Helping people out of foreclosure

TOO Funny!

2011-04-07T14:00:00.006-05:00

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Okay-- foreclosure isn't usually funny. But these people found a way to keep their home. Here it is:

These people agreed to allow this company to use this home as a giant billboard. In exchange, the company will pay their mortgage payment as long as the house remains as a billboard.

Wonder what the neighbors are saying?

You can read the entire article here.

Home prices drop AGAIN in Mpls/St. Paul Area!

2011-04-02T09:33:00.002-05:00

Another drop in our area home prices? Is that even possible?
Yes and Yes! The unfortunate news came recently from the Case-Shiller report. The report found that the Twin Cities area lost 3.4% value from December to January. That is the largest drop among the 20 metro areas that are included in the report.

What does that mean? It means that more people owe more on mortgages than than home is worth than before and recovery of the housing market (at least in our area) isn't here--- and hasn't even started.

Read more in the Star Tribune article.

Credit Curious?

2011-01-20T11:21:00.003-06:00

Whether or not you are having financial trouble, it is a good idea to periodically check your credit.

There are many websites that offer free credit reports but some of them are more scam than free-- signing you up for monthly monitoring when you get your "free' report. But, this site, AnnualCreditReport, is free and sponsored by the big three credit reporting agencies.

You can request your free reports once every 12 months.

Mortgage applications for purchases DOWN

2011-01-19T14:29:00.003-06:00

According to a story today on msnbc.com, mortgage applications for the purchase of a home have fallen.

Here's an excerpt:

The number of borrowers looking to refinance their mortgage rose last week for the third straight time.
The Mortgage Bankers Association says its refinance index increased 7.7 percent from the previous week. Overall, the mortgage applications index rose 5 percent this week.
But the number of people applying for a mortgage to buy a home fell 1.9 percent.

Continued signs of weakness in our housing market!

You can read the rest of the article here.

A NEW piece of advice

2010-11-19T14:32:00.003-06:00

In the world of loan modifications, shorts and foreclosures--- things change all the time.

Because of those changes, I have a new piece of advice for you facing hardship with your house. Don't move out until it's all over.

Dealing with the government on their HAMP and HAFA programs, can make for the smoothest possible solution for your housing problem. These programs have some strict guidelines and they are government monitored (we can hope there is accountability) but you won't even be eligible unless you're still in the house.

That being said, stay put and call me -- let's work together to try to solve the situation you're in!

Another local home-grown BULLY BANK

2010-10-18T13:29:00.003-05:00

Okay-- I have to vent. TCF come on! I understand that you are a big "little" bank. I understand you're no Bank of America, Wells Fargo or Citi and that you can't absorb losses like those monstrousities can. But that gives you no excuse to be foolish.

Sometimes, taking a small loss upfront beats the HUGE loss you will be taking later.

Let's talk specifics. I have a client. He has two mortgages. TCF holds the second mortgage for $60,000. This client is in foreclosure. He hasn't worked a steady job in a year and a half... and he's single.

Being the proactive, smart guy that he is, my client decided to attempt to short sale his home. We work hard-- we get an offer in the $120,000 range. The first mortgage company allows TCF $3000.

TCF is not satisified with $3000. They want more (don't we all want more--- I do!). So the ask for $10,000 from my seller at closing (CASH, $10,000 from a guy who isn't working!!) and a promissory note to repay the $60,000 loan in its entirity.

So what happens? Well, the client can't come up with $10,000. He offers to bring ALL he can to closing (about $400) and I offer to reduce my commission by $1000 to help. TCF still say no.

The deal is off... the first mortgage will foreclose and take the house. TCF will not get $3000. They will have to persue the client personally for whatever they can get.

But guess what--- the client doesn't have money, you took his last asset. So maybe bankruptcy?

TCF! You could have taken $4400. But you chose door number 2 instead--- you now get NOTHING!

Help! Wells Fargo is taking money from my bank account!

2010-09-27T10:00:00.003-05:00

We recently heard allegations, again, that Wells Fargo has taking money out of a homeowner's bank account with out their consent. These people were also customers of Wells Fargo Home Mortgage but did not have auto pay.

I called an attorney who we regularly use for home mortgage matters and he said it MAY be legal. If Wells Fargo bank account agreement has language allowing them to "take" funds owed to them directly once they are deposited into a customer's account. He also mentioned, it may be argued that Wells Fargo Bank and Wells Fargo Home Loans are two separate entities and therefore it is not legal... but ultimately it will depend on the agreement you made when you opened the bank account.

The best advice, keep your mortgage company and your bank separate. Use two very separate companies... and the attorney recommends keeping another account as well just as a back up-- so if funds ever do keep "taken," all of your cash isn't gone in the blink of an eye. Even then, you would need to remove cash from that extra account quickly to protect it.

That mattress may be the safest place yet!

Home Prices up... Good news???

2010-08-31T14:04:00.002-05:00

Today, Case Shiller came out with the pricing index for homes sales around the country. Minneapolis was up 2.5%!

Okay-- enough rejoicing. Remember this was in the wake of the homebuyer tax credits--homes were moving more quickly, many homes were getting multiple offers. In fact, we still haven't even closed all those files yet-- buyers have until 9/30 to close on agreements they wrote on or before 4/30.

Now, we are seeing lackluster showings and very low buyer activity. I expect we will see more than a 2.5% home price decrease before the end of 4th quarter.

And, to the rumors of renewing a homebuyer tax credit--- I say government BACK OFF. We still need market correction and you meddeling in the market is only prolonging the pain we will feel sooner or later.

Business Change for me!

2010-08-02T14:20:00.003-05:00

Just a quick announcement-- I have joined the Exit Realty Imagine office in Minneapolis. I am really excited about this change. I believe it will help me serve you better-- they have great systems in place.

Feel free to email if you have any questions about my change or short sales and foreclosures.

Americans' Credit Scores in the Tank

2010-07-15T21:27:00.003-05:00

FICO reported recently that the highest number of Americans (25.5%) now have credit scores of 599 or below. That's right-- a quarter of all Americans are now in the situation that they either won't be able to get credit or the credit the can get will be too expensive.

The Huffington Post had a great article (you can read it here).

According to the article, "More are likely to join their ranks (poor credit). It can take several months before payment missteps actually drive down a credit score. The Labor Department says about 26 million people are out of work or underemployed, and millions more face foreclosure, which alone can chop 150 points off an individual's score. Once the damage is done, it could be years before this group can restore their scores, even if they had strong credit histories in the past."

These two things coming together will only serve to slow our recover even further.

Are Modifications not happening because of disorganization?

2010-05-05T09:47:00.004-05:00

The answer is YES! Or is it malicious? A recent article at ProPublica talked to homeowners who were foreclosed on while in the modification process. Some were able to get the reserved and some not. Propublica is giving the banks the benefit of the doubt. I do not. I think this is done with intent. Do the banks really care about helping you?

At what cost? After the sheriff sale, the reversal is going to cost someone (the bank may have to pay but who does that cost in today's bail-out situations?. Here is an excerpt from the above mentioned article:

Hill was able to avoid eviction — for now. Chase reversed the sale by paying the man who’d bought the home an extra $19,500 on top of the $86,000 he’d paid at the auction.

And it's happening in Minnesota too. We're working with a client and their mortgage company, Saxon, who continually loses simple paperwork like the authorization to release information so we can talk on our clients' behalf. We have faxed and emailed one simple form no less than 26 times with electronic confirmation that it has been received.

And then there's the email I received last night. The person is working with Citi trying to get a modification. After going through multiple times dealing with Citi losing their paperwork, they were able to get a sheriff's sale suspended. But, whoops.... "So, the representative I spoke to on April 26th told me that I could reopen my files for the modification since I still qualify if I just fax in the documents and they'll suspend the foreclosure on my home. I faxed in the documents, they confirmed receipt of the documents, and yet my home was sold in the foreclosure sale on April 27th!"

I asked you at the beginning of this post if the banks really care about helping you. Really, I would like to know what you think. My experience has been that they do not. I can get them to modify (sometimes) and short sale (99% of the time) but I don't think it is because they care about helping... in those cases, I think they strongly believe they benefit... not that it is the right thing to do. You tell me!

Rental Scams Still Going On...

2010-04-27T10:31:00.003-05:00

Recently we spotted on of your listings available for rent on Craigslist. Our client is an investor and does normally rent his properties but this one he just wanted to get rid of. But upon closer inspection, we knew it wasn't him. The rents were just too low (you know too good to be true -- $700 month... so Mike from our office sent an email to the advertiser inquiring.

Here was the response:

God bless you for your interest about our House. This 3BR/2B is still available for rent. I am renting this house to a responsible and neat person or family who has the fear of God and treat my house as his or her own.

Presently Myself and my wife have moved out of the house due to my work transfer to Western Region in Africa and we will be away for good 5 years or more and this is reason why we are actually renting it out so if you are interested in taking good care of our house, then my family will be ready in accepting you as our new tenant who be fully in charge of our house.

If you really impress us by taking good care of our house then you will be allowed to stay as long as you wish okay.....This 3bedroom house 2bath. Ready to move in...

So get back to us on how you could take care of our house or perhaps experience you have in renting . Hope you are okay with the price of US$700/month with heat laundry facilities, air condition and so on and the deposit fee is $700... PETS ARE FULLY WELCOME! We are looking forward to hear from you ASAP.

So that will can forward you an Application to fill out and discuss on how to get the House for rent and also the Entrances keys and the document of our house,also are you ready to rent it now or when? Await your urgent reply. Thanks for your understanding.

We know they've had other inquiries because our office has been called by at least one potential renter who had driven by and saw our sign. Please do your due diligence! There are so many scammers out there!

NEW Short Sale Incentives!

2010-04-13T11:27:00.004-05:00

Recently, the government rolled out new short sale incentives. If you thought it wasn't worth it to do a short sale before, it may now be worth it!

A few highlights:
* Up to $3,000 moving allowance
* Larger pay-out to your second mortgage
* Possibility of having your home be a pre-approved short sale

Of course, only certain lenders and mortgage types are included. Call me today and see if we can make this a no brainer for you! Free cup of coffe gift card for all in-person meetings!

Bank Of America Slapped with TWO class action lawsuits!

2010-04-08T14:03:00.003-05:00

A couple of weeks ago, I was thrilled to learn that the law firm of Hagens Berman Sobol Shapiro filed class action lawsuits in Washington State and California against Bank of America.

The class action alleges that Bank of America does not respond to loan modification requests and had only granted 12,xxx permanent modifications under the HAMP program.

I loudly applaud! I have a client who was promised a modification reducing their interest rate to 2% back in Nov. 2009. They still have not received any paperwork and six months later are still making trial payments.

My only question is when are you bringing the lawsuit to Minnesota!

read the details here.

MPR NewsQ Blog features me!

2010-04-02T14:49:00.003-05:00

Lucky me! My comments about the "new and improved" short sale changes made it into one on Paul Tosto's NewsQ blogs. This is the second time in about a month.

Here's the link.

I'd love to hear if all of the recent changes have helped you.. but I bet I will only hear silence. Not many that have talked to have found relief in the plans.

Aurora and Fannie/Freddie Update

2010-02-25T11:31:00.002-06:00

Back in January, I wrote about a short sale I was working on with Aurora. The timeline has been horrific. But now we finally have approval. Hooray, right? Not so much! We received the approval letter this morning and it requires a closing by TOMORROW... the redemption period is up on 3/1/2010. So why wait 7 months, and then approve two business days prior to taking the property back? How many buyers can make their lenders work that fast? How many buyers are cash buyers?

Well, we're still not giving up! We are working with an attorney and the foreclosure attorney to pull one or maybe two more magic tricks out of our sleeves on this one. Stay tuned!

2009 A Record Year for Foreclosures

2010-01-14T12:15:00.003-06:00

MSNBC.com has an interesting article online today. It states that 2009 was a tougher year for foreclosures than 2008. It is interesting to me because I consistently hear from people that this crisis is over--- I DON'T THINK SO!

Here is an except from the article:
"The number of households that received a foreclosure-related notice rose 21 percent from 2008, RealtyTrac Inc. reported Thursday. One in 45 homes were sent a filing, which includes default notices, scheduled foreclosure auctions and bank repossessions.

In December, more than 349,000 households, or one in 366 homes, were hit with a foreclosure-related notice. That represents a 14 percent spike from November and a 15 percent jump from December 2008."

Combine the fact that people are still in trouble and that home values are continuing to slide, we have a recipe for a VERY long recovery and I question whether that recovery has really even started.

Aurora Loan Servicing (ALS) slowdown

2010-01-07T13:17:00.002-06:00

Happy New Year! My recent lack of posting has not been for a lack of mortgage and foreclosure news... but we all need a break around the holidays right? Plus we have been hopping with short sales and buyers!

One recent change in the short sale marketplace has been Aurora Loan Servicing. It used to be you could expect a 60-day turn-around on short sale decision with them. That timeframe has been blown out of the water! Now on one were working on... we are fast approaching the 120-day mark. They have done two BPOS ("unbaised" realtors telling Aurora what they think a realistic price for the home) by the same REALTOR (doesn't make any sense to me!) and we're still not a decision point.

This particular sale is a no-brainer. It falls in line with what other homes in the neighborhood are selling for.... but the delays may cause Aurora to have to add this home to their inventory of foreclosed homes... can we say add $50k to your loss??

Get on the stick Aurora!

Unsolicited Principal Reduction Offer from BofA

2009-11-11T15:35:00.001-06:00

Unsolicited Principal Reduction Offer from BofA

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INDY MAC throws HUNDREDS of THOUSANDS of dollars away!

2009-10-23T11:32:00.004-05:00

Indy Mac has put a new policy in place that wastes TONS of money.. probably not hundreds of thousands of dollar but more on the scale of millions of dollars. Indy Mac's new policy is that they will not consider a short sale after sheriff sale.

What does that mean? Well in a redemption state like Minnesota, the current owner retains rights to the property for SIX MONTHS after the sheriff sale. By refusing to do anything after that sheriff sale, they are still accumulating interest, fees, taxes, insurance and all the deferred maintenance expenses on that house during the six month period.

For what? Are they hoping price will be higher in the spring than they are now? Highly unlikely and they cost of holding this on their books, re-keying, hiring an eviction attorney, winterizing and BPOs with be in the thousands for EACH property. Then add more devaluation in the market place (I believe we have quite a way to go STILL before bottom) and this could easily be $100,000 on a single property!

WISE UP IndyMac! WISE UP Goverment! Stop the bleeding and start being proactive!

This is ridiculous!

Redemption.. after the sherif sale

2009-09-28T10:19:00.003-05:00

In Minnesota, we have a period of time after the sheriff sale that the homeowner still "owns" the home. During that time, they can "redeem" the property. That means they can pay-off the first mortgage for the amount the property sold for at the sheriff sale and get the property back OR sell the property, pay off the sheriff sale and walk away with any extra. A second mortgage would still need to be dealt with.

For example, we just had a home listed in Brooklyn Park that sold for $46k (he had owed the 1st $178k) at sheriff sale. We sold the property for $130k. He paid off his second mortgage and still walked away with $17k! These sales require no bank approvals (on the seller side) and can happen quickly.

Again, these sales are better for your credit than a full foreclosure. The banks have some latitude on how they report this.. but they can be reported as paid or satisfied. This is a better option than stategic foreclosure!

Call or email me to find out how much your home sold for at sheriff sale or if one of these redemption sales could work for you!

Are you feeling confident? Are things getting better yet?

2009-09-15T12:21:00.004-05:00

All the recent talk in the media about recovery doesn't match with what I am seeing and I am wondering how you're feeling.

I am still seeing lay-offs and job cuts, people I know are still nervous about losing jobs, hours and pay. I am still getting calls from people everyday who are struggling and don't think they can make it (don't forget you can email me for help!).

Post a comment and tell us all what you're seeing or send me an email... I want to hear from you what's really going on!

Even the Simpsons are in foreclosure!

2009-08-07T11:39:00.001-05:00

You know it's bad when even Homer and Marge face foreclosure!

Why Strategic foreclosure is dead (almost)...

2009-08-06T12:39:00.004-05:00

It wasn't so long ago that it was easy to buy a house and let your other house go into foreclosure. The term for this is Strategic Foreclosure.

Lenders have wised-up! (This seems to be one of the few areas on which they have wised-up!) Now most lenders are requiring 6 months of reserves for both properties or a substantial amount of equity in the current property before they will allow the purchase of an additional.

There are other options. If you truly can't afford where you're at... consider short sale-ing and purchasing contract for deed. There are also a small number of private lenders that are willing to lend to homeowners who have done short sales because of a short term financial "blip".

Read my other post on Strategic foreclosure:
http://helpwithforeclosure.blogspot.com/2008/08/strategic-foreclosure-is-it-your-plan.html

In case you need to hear it again, SHORT SALES benefit ALL!

2009-08-04T15:27:00.002-05:00

The Washington Times recently had a cover story on how short sales help buyers AND sellers. In case you needed to hear it from in impartial source, you can read it here!

Let me just add, short sales don't just help the buyers and sellers, they help our entire economy! Banks are able to liquidate losses months or years before they would otherwise have the opportunity and niehgborhoods are able to retain better home values than if the property went through full foreclosure.

Short sales are not an easy answer. Sometimes they don't work out and they require a TON of patience from all involved. But for now, they are the best answer we have to the foreclosure crisis.

Second Mortgages getting STICKY!

2009-08-03T14:22:00.005-05:00

I have said it before but so many people haven't heard it. If you have a second mortgage and go through foreclosure in Minnesota--- that second mortgage is not gone. It has detached from the property but now it wants to attach to you!

In order to get rid of the second mortgage you need to settle with them in some way or file bankruptcy. I think on of the best ways is through a short sale. The first mortgage will allow the second mortgage something in the negoiation and you may have to agree to pay the second some addition money (oftne in a romissory note) but you know where you stand with that second mortgage.

If you do nothing and go through the full foreclosure, the second has a right to place a defiency jdgement against you. With that type of judgement, they can garnish wages, tax returns etc...

Be proactive! If you have questions or want to talk to me personally call me at 612-701-7965 or email me anytime. As always, no cost or obligation!

Check out my other posts on second mortgages:
http://helpwithforeclosure.blogspot.com/2009/08/second-mortgages-getting-sticky.html
http://helpwithforeclosure.blogspot.com/2008/12/promissory-notes-and-second-mortgages.html
http://helpwithforeclosure.blogspot.com/2008/12/second-mortgages-getting-harder-to-deal.html
http://helpwithforeclosure.blogspot.com/2008/08/is-bremer-bank-bully-you-decide.html
http://helpwithforeclosure.blogspot.com/2008/06/my-second-mortgage-is-chasing-me-or.html
http://helpwithforeclosure.blogspot.com/2008/02/have-you-been-using-your-home-equity.html
http://helpwithforeclosure.blogspot.com/2008/01/what-happens-to-second-mortgage-during.html

Attn Twin Cities Residents Loan Modification Help Still FREE!

2009-06-24T10:24:00.003-05:00

Just a reminder, my team and I are still helping Twin Cities residents with free loan modifications. Here's what we do, we send you an authorization form, a finanical form and a list of financial back up required. After we recieve that information from you, we submit a completed package to your mortgage lender. They we follow up with them over their review process (can be more than 60 days) until they make a decision on your file.

We will do this for free! And a loan modification should always be your first attempt at saving your house!

Email me now to get started!

Success with Countrywide-- Short Sale APPROVED!

2009-06-22T12:19:00.003-05:00

I normally don't list our successes-- we've had the fortune of getting approvals on most of our short sales, but this one bears mentioning!

Our clients approached Countrywide requesting a loan modification about 18 months ago. They were denied. We put the house up for a short sale and shortly after had an offer to present Countrywide. It was a decent offer. They sat on that offer for five months and then closed the file for lack of response from the mortgage insurer.

A few months after that file was closed we had a new ($25,000 less) purchase agreement and after four(!!) additional months we finally have full approval.

Because we have worked steadily and aggressively on this file the seller (and Countrywide) avoided a sheriff sale. Now if only we could motivate that banks to act upon these promptly--- Countrywide could have saved a TON of money (not just the $25k that this purchase agreement netted them-- but also lost interest revenue, time spent with negotiators, tax expenses and more).

Don't get me wrong---- I am thrilled to get the approval!

Loan modification after sheriff sale... NO!

2009-06-16T14:43:00.003-05:00

I recently got an email from someone who had recieved a loan modification from Chase Mortgage. She was so excited! It was a payment that would work for her... she quickly signed the papers and sent off $1500 to get everything started. Only one problem... her sheriff sale had taken place two months prior.

She called Chase to check on the new payment and was told, we won't do a modification after sheriff sale.

I am not sure that this was an intentional blunder on Chase's part; however, they had sent her the modification documents on two different occasions.

My advice to her was to contact an attorney and at the very least get her $1500 back. My advice to you... be very wary of offers to modify after sheriff sale (in Minnesota). Every bank I work with (I think I have covered 99% of them now) is unwilling to modify after sheriff sale.

Email me if you have questions or would like FREE modification help!

Short Sale and Deed-in-lieu incentives FOR YOU?

2009-05-18T14:22:00.004-05:00

On May 15, the Treasury Department announced plans to encourage lenders and borrowers who can't stay in their home to complete short sales or deed-in-lieu of foreclosure.

According to cnnfn.com's article:

Under the new initiatives, for short sales and deeds in lieu, borrowers will get up to $1,500 to assist with relocation expenses. Treasury will also pay the servicers $1,000 to complete a short sale or deed in lieu.

This may be the best step so far in shaken us out of this housing crisis.... now if we could only speed up the process!

If you live in the Minneapolis/St. Paul area and are in mortgage trouble, call or email me. I can help! I help with loan modifications and short sales--- with no out-of pocket expense to you (and you may even get help with your relocation expenses!).

April Foreclosure numbers are a "shocker!"

2009-05-13T12:55:00.002-05:00

Many experts expected a slight drop in foreclosures because of the startling number of foreclosures in March... but that is not what happened.

Here is an except from the cnnfn.com article:

One of every 374 U.S. homes received a filing during the month, the highest monthly rate that RealtyTrac, an online marketer of foreclosed properties, has recorded in four-plus years of record keeping.

"April was a shocker," said Rick Sharga, a spokesman for RealtyTrac. "I would have bet on a dip because March foreclosures were so high.

Instead, filings inched up 1% from March and rose 32% compared with April 2008.

There were 63,900 bank repossessions, the last stop in the foreclosure process. More than 1.3 million homes have now been lost to foreclosure since the market meltdown began in August 2007.

What does May hold? My bet is another record breaking month. Let's see.

By the way, here are RealtyTrac's numbers for Minnesota:
342,038 NEW FORECLOSURES That is up 858 0.25% Mar 2009 vs Apr 2009

Huffington Post Slams Banks for not doing more SHORT SALES!

2009-05-08T21:05:00.003-05:00

This is a great http://www.huffingtonpost.com/2009/05/08/short-sales-banks-blockin_n_199099.html! Normally I am not a Huffington follower. But this article talks all about how banks could be saving so much money (and at this point a lot of it is our money, right?) by just doing short sales.

One of my favorite quotes from the article is from Sen. Dick Durbin. "The purpose of the debate last week was to try to create some impetus for the banks to start renegotiating these mortgages in a positive way and the industry fought it," Durbin, who last week concluded banks "frankly own the place," told the Huffington Post. "I think many of the banks have not operated in good faith when it comes to this mortgage foreclosure issue."

They also talk about specialized short sale training. The training referred to in the article is Certified Distressed Property Expert (www.cdpe.com). And, did I mention, I am a proud CPDE designation holder myself!

Kudos to Huffington for breaking a story I have been screaming about for three years!

FHA loans NO short sale after sheriff sale

2009-05-06T14:16:00.003-05:00

I have been working with a wonderful couple trying to sell their home. We finally received an offer we could work with. After much delay from Countrywide and a slight delay from the sellers the sheriff sale happened without being postponed. (Normally in a short sale transaction we can get the bank to delay the sheriff sale while they review a purchase agreement/ short sale package.)

Since the sheriff sale has happened Countrywide has said they will not consider a short sale after sheriff sale and that is an FHA guideline. I called HUD and their national servicing center and was told that that information is TRUE!

Using my very best logic, I can not understand why the government would allow this (much less it be THEIR own policy!). So after sheriff sale in Minnesota, homeowners have a six month redemption period. So now Countrywide won't have this property back for 6 more months, plus a couple extra months to get it back on the market--- WHEN THEY HAVE A WILLING, READY AND ABLE buyer now!

Come on! This is a ridiculous policy and going to surely cost all of us in lost property values and wasted tax payer dollars!

Countrywide now officially B of A...

2009-05-05T12:18:00.002-05:00

I just got a call yesterday on a short sale we've been working on for months (and months and months and months) with Countrywide... they identified themselves and being with Bank of America. Finally, the transition is complete. Now we just have to wait and see if the service and time frames improve!

Obama's Mortgage Plan-- not helping so many!

2009-05-01T10:35:00.002-05:00

Check out this Cnnfn.com video. I am seeing more people being denied for modifications now than even 6 months ago. Tell your story here! Post a comment!

WSJ article FORECLOSURES RAMPING UP

2009-04-15T13:47:00.005-05:00

The Wall Street Journal had a great article about banks ramping up foreclosures today. The foreclosure moratoriums are over (3/31/09) and if you have missed house payments and not been working out a plan with your bank... danger is imminent.

In the recent past, we have seen some homeowners who have missed more than 12 payments and still not even had their sheriff sale. I believe those days are over.

If you're in trouble, if you've missed payments.. get your "house" (the metaphorical house) in order. If you need help understanding the options open to you, email me.

Unfortunately, few people were actually helped by the moratorium. In fact, if you continued to miss payments through the moratorium, long term, your loan will be difficult to catch-up and stay on top of.

Deed-in-Lieu Promised, UNFULFILLED

2009-04-10T11:03:00.005-05:00

I recently received an email from someone who has had trouble with a promised deed-i-lieu from Indy Mac.

Here's what she wrote:

"We tried to enter a deed in Lieu of foreclosure but Indymac bank scammed us...
We called Indymac bank in December 2008 about the deed in Lieu was told to
attempt a short sale first , after that didn't work Indymac bank asked we send
them our financials and the proof of our listing for the short-sale along with
change/decrease in income.. We sent everything to them, on 022809.... We
called and called but was repeatedly told they are still working on the Deed in
Lieu to call back... However we still received notices about foreclosures and eventually a sale date of 040709... Finally we got so frustrated and asked to speak with a manager who then tells is 2 days before the foreclosure sale that it's too late and we were never even considered for a Deed in lieu because they never received all the required documents. Indymac bank never notified us they needed any additional documents. And refused to accept it even 2 days prior to the sale date! We feel like Indymac Bank purposely neglected the situation to gain the outcome they wanted all along... Is there anything that can be done?"

The answer is no.. once the sale has happened it is all too late. This is one of the problems with deed-in-lieu, they sound like a great alternative... no inconvenience of a short sale, no credit hassles of a full foreclosure, but the banks don't seem to be doing many deed-in-lieus.

There is no reason the bank would prefer a foreclosure over deed-in-lieu, in fact the full foreclosure costs them more (unless you have a lot of equity left the can take--- yeah right!) in legal fees.

My advice is to always get everything in writing-- never assume that the bank is going to do what you verbally hear on the phone. You may not even be speaking to a decision maker.

HOPE-Less for Homeowners Program

2009-03-26T11:43:00.002-05:00

Were you hoping the the hope for homeowners program was going to help you? According to a recent cnn.com article only one foreclosure has been averted by the program!

The article quotes a federal housing authority spokesperson. "As it stands now, we've only gotten 752 applications," said Federal Housing Authority spokesman Brian Sullivan. "And only insured one loan. Needless to say, the program isn't working terribly well."

And Congress has is working on updating the bill-- the House of Representitives has tackled the bill but made no "signifigant" changes.

Let's keep the program (please note my sarcasm) because according to the article, "The Congressional Budget Office now projects that HOPE for Homeowners could help just 25,000 mortgage borrowers over the next 10 years at a cost of $675 million."

Had mortgage trouble? When can you buy a home again?

2009-03-19T14:10:00.004-05:00

I know--- after losing you home one way or another (short sale or full foreclosure) you may feel burned... like you're never going to own again. But as you consider your options when facing housing trouble... or even before you've missed a payment, it is a good idea to know what your buying options will be.

There are some general guidelines now (these can change at anytime) a full foreclosure can prevent you from buying for 5-7 years, a short sale can prevent you from buying for 2-3 years. Now there are always exceptions--- some lenders may allow sooner purchases depending on credit repair, etc...

But one of the newest options I have seen is a short sale completion and near or immediate repurchase of a different home. I was recently involved in a transaction where the buyers had just sold their home in a short sale (they had not missed ANY payments) and they bought my seller's home. The closings took place within 30 days of each other.

They key to making this work is having a direct lender and being honest with your lender. The lender that worked on the above case required what they have a hardship and evidence that they would be saving a substantial amount of money.

These types of sales are difficult to coordinate, the timing has to be just right. But they are possible. Email me if you'd like to talk about buying after a short sale in your situation.

CitiGroup Helping Unemployed Homeowners???

2009-03-17T13:14:00.003-05:00

It is true... Citigroup has put a program in place that allows certain homeowners pay about $500 a month for up to three months. This program is designed for a short-term helping hand. Not all customers will qualify-- you must have a first mortgage with Citi. Check out the details--- and feel free to call or email me for help. (Unfortunately, I can only assist people in the Twin Cities area-- but I am always willing to talk or email.)

Is Obama's Foreclosure Rescue Plan helping you?

2009-03-12T13:15:00.005-05:00

I really want to know! Have you been helped by the provisions set out in the bill. Please comment or email me and let me know.

I am seeing no change in the response from banks for loan modifications.

2009-02-11T13:53:00.003-06:00

I recently received an email from someone in trouble:
"We are in financial straits right now. We have refinanced and gone through home retention and even looked into deed in lieu,short sales you name it. We have a townhouse and our mortgage increased to the point we couldn't afford anymore. Spoke to the mortgage company and decided on a short sale. This was May of 2008. It now February 2009 and we are still in a very bad situation. We owed past amounts from our homeowners association. We were told a lien wold be placed on our home and it was. WE had prior applied for deed in lieu.We were just informed recently it was denied because there was a lien. We tried desperately for the association to release the lien as we promised to make the common charges faithfully, which we are. I asked them since we have this agreement can the lien be released, the answer was no, not until all amounts are paid in full. The balance is alittle over $1000. For this small amount they will not release the lien giving us a chance to apply for deed in lieu.We are honest people and do not want to just walk away from our obligations, but no one seems to be on our side lately, and we don't know what to do anymore. My husbands hours have been decreased and i am permanently disabled receiving social security. Things are extremely stressful now, and we have a family to support we have 3 children.I was searching on the computer hoping to get some relief or advice or help and found this website and your message and decided to send an e-mail with hopes you may read it and possibly offer some kind of assistance for us. We are at the bottom of the barrel right now and have no where to turn. this stress has made us ill from it all. We have never done this sort of thing contact strangers but we don't have lots of choices right now."

I suggest in this situation, they should contact their lender and offer a compromise. I would suggest that if their lender will not accept the property with the $1,000, they offer their lender a promissory note in the amount of $1,000. That way the lender can have the property now and the hopes of collecting that $1,000. Otherwise, if the lender refuses and they take the property during foreclosure they will be stuck with that $1,000 lien anyway. It is a long shot but is the best answer for both the borrower and the lender.

Send me your questions--- I always try to answer promptly!

Horray for Attorney General Lori Swanson!

2009-02-03T10:17:00.002-06:00

The Minnesota Attorney General, Lori Swanson, has files suit against more foreclosure consultants who are charging up front fees for their loan modification services.

She states, "Nobody should ever pay money in advance to a company promising to save their home from foreclosure." Read the full story here.

I agree Attorney General! Way to go! No consumer should pay for service before they know what they are going to get for their money. I do loan modification assistance for free (right now, I can only work with people in Minnesota)!

Are you considering paying for loan modification help? STOP! Think Twice!

2009-01-13T14:09:00.004-06:00

I have been getting a ton of phone calls and emails lately from people trying to decide who they should choose to modify their loan. (A loan modification is a great tool to make your loan into a loan that you can afford-- it is a fantastic tool because it can help you avoid foreclosure and save the bank a ton of money)

Here's basically what one recent inquiry said: I have been approached by two different companies offering to modify my loan with my lender. One will charge me $1500 and one $3000.

My question is, are these companies guaranteeing their services? You wouldn't pay a roofer to re-roof your home without a guarantee. You don't buy items that don't have some warranty that they will work. Why would you pay someone (quite a bit of money besides) without any guarantee that you can even get a modification... and how can you be sure that they have even done any work on your behalf?

I know there are a ton of people out there just like me who will help you (in your area) at no charge. There are no guarantees-- no one can promise they can make your lender change.

Promissory Notes and Second Mortgages

2008-12-19T09:44:00.007-06:00

As time marches on and short sales are becoming more and more common, banks are changing their short sale practices. one of the most interesting change in practices has been the rise in the use of promissory notes when releasing second mortgages.

Here's the deal, when a short sale is approved, the second is generally settling for not much -- the first typically will allow them anywhere from $1,000 to $3,000. (Without the short sale, the second will get nothing through the foreclosure process but does have the right to pursue the borrower for the entire amount owed through a judgement later.**) The seconds are deciding that they can push that borrower to sign a long term unsecured loan to pay back a portion or all of the remaining second. Many times these notes are for 10 years with no interest.

Thought I am NOT an attorney, several attorneys have stated that this debt can be wiped away in bankruptcy--- as well as a later judgement may be wiped away.

So why discourage their borrower for completing a short sale? That is an important question--- and i am not sure I know the answer. My belief is that short sales done quickly can help lessen our property value decline and, of course, save neighborhoods. I also believe that short sales save first lenders vast amounts of money. But this trend will encourage borrowers to do nothing--- or just agree to anything-- and later file for bankruptcy. THIS IS BAD POLICY!

Here are a few recent examples:
--- about $180,000 owed on the second, bank asked for $20,000 in cash at closing and $60,000 promissory note
--- about $15,000 owed on second, bank asked for $4700 at closing and remainder on promissory
--- about $35,000 owed on second, bank asked for $5,000 in promissory.

Yes, the second loans were taken out by the borrowers. Yes, the borrowers owe a debt. But I think the cost of not doing short sales and forcing borrowers into bankruptcy is WAY too high.

What do you think?

**in Minnesota-- your state may be different. Check with an expert in your area.

Check out my other posts on second mortgages:
http://helpwithforeclosure.blogspot.com/2009/08/second-mortgages-getting-sticky.html
http://helpwithforeclosure.blogspot.com/2008/12/promissory-notes-and-second-mortgages.html
http://helpwithforeclosure.blogspot.com/2008/12/second-mortgages-getting-harder-to-deal.html
http://helpwithforeclosure.blogspot.com/2008/08/is-bremer-bank-bully-you-decide.html
http://helpwithforeclosure.blogspot.com/2008/06/my-second-mortgage-is-chasing-me-or.html
http://helpwithforeclosure.blogspot.com/2008/02/have-you-been-using-your-home-equity.html
http://helpwithforeclosure.blogspot.com/2008/01/what-happens-to-second-mortgage-during.html

Second mortgages getting harder to deal with...

2008-12-09T14:02:00.006-06:00

Second mortgages have always been hard pressed to profit or even recover much of anything in a short sale or foreclosure.

Dealing with them on short sales was easy (okay-- not easy but easier.) The attitude last year was often that they (2nd mortgage company) was lucky to get $1,000... they should take the money and run because if the house went through full foreclosure they would be left with nothing. Granted, they had the right to pursue the borrower for a deficiency judgement--- but what are the chances they can collect?

Now many banks are playing hard ball. I am dealing with a short sale now where the second mortgage was owed about $180,000. The first mortgage company allowed them $3,000. The second mortgage asked the sellers to come up with $10,000 CASH at the time of closing and $60,000 in promissory notes that will be paid back over a long term with zero interest.

Will the second mortgage get that? I say no, how can people in foreclosure come up with that kind of money? Even after the sale, they still will have living expenses.

So what should the sellers do? I think they have no choice. They really need to do the short sale because the seconds are becoming so aggressive, they will pursue them for a deficiency judgement. Sure, they can declare bankruptcy and maybe the judgement will be wiped clean. But there are costs to the seller there too.

Even more reason (especially if you have a second mortgage) to work out a plan with your mortgage company and don't just walk away.

Check out my other posts on second mortgages:
http://helpwithforeclosure.blogspot.com/2009/08/second-mortgages-getting-sticky.html
http://helpwithforeclosure.blogspot.com/2008/12/promissory-notes-and-second-mortgages.html
http://helpwithforeclosure.blogspot.com/2008/12/second-mortgages-getting-harder-to-deal.html
http://helpwithforeclosure.blogspot.com/2008/08/is-bremer-bank-bully-you-decide.html
http://helpwithforeclosure.blogspot.com/2008/06/my-second-mortgage-is-chasing-me-or.html
http://helpwithforeclosure.blogspot.com/2008/02/have-you-been-using-your-home-equity.html
http://helpwithforeclosure.blogspot.com/2008/01/what-happens-to-second-mortgage-during.html

Are we on the right track for fixing the housing crisis?

2008-10-29T14:50:00.005-05:00

Are we on the right track for fixing the housing crisis??? I think not. The recent Case Shiller report shows another year-over-year home price decrease (for August) ... and I keep hearing from people around the country telling me that they have not missed a payment yet but trouble is coming for them.

Even today, Whirlpool announced job cuts of 5,000 by the end of the year--- how many of those people will find new jobs within a few months? How many will end up in foreclosure?

What do you think? Tell me where things are at for you. Tell me if you're in trouble or if trouble is coming or you. I would love to share with everyone the truth of where things are at.

No Job? No Modification... No Help... What now?

2008-10-22T11:22:00.002-05:00

Unemployment rates are creeping up... even my state of Minnesota which has normally fared well in times of job losses has been hit and I have said it before (and I will say it again) there are many more losses coming.

So, what happens to your mortgage when you lose a job and can't make the payments? It is simple... nothing good. The mortgage companies will not consider you for a loan modification without income. Your best bet is to get a job QUICK.. easier said than done, right?

The one bright spot is that you now have a hardship. You will qualify for a short sale (if you don't have equity) but with no job... who wants no place to live?

Consider this.. with a short sale the timeline is long and can delay a foreclosure and be easier on your credit. Here is an example, you lose your job and put the house on the market. First payment is missed and you get an offer at 30 days. The bank may take up to 16 weeks (YES 4 MONTHS!!) to respond... meanwhile, you are not making payments... but with a viable offer most banks will not start foreclosure proceedings. You get an approval and close... you have no foreclosure on your credit and about 6 months has passed-- hopefully you have a job and probably a lower rent payment than your original mortgage payment.

Not an easy answer... but it helps keep you in a position where you could be back in your own house in as little as two years.

That Tiny Windshield Crack....

2008-09-30T13:16:00.003-05:00

The best way that I can describe what is happening to our current economic situation is that it is a tiny crack in the windshield... pressure is mounting and soon the tiny crack will spiderweb. More foreclosures are going to happen, more people will lose their jobs and so on and so forth.

I know things have not stabilized, and will not stabilize for quite some time to come. With or without a bailout we are in for long-term hurt.

Just know... there are always options for financial trouble. Often the sound really bad.. foreclosure, short sale, bankruptcy... but once you are on the other side of trouble... it will be okay.

Starting over didn't mean you failed!

Thoughts from someone in the throws of a short sale....

2008-09-08T21:45:00.003-05:00

Good evening! I just wanted to share some thoughts from one of my client friends who is the middle of the short sale process right now. I think it helps to hear from someone who is there how tough it can be to go through all of this... but as they say, it is much tougher to not make any decision.

"Hi Carrie ... Read your blog, very well written as normal. I am not fully out of the woods, but wanted to share a thought looking back. It is still hard emotionally to lose a home .... etc. However; the pain I feel emotionally now pales in comparison to the pain I felt before I made the decision to short sale . Even though my credit is zapped .... I feel I now have a future and direction for my family, the toll it was taking on me was unexplainable!!!

All those sleepless nights waking up so emotionally disturbed feeling like such a failure, when some one can truly walk that path for a few years..... it was Hell. So I in no way wanted to lose my house ... BUT no house is worth that much pain.
Just some personal thoughts this morning after read your blog. I am truly grate full for all your help for my family .... I hope to be one of your
many success stories!!! Appreciate you Carrie .. don't know how I could
ever repay you for your tremendous support!!!"

After blushing quite a bit, I want readers to know that I am easy to reach with questions... I answer my phone, I check voicemail and, easiest of all, I respond to email. Call or write I would love to help you make whatever decision is right for you and your family.

Strategic foreclosure... is it your plan?

2008-08-28T10:59:00.004-05:00

Strategic foreclosure is just one of the option many people heavily consider. This is when a homeowner, who has not yet missed any payments and their credit is still "A" credit, purchases a new home and let's their old home go into foreclosure.

There have been many reasons why people are doing this... the are disgusted by today's falling prices, they have no equity and can't refinance, the bank won't help them modify their loan because they aren't in trouble yet, they see trouble coming and want to get out before it hits, they have tried to sell and just don't have any interest and other personal reasons.

There certainly are some ethical questions about doing this-- but I understand it can be hard to think ethically when your family is facing being out on the street-- and many people feel their bank isn't acting ethically. I am not saying I think this is right... but I do understand how and why it happens.

However, this is becoming a more difficult way out. The lenders have been catching on and Fannie Mae has just changed their lending guidelines. My take on the new rules are that when you are purchasing another home as a current homeowner, you must have 30% equity in the already owned home. If not, you need to show that you have six months of reserve funds for BOTH properties!

Read my other post on strategic foreclosure:
http://helpwithforeclosure.blogspot.com/2009/08/why-strategic-foreclosure-is-dead.html

Is Bremer Bank a Bully? You decide.

2008-08-25T14:49:00.006-05:00

Okay... here's the situation. I have a client whose house we are selling. We recieved a purchase agreement and have negotiated a short sale with the first. The second, held by Bremer, is owed +/- $32,000. We are attempting to settle the second with them. The first has allowed them $3000 to be paid off (much higher than the usual payout of only $1,000!) and that was not enough. We came up with more... the client found some change under his couch cushions, his mother came up with some--- I have even pitched in a bit of commission to come up to $10,000.

The request has been denied. They want a personal loan from their former borrower so the amount they eventually get repaid is $25,500 (85%!!!). They are offering a three year note at zero interest to "help him out."

Now, let's say my client declines this request and lets the first mortgage take the home in foreclosure. Bremer claims they plan to go after him with a judgement.

So what are they trying to do? I understand no one likes losses... I wouldn't like to give up $20,000 of my money either... but is it better to get $10k now or force someone into bankruptcy with a judgemnt and get little, or perhaps, nothing?

Check out my other posts on second mortgages:
http://helpwithforeclosure.blogspot.com/2009/08/second-mortgages-getting-sticky.html
http://helpwithforeclosure.blogspot.com/2008/12/promissory-notes-and-second-mortgages.html
http://helpwithforeclosure.blogspot.com/2008/12/second-mortgages-getting-harder-to-deal.html
http://helpwithforeclosure.blogspot.com/2008/08/is-bremer-bank-bully-you-decide.html
http://helpwithforeclosure.blogspot.com/2008/06/my-second-mortgage-is-chasing-me-or.html
http://helpwithforeclosure.blogspot.com/2008/02/have-you-been-using-your-home-equity.html
http://helpwithforeclosure.blogspot.com/2008/01/what-happens-to-second-mortgage-during.html

Deed in Lieu of Foreclosure / 1099 Question

2008-08-11T14:11:00.004-05:00

I recently received an anonymous comment about 1099s and deed-in-lieu of foreclosure. The comment is interesting and follows:
"I was just approved for a deed in lieu. I owe $258,000 and the home was appraised at $210,000. Will I have to pay on a 1099? I got an appraisal back in December for $275,000 but countrywide did another appraisal for the deed in lieu and said it came in around $210,000. So what can I expect now in terms of being free of this house?"

The commentor is correct that they will get a 1099 and there are so many questions about the amount that the 1099 will reflect that I can't give a precise answer. But the bigger issue may be the borrower's actual tax liability. The mortgage relief act may protect the the borrower. Otherwise they may be able to plead insolvency to the IRS which will shield them as well... Only a CPA or tax attorney can answer these questions specifically and I am neither.

After the Deed in Lieu, this homeowner will be free of the house. They will no longer be responsible for the taxes, insurance and other liabilities that go with the house.. so that part is very good.

And remember, not every bank will accept a deed-in-lieu and if they do they usually have special requirements in order to qualify.

How can you ABANDON your property but still be LIVING there? SCARY NEWS!

2008-07-16T10:59:00.004-05:00

What a concept! You could be living in a abandoned home and not even know it! Our state legislator recently passed a clarification on the redemption period law. That clarification (chapter 178: HF 3473/ SF 2918) states that a borrower's failure to appear at the hearing after service of process is conclusive evidence of abandonment by the borrower.

So basically, after your home goes to sheriff sale the bank can ask to have your redemption period shortened from the standard six months to a measly FIVE weeks! And if you don't show up for that hearing, the court assumes that you have abandoned the property.

It doesn't matter if the home is clearly occupied.

It is unclear how many banks are going to take advantage of this HUGE boon for them.

My advice to you-- open all your mail, read everything that gets served to you or posted on your door.

And, if you are as outraged as me... write to the bill's authors Rep. Debra Hillstrom and Senator Linda Higgins.

** This information came from the Minnesota Association of Realtors, Legislative Update.

IndyMac Mortgage failure leaves a BIG Unknown

2008-07-14T14:52:00.003-05:00

After a stunning collapse of not only Indy Mac's mortgage business, their bank has crumpled... regulators stepped in and stopped the run on the banks... but approxiamtely 10,000 customers had money in excess of what the FDIC will cover... their losses could be steep!

What does this news mean for IndyMac mortgagees? Too soon to say... the new servicer may or may not be open to short sales, loan modifications and the like... but only time will tell.

My Second Mortgage is Chasing Me! or What Happens to a 2nd After Foreclosure

2008-06-07T09:22:00.006-05:00

A reader sent me this email last night:

Hi Carrie,
I had a 1st and 2nd mortgage on my home which went into foreclosure. Since the foreclosure went through, the house has been sold (so I think since there's someone living at the house now.) During the redemption period, I was in contact w/ the mortgage companies on doing a short sale. There were several offers but the banks did not accept them. Well, I haven't heard anything from the first mortgage after the redemption period, but have been receiving default notices from the second mortgage. I am scare to call them because I'm afraid they want to come after me for money & home I don't have, and I'm just really scared, period. I don't know what to do. I suppose the right thing would be to call them and see what's up, and if worse comes to worse, just make some kind of payment arrangement to pay off the second mortgage. It just seems wrong to pay for a house that I no longer have, but I'm pretty sure the bank feels cheated by me too.

Thanks for reading this, and any info you have would help.

He is right to be worried! When the first forecloses, the second is left with nothing (unsatisfied) and has the legal right to try to collect their money from you. They can even go to court and get a judgement against you for the mortgage amount. Your best bet is to talk to them. Often times, you can get them to agree to accept a much less amount paid over years (often 10 years) to consider them satisfied. In fact, I have seen one 2nd mortgage reduce their amount owed from $168k to only $10k!

The gentleman who emailed asking this question later emailed me the conversation he had with his second mortgage company... here's how it went:

This second mortgage was $50K. They verified that the redemption period is over and as far as I know, the house has been sold which satisfied the first mortgage. They do see a record that there was some kind of short sale discussion in the past but that didn't work out. This was our conversation.

Rep: You still owe on this second mortgage, what do you have to bring to the table to settle this account?
Me: I'm not sure. I don't have that kind of money. I was calling to see what my options are.
Rep: Well, sometimes we're willing to accept settlements way less than what the loan amount is,for example, 20%. In your case, it would be $10K. What do you think is an amount that you can pay to settle this?
Me: Well, I was thinking maybe $5K and if I could make monthly payments on that. I could probably afford $200 per month?
Rep: OK, I can't make that kind of decision but I will get you over to the team that can make that decision, who you can work with. What I've been seeing is people making an offer to make payments for a number of months, then the committee makes a decision to settle for less than what the loan amount is, usually as low as 5%.

Being proactive could save him from filing bankruptcy or could save him $45k! This agreement with the bank is an unsecured debt. If you fail to make the payments as promised somewhere down the road, the bank then has another decision to make. And that decision will have to consider whether or not it is worth pursuing you for a few thousand dollars.

Check out my other posts on second mortgages:
http://helpwithforeclosure.blogspot.com/2009/08/second-mortgages-getting-sticky.html
http://helpwithforeclosure.blogspot.com/2008/12/promissory-notes-and-second-mortgages.html
http://helpwithforeclosure.blogspot.com/2008/12/second-mortgages-getting-harder-to-deal.html
http://helpwithforeclosure.blogspot.com/2008/08/is-bremer-bank-bully-you-decide.html
http://helpwithforeclosure.blogspot.com/2008/06/my-second-mortgage-is-chasing-me-or.html
http://helpwithforeclosure.blogspot.com/2008/02/have-you-been-using-your-home-equity.html
http://helpwithforeclosure.blogspot.com/2008/01/what-happens-to-second-mortgage-during.html

Mortgage Defaults Jump... Are you worrying?

2008-06-05T11:07:00.002-05:00

"Mortgage delinquencies for U.S. homes in the first quarter of 2008 jumped 53 basis points from the previous quarter to 6.35% of all loans outstanding, marking a 29-year high, according to the MBA's National Delinquency Survey released Thursday." This is from an article at Mortgage News Daily today.

While we keep hearing positives, the foreclosure rate has not slowed. And it seems the mortgage companies are just as hard to work with for options to foreclosure.

If you are worried, or the process has started for you, don't hide under the bed. Call or email me or a resource in your area. If you act quickly, there may be options... the longer you wait the fewer your options!

Yikes! 1 out of every 519 Households in Foreclosure!

2008-05-14T12:49:00.003-05:00

According to a Bloomberg article, April's foreclosure numbers are dramatically higher--- 65% higher! That means currently 1 in every 519 households is in some stage of foreclosure. If you aren't in a stage foreclosure-- someone you know probably is! The article pushes partial blame on loan modifications.

They state, that homeowners are not able to get modifications done because they can't get to a live person. I know that third parties often have greater success... maybe because they are non-emotional.

The article predicts more foreclosures looming as people lose their jobs due to the softening economy.

If you are in trouble or fear you may be soon---- the worst thing you can do is nothing! Start talking to your lender, call me or someone like me, just do something!

Jose Canseco is a HOUSE WALKER!

2008-05-02T10:23:00.005-05:00

According to the LA Times Real Estate Blog, Jose Canseco walked away from his 7300 square foot California mansion. He left the bank with a mortgage of more than $2.5 million.

From the blog, "In comments to the TV show "Inside Edition," Canseco says, "It didn't make financial sense for me to keep paying a mortgage on a home that was basically owned by someone else."

There is a picture of his house at the TMZ website.

If you are a regular reader of my blog, you know how I feel about just walking away from your home... maybe we're jumping the gun, maybe he tried other options to solve this problem... but according to his quote above and the LA Times, it appears he didn't.

If you did simply walk away, shame on you, Jose!

Case-Shiller Housing Price report for Minneapolis -- Is There No End?

2008-04-29T10:16:00.006-05:00

The sky may not be falling... but the prices here sure are! The S&P Case-Shiller Report just came out today. The report covers 20 major cities and Minneapolis is one of them.

According to an article at CNBC, overall the 20 market's prices dropped by 12.7% “There is no sign of a bottom in the numbers,” David Blitzer, chairman of the index committee at S&P, noting that all 20 metro areas have declined for six straight months.

Watch the video here:

What happened in Minneapolis? According to the report, from 2/07-2/08, our home prices were down 13%. Our home prices are where they were October of 2003!

Want to know where your home's value is today? Click here, fill out a form and I'll let you know.

1099 Mortgage Debt Foregiveness Rule Update

2008-04-28T13:49:00.003-05:00

I have been getting questions everyday about the IRS' rules when it comes to the mortgage debt foregiveness act. I am not an attorney or a CPA, so talk about your situation with a professional in those areas.

In the case of foreclosure, short sale or even just walking away, it is a safe bet that you will get a 1099.

I have done a lot of recent research for people becuase the law seems very unclear about which circumstances it applies to. Here is what I have been able to figure out.

It appeared that for many homeowners, the only way to relieve yourself of the tax from forgiven mortgage debt would be to meet insolvency requirements. In a foreclosure situation, you may already meet them. The financial picture usually isn't looking so hot!

With the insolvency, assigning your assets with values and the extra paperwork can be tricky.

But according to BankRate.com, there is another out. The Home Sale exclusion provision applies here. For more info click here to go to their article. Basically, anytime you sell a primary residence (lived in by you for 2 of the last 5 years) you can exclude gains up to $500,000 for married people filing jointly (less if you are single) from the sale. The theroy behind this is that the mortgage forgiveness is really a "phantom gain." Much easier to figure out!

I did ask my friend, Judi Fluger who is both a mortgage consultant with Wells Fargo and a tax attorney, and she confirms that this is correct. Again, with any tax questions about your specific situation please contact your own accountant or attorney. This is not intended as advice.

Earth Day Tent House Fun

2008-04-24T09:33:00.008-05:00

Looking through Craigslist the other day, I found a fun housing option that I just -had to share-- a little off topic, I know, but fun none the less. And because it was just Earth Day it fits!

Dan and Katie in Hawaii are selling Jungle Tent Houses for $3300! The tents are 16' X 20'. Dan and Katie show pictures of their furnished Jungle tent complete with working kitchen, bath, composting toilet. They live their with one child and have another on the way.

I asked them if they had sold any tent houses in the colder states like our chilly Minnesota. According to Katie, "None in colder states yet, though. But they were built for colder climates, with the cotton/wool insulation and wood-burning stove vent."

For them this was a natural transition. "Dan and I bought 4 acres on Hawaii Island and we set one up to live in with our toddler while we build our green cob home (like adobe but more freeform.) We like living in alternative structures. We used to live in a 1978 RV while living in San Diego that we fixed up and called "The Shag Mobile." I guess that's where it all started!In a couple of months we will have a book ready explaining exactly how we set up our off-grid home."

I will be back to business soon.. I will have a new posts soon about what I recently learned about the mortgage debt forgiveness law and recent real estate sales figures and how they may affect people in or on the brink of foreclosure.

The Short ReFi, is it an option or a long shot?

2008-04-14T14:13:00.004-05:00

I have been researching short ReFinance products. It is an interesting option and could be ideal for people who really want to stay in their homes. The Short ReFi is basically the bank creating a new loan for you where you are owing less than before. The old loan is considered satisfied.

Some of these new loans can be FHA insured making them much more attractive for banks to offer. However, I talked to Barb Crea at Fairway Mortgage and she pointed out some flaws. Much like a loan modification, you first and foremost have to get the bank to agree to take less and satisfy your old mortgage. She said, even worse yet, many investors aren't interested in buying this type of mortgage security so the Short Refi is very hard to actually get to closing.

Alex Stenback (behindthemortgage.com) told me that basically it is a catch 22. Now, I am paraphrasing, if you've missed a couple of payments, it will be hard to get a new loan. If you haven't missed any payments, it will be hard to convince your current lender you need a short refi.

Because, these products are difficult to close, many loan officers don't want to spend their time attempting. I was told by more than on loan officer that the consumer needs to negotiate the approval on the short amount... and I think that is where you need the most help!

By all means try for a short refi-- what do you have to lose. but like the loan modification--- don't hold your breath. And make sure you have back up plans in place. Like always, email or call me if you want to talk about your specific situation.

Abandonment even before foreclosure!

2008-04-06T15:58:00.004-05:00

Are people really considering walking away from their house before they have even missed a mortgage payment? Before the bank starts foreclosure proceedings? Before the sheriff's sale? YES!

I know. Things are tough. People here are losing jobs, and from the news this past week, more job losses are coming. Gas and grocery prices are going up. At least the home heating season is nearing an end.

There are so many people that are just barely hanging on. I have heard from quite a few of you in the last week. Quite a few who were thinking about walking away. I will tell you the same thing I told them. DON'T! There are still options (if you want details read previous posts or email me), in fact all of the options are still open to you when you haven't missed a payment.

Please, don't be so embarrassed that you don't ask for help. Help is available... even if you just want "a divorce" from your house.

As I have said in previous posts, by taking action you are saving your neighborhood by not adding another abandoned house to our landscape.

Your Financial Sob Story- Another Requirement

2008-04-01T11:50:00.004-05:00

Another requirement for requesting a loan modification or short sale is a financial worksheet. Your mortgage company really want to know how much you're making and where it's going. I can send you a blank worksheet just email me.

The bank will carefully look at the bottom line. If you are too far negative, they won't consider a loan modification but still may consider and even encourage a short sale or outright sale. If you are too far positive, they are going to tell you to start paying your bills.

So the big question is what number do they really want to see? And the answer is-- hard to say.

The mortgage companies are all following different guidelines on different days... or maybe more plainly, there seem to be no rules, only exceptions.

We never know what they are going to approve, so we ALWAYS ask. What I am telling you (again and again and again)is don't give up. Ask the mortgage company for help. We will help you ask them if you want us to (again-- no charge) but they might just help you. Could you be worse off if the mortgage company decides not to help you?

Not just another sob story... what your bank REALLY wants to hear

2008-03-19T10:33:00.005-05:00

If you are in mortgage trouble and are looking for any kind of assistance from your mortgage company, you will need to put together a packet of information for them. Part of this packet is the hardship letter.

The letter is exactly what you would expect, an explanation of your hardship. What happened to you to make you fall behind, how you would like the bank to help you and what has changed to make you capable if they are able to help you.

I suggest that you keep your hardship letter short-- 1 page at most. And don't whine, they have heard all of excuses in the book! Be sure to include your loan number(s), address of the property and a way for the mortgage company to get in touch with you.

The most important part of the letter is how you want them to help you. Be specific. If you just want out, tell the mortgage company you want them to consider a short sale or deed-in-lieu of foreclosure. If you want a modification, tell the mortgage company what payment/ interest rate you could make work-- and if you have any cash to get a modification started. Without a specific request from you-- the bank may do nothing or come up with something that has a snowball's chance of working long term.

Close by telling them how things have changed so that you could work under the new plan or if you're asking for a short sale or deed-in-lieu why nothing else is going to work for you. Be sure to thank them for their time. A little sugar never hurts!

If you would like me to review your hardship letter, would like me to email you a sample letter or need help assembling your "help" packet.. call or email me.

Falling Home Prices in the Twin Cities (Again!)

2008-03-13T13:56:00.002-05:00

WCCO is reporting from several Realtor groups that the metro experienced a 12.5% home price decline in the month of February. Bad news!

But is it really a big deal for people on the brink or foreclosure? Or for people who have home equity line of credits? Or homeowners who have ARMS that will be adjusting soon?

YES YES YES and YES! With the market depreciating and credit markets tightening (loans are becoming more difficult to get) people who most need to refinance or sell BEFORE they get into trouble, may not be able to.

Here is a prime example: Let's say you bought your home in 2001 for $200,000.In 2005, you refinanced to make improvements (or whatever)and your new loan was for $250,000. If you took out a 3 year ARM your rate will adjust soon. And let's say with market conditions where they are you could sell for $250,000. Do you have cash to pay for all the selling expenses? Or if you need to refinance because you can't afford the payments (for whatever reason) many banks are only allowing a 80% ratio of home value to loan amount and a refinance won't work for you.

People who still have size able equity or can stay put for several years are fine-- for them this really doesn't mean anything. It is an unrealized loss or loss on paper.

But let's hope that the job market stabilizes, oil doesn't continue to soar and that groceries settle down. If they don't, the rush of people who have to get out of their homes will push deprecation much farther.

Check my links list to the left. There is a link there to find out what your home is worth today. It is fast and free and like everything else here, there is no obligation!

My new loan is great but guess what... I'm in trouble again!

2008-03-08T09:16:00.003-06:00

Lots of families are being granted loan modifications by their lenders. New terms like much lower interest rates, forgiveness of a portion of their debt or adding missed payments to the principle so the loans are current again. Homeowners have to jump through hoops to get these "prizes" like supplying financials, a hardship letter and proof of income (email me if you want a packet to get you started)and even after supplying all of that information they may or may not be approved.

But worse yet is that for many people who get the modification, they still can't keep up. According to a San Francisco Chronicle article “Litton said the company did more than 2,000 loan modifications in September, 1,500 of them for people who had already missed payments. This month it expects to modify more than 3,000 loans, he said.”

It seems to me that the loan modification program, like the government "band-aids" are simply a way to buy time. the banks get a couple additional payments, homeowners extend the time they get to stay in the home.

So why do them? Well if you are a homeowner in trouble, you may be the exception... the modification just may be enough to keep you out of trouble. And even if it buys you time, as a homeowner, you are back in control-- you have more options.

Call or email me anytime if you want help applying for a modification. If you had been granted a modification and are now off the wagon-- call or email me too, the game isn't over for you either!

All About Walking Away New York Times Article

2008-03-02T19:39:00.004-06:00

On Friday the New York Times published an article about the rising trend of people just walking away and yours truly was even quoted in the story!

The article profiled a company that charges about $1,000 to help you walk away from your house. It raises some serious questions in my mind... do you need that kind of help to just send your house back to the bank? Our foreclosure process in Minnesota will do that for you! And more importantly isn't that giving up... not fulfilling your responsibility?

I understand sometimes there are no other options left and you have to walk away. But, please, try them ALL first! If you have questions about those options, the foreclosure process or just want to talk about your situation, call or email me-- and I won't charge you.

Have you been using your Home Equity Line to get by?

2008-02-27T13:27:00.005-06:00

Lots of people have been using their home equity lines of credit to get by... paying for vacations, emergencies, college tuition and even groceries and gas. But that may be changing and if you needed that line to get by, trouble could be coming your way!

Lenders have been reassessing their lines of credit. They don't want you (nor should they) to have more credit available than your home is currently worth. That is bad news since home values are continuing to drop. In the last few weeks, Countrywide sent out 122,000 letters to homeowners informing them that their home equity lines of credit had been frozen based on the value of their home. (Read cnn.com article) I think this is just the tip of the iceberg!

In that same article, CNN Money reports that Chase is only allowing homeowners access to 70% of their available equity when they used to have access to 90%.

According to National Public Radio, other banks are doing this on a case by case basis. Listen to their story here.

If you are nervous about how this will affect you or are worried this will make it impossible for you to stay afloat, call or email me-- the best time to work with your lender is always NOW!

Check out my other posts on second mortgages:
http://helpwithforeclosure.blogspot.com/2009/08/second-mortgages-getting-sticky.html
http://helpwithforeclosure.blogspot.com/2008/12/promissory-notes-and-second-mortgages.html
http://helpwithforeclosure.blogspot.com/2008/12/second-mortgages-getting-harder-to-deal.html
http://helpwithforeclosure.blogspot.com/2008/08/is-bremer-bank-bully-you-decide.html
http://helpwithforeclosure.blogspot.com/2008/06/my-second-mortgage-is-chasing-me-or.html
http://helpwithforeclosure.blogspot.com/2008/02/have-you-been-using-your-home-equity.html
http://helpwithforeclosure.blogspot.com/2008/01/what-happens-to-second-mortgage-during.html

Default Disaster! Are you a candidate?

2008-02-24T09:31:00.006-06:00

Articles are flying fast and furiously across the web and in local papers. Just today Yahoo busines has an article saying that 1 in 10 American owe more on their home than it is worth. (Find out here what your home is worth today.)

And the Sunday Star Tribune has an article about credit card default judgements skyrocketing 67% since 2006. In Carver county alone those defaults rose 102% according to that article.

What does all of these mean? We're in for tough times ahead.

I feel like I keep saying the same things over and over... but if you are feeling the pressure, if things are starting to get difficult start making calls to your bank. If you can keep your home or control what happens to your home.. you will be far better off! Do a loan modification, do a short sale... whatever best fits your situation (we can talk about you options-- you can't make the best decision without knowing what they are-- so call or email me now!) and there are almost always better options that just walking away!

With all the help programs... will the foreclosure crisis end soon?

2008-02-18T19:35:00.004-06:00

The government recently announced round two of foreclosure help programs. Will these programs be helpful and will they end our foreclosure crisis?

I think both answers are no!

The 30-day foreclosure freeze program is, for most, a delay of the inevitable. If you don't have funds to catch up or a bank willing to modify to loan terms that will work for you... how will 30 extra days save anyone from being foreclosed on?

Banks are only willing to go as far to help--- and they CAN only go so far... if you have no (or very little) income what can they do for you?

And, more detrimental than that is our sagging economy. As people lose jobs, get hours cut or just have to pay more for basic necessities, paychecks aren't going as far. Add to that we have barely seen the tip of the iceberg on the number of people whose mortgages have yet to adjust!

Just plan ahead, if you sense trouble brewing-- start talking to your bank now, put your house up for sale, call me and we can talk about options. The more time you allow to help you out of trouble-- the better off you will be!

I also got this map from my friend Barb Crea at Fairway Mortgage. From the map it looks like Minnesota is in great shape (compared to the rest of the country anyway). The map only is for 2007-- let's make sure we're not more "in the red" for 2008. I can't stress it enough-- act now if you EVEN SENSE trouble coming! Act fast enough and you maybe one of the lucky ones who can straight-out refinance. Ask Barb!

What Would Make You Walk Away From Your House?

2008-02-14T14:33:00.004-06:00

In all the talking I have been doing, I run into a lot of people who are just planning to let the bank have the house.

If you are one of those people I ask you WHY???? (And please post a comment to this post-- I really want to know!)

This is purely my opinion, but I think you are making a huge mistake. That mistake can hurt not just the bank but you, your neighborhood and frankly our nation! We are seeing property values fall and increases in crime and a lot of it has to do with the number of vacant, abandoned and bank owned homes. And with our economy in such a fragile state, we all need to make every effort to minimize losses all around.

Rather than just letting go of the house-- work with the mortgage company.. try a loan modification program if you qualify, attempt a short sale, talk to them about deed in-lieu of foreclosure. And if they are too hard to talk to get someone to talk to them on your behalf. Please exhaust every option! Whatever you can do so your house doesn't just sit empty dragging your former neighborhood with it-- and I think you will be surprised how good it feels to face this head on. You get control back... it may even save some on your credit rating. And, it shouldn't cost money out of your pocket!

Your absolute last resort should just be to walk away.

Feeling Vulnerable? Watch out for Foreclosure Help Scams!

2008-02-12T10:51:00.000-06:00

Times are tough-- and there are always people that will try to take advantage of you when you're down. Well, foreclosure is no different.

As soon as your property is listed for sheriff sale and sometimes even before, would-be scammers can smell the blood in the water and find out all kinds of information about you and your situation. It is easy to find out who you are, where you live, how much you owe and often information on who holds your mortgage.

There are so many things these people will tell you they can do to help you.
1. They often offer to buy your house and let you buy it back after a period of renting. BAD IDEA. Many times they don't make mortgage payments and you are doubly out!

2. They can help you renegoiate with the bank for a fee. DON"T PAY for this kind of help! There are non-profit agencies that can legitmately help without charging anything. And there are people like me who will alos help with no charge (just remember I want to be your agent IF you decide you need to or wat to sell-- fair deal right?)

Plus there are so many more. Just watch this report from Fox News in Atlanta. Just keep in mind that if it sounds to good to be true, it probably is. Get a second opinion--- it shouldn't cost you anything and could save you a ton!

I Want to Short Sale it...Where do I start?

2008-02-05T10:43:00.000-06:00

Okay, so you've decided you want control back of your situation and want to sell the property before the bank takes it. You have several things to do to prepare.

1. Gather information for the short sale. This should include two years tax returns, two recent paystubs, and two most recent bank statements, a finacial worksheet and a hardship letter (just requesting a short sale and telling the banks what happened). It is also great if you can get payoffs for your mortgage(s).

2. Clean and sparkle. You want to get the most money possible for the house-- even if you aren't going to walk away with money. The bank is more likely to accept a higher offer. If you would like a SPARKLE STARTER kit -- email me with your name and address and I will mail you one free.

3. Find out how much your house is worth. Click here. Be sure to add in the notes that your are in foreclosure. Generally, we have to be agressive when marketing short sales. Many homes are now taking almost a year to sell and you don't have that kind of time. We'll email and mail you a report at no cost and with no obligation.

4. Act fast. call or email me and get the home on the market now... get any city required inspections done. Don't waste time-- you don't have a lot. It can take the banks 12 weeks to respond once you get an offer. Don't delay!

Guess What-- Your Association can Foreclose on you too!

2008-01-30T20:56:00.001-06:00

That's right folks! A townhome or condo's association has the right to foreclose on your townhome or condo if you have not been paying your association dues.

They go through the same process as a mortgage foreclosure which publication in the legal notices, sheriff sale and redemption period. And like a mortgage bank, sometimes you can negogiate with them before the sheriff sale. After the sheriff sale your options are much more limited.

If you get notified of your associations intent to foreclose-- don't wait. Act right away, call the association, call me, check on all your options before it is too late!

Check out my other posts on second mortgages:
http://helpwithforeclosure.blogspot.com/2009/08/second-mortgages-getting-sticky.html
http://helpwithforeclosure.blogspot.com/2008/12/promissory-notes-and-second-mortgages.html
http://helpwithforeclosure.blogspot.com/2008/12/second-mortgages-getting-harder-to-deal.html
http://helpwithforeclosure.blogspot.com/2008/08/is-bremer-bank-bully-you-decide.html
http://helpwithforeclosure.blogspot.com/2008/06/my-second-mortgage-is-chasing-me-or.html
http://helpwithforeclosure.blogspot.com/2008/02/have-you-been-using-your-home-equity.html
http://helpwithforeclosure.blogspot.com/2008/01/what-happens-to-second-mortgage-during.html

Deed-in-lieu of Foreclosure

2008-01-27T12:11:00.000-06:00

Lots of people consider giving their home to the bank when they start to get into trouble. This is called a deed-in-lieu of foreclosure.

As you might guess, it is not that simple. The bank has to be willing to take the home back and different banks have different guidelines. For example, according to HUD's website, they won't consider the program for an FHA loan for an investor or a home that is vacant (in most cases.) Other banks won't take the house unless it is a last resort (if you have tried to sell it and can't) or won't take the home unless they are sure it will cover your entire debt.

Almost always (there are always exceptions, right?) the bank won't consider a deed-in-lieu if you have more than one mortgage on the property.

As with every other option during such a confusing time, it is best to talk to experts in your area. Deed-in-lieu may not be right for you-- but there are plenty of other options out there!

Call of email me anytime with questions.

Will I get a 1099? Well, Wonder No More!

2008-01-23T21:36:00.000-06:00

On December 20th, 2007, a bill was signed into law that people who have debt forgiven (like in a short sale) will not owe taxes on that forgiven debt.

This is VERY big news. It used to be that a bank could issue a 1099 for the shortfall amount of your loan from a short sale. The IRS would view this as income and you would owe taxes on it at your tax rate (of course you may have losses to offset or other circumstances). This discouraged many people from considering a short sale.

The new law puts homeowners and banks in a great position to help each other out. Homeowners can get rid of properties they just can't afford because of their circumstances and the banks don't have to add another home to their asset portfolio-- especially when the property values are continuing to decline.

The rules are specific and only are effective for a certain timeframe (through 12/31/2009), email me if you would like to talk about what this means for you in your situation or if you would like to read more details— here is an MSNBC article.

When do I have to move out?

2008-01-21T21:35:00.000-06:00

Everyone wonders with a foreclosure when they will have to leave their home. Well, it depends. When do you want to leave?

In the state of Minnesota, we have a six-month redemption period. During that timeframe the home is still yours to live in, rent or do whatever. The bank has the power to speed up the process-- but that is another topic. The clock starts ticking the day of the sheriff's sale.

After the six-months is up, the bank will take possession.

You can decide to sell the home and then you must leave in accordance with the purchase agreement and/or closing.

I usually advise people to leave of their own will. I think it is awful to be waiting to be forced out.

What happens to a second mortgage during foreclosure?

2008-01-17T13:37:00.002-06:00

This question comes up so much! There are a few scenarios that can happen to the second when you go into foreclosure. But I think the biggest thing to remember is that NO MATTER WHAT the second does not go away.

So many people try to wait until after the sheriff's sale to deal with their mortgage because someone told them they don't have to worry about the second. This is just not true. You can't sell the house without satisfying the second as well as the first. Even if the first bank takes your home, the second can come after you for their losses! (It is their right-- but they may not pursue it.)

The second can also start their own foreclosure proceedings.

Good advice--- don't wait! When you start to fall behind, start talking! Talk to the bank, seek help just whatever you do-- don't just hide under the bed!

Check out my other posts on second mortgages:
http://helpwithforeclosure.blogspot.com/2009/08/second-mortgages-getting-sticky.html
http://helpwithforeclosure.blogspot.com/2008/12/promissory-notes-and-second-mortgages.html
http://helpwithforeclosure.blogspot.com/2008/12/second-mortgages-getting-harder-to-deal.html
http://helpwithforeclosure.blogspot.com/2008/08/is-bremer-bank-bully-you-decide.html
http://helpwithforeclosure.blogspot.com/2008/06/my-second-mortgage-is-chasing-me-or.html
http://helpwithforeclosure.blogspot.com/2008/02/have-you-been-using-your-home-equity.html
http://helpwithforeclosure.blogspot.com/2008/01/what-happens-to-second-mortgage-during.html

The Bank Wants My House

2008-01-14T21:26:00.000-06:00

Many people I meet say the bank is foreclosing on them on purpose-- just to take their house. Let me assure you-- this is not the case! In 99% of cases, the bank would much rather have you resolve the situation. Whether with a short sale, sale, loan modification or deed in lieu of foreclosure, you are saving the bank time and money.

Mortgage companies today have massive property portfolios that they are trying to unload. If you can do that work for them ahead of time.. it saves everyone!

Fair warning--- sometimes when dealing with your mortgage company on the phone you will end up with someone who doesn't seem to care or explain your options. Please keep trying.. the bank truly doesn't want to foreclose. And if you can't get answers from them, call me.... sometimes an outside party can get the answers you can't!

Sound Money on MPR

2008-01-12T11:50:00.000-06:00

I was listening to Sound Money on MPR today (you can listen online at www.mpr.org) and, not surprisingly, they were talking about foreclosures and how close everyday people are to big time money trouble.

It is worth listening to because it is easy to forget that if you aren't in money trouble that it doesn't take much to get from here to big money trouble. Some people are very well insulated-- but most of us have mortgages, debt and lots of expenses and all it would take is the loss of a job or a medical or other emergency. Sure some of us could get by for a couple of months... but how long before the wolves come knocking?

These are the stories I hear everyday when I meet with people facing foreclosure-- job loss, illness or other crisis and within a couple months they're out!

If you are in trouble or sense you're close don't just hide under the bed-- call your mortgage company and talk to them. That is always the best place to start If your are afraid to call them, call me we can talk through your situation and call them together or I can call them on your behalf. You are far better off having your mortgage company working with you, after all they would prefer you keep the house and keep making payments!

I can't believe it!

2008-01-09T11:44:00.000-06:00

One of the keys through this process is exercising your rights as homeowner. Until the end of the redemption period or court proceedings, the house is yours. No one has the right to access it without your permission.

One of my current short sale listings is a prime case in point. The home has two mortgages on it -- both held by the same large national mortgage company. They called me the beginning of December and asked to access the property to winterize it (the property is vacant). I told them no because we have a purchase agreement on it and the property is scheduled to close the end of February. Well, 12/28 the bank entered the property without permission (either they changed the locks or broke the locks because we can no longer access the property) and winterized it!

This is breaking and entering and NOT OKAY! Make sure you have someone working with you who will call the bank on these types of issues. I don't believe that the banks are doing this on purpose --- but maybe their local representatives don't understand our state laws. I will be calling the bank on their mistake.

It's not my fault!

2008-01-04T20:19:00.000-06:00

I have encountered so many people who are in the terrible situation of foreclosure. Many of them did nothing wrong and even had something wrong done TO them!

Unfortunately, the market was so strong for so long, people got greedy and/or lazy. And consumers got taken advantage of.

Some examples---
* a loan officer took a clients loan application and filed for multiple loans without the consumers knowledge
* buyers got to the closing and their interest rate and/or closing costs were considerably higher than promised (sometimes they were even told they would be sued by the seller!)
* buyers were promised cash back after closing
* buyers were pushed into a loan product that they didn't understand and wasn't right for them

The FBI and Minnesota Department of Commerce take mortgage fraud cases very seriously.

Just know that many times foreclosure has happened because of things beyond your control and I am here to talk you through your options and help, if I can. I feel it is my job to make the process at the very least, less frightening and at best a relief to come up with some solutions -- understanding all along that this will never be easy or fun.

Happy New Year!

2008-01-01T12:31:00.000-06:00

Happy New Year.

This is the perfect time to reflect back on last year and think about positive changes for 2008. If any of your concerns are about housing, I would be hapy to talk to you by phone or email.. about buying, selling or anything else real estate related.

Loan Modification Programs

2007-12-31T14:59:00.000-06:00

One of the best tools to keep you in your home is called a loan modification. Basically what happens is you and your bank come up with a plan based on your financial situation that will work for you to bring and keep your payment current.

Here are some examples that I have seen included in modifications:

Lowering interest rates
Adding missed payments to the principle so you are current
Accepting a small payment to bring the mortgage current
Forgiving the missed payments
Forgiving a portion of the debt

Most often, the banks are most willing to modify second loans more than firsts.

In order to request a modification, the bank is going to require financial information. As a part of my services, I am happy to assist with the paperwork and negotiating with the bank. I do NOT charge; however, I hope that if you decide to sell your home you work with me. Feel free to call me at 612-701-7965 or email at carrie@associatesrealty.net anytime.

What is a Short Sale

2007-12-23T15:20:00.000-06:00

We keep talking about short sales. What they are is simple. A short sale is when you owe more than your home is worth (very common right now) and the bank is willing to forgive the excess debt if you sell the house.

The process is simple too. First, put you home on the market with an agent who does and understands short sales (hey-- that's me!). Start filling out your financial paperwork. Once an offer comes in, we submit the request for short sale, the financials and the offer to your mortgage company(s).

After the bank receives this, they take time to review and may order an appraisal. Then they will approve, decline or try to negotiate some of the terms.

Under current law the banks can issue a 1099 for the forgiven debt-- depending on your situation it may not affect you.

Some banks are even offering $1500 move out to encourage you to do a short sale. Call or email me to find out if you mortgage company offers this.

I know I'm in Trouble...NOW WHAT?

2007-12-12T13:35:00.000-06:00

Okay.. so your mortgage company is talking foreclosure or the sheriff has knocked on your door... so what now?

One of the best things to do is talk to your mortgage company. Talk to people in different departments, no just customer service but loss mitigation or home preservation.

Next, call me! If you can't get anywhere with your mortgage company, maybe I can. Sometimes they will talk to a third party more openly. And, if we can't make any headway with that, there are other options to consider.

I recently helped a family in Burnsville get a remodification with their lender. They didn't think there was any hope left!

Don't give up! Keep talking!

As always, my services for loan modification attempts are free-- I just ask that if you need to or decide to sell your home, you work with me. And in the case of a short sale-- the bank will pay my commission.

call me at 612-701-7965 or email me anytime.

The Sheriff's Sale

2007-12-07T15:18:00.000-06:00

My last post talked about what your options are after you have started to miss payments but your home hasn't gone to SHERIFF SALE yet. Today, I will briefly describe what the sheriff sale is and what it means if you have one.

After missing any number of payments (varies bank by bank and situation by situation), the bank starts foreclosure proceedings. They file legal paperwork and a notice about the upcoming Sheriff sale is published in the legal notices section of an area paper (in Carver county that paper is the Chaska Herald).

About six weeks after publication, the sale occurs. At the county courthouse people are giving the opportunity to bid on your house-- but don't worry-- the winner can't ask you to leave yet and often the bank bids on it to cover their losses.

After the Sheriff sale, you have six months to redeem the property (called the redemption period). You do still have options left at this point You can pay off the mortgage, refinance or sell. Generally, the loan modification opportunity is off the table.

There is another type of foreclosure where the bank takes you to court but it is far less common in the Twin Cities.

Please call or email me if you have questions--- I would love to help!

What is Pre-Foreclosure and what are my options?

2007-12-05T12:16:00.000-06:00

It is interesting. The number of foreclosures in the Twin Cities market is climbing and the number of people who are in pre-foreclosure is climbing even faster!

Many of the people in preforeclosure are unsure of their options. And worse yet, they are approached left and right by scammers and people who don't know enough to really help. I will lay out the process and what your options are here. If you have questions or are in preforeclosure you can call or email me and we can walk through your specific situation.

Anytime you miss a payment, even one, we'll call you pre-forclosure. It means you are currently in default but your property has not gone to Sheriff Sale yet. This is the time when you have the most options. We'll talk about Sheriff Sale and the period after that called the redemption period, in later posts.

In the preforeclosure time, you can:

Modify your loan. Working with your lender(s), often times they will change interest rates, add payments to the back end or help you in other ways to bring you current.
Refinance. If you see preforeclosure coming, many times you can refinance to a "better loan" before you ever miss a payment
Sell your home. This is just to get you out. This is an option even if you owe more than your property is worth.

In the loan modification and selling process, your lender(s) is going to require considerable information from you. This is one of the areas that I can assist with. For a loan modification, I will talk you through all of the paperwork your lender needs and submit it to your lender or your behalf. I will also help negotiate with them. I do this for no charge, under the hopes that if a modification that works for you cannot be reached or you decide to sell now or later, that you work with me.

I can be reached at 612-701-7965 or by email at carrie@associatesrealty.net.