Real Estate

Home Loan Modifications Negotiated by Licensed Attorneys. Real Estate & Mortgage Laws and Guidelines are Complex. Beware of the Banks Loss Mitigation Department. Go To http://RealEstateMarketingThisWeek.com

Part 4 (Excerpt)

The pitfalls for trusting your bank one more time; Beware The Foreclosure Sharks

This whole loan modification thing reminds me a lot of the old Peanuts comics where every fall Lucy would get out with the football and she would set it down on the ground, and she would coerce Charlie Brown into coming along and kicking the football. Well of course as we all know Charlie never got to kick the ball, Lucy always pulled it out from underneath him and I kind of look at the mortgage industry, the servicing end of it in particular that way.

You have to think about it, in many cases the loan that you were put into was not a good loan in the first place. The person who gave you that loan knew it was not a good loan, the Wall Street banks that came up with these crazy ideas should have known better. Now admittedly they didnt otherwise they would not be out of business today, but they should have known that these were not good products.

Yet when you are faced with an issue regarding your house so many people go back to the bank, like Charlie Brown going back to Lucy and believing that THIS time Lucy is not going to pull the ball away. Well what is going to keep the bank from not pulling the ball away from you this time? Absolutely nothing.

I love that analogy; everyone remembers the Charlie Brown show and the comic books like you said. Another thing I want to point out too, going back just a little bit, you mentioned the lenders who put these home owners into these loans knew that they were not good loans. My thoughts after some of the mods that Ive seen, that you and I have seen doing the forensic audits, the home owner could have qualified for an FHA loan in those times, but it was so much easier for banks to put them into these sub prime loans because the documentation was easier, and it was just easier.

It is not just that they are easier; I know that your firm, Velocity Financial is FHA approved but what percentage of lenders today when, we probably have maybe 30% as many lenders as we had two years ago, what percentage today is FHA approved?

In the state of Arizona, of all the lending institution, less than 15% of all mortgage firm, banks, credit unions, less than 15% are licensed by the federal Housing Administration. Velocity Financial is proud to be one of those firms.

What I saw back in the peak of the market is of course everybody thought that real estate was going to go up for ever. Every body wanted to jump on board and buy 3,4,5,6 properties and I always tell the story that I knew we were in trouble, I knew we were hitting the top of the market long before I developed any of the models for Real Estates Future when I walked into our bank one day and I saw that they had a loan that was 100% financing for someone to buy an investment property and they didnt have to prove their income and they only needed a 620 FICO score.

Which considering everything now, I mean, to get a Fannie Mae loan today what kind of a FICO score do you need? If youre an investor? If youre an investor you need 720 and probably 20% down, at least 20% down and certainly it is not stated income anymore. No that doesnt exist, and significant cash reserves, the whole nine yards.

So these banks knew the kind of garbage that they were giving to people and yet we are supposed to trust them to get us good loan modifications. I think that in one of the later segments we are going to talk about the newest guidelines that just came out from Fannie Mae and Freddie Mac regarding their new fancy-schmancy loan mod program and to be honest with you I dont think it really does much for people at all. We will talk about that in the next segment and to the people who are in the mortgage or real estate industry or who have been in the real estate or mortgage industry it is going to sound a little bit like a comic bit because this might as well be bath tissue, I dont even know why they came out with it.

We are going to talk about that along with a few other things, so real quick I know we havent had too much of a chance to talk about The Foreclosure Sharks, Dan but we will touch on that a little bit later. How do people get a copy of this white paper, The Foreclosure Sharks these are things that people need to be looking out for?

Yes, for The Foreclosure Sharks you can go to my website, http://mortgageanswerman.com. There will be a link there you just click on it and pick yourself up a copy and it will help if you are in a foreclosure situation if people come knocking on your door it will help you to at least know what to look out for. So mortgageanswerman.com for The Foreclosure Sharks…

Duration : 0:6:54

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On August 7th, the report on the July’s unemployment rate dropped for the first time in 15 months…news mention it is a sign of recovery. What do you think?

Duration : 0:4:0

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Homeowners First!
(888) 803-0505 / shortsalecrystal@gmail.com

Trilogy Property Solutions is a company of three women who help homeowners and property owners solve a variety of different real estate and financial situations. Sometimes the homeowner has to move when theyre relocated to another state, sometimes they just want to live somewhere else and need to sell their properties quickly, and sometimes financial hardship befalls them and they need to know what their options are.

We work together to find great solutions for any kind of situation that helps the homeowner, the buyer, and the bank, even the realtors win with our team guiding the way to the light at the end of the tunnel. No matter what the economy is doing, we all deserve to find our way to peace and a fresh start with our future.

Credit is Gold! Protect Your Credit with a Short Sale instead of a foreclosure.

http://trilogyproperty.wordpress.com/trilogy-property-solutions/

(888) 803-0505

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Duration : 0:0:43

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Large & Loving it! There’s room for everyone in this almost-new 5-bedroom/3.5-bath home on.34 acres in Northwest Las Vegas. Features include a captivating dining room, impressive family room, magnificent living room with gas fireplace for ambiance, master suite with walk-in closet, separate shower, dual sinks, his-and-her closets, first-floor laundry, first-rate kitchen with work island, new microwave, new garbage disposal, gas range, granite countertops, new sink, double ovens, Italian tile floors, custom cabinets, dishwasher, new paint, new carpet, balcony, a fully fenced back yard, and 3-car garage. Call Toll Free: 888-814-6842 or Log on to www.theballengroup.com

Duration : 0:3:21

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CALIFORNIA FORECLOSURE REAL ESTATE MARKET CONDITIONS

First thing first – we need to get ride of the HVCC. If you’re in the real estate game you know – this is a problem. Do something about it and sign the petition – Help get rid of HVCC at: http://www.HVCCPetition.com .

A quick video on what’s been going on with the market. I’m a firm believer on looking at numbers and ALOT of numbers. If you can read the charts – you can block out the noise from the media and make an educated guesstimate on which way the market may go.

With the backlash of Senate Bill 1137 we saw another record fillings of NOD’s in California. In my previous video (http://www.youtube.com/watch?v=2ZP8Vuf2wUk) I made in Jan. I spoke about what may happen. I stated we may see a huge drop in price in May, June, July… or something to that tune.

Well… we just saw another moratorium pass – I am behind the 8 ball on this… I just finished the first 3 pages only… you can read the actual draft here…

http://www.corp.ca.gov/OLP/pdf/rm/ForeclosurePreventionDraftRegs.pdf

With record NOD fillings and high unemployment rate – can the market soak up all of the inventory that is about to hit the market? Only time will tell…

One last thing…

A pending Senate Bill 94 will kill the loan modification companies… I’ll post a video on my take later on this week.

Jeff Coga
The Short Sale Samurai

Duration : 0:10:42

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Home Loan Modifications Negotiated by Licensed Attorneys. Real Estate & Mortgage Laws and Guidelines are Complex. Beware of the Banks Loss Mitigation Department. Go To http://RealEstateMarketingThisWeek.com

Part 7 (Excerpt)

Attorney negotiated loan modification process Going thru the Legal Door

We have Dan Havey with us talking about loan modifications. This segment we want to talk about the specifics of the actual mechanics of, how does it actually work for the homeowner? Let me just start it off and if you would then explain the back end of how it works. Our job is to determine where you’re at now, be very specific about where you’re at with your mortgage now, what the rate is, what it’s done, those specifics. How much you make? We have to help the lender with one thing which is to establish a hardship which is crucial to this. You can’t be making half $1 million a year paying $5000 a month in a mortgage, they are not just going to lower your interest rate because you want it. There actually has to be some sort of change, financial change, hardship.

We determined that and then there is a significant amount of paperwork involved, Velocity Financial takes care of that for you. We fill out the paperwork along with your help, review all of the documentation, we then recommend be right loan modification, whether it be an interest rate reduction, or extending the term of your loan, waiving some of the balance that you owe which is very very rare. To make sure that once we’re done with this whole process you can sustain and live in that house and be happy forever.

So the process itself really is not that much different than what people went through when they got their loan in the first place. That is correct and it’s kind of funny, this has to be exactly the reverse. There is paperwork that we need to collect on your mortgages, we check the value of the property to see where you’re at and in most cases youre underwater with the value. We dont do an appraisal though, there is no credit analysis, we do review your finances, and these sorts of things but essentially it’s just like doing a loan. What we’re trying to determine is exactly what is sustainable for you.

So what we do at the modification hotline at Velocity Financial is to put together the entire package, just like we do for a loan package because we basically send this to a underwriter, theyre not known as an underwriter they’re known as a loan modification coordinator but at modification hotline we are the first set of eyes. We work with you directly, getting all the paperwork in, getting it put together because we know exactly what has to be in that file, how it has to be stacked, how it has to be presented, before it goes to the loan modification coordinator who works for the attorney.

Then once it is at the attorneys office with their modification coordinator, they take a look at it, they make sure that everything is in there, they make sure that it is a doable modification. This all happens before it is ever presented to an attorney.

There are a whole lot of steps and there is a lot of paperwork. The process like you said is very similar to a loan with the exception that there are no costs of the title company and all that other stuff. Those dont exist, we dont charge an upfront fee, and we do collect a retainer for the attorney. At some point during our process we make our recommendations and we turn it in. Then the attorney does their due diligence and thats where I really want you to explain what happens, what are these attorneys looking for?

Well this is where it completely goes off track, versus what a homeowner would do if they were doing their own modification, because they would do everything we just talked about, they would fill out the paperwork, get together tax returns, pay stubs, whatever the lender wanted and they would present all of it to the lender. Now they probably wouldn’t know exactly how to stack some of the paperwork, and how to calculate some of the things that we know how to calculate, but they would put all that they work together.

Where the difference comes in is once it gets to the attorney because the attorney ultimately wants to get you a loan modification but they can’t just call up the bank and say hey I want loan modification, because he is going to get the same result you did. So what he has to do is he has to go through the file, and he has to look for things like, I am going to use a bunch of acronyms here, he’s looking for things like TILA, RESPA, HOEPA, HUD violations, all these different guidelines that the lender was required to meet while giving you the loan.

Duration : 0:6:47

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First Time Home Buyers use FHA Mortgage and Seller Paid Closing Costs to Buy Real Estate Now. Best Market Conditions for Foreclosures and Short Sales in Decades. Go To http://RealEstateMarketingThisWeek.com

Part 1 (Excerpt)

Seller paid closing costs the best deal going

Today were going to be talking about mortgage strategies, buying real estate, all the different things that you need to know from here on out through 2009, lots and lots of opportunities. We brought back once again one of the best financial planners in the entire country Mr. Brett Fallon.

We also have in the studio today a very good friend of mine Mr. Dan Havey. Dan has been in the real estate and mortgage industry for over 20 years, in fact he got me into the industry, he was instrumental, in fact the major hand behind putting together of the loan modification hotline.

Velocity Financial is a financial services firm, were primarily focused on doing mortgages for residential purchasing and refinances. One of the things that we have seen is that the purchasing market has picked up quite a bit and looks in my eyes like we very well may have hit the bottom on prices.

You can buy a 3000 square foot house for $150,000 these days, and one thing that we’ve recently found is most of the sellers are willing to pay closing costs on behalf of the buyer. Its a known fact that it’s a cold sellers market and sellers are happy to have an offer, whether it be a low offer or not.

Now I have a couple examples I want to share, it’s important to point out that I am not a realtor, I dont want to be a realtor, those people that take the time to get a license to be realtors they know what they’re doing and they do it very well, however you being the person that is going to buy a home, you need to protect every penny that you can. The example I have written down, and Brett feel free to chime in at any time if I should happen to miss something here.

I’ve put together a scenario of purchasing a $300,000 house, now if you buy a $300,000 house and you have to put 3% down as in my example that works out to be about $9000. Let’s just say that the closing costs associated with purchasing that house plus the prepaid interest, setting up an escrow account, paying a year’s worth of homeowners insurance, there is also property taxes that must be paid, home owners dues, all these different things, those can add up. They don’t need to be 3% they can be less, they can be more. This example is just making it simple so that you can understand it.

If you buy a house for $300,000 you put 3% down and 3% for closing costs, your out-of-pocket for this example is going to be about $17,500. Now if you were going to buy that home and have all of that prepaid escrow and closing costs deferred to the seller and actually paid $309,000 so that you actually roll the closing costs into the cost of the home, and only came out-of-pocket 3% you would be out-of-pocket about $8900. So the savings there is $9000. Your mortgage payment will go up, however with a payback of about 160 months. So in other words if you take the money out of your account today youre going to lose that and have a lower payment…

Duration : 0:6:0

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Homeowners First!
(888) 803-0505 / shortsalecrystal@gmail.com

Trilogy Property Solutions is a team of three women who help homeowners and property owners solve a variety of different real estate and financial situations. Sometimes the homeowner has to move when theyre relocated to another state, sometimes they just want to live somewhere else and need to sell their properties quickly, and sometimes financial hardship befalls them and they need to know what their options are.

We work together to find great solutions for any kind of situation that helps the homeowner, the buyer, and the bank, even the realtors win with our team guiding the way to the light at the end of the tunnel. No matter what the economy is doing, we all deserve to find our way to peace and a fresh start with our future.

Credit is Gold! Protect Your Credit with a Short Sale instead of a foreclosure.

http://trilogyproperty.wordpress.com/trilogy-property-solutions/

Duration : 0:1:23

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Amidst the Real Estate & Mortgage Meltdown; Foreclosure Fraud & Scams; Real Estates Future is Great. First Time Home Buyers, FHA Loans & Seller Paid Closing Costs. Go To http://RealEstateMarketingThisWeek.com

Part 6 (Excerpt)

World wide recession caused by the mortgage melt-down. Is inflation far behind?

What their ratings were based on was simply that nobody thought real estate would go down again. They were just going to keep going up forever, doesn’t really matter if you call it AAA or BBB. Isnt going to matter if the note never gets called.

We certainly saw that for years in the mortgage industry. We would refinances somebody and a couple of years later they would call us up again and say hey my house went up $100,000 in value and I bought a car and a boat and my kids need to go to school and give me another hundred grand out of my property, and it just kept going up forever and ever and ever and as long as that was happening everything was just fine. But then as we know everything just stopped.

There’s only so much leverage that could exist out there and that is why the stop started if you will. Because as that leverage continued to balloon; how much more leverage can a Wall Street firm or a bank take on to buy up more mortgage backed securities? Oh I know well carve out these tranches and well sell them off overseas. So that is where it ballooned, how wide reaching and impactful has it been?

Well we see it now it’s a global recession. It’s not a US recession for that reason. And that is starting to clean itself up, not only by the Fed aggressively here at home, by working with other developed nations around the world with their equivalents of the Fed in those countries they are doing the same thing. They are acting aggressively and that’s great for the short-term but that is like putting a band-aid on a carotid artery that has been severed, it doesn’t work. That is okay for today and tomorrow, long term there are bigger issues, bigger issues translate into inflation. Where I am going with this is the fact that right now with money being cheaper than it has been at any other time in the history of the United States.

That’s your motivation, if you’re looking for a loan, if you are looking to refinance a loan, if youre looking for a loan modification, whatever your circumstances are, this is your opportunity. I am of the opinion that five years from now we’ll look back on this time period and say, my gosh look at all the mistakes the Fed made.

One of the things I want to go back to is something you said earlier about how all these mortgage derivatives were broken up and put back together. And most of them certainly many of them got bought by hedge funds. A lot of them got bought up by foreign governments and whatever around the world. One of the things about where that’s coming in is it’s causing a massive structural problem, especially in the mortgage industry when it comes to the servicing aspect and a loan modification aspect.

These hedge funds are now coming along, and they are suing the servicers because the servicers are doing what they had a right to do under the contract that they signed with the hedge fund in the first place which was to modify these loans. While the hedge funds are saying if you’re going to modify the loan we want all the money and the servicers or the bank or whatever is saying, no were not going to so now they are getting into a big fight and I have a feeling were going to see a lot of lawsuits, which is only going to hurt the American homeowner, because unfortunately it’s only going to delay a loan modification process.

But it’s also one more reason why you want to have an attorney on your side negotiating with the servicers, negotiating with the bank, maybe even negotiating with the hedge fund for all we know. But negotiating with somebody on your behalf, somebody with the legal power, negotiating for you so if they need to go after the bank for lack of standing, because maybe that’s what it takes to get their attention, go after them and prove they have a lack of standing and say, oh great now that I have your attention let’s do something to help the home owner.

Duration : 0:6:17

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$8000 Tax Credit for First Time Home Buyers with Low Down Payment. Lender Finance Program with Low Payment and Fixed Interest Rate on FHA Mortgage and Government Assistance. Go To http://RealEstateMarketingThisWeek.com

Part 8 (Excerpt)

Analyzing tax returns for self employed and small business owners; Use a Mortgage Planning Expert

Credit scores now are a major factor with interest rates. You see the liars up on the internet with interest rates being at 4.625% and all this kind of hocus pocus, its not true. You are never going to qualify for that rate today. They are going to lie to you, once you sign and see the fine print you are going to realize that it is a ridiculous idea to pay that amount of money in fees.

Credit scores have to be significantly higher than they used to, but again I have to tell you, its my opinions that a 70% no doc loan with someone who has a 720 or higher credit score I believe is a good loan. I personally believe that at some point it will be brought back.

I am not arguing with that, with a good FICO score I can agree with a 20% down for a stated income loan. People are encouraged through our tax system to write off all of their expenses and so often we have small business people who really are making money but because they take advantage of our tax system they are not able to get a loan. They cant qualify based upon their income.

In a lot of cases yes, but once again I definitely want to point his out just because someone is self employed and owns a small business and they do write everything off, that does not mean that they will not qualify. They may have been told now that they have to go stated income because of tax returns, but most people, the small business owner, the consumer doesnt know how to analyze his taxes, whether or not he is going to qualify for financing thats not his area.

Most CPAs dont even know how to analyze taxes to extrapolate enough income back out where we can use it as income, so just because a person is self employed does not mean that they cant qualify for financing and honestly nothing could be further from the truth. Plenty of people self employed, small business owners will qualify using their tax returns.

I think that anyone right now who doesnt own a home should be giving you a call getting pre-qualified. If nothing else give you a call and see what you can do. So you say, I wrote off a bunch of stuff last year and I am not going to be able to buy a house well maybe you can. But get in there, have a professional, have someone who knows what to do, whos been in the business for 15 years, have them take a look at it and decide whether or not you can really get that loan.

One of the things with my mortgage education; I am a certified mortgage planner. I am a certified mortgage analyst and a certified mortgage planning specialist. The significant part of that training and those certificates is in analyzing complex tax returns and we analyze complicated tax returns for professional athletes, for professional musicians, all the time. There is income always, it is just a matter of knowing how to get all of it out there. So I think we have kind of hit that.

So yes if you dont own a home today and you have been told NO, you need to find out if the person who told you no is qualified to tell you no, #1, and #2, less than 15% of the lenders in Arizona are qualified to do FHA loans. Those are the loans we are talking about, $100 down to buy a HUD-home, less than 3.5% down to buy a house with the best interest rates that we have seen in my career, its crazy not to look at your options.

If a lender does tell you no, it would be like going to a doctor and he says you have to have your arm amputated because you have a pimple on it. I think you are going to go get a second opinion, maybe even a third. To make sure you dont have to have it cut off. And that is exactly what we have here, if you go to a lender and he says, Well you are going to have to put down 20% you know he is not an FHA lender. So run out of there and call Michael at Velocity Financial and get yourself pre qualified.

Dan Havey, you have a great website, its called http://discountdreamhome.com and why dont you talk real quick about that. Its real simple, if you are looking to buy a foreclosed home, and as we discussed earlier they are many times the best homes to buy right now, they are vacant, they obviously have a highly motivated seller. You dont have to deal with all the troubles you would have to deal with from a regular or as we refer to them, an organic seller, because a lot of these people are upside down.

Duration : 0:7:49

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