Tag Archives: Borrowers

Scottsdale Real Estate Demand Surges as Tax Credit Got a New Lifeline

The Scottsdale real estate market is again soaring high, thanks to Pres. Obama, and his decision to extend the tax credit deadline on the home deals for the first time home buyers till April 30, 2010. The original deadline for the $8,000 tax credit break was November 30, 2009. The Obama administration has also made some changes in American Recovery and Reinvestment Act of 2009 to enable existing home owners avail the tax credit on the purchase of a bigger primary residence.

The updated version of the tax credit has announced a tax break of 10% of the total purchase price of the home amounting to maximum $8,000 for the first time home buyer. It also includes a tax break of $6,500 for the existing home owners who want to shift to a bigger primary residence. To qualify for the first time home buyers’ tax credit, the applicant has to show that he or she has not owned a home in last three years. To qualify for the existing home owners’ tax credit, the applicant needs to show ownership and occupancy of a primary residence for at least 5 consecutive years in the last 8 years.

“In Scottsdale, since the news came, we are seeing a significant rise in the inflow of buyers,” said Morgan H Hodges, a managing partner of MoJo Realty Group. He further added, “The first phase of the credit break pulled the first time home buyers into the market, and this new extension worked as a magnet to pull those who always wanted to move into a bigger and better house. Scottsdale real estate is hot now.”

Any single tax payer or married couple filing joint return can apply for the tax credit. The single filer should have gross earnings of less than $125,000, and joint filers should have gross earnings of up to $225,000 to avail a full tax credit under the updated American Recovery and Reinvestment Act of 2009. A single filer earning between $125,000 and $145,000, and a joint filers earning between $225,000 and $245,000 will be eligible for the partial tax credit only. Any single filer earning more than $145,000, and any joint filers earning more than $245,000 are not eligible for any tax credit.

One should keep in mind that a property of more than $800,000 sale price will not qualify for the tax credit, and to qualify for the tax credit, the property contract needs to be signed on or before April 30, 2010 and the sale should be finalized on or before June 30, 2010.

“Everyone in Scottsdale is happy with this extension and inclusion of existing home buyers in the tax credit,” said Josh W. Hintzen, managing partner of MoJo Realty Group. “These changes have brought many buyers into the market. The demand for single family homes is one the rise, and the home prices are steady. As of now, we are not seeing any sign of decline in the Scottsdale real estate market in the coming months.”

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HomeTelos LEO Program Achieves Market Success as Foreclosure Alternative

HomeTelos Loan Exit Option (LEO) program has demonstrated market success as an effective approach in avoiding foreclosure for borrowers, investors, and mortgage servicers. The LEO pre-foreclosure home sale program is faster and has significantly higher closing success rates than traditional short-selling programs. The HomeTelos LEO system aligns the interests of borrowers, servicers and other interested parties through its unique workflow management system, which qualifies properties for pre-foreclosure sale. When qualified, LEO then facilitates property sales through its dynamic online marketplace that brings motivated sellers & buyers together. Mortgage servicers can better help borrowers avoid foreclosure through HomeTelos’ integrated and streamlined LEO system and processes. Costly, frustrating, and ultimately unsuccessful sales efforts are avoided without heavy staff demands being imposed on servicing operations. HomeTelos LEO Program Achieves Market Success as Foreclosure Alternative

Since LEO’s launch last year, LEO properties upon listing have averaged 37 days on market, 4 offers per property and sales prices that average 96 percent of list price. A key to this success is real-time communication between real estate brokers, servicers and investors, allowing LEO to average only 3 days from buyer’s offer submission to servicer’s acceptance or rejection. According to a Florida borrower, “we were getting nowhere, losing our job then our home. We appreciated the quick action in getting our short sale resolved in this market”. LEO provides loan servicers with assurance that the property is widely marketed, offers represent real market value and that closing issues are resolved in advance. Borrowers avoid foreclosure proceedings, critically damaged credit ratings and the threat of lender recourse for loan payment shortfalls.

According to HomeTelos President Stephen Polley, “LEO’s success is driven by its breakthrough combination of innovative technology and re-engineered workflow processes for achieving the combined critical objectives of servicers, borrowers and other interested parties. LEO provides a way for families under financial stress to have a mortgage option that allows them to relocate with dignity.”

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Self Directed IRA Holders Find A Silver Lining To The Foreclosure Crisis

With foreclosures at all time highs and the stock market still not quite on solid ground, investors are focusing their activities on other markets, especially stable commodities and real estate. According to the latest indicators, it seems certain that the unprecedented level of foreclosures is set to continue even as the housing market slowly recovers. For many, it’s a tragic situation – and for others, a time of unparalleled opportunity.

There are quite a few IRA holders who are also interested in making investments in real estate given the sheer number of homes either in the foreclosure process, or already owned by financial institutions. However, traditional IRAs don’t allow the holders of these accounts the freedom to decide that they would like to take advantage of current market conditions to make investments in this very exciting market.

The answer may lie in something known as a self directed IRA, which as the name implies, is a retirement fund, which allows for the holder to make decisions about where their contributions to the account are invested – including in real estate, as president of the Austin firm Truly Self Directed, Josh Moore explains:

“Unfortunately, it does not appear that the current wave of foreclosures is going to subside anytime soon. Many investors are uncertain about the stock market and a lot of people are turning to what they know versus the unknowns of the stock market.”

“People with IRA / 401ks are looking for something they know can provide them a return on their investment – and that’s real estate. Investors who purchase real estate with IRA funds may actually be an important part of a viable free market solution to a less than ideal situation,” adds Moore.

About Truly Self Directed:
A self directed IRA such as those offered by Moore’s firm allow investors to take funds earning very low returns in traditional investment vehicles and put them to work as they see fit, including profitable sectors like real estate and development.

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The Approaching Tax Credit Deadline Is Pushing The First-Time Home Buyers Into The Market

There is a panic in the real estate market, but it’s no longer the panic driven by falling prices. The approaching tax credit deadline is creating the panic, and pushing the first-time home buyers into the market. The current rise in the demand for the Scottsdale real estate can be credited to this change in regulation.

As the November 30 deadline is closing in, the prospective home owners are trying hard to secure a deal before it is too late. The nationwide tax credit of $8,000 has worked as a catalyst in bringing the first-time home buyers to the Scottsdale and Phoenix real estate market. “The Scottsdale real estate market is hot and has been since spring, especially homes price under $400,000,” said Josh W. Hintzen, managing partner of MoJo Realty Group. He further added, “And with the November 30 deadline on the horizon, we’ve seen the Scottsdale real estate market gain momentum.”

As estimated by IRS, since February when the tax credit came in effect, in Arizona alone 38,000 taxpayers have taken the benefit under this plan, and around 1.4 million people nationwide have applied for the tax rebate. It is worth noting here that the U.S. median home price plummeted by 28 percent over 3 years in January. At that time, the market sentiment was at the lowest in 7 year.

It was only after the Congress approved American Recovery and Reinvestment Act of 2009 that the market started to recover. The first-time home buyers have been responsible for 43 percent of the home sales since the law came into effect. In a survey conducted by a leading market research company, 70 percent of the first-time home buyers said that the $8,000 rebate played a role in their purchase decision.

“The government stimulus package, falling interest rates, and well priced homes have brought buyer’s back into the housing market in Scottsdale, Phoenix and nationwide,” said Morgan H Hodges, a managing partner of MoJo Realty Group. “Supply has gone down and demand has gone up. We are in a much better market than we were 2 years ago. The numbers don’t lie.”

Realtors are divided on whether this surge and excitement in the housing market is temporary or here to stay. Some believe that the increase in home sales is mainly due to the stimulus package. Others believe that home buyers and investors have shed their fears and are back in the market regardless of the tax incentive.

Lately, there has been a lot of speculation in regards to the deadline of the first time home buyer’s tax credit. Will the government extend the cut-off date? If extended, will the credit be increased to $15,000? Will it be available to all buyer’s and not just first time home buyers? At this point, the tax incentive is set to expire November 30th and buyers should take advantage of the $8,000 while they still can.

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US Loan Auditors aids US Legal Advisors in filing Legal Action for Predatory Lending Against American Home Mortgage

Based on the results of a forensic audit done by US Loan Auditors, US Legal advisors announced that it has filed a lawsuit against American Home Mortgage Servicing on behalf of Karen Gardner-Johnson because of our intensive forensic loan audit of American Home Mortgage Servicing documents, indicated potential mortgage loan fraud and predatory lending abuses.

US Loan Auditors aids US Legal Advisors in filing Legal Action for Predatory Lending Against American Home Mortgage

“We have conducted numerous forensic loan audits of American Home Mortgage Servicing mortgage documents and have recognized several common potential predatory lending indicators such as prepayment penalties, product steering, kickbacks, forgery, and overstated income abuse” said Jim Sandison, one of the founders of US Loan Auditors.“Many of these violations are a direct violation of the Federal Government Consumer Protection Acts such as RESPA, HMDA, ECOA and TILA.

The lawsuit was filed today in US Federal Court, Eastern District of California on behalf of Karen Gardner-Johnson. The first court date in this legal action is a Joint Status Conference. Because these cases are filed in Federal Court the Magistrate/Judge that is assigned at the time of filing the complaint will rule on all matters pertaining to this case, until this case either settles or is set for trial. The compliant calls for American Home Mortgage Servicing to stop the foreclosure based on potential evidence of subprime or prime lending abuse.

“We really want to stand up for local homeowners that may have been taken advantage of by predatory lenders” Sandison said. “We seriously hope that all borrowers who believe they may have been victimized will contact our office as quickly as possible for a free no-obligation consultation.”

US Loan Auditors is not a loan modification company, but instead, specialize in the science and art of forensic loan auditing to help victims of predatory lending.

US Loan Auditors offers a free preliminary consultation for homeowners that believe they may have been taken advantage of during their home mortgage process. Research indicates up to 90 percent of homeowners with one or more of the following loan programs: adjustable loans; pick-a- payment; or are a non English speaking or limited English speaking, or stated loan transactions, may have been victims of predatory lending.

Upon completion of the audit and verification of the abuse, US Loan Auditors (www.usloanauditors.com) forwards the borrower’s case to US Legal Advisors (www.uslegaladvisors.com), a sister Company.

US Legal Advisors is a legal services firm that acts as a liaison and case management to support the private Attorney, who will represent the borrower throughout the legal process and negotiations.

For more information about US Loan Auditors, or to get a free initial consultation for your mortgage loan, please call 888-55-AUDIT or visit them online at: www.usloanauditors.com.

Here you can see Karen Johnson’s testimonial.

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Shouldn’t Foreclosure Always Be The Homeowner’s Last Resort?

Many families are in financial trouble because of a declining economy and an unstable real estate market. Numerous families are finding it increasingly difficult to pay for their mortgages and are in jeopardy of losing their homes to foreclosure*. Unfortunately, homeowners are not aware of the options that are available to them, or whom they can turn to for help.

First and foremost, a homeowner who is about to be or already is in financial distress should contact their current lender(s) to find out if there are options available for their particular situation. In some cases, a loan modification can be arranged directly with the lender, at no cost.

Regrettably, a significant number of home loans were poorly written; therefore, loan modification is not an option for a large portion of borrowers in distress. Homeowners may seek counseling; counseling is offered free of charge, by calling the U.S. Department of Housing and Urban Development, HUD, toll free at: (800) 569-4287.

Homeowners should stay away from and beware of paying any fees to ANYONE, including so called, “counseling agencies”, as they are not regulated and offer little to no help. Most states have also set up toll free numbers to counsel their residents, so check with with your State of residency.

More and more homeowners, who have been unsuccessful in getting any assistance from their lenders and/or government agencies, are turning to a CERTIFIED DISTRESSED PROPERTY EXPERT© (CDPE©), a Licensed REALTOR® who specializes in helping distressed homeowners who are “upside down” on their equity, late on their mortgage payments or who are already in the foreclosure process. A CERTIFIED DISTRESSED PROPERTY EXPERT© will see the homeowner through their distressed situation by successfully negotiating a short sale with their lender(s).

Lenders are now more willing to accept a short sale offer for a property’s true value, even if it is less than the amount owed. However, lenders are receiving thousands of short sale offers per month (most of the offers are incomplete packages that get tossed away or to the side) so a complete and well-prepared short sale offer package, sent by a CERTIFIED DISTRESSED PROPERTY EXPERT©, has the highest chance to be expedited quickly through a lender’s full log.

The end result of a short sale is minor when compared to the consequences of a foreclosure. Foreclosures have a devastating effect on credit history, job security, employment opportunities, security clearances, military and law enforcement careers, and the ability to purchase a home in the future; these are just a few examples of the damaging consequences of a foreclosure. Additionally, a foreclosure becomes public record, which is searchable by anyone, and can NEVER be removed.

We have all been bombarded lately with new creative ads, mailers, door hangers, TV and radio commercials promoting “foreclosure delay experts”. These ads are an example of how advertising is being misused to confuse vulnerable homeowners. Some ads claim to provide a service whereby they guarantee a homeowner will stay in their home for one year. Another example of how deceitful information targets already distressed homeowners. The average time for a foreclosure proceeding in Florida is in excess of 200 days, free of charge; so these less-than-forthcoming advertisers are charging money, when people need it the most, for a service that homeowners, in essence, already have.

Please do not pay, or let anyone you know pay money to anybody claiming they can stop foreclosures, including attorneys. Attorneys cannot stop foreclosures! The new “fighting foreclosures” and “foreclosure defense” ads attorneys are now broadcasting are an additional example of how the manipulation of information is being used to confuse and mislead the targeted distressed homeowner. Attorneys will “fight” a foreclosure until the homeowner is out of money. The only “defense” to a foreclosure is payment. The attorney, however, for a considerable fee, can prolong the legal process of a foreclosure until the homeowner is completely broke or all legal extensions have been exhausted. Nevertheless, in the end, the homeowner will still lose their home to a foreclosure and and face all the disastrous consequences that a foreclosure brings.

If a homeowner has the available money to pay for these deceitful services, he/she should use that money to make their mortgage payments.

If the borrower can pay the total amount owed to the lender, even up to the sale date, the lender will stop foreclosure. No one but the lender can stop the foreclosure process, and they will do so when either the homeowner pays the mortgage, bringing the loan payments up to date, or there is a successful negotiation of a short sale. These are the ONLY two ways for a foreclosure process to end. The homeowner will then be able to move on with his/her life, and in many cases, be eligible to own a new home in two years.

If you (or anyone you know) are about to miss a mortgage payment, have already defaulted on a home loan, or have been served foreclosure papers, a CERTIFIED DISTRESSED PROPERTY EXPERT© is able to help. The sooner you seek help the better but help is available even up to the last phase of a foreclosure, so please do not refrain from seeking help, because you might think it is “too late”. A CDPE© will not charge the homeowner. The CDPE© gets paid by the lender, at the end of the foreclosure proceedings, due to the successful sale of the home.

I cannot emphasize enough that no money should ever leave a distressed homeowner’s hands, ever.

This information barely scratches the surface. Mortgage delinquency and foreclosures are complex issues. Each and every case has its own unique set of facts and challenges. In most cases, homeowners are experiencing this overwhelming stress alone, without help of any kind, from anyone. It does not have to be that way. Families all around the country are in desperate need of proper guidance.

Not only do homeowners feel uncomfortable seeking the help of strangers, but a good amount of distressed homeowners might not feel comfortable asking delicate, private financial questions to people they do know. As a result, they do not ask anyone, falling deeper in trouble and are more vulnerable to scams. The Short Sales Message Board is a venue that was created specifically for distressed homeowners to ask Experienced Real Estate professionals questions, while maintaining total privacy.

A foreclosure is a devastating financial and emotional process for any family to endure and recover from and it should hardly ever happen. Foreclosure IS the last resort.

* In Florida, a Judicial State, a foreclosure happens when a lender files a lawsuit in State court against a borrower.

More Information can be found at the following web addresses:

http://www.PattyDasilva.com
http://www.hopeforhomeownersact.com/

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As The Foreclosure Crisis Worsens, The Parsa Law Group And Its Marketing Arm, The National Loan Modification Center, Have Been Contacted By Thousands Of Homeowners Which They Have Helped Stay In Their Homes

As the foreclosure crisis worsens, The Parsa Law Group and its marketing arm, the National Loan Modification Center, have been contacted by thousands of homeowners which they have helped stay in their homes.

The Parsa Law Group provides professional legal representation for those wishing to renegotiate an existing mortgage with their lender. The ultimate goal of the service is to avoid foreclosure and keep people in their home. With the number of phone calls increasing each month, the Parsa Law Group and the National Loan Modification center recently added 10,000 square feet of extra space and nearly 50 new employees last month alone.

“It’s been a quite challenge to keep up with the explosive growth of this area of our business,” says Mike Ponzillo, Director of Operations at the Parsa Law Group / National Loan Modification Center “we are literally hiring people every week because the calls keep coming in and every single case we negotiate with a lender requires a huge commitment of staff hours and resources on our end.”

This is indeed great news for homeowners who are in dire need of help from agencies like the Parsa Law Group. What sets this company apart is that they are a group of actual lawyers who provided legal representation for their clients when renegotiating a mortgage with their lenders. Studies show that homeowners who attempt to deal with a lender without any representation fail 80% of the time.

“For me this is a mission to help as many homeowners as possible stay in their homes. It’s such a shame when we see so many people that were taken advantage of with loans that were not explained to them fully or when you have someone that is about to lose their house and entire life’s savings because someone lied to them outright, or because they lost their job, or are simply going through rough financial times like so many other Americans. With the banks out to save themselves with billions in bonuses, and refusing to free up credit markets with the bailout money, a line has clearly been drawn, and we have chosen to be on the side of struggling homeowners.” said James Parsa, Lead Attorney at the Parsa Law Group / National Loan Modification Center.

While assistance from the government seems less and less likely, it is certain that more and more homeowners will reach out for help and the Parsa Law Group has proven to be more than ready.

The Parsa Law Group together with its marketing arm, the National Loan Modification Center, is the Nation’s Leading Legal Loan Modification Provider, with thousands of homes saved. With an on-site team of attorneys and professionals that fight to save homes from foreclosure, reduce mortgage payments, and hold lenders accountable for unfair or fraudulent loans, the Parsa Law Group is the staunch legal ally that struggling homeowners need in these difficult times.

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250,000 new families will enter foreclosure every three months according to the Mortgage Bankers Association

Over 60% of those families don’t know about services and options that mortgage lenders offer to help avoid foreclosure.

Most homeowners try and get refinancing for their home loan if they fear foreclosure. Others try to negotiate a “short sale” or just accept the foreclosure and walk away. Many homeowners have never heard of loan modification, a legal process that a homeowner can use to renegotiate loan terms with the current lender to reflect current financial circumstances.

“The people I’ve worked with in the past either don’t know what loan modification is, or they believe loan modification requires a high-priced specialist,” said Troy Fullwood, creator of the Loan Modification Toolbox. “Most homeowners could do it themselves if they just get access to the information,” he added.

Most or all of the fees associated with loan modification can be rolled up into the new balance according to HUD guidelines. Because loan modification doesn’t usually require upfront fees, it’s a viable option for cash strapped families.

Considering that a home is the largest investment most people will ever make, the opportunity to save that investment offers a lifeline to many affected by recent market trends.

The Loan Modification Toolbox was created by Troy Fullwood to offer a loan modification roadmap and information at a fraction of a specialist’s cost. The Loan Modification Toolbox, offers step by step plans, necessary forms and lender negotiation requirements to homeowners trying to stop foreclosure.

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Foreclosures at rise and more people falling behind on their mortgage payments

Foreclosures at rise and more people falling behind on their mortgage payments is the headline nowadays. The reason for this is that many borrowers have adjustable mortgages and don’t get out of a bad deal before it’s too late. Other borrowers buy a property they can’t afford with negative amortization loans that give borrowers options to pay 1%-2% annual rate instead of the real rate which is 7% or 8%. The difference of 5%-6% they are not paying is added to their mortgage balance and decreases their equity in the home. Then it becomes hard to refinance that loan because there’s no equity left. Many people who have subprime mortgages are inexperienced borrowers and non-US citizens who don’t understand that they can refinance their adjustable rates and even negotiate with the lender if they are facing foreclosure. Thirty percent of borrowers with subprime mortgages have built their credit history and can refinance and qualify for a prime rate.

 

In subprime market borrowers need to watch out for loan sharks. Most brokers in subprime market will hike the rates so they can make a lot of money. Borrowers should look out for YSP (yield spread premium) on their Good Faith Estimate. YSP is the fee the lender will pay to the broker for selling a certain rate. If it shows more than 2%+ you’re getting a really bad deal! Also, look out for origination fees and discount fees. If you’re being charged more than 1.5% you should get out of that deal and find another broker or lender. The best thing to do is shop around so you can get many loan offers. In mortgage industry the grass is always greener somewhere else. So shop, shop, shop!

When you find a good offer and you like the rates you should request a “rate lock” and ask the loan officer to send you a copy of the rate lock immediately. A lot of loan officers will quote you a rate and tell you they locked it, but they didn’t. Other things borrowers need to look out for is prepayment penalties. Always ask if there are any prepayment penalties. When you have prepayment penalty in your loan agreement you can not pay off or refinance the loan within couple years, if you do you will pay fees.

At closing look at the Settlement sheet which has all the fees associated with closing the deal and see if terms and fees have changed from the Good Faith Estimate you signed. Look for the paper that states “Note”. This shows exactly what your interest and term is going to be.

There is a great website ( http://www.rmdirect.net ) that provides free inside information so borrowers don’t get burned. They also provide FREE advice and support to borrowers who have problems and facing foreclosure or need a FREE 3rd party opinion.

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