Bailing Out Homeowners?

October 30, 2009 by  
Filed under Bailing Out Homeowners, Blog

Homeowners Bailout

Many “responsible” homeowners are upset at the fact that lenders are bailing our irresponsible homeowners.  This raises the question as to whether or not homeowners who are defaulting on their mortgage payments deserve to be bailed out, or should suffer the consequences of acquiring a loan they could not afford.

The government has decided to move forward with the homeowners bailout because this issue is so severe and widespread.  At this point it is in everybody’s best interest to stop it from growing even more, because it is hurting everyone.  Anytime a home is foreclosed on, it affects the homes around them.  Foreclosures can drop your home value as much as 9%.  Foreclosures are  hurting your local schools, businesses, and the local economy, in effect put your job at risk.

Earlier this year Federal Reserve Chairman Ben Bernanke said we need to compromise this issue of moral hazard for the greater good.  So in reference to the homeowners bailout, the answer is yes, we need to help those homeowners who took on these loans they knew they would not be able to afford in efforts to stabilize the economy.

Foreclosure Plague is Spreading

October 29, 2009 by  
Filed under Blog, Foreclosure Plague is Spreading

Are Foreclosures Spreading?

The answer is yes, we have hit a record high in the third quarter. What does this mean to the common reader? Well let me explain to you, this means that 1 in 136 homes were in foreclosure! The state that has been hit the worst is clearly Nevada having 1 in 23 homes in foreclosure.  In September the number of Notice of Defaults hit 343,638, which was a relief being down 4% from August.  The bad news comes with the 87,821 homes being repossessed by the lenders.  So far to date this year lenders have repossessed roughly 620,000 homes!!

In many low price markets where the values of homes have diminished to a point of almost no value, these lenders are not following up with their foreclosures.  We are seeing more and more of this, since these lenders have a copious inventory of foreclosures.  Many people are stating that they will set a date for the auction, but never file papers.  It is not only the lender that is trying to get the homeowners out of the properties, many times we are seeing the adverse affect where the homeowner wants out immediately.  There is no point for them to live in a property that will take 15 years to gain back any equity.

According to CNN, “A study of the trend by the Chicago Booth School of Business and the Kellogg School of Management determined that when home price declines drop home values 10% below the mortgage balances, people start to give up their homes. When “negative equity” approaches 50%, 17% of households default, even when they can still afford their mortgage payments.”

In addition to all of us understanding the severity of foreclosures, we may not be getting accurate numbers after all.  These numbers are not including the delay of many filing due to these lenders being understaffed.  Many are predicting that banks will take extremely long to take back these properties and put the homes that have been taken back on the market.

I strongly believe that we are only at the beginning of the foreclosure epidemic, and that this will be a bumpy ride for the next 3 years.  So hold on tight, while we pray that the government really knows what they are doing.

Sample Short Sale Hardship Letter

October 28, 2009 by  
Filed under Blog, Sample Short Sale Hardship Letter


November 15, 2009

Jane Doe
444 Elm Drive
Los Angeles, CA 99999

1st Mortgage Lender: Chase
Account #: 555555555

2nd Mortgage Lender: WAMU
Account #: 6666666

Dear Chase and WAMU,

Thank you for your time and consideration regarding my situation. I am applying for short
sale on my current residence for the reasons listed below.

A few years ago I bought my current property when my wife and I were both employed full
time. We had no problems paying our monthly expenses. Unfortunately, one year ago my
wife lost her job, and four months ago my job was cut to part time. We now cannot afford our current mortgage payments and other monthly expenses that we were once able to afford. Currently, we have no real assets or savings as we have used them to keep afloat for the past year hoping our financial situation would change. We now have nothing to fall back on. We are trying to salvage what is left of our credit by trying to avoid foreclosure and
complete a short sale on our home. Thank you very much for your time and consideration in this very stressful time for our family.


Jane Doe

Commercial Real Estate Defaults

October 26, 2009 by  
Filed under Blog, Commercial Real Estate Defaults

A Real Estate Collapse is on its way, and there is nothing we can do about it! The closing of the Corus Bank located in Chicago was a large indicator that we are going to see the next flaw in the banking system, which lies at the heart of commercial real estate loans beginning to default.

With commercial real estate loans beginning to default, many banks will be facing large numbers of debt on their end, forcing them to foreclose. Banks will be reluctant to refinance as property values continue to decline drastically. Most banks don’t want to extend credit terms when they know that these commercial properties will be worth less than what they once valued at 2-3 years ago.

In the next year we will see more and more commercial properties go into default. Make sure you consult with your lender before you go into default.

Ocwen Short Sale Process

October 26, 2009 by  
Filed under Blog, Ocwen Short Sale Process

We had a client of Housing Assist write in their complete thoughts on the short sale process with Ocwen. This letter is courtesy of Jill Haven:

“Hello everyone,

I want to take a moment a couple of minutes of your time to let you know how the short sale process went with Ocwen. I have had no problems with Ocwen through the course of my loan. I was asked to keep a journal of all the updates that I received from HAA on behalf of Ocwen, and I’m glad I did because now I can report to you guys! My family has lived in this home since 2003, and were unable to make payments due to job cuts. We decided to go through with a short sale in order to escape a foreclosure.

Anyways back to the short sale with Ocwen, I was very pleased at how fast they moved the whole process along. I know from friends and other people who have short sold their properties that it is a tedious process and takes forever. I was completely surprised to see how well Ocwen worked with me and how fast I received an approval. Once I got the entire package over to HAA, they reviewed and submitted it to Ocwen, and had an approval after about a month. It really wasn’t that bad at all…So I wish you guys the best of luck working with Housing Assist and getting your short sales completed. I know that they are capable of getting answers fast and making sure the short sale is completed successfully. ”

Select Portfolio Short Sale Process

October 26, 2009 by  
Filed under Blog, Select Portfolio Short Sale Process

Do you have a loan with Select Portfolio?

If so, Housing Assist can help with the short sale process. SPS are great to work with and respond in a timely fashion. The Select Portfolio Short Sale Process can take as little as 3 weeks for a short sale approval. We have built a great relationship with them as we do short sales in high volumes. Work with a team of experts who understands how to conduct short sale properly, and who has already built a relationship with Select Portfolio Servicing.

Life After Foreclosure

October 26, 2009 by  
Filed under Blog, Life After Foreclosure

Is there such thing as life after foreclosure?

Of course there is, in fact many times life is much better for homeowners after foreclosure. Many homeowners primary regrets are signing the mortgage that they clearly could not afford a couple years down the line. Lets face the fact that this economy has driven people down to the ground; this is the worst we have seen the economy since the Great Depression. The income loss that many homeowners are facing, make it impossible to to live in the homes that they once believed they could afford. This is a common case for many homeowners who have faced foreclosure:

Mr. & Mrs. Harris purchased their home in 2005 with a hybrid ARM mortgage. The original payments were $2,100/month, but three years later the loan reset and now they are forced to pay $3,100/month… This is only the first reset, the second one will soar higher! Foreclosure is on its way with such high mortgage payments. the Harris’ have attemtped at a loan modification, but we’re denied due to lack of income. This is when they could have turned to their other options such as a short sale, but they were unaware of the options available to them. These lenders treat their homeowners terribly, giving them the runaround for a solid month. An auction date quickly came, and they were forced to leave the proeprty due to a foreclosure.

This was a devestating reality for them to face, but they were forced to move and rent a property in a location that was cheaper. The good thing is is that they did not need to downgrade too much and were able to rent a home that was equal in size. Moving forward they will be much more careful with the loans they avquire. FOreclosure will remain on their credit for 5-7 years, but a foreclosure is not the end od the world. They are already back on their feet, with new jobs, and a brigther future.

VIDEO–Your Mortgage is a Lease

October 22, 2009 by  
Filed under Blog, VIDEO--Your Mortgage is a Lease

VIDEO–Benefits of Short Sale vs. Loan Modification

VIDEO–Negative Equity = Short Sale

October 22, 2009 by  
Filed under Blog, VIDEO--Negative Equity = Short Sale

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