Those who are looking for a deal on a home, can find one by buying a short sale, but buying a short sale doesn’t happen fast. Short sales don’t mean that they are short on time, but it simply means that the home is being sold for less than what is owed, coming up “short” on the balance.
Buying a short sale can take anywhere from 4 to 6 months to close, so be prepared. If this home is on the MLS, you can ask your agent to find out if this home is a short sale. The reason you’ll want to tune into this is because you may find a home that appears to be much less than the neighborhood calls for. Your agent can get this information for you, and that way you will have an idea of what offer you should really be making if you like this home.
Buying a short sale has its benefits, but just be prepared to wait awhile. If you aren’t in a hurry, then buying a short sale may be for you. You can get more information, by going to http://www.inlandempireshortsaleresource.com/.
-Mayer Dallal
Showing posts with label Inland Empire Short Sale Resource. Show all posts
Showing posts with label Inland Empire Short Sale Resource. Show all posts
Wednesday, June 16, 2010
Wednesday, June 9, 2010
Hardship Letters
Hardship letters are probably pouring in by the thousands, but you may never hear about them unless you are trying to get a short sale negotiated for your home. As hard as it is to rehash all the financial garbage you are going through, it could be extremely beneficial.
Hardship letters are a part of the approval process and the bank wants to know why you are struggling. Regardless of the blame game we play back and forth, it will still be worth your while to engage in the hardship letter if you can. Pour your heart out and allow yourself to feel the pain while you write, so that your thoughts will come out clearly when you put pen to paper.
Tell the bank everything, and if you pour out your tears as you write, chances are that they will feel what you are feeling when they read it. The hardship letters could make or break what the bank has to say to you regarding listing your home as a short sale, so don’t leave anything out.
As a Certified Distressed Property Expert, I can help. I can help you get organized, and I can help you plan organize your thoughts too. For more information on short sales and the process, please visit my website, www.inlandempireshortsaleresource.com.
-Mayer Dallal
Hardship letters are a part of the approval process and the bank wants to know why you are struggling. Regardless of the blame game we play back and forth, it will still be worth your while to engage in the hardship letter if you can. Pour your heart out and allow yourself to feel the pain while you write, so that your thoughts will come out clearly when you put pen to paper.
Tell the bank everything, and if you pour out your tears as you write, chances are that they will feel what you are feeling when they read it. The hardship letters could make or break what the bank has to say to you regarding listing your home as a short sale, so don’t leave anything out.
As a Certified Distressed Property Expert, I can help. I can help you get organized, and I can help you plan organize your thoughts too. For more information on short sales and the process, please visit my website, www.inlandempireshortsaleresource.com.
-Mayer Dallal
Monday, May 24, 2010
Is There Mortgage Modification Fraud?
Families across America are catching onto the mortgage modification programs that are available today, but with information overload it’s hard to know who to trust.
Last year, one in six families defaulted on their home loans and felt they had nowhere to turn. The truth is that there are options available today so that families don’t have to worry anymore. There are some things to look for when trying to find an expert that can walk you through the whole process.
The biggest concern that I have is that the consumer needs to know the truth. While everyone can seek out these options, the truth is that there are only a small percentage of people that qualify for a mortgage modification. The challenge when doing a modification is the debt to income ratio target, which is at 31%. While this would be ideal for everyone, the bank may not to be able to get every home owner qualified under those guidelines. So, keep your eyes open for predatory schemes and people that are enticing you to believe that there are no guidelines and they can help you.
Foreclosure operations are popping up across the country and make promises they can’t deliver on. Don’t believe that someone can save you from your troubles; there is a process for everything. If it sounds too good to be true than it probably isn’t true!
Call me for more details, or visit my website at www.inlandempireshortsaleresource.com, or call me directly at (310) 498-2700.
Last year, one in six families defaulted on their home loans and felt they had nowhere to turn. The truth is that there are options available today so that families don’t have to worry anymore. There are some things to look for when trying to find an expert that can walk you through the whole process.
The biggest concern that I have is that the consumer needs to know the truth. While everyone can seek out these options, the truth is that there are only a small percentage of people that qualify for a mortgage modification. The challenge when doing a modification is the debt to income ratio target, which is at 31%. While this would be ideal for everyone, the bank may not to be able to get every home owner qualified under those guidelines. So, keep your eyes open for predatory schemes and people that are enticing you to believe that there are no guidelines and they can help you.
Foreclosure operations are popping up across the country and make promises they can’t deliver on. Don’t believe that someone can save you from your troubles; there is a process for everything. If it sounds too good to be true than it probably isn’t true!
Call me for more details, or visit my website at www.inlandempireshortsaleresource.com, or call me directly at (310) 498-2700.
There is Life After a Short Sale !
There is life after a short sale, don’t think that your financial future is over once you negotiate a short sale.
A short sale is much different from a foreclosure, in that it is a negotiation with the lender to let the home sell for less than is owed on the home. The short sale prevents you from having a foreclosure on your credit, and it will also allow you to credit qualify for another loan within a few years time. Foreclosure will affect your credit rating for three years, but it will remain on your credit report for ten years. When doing a short sale, your credit will show that your mortgage loan is paid as agreed, or settled, but this will probably drop your score no more than 50 points, and the slow pay will drop off your report within 12 to 18 months.
With all of the media hype on short sales, it’s really tough to know what is right and what is wrong. You need an expert and the tools and resources to get this right. Foreclosure can be devastating so don’t let it happen to you. There are options, so we can discover what those are together. Call me at (310) 498-2700, or you can email me today at mdallal@fhaloansnow.net.
A short sale is much different from a foreclosure, in that it is a negotiation with the lender to let the home sell for less than is owed on the home. The short sale prevents you from having a foreclosure on your credit, and it will also allow you to credit qualify for another loan within a few years time. Foreclosure will affect your credit rating for three years, but it will remain on your credit report for ten years. When doing a short sale, your credit will show that your mortgage loan is paid as agreed, or settled, but this will probably drop your score no more than 50 points, and the slow pay will drop off your report within 12 to 18 months.
With all of the media hype on short sales, it’s really tough to know what is right and what is wrong. You need an expert and the tools and resources to get this right. Foreclosure can be devastating so don’t let it happen to you. There are options, so we can discover what those are together. Call me at (310) 498-2700, or you can email me today at mdallal@fhaloansnow.net.
What is a Strategic Default?
With all of the discouragement and financial hardship, it’s really easy to just throw in the towel. Walking away from your home isn’t the answer.
I have seen families walk away from their home thinking that would be so much easier, but it really just makes things worse. Walking from your home and moving out to let it sit will put you in a position of devastation and heart break. By planning what is called a “strategic default”, you could ruin your credit for years, and eliminate the possibility of homeownership.
A strategic default will have the same affect on you that a foreclosure will, but it happens a little bit differently. The strategic default is when someone is planning to just walk away and they allow this to happen. They knowingly move out and let everything go.
A foreclosure happens when someone has been struck by hardship whether it’s a job loss, high medical expenses, or even a divorce. No matter what has happened to you there are options.
For more information go to www.inlandempireshortsaleresource.com, or call me at (310) 498-2700.
I have seen families walk away from their home thinking that would be so much easier, but it really just makes things worse. Walking from your home and moving out to let it sit will put you in a position of devastation and heart break. By planning what is called a “strategic default”, you could ruin your credit for years, and eliminate the possibility of homeownership.
A strategic default will have the same affect on you that a foreclosure will, but it happens a little bit differently. The strategic default is when someone is planning to just walk away and they allow this to happen. They knowingly move out and let everything go.
A foreclosure happens when someone has been struck by hardship whether it’s a job loss, high medical expenses, or even a divorce. No matter what has happened to you there are options.
For more information go to www.inlandempireshortsaleresource.com, or call me at (310) 498-2700.
Friday, May 21, 2010
What is a Forbearance or Repayment Plan?
Getting a forbearance is a form of a repayment plan that a borrower can negotiate with the lender to allow them to pay back the loan over periods of time. The way the lender sets this up is to pay back parts of the arrears in addition to the current monthly payment.
The only benefit to this option is that it does allow the homeowner to make payments over time, however is it even possible? This is again a dilemma as many who would have the extra money simply would have already started paying the loan according to the original terms and agreements. Trying to play catch up on a large payment like this is not easy by any means. I guess what I am saying is this; if the homeowner is struggling to make the current payments, then how would they be able to pay anything additional? This seems like a catch 22 for the homeowner. Some lenders may require a new qualification process to get them into a forbearance. This is no easy task and be very frustrating for the homeowner.
For more information on your forbearance options, you can check with your current lender to see what they can offer you. Every lender will have different options.
The only benefit to this option is that it does allow the homeowner to make payments over time, however is it even possible? This is again a dilemma as many who would have the extra money simply would have already started paying the loan according to the original terms and agreements. Trying to play catch up on a large payment like this is not easy by any means. I guess what I am saying is this; if the homeowner is struggling to make the current payments, then how would they be able to pay anything additional? This seems like a catch 22 for the homeowner. Some lenders may require a new qualification process to get them into a forbearance. This is no easy task and be very frustrating for the homeowner.
For more information on your forbearance options, you can check with your current lender to see what they can offer you. Every lender will have different options.
Is a Reinstatement a Possibility?
Is Reinstatement a Possibility?
Foreclosure doesn’t have to happen to you and there are options available at your fingertips. Los Angeles area residents have some options that they can use, but many families don’t even know that they are available to them.
There is an option called a reinstatement. A reinstatement takes place when the homeowner asks what the total amount is due as of this date. Then, they pay the money to the lender in full. They don’t pay the full loan amount off, just what they owe up until this point. The reinstatement is the toughest way to go because many families don’t have that type of money sitting around. In my onion if they did they wouldn’t be facing the foreclosure. When people have money available trends show that they will access the money when they can see it coming. This could be anything from a savings account, to a 401 K. Many families have opted to cash out their 401k in hopes that it would save them from a dire situation.
The biggest challenge with doing a reinstatement is that the lender doesn’t have to approve it. They lender can say no way, and the timeframe to get all the money together could be tiring. Time spent signing off on papers and mailing them in is tedious, and this is why anyone who would have opted for this probably would have cashed out their funds months previous to this. Getting the funds released from your 401k may also bring about a tax liability, so sure to talk to a financial advisor or someone you trust before taking this step.
Foreclosure doesn’t have to happen to you and there are options available at your fingertips. Los Angeles area residents have some options that they can use, but many families don’t even know that they are available to them.
There is an option called a reinstatement. A reinstatement takes place when the homeowner asks what the total amount is due as of this date. Then, they pay the money to the lender in full. They don’t pay the full loan amount off, just what they owe up until this point. The reinstatement is the toughest way to go because many families don’t have that type of money sitting around. In my onion if they did they wouldn’t be facing the foreclosure. When people have money available trends show that they will access the money when they can see it coming. This could be anything from a savings account, to a 401 K. Many families have opted to cash out their 401k in hopes that it would save them from a dire situation.
The biggest challenge with doing a reinstatement is that the lender doesn’t have to approve it. They lender can say no way, and the timeframe to get all the money together could be tiring. Time spent signing off on papers and mailing them in is tedious, and this is why anyone who would have opted for this probably would have cashed out their funds months previous to this. Getting the funds released from your 401k may also bring about a tax liability, so sure to talk to a financial advisor or someone you trust before taking this step.
Mortgage Rates a Year Ago
A year ago on this very day, May 21, 2009 mortgage rates jumped. Isn’t it amazing that we are in such a different place than we were then? We have watched the rates go up and down and up and down with no clear picture as to how this thing was going to end up, and we still don’t really know what is going to happen.
The market has changed and times of change, it’s just a matter of figuring out how we are going to weather those storms. One day is better than the next, so how do we manage? We can’t just give up, we need to tap into resources that have been here for us all along, but that we just haven’t used. We need to make better choices with the understanding that it affects our family and our friends. It certainly affects our children the most, but we don’t think of it that way.
The market may continue to change, and your personal circumstances may change, but the one thing that remains the same is the decision that is left up to us. We can either forge ahead and look at our options and be responsible, or we can choose to not try and just bury our head in the sand and pretend that things will get better without our imitative. Forging ahead is the only option for me.
The market has changed and times of change, it’s just a matter of figuring out how we are going to weather those storms. One day is better than the next, so how do we manage? We can’t just give up, we need to tap into resources that have been here for us all along, but that we just haven’t used. We need to make better choices with the understanding that it affects our family and our friends. It certainly affects our children the most, but we don’t think of it that way.
The market may continue to change, and your personal circumstances may change, but the one thing that remains the same is the decision that is left up to us. We can either forge ahead and look at our options and be responsible, or we can choose to not try and just bury our head in the sand and pretend that things will get better without our imitative. Forging ahead is the only option for me.
Thursday, May 20, 2010
Rent Credits Toward Your New Home Purchase
Rent to own is a popular option these days, and they do work out well for some who are looking to buy a home in the future, but how does this work?
The rent credit is established when a renter takes on a lease agreement stating that a portion of this payment will go towards the down payment of the property. The lease agreement must clearly state and account for this being the case. There must be a clause within that agreement that states how much of the down payment will go toward the purchase of this home. In this case, it is the lender’s responsibility to show that the estimate is above FHA’s required fair market rent. If the amount is not above, then the amount will be deducted from the sale price of the home as seller concessions.
When buying a home, you will have your down payment to consider as well as your closing costs. To aid in limiting the amount of money that the seller needs to bring to closing, the realtor and seller can agree to pay all or most of the costs. Before finalizing anything, make sure that you understand what is required of you in terms of money, because you need to be financially prepared.
The rent credit is established when a renter takes on a lease agreement stating that a portion of this payment will go towards the down payment of the property. The lease agreement must clearly state and account for this being the case. There must be a clause within that agreement that states how much of the down payment will go toward the purchase of this home. In this case, it is the lender’s responsibility to show that the estimate is above FHA’s required fair market rent. If the amount is not above, then the amount will be deducted from the sale price of the home as seller concessions.
When buying a home, you will have your down payment to consider as well as your closing costs. To aid in limiting the amount of money that the seller needs to bring to closing, the realtor and seller can agree to pay all or most of the costs. Before finalizing anything, make sure that you understand what is required of you in terms of money, because you need to be financially prepared.
Get an FHA Approved Condo
If you are looking to buy a condo FHA you can, but there are some specific requirements that FHA has regarding condos. Typically in the past, it was not recommended to buy a condo because they were hard to resell. Families would opt for a house before a condo.
There are a few guidelines with FHA when it comes to buying a condominium:
1) The condominium project must be complete. FHA will not lend on a development. At the time of the loan, there cannot be any ongoing additions to the condo.
2) The control of the common areas, such as walkways and spaces in between condos are considered common areas. Another area considered common area is any yard space or parking.
3) The condo association must have the proper coverage for flood and hazard insurance.
4) Individual units must be held in fee simple. This means that the units are free to be opened up for home ownership.
5) There can be no legal restrictions on conveyance of any titles.
6) At least 90% of the units must be sold.
7) At least 51% of the units must be owner occupied.
8) No individual can own more than 10% of the units in the development.
There are many more small things to look for when buying a condo through an FHA loan. For more information please visit my website, www.fhaloansnow.net, or call me at (310) 498-2700.
There are a few guidelines with FHA when it comes to buying a condominium:
1) The condominium project must be complete. FHA will not lend on a development. At the time of the loan, there cannot be any ongoing additions to the condo.
2) The control of the common areas, such as walkways and spaces in between condos are considered common areas. Another area considered common area is any yard space or parking.
3) The condo association must have the proper coverage for flood and hazard insurance.
4) Individual units must be held in fee simple. This means that the units are free to be opened up for home ownership.
5) There can be no legal restrictions on conveyance of any titles.
6) At least 90% of the units must be sold.
7) At least 51% of the units must be owner occupied.
8) No individual can own more than 10% of the units in the development.
There are many more small things to look for when buying a condo through an FHA loan. For more information please visit my website, www.fhaloansnow.net, or call me at (310) 498-2700.
FHA Refinance buzz
FHA refinance and purchase is the way to go for any borrower. For many years it was misunderstood that FHA was for people that were bad credit, or had middle of the road credit but that just isn’t the case. FHA takes some time and patience, and I am here to help, but there are a few things you should know.
FHA refinance loans can either be done in what is called a streamline or a cash -out loan. The streamline FHA loan allows you to refinance just the loan, while the cash out loan is an option if you want to take up to 85% of the home’s value to do so. The refinance option will allow you to take up to 97.75%. These limits are just simply a guideline to prevent another economic crisis like what we are having now. These limits also will prevent you from going into a payment that is much larger than what you have right now.
Any loan that is not currently an FHA loan can certainly be refinanced to an FHA loan. In order to determine what your debt load is, they will look at what you owe on the home and your existing debts outside of that.
Consider that when your pay off from your current home loan comes in, it may include any unpaid interest calculated through the end of the month, and will include any late fees that were tacked onto your loan from the past. Escrow shortages can also account for this final payoff, so be prepared to consider how you want to refinance your loan before you start the process. If you aren’t sure what to do I can help. For more information, you can go to www.fhaloansnow.net. There is a lot of information and a place for you to fill out information to get a quote today.
FHA refinance loans can either be done in what is called a streamline or a cash -out loan. The streamline FHA loan allows you to refinance just the loan, while the cash out loan is an option if you want to take up to 85% of the home’s value to do so. The refinance option will allow you to take up to 97.75%. These limits are just simply a guideline to prevent another economic crisis like what we are having now. These limits also will prevent you from going into a payment that is much larger than what you have right now.
Any loan that is not currently an FHA loan can certainly be refinanced to an FHA loan. In order to determine what your debt load is, they will look at what you owe on the home and your existing debts outside of that.
Consider that when your pay off from your current home loan comes in, it may include any unpaid interest calculated through the end of the month, and will include any late fees that were tacked onto your loan from the past. Escrow shortages can also account for this final payoff, so be prepared to consider how you want to refinance your loan before you start the process. If you aren’t sure what to do I can help. For more information, you can go to www.fhaloansnow.net. There is a lot of information and a place for you to fill out information to get a quote today.
Wednesday, May 19, 2010
What is the Alternative to a Foreclosure?
With so many foreclosures happening across the country, the government needed to come up with a solution to help homeowners. There is now hope with HAFA. HAFA is, Home Affordable Foreclosure Alternatives Program. This program is designed to help eligible homeowners by pre-approving short sales before listing and releasing them from future liability of their mortgage debt.
The HAFA program was finalized and made public on April 5th, 2010. The only mortgages that qualify are any first lien mortgages that are not backed by Freddie Mac or Fannie Mae. They may or may not come up with an initiative of their own, but that is not yet determined.
The HAFA program also bases modifications of home loans up on the financial information they receive about the homeowner. There is a waterfall process that they use to be sure that they reach the debt to income target ratio of 31%. These steps go in the following order: 1) Capital Arrears, 2) Reduce Interest Rate, 3) Extend Loan Term, 4) Forbear Principal.
Capital Arrears means that they are looking at the accrued interest and other eligible expenses used to modify the loan amount. The second step is taken because they are looking to reduce that interest rate to reach the debt to income ratio target of 31%, and that includes your mortgage payment. The third step is Extend Loan Term. This step is taken when they cannot reduce the rate enough to reach the target of 31% for the debt to income ratio. Once they know that they can’t reach the target, they will then extend your loan term to a 40 year loan. Lastly, the Forbear Principal means that the borrower can try to work out an agreement with the servicer. This is done by reducing the principal amount owed on the loan, but then it would be due later as a balloon payment.
The HAFA program was finalized and made public on April 5th, 2010. The only mortgages that qualify are any first lien mortgages that are not backed by Freddie Mac or Fannie Mae. They may or may not come up with an initiative of their own, but that is not yet determined.
The HAFA program also bases modifications of home loans up on the financial information they receive about the homeowner. There is a waterfall process that they use to be sure that they reach the debt to income target ratio of 31%. These steps go in the following order: 1) Capital Arrears, 2) Reduce Interest Rate, 3) Extend Loan Term, 4) Forbear Principal.
Capital Arrears means that they are looking at the accrued interest and other eligible expenses used to modify the loan amount. The second step is taken because they are looking to reduce that interest rate to reach the debt to income ratio target of 31%, and that includes your mortgage payment. The third step is Extend Loan Term. This step is taken when they cannot reduce the rate enough to reach the target of 31% for the debt to income ratio. Once they know that they can’t reach the target, they will then extend your loan term to a 40 year loan. Lastly, the Forbear Principal means that the borrower can try to work out an agreement with the servicer. This is done by reducing the principal amount owed on the loan, but then it would be due later as a balloon payment.
Freddie Mac Rates Drop More Than Expected
Rates dropped below 5% for the first time since March. Freddie Mac reports that the rates dipped to 4.93% which was 30 basis points the week ending May 13th. Adjustable rates ended up reporting even lower, and dropped all the way down to 3.95%. So, what does this mean?
It means that refinancing might take off, but as far as home purchase many sellers are still struggling to get out of their homes. This leaves many families considering listing their home as a short sale. A short sale is when the seller ends up selling the house for less than the homeowner owes on the home. This gives them an opportunity to get out of the home, while avoiding a foreclosure on their credit. This doesn’t feel good, but getting out from under an obligation that you can’t pay does a lot for the stressed out homeowner.
There are options out there, but it is a matter of finding the right professional to educate you on those options. I am a professional, and I can help you through every step of the home buying process, and I can help you get your home listed for short sale. I have the tools and the resources to help you get into a better position.
If you are in a good position to buy, I can help you with that as well. What I offer is a relationship, not a sale. When you don’t know where to go or who to trust, call me and I will show you the ropes. Buying a home doesn’t have to be a headache, and listing your home shouldn’t give you one either. I look forward to speaking with you today. Call me today at 310-498-2700.
It means that refinancing might take off, but as far as home purchase many sellers are still struggling to get out of their homes. This leaves many families considering listing their home as a short sale. A short sale is when the seller ends up selling the house for less than the homeowner owes on the home. This gives them an opportunity to get out of the home, while avoiding a foreclosure on their credit. This doesn’t feel good, but getting out from under an obligation that you can’t pay does a lot for the stressed out homeowner.
There are options out there, but it is a matter of finding the right professional to educate you on those options. I am a professional, and I can help you through every step of the home buying process, and I can help you get your home listed for short sale. I have the tools and the resources to help you get into a better position.
If you are in a good position to buy, I can help you with that as well. What I offer is a relationship, not a sale. When you don’t know where to go or who to trust, call me and I will show you the ropes. Buying a home doesn’t have to be a headache, and listing your home shouldn’t give you one either. I look forward to speaking with you today. Call me today at 310-498-2700.
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