Top Options for Upside-down Mortgage Holders

Top Options for Upside-down Mortgage Holders

Tons of homeowners are underwater on their mortgages and looking for ways to dispose of these properties.  Of course, because the mortgage of these properties exceeds the current property value, these homeowners are in quite a bind.

In these situations, homeowners will likely ‘default’ on the property.  Homeowners will strategically default on their homes when the mortgage exceeds the property value in combination with the neighborhood beginning to decline.  There are a few ways to dispose of your property without making a full payment to the bank.

Homeowners can choose loan modification, and restructure the term’s of the borrower’s loan.  This option however does not make for any principal reductions in payments.  A deed in lieu of foreclosure occurs when the homeowner, with the bank’s consent, deeds a property back to the lender, instead of foreclosing altogether.  Foreclosure is another option.  This of course, occurs when a lender takes the property back from the delinquent homeowner.

The best option, however, might be a short sale.  Short sales occur when a homeowner sells the property for less then when he owes.  Homeowners must get the bank’s consent before the sale, as well as word that they will forgive the deficiency on the sale.  Short sales are a great option because there’s less paperwork, less hassle, and nobody needs to declare bankruptcy or take the time and energy to foreclose.

Underwater Properties Continue to Plunge

Underwater Properties Continue to Plunge

By: Joshua C Anderson
Colwell Banker/Housing Assist Chief Correspondent

Los Angeles- In a recent statement released by Zillow.com, 28.4 percent of single family residences are underwater, in other words they owe more on their home than it is actually worth, and in most cases that means hundreds of thousands of dollars. Large metropolitan cities like Los Angeles, Las Vegas, Atlanta and Chicago, to name a few, have nearly 50 percent of homes underwater, and in some cities, its worse. Owning an underwater mortgage is just the tip of the iceberg, once in that position it’s very likely that a number of other problems will occur that may eventually lead to foreclosure.  These problems can range from loss of income, illness, death and divorce, all of which can certainly cause financial constraints.

The original HAMP or Home Affordable Modification Program was regarded by industry experts as a failure for a number of reasons. One of the most significant aspects of the HAMP failure was that already troubled borrowers were once again set up for failure, once they defaulted on their trial payment; foreclosure proceedings began almost immediately, further deterring their situation. Another key factor was that the guidelines became too stringent for homeowners to qualify for. As a result, more than 80% of those who applied or even qualified had eventually either been denied or foreclosed.

When faced with such a dire situation, most homeowners decided they needed to make a change, for some however that meant walking away. A recent study showed that homeowners who decided to short sale rather than a foreclosure were more likely to be back on track financially within a two year period. The ramifications to their credit and livelihood were greatly reduced when they short sold the property. The only down side to short selling is that the homeowner needs to be certain that the company or realtor representing them has adequate experience. Many fly by night realtors claim to have the credentials to complete a short sale, however after months of unsuccessful negotiations, it becomes increasingly clear that they were in over their heads.

California based Housing Assist of America, www.housingassist.com, has recently teamed up with Real Estate giant Coldwell Banker in an effort to streamline the short sale process for both agents and perspective clients and the results are phenomenal, 92 percent of the clients who apply and stay cooperative throughout the process end up with favorable results. Lenders are now encouraging homeowners who have exhausted all of their option to opt for the short sale.

How To Steer Clear Of Loan Modification and Mortgage Relief Scams

How To Steer Clear Of Loan Modification and Mortgage Relief Scams

Internet scammers have found a way to prey on those upside down on their mortgages.  If you are looking for information on loan modification or mortgage relief, then you certainly don’t need any more financial trouble in the form of an internet scam.  The California Department of Real Estate (DRE) has issued a new consumer alert, in hopes that borrowers will be more careful in their internet searches on the subject.

If you are looking for relief, you should make sure to follow a few simple rules before conducting an internet search.  First and foremost, don’t pay an upfront fee for any relief service.    Be careful of testimonials, and completely disregard anything that guarantees results.  Here’s a tip: Don’t hire any loan modification assistance service at all.  Instead, get it done yourself.  You can get a loan modification all by yourself, and in nor hiring assistance, you won’t only save money, but the trouble of possibly getting scammed as well.

If you want to do some internet research, go ahead and do it.  There is a lot out there that can help you, including good advise that might save you money.  But when it comes to initiatives like mortgage relief and loan modification, that could heavily impact your wallet and your life , take the reigns on your own and save yourself the trouble.



Mortgage Modification Scheme

The Rise & Fall of the Mortgage Modification Scheme

Joshua Anderson, Lexington Realty Chief Correspondent, Los Angeles, Ca

Friday, February 18, 2011

Los Angeles- We have all heard the horror stories, desperate homeowners paying thousands of dollars to so called modification specialist, in hopes to save their homes, only to find out they were victims of fraud. Julio Salazar of Falls Church, Va, knows this all too well. When the economic crisis caused his hair-cutting business to plummet last March, he became desperate and was willing to do anything to save his home. That’s when Miami based “Friendly Financial Services” solicited Salazar for a permanent loan modification. He was immediately coaxed into paying a $2,300 attorney fee in exchange for the modification. He was told that CitiMortgage and One West Bank would be contacted by the firm’s attorney, this never came to fruition.

According to the state laws in Florida, homeowners are never supposed to pay upfront fees for modification and as a result of thousands of complaints, a federal ban on collecting upfront fees went into effect on January 31^st. Frank Dorman, who is a spokesperson for the Federal Trade Commission, said that “loan modification scams have increased with the recession to take advantage of increased foreclosures.”

When a homeowner has exhausted all of their options there is little to do to salvage the situation. One increasingly popular solution is to short sale. www.housingassist.com provides in depth solutions to short sales and has a proven track record of success, and best of all there are no fees involved whatsoever. It is the responsibility of the homeowner to do their due diligence on any company before they hire them. In the case of Salazar, he was lucky to have his foreclosure stopped, but not without yet another financial loss.

The Truth Behind the Real Estate Market Recovery

Joshua Anderson, Lexington Realty Correspondent, Los Angeles

Los Angeles- While over 100,000 delinquent homeowners flocked to the NACA convention over the past week to get their mortgages modified, only about 30 percent of them were successful. The growing number of foreclosures in California is increasing dramatically and there are absolutely no signs of a slowdown.  Disgruntled homeowners left the convention looking as hopeless as they did upon entering. What lenders are not disclosing to the public is that their efforts to foreclose have been stepped up; misleading homeowners who still believe the mortgage modification program will benefit them. One woman left the convention stating that last time they were in town, about 90 days ago, they told her she would qualify the next time around, only to find out she was denied yet again.

Amidst the crisis the number of homeowners who are “underwater” has surged to 27 percent, up from 23 percent before the fourth quarter of 2010.  The situation is dire and experts predict that it will only get worse.  There are still a few homeowners who believe a temporary modification will solve the problem, but as the economy continues to decline, that possibility will soon fade.  The mortgage foreclosure moratorium has spotted several loans with faulty paperwork, but this will not solve any immediate problems and those who are delinquent will remain on the chopping block.  The overall situation could potentially regain itself within the next five years but the countries deficit puts that figure at risk. “Home value trends in the fourth quarter remained grim, but the good news is that these declines, while painful in the short-term, mean we’re getting closer to the bottom,” said Zillow’s chief economist, Dr. Stan Humphries.

Across the nation the foreclosure figures are devastating. In Albuquerque , New Mexico, one in 46 homes are being foreclosed on, which is an increase, in 2010 it was at 60.32%.

Other hard hit cities include Spartanburg, S.C., Myrtle Beach, S.C, and Savannah, Ga. Of course the larger metropolitan cities have been devastated as well with the more affluent communities like Bel Air and Beverly Hills remaining stable.

In a small effort to stabilize the housing market the Obama administration released information regarding the reform of Fannie Mae and Freddie Mac. The exact details have yet to be released but the majority of the information was in regards to the government greatly reducing its role in the mortgage market.  The Republicans have made it clear that they would like to accelerate this plan; however experts have estimated at least five years.  There are reports that Fannie, Freddie and FHA loan limits will reduce from $729,750 down to $625,000. There is nothing solidified as of yet but these may be some of the changes that will take place in the near future.

In lieu of the deplorable mortgage crisis there is one short term solution that will benefit everyone in the long run, short sales.  The process in which a lender accepts less than what’s owed on the mortgage and generally releases the homeowner of liability upon the closing of the short sale. The Home affordable foreclosure alternative or simply HAFA, is the latest in programs that benefit the homeowner with a $3,500 relocation assistance fee. Housing assist of America, a Los Angeles based firm handles these short sales in bulk and says that they have a solid system that works and it procures favorable results for all parties involved. Their site www.housingassist.com provides an in depth look into what the actual approvals look like from various lenders including BofA & Chase.

The problematic mortgage market will continue to falter as the years come, but the bottom may also be getting closer, this will eventually lead to a full recovery. But there is a lot of work that has to be done, and not just by the banks.

1 Million Homes Reposessed

1 Million Homes Reposessed in 2010

The number of foreclosures that we saw in 2010 was astronomical.  There were over 1 million people who lost their home! Realtytrac reported close to 2.9 million foreclosure notices.

Nevada has led the pact with foreclosures for the fourth year in a row.  One in every 11 homes received a foreclosure filing.

Overall, 2010 was a rough one for the mortgage industry. The big news was the robo-signing scandal, which erupted in the fall amid allegations that banks were foreclosing on homes without having read the documentation.

In the first quarter of 2010, eyes were still focused on Obama’s HAMP program, while many analysts were still optimistic about saving their homes.  But as time progressed it was quite obvious that the HAMP program was losing the fight against foreclosures.

Then the next shoe to drop came in June, with a report from Fitch Ratings that showed HAMP modifications re-defaulting at a high clip. The company forecast that three-quarters of all HAMP mods would ultimately fail.

The next few years are looking to be very difficult on the economy and the housing industry.   Some industry analysts, such as Laurie Goodman, head of Amherst Securities mortgage group, say that as many as 11 million mortgage borrowers are in potential danger of default.

However, Rick Sharga, RealtyTrac’s spokesman, predicted 4 million to 5 million and scoffed at quantifying the magnitude of the potential disaster, comparing it to “taking inventory of deck chairs on the Titanic.”

Only time will tell, but if you have any questions regarding your home and the position you are currently in, feel free to call us at 888-877-0078.

Disheartening News For America

Very Disheartening News for America

The more news articles I read regarding the US economy, the more I realize the average American is drowning (and tethered to a sinking house). Lets start with headlines from today like “Obama’s Mortgage Mod Plan is Still Lacking”. This article from CNN Money explains that while $30 Billion was set aside for HAMP to help struggling homeowners stay in their properties, only $4 Billion will end up being used for this purpose. Instead of saving an estimated 3 million to 4 million peoples home, they now project a total of 700,000. Why, you may ask? For the same reason these people are in this position in the first place, the benefit of Corporate America. It’s plain and simple. Wall Street greed caused this mess and its perpetual greed is keeping America here. Instead of writing down loan balances and offering REAL and sustainable plans for people to keep these properties; the executives at the top plan to foreclose on every one of them. And they are laughing all the way to the bank!

Here are a couple other headlines from CNN Money today, “Wealth Gap becomes Chasm at Christmas” and “Wall Street Bonuses May Top Last Year’s as Earnings Soar”. So basically the rich are continuing to get richer as the average Joe is slipping deeper into negative net worth with their underwater properties. The middle class is getting completely wiped out and we will be left with a very small minority of Super Rich and a large majority of Super Poor. The government could stop this but unfortunately is under Wall Street and Corporate America’s thumb.

We at Housing Assist of America have made it our business to help these homeowners that are drowning in negative equity with ridiculous mortgage payments. Our job is to fight the banks on behalf of the homeowner to allow a Short Sale. We negotiate with lenders like Bank of America, Wells Fargo, Chase, and many more to forgive these homeowners for their debts. Our clients are able to walk away and start fresh while planning a road to economic recovery. Housing Assist of America lays out a plan to repair credit and buy a home at a reasonable price. We do not charge for our services and we have a greater than 85% success rate. We are so skilled that hundreds of real estate agents contract us to negotiate on their short sales on their behalf.

Isn’t everybody FED UP with the current situation? Please contact us at Housing Assist of America to find out how we can help you. I look forward to hearing from you.

Foreclosures Continue to Bring Down The Housing Market

Foreclosures continue to bring down the housing market despite a recent decline in underwater mortgages

By Joshua C Anderson, Lexington Realty Correspondent

As the holidays approach, many Americans are considering relocating to take advantage of the low prices available in the market. However, the savings are not a result of an amazing deal, there the aftermath of the worst housing crisis in history. For the miniscule market of qualified buyers, there are some great opportunities, but for the rest of the nation the turmoil continues. Just last week Forbes online magazine released an article of the worst hit cities in the nation, and that list continues to grow.

Cleveland Ohio was the top city to have the sharpest decline in home values, followed closely by Minneapolis and Portland. The nation however has seen somewhat of a decrease in underwater mortgage holders. But the problem of underwater homeowners still has an adverse effect on the market. The underwater homes carry the highest risk of default and foreclosures. The only realistic solution for these homeowners is a short sale. The short sale process has several benefits for the homeowners as well as the lender. The market will continue decline regardless of new buyers as long as there are foreclosures. Many delinquent borrowers do not want to face the fact that they will lose the house to foreclosure if they do not short sale, and there are still many holding on to the idea of the failed modification program.

In addition to the devastating consequences of foreclosure, many homeowners are opting for bankruptcy, deed in lieu and abandonment. All of which will continue to drive down the economy. If all of these delinquent borrowers choose a short sale, they will avoid all of these problems. Housing Assist of America is a southern California based company that has been named number one and is platinum certified through equator. HAA also has an immaculate rating with the better business bureau and doesn’t charge fees to facilitate the transaction. To learn more about them you can visit www.housingassist.com In these uncertain economic times its prudent to make the right decisions for the long run.

A Grim Reality

A Grim Reality

Why this holiday season won’t be so jovial for millions of Americans

Joshua Anderson, Lexington Realty correspondent. Thursday December 2^nd 2010 9:55 PST

This holiday season, retail stores will be packed beyond capacity, just as they are every year. Hot items like the Apple iPad, Xbox gaming system and the latest in children’s toys will fill shopping bags. But not so distant from the dreamlike ambience of the mall there lies a grim reality. Millions of families will not be at the malls and outlets; they will be without heat, electricity, food and of course, without Christmas festivities. One of the main reasons for this is the fact that unemployment benefits will run out for more than two million Americans. The maximum time allowed for unemployment benefits is 99 weeks. In addition to the record unemployment, there is a large surplus of foreclosures. This is the highest ever record of foreclosures in the nations history, probably in the world. When you factor in losing a job and losing a home, the hope for a person can decline very sharply. Many just want to find a way to put all of this behind them, there are a few small options that just might be able to salvage what’s left.

When economic times are at the worst, there are very limited options as to what’s available. When you factor in job loss and foreclosure risk, the main concern should be cutting your losses before it spirals out of control. Bankruptcy obviously has long term ramifications and foreclosure is not much different. A boutique firm in Los Angeles has been advising nearly all of there clients to short sale. In that process the lender agrees to accept less than what’s owed on the loan. Most of the time, the homeowner can walk away with very little damage and is usually eligible to purchase again within 14-18 months. Whichever direction the homeowner decides to go there is still the issue of unemployment that needs to be resolved.

Job seekers need to maximize their resources and find ways to stand out amongst the crowd. Thousand of seasonal retail jobs are available every year and it’s usually on a first come first serve basis. In large metropolitan cites like Los Angeles, Chicago or New York, there are many opportunities, even at a temporary level. An employees performance during the holidays season could dictate weather or not they will be rehired the following year or even be eligible for a full time position. In the end it is up to the job seeker to make a lasting impression that will insure their job security.

Innocent Bystanders

Innocent Bystanders

Monday November 29, 2010 at 12:00 pm PST by Joshua Anderson, Lexington Realty Correspondent

Los Angeles—We have all heard the stories, a once vibrant neighborhood goes to the dumps because every other house on the block is either bank owned or currently in foreclosure. Everyone looks around and points fingers and asks who’s to blame?  Well from the top we of course by default blame Wall Street, the banks and the government. But by taking a more in depth look at the whole scenario, we realize there were a chain of events that eventually lead us to where we are today, and the unfortunate outcome, are those who suffered because of someone else’s mistakes.

Take 60 year old Sherrilynn Palladino, a ten year homeowner in the California community of Grover beach.  A responsible borrower who never missed a payment, Palladino could only stand by and watch as the price of her home plummeted until it was too underwater to do anything about it. This scenario had been played out over a million times in thousands of communities across the nation. It’s almost like a domino effect, one block falls, and sets off a chain reaction. Palladino had dreams of selling her home and cashing out. A home with good equity would have made for a secure retirement, but instead, the values declined. Between all of the underwater mortgages and rising rates, foreclosures were inevitable. In the case of Palladino though, she never missed a payment, even after being laid off from her job as an administrative assistant. Unlike her situation, most families could not afford to salvage the basic necessities just to keep up with the mortgage payment. This is where the real trouble began. Almost everyone who had an adjustable rate mortgage was bound to default at some point or another, and just as it was predicted, they did. On top of the defaulted loan, many homeowners lost there jobs, thus creating an even deeper financial burden.

Now that we are somewhat nearing the tail end of this foreclosure mess, we need to have a better understanding of what got us here in the first place. Prices will still drop for the next couple of years and lenders are stepping up there foreclosure efforts. So before the smoke dissipates there will be even more collateral damage. Sherrilynn Palladino was just one case, but there are thousands more just like her. One of the best things you can do in a situation like this short sale. The process allows you to alleviate the negative debt and does minimal damage to your credit, pending your not severely in default. Upon completing the short sale you may be entitled to up to $3,500 from the Obama driven HAFA program. The benefits are endless; however the most significant is avoiding foreclosure. After just 18 months the homeowner can be eligible to take out a new home loan and take advantage while prices and interest rates are still historically low.

Being a victim of this housing crisis doesn’t mean you need to be a casualty, in many cases it takes risk and a small amount damage to rectify the situation, but in the end it may be worth it.

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