What is a Loan Modification?

Loan modifications have been, for the most part, the long waited rescue plan for some homeowners who have fallen behind on their payments. Nonetheless, this is not the silver bullet for the foreclosure problems we are going through right now.

Contrary to what the so called “loan modification experts” may say, not everyone qualifies and not every lender is cooperating.

THE BASICS

To understand what a loan modification is, we need to first Read more

November 26th, 2008 · Filed Under Foreclosure-Short Sale Information, Mortgage - Loan Information

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Repair Your Credit By Legally Removing All Negative Accounts: It’s All Legal, I promise! (Just Don’t Report It To The Authorities)

I am sure that by now almost everyone has seen advertisements on the radio, television or the internet from companies or companies affiliated with law firms claiming to be “credit repair experts.” They boldly claim to be successful at removing from credit reports any derogatory accounts including short sales, foreclosures, and bankruptcies.

Most of the claims in these advertisements say, “We can clean your credit report and save you thousands,” “We remove foreclosures and bankruptcies from your credit report and best of all; it is all legal.”

Well, believe me when I tell you that Read more

November 7th, 2008 · Filed Under Credit Repair scams, Foreclosure-Short Sale Information, Predatory - Subprime Advertisement

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US Financial Crisis: Whose Fault Is It Anyways?

Yesterday Henry Paulson, US Treasury Secretary, announced a plan to spend $250 billion to purchase stocks in at least nine major financial institutions. This money infusion would give taxpayers ownership stake on these banks and guarantee a 5% return. It would also help banks build more reserves and in turn ease lending to consumers and businesses alike, at least that is what we hope banks will do.

The Emergency Economic Stabilization Act of 2008 H.R. 1424 is known in Main Street as the “Wall Street bail out” plan. However, in Wall Street it is known as the “rescue” plan. Regardless of the name; many people Read more

October 15th, 2008 · Filed Under Foreclosure-Short Sale Information, Mortgage - Loan Information, Real Estate Information

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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

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What is Your Code of Ethics?

Not too long ago “business ethics” was an expression that many considered an oxymoron. Then, in the 1990’s corporations made a remarkable turnabout by addressing codes of ethics, conduct issues in policy manuals, etc. The main reason was because businesses became increasingly concerned about ethics after realizing that ethical practices actually made business sense.

The rules of ethical behavior that govern businesses and Read more

September 12th, 2008 · Filed Under Foreclosure-Short Sale Information, Mortgage - Loan Information, Real Estate Information

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Loan Modification and Foreclosure Help at San Jose Community Event

As I mentioned it on the previous post, there will be a big community event held at Independence High school in San Jose on August 20, 2008 aimed to help homeowners struggling with their mortgage payments and much more.

Following is more detailed information about Read more

August 16th, 2008 · Filed Under Foreclosure-Short Sale Information

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Loan Modification, Foreclosure Prevention and HUD Counseling Event in San Jose

I have been invited, along with some SCCAOR members, to help in the “Foreclosure Prevention and Rescue Fair” in San Jose on August 20, 2008.

[UPDATE]: Details for the event here

The “Foreclosure Prevention and Rescue Fair” is presented by the City of San Jose, the Department or Real Estate (DRE), local elected officials, several non-profit partners of “Don’t Borrow Trouble Silicon Valley” and The Santa Clara County Association of REALTORS® (SCCAOR).

The main goals for this foreclosure help fair is to assist troubled homeowners avoid foreclosure and keep their homes.

The services that will be provided at this event are: Read more

August 6th, 2008 · Filed Under Foreclosure-Short Sale Information

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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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Mortgage Fraud: How a “Straw Buyer” Scheme Works

Mortgage fraud is an epidemic that continues to be around and it can take form in many different ways (foreclosure rescue schemes, illegal flipping, etc). One form of mortgage fraud is a “straw buyer” scheme. This is how it works:

The participants

The most important piece to this scheme is Read more

July 10th, 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.

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

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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, Mortgage - Loan Information, Real Estate 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, Mortgage - Loan Information

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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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