You CAN stay in your home if you are successful!

People ask me all the  time; Do you have to be turned down for a loan mod before you can Short Sale your home?

Well, the aswer is an emphatic NO! but why wouldn’t you try? Even though less than 5% are successful; you’ve GOT to try to modify your loan and  and stay in your home right?

The next question is always: who can help me with loan modification in Folsom? I am always happy to… and I get the request so often now, I have even written a report and and Easy Do it yourself Loan Mod System…

Finally! Folsom Loan Modification Help!

Folsom’s Multi-Certified Pre-Foreclosure Expert and Short Sale Expert Forth Hoyt; and Home Retention Advocate, along with Foreclosure Options Experts At Wereheretohelp.org and Folsom Keller Williams have written and recently compiled an in-depth loan modification packet to help Folsom Homeowners keep their homes.

This is a brand new report that includes step by step loan modification instructions and “Folsom do it yourself Loan Mod Kit” available to Folsom Residents who are upside down for free!

Read The Entire Story And Order Your Loan Mod Kit Today!

Cuccessful Loan Modifications are difficult

What is your successful Natomas loan modification going to look like?

Loan modification, the systematic alteration of contractual mortgage loan agreements, has been around in the United States for over 70 years.  During the Great Depression many loan mod programs were sponsored and executed at the state level in an effort to reduce levels of loan foreclosures.

Natomas Foreclosure Options Expert, Certified Foreclosure And Short Sale Specialist and Successful Short Sale Agent Forth Hoyt Provides Information on Successfully Negotiating a Loan Modification With your Bank…  and gives access to a free report entitled “Your Guide To A Successful Loan Mod”

It uncovers the truth about loan mod’s: only a modification that provides a long term, sustainable solution can be considered a success…

Here is just a part of Section One:

You, Your Family and your Mortgage

Begin With The End In Mind
What is your goal? What’s the target? What exactly do you want/need in order for you to make it? Know your outcome! 

What is your successful loan modification going to look like?

Take a hard, realistic look at your situation and ask yourself  what changes your bank would need to make in order for you to manage your payment. Keep in mind that if you can get the changes you need in the form of an affordable payment, the duration of the payment adjustment must provide you enough time to get back on firm financial footing. Otherwise, you will be right back in a bad situation before you know it. So you must have a goal: what changes do you need and how long do you need them? What Will your Secessful Loan Mod Look Like? How Will You Know If Your Loan Mod Is A Success?

Win-Win or No Deal
These decisions and clearly defined expectations of your outcome are not easy to make, but they are necessary. By knowing the minimum modification, the minimum amount of time you will settle for, you can move forward knowing that anything less is a waste of time. When you what you want and need you are on your way towards recovery. Just remember, treat it like a business decision. Be realistic, know what you need, and don’t settle for a solution that is not really a solution.

You are NOT the Villain Here
American families are facing more economic difficulty than at any time in the past 70 years. Not since the Great Depression have there been so many families facing serious many financial obstacles.

A large part of the problem was brought on by the financial market excesses of the first six years of the 21st century (2001 thru 2006). Real estate values reached dizzying levels, leading American Families to feel intoxicated by the “wealth effect.” And, everyone wanted in. As prices went up, the mortgage industry came up with new and creative loan programs that made it possible to buy homes that people really couldn’t afford. Make no mistake, these programs were not designed for the common good, these creative loan products were not driven by the desire to increase homeownership for the benefit of society. No, the loans were originated, packaged, sold, chopped up, repackaged and sold again with one thing in mind — quick and substantial profit.

It’s true, many American families may have made choices that were not as responsible as they should have been.  However if the go-go loans had never been created and the call centers and telemarketers pushing the toxic loans never existed, most of those same American families would have continued to live within their means. But instead, the entire mortgage, real estate and banking and investing industries pushed these programs: from loan officers, appraisers, real estate agents and brokers, mortgage bankers, underwriters, Wall Street entrepreneurs and many others all played their parts.

Much of the mortgage mess we are dealing with now is a direct result of a mortgage industry that during those first several years of this century to completely abdicated their responsibility to verify a borrower’s ability to pay when making a mortgage loan.

Need how to loan mod How-To’s?Looking for someone to give you the how to loan mod step-by-step? Continue reading or order your Loan Modification How To’s Here: Guide to A Successful Loan Mod

More Questions on your Particular Situation?

Contact us today at Forth Hoyt’s Sacramento Short Sale Center

Or find out here about New Government Foreclosure Prevention Program Eligibility- Which Programs Do You Qualify For?

I am not an attorney, and you should talk to one!! Call for a referral!

Contributed by Wereheretohelp.org

Sacramento Foreclosure Specialist Reports:

Foreclosures Will Continue

I was Researching Sacramento area HAMP loan mod success rates this nmorning and came across this startling article in DSNews. It looks as if all the good news the Obama powered media has been pumping out is a little off center.  Kinda Scary!

Home loan delinquency rates in the United States have now surpassed 10 percent, Lender Processing Services (LPS) reported this week.When you factor in homes already in the foreclosure process, the total rate of noncurrent mortgages sits at 13.3 percent, according to the data in the Florida-based company’s national loan-level database.This rate indicates that more than 7.2 million mortgage loans are now behind on payments, LPS explained, with another one million properties already taken back by banks and in REO status.LPS’ January 2010 Mortgage Monitor report, shows that within the population of loans that were current at the end of 2008, the percent of “new” serious delinquencies is 4.64 percent – higher than any other year analyzed. Of loans that were current as of December 31, 2008, by December 2009 there were 2.3 million new loans that were considered seriously delinquent.

Contact us today… Sacramento Short Sale Help can snswer your questions.

Seemingly less-risky, prime mortgages continue to loom large as the industry’s big, pink elephant. Prime loans, including agency, non-agency, and jumbo, have experienced deterioration at a worse pace than subprime, Federal Housing Administration (FHA) insured mortgages, and all loans as a whole, LPS said. The company’s analysis shows that within the prime loans category, those with unpaid principal balances between $417,000 and $600,000 have performed the worst. The Mortgage Monitor report also indicates that 2009 vintage loans are performing better than loans from any of the prior five years and have been steadily improving as pools of loans grow larger. This improvement is attributed to more restrictive underwriting guidelines, but that also means “liquidity is still not available where it is needed most,” LPS said.The company’s analysis shows that states with most noncurrent loans are: Florida, Nevada, Mississippi, Arizona, Georgia, California, Indiana, Michigan, Illinois, and Ohio.Those with the fewest include: North Dakota, South Dakota, Alaska, Wyoming, Montana, Nebraska, Vermont, Colorado, Oregon, and Washington.

More Questions? Sacramento Short Sale Help is here when you need us! 

Tags: Sacramento+area+HAMP+loan+mod+success, National+Mortgage+Delinquency+Rate, foreclosure+process, noncurrent+mortgages

Folsom Short Sales will definately be more popular in some Neighborhoods. Folsom homes that were built and sold in 2005 and 2006 will probably be where you are going to see the most short sales in Folsom.

You see, new home builders used negative am, Adjustable rate Mortgages and Pick-a-pay programs to get the most money possible for their homes.  These artificially low payments allowed buyers who could normally not afford these larger homes buy them.

Now, amidst a huge market value decline and the worst economy in decades, those loans are coming unlocked.

Most of these homeowners will qualify for some type of loan modification program, may at least get the adjustable rate changed to a fixed.  Some will have to extend the mortgage out to 40 or 45 years, because most secondary investors who own the note are not interested in any kind of principle reduction.

Many will go into the new HAMP program, a ninety day trial modification where after a successful trial period the homeowner applies for a long term modification. The short sale will be the best solution for those who do not qualify or choose not to do a modification.

The administration is urging participating servicers to follow through with short sales as an alternative to foreclosure for those homeowners that don’t qualify for a reworked mortgage under the Home Affordable Modification Program (HAMP).

Under the terms of the new program, once a servicer determines a homeowner does not qualify for a modification, the servicer has a 30-day window in which the borrower must be considered for the HAFA program. Each participating servicer is required to develop a written policy, consistent with investor guidelines, that describes the basis on which the servicer will offer the HAFA program to borrowers

Sacramento Foreclosure Solutions Expert Report

Sacramento Short Sales now 21.5% of Market

Well First of all, Let’s just quickly define short sales:

A real estate short sale is a sale of property in which the sale proceeds fall short of the balance owed on the property’s loan or loans.

Sacramento’s Real Estate Market has recently been a perfect storm for short sales.

There have always been short-sales. Since the beginning of real estate.  Market prices go up and market prices go down, and when a homeowner has to sell when they are upside-down… well, you get the picture.

Homeowners can have many reasons to sell their home in a Short Sale; any time there is a reduction in market value along with the need for relocation, sickness, job loss, death or divorce, there is no other way besides just letting the bank take it back.  So Short Sales are the best solution to keep a homeowner out of foreclosure when it is clear they cannot keep the home…

But in this economy, Sacramento shortsales most often occur when a homeowner just cannot pay the loan payment on their property. With Sacramento unemployment at 12.3% and a 41 month long drop in median home prices that has taken over 55% off  the 2005 highs in Sacramento County.  Sacramento Short Sales are now over 20% of the market!

Short sales in Sacramento have become a popular pre-foreclosure option to keep homeowners out of foreclousure, when loan modifications just don’t provide a solution to foreclosure.

This just in from Chris McLaughin:

Treasury officials, in the first comprehensive tally of permanent modifications made, say that loan servicers have converted 31,382 people from trial adjustments to long-term assistance as of Nov. 30, but 30,650 people in trial modifications have been denied.  That means that only about 4% of troubled borrowers have received long-term help under the Obama administration’s foreclosure prevention program.  A nearly equal number of trial modifications have been denied permanent assistance, the report showed. The reasons include not making monthly payments on time, not submitting all the necessary paperwork and not qualifying for reasons such as insufficient income. 

Homeowners claim that banks keep losing paperwork, but banks claim they often don’t get it in the first place.  Around 375,000 people should be eligible to receive long-term relief by year’s end, but only one-third of homeowners who have made at least three trial payments have submitted all the needed forms, Treasury officials say, and some 20% have not submitted any paperwork at all. Banks and government agencies have hired outside companies to knock on borrowers’ doors to assist them with completing the paperwork.  None of this addresses the real problems, of course:  a lot of people are underwater and don’t see the point of making payments, and quite a few know they won’t qualify once their real income comes to light.

Along the same lines is This Article From DSNews:

…The Coming ARM Storm

First it was the sub-prime market and now experts agree, adjustable rate mortgages combined with rising unemployment and falling property values could create another economic storm capable of ravaging the weak economic recovery. Here’s a quick breakdown of the ARM Storm-Tracker for those savvy short sale investors to beginning their planning:

Resetting Rates: Current interest rates are at or near historic lows with 30 year fixed mortgages below 5 percent while ARM’s are likely to readjust and drive the cost of monthly mortgage payments to double their former payments. Unfortunately, many current ARM holders do not qualify for refinancing due to changes in employment status, high loan to value ratios and increased debt to income percentages.

Evaporating Equity: Not only did millions of Americans take out Adjustable rate mortgages but they built additions and over-improved their homes based upon loans. As home values fell, so did the equity reserves required to refinance their ARM mortgages. Whether it was a first mortgage with minimal down payment or a second (and even third) mortgage, lower property values have all but erased excess equity from a large number of buyers.

Cheaper to Walk: Many homeowners are finding it less expensive to simply walk away from rapidly rising mortgage, rent for awhile then repurchase. According to industry experts, a significant number of homeowners are capable of making the mortgage payment but simply don’t desire to do so given the cost of purchasing the same home after foreclosure. Current homeowners are eligible for FHA loans in as few as three years after default – creating an inverse incentive to continuing paying on a property worth tens (or even hundreds) of thousands dollars less than the existing mortgage.

Renting an Increased Option: Throughout the nation lenders are getting creative in order to reduce the inflow of defaulting properties on their portfolio; one of the more popular options among existing homeowners is the ability to rent your current property for a specified period of time.

ReFi with an ARM? It’s true, the FHA has a 3.87 five year adjustable rate mortgage option designed to help keep payments affordable. Unfortunately, it may simply delay the pain until interest rates continue to rise later. However, with a 2 percent cap on each adjustment/rate increase, it could conceivably buy time for those in unusual short term situations such as temporary illness, job loss of other large expenses. It also has the benefit of “buying time” for the banks and lenders who are in no hurry to acquire even more properties given the current backlog of non-performing properties in their portfolio.

What is a savvy short sale investor to do? Get ready for the coming wave of ARM properties to hit the market. Be sure your credit is in place and position yourself to solve problems for both homeowners and lenders in need of a new start.
See you  at the top!

Another article courtesy Chris McLaughlin

There are so many home retention/foreclosure avoidance programs with acronyms now, it’s hared to keep them all strait…

There’s the MHA program , the HAMP program,  the HFHA program, the NPV test, the HARP program, the HAFA program and now, the newest acronym and finally one that might make some difference for homeowners who need to sell; the HAFFAP program or Home Affordable Foreclosure Alternatives Program.

An article from DSNews included thisbreakdown of the program:

To entice servicers to accept a sale on defaulted properties for less than the outstanding mortgage balance, Treasury is offering incentive payments of $1,000 per completed short sale. Servicers will also receive $1,000 for each deed-in-lieu of foreclosure.

Subordinate lien holders will be paid to release their claims on defaulted properties, up to $3,000 of the short sale proceeds as long as the primary investor agrees to share the earnings, and for this concession, the investor will also receive up to $1,000 from the Treasury. For those second lien holders who want more than the $3,000 cap to relinquish their stakes, the Treasury said they can pursue a short sale outside of the federal program.

SACRAMENTO /California Newswire/ — Assemblymember Pedro Nava (D-Santa Barbra), Chair of the Assembly Banking & Finance Committee, led the second in a series of informational hearings today to examine California’s foreclosure crisis, the state’s current loan modification programs, and methods by which the state could improve procedures to help struggling California homeowners. Nava was joined by Nevada Assembly Speaker Barbara Buckley, housing experts, representatives from the banking and mortgage industry, and state and local non-profit housing and consumer organizations.

“This crisis has devastated thousands of California families and communities. It’s time to take a new approach to help families remain in their homes. Today’s hearing provided more evidence that our existing loan modification programs have been ineffective and the number of families benefiting from them is minimal,” said Assemblymember Nava. “I will continue to work with all the stakeholders who testified today to come up with viable and effective solutions, including the establishment of a loan mediation program.”

California continues to have the third highest foreclosure rate in the nation, with one in every 144 homes in some stage of the foreclosure process. While these numbers have decreased from last year, 400,000 were nonetheless foreclosed on in California in 2009. Thus far, federal and state efforts to encourage banks and servicers to modify borrowers’ loans have largely been on a voluntary basis, and those who need help are subsequently falling through the cracks. California needs a new direction and the implementation of a loan mediation program may be one of the solutions.

Assembly Bill 1588, sponsored by Los Angeles Mayor Antonio Villaraigosa, was recently introduced by Assemblymember Nava and California Assembly Speaker Karen Bass. The measure will establish a monitored mediation program to help homeowners and lenders reach sustainable loan modifications. Under AB 1588, if attempts at loan modification fail, a reasonable transition plan would be established by the borrower and lender. This type of mediation program has proven successful in numerous other states and cities.

“Families working to turn around the economy need the financial system to work for them to avoid foreclosure,” Assembly Speaker Karen Bass (D-Los Angeles) said. “AB 1588 builds upon successful mortgage workout programs other states have used to bring lenders and homeowners together to find alternatives to foreclosure. By providing the monitoring necessary for this process to succeed in California’s tough housing market, I’m confident this legislation will help more families stay in their homes and keep communities intact.”

Nevada Assembly Speaker Barbara Buckley testified today before the committee, stating that she believes Californians can benefit from a program similar to the one she sponsored in Nevada. “No matter where we live, it is critical that we do all we can to help reduce the number of foreclosures and help people stay in their homes. Our program in Nevada has shown initial success in stemming foreclosures. While I understand the obstacles California faces as a non-judicial foreclosure state, I look forward to working with the California Legislature to find ways that a similar program could be implemented, said Speaker Buckley.”

Over the next several weeks, Assemblymember Nava will analyze the testimony given at the hearings regarding loan mediation programs and work with stakeholders to determine how to best move forward to address the current crisis and lessen the detrimental impact on California families.

“I am honored to have Nevada Assembly Speaker Barbara Buckley at the State Capitol today to testify on her successful foreclosure mediation program. I look forward to working with her as we make progress with California’s own monitored mortgage workout program,” said Nava.

From Californianewswire.com

My team and I have actually lost three short sale deals to the foreclosure sale at the Sacramento and El Dorado County Courthouses within the last three weeks!

One was an Indy-Mac transaction that IndyMac had approved but the buyer had moved on… we put it back on the market and quickly found another buyer who was willing to pay exactly the same amount that the bank had approved prior.  They quickly denied the offer and would not re-schedule the pending foreclosure sale date. They told us it was because of a new policy that they will not take FHA buyers and wanted at least 20%down. 

The other two were just not handled correctly by the shortsale negotiator and the forelosure dates were not extended as promised.

More From Chris Mcglaughlin:

According to a securitization research note by Barclays Capital, short sales have been boosted by mandatory and voluntary foreclosure prevention efforts that prevent mortgages from entering real estate owned (REO) status.  As federally-funded modifications made through the Home Affordable Modification Program (HAMP) grow in frequency and lenders are expected to hold off on foreclosure proceedings, the REO pipeline shrunk, according to BarCap researchers. The foreclosure prevention efforts have had the effect of “artificially” boosting short sales.  “The artificial constraints to foreclosure auctions have resulted in a reduction in REO stock,” BarCap said. “As a result, the net volume of REO liquidations has also dropped.

As short sales are not affected by moratoria, their rate held up and their overall share in distressed sales increased.  It has now risen more than 10 points from the lows to about 35% of overall liquidations. It remains to be seen if this increase will sustain itself once the large number of loans sitting in foreclosure are finally released into REO.”  BarCap researchers pointed to the difference in severity seen in foreclosure and short sale scenarios as one of the drivers behind servicers choosing short sales. 

Servicers that pursue foreclosure on non-performing loans held within securitization have to make principal and interest advances until the loan’s liquidation, BarCap said. If the asset declines in value during the liquidation timeline and it neighbors other REOs, the final selling price will likely come in far below the current broker price opinion (BPO), which leads to high severity.  Short sales, on the other hand, pose a shorter timeline during which fewer principal and interest advances are needed. The asset has less time to depreciate, and borrowers have a strong incentive to maintain the property in order to sell it. After all, a better-maintained house attracts stronger bids, reducing overall severity in comparison with the REO liquidation scenario.  A short sale also tends to cost the lender less than foreclosure and it spares the borrower the negative credit score implications.