"Unqualified" homeowners are being offered mortgage loan modifications by their bank or mortgage lender that are ultimately designed to fail, in a slight of hand effort to offer token assistance to consumers who should never have received mortgage loans in the first place.
Although many ‘qualified' consumers are receiving favorably modified mortgage loan terms due in large part to sufficient monthly income and low debt to income ratios, many homeowners who have lost significant household income since first receiving their mortgage loan are being locked out of the loan modification process. Even the government sponsored mortgage loan bailout programs are disqualifying many of these homeowners simply because they would not otherwise qualify under regular government loan-underwriting guidelines.
Thousands of homeowners, whose mortgage loans have been identified as loans that should have never closed in the first place, are being targeted early on in the loan modification process, often suggesting that the homeowners should strongly consider selling their home or refinancing with another mortgage lender, rather than making a bad loan, better.
It is easy to tell a good loan modification from a token loan modification, simply by using the following formulas:
A good mortgage loan modification is one where your mortgage lender offers:
*Reduce the principal balance of the outstanding mortgage loan balance in line with the property's
current value
*Convert an Adjustable Rate Mortgage (ARM) into a fixed rate interest loan
*Waive interest and escrow arrearages, including unpaid property taxes and hazard insurance
*A low good faith payment to reinstate a past due loan
A token mortgage loan modification where the mortgage lender offers:
*Add past due interest and/or escrow arrearages to the mortgage loan's current principal balance
*Setting a high interest ARM into a high interest fixed rate mortgage loan
*Increasing a mortgage loan's term from 30 years to as much as 40 years
*A high good faith payment to reinstate a past due loan, often times higher than what a homeowner can reasonably afford to pay at one time.
A good loan modification has improved loan delinquencies tremendously, where in opposition; the token mortgage loan modification has provided disastrous results, often leaving many of these same homeowners in the same quandary they were in even before the loan was modified!
Homes secured by ‘underwater' mortgage loans, that is, where the mortgage loan balance exceeds that of the home's current market value, are without a doubt a huge problem for consumers and industry alike. Consumers who have suffered financial setbacks such as a job loss or a loss of income, and continue to pay a mortgage loan that is taking a larger portion of their household income that an ordinary would never approve of, should strongly consider their options, including the sale of their home. Although the option of refinancing a mortgage loan is an option, applicants must still qualify for financing and may have difficulty if their current lender will not consider them to a good risk.
Although homes secured by underwater mortgage loans will likely not sell in a buyer's market such as the down market we are currently experiencing nationwide, a home could sell as a short sale, with many banks and lenders who originally offered a token mortgage loan modification, more than willing to accept a short sale followed by the subsequent debt forgiveness for the remaining principal mortgage loan balance.
The quicker a homeowner accepts the fact that an unaffordable mortgage loan is best resolved by a short sale, the quicker they can re-establish their good standing and purchase another home another home, secured by a mortgage loan that is affordable and perhaps no longer underwater.
For FREE information regarding the benefits of short selling your home, please call (941) 206-6000.
Mike Sikorski, MBA, GRI
Licensed Real Estate Broker
Licensed Mortgage Broker
MLS OF FLORIDA REALTY CORP.
22079 Kimble Avenue
Port Charlotte, Florida 33952
Phone (941) 206-6000
Email: Mike@FloridaRealty.net
“Unqualified” homeowners are being offered mortgage loan modifications by their bank or mortgage lender that are ultimately designed to fail, in a slight of hand effort to offer token assistance to consumers who should never have received mortgage loans in the first place.
Although many ‘qualified’ consumers are receiving favorably modified mortgage loan terms due in large part to sufficient monthly income and low debt to income ratios, many homeowners who have lost significant household income since first receiving their mortgage loan are being locked out of the loan modification process. Even the government sponsored mortgage loan bailout programs are disqualifying many of these homeowners simply because they would not otherwise qualify under regular government loan-underwriting guidelines.
Thousands of homeowners, whose mortgage loans have been identified as loans that should have never closed in the first place, are being targeted early on in the loan modification process, often suggesting that the homeowners should strongly consider selling their home or refinancing with another mortgage lender, rather than making a bad loan, better.
It is easy to tell a good loan modification from a token loan modification, simply by using the following formulas:
A good mortgage loan modification is one where your mortgage lender offers:
*Reduce the principal balance of the outstanding mortgage loan balance in line with the property’s
current value
*Convert an Adjustable Rate Mortgage (ARM) into a fixed rate interest loan
*Waive interest and escrow arrearages, including unpaid property taxes and hazard insurance
*A low good faith payment to reinstate a past due loan
A token mortgage loan modification where the mortgage lender offers:
*Add past due interest and/or escrow arrearages to the mortgage loan’s current principal balance
*Setting a high interest ARM into a high interest fixed rate mortgage loan
*Increasing a mortgage loan’s term from 30 years to as much as 40 years
*A high good faith payment to reinstate a past due loan, often times higher than what a homeowner can reasonably afford to pay at one time.
A good loan modification has improved loan delinquencies tremendously, where in opposition; the token mortgage loan modification has provided disastrous results, often leaving many of these same homeowners in the same quandary they were in even before the loan was modified!
Homes secured by ‘underwater’ mortgage loans, that is, where the mortgage loan balance exceeds that of the home’s current market value, are without a doubt a huge problem for consumers and industry alike. Consumers who have suffered financial setbacks such as a job loss or a loss of income, and continue to pay a mortgage loan that is taking a larger portion of their household income that an ordinary would never approve of, should strongly consider their options, including the sale of their home. Although the option of refinancing a mortgage loan is an option, applicants must still qualify for financing and may have difficulty if their current lender will not consider them to a good risk.
Although homes secured by underwater mortgage loans will likely not sell in a buyer’s market such as the down market we are currently experiencing nationwide, a home could sell as a short sale, with many banks and lenders who originally offered a token mortgage loan modification, more than willing to accept a short sale followed by the subsequent debt forgiveness for the remaining principal mortgage loan balance.
The quicker a homeowner accepts the fact that an unaffordable mortgage loan is best resolved by a short sale, the quicker they can re-establish their good standing and purchase another home another home, secured by a mortgage loan that is affordable and perhaps no longer underwater.
For FREE information regarding the benefits of short selling your home, please call (941) 206-6000.
Mike Sikorski, MBA, GRI
Licensed Real Estate Broker
MLS OF FLORIDA REALTY CORP.
22079 Kimble Avenue
Port Charlotte, Florida 33952
Phone (941) 206-6000
Email: Mike@FloridaRealty.net
Consumers "shopping" for a mortgage have taken on a new twist, leading to the creation of an information-sharing network by competing mortgage lenders.
In a desperate attempt to secure some forms of mortgage financing, loan applicants have turned to tailoring their loan application and loan documentation to that of what a mortgage lender is known by reputation for getting certain loan programs approved and closed. Think, "Telling them what they want to hear". This includes stating different sources of income and even alternative forms of credit, all in an effort to get the loan approved the way the applicant thinks the lender would like to see.
It is for these reasons competing mortgage lenders nationwide have created an information-sharing network to crosscheck loan applicants activity, such as income documentation and asset verification.
Using a mortgage loan applicants name and social security number, mortgage lenders nationwide have begun sharing pertinent applicant information as a way to safeguard mortgage lenders and investors from mortgage fraud. The information shared is based on specific information provided by the loan applicant, such as income and stated sources of income. This information is run through a database to see if this same loan applicant may have tried to apply for a mortgage loan with another mortgage lender, using different information. Loan applicants who provide conflicting information from one mortgage lender to another are not only immediately turned down for their loan request, are also subject to criminal charges of mortgage fraud, among others.
In addition to tracking consumer information, mortgage lenders are also tracking the names of mortgage brokers and loan originators who placed the loan with the mortgage lender, to see if potential fraud is being committed on the origination side and not the consumer.
In case you are wondering why a competitive group of mortgage lenders would band together in this effort, the answer is very simple. A majority of these lenders sell their loans their loans on the secondary market, and at some point in the future, could possibly sell their loans to each other. No mortgage lender wants to get stuck with a fraudulent loan, so a consensus of these mortgage lenders realized it was better to work together to combat mortgage fraud together.
Mortgage fraud is very serious crime, and is being taken seriously by mortgage lenders as well as law enforcement. The Federal Bureau of Investigation is current investigating thousands of cases of mortgage fraud, with consumers and so-called mortgage professionals being sentenced to lengthy prison terms and paying heavy fines as the direct result of committing mortgage fraud.
Think twice about the information you provide to a mortgage lender when applying for a mortgage loan. The assets and income you claim as well as the declarations you state on a mortgage loan application will be carefully scrutinized by mortgage loan underwriters, more so now than ever before. If you got away with mortgage fraud once, it is highly unlikely you'll succeed the next time around. And if you do succeed in committing mortgage fraud, just remember that months and even years later, you could get a knock on the door from someone with a badge in one hand, and handcuffs in the other.
For more information on how you can avoid mortgage fraud and predatory lending, please call 941-206-6000.
Mike Sikorski, MBA, GRI
Licensed Real Estate Broker
Licensed Mortgage Broker
Loss Mitigation Specialist
MLS OF FLORIDA REALTY CORP.
22079 Kimble Avenue
Port Charlotte, Fl. 33952
(941)206-6000
Homebuyers turned away due to lack of credit or credit scores do have a rather unconventional way to be approved without traditional credit or even a credit score.
Nontraditional credit is a widely used form of credit verification used by certain mortgage lenders for loan applicants who prefer not to use traditional forms of credit such as credit cards or car loans yet can provide a payment history on similar forms of ‘nontraditional" credit.
For several years now, mortgage lenders have recognized that loan applicants who choose to use non-traditional credit in place of traditional credit should not be penalized or discriminated, since proper verification of these non-traditional forms of credit can be treated to that of traditional forms of credit.
Non-traditional credit falls into two distinct categories that provide balance in assessing various forms of non-traditional credit. The categories are as follows:
Category I: Rent payments for an apartment or home, and utility bills such as electricity, water, telephone, propane gas, or cable TV. Rental payments made payable to a property management company for a home or apartment will usually require a Verification of Deposit, with no additional documentation required. However, if rental payments are made directly to a family member or private individual, 12 months of cancelled bank checks will be required. A letter of credit from utility companies will suffice as acceptable non-traditional credit.
Category II: Insurance payments, such as life, medical, automobile, & renter's insurance; child care providers, school tuition; department, furniture, appliance stores; specialty stores, rent to own; medical bills not covered by insurance; and Internet/cell phone services; savings accounts with regular monthly deposits (payroll deductions are not permissible) Personal loans from an individual with repayment terms in writing and supported by cancelled checks for 12 months are acceptable.
A minimum of three (3) credit references, including at least one (1) from Category I, must reflect 12 months of the most recent activity from the date of application. Credit from Category I is considered most important since it is the greatest indicator of a borrower's future housing payment performance. Borrowers with no credit references contained within Category I is considered insufficient by most underwriting standards.
All forms of non-traditional credit will have to be verified by an independent credit bureau. As each item of credit is verified, it will be added to your credit file as a Non-Traditional Mortgage Credit Report in the same manner as a traditional mortgage credit report. The name of the credit reference, as well as the date of opening, high credit, current status of the account, payment history, and any unpaid balances will be required for consideration by most mortgage loan underwriters. Although non-traditional credit will not trigger a credit score as required by most banks and similar lending institutions, a clear, consistent credit history reflecting no accounts delinquent more than 30 days in the most recent 12 month period will be treated similar to that of someone with good to very good credit scores.
It should be noted that borrowers who wish to apply for a mortgage loan using non-traditional credit will also be required to occupy the property as their primary residence AND may be required to have a minimum of two month's cash reserves at the time of loan settlement.
If you have been turned down for a mortgage loan by a bank or similar lending institution due to insufficient credit but have sufficient non-traditional credit, you may be able to finally purchase the home you have always wanted but could not get due to insufficient credit. With home prices more affordable now than in years past, now may be the best time for you to finance your next home using non-traditional credit. Loan programs are available through qualified mortgage lenders offering low, fixed interest rate mortgage loans as well as low down payments.
For more information about how non-traditional credit can benefit you, please call (941) 206-6000.
Mike Sikorski, MBA, GRI
Licensed Real Estate Broker
Licensed Mortgage Broker
Florida Realty Network LLC
22079 Kimble Avenue
Port Charlotte, Fl. 33952
(941) 206-6000
How far will you go to get the dream home you have always wanted, or the lowest interest mortgage available? Are you willing to claim assets you do not have, or income that you truly cannot prove to be true? If so, you could be facing a lengthy prison term and a very heavy fine.
The moment you sign a loan application that contains fraudulent information as it relates to income, debts, or assets, you have committed mortgage fraud. Even if you are turned down for a mortgage loan, or if a mortgage loan does not close, you can still be subject to prosecution for mortgage fraud.
It is illegal for a person to make any false statement regarding income, assets, debt, matters of identification, or to willfully overvalue any land or property, in a loan and credit application for the purpose of influencing in any way the action of a financial institution. The Federal Bureau of Investigation investigates these crimes where individuals could face up to 30 years in prison, a $1,000,000 fine, or both.
The following are examples of what is considered mortgage fraud:
* Providing false names, addresses, and Social Security numbers.
*Providing fraudulent documentation regarding income, such as Federal income tax returns,
W-2's, 1099's, and pay stubs.
*Intentionally overvaluing assets or failing to disclose debts or other liabilities
Even the submission of a loan application to a bank or mortgage lender that contains fraudulent information is considered Bank Fraud; put the loan application in the mail to the mortgage lender, it becomes Mail Fraud; send the application to a mortgage lender by facsimile (fax) or email, it becomes Wire Fraud.
Dishonest consumers and unscrupulous mortgage brokers have been known to go to great lengths to get a mortgage loan by means of fraud, simply to get a lower interest rate or a higher loan to value mortgage loan. Sometimes consumers and mortgage brokers will work together to commit mortgage fraud, and a mortgage broker may decide to take it upon themselves to commit mortgage fraud. You may be an unwilling participant to mortgage fraud, but if you put your signature on a loan application that may be inaccurate or fraudulent, you are just as guilty as the mortgage broker, and you both could end up paying a very heavy price.
There is home for sale or mortgage you have to have that is worth to the lengths of committing mortgage fraud. There is an excellent chance that you could get caught committing mortgage fraud, even before a mortgage loan has closed. In fact, most instances of mortgage fraud are caught at the very beginning; at the time the loan application is made.
Banks and most mortgage lenders are highly trained to look for various types of mortgage fraud, by analyzing your loan application and income documentation, looking for red flags that could be some form of mortgage fraud. For example, the income tax returns you provide to a mortgage lender can be verified for accuracy through the IRS in as little as 48 hours, verifying the income you are claiming on the tax returns you gave the mortgage lender is the same as you are reporting to the IRS. The advent of computer software programs such as tax preparation & payroll software easily purchased at your local office supply store have given banks and mortgage lenders even more reason to scrutinize your tax returns, w-2's, 1099's, and pay stubs, looking to make sure everything is where it should be.
If your bank or mortgage lender catches you committing fraud, they may not even tell you about it. They could simply turn your loan application down and not say another word. It's when you get a knock at your door from an FBI agent or some other law enforcement official that you know you have been caught.
The best way to avoid mortgage fraud is to not be a party to fraud. If you apply for a mortgage loan, provide only accurate and truthful information from the start. Make sure the loan application that you place your signature on is truthful and accurate. The signature on the loan application is you attesting that the information provided by you is truthful and accurate. Make sure the bank or mortgage lender you choose is, honest, & trustworthy. Check references, question their experience in residential lending, and try to avoid overzealous mortgage brokers bent on getting you a mortgage loan at any cost. Even when you attend the loan closing, make sure the loan application you sign is truthful and accurate. Any information on the loan application that may be untruthful or inaccurate becomes valid at the time you sign that loan application. If there is incorrect information on the application at your loan closing, it is better to put the closing off until the loan application is corrected. It could possibly delay the loan closing from happening all together, but it could help avoid having to answer questions later, and save you from a lengthy prison term and heavy fine later.
There is no dream home or low interest mortgage you have to have if it means committing mortgage fraud, and there are no second chances if you are caught committing mortgage fraud. The home or mortgage you receive today through mortgage fraud could offer severe consequences later. That knock on your door could likely be someone holding a badge in one hand with handcuffs in the other.
Mike Sikorski, MBA, GRI
Licensed Real Estate Broker
Licensed Mortgage Broker
Loss Mitigation Specialist
Florida Realty Network LLC
22079 Kimble Avenue
Port Charlotte, Fl. 33952
Phone (941) 206-6000
Serving the Real Estate Needs of Florida's Suncoast! Port Charlotte Punta Gorda Englewood North Port Venice
Mike Sikorski, MBA, GRI
Licensed Real Estate Broker
I have the knowledge and experience you need to find the perfect home at the right price!
PLUS! I can assist you in financing your home with a low fixed interest rate with NO prepayment penalties!
Personal Committment
Being a Realtor means more than just buying and selling homes. It is about people, their families, and meeting their hopes and dreams. It is about a relationship based on trust, knowledge, confidence, and expertise. My clients can be assured that I will go the extra mile towards making their experience the best they ever had when buying or selling a home. Exceeding my client's expectations is my #1 goal!
Education
Bachelor of Buiness Administration
Master of Business Administration
500+ classroom hours of specialized real estate &
residential lending education
Experience
Licensed to practice real estate in the State of Florida since 1996
Florida Licensed Mortgage Broker since 1993
Expertise
Marketing & Negotiating Expert
Certified Residential Mortgage Specialist
Career Achievements
Consistent multi-million dollar Top Producer
Professional Designations
Graduate, Realtor Institute (GRI)
e-Pro
Member
Punta Gorda-Port Charlotte-North Port Association of Realtors
Florida Association of Realtors
National Association of Realtors
Mid-Florida Regional Multiple Listing Service
Services for Sellers
Premium Property Marketing Program
Detailed property listing in the Multiple Listing Service (MLS) as well as an enhanced property listing in Realtor.com with professional digital phtoso, a virtual video tour of the property and premium visibility on Yahoo! Google and 25 additional real estate web sites and search engines to reach thousands of homebuyers every month!
Complete Property Listing Management
From tracking & scheduling property showings to monitoring changes in market conditions, your property will remain on the cutting edge of current real estate market trends to keep your property listing visible and competitive!
Complete Closing Coordination
From preparing purchase contracts and legally required property disclosures to scheduling and managing property inspections, I will work to ensure a smooth closing becomesreality for you!
Additional services include:
*Eye catching yard signs
*Full color property flyers
*Email Marketing Campaigns
*Optional Home Warranty
*24/7 Broker Support Program
...And much more!!
Pick up a phone and call me today..you'll be glad that you did!!
(941) 206-6000
(877) 293-0556
Services for Buyers
Define Your Needs and Wants
Finding the right home in the right neighborhood with the amenities you are looking for within your price range is what I will strive for. I will be your one-stop resource for information about neighborhoods, schools, recreation and other imformation important to helping you find your dream home!
Provide You With Financing Options
I will assist you in finding the best possible financing options available to you, making sure that you receive the loan terms and conditions that are most favorable to you.
"I have helped hundreds of homebuyers purchase the home they have always wanted with competitive financing terms that fit tha fit their needs. Let me put my experience to work for you!"
Contact me today to get started!
(941) 206-6000
(877) 293-0556
Licensed to practice real estate in the State of Florida since 1996, I am also a licensed mortgage broker since 1993. I specialize in working with first time homebuyers. I also offer extensive marketing services to sellers of single family homes. I taught specialty residential lending classes and Florida lending law for the Florida Association of Mortgage Brokers. I currently write a weekly column for the Charlotte Sun Herald covering topics specific to residential lending as well as offering tips for consumers on the best ways to apply for a mortgage loan.
79-125-100
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IF YOU ARE A REAL ESTATE PROFESSIONAL WHO IS ABOVE ALL OF THE UNNECESSARY FRILLS OF A FRANCHISE BROKERAGE BEHOLDEN TO COUNTLESS JUNK FEES AND BELIEVE YOU DESERVE SOMETHING MORE, THAN THE FLORIDA REALTY NETWORK HAS WHAT YOU ARE LOOKING FOR!
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