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Florida Homeowners On Verge of Personal Financial Apocalypse and Don’t Know It; Free Seminar Shows How Short Sale With Deficiency Waiver Ends Foreclosure Nightmare
Posted on February 2nd, 2012 No commentsSarasota & Manatee, FL (PRWEB) November 01, 2011
Nationally recognized real estate expert, John Michailidis, offers free seminar for FL homeowners behind on mortgage payments. The unemployed, underemployed, divorced, and those who’ve experienced recent medical emergencies are being targeted for Foreclosure. Now, Sarasota & Manatee county residents can learn how to beat Foreclosure thru a “Short Sale With Full Deficiency Waiver” even when they owe much more than the property’s worth. Tips on how to virtually guarantee approval even if prior Short Sale attempts have failed will be offered.
Sarasota & Manatee county Florida homeowners behind on their mortgage payments and who are either unemployed, underemployed, divorced, or who have experienced recent medical misfortunes are being targeted.
According to national real estate expert, John Michailidis, the menace is foreclosure, and by some estimates upwards of 40% of Sarasota and Manatee homeowners are vulnerable. A free report outlining the problem can be downloaded at http://NoEquityHomeSaleReport.com.
“Foreclosure destroys families and communities, and has literally displaced millions of American citizens,” said real estate expert John Michailidis, GRI, CRS, JD. “The dirty little secret that bankers and politicians seem to be ignoring is the fact that Foreclosure is virtually 100% avoidable thru the use of a Short Sale With Deficiency Waiver.”
With congressional watchdogs testifying that the record of government loan modification programs, “has been nothing short of abysmal,” many delinquent homeowners are under the false assumption that Foreclosure is unavoidable.
According to Mr. Michailidis, “A foreclosure most definitely is avoidable and I’ve got the track-record to prove it. In virtually every case we’ve taken on, we have been able to secure a Short Sale with Full Deficiency Waiver, which means the homeowner was able to move on with their life, free from mortgage debt, and without the specter of the banks coming after them down the road.”
Mr. Michailidis is presenting a series of free, online, community-outreach public seminars for Sarasota and Manatee County Florida property owners who are behind on their mortgages and worried about foreclosure. “The purpose of these free seminars is to disseminate as widely as possible information that is being suppressed by the banks. Participants will be able to submit questions via email during the event and receive personalized responses,” he said. Scheduling and registration information is available at http://FloridaForeclosureEnders.com.
Mr. Michailidis is a recognized real estate author and speaker, and the broker/owner of SaraMana Properties, where he focuses his business on exclusively helping homeowners to avoid foreclosure through Short Sales. He is also a graduate of the Northwestern University School of Law in Chicago and is a member of the Illinois Bar. A message can be left for Mr. Michailidis at 941-548-7771, or via email at info(a)SaraManaProperties.com.
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YouWalkAway.com Survey Finds Expiring Debt Relief Act Fueling Foreclosure Action
Posted on December 17th, 2011 No comments
YouWalkAway.com Survey Finds Expiring Debt Relief Act Fueling Foreclosure ActionCarsbad, Calif. (PRWEB) November 17, 2011
In a national survey of its current clients actively considering or navigating through the foreclosure process, YouWalkAway.com, a leading foreclosure agency that helps people understand and manage the foreclosure process, revealed that 35 percent of those surveyed indicated that the Mortgage Debt Relief Act expiration date of December 31, 2012 contributed to their decisions to walk away sooner rather than later from their property.
The Mortgage Debt Relief Act relieves former homeowners of their obligation to pay taxes on the difference between their loan amount and the amount their property fetches through short sale or at auction after foreclosure. The foreclosure process takes, on average, one year from start to finish.
“The survey results are not surprise; YouWalkAway.com has seen a number of homeowners reach out to us due to the impending 2012 deadline,” reports Jon Maddux, CEO of YouWalkAway.com. “Many are determining to begin the foreclosure process sooner rather than later in order to ensure their foreclosure is consummate by the end of 2012.”
To parry a big tax played and defend his family through the Debt Relief Act of 2007, YouWalkAway.com client Robert Applebee of Homestead, Fla. began the strategical foreclosure process in June 2010. He has a $ 184,000 mortgage from Bank of America on a home that in July 2011 was evaluated at $ 49,900. Most late, Bank of America declined a $ 55,000 inadequate sale accost on Applebee’s home. If Applebee’s property were to convey $ 75,000 at auction, he would have to modify $ 109,000 to his net income and subsidize income taxes established on this amount if his foreclosure process is not completed by the end of 2012 and the Mortgage Debt Relief Act is not broadened.
The Mortgage Debt Relief Act was created to protect homeowners who are foreclosing on principal residences only and who have never refinanced by taking out a home equity line of credit. The Internal Revenue Service states that 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 bonding restructuring, as well as mortgage debt forgiven in connection with a foreclosure, qualifies for the relief.
“Today, about 80 percent of the people who come to me inquiring about foreclosure tax ramifications qualify for tax relief under the Mortgage Debt Relief Act,” states Cheryl Gerhardt, a CPA who has worked with some YouWalkAway.com clients. “These are usually people who purchased during the height of the market from 2005 to 2007 and never had the opportunity to take out a second, whereas a few years ago clients who were getting foreclosed upon had made purchases in the early 2000’s, took out a home equity line of credit and could not qualify.”
Gerhardt continued, “More 2005 to 2007 buyers are realizing they may be better off walking away from their home, but only once they start to think about this do the start to considering all the factors, including taxes. I believe there are many of these buyers who do not know they need to act soon because of the approaching expiration of the Mortgage Debt Relief Act.”
Additional results of the YouWalkAway.com survey indicate that 78 percent of the respondents were walking away from their primary residence. Of those, at least 76 percent would qualify for relief under the act. When asked whether they knew about the Mortgage Debt Relief Act, most of the respondents said they contacted YouWalkAway.com because they had heard about the act but were seeking additional information.
Maddux adds, “The potential protection afforded by the Mortgage Debt Relief Act is not common knowledge. Potentially millions of people will find themselves stuck with a huge tax bill after foreclosure if the government doesn’t renew the Debt Relief Act at the end of 2012 or if they don’t finalize their foreclosure by that date. The bill may well expire, like when Congress chose not to renew the home buyer’s tax credit.”
A YouWalkAway.com client who wishes to provide only her first name, Gabrielle, is walking away from her Los Angeles home because she is upside down on her mortgage by $ 130,000. “The expiring Debt Relief Act prompted me to act now,” she said. “I’m in an adjustable rate mortgage, so the monthly payment is quite low, and I like living here, but staying is financially risky, especially not knowing where rates will be in five to ten years.”
According to the Lender Processing Services Mortgage Monitor, over four million home loans are 90 days or more delinquent or in foreclosure as of November 1, 2011.
YouWalkAway.com surveyed 2108 individuals and received 518 responses for the above-referenced survey.
About YouWalkAway.com
Located in Northern San Diego, Calif., YouWalkAway.com is a foreclosure agency run by a team of real estate and legal experts with more than 50 years of combined experience. Featured in a wide range of reputable and knock-down media pieces, YouWalkAway.com is acknowledge for being a trustworthy and valid foreclosure resource agency and the nation’s foremost authority on foreclosure laws and consequences. It is the objective of YouWalkAway.com to authorize homeowners who purchased their homed at the peak of the real estate market to take control of their financial future. http://www.youwalkaway.com
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Stop Foreclosure By Refinancing Your Loan: Is It A Good Option?
Posted on August 16th, 2011 No comments
Stop Foreclosure By Refinancing Your Loan: Is It A Good Option?Blaine, WA (PRWEB) April 25, 2007
Today SaveMeFromForeclosure.com, LLC announced that homeowners may be able to stop foreclosure by refinancing their loan but could face a costly solution. Refinancing a home loan can help homeowners facing foreclosure avoid a pending foreclosure, stay in their home and possibly create a better financial situation.
However, if a homeowner considers refinancing his or her loan to avoid foreclosure there are a few things to keep in mind. Refinancing can be a long and expensive process especially if the homeowner is already one or two payments behind on his or her mortgage.
Some things to consider are costs involved with a refinance. First, when a homeowner applies to refinance his or her loan there must be an appraisal done on the home. If the home appraisal does not fall within the LTV (loan to value) guidelines that the lender has set then they will not underwrite the homeowner’s loan. So the homeowner must be aware that he or she may pay for an appraisal ($ 350-500) and not be able to use it. Often times if the homeowner is rejected by one lender and tries to refinance with another lender, they most likely will want their own appraisal done. Appraisal fees can begin to add up very quickly.
Another cost that homeowners should consider when refinancing is that many times in a foreclosure refinance, the homeowner will be required to pay points. One point is equal to one percent of the loan amount. So if the homeowner borrows $ 250,000, and the broker is charging 2 points; that is an extra $ 5,000 in broker fees.
Finally, there are possible closing costs: settlement fees lender fees, underwriting fees, transfer taxes, recordation charges, title insurance and credit report, just to name a few.
It is also important to understand that after a refinance, the loan balance is going to increase, because the homeowner is borrowing enough to pay off the loan, and all of the late fees, and attorneys’ fee that come along with a foreclosure, in addition to the aforementioned possible costs. Add to the fact that more than likely the homeowner’s credit score is much worse now (due to late payments) than when his or her loan originated. Therefore, in the new refinanced loan the homeowner is going to be paying an increased interest rate on a larger loan amount.
“There are some instances where homeowners refinance into a new, bigger payment, and they can handle it. Most of those instances are usually based on short-term job loss, or perhaps a medical emergency that had to be paid for. Unfortunately, we meet with many clients who want to refinance, but are not realistic about the new payment that they will be saddled with. This is always an important consideration when refinancing,” say Justin Lee, CEO of SaveMeFromForeclosure.com, LLC and owner of http://www.savemefromforeclosure.com/.
The most important enduring backpedalling a homeowner should take in reckon refinancing to stop foreclosure, is to make sure he or she carefully reads all the paperwork before the closing! Don’t get to the closing table and find out there is a pre-payment penalty and additional closing costs that weren’t anticipated.
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Tips For Homeowners Investigating Mortgage Loan Modification Assistance
Posted on March 18th, 2011 No comments
Lindsy B. Emery asked:
Homeowners are facing very difficult circumstances in these tough economic times. Property values have dropped and people are experiencing financial setbacks in their own lives. What has not changed is their monthly mortgage payments. Naturally homeowners are finding it hard to keep making these payments. Fortunately mortgage loan modifications can help.
Losing your home is not an inevitable conclusion if you are having trouble making your monthly mortgage payment. Consult with a HUD financial counselor that you can find through a non-profit group. They will give you advice about what your options are. You need to know what your options are for refinancing even if you think you are not qualified. The requirements for refinancing have been lowered thanks to programs like FHA HOPE for Homeowners or President Obama’s Making Home Affordable Plan.
If you cannot refinance your loan, there are other things you can do if your mortgage loan is not in line with your finances anymore. The Making Home Affordable plan has designated $75 billion in incentives to help up to 5 million people get a loan modification so their will not lose their homes to foreclosure. Getting your lender to modify your loan so your monthly payment is in line with your income is an affordable and realistic option.
If you are interested in loan modifications you need to consult a financial consultant who will help you get the modification you need. HUD will direct you to a financial consultant who will not charge you for his/her services. They are in great demand today so it might be difficult to get a meeting with one right now. There are also for for-profit companies that will assist you as well. Both those you pay and those who work for free have their own good and bad points.
If you decide to work with a professional company to secure your modification, read the contract carefully and insist that all fees and charges be fully explained. Ask about a 100% money back guarantee if the modification application is rejected. Check with the Better Business Bureau before you agree to work with any company to make sure they are reputable and legitimate.
To prevent becoming a victim of a fraudulent loan modification company, don’t work with a company that does not guarantee acceptance or you get all your money back, a company that does not have a real office (as opposed to an online site alone) or charges fees upfront without a complete explanation. A company that contacts you through email or one that comes knocking at your door is one that needs to be investigated.
There are many options to foreclosure for you today. Get mortgage loan modification advice from a financial counselor and keep your home.
Brian -
Can’t Get an ARM Mortgage Refinance – ARM Home Loan Advice For Struggling Borrowers
Posted on November 23rd, 2010 No comments
Darin Sewell asked:
If you are currently holding an adjustable rate mortgage and you have at least 5% equity in your home and good credit you probably have no worries at all when it comes to the current housing market problems.
But if you need a ARM mortgage refinance and your credit scores or home values have plummeted you may find yourself in a very rough situation.
When you are in a tight situation like this having the right information about your ARM home loan and how to confront the situation will be key to keeping your home out of foreclosure.
Why You Cannot Get a ARM Mortgage Refinance
The biggest factor that is disqualifying borrowers from refinancing their adjustable mortgages is the fact that home values across the nation have dropped.
This has left many borrowers owing more then the house is worth and banks will not lend on a property like this, no matter how good a credit score the borrower has.
Saving Your Home When You Cannot Refinance Your ARM
If you have tried to get an ARM mortgage refinance only to be turned down you are going to have to look for help in other places.
The easiest place to find help is with you current mortgage lender. If you call them as soon as you know you are going to have a increasing ARM home loan and not be able to refinance it they may offer to help you stabilize your payments.
What Will The Lender Do For Me
To help you your lender may offer you a loan modification. A loan modification involves changing the terms of your original mortgage to either a fixed rate loan or giving you an extended fixed rate period for your ARM home loan. This is by far the best option you will have available.
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Mortgage Loan Modification Terms and Procedures in Easy to Follow Steps
Posted on October 5th, 2010 No comments
Susan V. Gregory asked:
You can increase your chance of getting a mortgage loan modification from your lender. The key is to have a good general understanding of just what the procedure is and how to apply correctly. Most homeowners have never even spoken to their lender let alone had to try to negotiate new loan terms with them. No wonder most borrowers are hesitant to contact their bank. But once you understand the process and know what your bank needs from you, the whole procedure will seem a lot less intimidating.
Here is some basic information about what is involved and how to get started:
Mortgage Loan Modification Steps:
Contact your lender and ask for consideration for HAMP-Home Affordable Modification Plan Prepare your application correctly- including your financial statement and hardship letter Send a complete package back to your lender-including proof of your income
Mortgage Loan Modification Procedure:
Your request for a loan modification must be acknowledged within 10 days by your lender You will be sent an application package in the mail Upon receipt of your package, it will be reviewed for accuracy and completeness A Notice of Missing Documents will be sent to you if you left anything out Upon receipt of a COMPLETE application, you will be notified within 30 days if you qualify or not
Mortgage Loan Modification Terms:
If you qualify, your payment will be reduced to an affordable amount by lowering your interest rate, increasing your loan term or deferring or forgiving principal You will be put on a 3 month trial modification, upon completion of timely payments, your modification will become permanent automatically If you miss payments or do not qualify, you will be excluded from the loan workout program and offered another option like HAFA-Home Affordable Foreclosure Alternative. This is a streamlined short sale process.
As you can see, the key to getting your loan modified quickly is to prepare your application correctly the first time. Most important is to be certain that your financial statement fits the approval formula-this means your income, debts, debt ratio, etc all are within the guidelines for acceptance. If you are not certain how to prepare your financial statement and what adjustments to make to your budget, then you may want to use a software program designed just to help homeowners qualify. You can avoid mistakes and save a lot of time.
You get one chance to get a loan modification so be certain you take the time to submit your application correctly. When done right, you could get your answer in just 30 days and be one the road to secure home ownership once again.
Minnie -
Mortgage Refinancing: Managing Your Mortgage During Times of Financial Hardship
Posted on August 25th, 2010 No comments
Louie Latour asked:
Many homeowners fall on hard times with their finances at one time or another. Loss of a job, divorce, illness, or the death of a family member can quickly put your budget under water. Fortunately, you have a number of options to reduce or even defer your mortgage payments. Here are several suggestions that could help manage an unwieldy mortgage payment until you are back on your feet.
I. Contact Your Mortgage Lender
Believe it or not, contacting the mortgage lender before you are behind and explaining the situation could be the answer to your financial problems. Mortgage lenders will generally work with you as long as you contact them before you’re in serious trouble. The mortgage lender may work out reduced or even deferred payments for several months simply by asking. It is usually in the best interest of the mortgage lender to keep your home out of foreclosure. Remember, you will find the lender much more accommodating if you ask before you’ve dug yourself into a deep hole.
II. Mortgage Refinancing Could Lower Your Payments
If the mortgage lender is unwilling to help you with reduced or deferred payments, consider mortgage refinancing. There are a number of loans that can significantly reduce your payment amount for a number of years. Interest only and hybrid loans are two options to consider depending on your tolerance for financial risk. Interest only mortgages allow the lowest payment amount because you are not paying any of the loan principle during the interest only period; this interest only period often lasts as long as five years.
If you have less tolerance for risk, consider a hybrid mortgage. Hybrid loans are a blend of fixed and adjustable rates that will give you a low payment like an interest only mortgage, without the same level of risk. Extending the term length of the loan type you choose will further reduce your payment amount. Traditional mortgages come with thirty year term lengths; however, there are now forty and even fifty year mortgage loans. By choosing an interest only or hybrid mortgage with the longest term length, your payment will be significantly reduced. This new, significantly lower payment amount will allow you to take back control of your budget.
III. Shop Around for the Best Mortgage Loan
Once you have decided mortgage refinancing is right for you it is important to shop around for the best lender. Homeowners often make the mistake of assuming the mortgage with the lowest interest rate is best; these homeowners neglect to factor in lender fees and closing costs, often overpaying thousands of dollars for the new loan. You can learn more about mortgage refinancing while avoiding costly mistakes by registering for a free mortgage guidebook.
Eva -
Advice on Bad Credit Home Refinance
Posted on April 25th, 2010 No comments
Alan Lim asked:
If you have been one of the thousands victimized by the financial crisis, you and countless others are having a hard time managing the payments of the mortgage of your house. Similar to most people, the house is the biggest asset you possess and probably paying the mortgage could be the biggest expense. Because of the financial crises, thousands of homeowners have been delinquent on their payments, thus making their credit scores low.
To make the management of their debt payment easier, bad credit home refinance packages could be a viable option on their part. Although getting a sub-prime loan is getting out of flavor, there are still companies that are willing to talk to you for a possible refinance deal. What you have to watch out for is the package having favorable terms. Usually, a bad credit home refinance deal carries with it higher interest or higher closing fees. Some will ask for pre-payment penalties. When calculating the risk that you will face, factor in the money that you will save when restructuring to the payments you have to shell out when the refinance is realized.
It could be a good idea to prepare for a more favorable bad credit home refinance by improving your credit score. Just by being diligent in your latest payments will have a large impact on how your credit rating improves.
When finalizing your bad credit home refinance, the lender will look at your equity and the amount you have paid already. If you have been paying your monthly dues for several years already, the value of the house plus your equity and your total loan payment will be factored in to calculate the amount of the second loan that will be used in refinancing your mortgage. A bigger equity and a higher valued home will always result to more generous refinance terms. When you are able to acquire this kind of a deal, aside from paying off the original loan, you might be able to get extra cash which is a nice bonus for you.
However, when foreclosure is high, a good move will be to hire an expert who will look for the appropriate home refinancing for you. Because the consultant knows what are required to secure a bad credit home refinance, his services could mean the difference between saving your home and being one of the homeless. The expert, with his personal contacts as well his deeper knowledge of rates, fees and other costs might be able to secure for you and your house the best bad credit home refinance deal there is.
Randall -
Home equity loan denied. Any advise?
Posted on January 17th, 2010 No comments
randysoby asked:
To make a long story short I applied for a home equity loan and was declined by B of A. My credit scores are a 790, 812 and a 680. The 680 was so low b/c of an AT&T charge off that was never mine (the SS# was one digit off from mine). I had that removed already but after B of A declined me. I even sent a letter that the AT&T charge off was removed but it still didn’t help. I owe 93,000 on my house and it is valued at 189,000. My area didn’t get hit bad by the foreclosure issue. The lady at B of A told me that they will do 85 ltv. The only other bad thing that I had were 3 late Searscard payments mid last year. They were 15 dollar payments that I forgot to pay. I owe nothing on credit cards, 1 joint car payment for 200/month with my wife and my mortgage of 950/month. My house is only in my name (not joint with my wife’s). I make 55k/year. I thought that my situation sounded like a banks dream. Any opinions? Are loans really that tough to get with the real estate situations or does B of A suck that bad? Oh, did I mention that I have 46k in a savings account with B of A? What do you think? Am I better off going to a bank or a credit union? I don’t want to run my credit again unless I am sure that I will be approved. I value your professional opinion but please dont waste your time trying to get my business.
I cant use my wife because her name is not on the house.
Willie -
Adjustable Rate Mortgage Loans – a Double Edged Sword?
Posted on January 8th, 2010 No comments
Adam Hefner asked:
There are many potentially confusing terms within a mortgage. One such example lie within adjustable rate mortgage loans. Some loans have interest rates which are fixed and never changed. This are logically called fixed rate loans. Other mortgages have rates which change along with the market interest rate. These are adjustable rate mortgages (ARM’s). Many borrowers are attracted to the lower initial interest rate some adjustable mortgages entail. However, this brief period of a lower payment is usually not worth the extra amount owed once your rate resets. A fixed rate is consistent and predictable. You will not have to guess as to future interest rates so you can effectively budget for your family. Some mortgages have what are called “teaser” interest rates. These are exceptionally low initial rates, sometimes as low as one percent. However, as their name implies, they tease you into the loan only to be socked with a huge interest rate increase six months or a year down the line. Unfortunately, many have fell for this trap and then end result often can be a foreclosure. Mortgages can either require interest only payments or alternatively they can be an even amortization during the course of the loan. Some borrowers are drawn to interest only mortgages because the payment is lower. However, most experts advise that a normal amortized loan is safer. You are working down principal creating more equity in your home. The time frame of mortgages can also vary. Most usually, mortgages have a thirty year repayment time frame. Some recent products have offered much longer repayment periods. Sometimes these can extend to 40 years. It is wisest to stick with a 30 year term. Even better is a 25 year term if you can afford the slightly higher payment. The shorter the term means the faster you are paying down principal. This creates more equity. This can help down the line if you seek to refinance should interest rates drop from the time you took out your loan. Some have used equity in their homes as a glorified ATM machine. This is not advisable. Most experts assert that equity in one’s home should not be tapped for daily spending. Different mortgages have different points or fees levied to the borrower. High fees or points can make an otherwise attractive mortgage very expensive. It is very important to read all the fine print. Know exactly what fees and points you are paying, and calculate them into the loan. There are many good online programs that can help with this calculation. A home is most probably your largest investment. The mortgage is your largest financial decision. Make sure you understand the differences between fixed rate mortgages and adjustable rate mortgage loans. Know the time period. Study the points and fees. An educated and careful borrower can save themselves a lot of money over the long duration of your mortgage.
MargaretMortgage Adjustable Mortgages, Adjustable Rate Mortgage, Adjustable Rate Mortgage Loans, Adjustable Rate Mortgages Arm, Amortized Loan, Borrowers, Confusing Terms, Double Edged Sword, End Result, Foreclosure, Initial Interest Rate, Initial Rates, Interest Rates Drop, Market Interest Rate, Rate Increase -
Can I get the $8,000 Tax Credit if I assumed an existing loan?
Posted on October 30th, 2009 1 comment
rrc72 asked:
Basically, we take over someone’s monthly mortgage payments, thus bailing them out of foreclosure. Will this disqualify my family from receiving the 8k credit? By the way, we would get the tax credit if we do the conventional way. Please advise.Is it true that if the house is sold with a non-qualifying assumption, that means you don’t have to pass a credit check or demonstrate your ability to pay the mortgage. If it’s a qualifying assumption, then you do?
Also, any other tips on dealing with assuming a mortgage loan will be greatly appreciated.
Elizabeth
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