Part of my business plan includes purchasing a mailing list of those that are currently 30-90 days late on their mortgage payment. My goal is to reach homeowners that are possibly facing foreclosure before it's too late. My theory is that when you find yourself in a situation where you may lose your home to foreclosure, it is best to react & consider all possible solutions to this problem.
our conversation, these homeowners have a better understanding of the steps that need to be taken to resolve their problem. I may not have the answers they were hoping to hear; "Will Obama pay my mortgage?" Sorry, that is not an option. The REAL options include loan modification, a short sale, loan forbearance or bringing your mortgage payments current. While I am only trained in processing short sales, I know that loan modifications or payment plans do take quite a bit of persistence with the lien holders - if you're a homeowner attempting to modify your loan, as frustrating as it may be, don't give up!
The Mortgage Debt Relief Act of 2007 generally allows taxpayers to exclude income from the discharge of debt on their principal residence. Debt reduced through mortgage restructuring, as well as mortgage debt forgiven in connection with a foreclosure qualifies for the relief.
voicemail messages & concluded with "I hope you have a very short life". He said this after stating that I was giving homeowners in unfortunate situations "False Hope". I ask you, is it really false hope? I beg to differ! This is a legitimate way to relive homeowner's of their mortgage debt & prevent foreclosure. Do I think this particular caller has had a bad experience with others promising a resolution? Absolutely! This is why he cannot believe that there is help out there. I have heard of scams and nightmare situations that homeowners have been involved in so be wary of the programs that offer help for a fee up front. In typical short sales which is my area of expertise, the lender will pay for the seller's closing costs to include broker commissions. A good short sale negotiator should be confident enough in their abilities to #1) Sell the House #2) Negotiate a short sale to procure the best possible outcome for the homeowner facing foreclosure.
All across America this morning, people will be grabbing their morning paper (online most likely) and reading an article that was circulated through the Associated Press about the new home construction industry. As a matter of fact, the article features a picture of a home being built in Tallahassee (and that is how this feed caught my attention).
Unfortunately, the article is grossly misleading. The authors of this article apparently do not consider “supply and demand” in real estate to be a factor that home builders should consider when deciding what to do.
In the real estate equation, the supply side is filled by:
- New home builders building homes
- Existing home owners selling their home
- Banks and asset managers liquidating their inventory
On the other side of the real estate equation, the demand side, is filled by the growing need for new homes from:
- Home buyers
- Home renters (this is also where we would see home investors)
Glut Of Homes Force Smart Home Builders To Wait
The fact is, there is a glut of homes on the market that is forcing wise home builders to wait for the real estate market to need more houses. The Associated Press article leads us to believe that this is a “shocking new development.”
Construction of homes unexpectedly plunged last month to its lowest point since April, the Commerce Department said Wednesday. The weak figures show that builders still lack confidence that buyers can soak up the glut of unsold homes already on the market — a supply magnified by a record number of home foreclosures.
The real estate market’s glut of homes is not a big surprise. All a home builder has to do is track the inventory of homes on the market and then make a decision on where the entry point will be for his (or her) construction company.
So, how and when does a home builder choose an entry point to start building? [click to see the real market information that home builders rely upon]
