How to Show Income When Getting A Home Loan - Mortgage Loan Help

Buying a New Home or Condo has been gaining momentum amongst First Time Home Buyers, Rehab Property Flippers, and Buy and Hold Cash Flow Investors.

When Buying a Home or Condo, you will want to get your loan pre-qualified first. Part of getting your home loan pre-approved is showing your income and how much house you can afford.

Watch this quick video where I interview a top loan consultant to explain the process of how to show income when getting a home loan. http://www.youtube.com/watch?v=8O0PNruU4kU



To determine your maximum San Diego mortgage amount, lenders use guidelines called debt-to-income ratios. This is simply the percentage of your monthly income (before taxes) that is used to pay your monthly debts. Because there are two calculations, there is a "front" ratio and a "back" ratio and they are generally written in the following format: 33/38.

The front ratio is the percentage of your monthly income (before taxes) that is used to pay your housing costs, including principal, interest, taxes, insurance, mortgage insurance, and homeowners association fees (when applicable). The back ratio is the same thing, only it also includes your monthly consumer debt. Consumer debt can be car payments, credit card debt, installment loans, and similar related expenses. Auto or life insurance is not considered a debt.

These are just guidelines and they are flexible. If you make a larger down payment or have sterling credit, the guidelines are less rigid. The guidelines also vary according to loan program. FHA guidelines, VA guidelines, and Conventional Loan Guidelines all vary.

Whether you want to buy a high end home or a nice comfortable starter home, Oliver will be more than happy to assist you regardless of your budget.

Oliver Graf

Premium Service, Proven Results!

Understanding the Real Estate Foreclosure Process (3 Steps)

In this market, housing values are declining as unemployment is increasing. For a homeowner, that means that the value of the house will be “upside-down”, and the market value of the home is actually less than the loan amount. Due to high unemployment we have seen a rise of foreclosures, where the bank takes back the property.

Foreclosure is the proceeding in which a bank or other secured creditor sells or repossesses a real property after the Homeowner has failed to comply with an agreement between the lender and the borrower (a mortgage or a deed of trust).

This happens when a property owner stops making their mortgage payments. After consistently missing payments the lender will usually consider the loan in default and begin with the foreclosure proceedings. The Lender at this point has the right to sell the property or even call the loan due.

All short sale / foreclosures have 3 steps in the timeline towards the property being sold.

1. Notice of Default (NOD):
A Notice of Default is a public notice given to the homeowner. In some states the notice is posted on the window or door. When a borrower is in default, or behind in mortgage payments, the lender will seize the home. In California lenders usually do not file an NOD until the homeowner is at least 90 days behind in payments.

2. Notice of Trustee Sale (NOTS):
A Notice of Trustee Sale is a public notice, published in a newspaper communicating a date for auction. This is also generally posted on the door; it will be a minimum of 21 days before the sale takes place.

3. Auction:
An auction is a public place where properties are auctioned to the highest bidder.



To your success,

Oliver Graf
Real Estate Expert

Options for Property Owners struggling with their mortgage

Owners of distressed or “up-side-down” properties are face with many choices on both a financial and emotional level. For the struggling homeowner it is important to understand that when they are in a “distressed” position any of the following could have negative credit / tax consequences.

1) Loan Modification: This is where the homeowner and the lender come to an agreement. A modification can involve reducing the interest rate, deferring payments on the loan, an extension of time to pay back the mortgage, reduction in balance, or a combination of all of these possibilities.
Note: According to the Treasury Department, only 9% of home owners eligible for mortgage modifications have actually had their payments reduced, Only 1 in 50 have had any debt reduced, 78% see their debt increase as a result of late charges / attorney fees / missed payments, 63% of modified loans end up back in default within 1year. So while this option can sound really great, most banks and lenders are not actually helping the majority of people who apply for a loan modification.

2) Foreclosure: Foreclosure is a legal process through which the mortgage holder gains title to the property form a homeowner show has stopped paying their mortgage. After certain time periods, the lenders can foreclosure with or without the consent of the property owner.

3) A deed in lieu: Also known as cash for keys. A deed in lieu can happen when the homeowner offers to “give back” the property to the lender before the foreclosure date. The lender gets the property back without having to go through the entire foreclosure process and agrees to accept title to the property from the homeowner. In exchange they forgive the loan, and can give the homeowner a small amount of money to walk away. The deed in lieu must be agreed to by the lender and the homeowner.

4) Bankruptcy: A legal action generally filed by a homeowner to have debt (s) discharged. An “automatic stay” happens once someone files bankruptcy, “staying” all actions against the person. While petitioning for bankruptcy can cause delays in the foreclosure process. It does not necessarily prevent a foreclosure from eventually occurring.

5) Short Sale: Many people consider this the best option because the lender agrees to let a homeowner sell the property at today’s market values as opposed to what is owed on the mortgage.



What options have you tried / seen work best?



To your success,

Oliver Graf

Real Estate Expert
Follow me on Twitter: Twitter.com/OliverGraf360

Big Industry News affecting Short Sales in California...

Big Industry News affecting Short Sales in California...

Senate Bill 931 was recently passed giving much relief
to sellers who are in a short sale position.

The bill expands existing anti-deficiency laws for first lien
holders regarding loans secured by properties of 1-4
units to short sales and took effect on January 1, 2011.

This is BIG for Sellers, Investors, and Agents!

In part, the new law provides that: "No judgment shall be
rendered for any deficiency under a note secured by a first
deed of trust or first mortgage for a dwelling of not more than
four units, in any case in which the trustor or mortgagor sells
the dwelling for less than the remaining amount of the indebtedness
due at the time of sale with the written consent of the holder
of the first deed of trust or first mortgage."

Simply put, California sellers who are granted a short sale
by a lender holding a first mortgage will now be exempt from
a deficiency judgment.

This is great news for any of your deals your currently working on
and great news for the business over the next year!

One of the most discouraging aspects for a homeowner facing
a short sale is the threat of deficiency they will experience for
selling their property short.

Fortunately, with Senate Bill 931 homeowners will no longer
be responsible for a deficiency on first mortgages in California.

Full text available here:
http://www.leginfo.ca.gov/pub/09-10/bill/sen/sb_0901-0950/sb_931_bill_20100930_chaptered.html

What impact do you think this will have on the market and sellers in general?

To your success,

Oliver Graf

Real Estate Expert

Follow me on Twitter: Twitter.com/OliverGraf360



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How to STOP a Foreclosure Sale: Tips on getting a Foreclosure Sale Date (Notice of Trusee Sale) Postponed

How to STOP a Foreclosure Sale: Tips on getting a Foreclosure Sale Date (Notice of Trusee Sale) Postponed

If you are a Realtor, Investor, or Homeowner who has a property that has an upcoming foreclosure sale date soon, use the following....

Submit everything on the list below and more important is the actions taken after you submit it. Call and note the account multiple times until you get someone who is ready and willing to help you. Leave messages, send emails, and fax them, hit them on every front possible until you receive the postponement. DO NOT “wait for them to get back to you”, keep calling until you confirm

1) URGENT cover letter – Outlining the entire situation
2) Authorization form – All loans
3) Hardship Letter – Highlighted and Emphasizing “Permanent Nature”
4) Listing Agreement and Short Sale Addendum
5) NODPA – Notice of Default Purchase Agreement (Price Filled in)
6) COMPS – Underlined, Circled and Broken down with cover letter
7) HUD – Make sure all names, numbers, and payoffs are correct and settlement agent states “buyers choice”

Complete Every Step in this order… Get all rep names and numbers and save/note them. Start this process a minimum of 3-7 days before the projected sale date.

1. Send a FORMAL STOP SALE request with “Urgent” cover letter to every fax number and email that you have on the file. Resend Entire package above if necessary.

2. Call Negotiator and Supervisor to Note in the account that you are trying to postpone the sale. Also have rep review the account and make sure that all the required postponement items are showing up and ready for review. Stay on the phone with them until they confirm both.

3. Call Foreclosure AND Customer Service department to confirm that the request to post pone was made. If they say they cannot help you, keep calling back until you find someone that will help you.

4. Get the Trustee Sale Number and Trustee contact info one of three ways: 1) Check the NOTS letter, 2) Request Trustee Company Name and Contact Number from Customer Service, or 3) Get it off title.

5. Also, check if the Trustee Sale company is co-owned by the servicer / lender, if so any postponements can be made directly in house via email or phone by the negotiator (stay on the phone with them while they do it).

6. Call and confirm with Trustee Company that the request to postpone was received. If the request was never made, call lender back and escalate the postponement. Keep checking back until confirmed.

7. Go higher up with all parties if necessary. Repeat by phone until all parties confirm the postponement.

Obviously nothing is guaranteed, but using these techniques will help you get a Foreclosure date postponed.

Let us know about your success with these tips

To your success,

Oliver Graf
Real Estate Expert
Follow me on Twitter: Twitter.com/OliverGraf360



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How to Make BIG profits Investing in Tax Liens

How you can Easily Make BIG profits with Tax Liens, One of the HOTEST investing strategies in today’s Real Estate Market...

As we all know, there are several big money investing strategies when it comes to Real Estate.

With rising interest rates and economic hardship, one of the strategies Investors are using to make big money in this market is Tax Lien Certificates. How it works.... if a homeowner falls behind on their property tax payments, which is currently happening all over the country, you have the opportunity to come in and pay off the back taxes (generally for not a lot of money) and make a great return on your money, and if the homeowner is unable to repay, you can acquire the property for pennies on the dollar!

Tax Liens and Tax Liens Certificates

Shockingly, there are certain individuals that do not like to pay their real estate property taxes. (hard to believe, right?).

The non-payment of taxes creates a serious cashflow problem for local governments because they count on the money from property taxes to supply vital services like police, schools, and new roads to their local communities. So when people don’t pay, it puts them in a bind.

Tax Liens solve this problem, by creating a win-win situation. By issuing a tax lien certificate, the agency needing the money from property taxes gets paid right away when you invest in a tax lien. In exchange for paying the taxes you will receive the government’s lien for taxes. Basically, you get the governments claim on the property for the delinquent taxes.

The Government wins because they get money now and can pay their bills, and you as the Investor win because you’re in possession of a certificate that entitles you to certain benefits…

Benefits of Tax Lien Certificates

Why would an investor want to invest in tax liens? Because when you buy a Tax Lien certificate you get some incredible benefits:

1) First, you get paid fantastic interest on your money. Not only is the taxpayer obligated to repay you in full, but on top of that they have to pay you interest on your money. This can be a great source of cash flow because depending on state laws and competition, tax sale investors can make returns anywhere from 15-45%! That’s a GREAT return on your money!!

2) On top of making great cashflow, if the property owner can not repay the money, you have the right to acquire the property for Pennies on the dollar! Since tax lien certificates are secured by real estate, if you as the investor do not get all your money back plus interest and/or penalties you (as a lien holder) have the right to acquire the property. Generally the foreclosure of a real estate tax lien will extinguish all junior liens including mortgages. Thus providing you with free and clear ownership of the property for pennies on the dollar!

This is why so many investors are making a killing in tax lien certificates. They've either got a chance to earn a high rate of interest on their investment (15-45%) or they've got an opportunity to buy a home at a fraction of its market value.

Finding Tax Liens to Invest in

If you're interested in finding tax lien information, here are a few links to do state-wide searches of county or federal tax liens and where you can access online tax lien information - both federal and county - for that state:

California: http://www.sos.ca.gov/business/ucc/

Hawaii: https://boc.ehawaii.gov/docsearch/nameSearch.html;jsessionid=3F5A44F36C8F7E0E7835BFA0A76759EE.kolea

Florida: http://www.sunbiz.org/lienlis.html

To learn how to make serious money investing in Tax Liens, I highly recommend the following course: Make Easy Money in Tax Leins - Click Here!

Sincerely,



Oliver Graf
Real Estate Expert
Follow me on Twitter: Twitter.com/OliverGraf360







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How is my credit affected: Short Sale vs Foreclosure

Credit Impact: Foreclosure vs Short Sale

How is my credit affected: Short Sale vs Foreclosure

In today's market, many homeowners are faced with the decision to try a short sale or just let the property go to foreclosure. Below are some points to think about / share with your clients.
If you have questions on whether missing mortgage payments and selling your property for less than the full amount you owe on it(short sale) will hurt your credit score, the answer is yes. HOWEVER, the credit damage done by a short sale is significantly better than a Foreclosure or Deed in Lieu, the short sale does not show up as long nor is the impact as severe as a property foreclosure.
Take a look at some of the most common questions….


1) When will I be able to purchase another house? (Primary Residence)

Foreclosure: Homeowner is eligible for re-purchasing a primary residence in 5 years

Short Sale: Homeowner is eligible for re-purchasing in 2 years


2) When will I be able to purchase another property? (Investment Property)

Foreclosure: Homeowner is eligible to purchase an investment property after 7 years

Short Sale: Homeowner is eligible to purchase an investment property after 2 years


3) Future loan disclosure: Will I have to disclose what happened with my house?

Foreclosure: On any future 1003(mortgage) loan applications when they ask, “have you ever had a property foreclosed upon…” you will have to mark YES, affecting what programs will be available to you and interest rate that you would qualify for.

Short Sale: There is no similar disclosure required for a short sale


4) How will my Credit Score be affected?

Foreclosure: The credit impact of a foreclosure is MAJOR and can reduce your credit score anywhere from 250-300 points.

Short Sale: Only late/missed payments on the mortgage will show up as derogatory items on the credit report. After the sale is completed the mortgage will be reported as paid or settled. Short Sales can affect your score differently depending on how many payments are missed, sometimes as little as 50 points. A short sale will have an affect on your score for approximately 18-24 months.


5) How will my Credit History be affected?

Foreclosure: A foreclosure will remain as public record on a homeowner’s credit history for 10 years, sometimes even longer.

Short Sale: Short sales are currently NOT reported in the credit history of a credit report. The loan is generally reported as “paid off, settled”




For all the information on Fannie Mae's guidelines, go to...https://www.efanniemae.com/sf/guides/ssg/annltrs/pdf/2008/0816.pdf


If you would like Free information on Short Sales, please contact me anytime.

What are you noticing in today's short sale / foreclosure market?


To your success,

Oliver Graf
Real Estate Expert
Follow me on Twitter: Twitter.com/OliverGraf360



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5 Reasons to Avoid Foreclosure at all costs! - How bad is a Foreclosure?

5 Reasons to Avoid Foreclosure at all costs!

1) Unlike most negative credit items, having a foreclosure on your credit report is virtually impossible to “repair”

2) A homeowner will always have to disclose that they went through foreclosure on all future mortgage loan applications affecting future financing rates and program availability.

3) Major decrease on your credit report affecting a persons ability to get to get a car, personal loans, or credit cards.

4) When filling out rental applications you must disclose that you have went through foreclosure, greatly reducing the number of apartments available for rent.

5) Many Employers run credit checks when applying for a job, foreclosure is one of the main items putting potential new hires in jeopardy of not getting a job.

To your success,

Preston Matix
Real Estate Investor




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Sentate Bill 94 - Does it hurt the chances for getting Loan Modificaion Help?

Sentate Bill 94 - Does it hurt the chances for getting Loan Modificaion Help?

The California Assembly recently passed Senate Bill 94, a bill that aims to protect homeowners from loan modification scammers. However, does it end up having the unintended consequence of eliminating a homeowner’s ability to retain an attorney to help them save their home from foreclosure.

The bill, which included an “urgency clause” and was set to start immediately. SB 94 prevents companies, individuals, and even attorneys… from getting up front fees or any other form of compensation until after the Loan Modification has been completed.

Supporters of the bill say that the state is currently over run with scam artists who take advantage of homeowners desperate to save their homes from foreclosure by charging exorbitant up front fees and then failing to deliver anything of value in return. In their opinion, by making it illegal to charge up front fees, they will be protecting consumers from being scammed.

While there’s no doubt that there have been unscrupulous companies that have taken advantage of homeowners in distress, the number of these “con artists” is unclear. It was time for something to be done, but does SB94 fix or worsen the problem?

Supporters, state that homeowners will still be able to hire attorneys, but that the attorneys will now have to wait until after services have been rendered before being paid for their services. They say that attorneys, just like real estate agents and mortgage brokers, will now only be able to receive compensation after services have been rendered.

People who oppose the bill on the other hand say, “Getting a lender or servicer to agree to a loan modification takes months, sometimes six or nine months. If I worked on behalf of homeowners for six or nine months and then didn’t get paid by a number of them, it wouldn’t be very long before I’d have to close my doors. No lawyer is going to do that kind of work without any security and anyone who thinks they will, simply isn’t familiar with what’s involved. Real estate agents get paid through escrow, where is our security”

Take a look in the future…
California’s ALT-A and Option ARM mortgages are just beginning to re-set, one third of these types of mortgages are still set to adjust in the next 24 months! This will cause homeowners payments to rise, and with almost half of the mortgages in California already underwater, these homeowners will be unable to refinance and foreclosures will increase as a result.


For more information take a look at SB94: http://info.sen.ca.gov/pub/09-10/bill/sen/sb_0051-0100/sb_94_cfa_20090327_152419_sen_comm.html

Does SB 94 end up reducing the number of legitimate firms available for homeowners to turn to? Will SB 94 actually stop con artists from taking advantage of homeowners in distress? Or will it end up only stopping reputable lawyers from helping homeowners?



To your success,

Oliver Graf
Real Estate Expert
Follow me on Twitter: Twitter.com/OliverGraf360



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Foreclosure Properties are selling at a Record Pace - Get them before they are gone!

Good Foreclosure Properties are selling FAST!

Buyers in most areas are finding that bank owned / real-estate owned (REO) properties(homes that the lenders have repossessed and put back on the market)often are selling the day they are listed for sale, sometimes faster. According to the founder of Foreclosure.com, offers on REO properties are coming in immediately after the listing comes on the market, and some homes have been put into contract in less than 90 minutes.

What this means to buyers today…

• On average, inventory on California properties priced less than $300,000—the most-competitive price point for todays foreclosure buyers—have dwindled from a 10-month supply a year ago, to less than a 4 month supply in July, according to the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.)

• Since the inventory levels of homes priced in the lower end of the market are so low, buyers are finding that lenders/sellers are not willing to negotiate on the price. In many instances, lenders/sellers expect the first offer to be the best and highest possible for the buyer, and most are being sold over list price. Since competition is so high, when writing offers be prepared to make the best offer you possibly can upfront in order to be considered.

• Instead of holding onto REOs for the best prices—and paying the property taxes and maintenance and carrying costs—many banks are selling these properties as quickly as possible, according to Foreclosure.com. “In this market, if banks can liquidate them fast, it makes more sense to get them off the books,” said the company’s founder.

• In spite of efforts by lenders and the government to prevent foreclosures, many economists and housing experts are predicting another wave of foreclosures by year’s end, and many of those properties will be offered for a quick sale. According to the U.S. Comptroller of the Currency, 53 percent of loans that were modified in the first half of 2008 fell back into arrears and will most likely end up in foreclosure down the road


If you are serious about buying property while taking advantage of the available tax credits make sure that you and your agent are prepared to work quickly!


What have you noticed from the REO buying experience?


For any help or questions on buying REO’s Please contact me:

Oliver Graf
Real Estate Expert


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California cracks down on "Foreclosure Consultant" Scam Artists

Beware of so called "Foreclosure Consultants"!

With the current state of the economy and the down turn of the Real Estate market its times like these where we see all the opportunistic Sharks coming out of the water! They are preying on desperate homeowners during moments of weakness… charging up front fees… and then NOT Performing the Service they said they said they would perform.

California Foreclosure Consultant Act aims to protect Families from these scam artists

The California Foreclosure Consultant Act Summary.

If a Notice of Default has been recorded against your home, this law will prevent a “foreclosure consultant” (even a real estate licensee) from charging fees in advance(in any form) to help you work out a loan modification or in some other fashion avoid foreclosure.

If a Notice of Default has not been recorded on your home it may be permissible for a real estate broker to assist you in obtaining a loan modification. Although in this narrow circumstance the broker can ask for advance payment they must provide you with a written contract which satisfies certain specific statutory requirements(and is compliant with the local real estate board).

Along with that, the contract must have been previously submitted to the California Department of Real Estate for review and received a “no objection letter” regarding its use. Real estate brokers who do not charge an advance fee for loan modifications or similar services are not required by the DRE to obtain a "no objection letter." However, their work must be completed before they’re paid.

You should know that there are agencies, attorneys, and real estate licensees who will assist you with your loan workout for a fee payable after the work is completed.

Attorneys licensed in California rendering services in the course of their legal practice are exempt from this law.

Definitions for Foreclosure Consultants

This Act defines a "Foreclosure Consultant” as anyone who offers for compensation to perform any service which "the person will in any manner do any of the following."

• Postpone or stop the foreclosure sale
• Obtain any forbearance
• Assist in the reinstatement of the loan
• Obtain extensions to reinstate the loan
• Obtain any waiver of an acceleration clause
• Save the residence from foreclosure
• Avoid or repair adverse credit reports resulting from a foreclosure sale
• To assist in recovering residual proceeds from the foreclosure sale of the owner’s residence.

Right to Cancel must be specified-

Under this section the owner is given 3 business days to cancel the contract and specifies the method of notice of cancellation.


Once operative the new law will require a Foreclosure Consultant to register with the Department of Justice and maintain a surety bond of $100,000.00. The Department of Justice will have the power to refuse to issue, or to revoke a Foreclosure Consultant’s registration. A violation of these provisions will be a crime. These changes will effectively give the Department of Justice oversight over California Foreclosure Consultants.

If you or someone you know is, or is about to be, in default on their home mortgage, and are approached by an individual or company that is offering to, in some fashion, “save the home from foreclosure” be sure they are reputable and only get paid when they perform!

What programs have you seen out there that this will affect?


When we are performing out Short Sale service for homeowners we make sure that we NEVER charge any fees! The goal is to help as many families as possible, NOT take advantage of them.


For any additional questions contact or visit:
http://www.realtytrac.com/interior/ccsection2945.htm


To your success,

Oliver Graf
Real Estate Expert


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New law extending the foreclosure process by 90 days!

BIG HELP FOR STRUGGLING HOMEOWNERS!

90-DAY EXTENSION TO FORECLOSURE PROCESS
California Foreclosure Prevention Act: Mortgage Lenders foreclosing on certain loans are prohibited from giving a notice of sale until the lapse of at least 3 months plus 90 days after the filing of the notice of default A loan servicer can obtain an exemption from this requirement by demonstrating that it has comprehensive loan modification options.

The goal of the California Foreclosure Prevention Act is to release the pressure on foreclosures and their severely negative consequences. Aiming to provide additional time for lenders to work out a short sale or loan modification with borrowers while also providing incentive for lenders to establish better short sale and loan modification programs.
This bill, which was enacted into law on February 20, 2009 will stay in effect only until January 1, 2011
With the current time-line, a lender who files a notice of default has to wait at least 3 months before giving a notice of sale. The new law extends that 3-month period by an additional 90 days.
Along with that in the preexisting law, foreclosure process would take a minimum of 4 months from the filing of a notice of default until the final trustee’s sale.

Under the new law, that period extended by 90 more days for a total of about 7 months.


Is this positive or negative? How do you think that this will affect the market?



For any help with Property Foreclosure questions contact:

Oliver Graf
Real Estate Expert

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Foreclosure Process Time Line

General Foreclosure Timeline

The time line below is a typical California non-judicial foreclosure. The foreclosure process does not begin until the lender feels they have tried all avenues for fixing the payment delinquency. Normally, this will happen after the borrower has missed 3 monthly mortgage payments. The lender will contact the borrower several times prior to beginning the foreclosure process .The official foreclosure process then begins by the lender contacting a Trustee and instructing them to file a Notice of Default.


Day 1 - Notice Of Default recorded with County Recorder

The first 10 business days - Trustee mails Notice of default to borrower(s) with recording the date

1st month- Lender Mails Notice of Default to borrower again

90 days after Notice of Default - Set Sale Date, time and location Unless a bankruptcy has been filed, or other event occurs that holds the timeline( At this point Short sale is a great last resort option http://www.shortsale2020.com )

25 days before Sale Date- Send Notice Of Sale to IRS (if applicable)

20 days before Sale Date- Begin publishing Notice Of Sale in an adjudicated newspaper. (must run for 3 consecutive weeks).

20 days before Sale Date- Post the Notice of Sale on the property itself. Most services will photograph the posting location for your records.

20 days before Sale Date- Mail Notice of Sale to borrower and required parties.

14 days prior to Sale Date- Record Notice of Sale with county recorder's office

5 days prior to Sale Date- The borrower's right to reinstate expires.

On sale Date- The property is sold to high bidder or reverts back to lender

For any help with Property Foreclosure questions contact:

Oliver Graf
Real Estate Expert


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Real Estate Short Sale
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Short Sales- A better way to sell your home and avoid Forclosure!

Short Sales Are Helping Countless Homeowners...

In todays Market nearly 20% (9 million people) of homeowners across the country- are "upside down" on their mortgages. Meaning, they owe more on their mortgage balance than their properties are actually worth.

Some people would predict that these people will walk away and accept loosing their home to foreclosure.... But there is light at the end of the tunnel! A lot of homeowners are starting to understand the benefits of a Short Sale rather than a foreclosure. Both serve the homeowner the same in the sense that they will be a walking away from a depreciating asset, but the Short Sale holds a lot more benefits to the homeowner:

Credit Impact: For starters a Short Sale will affect a person’s credit significantly less than a foreclosure. Meaning that someone with a Short Sale in their credit is a lot more likely to qualify for a new mortgage in as little as 12 months, whereas a foreclosure and/or bankruptcy will haunt someone for up to 7 years.

Stress: On top of the credit implications nobody ever talks about the effect on homeowner’s moral when they are going through a foreclosure. It’s never a good feeling for someone that is just watching the bank take their homes away. With a Short Sale, the homeowner will have more time to make moving preparations.

Homeowner Help: With a Short Sale the homeowner is completely involved in the process, making their own decisions with the help and guidance of a Short Sale Professional. The Short Sale specialist will handle all communications with the lender, as well as market and sell the property with the help of an Real Estate Agent. This allows the homeowner a great alternative to foreclosure or bankruptcy!

Homeowners that are upside down on their property or facing foreclosure should contact a Short Sale Specialist once they have missed at least one mortgage payment. You can contact Short Sale Pros who offers a short sale service at no cost at no cost to the homeowner. People will contact short sale professionals since very few Realtors have the skills to process complex short sale transactions, and some short sale companies can charge thousands to process a short sale.



San Diego school teacher Marlen Sepulveda stated, "When my adjustable rate mortgage increased and my salary was jeopardized due to economic conditions, I couldn't afford my mortgage any more and I didn't know where to turn. I contacted the Short Sale Pros and they answered all my questions and negotiated my short sale, all at no cost to me."



Remember…You have options if you need to sell or are facing foreclosure! Don’t just let the bank take your home!


Sam Khorramian
Success Expert


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Real Estate Short Sale
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Hardest Hit Housing Market

Worst Market- California Central Valley

12-month change in home values:
Merced: -42.3
Stockton: -40
Salinas: -38.7
Modesto: -37.9
Riverside: -36.8
Vallejo: -34.5

The market hit hardest by the housing bubble is the Central Valley in California, where aggressive development and price hiking has yielded more homes than jobs. Now many homeowners owe more than their house is worth and are being forced into default.

Still, it's not all doom and gloom for the California housing market. The drop in home values has created an affordable market for first-time home buyers. And, on average, monthly sales have almost tripled from last year. Although the Valley has seen the worst of the crash, it may well be one of the first areas to recover.

To your success,

Oliver Graf
Real Estate Expert




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Temporary Halt to Foreclosures and Evictions

Introduction

Fannie Mae is committed to assisting homeowners impacted by the national housing crisis and is taking additional steps aimed at keeping families in their homes. With the anticipated announcement by the Obama Administration of a foreclosure prevention and loan modification program, Fannie Mae is again instituting a temporary halt to all foreclosure sales on occupied single-family properties scheduled to occur from February 17 through March 6, 2009. The temporary foreclosure halt will apply to portfolio mortgages and MBS pool mortgages owned or guaranteed by Fannie Mae and to foreclosures of homes that are already in process. Fannie Mae is also extending its existing temporary halt of all eviction proceedings through March 6, 2009.

Foreclosures

The temporary foreclosure halt applies to all occupied single-family properties secured by conventional mortgage loans that have scheduled foreclosure sale dates between February 17 and March 6, 2009. Mortgages insured or guaranteed by a federal government agency are not eligible for the temporary foreclosure halt. Foreclosure sales may proceed on vacant properties.

This initiative does not affect mortgage loans that have not yet been referred to foreclosure. Servicers and foreclosure attorneys (or trustees) should follow the foreclosure policy guidance contained in the Fannie Mae Servicing Guide for all loans previously referred and for all new referrals as long as such actions do not result in foreclosure sales being scheduled during the halt period.

During this temporary halt period servicers will have additional time to work with borrowers facing foreclosure using Fannie Mae’s available foreclosure prevention options, including the Streamlined Modification Program announced, Introduction of the Streamlined Modification Program on December 12, 2008.

What do you think is the best way to deal with all the foreclosure inventory?

To your success,

Oliver Graf
Real Estate Expert
Follow me on Twitter: Twitter.com/OliverGraf360



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Top 10 Worst Metro Regions For Foreclosures toward the end of 2008

The foreclosure carnage while not sole contained to Florida, California, Nevada, and Arizona, is definitely concentrated there. Of the top 20 metro regions with the worst foreclosure percentage, only Detroit and Atlanta are outside of these 4 states.

22 cities have foreclosure rates over 1 percent, 45 have a foreclosure rate over a half a percent. So looking at the big picture, the foreclosure crisis is contained to a subsection of the country that had their homes priced too high by speculators.

With a 12 percent drop in foreclosures this past month we may have rode the worst of this foreclosure wave out. Now it is important to see how the economy will affect housing inventory. If we go into a bad recession then we may be facing another wave of foreclosure in the near future.

Top 10 Worst Metro Regions For Foreclosures toward the end of 2008

1. Stockton, CA 3.69% of homes in foreclosure
2. Las Vegas, NV 3.48%
3. Riverside / San Bernardino, CA 3.09%
4. Bakersfield, CA 2.58%
5. Fort Lauderdale, FL 2.30%
6. Phoenix / Mesa AZ 2.11%
7. Sacramento, CA 1.97%
8. Orlando, FL 1.87%
9. Fresno, CA 1.68%
10. Oakland, CA 1.64%

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