What is the Obama loan modification plan all about?

Even if you are not delinquent on your payments, you can still file for an Obama loan modification help if you are facing a financial hardship. Fannie Mae offers early loan workouts to borrowers who face financial difficulties. Even if these borrowers have never been late on their payments, Fannie Mae will offer early loan workouts to help those in need. If you are a qualified homeowner, it is unnecessary for you to have damaged credit scores due to late payments to get the help that you need.

With today’s economy, thousands of people face lay offs and struggle to make their monthly payments on their mortgages. In the past, it was a general requirement that a homeowner had to be 60 to 90 days late on their mortgage payments in order to be considered for a loan modification. This strict policy caused many borrowers to have backed up bills which caused an additional financial hardship. In turn, this huge balance that has been racked up was unaffordable by most homeowners.

If a buyer is able to show his lender that he/she is in danger of defaulting on his/her payments, then their lender will offer them a period of reduced payment for about 3 to 4 weeks. If these new lower payments are all made on time then this reduced payment plan could turn into a more permanent basis. Another thing a buyer can do is prepare for the future if they know that there will be a financial issue. If this is the case, the buyer can contact their lender and apply for a Obama loan modification which will help them out when this financial issue takes place. For example, if a borrower takes a pay cut and will no longer be able to afford their current payment plan, their lender could take this pay cut into consideration and give the borrower a new lower monthly payment plan.

What you must remember is that all lenders will carefully review each borrower’s application and case to make sure that they are in need of a loan modification.  As a homeowner, you will have to submit the correct paperwork, as well as give proof of your current income. This information will help the lender give you your own personalized loan modification. To assure that you have the best possible chances of approval, it is recommended that you learn how to properly complete all the necessary forms.

If you are a homeowner who knows that you will face future payment issues, now is the time to act and apply for a Obama loan modification.  If you think you need to have missed payments to be qualified for a Obama loan modification you are wrong. If you are interested, it is recommended that you begin to research, learn and prepare so that obtaining your end goal is easier for you.

For more information on your current situation and viable alternatives to foreclosure, call 1-800-778-8335.

Difference in a Forbearance Agreement and a Loan Modification

Many individuals confuse a mortgage modification with a forbearance agreement. A forbearance agreement is when a financial institution lets a homeowner not make monthly payments or apply an adjusted mortgage payment for a specific time period. Any interest or late fees that remain unpaid at this point in time will be attached to the loan principal. The financial institution will stop the foreclosure process while in this time frame. This lets the homeowner try to get back on track from their financial problem and allowing them to stay in their home. Many mortgage companies will need homeowners to fill out a forbearance document. This forbearance document is sometimes a bit difficult to complete.

Forbearance agreements can differ greatly from one institution to another. Some financial institutions need the homeowner to supply a tiny monthly installment to help make up the missed payments on top of the regular mortgage payment amount. Let’s say that your regular mortgage payment is $2200.00 a month and you did not make a total of three payments. Your financial institution may ask you to submit an extra amount of $200.00 a month on top of your regular payment of $2200.00. This extra amount is then used towards the payments you did not make. This will continue until your account is paid up to date.
Some forbearance agreements will have the homeowner not make any payments at all for a certain amount of time. This will give the homeowner more time to get back on track. The missed payments and all applicable interest will be tacked on the the principal amount of the loan. The regular terms of the loan will be back in place upon the start of the regular monthly payments.

Other forbearance agreements let the homeowner to stop making monthly mortgage payments all together for a fixed period of time. This allows the homeowner to get back on his/her feet. Any missed mortgage payments and interest are added to the loan principal. The normal terms of the mortgage are back in effect once the monthly mortgage payments start again.

 

Considering Home Loan Modification? Read Through These Basic Facts

Mortgage Modification really means a permanent change in one or more of the terms of your home loan allowing it to be changed so that you have a lower payment.

Read through the following to determine whether home loan modification is right for you:

• This service is a viable option when the rate or terms of your current home loan make it impossible for you to continue making the payments, thus risking losing your home.
• Mortgage modification is not synonymous with debt consolidation, refinancing loans, or even forbearance. Your lender is agreeing to change the terms of your mortgage originally agreed to when you closed on your home or refinanced.
• Mortgage modifications stop foreclosure proceedings and put you back in good standing with your lender. There are some other facts that explain why lenders actually want to work with you to negotiate a loan modification.

The good thing about loan modification is that you can roll the principal and interest, past due escrow, and late fees into the mortgage modification and thus will not be lost revenue to the lender. Loan modifications may use a step rate approach or an extended term methodology to allow you to repay and get up to speed on your mortgage. It’s a win win situation - as you get more time to pay, and your lender gets more overall interest!

Steer Clear of Foreclosure with a Home Loan Modification

Mortgage lenders don’t want to foreclose on you any more than you want it to happen. Face it - they’re not in the real estate business - they are in the banking business. They’d much rather work with you to modify your home loan. Loan modification lets you spare your credit score the major damage it would take from a foreclosure. And, if you don’t know it yet, let me tell you: Your credit score is your key to the kingdom, so to speak - so keeping it in good shape should always be your goal.

Here are the requirements you must meet in order to be considered a good candidate for a loan modification process to be started on your behalf:

• Your monthly mortgage must be impacted by a verifiable reduction in income
• You must be currently employed or have another source of verifiable, stable and predictable monthly income
• The home loan you wish to modify must be for your primary residence

If your current mortgage payments are too much for you to handle, don’t panic. If you have the ability to pay your mortgage at a lower rate, loan modification may very well be a viable way for you to stay out of foreclosure.

 

For more loan modification information and other foreclosure options, call 1-800-778-8335.

 

 

Article source:  Ezine

Government owned homes (HUD foreclosures) provide exceptional value in today’s economy

If the house you are interested in is a Housing and Urban Development (HUD) foreclosure, then it was last purchased with an Federal Housing Administration (FHA) mortgage. The Federal Government insured the loan, making the previous FHA loan possible. By insuring the loan the Federal Government agrees to repay the Lender for all money lost by the lender in case the property is foreclosed on. It’s a good deal for the Lender as their investment is 100% insured. The Federal Government protects itself by collecting on each transaction of a federally financed property a Mortgage Insurance Premium (MIP) at the time of purchase. The MIP is 2.25% of the mortgage amount and is helpful in several ways.

Because the MIP is charged, the FHA can allow a purchaser to reduce their initial out of pocket cash expenditure from 5% to 3% of the purchase price, making it possible for many more Americans to buy homes. HUD reports in their mission statement that home ownership for the majority of Americans is their goal and that has proven to be the driving force behind their decisions and directives since their inception.

The MIP is pooled with all the other premiums and allows the Federal Government to continue helping homebuyers save money on their homes by keeping the costs down for homebuyers.

Benefits of buying an FHA Foreclosure

• No Appraisal required
• Instant equity
• Flexible Credit requirements
• Low money down.
• HUD will pay all closing costs. (Up to 5% in some states)

Hundreds of government owned homes for sale on the Treasure Coast mean a buyer can experience  significant savings and enjoy a selection from a wide variety of locations.

For more information on government homes on the Treasure Coast, call Sharon Kelly Realty, 1800-778-8335.

Florida’s Existing Home, Condo Sales Rise in 3Q 2009

ORLANDO, Fla., Nov. 10 /PRNewswire/ — Sales of existing single-family homes in Florida rose 33 percent in third quarter 2009 compared to the same period a year earlier, according to the latest housing statistics from Florida Realtors®. A total of 44,345 existing homes sold statewide in 3Q 2009; during the same period the year before, a total of 33,311 existing homes sold. It marks the fifth consecutive quarter that Florida has seen higher existing year-to-year home sales, according to the state association.

Statewide sales of existing condominiums in the third quarter rose 56 percent compared to the same time the previous year. This marks the fourth consecutive quarter for increased statewide sales in both the existing home and condo markets compared to year-ago levels.

Statewide sales activity in 3Q 2009 also increased over 2Q 2009’s sales figure in both the existing home and existing condo markets, Florida Realtors’ records show. For 3Q 2009, statewide sales of existing homes rose 2.82 percent over the 2Q 2009 figure; existing condo sales statewide in 3Q 2009 increased 0.37 percent over the 2Q 2009 level.

To gain insight into current trends in Florida’s real estate industry, the University of Florida’s Bergstrom Center for Real Estate Studies conducts a quarterly survey of industry executives, market research economists, real estate scholars and other experts.

“Most economists think the recession is over, but people are afraid to spend money as unemployment keeps going up, which creates problems for every sector of the real estate market,” said Tim Becker, the center’s director.

On the positive side, survey respondents expressed increasing optimism about their own business outlook, and predicted great opportunities for future investment. Becker noted that the euro’s favorable exchange rate against the dollar and the availability of desirable commercial property at low prices is encouraging international investors.

“Everybody thinks that Florida will rebound because we have so much going for us - the sun shines every day and there are a lot of advantages to living here,” he said. “Foreign investors see that too and believe their prospects are good for long-term investments.”

All of Florida’s metropolitan statistical areas (MSAs) reported increased sales of existing homes in the third quarter compared to the same three-month-period a year earlier, while 17 MSAs showed gains in condo sales.

The statewide existing-home median sales price was $145,400 in the third quarter; a year earlier, it was $185,600 for a decrease of 22 percent. The 3Q 2009 statewide existing-home median sales price was 1.25 percent higher than 2Q’s statewide existing-home median sales price of $143,600. According to industry analysts with the National Association of Realtors® (NAR), sales of foreclosures and other distressed properties continue to downwardly distort the median price because they generally sell at a discount relative to traditional homes. The median is a typical market price where half the homes sold for more, half for less.

In the year-to-year quarterly comparison for condo sales, 14,797 units sold statewide for the quarter compared to 9,488 in 3Q 2008 for a 56 percent increase. The statewide existing-condo median sales price was $106,100 for the three-month period; in 3Q 2008, it was $160,100 for a decrease of 34 percent.

Low mortgage rates remain another favorable influence on the housing sector. According to Freddie Mac, the national commitment rate for a 30-year conventional fixed-rate mortgage averaged 5.16 percent in 3Q 2009; one year earlier, it averaged 6.32 percent.

Two charts showing statistics for Florida and its MSAs are attached. One chart compares the volume of existing, single-family home sales and median sales prices in the third quarter of 2009 to the third quarter of 2008, based on Realtor closed transactions from local Realtor boards/associations within the MSAs. The second chart compares the volume of existing condo sales and median sales prices in third quarter 2009 to third quarter 2008, based on Realtor closed transactions from local Realtor boards/associations within the MSAs.

Florida Realtors®, formerly known as the Florida Association of Realtors®, serves as the voice for real estate in Florida. It provides programs, services, continuing education, research and legislative representation to its 115,000 members in 67 boards/associations. Florida Realtors® Media Center website is available at http://media.floridarealtors.org.

U.S. EB-5 Investor Visa assists in U.S. residency

For potential international buyers, the U.S. EB-5 Investor Visa program may be their ticket for U.S. residency. 

There are 10,000 EB-5 visas available each year.  To qualify, a nonresident alien must establish a business or invest in an existing business (created or restructured after November 19, 1990), invest $1 million in the business (in some cases, only $500,000) and create full-time employment for at least 10 U.S. workers.   

For more information, visit uscis.gov, and search on “EB-5 Visa”

Source: Florida Realtor Magazine,  November/December 2009

Bankrupt Lending Giant in Legal Standoff with FDIC

Taylor Bean battles FDIC for control of funds

OCALA, Fla. – Sept. 2, 2009 – About 50,000 mortgage and escrow checks sitting in frozen bank accounts and sent by former Taylor, Bean & Whitaker Mortgage Corp. customers are the subject of a legal standoff between the bankrupt lending giant and the Federal Deposit Insurance Corp., both of which want control of the $1.9 billion in funds.

FDIC officials on Friday filed a motion in the U.S. Bankruptcy Court in Jacksonville, which is overseeing Taylor Bean’s dismantlement, to allow the deposit insurance company to have access to the money, frozen in more than 100 Colonial Bank accounts, and to force Taylor Bean to hand over its records so the money can be disbursed properly.

“Simply put, (Taylor Bean) is holding hostage hundreds of thousands of homeowners and each day of delay is causing mounting and growing harm to individual homeowners as a result of (Taylor Bean’s) refusal to respect the termination (of Colonial Bank’s business relationship with Taylor Bean),” FDIC lawyers said in their motion.

Taylor Bean lawyer David Dantzler, who said Friday his client had no interest in the money frozen in Colonial’s accounts, said Monday the company changed its mind now that FDIC wants the money.

The legal headbutting between FDIC and Taylor Bean is more than semantics.

At stake for former Taylor Bean customers is money they’ve sent to Colonial and Taylor Bean for their home mortgages and escrow payments, meant to pay for home insurance and real estate taxes.

On Monday, Taylor Bean filed a counter motion, claiming to be far better suited to disburse those monies than the FDIC.

“Taylor Bean is in the best position … to oversee this,” Dantzler said. “In our view it’s the preferable way.”

Taylor Bean still has records of all its former customers and can best sort through those checks to make sure investors, who bought bundled mortgage securities, get paid and that home insurance and tax bills are paid, Dantzler said.

In addition, Taylor Bean still has its computer systems to process those frozen checks.

“Give us all the borrower money and we’ll reconcile it, we’ll clean it up,” Dantzler said.

Allowing Taylor Bean to sort through that $1.9 million and determine where those checks should be spent is part of what bankruptcy court is all about, Dantzler said, citing that Taylor Bean is now under bankruptcy supervision and has a new board of directors.

“(Taylor Bean) is the only party that has the systems, expertise, and institutional knowledge required to perform these reconciliations and allocation activities,” Taylor Bean’s motion said. “Given the … procedural safeguards attendant to this court’s jurisdiction, coupled with TBW’s new governance and management structure … TBW is well positioned to perform the reconciliation and allocation work …” When asked, Dantzler said Taylor Bean would also continue to collect a servicing fee for processing the checks.

FDIC officials said in their court motion that Taylor Bean shouldn’t be allowed near the money.

Throughout August, the FDIC made numerous demands of Taylor Bean for homeowner information so it could use those frozen monies to make needed payments to investors and pay homeowners’ escrow and tax bills.

“In some instances (homeowners have) received notices that their insurance policies will be canceled or that their real estate taxes are overdue,” said FDIC lawyers in their court motion. “The harm being caused to individual homeowners is an issue that has been continuously raised and pressed by regulators.”

Colonial Bank originally froze Taylor Bean’s accounts on Aug. 6, after federal agents raided the mortgage lender’s Ocala headquarters Aug. 3. Taylor Bean had almost all of its bank accounts at Colonial. Colonial was Taylor Bean’s sole lender when it came to funding mortgages.

On Aug. 4, the Federal Housing Administration pulled its accounts from Taylor Bean, no longer allowing it to underwrite FHA’s mortgages. Ginnie Mae and Freddie Mac did the same. Within 24 hours, Taylor Bean lost 95 percent of its business, totaling nearly 500,000 mortgage accounts worth $80 billion.

By Aug. 11, FDIC ordered Colonial Bank to no longer perform any financial transactions with Taylor Bean without FDIC written approval.

On Aug. 14, the Alabama Banking Department closed Colonial Bank and the FDIC was appointed the receiver of the bank’s assets. The FDIC later oversaw the purchase of Colonial Bank to BB&T.

When Taylor Bean filed for Chapter 11 bankruptcy protection Aug. 24, the court clamped down on all of Taylor Bean’s remaining business, including the frozen Colonial accounts.

During August, the Florida Office of Financial Regulation, which licenses mortgage companies, also suspended Taylor Bean’s licenses to originate and service mortgage loans. A dozen other states followed suit and dispatched their own cease and desist orders, stopping the former mortgage giant from doing business in their states.

The FDIC on Friday argued in its court petition that “(Taylor Bean) can not properly service the mortgages while under investigation from numerous state and federal governmental bodies … (Taylor Bean) can only do additional harm to the homeowners by holding the required information, which apparently is what (Taylor Bean) seeks to do for unknown reasons.”

The bankruptcy court will hear the case Sept. 11 in Jacksonville.
Courtesy Florida Association of Realtors

Worst Recession Since the 1930’s May Be Recovering

The economy could rebound faster than expected

WASHINGTON – Sept. 2, 2009 – Manufacturing grew in August for the first time in more than a year and a half, suggesting a broad, stronger-than-expected recovery from the worst recession since the 1930s.

The Institute for Supply Management reported Tuesday that its much-watched manufacturing index grew from July to August for the first time in 19 months, rising to 52.9, the highest level since August 2007. Anything above 50 signals that manufacturing is expanding.

The institute says the figure corresponds to an overall economy growing at an annual pace of 3.7 percent, about twice as fast as economists have been predicting.

“It’s very good news,” says John Canally Jr., investment strategist at LPL Financial in Boston. “And it wasn’t just autos.”

Economists had worried that recent signs of life in manufacturing may have been warped by the government’s cash-for-clunkers program, which ignited car sales in August. But 11 of 18 manufacturing industries surveyed reported growth last month.

“Investors should smile at this number,” says Joel Naroff of Naroff Economics Advisors.

But he cautions that the Federal Reserve may read the report as a sign it should reverse course and start raising interest rates to contain inflation as the recovery gains speed.

“This is a favorite report for many at the Fed, and if the members start believing the recovery story is real, then the decision to raise rates will not be too far behind,” he says.

Naroff expects the Fed to raise rates in December or January.

Factory inventories have fallen 40 consecutive months, suggesting that manufacturers will have to crank up production to meet rising demand for their goods. “You’re hearing anecdotal evidence of people walking into stores and not finding what they need,” Canally says.

The report’s only sour note: Manufacturing employment was still shrinking in August, though more slowly.

The National Association of Realtors reported Tuesday that its index of pending home sales increased for a record-setting sixth-consecutive month in July, hitting the highest level since June 2007.

Overall, the new reports suggest a surprisingly robust recovery, Canally says. “This was the deepest recession since the Great Depression. You’re bound to get a big snap back.”

Courtesy Florida Association of Realtors

How To Choose the Right Short Sale Negotiation Company

Short Sale Negotiation Companies: How To Choose The Right One

Real Estate Brokers, Agents, and Investors, this article is for YOU!

I know times are hard right now, but there really hasn’t been a better time, in our lifetimes, to take advantage of this opportunity.  Right now, there is less competition in Real Estate Industry than we will ever see again.  WHY?  Because it is not automatic anymore?  We are forced to learn new skills and strategies to stay above the competition.  Those that adapt shall overcome.  Those that don’t, will move into new fields and miss out on the opportunity of a lifetime.

When searching for a Great Short Sale Negotiation Company, you must not get swayed by the hype and rhetoric they try to sell you on.  Below, we have created a list of things you should look for when choosing the right company.

1.  A company dedicated to short sales and not loan modifications, postponements, etc.

I say this for the following reason.  You need a company with negotiators that specialize in one area. Loan modifications and postponements are indeed similar, but the strategies and techniques within each are very different.  A short sale negotiator and loan modification specialists are two different animals and should be versed in one or the other.

2.  A company that has a proven track record and doesn’t try to sell you on hype.

Most companies try to sell you on the FEAR FACTOR.  They speak about how bad other companies are rather than how good their company is.

In the industry, you will see many negotiation companies that make the claim that you should not work with a company that has an investment leg because they become your competition and will steal your deals.  First of all, their is more opportunity and inventory now then their ever has been.  Second, a company that engaged in such practices would not only be unethical, but they would not exist for very long.

You will also hear companies try to sell you on the fact that they have ex bank negotiators on their team that handle their negotiations and lead you to believe that their program is superior to other programs.  While this may be well and true, it doesn’t attest to the quality of the program.

If you have been in this industry more than a day, you will know that each bank has their own separate Standard Operating Procedure, and that no two work alike internally.  I am from the old school where I believe it is hard to teach a old dog new tricks.  It is much more difficult to train an ex bank negotiator on your system than it is to train a customer service agent on your system.  Think about what we all do when we come under pressure.  We revert to what we know best, our old habits.  If you don’t have any old habits, you revert to the system.  Thus the customer service agent will revert to the only system they know.

It is my belief that a well trained customer service agent makes a much better short sale company negotiator than an ex bank negotiator.

3.  A company that has built their program to be customer friendly and not overly complicated.

You need to find a company that has a very simple submission process that is very customer friendly.  Lets be honest, there is no need for a Broker, Investor, or Agent to be confused with the submission paperwork.  After all, aren’t they outsourcing the service to eliminate the headache.  Many companies out there make their contracts and submission process so ridiculous that the client gets discouraged before the process even starts.

4.  A company that has based their service around serving the customer and prides itself on customer service.

If you are active in the Real Estate Community and frequent different forums, seminars, and other avenues, you will see that the biggest complaint people have with negotiation companies is the lack of customer service and deal tracking.  Make sure you find a company that has an online tracking system and gets back to within 24 hours.  If they don’t have the ability to say yes to both of those, then move on.  You will be glad you avoided the headache.

Negotiation companies are a dime a dozen in the industry.  Being an investor that has specialized in short sales for the past few years, I would definitely recommend that you go with a company that is actually in the business, and not just a by product of the business.  Not only will they be up to date on the cutting edge tips and techniques, but they can act as coaches/mentors and be a free source for real estate knowledge.

Remember, their are people paying $20K+ to be a part of short sale coaching programs across the nation.  Why not take advantage of that with the resources you already have at hand.

Courtesy The Experts In Real Estate.com

International Home Buyers Significant to Florida Realtors’ Business

FAR Study: 2009 Fla. international homebuyers

ORLANDO, Fla. – Aug. 31, 2009 – International home buyers make up a significant part of the Florida real estate market, and are an important part of many Florida Realtors®’ businesses. According to a study conducted for the Florida Association of Realtors® (FAR) by the National Association of Realtors (NAR), a majority (54 percent) of Florida Realtors worked with an international client within the past 12 months.

The typical Florida Realtor participating in the survey worked with three international clients; 10 percent of respondents worked with 11 or more international clients in the past year.

Not all client interactions result in a transaction. In the past 12 months, 34 percent of Realtors who worked with international clients reported that none of their international clients purchased a home. However, this does not mean that those international clients will not ultimately buy in Florida.

Other study highlights:

• 86 percent bought an existing home, while 14 percent opted for a new home.

• 52 percent chose a single-family detached home. Of the rest, 34 percent chose a condo, 76 percent a townhome, and 7 percent “other.”

• One in four buyers (27 percent) bought a home in South Florida, while Bradenton-Sarasota-Venice and Orlando attracted 11 percent each. However, one-third (32 percent) of foreign buyers purchased a home outside Florida’s top six metropolitan areas.

• One-third of buyers (35 percent) who eventually decided to walk way did so, at least in part, because of property tax costs; while 31 percent cited immigration laws that prevent year-round residence. While Floridians balk at the cost of property insurance, however, only 20 percent of immigrants listed that as a reason to walk away.

The complete survey can be found on Florida Realtors website at: http://floridarealtors.org/LegislativeCenter/Research/index.cfm

© 2009 FLORIDA ASSOCIATION OF REALTORS®

Next Page »