not reflect the views of The Jackson Realty Group Inc..

FTC Proposes Rule That Would Bar Mortgage Relief Companies From Charging Up-Front Fees

2011-01-06T05:27:00.002-05:00

The Federal Trade Commission moved to protect distressed homeowners from the promoters of bogus foreclosure rescue and mortgage modification services by proposing a new rule that would forbid companies to charge up-front for these services. Instead, companies could only collect payment after providing services.

“Homeowners facing foreclosure or struggling to make mortgage payments shouldn’t have to contend with fraudulent ‘companies’ that don’t provide what they promise,” FTC Chairman Jon Leibowitz said. “The proposed rule would outlaw up-front fees so companies can’t take the money and run.”

Read the entire notice on the FTC site here: FTC Proposes Rule That Would Bar Mortgage Relief Companies From Charging Up-Front Fees

Palm Beach County Bar Association - Residential Mortgage Foreclosure Mediation Program

2011-01-03T04:18:00.001-05:00

Below, from the Palm Beach County Bar Association website, are the details, forms and FAQ’s regarding the Florida State Supreme Court mandated pre-summary judgment mediated meeting between the foreclosed-upon homeowner and their lenders representative…

What is foreclosure?
Foreclosure is a legal process by which the mortgage holder causes the judicial sale of the secured real estate to pay a defaulted loan. The mortgage on real estate acts as collateral for the repayment of the loan so when this loan is in default, the mortgage holder exercises its rights to take the collateral by selling the home.

What is the RMFM Program?
The RMFM Program is the Residential Mortgage Foreclosure Mediation Program that has been ordered by the Florida Supreme Court, and the Fifteenth Judicial Circuit Court. This program mandates that all homestead foreclosure lawsuits filed on or after July 12, 2010, be sent to mediation prior to any final order being issued.

How do I enter the RMFM Program?
All homestead foreclosure suits that are filed on or after July 12, 2010 will be automatically referred to the RMFM Program. The Program Manager will contact you based on information received from the lender. However, if you have been served with a foreclosure suit and/or your contact information has changed, please contact the RMFM Program directly at (866) 900-4254 (toll free)

I am a Homeowner who was served with a foreclosure lawsuit filed before July 12, 2010. Can I participate in the RMFM Program?
You may request a referral to this Program by filing a Borrower’s Request to Participate in the RMFM Program (download copy here). File this request with the Court and mail a copy of the request to the lawyer for the Lender.

Is there a cost to me to participate in the RMFM Program?
There is no cost to homeowners for this program. The Plaintiff (usually the bank) pays the required fees, which include financial counseling and the mediation session. In the event that you choose to have a second mediation session, you will have to pay $100, which is one-half of the fees for this session. The Program anticipates that one mediation session will be sufficient for most cases and this second mediation is optional.

What financial disclosure information will I need to provide to the lender to proceed to mediation?
Most borrowers will need to file the Foreclosure Mediation Financial Worksheet (click here for that document).
Homeowners must sign and then mail, hand-deliver or fax the Release (last page of the financial agreement) to the RMFM program before the Program can schedule mediation.
Mail or hand-deliver to: Palm Beach County Bar Association, RMFM Program, 1601 Belvedere Road, Suite 304E, West Palm Beach, FL 33406.
Fax to: (561) 828-3922
Email with Release as a pdf to mediations@palmbeachbar.org
Borrowers will need to file Fannie Mae Hardship Form 1021 if they are seeking a Short Sale or Deed in Lieu of Foreclosure. (click here for that form)
For short sales, borrowers also need to file a signed purchase contract for the residence or a listing agreement for the sale of the residence, a preliminary HUD -1 form, and written permission from the borrower authorizing the bank or the bank's representative to speak with the real estate agent about the borrower's loan.
For Deeds in Lieu of Foreclosure, a current title search for the residence should also be uploaded.

What is a short sale?
A short sale is a sale for less than you owe on the mortgage loan.

What is a Deed in Lieu of Foreclosure?
A Deed in Lieu of Foreclosure is when you voluntarily execute a deed that transfers the property to the lender in exchange for the lender canceling, in part or in whole, the debt owed on the property.

Do I have the right to consult with an attorney?
Yes. You have the right to consult with an attorney at any time during the mediation process and to bring an attorney with you to the mediation session. You do not have to have an attorney; you may represent yourself. If you cannot afford an attorney, you may call the Legal Aid Society of Palm Beach County and inquire about their pro bono foreclosure assistance program, Monday through Friday, 9:00 a.m. to 5:00 p.m., (561) 655-8944 ext. 325 or (toll free) 800-403-9353 ext. 325. You may also contact the Lawyer Referral Program at the Palm Beach County Bar Association by calling (561) 687-3266 or (561) 451-3256 (Boca/Delray). There is a $30 fee for a half-hour consultation with an attorney through the Lawyer Referral Service.

Do all Borrowers who signed the mortgage need to attend the mediation session?
Yes, all Borrowers must be present at the mediation session. If not all Borrowers can attend, the Borrower not attending should bring a completed Power of Attorney for the other Borrower.

What happens if we cannot settle during the mediation?
The parties can agree to continue to another mediation session. If that session cannot be scheduled for the same day, this session is optional and both parties have to pay one-half of the fee, or $100 each for this additional session. If the parties cannot agree at all, and reach an impasse, then the case is returned to the court.

What happens if I do not attend mediation?
The case is returned to the court.

Link to Frequently Asked Questions About Mediation

Homeowner Forms

Help for Homeowners in Foreclosure – FREE!
presented by the Palm Beach County Bar Association & The Legal Aid Society of Palm Beach CountyFind out how the Residential Mortgage Foreclosure Mediation Program Can Help You
Space is limited. To reserve your seat, call the Palm Beach County Bar Association at (561) 687-2800
or RSVP by email

StreetInsider.com - Schiff: Look Out Below! Home Prices to Fall Additional 20%

2010-12-30T12:24:00.001-05:00

A ‘Happy New Year’ news story from Peter Schiff…one of the earliest predictors of the ‘pop’ of the housing bubble.

December 30, 2010 10:50 AM EST

According to Peter Schiff, the recent drop in home prices is unnerving, but there is still another 20% drop to go before we reach a historical trend line. (emphasis mine)

Schiff notes that some economists anticipate a further correction, but most don't believe that the vicious correction of 2007 and 2008 could return. To counter, Schiff notes that many underestimate how distorted the market had become.

From the start of 1998 through the middle of 2006, arguably at the peak of the market, the Case-Shiller 10-City Index rose an astounding 173% at 19.2% per year. Schiff notes that we now know that the gains had little to do with fundamentals and more to do with "distortionary government policies that mandated loans to marginal borrowers, and set off a national mania for real-estate wealth and a torrent of temporarily easy credit."

One of the co-founders of the Case-Shiller index, Robert Shiller, contends that home prices, from 1900 - 2000, followed a more muted 3.35% average growth rate, which included the Great Depression, post-war eras, and the boom of the 90's.

So, Schiff notes that in 1998, the Case-Shiller index was at 82.7. Following the 3.35% average annual price increase predicted by Shiller lands us at a point of 126.7 in October 2010. However, the Case-Shiller Index came in at 159.0, suggesting an additional 20.3% decline in the index to get it back to more normalized levels.

Schiff continues that no one is making a case that fundamentals have gained traction, and most point to government intervention as an artificial stop to the free fall. Programs like "the home buyer's tax credit, record low mortgage rates, government mortgage-assistance programs, and the increased presence of Fannie Mae, Freddie Mac and the Federal Housing Administration in the mortgage-buying business" have put the kibosh on falling prices for now.

But, contends Schiff, with "bloated inventories, 9.8% unemployment (and much higher REAL unemployment), a dysfunctional mortgage industry and shattered illusions of real-estate riches, does it makes sense that prices should simply fall back to the trend line?" He argues that they will overshoot to the downside.

So what's the outcome? A major market correction in the next year.
Schiff thinks not, rather that there may be potential for an additional 10% dip below the 100-year trendline in the next five years, especially if mortgage rates continue upwards to more historical rates of 6% or more. He notes that that would put the index at 114.02, or about 28.3% below where were at now. Even a 5% dip would put the index at 120.36, about 24.3% below current levels.

Concluding, Schiff comments that, "In trying to maintain artificial prices, government policies are keeping new buyers from entering the market, exposing taxpayers to untold trillions in liabilities and delaying a real recovery. We should recognize this reality and not pin our hopes on a return to price normalcy that never was that normal to begin with."

Military Service Members to Receive Foreclosure Protection Through 2011

2010-12-23T15:06:00.001-05:00

Posted by BEREL News Team on Wednesday, December 22nd 2010

Freddie Mac will provide “certain military service members” with foreclosure protection through 2011, the government-controlled GSE announced yesterday. Freddie Mac believes that by delaying foreclosures on homeowners currently serving in the military, many of these individuals may be able to get on track with their payments. To this end, the GSE’s loan servicers will delay the start of foreclosure proceedings for at least nine months on “any service members released from active duty between now and the end of 2011.”

Anthony Renzi, a Freddie Mac spokesman, characterizes the move as a “small act [that] will protect financially troubled service members when they return from active duty by giving them more time to work with their lender to stay in their home.” Freddie Mac is authorized to extend this protection through its original authorization in the Housing and Economic Recovery Act (HERA), passed in 2008, but had to extend the protection before the end of 2010 when its authorization to make such moves runs out. The protection only extends to military members with Freddie-Mac owned loans.

Attn: Bankers. Stop harassing Americans for money they don't have

2010-12-09T05:31:00.002-05:00

Pay up...OR ELSE

Boynton Beach FL - Maybe this is a pet peeve of mine. Or maybe it just seems ridiculous that someone would call a debtor over and over again asking to be paid, when they have already been told the debtor doesn't have the money to pay them.

Or maybe it is the fact that I see countless examples of debt collectors breaking the Fair Debt Collection Practices Act. But, no one seems to care that they are breaking the law.

The Fair Debt Collection Practices Act forbids collectors from threatening to sue you, but then not following thru and actually filing suit. To get around this rule, they will use language that sounds legal, but isn't.

In one situation, a debt collection firm in Buffalo, New York named their firm Hoffman, Weinberg & O'Brien to make it sound like they were a law firm. They would then leave messages on people's answering machines. They would say they were with the office of Hoffman, Weinberg and O'Brien and then say they may resort to future legal action. Or they would say they were calling about a pre-legal matter.

In addition, they would reference case number 8306042. If you didn't know any better, you would think the case number was for an actual lawsuit against you. Scary, right?

In addition, if a debtor tells them not to call anymore, then they are supposed to stop calling. They just keep on calling anyway. This is another example of them not obeying the law per the Fair Debt Collection Practices Act.

I allege that they willingly and knowingly break the law repeatedly. This is why we put Number Seven onto the Homeowner's Bill of Rights:

7. Stop the Debt Collector Harassment! The right to tell any and all debt collectors to stop calling and never receive a phone call from then again. In addition, this would include debt collectors that know the person's phone number, but will call family members in an attempt to embarrass the debtor.

This is America, people! Debtor's prison was abolished two centuries ago! It's time to update your activities to the Twenty-First Century!

Or take another example. A homeowner has never made a late payment in their entire life. They lose their job and find one in another state. The move, try to rent out their house, but can't afford the payments.

They get behind on their mortgage payment and credit cards. They enter the world of non-stop harassment. Debt collectors call them non-stop. These people aren't deadbeats. They are just struggling at the moment.

They won't stop calling even when the debtor asks them to stop. They would pay if they had the money. But they don't have it.

But, the people won't stop calling. The constant phone calls make their home life miserable. Don't you think it has gone too far?

I do. That's why we need a Homeowner's Bill Of Rights. Stop the debt collector harassment.
Thinking about a short sale? I can help you short sale your property and never pay the bank another penny. Send me an e-mail at ShortSaleInfo@thejacksonteam.com. I will contact you for a free consultation.

When we talk, I will explain how the process works in detail. If you prefer, then you can call me at (561) 602-1258.

Discover how other sellers successfully completed a short sale and request a free consultation by clicking here.

Thinking about a loan modification? Our Boynton Beach Loan Modification Kit has the instructions you will need to get a loan modification approved with your lender. Click here to request a copy.

Thanks for reading this,

Phone: (561) 602-1258. ShortSaleInfo@thejacksonteam.com.

The Jackson Realty Group; Personalized...Not Franchised

Steven Jackson specializes in distressed property assistance and short sales in Boynton Beach Florida. Boynton Beach Loan Modification Help, Boynton Beach Short Sales. Boynton Beach Short Sale Realtor Short Sale Realtor. Boynton Beach FL Short Sales. Boynton Beach Realtor.

Copyright 2010 SFI Marketing Institute, LLC. All Rights Reserved. This is not intended as legal, technical, or tax advice. Please speak with a licensed professional before making any decision. Information is deemed reliable but not guaranteed as of the date of writing. The views expressed here are Steve and Jackie Jackson's personal views and do not reflect the views of The Jackson Realty Group Inc.. This information on Boynton Beach Short Sales: Attn: Bankers. Stop harassing Americans for money they don't have is provided as a courtesy to our viewers to help them make informed decisions.

Homeless for The Holidays Rally Protesting Foreclosure Fraud, West Palm Beach Courthouse – Fighting Foreclosure Fraud by Sharing the Knowledge

2010-12-09T05:07:00.001-05:00

FOR IMMEDIATE RELEASE:

As already seen in many local, national, and international media outlets…

Homeless for Holidays Rally Protesting Foreclosure Fraud

West Palm Beach Courthouse

WEST PALM BEACH, FL – Thursday, December 9, from 2 p.m. to 5 p.m., along the east and west sidewalks of the Palm Beach County Courthouse there’s a rally protesting how foreclosure fraud leaves many families, seniors and children homeless.

The rally was organized by local foreclosure fighter advocates, Lisa Epstein and Michael Redman, of ForeclosureHamlet.org and 4closureFraud.org, respectively.

Samples of the fraud Epstein, Redman and others have exposed are more than one bank foreclosing in the same case, being foreclosed on a home with no mortgage, transferring mortgages from a defunct business, fabricated documents used to obtain foreclosure, lender break-ins, servicer induced default, and not receiving service of process and then foreclosed upon.

Already widely exposed is the “robo-signing” used for millions of property rights documents.

“Banks admit perjury and fraud! Indictments? NO! Rewarded with American homes? YES!,” exclaimed Epstein on ForeclosureHamlet.org. She got her feet wet in foreclosures as a nurse who regularly advocated for her patients with insurance, and just couldn’t stand on the sidelines while a brain tumor patient’s foreclosure paperwork didn’t look right. “It was like something struck inside me, like this is what I’m compelled to do. I can be a nurse for people caught in this foreclosure crisis.”

Redman found himself in the middle of the foreclosure pool when a relative was facing foreclosure and nobody had any answers to which of three or four supposed lenders owned and held the promissory note, not even the companies asking for payment. “This kind of stuff goes on all the time, and it’s everywhere,” Redman said. It was a natural for Redman, an online consultant, to start a website fighting foreclosure fraud.

Redman, Epstein, and many others agree that the foreclosure crisis reaches far and beyond the homeowners in foreclosure. It affects every one of us.

Red = Off Limits

Green = Protest Area

For further information about this or other events, or if you have a foreclosure story to share, visit www.4closureFraud.org and www.ForeclosureHamlet.org.

Homeless for The Holidays Rally Protesting Foreclosure Fraud, West Palm Beach Courthouse | Be there or be Homeless « Foreclosure Fraud – Fighting Foreclosure Fraud by Sharing the Knowledge

Dylan Ratigan and Congresswoman Kapur do a nice job explaining MERS, the TBTF banks, and Congress

2010-11-29T15:41:00.000-05:00

Hear what one of our recent short sale sellers has to say...

2010-11-25T10:10:00.000-05:00

Overview of the Senate hearings on the 'robo-signing' fiasco

2010-11-17T10:27:00.000-05:00

BofA deficiency release...maybe

2010-11-14T03:27:00.001-05:00

Courtesy of our good friend and top notch atty, Richard Zaretsky, is his latest post regarding BofA...

You may have been reading about Bank of America short sale approval letters and some changes that have occurred. The Bank of America Short Sale Approval Letter has had various versions dealing with deficiency of the promissory note. This article will look at the BoA short sale letter recent changes.

History - Before June 2009

Until June 2009 the typical Bank of America short sale approval letter was not a release of mortgage and a release of liability of the indebtedness (release of the note). My February 2009 article LENDER SHORT SALE ACCEPTANCE LETTER EXAMPLES - READ WITH CAUTION! contains a copy of the pre-June 2009 short sale approval letter. In it you see the language, "Upon receipt of the funds the bank will release the lien. The deficiency balance will be reported to the credit bureaus as "Charge Off" collectable balance. Liabilities for the deficiency balance to be determined."

After June 2009

After June 2009, the Bank of America short sale letter was materially changed in content and in look. The simple letter was gone. Now there was a form letter with distinct sections, one of which (the 2nd and 3rd paragraphs) states, "BAC Home Loans Servicing, LP and/or its investors may pursue a deficiency judgment for the difference in the payment received and the total balance due, unless agreed otherwise or prohibited by law, if the short sale closes on the loan referenced above."

The next paragraph deals with the demand for a "new" promissory note with different terms than the original promissory note (usually with zero interest and a different term for amortization), and states, "If this short sale is contingent upon BAC Home Loans Servicing, LP and/or its investors receiving a promissory note, we will reserve the right to collect the full amount on the new promissory note which may lead to us pursuing a deficiency on that balance should the need arise.

After August 2010

Beginning in late August 2010 (so I have read) the BoA letter language was material changed. The new form used language that states, "Upon receipt of the agreed amount, BAC Home Loans Servicing, LP, and/or its investors will waive the remaining balance due on the above referenced loan and release the borrower from further obligation therein, and waive all rights to pursue further judgment or deficiency. BAC Home Loans Servicing, LP will report the debt as "settled for less than the amount owed" and issue a 1099 for the remaining balance." Now I have my hands on just such a letter.

Here is the post-June 2009 BAC short sale letter:

The first paragraph in the above letter is actually very confusing and conflicting in its language. The reason for this is that the last two sentences that refer to tax consequences makes the reader think that this is a forgiveness of debt. This is because there are no material tax issues with the lender pursuing their deficiency - but there are definitely tax consequences when there is forgiveness of debt. (See my article which by its title says it all -- SHORT SELLER STILL MUST DECLARE INCOME ON SALE!). Why that language was there was because the lender "may pursue a deficiency judgment". In reality, from our experience many of the release of mortgage document received from Bank of America after the short sale using this letter contains language that the promissory note is "fully satisfied" or "paid in full" or that the "indebtedness is satisfied", or similar language. In a few cases our clients reported collection efforts instituted by BoA, but in each the presentation of the recorded release document with the magic payment statement resulted in the collection effort being seemingly abandoned. Five years (the Florida statute of limitations to file a suit on the deficiency) has not yet run, so this supposition still has some time to be proven.

The next paragraph in the above letter is about the collection on a promissory note and is simply that the new note is a new obligation and thus the lender can sue separately on this note if it is not paid. That is simple enough. When there is an absolute need for a promissory note, I suggest to some clients to accept that offer because many of these notes get further reduced based on a present cash value payout since the NPV (net present value) of a zero percent interest note for a relatively long term (we see 10 and 20 year terms) carries a hefty discount. It takes some time (but not much) before a deal can be struck for a discount, but could be a viable option for a seller.

Next I have displayed the new BOA short sale approval letter. Unlike its predecessors, it is the first clean, clear and understandable full deficiency waiver letter Bank of America has produced. Since there is no new promissory note, that paragraph is missing. The language is so clear; I don't see what I can add in this article to make it more understandable. As expected, it mentions that a 1099 will be issued for the forgiven portion of the note, and there will be unfavorable but accurate credit reporting on the borrower's credit report. The next sentence in the letter is actually important. Some people are actually worse off because of a short sale with forgiven debt because they are liable for the IRS tax bill that results. If the IRS tax bill is a debt that will be impossible for the borrower to honor, and no arrangement for lessening that debt is available, the borrower may actually be jumping from the frying pan into the fire. In such cases some other alternative, such as bankruptcy may be beneficial. Note that if you incur a tax liability from a short sale forgiveness before filing bankruptcy, it may not be dischargable! Thus careful planning is necessary.

Here is the post-August 2010 letter:

Please realize that currently BoA is using both letters, depending on numerous factors not all of which anyone outside (and probably inside) BoA can recite with certainty.

The question comes up when does BoA issue one letter or the other?? As you may or may not know, BOA is usually not the investor who owns the promissory note and mortgage - but BoA is the servicer and given the authority to negotiate the terms of the short sale, subject to final approval by the investor. That is why different lenders have BoA issue different terms for their short sale approvals, whether it be a contribution of cash to the short sale, or a post closing promissory note, or a residual deficiency option.

Copyright 2010 Richard P. Zaretsky, Esq.
------------------------------------
Be sure to contact your own attorney for your state laws, and always consult your own attorney on any legal decision you need to make. This article is for information purposes and is not specific advice to any one reader.
Richard Zaretsky, Esq., RICHARD P. ZARETSKY P.A. ATTORNEYS AT LAW, 1655 PALM BEACH LAKES BLVD, SUITE 900, WEST PALM BEACH, FLORIDA 33401, PHONE 561-689 -6660 email: RPZ99@Florida-Counsel.com - FLORIDA BAR BOARD CERTIFIED IN REAL ESTATE LAW - We assist Brokers and Sellers with Short Sales and Modifications and Consult with Brokers and Sellers Nationwide! Shortsales@Florida-Counsel.com New Website http://www.florida-counsel.com/.

See our easy to understand articles at:
TABLE OF CONTENTS - SHORT SALE AND LOAN MODIFICATION ARTICLES

Thanks Richard...great article

Unnoticed benefits of a short sale

2010-11-06T05:17:00.001-04:00

The unnoticed benefits of a Short Sale…Recently we read a story about a short sale in which an Air Force Officer and Homeland Security Guard avoided foreclosure by successfully completing a short sale on their home. A short sale meant more to them then most may realize, foreclosure didn’t just mean losing their home, it meant losing their security clearance at work. The lesser impact of a short sale and by avoiding a foreclosure judgment, both individuals were able to keep their security status at their jobs. Confirming what we read at Clearancejobs.com...the #1 reason individuals are denied security clearance is "Financial Considerations".

There are many benefits to a short sale vs. a foreclosure and we would be happy to share them with
you.

Freddie Mac sees no housing recovery soon

2010-11-03T12:58:00.001-04:00

Freddie Mac lost $2.5 billion in the third quarter and said it will be a "considerable time" before the housing market recovers.

Freddie Mac said the amount it set aside to cover credit losses tumbled by more than half, to $3.7 billion in the latest quarter from $8 billion a year earlier. The company said 3.8% of borrowers were 90 days or more late on payments at Sept. 30, down from 3.96% in June.

But that good news was tempered by the observation that more late borrowers are defaulting on their loans.

During the third quarter, the company continued to see slowdowns in new single-family delinquencies, a reduced volume of newly modified loans subject to individual impairment, and higher expected recoveries from mortgage insurers; however, those improvements were largely offset by worsening default probabilities.

The company's CEO, Charles Haldeman, was appropriately subdued in his commentary.

"As we near the end of 2010, the housing market remains fragile, and has recently come under renewed pressure from slowing economic growth, weaker employment and foreclosure uncertainties," Haldeman said. "We believe that it will be a considerable time until the housing market has a sustained recovery."

See the entire article here: Freddie Mac sees no housing recovery soon - Street Sweep: Fortune's Wall Street Blog

Is it safe to buy a foreclosure?

2010-10-26T12:49:00.003-04:00

Foreclosures Gone Wild...the trilogy

2010-10-18T09:41:00.003-04:00

Rather than repeat the entirety of all three recent posts that attempt to explain this recent foreclosure mess/fraud...here are the links to the actual posts over on my Winston Trails blog. It's a fairly short read...and will give you a good idea of the multiple ways the banks have created their own mess.

Foreclosures Gone Wild 1

Foreclosures Gone Wild 2

Foreclosures Gone Wild 3

Finally, Jon Stewart explains the foreclosure mess

2010-10-11T18:13:00.001-04:00

Be forewarned...this IS a Jon Stewart video...make sure no one easily offended is watching over your shoulder!

Great new board game...Foreclosure-opoly!

2010-10-11T12:43:00.004-04:00

Can't pay? WE'LL take your home...even if we don't have any paperwork giving us the right to!

Headlines from the last week:

I could keep linking to hundreds more references regarding the banks fraudulent processing of foreclosures, both in Florida and elsewhere...but, the most important things to take away from this recent development is:

If you receive a foreclosure notice from your lender...hire a good attorney immediately!
Realize that you DO have options and defenses

If you are behind on your mortgage...about to fall behind, or are upside down on your loan, give me a call on my direct line, 561-602-1258. or request our report by clicking on the image below:

Thanks for reading,

Steve Jackson

Not a political endorsement, but a decent explanation of the mortgage foreclosure process fraud recently uncovered

2010-10-04T16:17:00.000-04:00

Now this is not a political endorsement of Mr. Grayson...he just happens to be the one who explains, on YouTube, what has recently come to light (at least to the mainstream media) regarding fraudulent foreclosure filings, judges who allow a homeowners atty only a 90 second hearing, and more.

Bank of America delays foreclosures in 23 states - USATODAY.com

2010-10-02T00:50:00.001-04:00

Starting on Friday, BofA is delaying foreclosures in 23 states because of possible problems with paperwork, the third major servicer to take such action as investigations mount into tens of thousands of potentially faulty foreclosures.

After reviewing its own process for preparing affidavits used in the foreclosure process, Bank of America decided to suspend foreclosures in those states that require judicial approval. The bank notified courts on Friday to pull affidavits in foreclosure cases that have been submitted for judgment but not yet decided, says Bank of America spokesman Dan Frahm.

Frahm says he doesn't know how many foreclosures will be affected. Customers will not be notified because, while the review may cause some delays in the judgment of the affidavits and foreclosure sale dates, homeowners should not otherwise be affected, he says.

"We have been assessing our existing processes," Frahm says. "To be certain affidavits have followed the correct procedures, Bank of America will delay the process in order to amend all affidavits in foreclosure cases that have not yet gone to judgment in the 23 states where courts have jurisdiction over foreclosures."

Two other major servicers — JP Morgan and the GMAC Mortgage unit — have either delayed or halted foreclosures in 23 states. Those actions were taken after depositions taken in lawsuits by homeowners turned up officials who said they signed documents without reviewing them or having a notary present.

Read the full article here: Bank of America delays foreclosures in 23 states - USATODAY.com

WHY IS THE BANK FORECLOSING IF I AM DOING A SHORT SALE (OR LOAN MODIFICATION)?

2010-09-16T05:27:00.001-04:00

A local attorney who counsels many of our clients, Richard Zaretsky, has just posted this excellent article on his blog. It answers a very common, but perplexing question.

Do We All Have A Common Goal? Do all short sellers cooperate with the short sale process? The answer is a resounding NO. The short seller is typically living in the house "for free" and is not all that interested in moving out and paying rent. Therefore, short sellers are notoriously delay oriented. Banks believe this to be a fact.

I Want To Stay! Loan Modification borrowers are in a somewhat different boat. They don't have any plan to move out of the house as they want to modify the loan to something more affordable.

They Want WHAT!?!@? Short Sellers and Loan Modification borrowers have something in common - they have to accept the lender's terms of the short sale or loan modification or face loss of the home through foreclosure. The alternative of the loss of the house in foreclosure is usually not an desirable option. The lender can never be sure that (a) the buyer in a short sale is not going to walk away from the sale at the last minute, (b) the seller will accept the demands the lender conditions the short sale approval upon, or (c) the borrower will accept the loan modification terms offered by the lender (if any are offered at all).

Hurry Up and Wait? So knowing or believing all the above, if you were the lender and you knew that from start to finish the mortgage foreclosure process was going to take 300 to 700 days and the short sale or modification may or may not end up successful, would you wait 3 or 5 months for a short sale contract or for the borrower to submit complete loan modification information - BEFORE you started the clock on the foreclosure process? OF COURSE NOT! Therefore, even if you have a good faith intention to proceed with a short sale or loan modification, the lender will NOT stop a pending suit or delay filing an otherwise ripe suit for foreclosure. The result is one hand of the lender pursues solutions with the borrower and the other hand of the lender pursues solutions against the borrower - all at the same time.

Remind Me To Stop Before I Drive Off the Cliff! Even the HAFA and HAMP programs have guidelines for participating lenders that state that the lender will not have to stop the foreclosure process - but only that if a borrower is accepted into the processing of under HAFA or HAMP, the lender will not actually have the foreclosure sale! But they can go all the way to getting a foreclosure sale date set!

So if you are trying a short sale or modification, don't be surprised when the Sheriff rings your doorbell at 6 a.m. with a subpoena and summons and complaint for foreclosure even though the nice people at the bank are helping you in your "solution". If you are 90 days or more late (typically), you should expect that visit and introduction to your foreclosure complaint very very soon. And once you get served BE SURE TO IMMEDIATELY CONTACT YOUR ATTORNEY TO DISCUSS THE FORECLOSURE AND WHAT SHOULD BE DONE ABOUT IT.

Read Richards entire article here: WHY IS THE BANK FORECLOSING IF I AM DOING A SHORT SALE (OR LOAN MODIFICATION)?

Fannie Mae and Freddie Mac HAFA program details

2010-09-14T06:37:00.001-04:00

If your loan is with Fannie Mae or Freddie Mac and you want to see if you may qualify for their HAFA Short Sale/D.I.L. program, click on the applicable image below:

If you are having difficulty making your mortgage payment, are at risk of not being able to make your mortgage payment in the near future or are upside down on your home and would like to see what your options may be...please call me, Steve Jackson, on my direct line at 561-602-1258.

Dept of The Treasury Video on Foreclosure Alternatives

2010-09-10T07:09:00.002-04:00

More Loan Mod troubles

2010-09-10T06:29:00.001-04:00

Working on the inside of this industry, it is easy to see through the smoke and mirrors being used by the TBTF (too big too fail) lenders when it comes to "extend and pretend". They will do what is in THEIR best interests regardless of public statements to the contrary.

I have seen too many borrowers taken advantage of when attempting to negotiate a forebearance or loan mod without professional and legal assistance. The banks are no better than low-life debt collectors that will say anything to get some more money out of someone. But now, people have had enough and it is getting some national press...consumers are suing the banks for not following through on loan mod committments.

Read the full article from today's USA today HERE

If you have ANY questions regarding your loan, please give me a call. I promise that if I don't know the answer or solution right away, I will find out or point you in the direction of the person who does know. My direct line is 561-602-1258.

Thanks for reading

Experts and news outlets surprised: Home sales plunge!

2010-08-24T15:04:00.001-04:00

But if you read this blog…YOU shouldn’t have been surprised at all. I have been counseling my sellers for many months now…you want to be the NEXT home to sell!

Here are some snippets from some of today's press releases:

1) Sales of previously occupied homes plunged last month to the lowest level in 15 years, despite the lowest mortgage rates in decades and bargain prices in many areas.

July's sales fell by more than 27 percent to a seasonally adjusted annual rate of 3.83 million, the National Association of Realtors said Tuesday. It was the largest monthly drop on records dating back to 1968, and sharp declines were recorded in all regions of the country.

2) With home sales plunging to their lowest level in 15 years, economists warn that a double-dip in housing prices is just around the corner, threatening to further slow the overall recovery.

Existing home sales sank 27.2% in July, twice as much as analysts expected, to a seasonally adjusted annual rate of 3.83 million units. Much of that drop is attributed to the end of the $8,000 homebuyer tax credit. Sales of single-family homes, which account for a bulk of the transactions, are at the lowest level since May 1995.

Inventory has also continued to climb, rising 2.5% to 3.98 million existing homes for sale. That represents a 12.5-month supply at the current sales pace, the highest since October 1982 when it stood at 13.8 months. A six-month of supply is considered normal.

Chart of existing home sales…watch out for that falling knife!

"....Purchases of existing homes plunged 27.2 percent to a 3.83 million...Estimates in the Bloomberg survey of 74 economists ranged from 3.96 million to 5.3 million..." Good job experts

Still want to listen to the ‘experts’?

If you are even thinking that you may want/need to sell anytime in the near and not-so-near future…please give me a call so we can have a lively discussion regarding my recommendations. My direct line is 561-602-1258

Thanks for reading,

Steve

A rundown of HAFA

2010-08-11T03:39:00.004-04:00

The expansion of the government's Home Affordable program introduces new benefits for those homeowners who are no longer able to retain their home but would still like to avoid foreclosure. To qualify under Home Affordable Foreclosure Alternatives (HAFA), you must meet the eligibility criteria for the Home Affordable Modification Program (HAMP).

Why should I consider a HAFA short sale?
If you owe more on your mortgage than your home is worth and are unable to keep up with your mortgage payments, a HAFA-eligible short sale will:

Help you avoid foreclosure
Allow you to be "fully released" from any further liability on your mortgage
Provide financial assistance of $3,000 to help with relocation expenses

Am I eligible?
Homeowners who meet the eligibility requirements for the Home Affordable Modification program are eligible under the Home Affordable Foreclosure Alternative program, even if you have been unable to complete the Home Affordable modification process. Following are some general eligibility criteria:

You are facing hardship which prevents you from being able to maintain the monthly mortgage payments.
Your mortgage is on your primary residence
Your mortgage is a first lien mortgage originated on or before January 1, 2009
The outstanding balance of the loan is under $729,750 for single family property.
Your total monthly payment on your primary mortgage is more than 31% of the gross income of all borrowers on the mortgage.
You have already been considered for Home Affordable Modification and one of the following are true:
You do not qualify for a Trial Period Plan
You have not successfully completed the Trial Period Plan
You are delinquent on your Home Affordable Modification, missing at least two consecutive payments
You request a short sale or a deed-in-lieu

How is the HAFA program different than a regular short sale?
The HAFA program is part of President Obama's Home Affordable program. This provides new guidelines designed to simplify and speed up the short sale and deed-in-lieu process as well as offer homeowners some additional financial assistance. The eligibility criteria are based on the terms set forth under this government initiative. If you do not meet the eligibility criteria under HAFA, there is a good chance that you may still be able to work with your lender on a short sale.

What if I don't qualify under HAFA but am interested in a short sale?
Your lender will most likely still consider a regular short sale, even if you do not meet the HAFA eligibility requirements.

In a HAFA short sale, how is the value of my property determined?
Your lender will independently establish property value and an approved list price (if you have asked for participation in HAFA BEFORE you have an offer on your home. If so, the home's pre-approved listing price may be based on either:

an appraisal performed in accordance with standard appraisal practices
one or more Broker Price Opinions, of which must be dated within 120 days of the Short Sale Agreement

How long will the short sale process take?

You will be allowed 120 days (with extensions up to a year possible) to market and sell the property.
The property must be listed with a licensed real estate agent experienced in selling properties in the neighborhood.

Marketing of the property may run at the same time as the foreclosure process. No foreclosure sale can take place during the marketing period specified in the Short Sale Agreement as long as you're acting in good faith to sell the property.

Can I select my own real estate agent or are they assigned by the lender?
You should select your own agent. Select one that is familiar with short sales, HAFA, and your area, and one you are comfortable working with.

Is there a fee to participate in HAFA?
No. But you may be required to make partial mortgage patments during the process.

How long will this program be offered?
This program will accept eligible borrowers until December 31, 2012.

Go HERE to check if you are eligible

Important information for buyers AND sellers

2010-08-07T08:38:00.000-04:00

Any of you thinking of either buying or selling a home in the near future should watch this 2 minute video.

Don't end up in jail for debt!

2010-08-07T07:35:00.001-04:00

From "The Consumerist" is an article reminding us to READ OUR MAIL!

Nearly everyone who gets thrown into jail over money they owed ignored correspondence sent to them about the lawsuit. What can happen is if you ignore the summons and complaint, the plaintiff can win the case by default. Now they have a judgment against you and they can ask the court to issue an order making you show how much money you have. If you ignore that court order, the judge can issue another order to make you come in and explain yourself. If you then also ignore that order, the judge will issue a bench warrant and the sheriff can come and arrest you.

So face up to the facts and read your mail. Being in debt is not a "CD of the month club" you can't just change your address and hope they go away.

HERE is the link to the original post on the Caveat Emptor blog.

Answers from Fannie Mae...

2010-08-05T05:14:00.002-04:00

Good job Fannie Mae!

They have just gone live with a new website for homeowners in difficult situations...

It is a fairly comprehensive and accurate site that provides information regarding the options available to you regardless of whether you want to leave your home or try to stay in your home.

Check it out.

HAFA explained

2010-07-20T03:27:00.003-04:00

What is HAFA?
The Home Affordable Foreclosure Alternatives (HAFA) Program is a government-sponsored initiative led by the US Treasury Department, administered by Fannie Mae with Freddie Mac as compliance agents, and executed by participating lenders to help homeowners avoid foreclosure, specifically through short sales or deeds-in-lieu.

Who can participate in the HAFA program?
The participating servicers must assess a borrower for HAFA if they request to short sale or deed in lieu under the terms of HAFA. They must also consider a homeowner for HAFA within 30 days of not qualifying for a HAMP (Home Affordable Modification Program) modification, having not successfully completed a HAMP trial period, or having missed at least 2 consecutive payments on a HAMP modification. If a homeowner had asked the servicer to allow them to short sell under the terms of HAFA, the servicer is required to first offer them a loan modification or retention program first.

Can sellers trying to do a HAFA short sale also be asking for a HAMP modification?
The two cannot be done at the same time. It is a requirement of HAFA that a homeowner is not participating in a HAMP program.

Does the homeowner have to live in the property to be considered for HAFA?
“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 09-09]

What loans are not eligible for HAFA short sales?
Fannie Mae, Freddie Mac, FHA, or VA

What lenders are participating in HAFA?
As a rule, lenders already participating in the Home Affordable Modification Program (HAMP) are participating in HAFA. For a full list of servicers participating in HAMP, visit Making Home Affordable Participating Servicers List.

When does HAFA expire?
HAFA is set to expire December 31, 2012. Like other government initiatives, if the program is successful, it may be extended.

I heard that Approvals only take 10 days. Is that so?
This is a misconception and a truth. HAFA speeds up the short sale process by putting in distinct timelines. One such time-line is servicer response to a completed application no later than 10 days after submission. The longest amount of time you should expect a HAFA short sale to take is 5 months. At the servicer’s discretion, the program can be extended up to 12 months.

Do HAFA short sales require an agent list the property?
YES. All HAFA short sales must be listed by an agent.

How is HAFA different from a regular short sale? There are quite a few issues that differentiate a HAFA short sale from a non-HAFA short sale, including: 1) set timlines, 2) pre-approved selling prices, 3) payments to the sellers upon completion...

Do the seller’s get an incentive? YES. HAFA will provide sellers up to $3000 for Relocation Assistance if they complete the HAFA short sale or deed in lieu process. Only one payment per household is given.

Who completes the Short Sale Agreement ?
This form is completed in cooperation with the listing agent so that the servicer knows that the agent agrees to the HAFA program terms and conditions.

Are their tax and credit consequences from a HAFA short sale or deed-in-lieu?
The difference between the remaining amount of principal owed and the amount that the servicer receives from the sale must be reported to the Internal Revenue Service (IRS) on Form 1099C. It will be reported as debt forgiveness that could be taxed as income. The $3,000 Borrower Relocation Assistance could also be taxable. Sellers need to be aware of the income tax consequences and/or derogatory impact on credit that may come with a short sale. Sellers should always consult a tax accountant, the IRS and appropriate legal counsel to determine potential liabilities and to explore other options.

CLICK ON THE HAFA BUTTON ON THE TOP OF THE RIGHT HAND COLUMN TO SEE IF YOU MAY BE ELIGIBLE TO PARTICIPATE IN THE HAFA PROGRAM

This blog is designed to provide information in regards to the subject matter covered. The Jackson Realty Group Inc, any of its founders, employees, contributors, staff, affiliates are not to be held liable for information shared. Readers are encouraged to verify all information posted and use at their own risk.

DEED IN LIEU - PRESERVATION COMPANY FRAUDULENT BILLS - WATCH OUT!

2010-07-17T13:41:00.001-04:00

I just can't get a day of rest! One of my clients had a rotten experience this week with a home inspector.

REDC, the California company that does default solutions and auctions for lenders, has gotten a nice niche for doing home inspections for lenders just prior to the lender accepting and filing a deed in lieu of foreclosure. They hire local inspectors and contractors to review the interior and exterior of the home and make necessary remedial actions if necessary. The problem is that some of these inspectors are criminally fraudulent - and they are not only ripping off the distressed homeowner, but the banks too.

For example (dates and names have been altered for anonymity) - Renee, a client of ours agreed to a deed in lieu proposal from Bank of America on her $300,000 plus immaculate home in Palm Beach County, Florida. The lender encouraged her not to do a short sale and instead to do a cash for keys deed in lieu which would have put over $6,000 in her pocket for moving out.

The DIL requirement was for her to sign the documents and be out by June 15th, and she did so and was out before then and continued to pay the HOA, electric, run the A/C and pay the gardener. The inside was left "as new" clean.

The REDC inspector then came out the second week of July and found and charged for smoke detectors (the house has an alarm system with all required smoke detectors), hazardous material handling and disposal (they threw out the purposely left small cans of paint for touch up), dehumidifiers (the a/c was left on 80 degrees and all a/c central units were working perfectly), and outside trash removal from the gardens (the house is impeccably maintained outside by a weekly gardener). All this cost the homeowner through a direct reduction of the "cash for keys" payment, with no room for dispute or argument with REDC or the lender - "take it or leave it"!

These "PRESERVATION COMPANIES" have it sweet - often they deal with abandoned or walk away homes or borrowers that just don't care anymore. Lenders are relying on the outsourcing company and don't have a check and balance system for their billings. One Preservation Company contractor told one of our clients, "Without my even telling him what was on the bill, he told me they automatically add bogus charges such as dehumidifiers, smoke alarms, strapping down outside air conditioners, and charges for removal of documents (such as the appliance manuals and condo documents left in a kitchen drawer for the new owner). He told me unbelievable stories of being paid to add a smoke detector to a room that already had 5 on the ceiling."

Since these are (and in this case was) a lender federally insured by the US government, the conduct by the contractor inspector and condoned by REDC is outright fraud on you and me! Such conduct is probably also bank fraud, but I will let the experts decide about that issue.

BE CAREFUL WITH HOME INSPECTORS SENT BY LENDERS!!!! They probably are not on the side of the homeowner and they being human are only trying to make a buck ... or three.

Richard Zaretsky, Esq., RICHARD P. ZARETSKY P.A. ATTORNEYS AT LAW, 1655 PALM BEACH LAKES BLVD, SUITE 900, WEST PALM BEACH, FLORIDA 33401, PHONE 561 689 6660 begin_of_the_skype_highlighting email: RPZ99@Florida-Counsel.com - FLORIDA BAR BOARD CERTIFIED IN REAL ESTATE LAW - We assist Brokers and Sellers with Short Sales and Modifications and Consult with Brokers and Sellers Nationwide! Shortsales@Florida-Counsel.com New Website www.Florida-Counsel.com.

Free report...Options and Solutions

2010-07-15T06:52:00.000-04:00

Did you know that almost 1 out of 4 Florida homeowners with a mortgage is at least 30 days past due? And, that over 48% of all Florida homeowners with a mortgage owe more than their home is worth!

If you find yourself in a difficult situation with your home, we have the experience and resources to answer your questions, address your concerns and provide alternatives and solutions.

If you would like a free copy of our new report, “Options And Solutions For Homeowners In Foreclosure” please give us a call at 561-602-1258 or send us an email at Report@thejacksonteam.com

Thinking about just walking away? Think again!

2010-07-09T07:39:00.001-04:00

A few days ago Fannie Mae announced policy changes designed to encourage homeowners to "work with" their lenders and explore alternatives to foreclosure as opposed to just walking away...some are calling it "strategic default".

Fannie Mae has publicly threatened to punish strategic defaulters by make them ineligible for a Fannie Mae backed loan for 7 years. Rumor has it that they will determine "strategic defaulters" (those that could afford to pay but chose not to) from non-strategic defaulters by pulling credit reports to see if the borrower was behind on their other obligations at or around the time of default/foreclosure.

The main foreclosure alternatives are loan modifications and short sales. We have been saying for months and months that in almost every situation, a short sale will be better for a homeowner than will a foreclosure.

A homeowner/borrower with extenuation circumstances or a documentable hardship who works out a foreclosure alternative with their lender could be eligible for a new mortgage in three years and possibly in as little as two years, depending upon the circumstances.

If you feel that you want to keep your home long term, and still have income to support a continued mortgage, tax and insurance payment, then attempting a loan modification may well be the best first choice. But if a loan modification is not approved or not what you desire, than a short sale may well be the way to go.

To see if you may qualify for the new HAFA short sale program, click the HAFA link to the right. But, by all means, explore your foreclosure alternatives and become aware of the ramifications of any avenue you decide on.

A 4th of July gift for you...

2010-07-04T05:59:00.001-04:00

A beautiful acapella version of our national anthem

Disastrous home sales report - July 1, 2010

2010-07-01T11:47:00.001-04:00

The experts expected home sales to drop once the homebuyer tax credit lapsed at the end of April, but the depth of the decrease was shocking (only to the “experts”).

According to the National Association of Realtors (NAR), pending home sales fell a whopping 30% in May. Their index, which measures signed sales contracts but not closed sales, plunged to 77.6 from 110.9 in April. It's even off 15.9% from a year ago when the nation was barely emerging from the recession.

The pending home sales report is a disaster," said Mike Larson, a real estate analyst for Weiss Research. "Sales fell off a cliff after the tax credit expired. It's the biggest monthly decline ever and the index is at its lowest level since NAR began tracking it in 2001."

(As expected)…Lawrence Yun, NAR's chief economist, downplayed the damage a bit. According to him, customers rushed into deals to claim the credit, borrowing from May sales. Once the economic recovery comes into full swing, housing markets will heat up. "If jobs come back as expected, the pace of home sales should pick up later this year," said Yun, "and reach a sustainable level of activity given very favorable affordability conditions."

The question is when -- or if -- the job market will ever bounce back.

"We're not creating jobs," said Larson. "The housing problems now are being driven by broad economic problems."

Disastrous home sales report - Jul. 1, 2010

Strategic Defaults UP – Loan Modifications Down

2010-06-26T21:31:00.001-04:00

C-Span is a wonderful thing. Just listen or watch - The House Oversight and Government Reform Committee hearings yesterday brought in some interesting statements from CEO's and Presidents of Bank of America, JP Morgan/Chase and others.

As I reported in my article WALK AWAY FROM THE PROPERTY - STRATEGIC MORTGAGE DEFAULTS GROW TO 26%, that figure is now updated by the University of Chicago and Northwestern University researchers for the previous figures - a year later the strategic default rate is up another 10%!

Why is this happening? Industry leaders blame the government programs. The HAMP program has 800 specific requirements for the borrower - 800 !!! No wonder it takes 4 to 6 months for a person to go from trial modification to permanent modification. Numbers for successful conversions under HAMP is running about 10% of trial modifications.

What makes a borrower ineligible for HAMP or other (proprietary) modification programs of the lender? Testimony today said that government regulations of easy credit made the banks make loans to people that could not afford the mortgages they got - and this is now the end result - these borrowers still do not qualify even for a modification! A big reason for rejection - trial mod recipients don't pay the reduced payments or don't provide necessary documents.

Modification requirements always now require real, as opposed to "stated", income revelations. Many borrowers don't give the required information on their "real" income to qualify for the modification. Why? Testimony suggested being afraid of the IRS, or being intimidated because of perhaps false documents in the beginning, are other reasons.

I loved the comments from Rep Elijah Cummings - his staff sent documents on behalf of constituents to a lender and those documents got "lost" - several times! And he had proof that payments were made to the lender and the lender failed to acknowledge the payment even when the Congressman's staff showed the lender the cancelled check.

When asked what is the solution - lenders said there needs to be a "dignified transition". What is THAT? A "dignified transition" is making homeowners into renters! " Not all homeowners should be owning a home". Well, I cannot disagree with that, but it just does not sit well. So they suggest that short sales be the "dignified solution".

Maybe Washington is listening and even feeling the pain. Keep watching and tell your Washington representatives what you think needs to be done.

2010-06-20T07:04:00.002-04:00

Animal House, Belushi and Housing?

2010-06-10T08:45:00.000-04:00

Seems like John Belushi's classic quote from Animal House: "Over, did you say over, nothing is over until we decide it is!" is the mantra for a few high profile real estate, mortgage and financial industry execs. Below are some excerpts from very recent interviews and reports:

Stan Humphries, chief economist of Zillow: “Most consumers tend to be overly optimistic about what the future holds,”..."the housing recession is not over, prices are continuing to fall"..."We think the bottom is going to be a long and flat affair"...“Foreclosures are increasing and we will reach a peak in foreclosures later this year. These foreclosure rates won’t recede quickly. They’ll stay high.” ...referencing the recently expired tax credits, he said “We will see payback in July and August,”..."as long as unemployment is extremely high (8 percent to 10 percent, or higher), and large numbers of homeowners (23.3 percent) are underwater (almost 49% of all mortgage holders in Florida), foreclosures will stay high. Also, there are as many as 7 to 8 million housing units in the “shadow inventory,” many of which will turn into foreclosures as well... there are also 5.3 million “sideline sellers” just waiting to jump into the market and list their properties..."If you really want to know when the housing market will return to normal, the real estate experts and economics at my conference are talking about 2013 – or longer".

This from the 'always optimistic' National Association of Realtors: Twice as many homes were added to the market as were sold in April, according to the National Association of Realtors...the housing inventory is back to where it was in 2009, which is lousy news for home price appreciation.

Michael Fratantoni, the Mortgage Bankers Association’s vice president of research and economics: "Overall mortgage application volume, which includes loans for purchases and refinancings, dropped by 12.2 percent during the week ending June 4, compared with the previous week...“Purchase applications are now 35 percent below their level of four weeks ago, as homebuyers have not returned to the market following the expiration of the homebuyer tax credit at the end of April".

James J. Saccacio, CEO of RealtyTrac: "The numbers in May continued and confirmed the trends we noticed in April: overall foreclosure activity leveling off while lenders work through the backlog of distressed properties that have built up over the past 20 months. Defaults and scheduled auctions combined increased by 28 percent from 2007 to 2008 and another 32 percent from 2008 to 2009 — creating a build-up of delayed bank repossessions. Lenders appear to be ramping up the pace of completing those forestalled foreclosures even while the inflow of delinquencies into the foreclosure process has slowed.” This is precisely the event that CNBC's Diana Olick was warning about a month ago. Housing is about to take fresh new turn lower.

Michael Pento, Chief Economist for Delta Global Advisors: "We need to sell assets, and we need to allow the deleveraging process to consummate. We are going in a wrong direction and that's the double dip recession is virtually assured. 2008 taught us very clearly that decoupling is a dodo bird's philosophy. The US is headed down. You'll see home starts, permits, sales plummet in the next few months, that's going to add more supply to the housing market..."

Sorry for the gloom and doom. But my job here is to educate my readers and present the information that may not be getting to them in the newspapers or on cable. I try to help my clients and readers make the best housing-related decisions based upon ALL of the pertinent data...

If you are having trouble making or are upside-down on your mortgage...lets get together to discuss what your options are.

As always...thanks for reading.

Steve Jackson

HAFA for ALL!!!

2010-06-04T13:19:00.000-04:00

Well, it's official. Fannie Mae and Freddie Mac just announced the introduction of their own HAFA programs. They’re both scheduled to be implemented by August 1, 2010, and the programs are very similar to HAFA in that they simplify and streamline the use of short sales and deed-in-lieu (DIL) options and use similar forms and timelines. In addition, like HAFA, the program expires December 31, 2012. Now, if you have a Fannie Mae OR a Freddie Mac backed loan you may be eligible for thier HAFA program. The original HAFA program that was rolled out in April was only for non-GSE loans (GSE=govt service entities).

One major difference to you as a seller is the option of: The Deed for Lease (D4L). It is available for borrowers who request and are approved to remain in the property following a successful DIL.

If you are not sure if you have a GSE or Non-GSE loan and would like to know what your options are, please call or email me right now.

561-602-1258
Click here to email instead - be sure to include your full contact info and your address

Thanks

Falling home prices raise fears of new bottom - Yahoo! News

2010-05-25T14:59:00.002-04:00

Tax credits and historically low mortgage rates have failed to lift home prices so far this year. Prices fell 0.5 percent in March from February, according to the Standard & Poor's/Case-Shiller 20-city index released Tuesday .
The co-creator of the Case-Shiller index, who predicted in 2005 that the housing bubble would burst, is raising concerns that the worst may be ahead. That fear is shared by other economists who point to weak job growth, tight credit and many more foreclosures ahead.
"I'm worried still about the risk of a double-dip," economist Robert Shiller said in an interview.
The month-to-month drop from February to March marked the sixth straight decline. Prices in 13 of the cities fell. Only six metro areas recorded price gains. One, Boston, came in flat.
In the first quarter of 2010, U.S. home prices fell 3.2 percent compared with the fourth quarter.

Falling home prices raise fears of new bottom - Yahoo! News

Short Sale Myths

2010-05-13T11:43:00.001-04:00

Short Sale Myths De-Bunked

RISMEDIA, May 13, 2010—With short sales making up almost 35% of home sales in March and the country with a national foreclosure problem, I Short Sale, Inc., one of the largest short sale firms in the U.S., sets the record straight on common short sale myths.

1. You must be default on your mortgage to negotiate a short sale. Short sales are not a function of default status on a mortgage. They are the result of the bank mitigating a potential default situation that, in the long run, will cost more money to the investors. We have completed many short sales in instances when the borrower was not in a default situation.

2. Listing my home as a short sale is embarrassing. Anytime we get ourselves into a tough financial situation it can cause some embarrassing feelings. It is important to remember that those feelings will not help us get back onto stable financial ground. We need to overcome our feelings and do what is right to protect our financial futures.

3. Buyers aren't interested in short sale properties. Short Sale properties are often times available at a competitive price to other properties on the market. In many cases, short sale properties are very well cared for and have not had to endure the deferred maintenance of a REO property. Short Sale properties are in great demand in the marketplace.

4. There's not enough time to negotiate a short sale before foreclosure. A good negotiator takes into account the timeline affiliated with a foreclosure. There is always a chance that a short sale can be negotiated. However, the only way to know for sure is to try.

5. The bank would rather foreclose than complete a short sale. Banks do not want to foreclose on property. It is expensive and carries a high level of liability once the bank owns that property as an REO. Wherever possible, banks are seeking other loss mitigation options before foreclosure.

6. Short sales are impossible and never get approved. Short sales are complicated, but not impossible. We negotiate short sale approvals every day.

Short Sales in Palm Beach County Florida: Foreclosure Alternatives in Palm Beach County Fl

Check out this great MSN video - Why keep paying the bank?

Will the Govt. force you to declare bankruptcy as a result of a short sale?

Are you “choosing” foreclosure?

1) Loan Modification

2) Refinancing

3) Forbearance

4) Bankruptcy

5) Deed in Lieu of Foreclosure

6) Short Sale

A short sale is the process of selling a home through which the lien holder(s) agrees to settle for less than they are owed.

Foreclosure/Short Sale…1099 differences

Fannie Mae forebearance extension just announced

Florida Hardest Hit Fund Info

Documents typically required for a short sale file to be submitted

Financial Information

Hardship information

Mortgage & Other Relevant Property Information

Other Pertinent Documentation

Loan Modification...who really benefits?

Merry Christmas From Aunt Fannie and Uncle Freddie

Explanation of how our corrupt central banking system works

The New Face of Foreclosure: Strategic Default

A Thanksgiving message to our readers

Time to get your snorkle! 50% with mortgages are under water...

If they keep predicting a market bottom…eventually they’ll all be right!

Why does a British Bank do a better job than the American Banks? (Is HSBC British?)

Have a loan with BofA? NOW IS THE TIME TO DO A SHORT SALE!

Foreclosure filings down 70% year over year…but all is not as it seems!

Strategic default OK for Mortgage Bankers Association…but not for you?

Ocwen rolls out a new loan modification for underwater borrowers

10 million more foreclosures in the pipeline

Foreclosures ramp up: County's 13% jump the trickle before the dam breaks, experts warn

No deficiency...no problem?

Is Florida the Next Non-Judicial Foreclosure State

This article comes courtesy of Chip Parker, A Jacksonville Bankruptcy Attorney. About Chip Parker, Jacksonville Bankruptcy Attorney

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Dylan Ratigan says what needs to be said

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Strategic Default...true or false

The ultimate inside job!

Florida...Of the banks, By the banks and For the Banks

July 4th, 2011

Mortgages that are delinquent 90 or more days outnumber current bank owned foreclosure sales by a ratio of 50 to 1

Will I be able to find a rental after a short sale or foreclosure?

Happy Fathers Day

Selling your home at a loss...Short sale, deed in lieu, assumption.

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Bankruptcy Basics from the US Courts site

Short Sale Opportunities Lost - The Procrastinating Client

Short Sales on investment property

Memorial Day 2011

Courtesy of the blog: Dr. Housing Bubble

Happy Mothers Day

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Is anyone surprised?

Foreclosure mediation program produces dismal results statewide

Do you have a Freddie or a Fannie?

Florida 'rocket docket' court told to respond to ACLU claims « HousingWire

Why lenders have a dis-incentive to modify loans...

Think you know who owns your mortgage? Watch this 60 minutes clip...

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Ninja tactic to short sell your home!

90 Day Guaranteed Sale Program? There’s NO free lunch!

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Early release information on buying a home after a short sale or foreclosure

Shadow inventory threatens housing recovery

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Is your home worth half of what you owe?

A Common Loan Modification Mistake and How to Avoid It

FTC Proposes Rule That Would Bar Mortgage Relief Companies From Charging Up-Front Fees

Palm Beach County Bar Association - Residential Mortgage Foreclosure Mediation Program

StreetInsider.com - Schiff: Look Out Below! Home Prices to Fall Additional 20%

Military Service Members to Receive Foreclosure Protection Through 2011

Attn: Bankers. Stop harassing Americans for money they don't have

Homeless for The Holidays Rally Protesting Foreclosure Fraud, West Palm Beach Courthouse – Fighting Foreclosure Fraud by Sharing the Knowledge

FOR IMMEDIATE RELEASE:

Red = Off Limits