Should You Trust A Forensic Loan Audit?

Attorney General Edmund G. Brown Jr., the California Department of Real Estate (DRE), and the State Bar of California have been warning homeowners against foreclosure rescue scams for quite some time. It seems to me, however, that they are always one step behind these individuals and businesses taking advantage of financially strapped homeowners.

Today, the office of the Attorney General released Read more

February 22nd, 2010 · Filed Under Foreclosure-Short Sale Information, Loan Modifications, Real Estate & Mortgage FRAUD

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Tenants In Foreclosure: Protections Under Federal Law S.896

Homeowners as well as tenants are having a hard time understanding what they should do and what their rights are when facing foreclosure.

Depending on state laws and city ordinances, tenants generally could be evicted for failure to pay the rent or for breaching the lease contract conditions. Nevertheless, tenants were given 60 day to vacate the property before the landlord could begin the eviction process.

In a property that is being foreclosed, however, tenants more often than not end up with the short end of the stick. In many cases the tenant continues Read more

September 3rd, 2009 · Filed Under Foreclosure-Short Sale Information, Real Estate Information

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Understanding Obama’s Making Home Affordable REFINANCE plan

Last week the US Treasury Department released some of the guidelines for the “Homeowner Affordability and Stability plan;” however, the details for refinances and modifications created some confusion even among the professionals in the real estate industry.

[Update April 28, 2009: Home Affordable Refinance Program (HARP) is extended to June 30, 2011]

Much of the confusion came from the belief that the refinance and modifications under “Making Home Affordable” (MHA) program were one of the same.

To make matter worse, loan modification “so called experts” are yapping on the radio and TV spots telling everyone that this plan won’t work or that they can qualify clients directly with their lenders for a fast approval.

Well, of course they are going to say that!

It is in their best interest to keep homeowners ignorant about the “Making Home Affordable” programs and keep charging them illegal upfront fees for modifications.

MAKING HOME AFFORDABLE REFINANCE

Looking at the “Making Home Affordable Refinance,” it will provide Read more

March 10th, 2009 · Filed Under Foreclosure-Short Sale Information, Loan Modifications

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Understanding Obama’s Making Home Affordable MODIFICATION plan

Yesterday, the Treasury Department released some of the detailed guidelines for the “Homeowner Affordability and Stability Plan.” The plan includes $75 billion in incentives for lenders to modify the loans of struggling homeowners which will run through December 31, 2012. These incentives are under the “Making Home Affordable Modification” program.

[Update April 28, 2009: The inclusion of second mortgage loan modification within the MHA modification plan has been added]

MAKING HOME AFFORDABLE MODIFICATION

The “Making Home Affordable Modification” is not mandatory for all investors and mortgage services/lenders; however, it will serve homeowners as an incentive for loan servicers/lenders to generate loan modifications. Nevertheless, financial institutions that accept future “bail out” funding from the Treasury’s Financial Stability Program must participate in the “Making Home Affordable” (MHA) program.

Servicers who decide to participate will Read more

March 5th, 2009 · Filed Under Foreclosure-Short Sale Information, Loan Modifications

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SB 1055 California State Tax Relief Applied To Forgiven Mortgage Debt

The big news on everybody’s radar lately was the $700 billion “Rescue Plan,” which was vetoed by the House of Representatives yesterday and sent back to be re-drafted. Many on “Main Street” oppose to the bail out of Wall Street with tax payer’s money, while others see the “bail out” as a necessary evil that could possibly help stabilized the US economy. Meanwhile, there was another type of “rescue” that unfolded in Sacramento Read more

September 30th, 2008 · Filed Under Foreclosure-Short Sale Information, Loan Modifications

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H.R. 3221 Housing and Economic Recovery Act of 2008 Passes New Permanent Loan Limits

The House passed the massive housing bill last Wednesday, the senate voted Saturday to send it to the president and today President Bush signed the “Housing and Economic Recovery Act of 2008 HR 3221.”

HR 3221 is intended to aid in stabilizing our economy, support first-time homeowners and provide mortgage relief for Read more

July 30th, 2008 · Filed Under Foreclosure-Short Sale Information, Mortgage - Loan Information, Real Estate Information

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What is Wrong with Buying One Today and Losing One Tomorrow?

Illustration by: Matt Mahurin

Some of the distressed emails I get from homeowners facing foreclosure ask me what I think about buying a home before losing their current one. To answer that question I will give you my personal opinion at the end of this post.

First let’s look at the case of Read more

July 17th, 2008 · Filed Under Foreclosure-Short Sale Information, Real Estate & Mortgage FRAUD

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New California Law Will Only Delay Foreclosure – S.B. 1137

Photo courtesy of the California Governor’s office

Tuesday, in another effort to protect homeowners facing foreclosure, California Gov. Arnold Schwarzenegger signed bill S.B. 1137 into law. This law would only delay the foreclosure process in hopes that lenders will talk with homeowners before taking a final decision to foreclose on the property.

This new law has certain restrictions Read more

July 9th, 2008 · Filed Under Foreclosure-Short Sale Information

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Project Lifeline Aims to Help SOME Homeowners Facing Foreclosure

Yet another plan hoping to aid homeowners was unveiled this past Tuesday.

However, don’t think for a moment that this plan, introduced by the Bush administration and six of the largest mortgage lenders, will help every homeowner facing foreclosure. No…It won’t, but with the combination of this plan, the “Mortgage Rate Freeze,” the Economic Stimulus Package unveiled yesterday and today’s lower mortgage rates we may see a few more homeowners able to save their homes.

The program called “Project Lifeline” will offer Read more

February 14th, 2008 · Filed Under Foreclosure-Short Sale Information

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Federal Tax Relief for Short Sales & Foreclosures signed by the President (H.R. 3648)

After reading my post “Taxing Short Sales and Foreclosures,” few homeowners in San Jose selling their homes as short sales viewed that as a sight of relief because most had either refinanced their homes or purchased their homes with no money down.

At the time I published that post, there were bills that had been introduced but nothing had passed yet. However, yesterday the “Mortgage Forgiveness Debt Relief Act of 2007 H.R. 3648” bill passed by both chambers of Congress and was signed by President Bush.

[UPDATE Oct 3, 2008: Emergency Economic Stabilization Act of 2008 H.R. 1424 extends tax relief through calendar year 2012 - see below ]

Before this bill, when a troubled borrower lived in a home worth less than the actual balance of the current mortgage(s) and Read more

December 21st, 2007 · Filed Under Foreclosure-Short Sale Information, Loan Modifications

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Mortgage Rate Freeze Looks to Aid SOME Struggling Homeowners

Gov. Arnold Schwarzenegger announced on Tuesday November 20, 2007 a deal with four major subprime lenders Countrywide, GMAC, Litton and HomeEq. A deal that would freeze adjustable interest rates for California homeowners struggling with ARMs resetting to higher mortgage payments.

And today the Bush administration announced Read more

December 6th, 2007 · Filed Under Foreclosure-Short Sale Information, Mortgage - Loan Information

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Taxing Short Sales and Foreclosures

It is surprising to many that one can loose a home by selling it as a short sale or letting the bank foreclose on it and still be liable for payment of income tax on the amount the lender lost during the transaction (Read the: “Homeowner’s Guide: Short Sales and Preventing Foreclosure“)

Two types of income can result from a foreclosure or short sale: Read more

November 1st, 2007 · Filed Under Foreclosure-Short Sale Information

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A Homeowner’s guide: Short Sales and preventing Foreclosure Pt1 (the reality of a foreclosure)

The dream

It’s the year 2005, for others 2006, and for others 2007, and you are happy because you finally realized the American dream of owning a home.

You finally have a home where can build a future for yourself and your family. According to your agent and your mortgage broker, they promised you could refinance in a year or two and take some money out for a big vacation or they promised you could move up to a bigger and better home and make money by renting the home you just bought and become a millionaire just like that.

The nightmare

Now fast forward to 2007 and you are hit in the faced with the reality. What happened to your dreams? Dreams eagerly over-inflated by Read more

September 17th, 2007 · Filed Under Foreclosure-Short Sale Information, Real Estate & Mortgage FRAUD

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A Homeowner’s guide: Short Sales and preventing Foreclosure Pt2 (Alternatives to selling)

The solutions

If you are in similar situations as mentioned on my previous post, there are some steps that you should take before refinancing. The first thing you should do is (*if you have enough time*) repair your credit (beware of credit repair companies). Next, calculate if you have built enough equity to benefit from the refinance. If you credit is in good shape and you have built enough equity you will most likely be able to either maintain or lower you payment after you have refinanced. Great! What a relief right?

If you cant repair your credit (beware of credit repair companies) in time to refinance or if you have already missed some payments due to Read more

September 17th, 2007 · Filed Under Foreclosure-Short Sale Information, Loan Modifications

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A Homeowner’s guide: Short Sales and preventing Foreclosure Pt3 (Selling your home)

Other solutions

If none of the solutions listed on the article above helped you solve your problem you still have other options.

Beware, however, that the following solutions have credit, legal and tax ramifications. The credit ramifications I can explain them to you in detail on a one on one meeting. If you would like to know about your tax and legal ramifications, seek professional advice from a CPA and/or attorney.

The other options you may have are: Read more

September 17th, 2007 · Filed Under Foreclosure-Short Sale Information

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A Homeowner’s guide: Short Sales and preventing Foreclosure Pt4 (The ramifications)

Now that you now all the options available when facing a foreclosure or a short sale or the possibility of not qualifying for a refinance; I will tell you what ramifications or consequences could be expected when doing a short sale, deed-in-lieu of foreclosure or a foreclosure.

*Again, I need to disclose that to cover the specific legal consequences and tax liabilities you may face when doing a short sale, deed-in-lieu of foreclosure or a foreclosure, you need to seek the professional advice from a CPA and/or an attorney with experience on these fields.

Many lenders will ask sellers to Read more

September 17th, 2007 · Filed Under Foreclosure-Short Sale Information

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Foreclosure scams grow rampant in todays Real Estate market

Today’s real estate market has brought an abundance of inventory, many of which are being sold as short sales, sold at foreclosure auctions or sold as REO properties. However, this market has also brought to our doorsteps scam artists hoping to prey on the misinformed public.

Many homeowners facing foreclosure or a short sale are constantly receiving phone calls, emails and unsolicited mail offering a solution to their problems. Many of these scam artists are so advanced with their techniques that Read more

August 22nd, 2007 · Filed Under Foreclosure-Short Sale Information

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Avoiding FORECLOSURE!!

Research released by Realty track shows that there are 70% more foreclosures since last year.

Generally it takes a few months before this happens but there are events that happen that lead up to this ugly ending.

If you are a homeowner that has been late a few times with your mortgage, don’t worry; you will not loose your home that easily. Typically if you are late with a few payments, the lender will contact you and generally if you missed 3 or more payments, your lender will begin to move towards foreclosure. Once the process starts, the time it takes for you to be out on the street depends on each state, which could be from 3 to 10 months. The FHA loans require at least a 6-month period said Brian Montgomery, Assistant Secretary of Housing at the Department of Home and Urban Development (HUD).

To prevent foreclosure on your home, there are many things you can do. First, DO NOT buy-into a dangerous loan that you cannot afford. If you are falling behind on your mortgage payments and the lender contacts you, the worst thing you can do is ignore their phone calls. Take action by contacting them and letting them know your situation. If you have fallen ill or had a temporary loss of income, you will be amazed how many lenders want to work with you to keep you in that house because foreclosures are very expensive for lenders.

Depending on the lenders, they will either want to restructure the loan or stretch the loan to help you get out of trouble. Lenders would much rather receive their money for the loan then have to go through the process of foreclosure.

And finally if you are in a situation where you can refinance, do it now but don’t make the same mistake twice and get a loan that really fits your financial situation.

UPDATE Sept 17th 2007: Before making an important decision as a short sale or foreclosure you must read these other articles from the “Homeowner’s guide to preventing foreclosure”

May 18th, 2006 · Filed Under Foreclosure-Short Sale Information

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