New York Foreclosures

The Foreclosure Dark Clouds Result in a Silver Lining of Potential




Author: Harry A Connor Jr

During the course of the previous ten years, the United States has been living a champagne bottle level of comfort on a light beer affordability. While unwisely borrowing currency to make up for the tax reductions for the rich, and pay for unfunded conflicts and mortgage lender bailouts, the financial obligation strain has increased the inevitable fiscal break down. This is substantiated by the lack of employment, and high property foreclosure figures.
Olivier Blanchard, the IMF's chief economist, said, "Long-term unemployment is alarmingly high: in the US, half the unemployed have been out of work for over six months, something we have not seen since the Great Depression.
We see the perfect storm brewing with rising supply and falling demand,” said Ivy Zelman, chief executive of basic research firm Zelman & Associates.
Experts at Barclays Capital approximate which experts claim some four million loans are in some phase of foreclosure.
In California, where foreclosures continue being one of the the strongest in the U.S. The most recent California real estate market concerns are what are acknowledged as 'shadow foreclosures'. These are family homes that are presently in the foreclosure process brought on by lenders, which may perhaps even involve places of residence on the edge of property foreclosure, and which ultimately confuse the marketplace.
Considering the fact that mortgage lenders have possession of the properties outright, shadow foreclosures are not necessarily a part of the real estate inventory purchasable for the general public sale. Banks propose to in due course sell these tucked away homes, and - subsequently the concept 'shadow' - which suggests they are not at this moment available for purchase, but can be forecast to flood into the marketplace in the future, in all likelihood depressing home prices all the more.
A new round of depressed residential price ranges might drive more home-owners, who are presently overdue on a installment payment or two, into a foreclosure.
For the majority of California citizens the housing and mortgage loan downturn is nonetheless very real. The longer-term impression is similarly gloomy. Nationally, it is more likely additional struggles are now emerging on the horizon.
In Arizona, representatives exclaim foreclosure litigation cases have tripled in the this past year (2008-9), and loan agreement differences are way up 77 percent over the preceding two years.
Real estate foreclosures in Southwest Florida have hurt hundreds of households and have decimated complete local communities.
Iam seeing the ripple effects that destroy the family structure,Judge Jackman-Brown said.
A couple of specific movements which have been on the upswing in the foreclosure process across the United States could stretch, and heighten this dilemma in the meantime, and in the years to come.
In one occurrence, a lot more judges are ruling in opposition to loan providers and occasionally erasing mortgage financial obligations, or invalidating foreclosure sales, simply because mortgage loan companies neglect to present the real paperwork. In some cases, the mortgage lenders are viewed as to have harmed homeowners by other methods.
In the other trend, prime borrowers are finding themselves in “underwater” mortgages, or negative equity, and are increasingly, just walking away from their properties.
A lawyer for the Jewish Association for Services for the Aged, Hilary J. Bauer, who represents homeowners confronting foreclosure, said; “Until you’re standing amidst 40 people who are worried about losing their homes, you can’t really appreciate how significant the whole downturn was.”
Dennis Nolte, an LPL rep at Partners Federal Credit Union in Orlando, Fla. says. "People need to vent and then they need to focus on what they can realistically do."
"The government is throwing everything at the market but the kitchen sink," said Peter Schiff, president of Euro pacific Capital. "It can't prop up housing markets forever."
"Every dark cloud has a silver lining," or so they say. What follows might be the lining in this dark cloud. It is titled a Tax Deed Sale.
Earlier this year Richmond County, Georgia recouped tons of tax dollars in back taxes during a tax deed sale of properties whose possessors were delinquent on taxes from just a few years past. Buyers were passionate by the cheap price ranges and planned to generate a very good property investment.
Ben Bynum, a tax deed investor said, "I like that you can determine what you pay for a property," he said. "It's based on what you think the property is worth."
Ultimately, a large number of these kind of foreclosure properties and assets show up in the 'too hard basket' and get involved in a tax deed sale. When you hit bottom, put money into the 'bottom of the market'.

What to do if your facing a foreclosure?

With today's economics, hundreds of thousands of people and this number continues to increase are finding themselves with the situation of foreclosure. Foreclosures don't happen just to people that take risky loans or are over-leveraged, it is happening to people who are getting divorced, needing to relocate for a job, having health issues, and lots of other reasons. No matter what the reason is for falling behind on your mortgage, knowing what to do next is really important. Too often, many people who face foreclosure do nothing. You have to consider what should be done and who you should contact.
If you find yourself possibly facing foreclosure, here are some steps to help you.
Start Now: Stop panicking and look at your finances: look at your income, look at your expenses, and any liquid cash that you may have. The sooner you are honest about your financial situation, the better.
1. Get Counseling: Many agencies offer FREE advice to homeowners who need it. The Department of Housing and Urban Development (HUD) has a list of certified counselors on its website and Neighbor Works has a toll free number (1-888-995-HOPE) that refers you to people in your area.
Also, when dealing with your counselor, get organized. Have the following information below will help your counselor get you better and faster service:
• Two months worth of pay stubs
• Any communication with your lender
• Homeowner's insurance policy
• Foreclosure notices
• Two most recent mortgage statements
• Two most recent tax returns for those listed on mortgage
• Proof of any income
• All bank statement for previous 2 months
2. Talk with your Lender: In reality, your lender does not want your property back. It is not profitable to them. Most lenders are willing to work with homeowners. It will take a lot of persistence on your behalf. You will need to be honest with the lender and let them know that you are not going to be able to make it and if they can suspend the payment or lessen the payment. Consider a Short Sale and contact a real estate agent.

3. Get Creative: Think outside the box. A lot of people are taking in boarders and renting out rooms. Some are renting out their whole house and living with family members until they get back on their feet. Some people are considering a second job that is different from their first job. Others have sold one of their cars and now are taking public transportation
You should also ask yourself if you belong in the house. Did you go over your head when you purchased the house because of the certain loans that were offered at the time?
Foreclosure can be frustrating and draining, but if you seek help and consider the above tips you will be less stress and ready to get back on your feet.  Before the bank goes to the foreclosure you should contact them about negotiating a short sale for your property.  This would also be a good time to consult a real estate agent who has experience with short sales. 


For more assistance contact me at queensshortsales@gmail.com  

Credit Repair companies. Are they helpful?

Most Credit Repair Companies Are Scams

by Brandon Cornett

It is particularly despicable when companies prey on people who are in financial distress. Unfortunately, there is no shortage of such companies. Just take a look at the mortgage industry and the current economic recession we are in. With so many people facing foreclosure on their homes, there has been a huge rise in foreclosure prevention scams and similar rip-offs.
For a long time, there has been a predatory side of the credit industry as well. In particular, I’m talking about credit repair companies and the bold (and often false) promises they make.

You Can Fix Your Own Credit Reports

Let me start with the absolute truth at the core of my argument. There is no company on the planet that has special powers over your credit report. The only thing these “repair” companies can do is help you make corrections to your credit report, which is something you can easily do for yourself. In fact, there are hundreds of articles online (from reputable sources) that can help you make such corrections. And you can do it for free — without spending a dime on anything.

Credit Repair Scams Tracked by the FTC

A lot of the so-called credit repair companies will make bold promises about what they can do, and they will make it seem as if they have special access to the reporting bureaus. This is simply not the case. How do I know this? Because the FTC investigates more complaints against this industry than just about any other industry. Visit the FTC website and do a search for credit repair, and you’ll quickly see what I mean.
My best advice is to scratch the word “repair” from your credit dictionary, and replace it with the word “counseling.” Better yet, replace it with the phrase nonprofit counseling, because there are plenty of these services available all over the United States. A nonprofit credit counselor will help you make corrections to your credit report and otherwise improve your financial situation, and they will do it for little or no cost.
A credit repair company, on the other hand, will generally ask for upfront fees because they know they cannot deliver on their bold promises. Consider yourself warned and educated on this dirty little secret of the credit industry.

© 2009, Cornett Communications.
About the Author: Brandon Cornett is a consumer advocate and publisher of the Home Buying Institute. You may visit the author's website at www.HomeBuyingInstitute.com to learn more about this topic

Load Modification Q&A

A Loan Modification is a permanent change in one or more of the terms of a mortgagor's loan, allowing  the loan to be reinstated, and results in a payment the mortgagor can afford. Question 1: In utilizing the Loan Modification option to bring an asset current, can the mortgagee include all fees and corporate advances? Answer: Mortgagee Letter 2008-21 states in part: Legal fees and related foreclosure costs for work actually completed and applicable to the current default episode may be capitalized into the modified principal balance. Question 2: May a mortgagee perform an interior inspection of the property if they have concerns about property condition? Answer: Yes, per Mortgagee Letter 2000-05, page 20, the mortgagee may conduct any review it deems necessary to verify that the property has no physical conditions which adversely impact the mortgagor's continued ability to support the modified mortgage payment. Question 3: Can a mortgagee include late charges in the Loan Modification? Answer: Mortgagee Letter 2008-21 states that accrued late charges should be waived by the mortgagee at the time of the Loan Modification. Question 4: When utilizing a Loan Modification option, can a mortgagee capitalize an escrow advance for Homeowner's Association fees? Answer: HUD Handbook 4330.1 REV-5, Paragraph 2-1, Section B, Escrow Obligations states: Mortgagees must also escrow funds for those items which, if not paid, would create liens on the property positioned ahead of the FHA-insured mortgage. Question 5: Is there a new basis interest rate which mortgagees may assess when completing a Loan Modification? Answer: Yes, Mortgagee Letter 2009-35 states that the Mortgagee shall reduce the Loan Modification note rate to the current Market Rate. Please refer to Mortgagee Letter 2009-35 for more details. Question 6: Are mortgagees required to re-amortize the total amount due over 360 month period? Answer: Yes, per Mortgagee Letter 2009-35, the Mortgagee must re-amortize the total unpaid amount due over a 360 month period from the due date of the first installment required under the modified mortgage. Question 7: What date is utilized when determining the correct interest rate for a Loan Modification? Answer: The date the Mortgagee approves the Loan Modification (all verification completed and servicing notes documented, reported to SFDMS) is the date that Mortgagees are to use in determining the interest rate. Question 8: Will HUD subordinate a Partial Claim, should a mortgagor subsequently default and qualify for a Loan Modification? Answer: If a mortgagor subsequently defaults and qualifies for a Loan Modification, HUD will subordinate the Partial Claim. Question 9: Are mortgagees required to perform an escrow analysis when completing a Loan Modification? Answer: Yes, mortgagees are to perform a retroactive escrow analysis at the time the Loan Modification to ensure that the delinquent payments being capitalized reflect the actual escrow requirements required for those months capitalized. Question 10: Can a mortgagee qualify an asset for the Loan Modification option when the mortgagor is unemployed, the spouse is employed, but the spouse name is not on the mortgage? Answer: Based upon this scenario, the mortgagee should conduct a financial review of the household income and expenses to determine if surplus income is sufficient to meet the new modified mortgage payment, but insufficient to pay back the arrears. Once this process has been completed the mortgagee should then consult with their legal counsel to determine if the asset is eligible for a Loan Modification since the spouse is not on the original mortgage.