About West Palm Beach's Breakers West

WHY WOULD A BANK AGREE TO LET A BORROWER OFF THE HOOK FOR LESS THAN THE AMOUNT OWED?

Banks aren’t in the real estate business. They don’t want to own your home. And because banks were as blind sighted by the foreclosure crisis as everyone else, they already have more homes on their books than they can expect to sell in a year.

If there’s one word that describes how banks feel about foreclosures right now it’s:

ENOUGH!

As a result, many banks are now offering cash incentives and have speeded up processes to encourage short sales. You may qualify for a short sale if you:

• Owe more than your house is worth

• Can prove financial hardship

• Are unable to afford your current mortgage payment

The federal government, along with many state and local agencies, have also stepped up their foreclosure prevention initiatives. Key among the foreclosure prevention initiatives is the Home Affordable Foreclosure Alternatives (HAFA) program. Homeowners who qualify for a HAFA short sale get:

• $3,000 in relocation assistance

• The reassurance that the foreclosure process will be halted during the short sale process

• A waiver on deficiency judgments following the sale, meaning the lender will not seek to collect the difference in the amount of the mortgage and the sale price.

The situation is complicated and the stakes are high. Never has it been more important to have a local market advocate on your side. Contact me today and let’s get started! www.Sheldahodges.com

Short Sale vs. Foreclosure

Short sales have become an extremely popular and effective method of avoiding foreclosure. It is an option that has received much media attention lately, with claims that it is basically the same thing as foreclosure. Don’t believe the media hype! The benefits of a short sale far outweigh the fallout of a foreclosure, as illustrated in the chart below:

Short sale:

Credit: 150-200 points

Employment: not visible on credit record

Security Clearance: no effect in most cases

Deficiency Judgment: have ability to negotiate non-deficiency

Ability to Buy Home in Future: 2-3 years under certain conditions

Foreclosure:

Credit: 200-300 points, on record 7-10 years

Employment: foreclosure on credit record

Security Clearance: on credit record, will affect in most cases

Deficiency Judgment: no ability to negotiate non-deficiency

Ability to Buy Home in Future: 3-5 years undercertain conditions

Join the hundreds of thousands of homeowners who chose to work with a CDPE to relieve themselves of unaffordable mortgages. I can help you or someone you care about create a strategy for living a life without the burden of missed payments. Call me today, and let’s work together to put you back on the path of financial stability.

Obama Proposes Mortgage Refinancing Plan to Aid Millions of Homeowners

The Obama administration announced its latest plan to help troubled homeowners, enabling an estimated 3.5 million underwater mortgage holders to refinance at today’s historically-low interest rates.

However, experts speculate the proposal—which is expected to cost up to $10 billion and would be paid for by imposing a fee on major banks—could have a difficult time getting Congressional approval.

This proposal follows a string of government-initiated programs that have had mixed success, including the Making Homes Affordable Program. The difference is, Obama’s latest plan would assist borrowers with private (non-government backed) loans.

Under the current proposal, to be eligible borrowers must:

• Have not missed a mortgage payment in the past six months, and have no more than one late payment in the six months prior;
• Have a credit score of 580 or higher;
• Have a current mortgage balance within loan limits for FHA-insured loans in their communities; and
• The property must be their primary residence

As an agent, it’s important to understand the details and restrictions of the program so you can effectively advise your clients on their options. This proposal is already getting a lot of attention by the media, and distressed homeowners may view this as a viable solution to their problems.

However, it’s important to remember that this program would require Congressional approval, which may never happen. If you have clients who are on the edge, if they are facing foreclosure and desperate for help, don’t let the media talk of this proposal distract them from finding a real solution.

U.S. Government Settles with Banks on Robo-Signing Scandal

The Justice Department and 49 out of 50 state Attorneys General announced a settlement agreement with 5 of the nation’s largest banks in the Robo-signing and Mortgage Service Fraud scandal that first came to light in late 2010.

The settlement, worth $25 billion dollars, was the largest government negotiated industry settlement since the Tobacco Industry settled in 1998.

In the Settlement, $5 billion is earmarked for $2000 payments to be distributed to borrowers who were illegally foreclosed on between January 1, 2008 and December 31, 2011. The remaining $20 billion will be used to help homeowners who are currently in danger of losing their homes by helping with loan modifications, principle reductions, refinancing, short sales, relocation assistance and other alternatives.

If the market and your mortgage have tossed you a curve, you’re not alone

Millions of homeowners are at a crossroads right now

In the midst of a massive economic downturn, the most significant financial asset that many Americans assumed they could always fall back on has turned into a financial liability for a large percentage of the population. Second quarter 2011 statistics from Corelogic show that 10.9 million, or 22.5 percent, of all residential properties with a mortgage were “underwater,” meaning they owed more on their mortgage than they could sell their home for today’s market. Add to that an unemployment rate that’s above 9 percent coupled, with widespread underemployment, and you have a situation where millions of homeowners are drowning in debt.

As a distress property specialist, my mission is to work closely with you, drawing upon all of my expertise and resources throughout our community to navigate the best possible solution for you and to help you make a fresh start on your life.