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.

The Invisible Recession

The Invisible Recession

“An in depth look into what really happened after the economic collapse”

Joshua Anderson. Lexington Realty Correspondent.

We have all seen the apparent signs of the big recession. First there was the mortgage crisis, the failed banks, the Wall Street scandals and of course the unemployment rate. All of this began when the housing market began to collapse and continued on a downward spiral. The more homes that were foreclosed, the less equity became available. Small businesses began to take a dive and within a matter of months the entire financial infrastructure of the United States was faltering at a record rate. As the smoke began to clear, massive layoffs ensued and corporate giants began to buckle.

One of the highlights in this crisis was the big Wall Street bailout. Stronger banks acquired the weaker banks and we all believed that we, the American people, were somehow going to benefit from this. The outcome, we didn’t, not at all in fact. The only noticeable signs we saw of this bailout was that Wamu’s became Chase and Merrill Lynch became Bank of America. Aside form the obvious acquisitions in the news; we were left waiting for a savior. Homeowners who were delinquent were expecting modifications that never came to fruition, and the unemployed waiting to be hired again. In the midst of this fiasco, several large banks were compensating there executives with skyrocketing incomes & bonuses.

While the rest of the economy was struggling to keep up, Bank of America CEO Thomas Montag received a total compensation of $29,930.431. This was considered only slightly larger that that of Wells Fargo CEO John Stumpf who made just over $21,000,000.  These numbers are astronomical and completely unfair to the American people who are barely able to stay in their homes. The most terrifying factor is that for those who are facing foreclosure thought they had a fighting chance. However, the Obama administration made it clear that stepping up foreclosures is the only way to stabilize the doomed housing market.

At this point in time, there are not many options available to those who are struggling. There is however some long term tips to keep in mind. Continuing education may be the best way to secure a great career and of course smart savings and investments. There may be a recession but as you can see there is a dramatic difference between those who are feeling the effects, and those who aren’t.

Foreclosures Crippling the Economic Recovery

Home prices & sales are up but foreclosures are still crippling the economic recovery.

By Joshua C Anderson, Lexington Realty correspondent. October 26, 2010

Los Angeles-It’s been more than a few weeks since the major lenders have enacted the foreclosure moratorium. “We are looking intensively at the firms’ policies, procedures, and internal controls related to foreclosures and seeking to determine whether systematic weaknesses are leading to improper foreclosures,” said Fed Chairman Ben S. Bernanke. Many homeowners are still clinging on to the idea that they will not be foreclosed as a result of this investigation. The reality of the situation is that only ten percent of at risk homeowners will get out the situation there in.

Several key factors that are adding to the demise of the housing market include the fact that the housing recession is nowhere near over. Most of the nation’s communities have not yet bottomed out and optimistic speculation is merely opinion driven. Once the market does officially bottom out, prices will not rebound automatically. It will take quite some time for the rest of the economy to get up to speed, and even then it will be a long recovery. Another common misconception is that the worst is in the past. Rick Sharga from Realty Trac, an online foreclosure company, says he does not envision foreclosure activity stabilizing until late 2011. There are still those who will continue to believe that there loans will be modified, even though several reports from the top news and government agencies confirmed that it was a huge failure.  One of the realistic solutions in this market is to mitigate as much as loss as possible. Many of the homeowners who are facing foreclosure do have an opportunity to salvage what’s left of there credit and financial future by attempting a short sale.

Knowing that are very few positive solutions to this crises, it would behoove homeowners to seek out reputable companies, attorneys and accountants. By doing adequate research, the average homeowner can avoid fraud and even foreclosure. According to the California department of real estate, companies that are conducting modifications, loans, short sale and forensic loan audits, arte required to be registered and certified with the department. It is up to the homeowner to seek out this information and make the right decision based on there situation.

Bank of America Resumes Foreclosures

Bank of America Resumes Foreclosures

On Monday, Bank of America stated that, after having reviewed 102,000 foreclosures in 23 states where courts must sign off on proceedings, they are now resuming the process on said cases.

B of A stated that the first of the new affidavits are scheduled to be submitted by October 25, 2010, and will continue reviewing in 27 other states soon after. According to a B of A spokeswoman, no errors were found during their review, and less than 30,000 foreclosure sales across all 50 states will be delayed as result of the investigation. The announcement came one day before the banks third quarter earnings report, the news sending B of A’s shares up 36 cents to $12.34 or 3.01%. B of A stated that the review process, “has been an important step to give customers confidence they are being treated fairly.”State Attorneys General have stepped up pressure on banks recently after it was revealed that some bank employees had signed foreclosure affidavits without verifying that the documents were accurate, also known as “Robo-signing”.

October 1^st was the initial launch of review for B of A, and October 18^th is said to be the day the bank will expand its document probe to all 50 states. The bank says that their initial assessments in the remaining 27 states show that the basis for their foreclosure decisions were indeed accurate.

So far at least five other major mortgage servicers have announced their own document review process. 1.8 million Loans are in foreclosure in the 23 judicial states, while 1.3 million are pending in other parts of the country, according to a Morgan Stanley analyst report.

Lender

A lender is a private or public entity which loans money to borrowers.

Deficiency Judgement

A deficiency judgment is a judgment is when a lien is held against a borrowers.  This happens when the foreclosure sale does not produce enough money for the mortgage to be paid in full.  Generally, the lender may come after you for this deficiency depending on whether or not this is a non-recourse loan.

Loan Modification

WHY USE HOUSING ASSIST FOR MY LOAN MODIFICATION???

Loan Modification is a process whereby a homeowner’s mortgage is modified and both lender and homeowner are bound by the new terms. The most common modifications are lowering the interest rate, reducing the principal balance, ‘fixing’ adjustable interest rates, increasing the loan term, forgiveness of payment defaults & fees, or any combination of these.

• HousingAssist.com will assess  your ability to pay your mortgage through the analysis of wage statements, investment accounts, bank accounts and tax returns, among other data.
• Then we will make a detailed proposal to your lending institutions for restructuring of mortgage terms in a fashion that will enhance the likelihood of repayment.
• HousingAssist.com will negotiate on your behalf.
• We have built strong relationships with all lenders.
• We are also hired by these lenders to help salvage troubled loans.
• Mortgage Companies have an interest in offering concessions to troubled borrowers because of the extremely high cost of foreclosures.
• Lenders do not want to take possession of illiquid real estate, especially in falling markets.

The loan modification plan focuses on people who are behind in their payments or are at risk of default.
Federal officials clarified the definition of “at risk” as those: suffering serious hardships, declines in income or increase in expenses; facing an interest rate hike; having high mortgage debt compared to income; owing more than their house is worth, or demonstrating other reasons for being close to default.
To participate in the loan modification plan, borrowers must:

• have obtained their mortgage before Jan. 1, 2009;
• have a primary mortgage of less than $729,500;
• live in the property;
• fully document their income by providing tax returns and pay stubs;
• sign a statement of financial hardship;
• go for counseling if their total household debt – including auto loans, credit cards and alimony – totals more than 55% of their income.

The modification program will be in effect until the end of 2012, but loans can only be adjusted once.

Call HousingAssist.com Today @ 888-877-0078 for a FREE analysis of your situation.

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