 Many Americans are Hoping for a Loan Modification HOPE!
wikipedia defines hope as:
“A belief in a positive outcome related to events and circumstances in one’s life. Hope is a feeling that something desired may happen, when the outlook may or may not warrant it.”
When I traded stocks I was taught that four letter words hurt you as a trader more than they helped you. The main bad words were FEAR and HOPE.
FEAR kept you from fully maximizing on your trades and HOPE kept you in them long enough to pay the hefty price.
Now as a Real Estate Broker I meet people who are in danger of losing their home to foreclosure. Like stocks, the real estate market has its ups and downs. And like stocks the same emotions play out. Fear and Hope are prevalent. Of those I think HOPE is worse, its hurting people more than just having a foreclosure.
EXAMPLE
We will call this person Tom,
Tom was behind on his mortgage three months and $14,000 in back payments not including fines and looming legal fees. Based on public record I knew he was in need of my services and offered to do a short sale on his property. He told me that he was working on getting a loan modification. It made sense, he was working but went thru a divorce and this hurt his ability to stay current. He just had to prove to the lender that since the property had lost 50% of its value it would be in their best interest to work with him. So he had his buddy refer him to an attorney who was going to work on the loan mod. The attorney charged him $4,000 to work on his file and off they went.
Five months later the banks responded… DENIED! Tom thinking that his attorney didn’t know what he was doing fired his loan modification company and hired another one he heard on the radio, they charged him $4,500.
One month later after the loan mod company didn’t return any phone calls or emails he decides to visit the location only to find out that the business had gone bankrupt, Ouch! (people still think radio and tv add credibility!)
But he was still hopeful so he paid a third company $3,000 to help him. This company did work on it like the first had and three months later he got his answer. DENIED! What!! how could this happen, it doesn’t make sense. The government said that programs exist and that banks had to help people!! Arrrrgh!! How could this happen you say, it doesn’t make sense, banks took tarp money!!!!
Well what happened is the investor sold the note the moment that Tom’s loan went into default. Huh? what does that mean you say? That means that the servicer or bank as most people know them (Bank of America, Chase, Citi) don’t own the loans. Investors do,banks hold a small number of loans but not many. So the many investors who do own these loans sell them to other investors who buy bad debt. Sometimes the same attorney who helped your on the loan mod is buying bad debt to resell. (yes it happens, I have had bank reps tell me that attorneys are there best note buyers, especially on second loans.) Don’t act surprised, these are the waters you enter when in these situations.
Most investors don’t know the homeowner and yes they don’t care. All they know is that they lent money for the purpose of collecting a profit, short or long term the word is PROFIT. Like your 401k at work, you save to be able to retire and live off the interest. Some of these loans were actually purchased with other peoples retirement money but that is a whole other topic for another day.
So again, without the homeowner even knowing, the investor sold that $380,000 note for $90,000 (property worth 180,000) The new investor has purchased the note for ONE REASON, LIQUIDATION. The old investor probably did it for tax breaks , or maybe his buddy buys it to resell, who knows, the point is money is moving. and Toms house is the prize!
Not FAIR right, well there’s another four letter word for you. Maybe they have LUCK, and Tom needs real HELP, see a pattern here?
We spoke with an exec at Bank of America who admitted that only 10% of loan mods have been made permanent. Of those 10% they did, 80% re defaulted. So why are the banks pushing them if they really don’t help??? Well like we said earlier, gov programs! They have to try and help even though many people will be denied, its called Public Relations!
But back to Tom…
So after Tom paid $11,500 of hope money he was told SORRY. We are foreclosing next week! So again hopeful Tom sues the bank which delayed the foreclosure for a week. And then the day came, FORECLOSURE! No stopping the train, this was done and done. Right?
Well hope reared its ugly head again, this time he hoped that he could reverse the foreclosure and hope that the bank could not make him leave his home. After a couple of misfiled court documents and other delay tactics he was eventually evicted.
So hope won him
$11,500 in fees, foreclosure and finally eviction, all in his credit record for him to keep for 10 years. From here on he can HOPE to get cell phone or lease on apartment in the near future.
This is a real scenario by the way. I have been in situations where the banks have screwed up and this was the only tactic left. But this was not Tom’s case at all.
Tom should have short sold the home. He owed about $400,000 for a home that was worth $180,000. What if he was successful with the loan mod? What did he actually accomplish? He would really be renting his home without a landlord. It would be a temporary fix at best. He would be responsible for repairs, insurance, and taxes only to have issues with the loan in 2 to 5 years. He could have rented a MUCH, MUCH NICER HOME while his credit improved.
The WORST PART OF THIS STORY is he would be ready to buy right about NOW because this happened 2 years ago. He would have been eligible to buy again. And those 11k would have been perfect for a down payment.
I guess when it comes to business, hope and money don’t mix!
Michael-Edward Cruz
California Real Estate Broker 01758933
760-689-BANK (2265)
http://www.mikerebroker.com
http://facebook.com/mikerebroker
For what you pay for (or are not paying) on small home, you could rent a mini mansion
Example: This home is in San Bernardino County the mortgage is 399,000. With a 7 % interest rate the payment is about$ 2654.55. plus taxes and insurance $3150 per month. Its now worth about 130,000
 Your loan is $399,000 the home is worth #130,000 They are never going to modify the loan. Even though they make you think they will.
So instead, why not short sale your home and then for around same price you can rent this:
 For the same price your could be living here Obviously if your not paying your mortgage their is a good reason. The point I am trying to make is you have to be smart and know that you can recover from situations like this and sometimes it does not make sense to get lured into ideas that will not work. I have met many homeowners who have been told they might qualify for a modification. Only to find out they were just acting like they wanted to help.
When you ready to get back to happiness, call us and we will help you short sale your property.
Michael-Edward Cruz
01758933
760-689-BANK
 Bank of America took so long to get the short sale approved that Fannie may has ordered a foreclosure on the home even though we have a buyer! Our office works on Short Sales in Southern California and have we have seen a trend in the distressed property market. Fannie May is cleaning house and we have mixed feelings about it.
One one end we have talked to people who are still given false hope that there modification will go thru. Even though there is not reason for the bank to accept low interest payments. They are still let to believe that there is hope. On the other end delays in short sales are causing Fannie May to just foreclose even though they have come out with new programs to speed up foreclosure.
On one end they say something and on the other they do something else. I will give you a real life example with Bank of America. We were working on a short sale with Bank of America (servicer), with Fannie May (investor) for over 6 months. Bank of America took so long getting getting things done (documented proof) that even though we had a buyers who were willing to pay full price the property is still going to be foreclosed.
After SIX months, Bank of America said the offer we had was not high enough! Fine we got another buyer who was willing to pay 20k MORE. Well you would think all we had to do was just change the buyers name. Well NO, we had to “start over” as the rep told us too. We had to submit the packet over on the online system (Equator) and upload all the docs. Three weeks past and Bank of America had still not completed their tasks! With a sale date looming we were told that we had to close in one day ! One DAY. Bank of America basically said OKAY WE WILL APPROVE THIS but the investor wants to close the buyer to close escrow in one day. Just for readers not familiar with Real Estate transactions, this one day close is IMPOSSIBLE & IDIOTIC. Even with a cash buyer you cannot close in ONE DAY!!! WOW
Fannie May wanted something done with the property, but because of Bank of Americas procedures a simple task took 7 MONTHS! – even though we had a buyers who were willing to pay more, they STILL MADE US WAIT, THEY COULD NOT JUST CHANGE THE NAME AND AMOUNT, WE HAD TO START OVER!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! AHHHHH
Well Fannie May didn’t care whose fault it was so they are foreclosing tomorrow. Our client has an illness and still tried to do the right thing by trying to work with the bank. But even with all our efforts time ran out. That is why I tell people not to waste time with loan modifications, their is so much BS to work thru to get them a short sale that we need all the time we need.
Our team has closed over 230 short sales and the government is getting ready to foreclose on as many homes as possible by the Summer, Many of our team members are all having problems with Fannie May owned loans. Fannie May is tired of giving BANKS the time to pretend to help people with loan modifications.
People need to realize the BANK HAS NO INCENTIVE TO MODIFY LOANS! When they do modify a loan its only for a few years. Think about it, after 5 years , do you still think we will have programs to help people short sale? NO ! As you I have explained today even in this case where the banks ”negotiator” dropped the ball , the odds of a short sale are 95% higher than a loan mod. Chances are if we had a few more weeks we could have avoided foreclosure but of course everyone is trying to modify.
Michael-Edward Cruz 951-572-2789 760-689-BANK
http://www.youtube.com/watch?v=ju2SpPmhxKs
What type of sales dominate the Temecula Redhawk market?
See below
 
If you need a Real Estate Team that understands the market, give us a call.
Real Estate Insight Team
Keller Williams
Short Sale Experts
951-572-2789
760-689-BANK (2265)
 
| 3 Bedrooms |
| AREA |
BEDS |
BATHS |
SQ FT |
LOT SIZE |
LISTED |
SOLD |
DIFFERENCE |
DAYS OF MARKET |
SALES TYPE |
PROPERTY TYPE |
| Temecula – South (213) |
3 |
2 |
1001 |
6534 |
$ 139,000 |
$ 155,000 |
$16,000 |
174 |
Short Sale |
Single Family Residence |
| Temecula – South (213) |
3 |
2 |
1138 |
7840 |
$ 169,900 |
$ 176,000 |
$6,100 |
49 |
Bank Owned |
Single Family Residence |
| Temecula – South (213) |
3 |
2 |
1138 |
7840 |
$ 175,000 |
$ 179,000 |
$4,000 |
7 |
Short Sale |
Single Family Residence |
| Temecula – South (213) |
3 |
2 |
1205 |
6098 |
$ 165,000 |
$ 180,000 |
$15,000 |
237 |
Short Sale |
Single Family Residence |
| Temecula – South (213) |
3 |
2 |
1234 |
5662 |
$ 158,400 |
$ 165,000 |
$6,600 |
25 |
Bank Owned |
Single Family Residence |
| Temecula – South (213) |
3 |
2 |
1237 |
6534 |
$ 210,000 |
$ 215,000 |
$5,000 |
27 |
|
Single Family Residence |
| Temecula – South (213) |
3 |
3 |
1294 |
6534 |
$ 179,900 |
$ 170,000 |
($9,900) |
176 |
Short Sale |
Single Family Residence |
| Temecula – South (213) |
3 |
3 |
1294 |
5227 |
$ 200,000 |
$ 175,000 |
($25,000) |
275 |
Short Sale |
Single Family Residence |
| Temecula – South (213) |
3 |
2 |
1309 |
6969 |
$ 214,999 |
$ 212,000 |
($2,999) |
2 |
|
Single Family Residence |
| Temecula – South (213) |
3 |
2 |
1315 |
5227 |
$ 180,000 |
$ 185,000 |
$5,000 |
9 |
Bank Owned |
Single Family Residence |
| Temecula – South (213) |
3 |
2 |
1345 |
6969 |
$ 174,900 |
$ 185,000 |
$10,100 |
6 |
Bank Owned |
Single Family Residence |
| Temecula – South (213) |
3 |
3 |
1345 |
6969 |
$ 200,000 |
$ 215,000 |
$15,000 |
23 |
|
Single Family Residence |
| Temecula – South (213) |
3 |
2 |
1408 |
1369 |
$ 159,900 |
$ 160,000 |
$100 |
35 |
Bank Owned |
Condominium |
| Temecula – South (213) |
3 |
2 |
1408 |
|
$ 140,000 |
$ 140,000 |
$0 |
123 |
Short Sale |
Condominium |
| Temecula – South (213) |
3 |
3 |
1412 |
5227 |
$ 199,000 |
$ 210,000 |
$11,000 |
32 |
|
Single Family Residence |
| Temecula – South (213) |
3 |
2 |
1442 |
6969 |
$ 197,500 |
$ 197,500 |
$0 |
4 |
Bank Owned |
Single Family Residence |
| Temecula – South (213) |
3 |
3 |
1559 |
6969 |
$ 225,000 |
$ 220,000 |
($5,000) |
26 |
Standard |
Single Family Residence |
| Temecula – South (213) |
3 |
3 |
1759 |
6969 |
$ 230,000 |
$ 230,000 |
$0 |
54 |
Short Sale |
Single Family Residence |
| Temecula – South (213) |
3 |
3 |
1783 |
10018 |
$ 199,900 |
$ 200,000 |
$100 |
134 |
Short Sale |
Single Family Residence |
| Temecula – South (213) |
3 |
3 |
1916 |
9583 |
$ 270,000 |
$ 255,000 |
($15,000) |
7 |
Bank Owned |
Single Family Residence |
| Temecula – South (213) |
3 |
3 |
1948 |
6969 |
$ 235,000 |
$ 248,000 |
$13,000 |
6 |
Bank Owned |
Single Family Residence |
| Temecula – South (213) |
3 |
3 |
2009 |
4508 |
$ 239,500 |
$ 235,000 |
($4,500) |
48 |
Bank Owned |
Single Family Residence |
| Temecula – South (213) |
3 |
3 |
2023 |
7405 |
$ 179,000 |
$ 199,000 |
$20,000 |
346 |
Short Sale |
Single Family Residence |
| Temecula – South (213) |
3 |
2 |
2076 |
6534 |
$ 245,000 |
$ 266,000 |
$21,000 |
9 |
Bank Owned |
Single Family Residence |
| Temecula – South (213) |
3 |
3 |
2180 |
3484 |
$ 215,000 |
$ 235,000 |
$20,000 |
64 |
Bank Owned |
Single Family Residence |
| Temecula – South (213) |
3 |
3 |
2262 |
7405 |
$ 259,900 |
$ 260,000 |
$100 |
39 |
|
Single Family Residence |
| Temecula – South (213) |
3 |
3 |
2316 |
3484 |
$ 218,000 |
$ 223,000 |
$5,000 |
5 |
Bank Owned |
Single Family Residence |
| Temecula – South (213) |
3 |
3 |
2342 |
5227 |
$ 300,000 |
$ 300,000 |
$0 |
6 |
|
Single Family Residence |
| Temecula – South (213) |
3 |
3 |
2383 |
7840 |
$ 310,000 |
$ 315,000 |
$5,000 |
31 |
|
Single Family Residence |
| Temecula – South (213) |
3 |
3 |
2694 |
7840 |
$ 235,000 |
$ 250,000 |
$15,000 |
121 |
Short Sale |
Single Family Residence |
| Temecula – South (213) |
3 |
3 |
2774 |
8276 |
$ 299,900 |
$ 300,000 |
$100 |
191 |
Short Sale |
Single Family Residence |
| Temecula – South (213) |
3 |
4 |
3650 |
7840 |
$ 357,000 |
$ 350,000 |
($7,000) |
50 |
Bank Owned |
Single Family Residence |
| 4 Bedrooms |
| AREA |
BEDS |
BATHS |
SQ FT |
LOT SIZE |
LISTED |
SOLD |
DIFFERENCE |
DAYS OF MARKET |
SALES TYPE |
PROPERTY TYPE |
| Temecula – South (213) |
4 |
2 |
1364 |
6534 |
$ 169,000 |
$ 190,000 |
$21,000 |
63 |
|
Single Family Residence |
| Temecula – South (213) |
4 |
2 |
1520 |
10890 |
$ 225,000 |
$ 230,000 |
$5,000 |
7 |
|
Single Family Residence |
| Temecula – South (213) |
4 |
2 |
1698 |
5227 |
$ 204,900 |
$ 201,000 |
($3,900) |
27 |
Bank Owned |
Single Family Residence |
| Temecula – South (213) |
4 |
3 |
1748 |
6969 |
$ 204,900 |
$ 200,000 |
($4,900) |
89 |
Bank Owned |
Single Family Residence |
| Temecula – South (213) |
4 |
3 |
1867 |
4791 |
$ 229,000 |
$ 245,000 |
$16,000 |
7 |
Bank Owned |
Single Family Residence |
| Temecula – South (213) |
4 |
3 |
1948 |
6969 |
$ 208,000 |
$ 205,000 |
($3,000) |
1 |
Bank Owned |
Single Family Residence |
| Temecula – South (213) |
4 |
2 |
2076 |
8276 |
$ 240,000 |
$ 241,000 |
$1,000 |
28 |
Short Sale |
Single Family Residence |
| Temecula – South (213) |
4 |
4 |
2118 |
6969 |
$ 292,000 |
$ 292,000 |
$0 |
23 |
Bank Owned |
Single Family Residence |
| Temecula – South (213) |
4 |
3 |
2212 |
6969 |
$ 229,900 |
$ 220,000 |
($9,900) |
60 |
Short Sale |
Single Family Residence |
| Temecula – South (213) |
4 |
3 |
2232 |
7840 |
$ 285,000 |
$ 300,000 |
$15,000 |
24 |
|
Single Family Residence |
| Temecula – South (213) |
4 |
3 |
2380 |
14374 |
$ 260,000 |
$ 255,000 |
($5,000) |
62 |
Notice of Default |
Single Family Residence |
| Temecula – South (213) |
4 |
3 |
2383 |
8712 |
$ 349,000 |
$ 325,000 |
($24,000) |
138 |
Short Sale |
Single Family Residence |
| Temecula – South (213) |
4 |
3 |
2494 |
10890 |
$ 329,000 |
$ 329,000 |
$0 |
195 |
Short Sale |
Single Family Residence |
| Temecula – South (213) |
4 |
3 |
2574 |
5662 |
$ 249,000 |
$ 255,000 |
$6,000 |
7 |
Short Sale |
Single Family Residence |
| Temecula – South (213) |
4 |
3 |
2581 |
5662 |
$ 329,900 |
$ 330,000 |
$100 |
64 |
|
Single Family Residence |
| Temecula – South (213) |
4 |
3 |
2648 |
6534 |
$ 289,000 |
$ 300,000 |
$11,000 |
11 |
|
Single Family Residence |
| Temecula – South (213) |
4 |
3 |
2665 |
8712 |
$ 289,900 |
$ 290,000 |
$100 |
13 |
Bank Owned |
Single Family Residence |
| Temecula – South (213) |
4 |
3 |
2665 |
4791 |
$ 309,900 |
$ 309,900 |
$0 |
65 |
Short Sale |
Single Family Residence |
| Temecula – South (213) |
4 |
3 |
2665 |
4791 |
$ 320,999 |
$ 320,999 |
$0 |
101 |
|
Single Family Residence |
| Temecula – South (213) |
4 |
3 |
2693 |
7840 |
$ 348,900 |
$ 350,000 |
$1,100 |
4 |
|
Single Family Residence |
| Temecula – South (213) |
4 |
3 |
2814 |
6098 |
$ 303,000 |
$ 303,000 |
$0 |
44 |
Bank Owned |
Single Family Residence |
| Temecula – South (213) |
4 |
3 |
2916 |
8276 |
$ 380,000 |
$ 365,000 |
($15,000) |
44 |
|
Single Family Residence |
| Temecula – South (213) |
4 |
4 |
2976 |
6534 |
$ 339,950 |
$ 340,000 |
$50 |
22 |
|
Single Family Residence |
| Temecula – South (213) |
4 |
3 |
3113 |
15246 |
$ 300,000 |
$ 304,000 |
$4,000 |
198 |
Short Sale |
Single Family Residence |
| Temecula – South (213) |
4 |
4 |
3263 |
6969 |
$ 329,000 |
$ 325,000 |
($4,000) |
43 |
Bank Owned |
Single Family Residence |
| Temecula – South (213) |
4 |
3 |
3404 |
8276 |
$ 345,000 |
$ 360,000 |
$15,000 |
41 |
Short Sale |
Single Family Residence |
| Temecula – South (213) |
4 |
3 |
3614 |
6534 |
$ 356,400 |
$ 375,000 |
$18,600 |
58 |
Bank Owned |
Single Family Residence |
| 5 Bedrooms |
| AREA |
BEDS |
BATHS |
SQ FT |
LOT SIZE |
LISTED |
SOLD |
DIFFERENCE |
DAYS OF MARKET |
SALES TYPE |
PROPERTY TYPE |
| Temecula – South (213) |
5 |
3 |
2574 |
5663 |
$ 259,900 |
$ 250,000 |
($9,900) |
133 |
Short Sale |
Single Family Residence |
| Temecula – South (213) |
5 |
3 |
2648 |
8712 |
$ 350,000 |
$ 270,000 |
($80,000) |
1 |
Short Sale |
Single Family Residence |
| Temecula – South (213) |
5 |
3 |
2726 |
10890 |
$ 315,000 |
$ 315,000 |
$0 |
80 |
Short Sale |
Single Family Residence |
| Temecula – South (213) |
5 |
3 |
3086 |
6969 |
$ 365,000 |
$ 371,000 |
$6,000 |
6 |
|
Single Family Residence |
| Temecula – South (213) |
5 |
3 |
3106 |
12632 |
$ 310,000 |
$ 350,000 |
$40,000 |
7 |
Bank Owned |
Single Family Residence |
| Temecula – South (213) |
5 |
5 |
3248 |
10019 |
$ 325,000 |
$ 350,000 |
$25,000 |
141 |
Short Sale |
Single Family Residence |
| Temecula – South (213) |
5 |
4 |
3273 |
8712 |
$ 318,000 |
$ 312,000 |
($6,000) |
65 |
Bank Owned |
Single Family Residence |
| Temecula – South (213) |
5 |
3 |
3342 |
7405 |
$ 389,900 |
$ 389,000 |
($900) |
17 |
|
Single Family Residence |
| Temecula – South (213) |
5 |
4 |
3433 |
6534 |
$ 412,000 |
$ 405,000 |
($7,000) |
21 |
Standard |
Single Family Residence |
| Temecula – South (213) |
5 |
4 |
3522 |
6098 |
$ 419,000 |
$ 418,750 |
($250) |
82 |
|
Single Family Residence |
| Temecula – South (213) |
5 |
4 |
3522 |
6534 |
$ 470,000 |
$ 447,500 |
($22,500) |
7 |
|
Single Family Residence |
| Temecula – South (213) |
5 |
3 |
3708 |
9147 |
$ 399,000 |
$ 415,000 |
$16,000 |
44 |
Short Sale |
Single Family Residence |
| Temecula – South (213) |
5 |
5 |
3755 |
7405 |
$ 388,000 |
$ 388,000 |
$0 |
3 |
Bank Owned |
Single Family Residence |
| Temecula – South (213) |
5 |
5 |
3755 |
6534 |
$ 375,000 |
$ 390,000 |
$15,000 |
6 |
Standard |
Single Family Residence |
| Temecula – South (213) |
5 |
4 |
4078 |
6969 |
$ 425,000 |
$ 425,000 |
$0 |
86 |
Short Sale |
Single Family Residence |
| Temecula – South (213) |
5 |
4 |
4115 |
5227 |
$ 325,000 |
$ 338,000 |
$13,000 |
145 |
Short Sale |
Single Family Residence |
-
A federal tax credit makes energy-efficient solar water heaters a more affordable and sustainable option for many homeowners. Read
-
Upgrading to an energy-efficient heating and cooling system can save hundreds on your utility bills and earn you a tax credit worth as much as $1,500. Read
-
Replacing your roof with a qualifying energy-efficient metal or asphalt roof can cut your cooling bill and earn you a $1,500 tax credit. Read
-
A federal tax credit makes adding insulation an even cheaper way to improve your home’s energy efficiency and cut your heating and cooling bills. Read
-
If money seems to be escaping through drafty windows, doors, and skylights, this federal tax credit might make energy-efficient replacements more affordable. Read
According to the guys at the TBWS Daily, the National Association of Mortgage Brokers conferance put to sleep the rumor that FHA down payment requirements were going to climb from 3.5% to 5%.
We will update you as soon as the official statement is released.
If you or someone you know is in danger of losing your home to foreclosure, call us!
760-689-BANK (2265) state your name and your situation and our team of specialist will call you for a free consulation.
http://shortsalemc.com/
 Approved Short Sale for February 2010 We just got an approval for a short sale in Bellflower – FHA Buyer ready to close in 7 days!
Great job team!
by Michael-Edward Cruz – California Real Estate Broker 951-572-2789
I found a promising article detailing how some lenders are beginning to shift their focus from foreclosure to short sales. Unfortunately I could not link to it on my blog due to copyright laws.
Some Lenders are now considering short sales as a real solution. AFTER the mass foreclosures in 2007 – 2008, AFTER the disaster in modifications in 2009, they might finally be listening to us.
I can’t really complain though. Before I worked for this team lead by Troy Huerta, 2 out 3 of my deals foreclosed! I was a typical agent throwing darts in the dark and having the closing figures to show for it. My success rate was less than 33%. Since teaming up with Troy, my success rate is an admirable 100%, so far. This year alone our team has already closed 20 transactions!!!
A big part of my difficulty stemmed from my lack of planning to deal with lenders rather than the lenders not actually listening. Lenders will always find ways to make more and more money no matter what. Otherwise, how will their CEO’s be able to remodel their offices for less than $2 million? When dealing with our pre-foreclosure transactions, we focus our job on showing them that a short sale is better than a foreclosure. Most of the time a short sale is better, unfortunately it is not always easy to get the lender to understand. That is why I have teamed up with Troy Huerta from the Real Estate Insight Team at Keller Williams.
Troy Huerta has been featured by Smart Money magazine (a Wall Street Journal
publication) as a Power Broker. The impressive part of Mr. Huerta’s success is his fundamental understanding of the short sale process and his ability to turn nearly every transaction into a win-win-win situation for lenders, sellers, agents (and buyers). Armed with a strong lending background, Troy foresaw the market turn and did everything he could (including purchasing a local and well-established real estate office) to position himself one step ahead of the rest. The first year (June 2007 – June 2008) he had successfully closed 50+ short sales at a time when offices were folding like houses of cards and agents were being driven from their once thriving (and easy paced) careers. His understanding of how lenders work has made him the “go to guy” on short sale transactions. He has held DRE credit courses on short sales and currently designates certificate courses for agents looking to break into this market. His success has been truly amazing. He has a great team that I am lucky to be a part of.
After my first experience as an REO agent, I knew that this was not the answer for me in this market. The whole experience was not worth the money I made when the sale was finalized. I went into this business to help people realize their dreams of homeownership, not contribute to the nightmare of foreclosure.
I am happy with my choice to be persistent and find a way to become successful with the short sales. Most agents ran from this (sooner or later). Most of the agents I have talked to have said “It’s too much work”, ” I hate dealing with lenders” and my favorite, “they take forever to close”. I agree that they should not work on short sales. You have to love it and “get it” like we do. A comprehensive list of negotiators you’ve closed with in the past doesn’t hurt either.
While our primary focus is on listings and homeowner assistance, we offer professional negotiation services to agents who can’t or don’t want to handle the negotiation portion of their transactions. Our system of short sale closings enable us to continue our success as things get “easier”.
WITH LENDERS WORKING WITH US + OUR SUCCESS WHEN THEY WERE NOT = THE ABILITY TO HELP AS MANY PEOPLE AS POSSIBLE IN 2010
Are you late on your mortgage? Do you have an NOD and are in danger of foreclosure? Do you know someone who is struggling to make ends meet? Is the loan modification game getting you tired and at greater risk of foreclosure? CALL THE NUMBERS BELOW, LEAVE A MESSAGE WITH YOUR SITUATION AND A SPECIALIST WILL CALL YOU TO DISCUSS YOUR OPTIONS
North San Diego County – 760-420-5498 – http://lenderhelpinc.com
South Orange County – 949-630-9743 – http://shortsalemc.com
South Riverside County – 951-BANK-GIRL – http://livinginharveston.com
from pablos77 at msn.com forum
They posted the following
” I started to get a mod from Citi in March of 09. The first two slimes told me that if I was current on the payments they wouldn’t work with me. I couldn’t believe they would tell me that so after the first one I recorded all my calls. The second time I talked to the 2nd slime that I had originally talked to she said she would NEVER have told me not to stop my payments and the best way to avoid foreclosure was to get caught up on my payments - two months late due to their advice. Same voice- same slimeball- lying through her slimy teeth. The next episode after trying for two months to get someone to follow through on the fact that they said they were going to modify the loan in two weeks ( two months ago starting in March) was the Obama HAM trial payment plan that we were “qualified” for due to lack of employment, interest only loan, and the house being upside down to the tune of about $150,000. All we had to due was make the three “trial” payments of the new amount and at the end of three months they would change the payment to the same amount. Three months later after making the payments on time with cashiers checks– I saved all the copies, the mail receipts, the signature pages from the slimy reps that got the checks- all well before the due dates. After the three months payments were all sent in the slime ball Citi mortgage told me that they couldn’t change the loan to the “trail” payment amount cause the “investor” wasn’t participating in the Obama HAM program. When I asked them why they didn’t know that prior to “qualifying” me for the loan and taking my money they hemmed and hawed and said they didn’t know. What they didn’t know that I knew was that THEY ARE THE INVESTOR. Pretty funny huh? After hiring a lawyer and threatening them with a lawsuit for illegal fair trade violations, fraud, and a few other items and letting them hear some of the tapes ( I have about 20 hours of lies, diversions, and flimflam crap), they modified the loan to be $160 less per month after I agreed to not sue them and to never use the evidence against them on a special form I think they made just for me. They added fees, interest, and other misc. who knows what onto our loan to the tune of $35,000.00. So bottom line- to save a total of $4000.00 over 5 years it is gonna cost us $31,000.00 added to our principal. LOL. Can you believe this ? The real problem of course is that the same bank- Citi- that originally appraised the house and gave us the mortgage now won’t refinance it because we were late with the payments (that they said to be late with and ruined our 700 credit scores) , and the house is upside down so they wouldn’t do it even if our credit scores were in the good range. Screw them. We are gonna live in the house as long as possible without paying for it. I’ve already found several sellers with really nice houses that are willing to carry us at 5.5 – 6.0 % for at least 8 years ( time to get our credit scores straightened out- like that really makes a difference) and get this all behind us with a payment that is a third of our old one and granted the house isn’t quite the same, but I’m sleeping at night and we have a nice new place to live that is very affordable. So I hope somebody else recorded all their calls with the bank and if so, I still have mine and would be happy to pass them on to anyone that might be interested in exposing the rat **** for the slime that they are and the scam they have pulled on the American taxpayers.”
_____________________________________________________________________
Pretty frustrating experiences, instead of letting the home go into foreclosure they should have gone the short sale route though. Still this is pretty much the feeling out there in many households looking avoid being victims of these very powerful institutions.
If you or someone you know are having difficulty paying for you home call us
Troy Huerta (Short Sale Team Leader for California)
Michael-Edward (Short Sale Specialist)
951-572-2789 South Riverside County – Temecula Redhawk – Home Office
949-630-9743 South Orange County Office
760-420-5498 North San Diego County – Troy Huerta – Team Leader
I have personally helped many people modify their home loan. But with so many predators out there the State of California made it illegal to charge for these services. Still when people try and do this on there own it takes a toll on them.
Their is no way to guarantee anyone that a modification will work. We simply showed people our results. Ironically many people we helped eventually realized that modifications didn’t really help them in the long run. Many people later decided to short sale. I have two like this right now. Another thing they don’t tell you is that you will miss out on many incentives and tax breaks to short sale now.
As well you can in some cases get a home loan a day after you short sale your property. So to me modifications suck !!! still here is an interesting article I found on what is accurately headlined as
MORTGAGE MODIFICATION HELL
If you or someone you know are having difficulty paying for you home call us
Troy Huerta (Short Sale Team Leader for California)
Michael-Edward (Short Sale Specialist)
951-572-2789 South Riverside County – Temecula Redhawk – Home Office
949-630-9743 South Orange County Office
760-420-5498 North San Diego County – Troy Huerta – Team Leader
I personally do not use credit cards any longer. I would rather deal with the mob when borrowing money. At least they kiss you before they _ _ _ _ you.
Here is an interesting article I found that illustrates the banks creative way to boost profits, even with Government intervention.
Like I keep telling people, all this would stop if we as consumers would just stop using their services. Remember they are not forcing you to use them. I will say that next time they come looking for a bail out say HELL NO! They can afford it!
CREDIT CARDS AND THE LOVELY BONUSES FOR THE CONSUMER
If you or someone you know are having difficulty paying for you home call us
Troy Huerta (Short Sale Team Leader for California)
Michael-Edward (Short Sale Specialist)
951-572-2789 South Riverside County – Temecula Redhawk – Home Office
949-630-9743 South Orange County Office
760-420-5498 North San Diego County – Troy Huerta – Team Leader
With Banks coming out on top with the bail out money, making BILLIONS on ridiculous overdraft fees that hurt those weakest to fight back and being able to make a double profit on foreclosure by buying other banks bad debt cheaper then getting government money……
You would think that they would at least stick to foreclosing on homes they owned.
The story below shows the power and arrogance that is Bank of America.
BANK OF AMERICA – THE NEW EVIL EMPIRE
If you or someone you know is in danger of losing your home to foreclosure, don’t deal with them on your own. Get expert help, call us today.
Michael-Edward Cruz
Short Sale Specialist
951-572-2789
Troy Huerta
Team Leader
760-420-5498
We found this very interesting article about loan modifications and lenders.
http://www.msnbc.msn.com/id/35062033/ns/business-answer_desk//
For help with your short sale call us
North San Diego County
Troy Huerta
760-420-5498
http://lenderhelpinc.com/
South Riverside
Tiffany Ayres
http://livinginharveston.com/
South Orange County
Michael-Edward Cruz
949-630-9743
http://shortsalemc.com/
Michael-Edward Cruz and Troy Huerta agree that Short Sale transactions will see an uptrend in 2010. Michael specializes in working with short sales South Orange County as well as communities in South Riverside County like Redhawk in Temecula California. Troy works with clients in North San Diego communities such as Carlsbad, Vista, Oceanside and San Marcos.
They are working the short sale market and giving homeowners options to avoid foreclosure. They do not charge any ridiculous “fees” to get your process started. With a high success rate, they are looking for sales that can be completed. To find out if you qualify send a request on the home page by clicking the link www.shortsalemc.com
Here is an article from the California Association of Realtors with some news on Real Estate Financing for 2010. To subscribe see the links above under POST for the link.
Conforming loan limits extended through 2010
For release:
Friday, Oct. 30, 2009
Extension of conforming loan limits through 2010 earns praise from C.A.R.
LOS ANGELES (Oct. 30) –The U.S. Congress late yesterday passed a congressional resolution extending through 2010 the current conforming loan limits of $417,000 for most areas in the U.S. and $729,750 for high-cost areas, including many in California. President Obama is expected to sign the resolution today or tomorrow as part of a broader piece of budgetary legislation that will prevent a government shutdown.
The CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) and the NATIONAL ASSOCIATION OF REALTORS® (NAR) have long advocated making permanent higher conforming loan limits. As a result of C.A.R.’s and NAR’s efforts, a provision of the Housing and Economic Recovery Act of 2008 included temporarily raising the conforming loan limits from $625,500 in high-cost areas to $729,750 and extending the limits through 2009. Yesterday’s actions effectively extend the higher conforming loan limits for Fannie, Freddie, and FHA loans through 2010.
“There is no doubt that higher loan limits and the federal tax credit for first-time home buyers have helped stabilize California’s housing market over the last year,” said C.A.R. President James Liptak. “C.A.R. applauds our congressional representatives for their actions to extend the higher loan limits through 2010. They now should focus on making higher loan limits permanent.”
The conforming loan limit determines the maximum size of a mortgage that Government Sponsored Enterprises (GSEs) Fannie Mae and Freddie Mac can buy or “guarantee.” Non-conforming or “jumbo loans” typically carry higher mortgage interest rates than conforming loans, increasing monthly payments and hampering the ability of families in California to purchase homes by making them less affordable.
Leading the way…® in California real estate for more than 100 years, the CALIFORNIA ASSOCIATION OF REALTORS® (www.car.org) is one of the largest state trade organizations in the United States, with nearly 163,000 members dedicated to the advancement of professionalism in real estate. C.A.R. is headquartered in Los Angeles
If you purchased a home in Southern California last year and need information on collecting your tax credit click the link below for information on how to claim it.
LINK
If or someone you know is facing foreclosure and you live in Temecula California then give me a call. Our team has helped over 100 people in 2009 avoid foreclosure by short sale.
Michael-Edward Cruz
Short Sale Expert
951-572-2789
www.shortsalemc.com
If you live in North San Diego call our Team Leader Troy Huerta at 760-420-5498
www.lenderhelpinc.com
by Michael-Edward Cruz, California Real Estate Broker.
Have you heard? The government is trying to motivate lenders to avoid foreclosure.
According to statistics the sister program HAMP has been able to help about 9% of homeowners in trouble. Yes I said 9%, I think the average Realtor has been able to short sale about 20% without the extra help.
We have been able to close about 95% of our short sales because we understand the process. And in my case 95% was never a number I thought was even possible. It took hard work and perseverance but I made it.
I believe short sales have been an issue for two main reasons.
1. The staffing departments in loss mitigation departments exploded and this caused a huge learning curve and lack of adequate systems.
2. The mentality of these departments was that of a collections agent. Not actually mitigating loss but gambling to see how much they could get. I traded stocks for many years and some people said I was gambling, but my level of trading risk was nothing compared to these departments. They hang there risk on another agents appraisal-which many are unqualified to give, they lack any knowledge in real estate. Those talented and qualified loss mitigation agents are buried by thousand of request.
These departments have been filled with loan officers that went broke when the housing bubble bust. They had not been in business long enough to learn the fundamentals of selling homes and negotiating selling terms. They went from making an insane amount of money to broke. Now they are just looking for a steady paycheck.
I lost count of how many times lenders have foreclosed on a home which they would have made more on a short sale. Either because of price, commission, closing cost, basically the normal cost to sell a home, AND THEN sell it one to two months later for 20 to 30% less.
It’s not surprising that some Realtors refuse to touch short sales. Not to mention buyers who don’t want to wait for what seems like forever.
So do I think this HAFA program will work? I sure hope so but I am not going to hold my breath.
To me this will just serve to confuse more people and waste tax payer money. But if it works then great, because both Realtors and Homeowners need the help.
So is it all bad? THE ANSWER IS NO
There are many variables involved. All properties cannot be short sold but we need to go back to basics. Homes are held as collateral for money that is owed. With that you can begin to change the way you think about short sales.
It is all about education and negotiation, the Realtor is key to this part of the process. You need to work with an agent that can educate lenders as to the process, make it easy for them.
Yes make it easy, they have thousands of files, the agent needs to keep it simple. Then they need to negotiate intelligently, don’t sumbit offers with huge discounts, while this might work once in a blue moon. You will just cause the file to get tossed.
And you the seller is the second key. When looking to short sale your home you need to ask yourself a few things.
1- Can I repair my credit after a short sale?
2 – Is my loan a recourse or non-recourse loan?
3 – Do I have a Realtor that understands the short sale negotiation process?
4 – Do I have a valid hardship?
5 – Am I commited to settling these debts?
When you prepare this questions ahead of time, you can ensure a smoother short sale process.
Why waste your time trying to get a loan mod or a short sale that is never going to happen.
Why start with a process you are not committed to.
There is life at the end of this and yes your credit and your stability will return to normal.
We have helped many people reduce there housing expense by over 2/3. Our services are free to you as we are compensated by the lenders and or buyers. And because time is of the essence we encourage you get informed asap!
We look forward to helping the governments efforts to help people in foreclosure. While we are unsure of HAFA’s success, we are still committed to the process.
If you or someone you know is in danger of foreclosure call our short sale experts right away.
Michael-Edward Cruz 951-572-2789
Troy Huerta 760-420-5498
If there is no answer leave a message, if they are not on the phone with a lender they are helping clients.
According to some experts 2010 is set as year of recovery, largely in part to lender participation in short sales. According the the article,
“At the start of the foreclosure crisis, she says, banks accepted about one in every 10 offerings on short sales. But as the crisis worsened, the number of short sale homes closing in escrow has improved to one in every five homes.”
“Banks realize they typically are better off to close a short transaction than go through foreclosure,”
Michael-Edward Cruz and Troy Huerta have been working on short sales transactions since day one and they have been able to work with lenders even back when it wasn’t popular for lenders to help. “We have been able to consistently show lenders the benefit to a short sale.” said Michael-Edward Cruz
If you or someone you know needs a free short sale consultation then please have them call one our experts right away.
Michael-Edward Cruz
US Bureau of Recovery Inc
Short Sale Expert
951-572-2789 – RIVERSIDE OFFICE
949-630-9743 – OC OFFICE
EMAIL ME
Troy Huerta
Lender Help Inc.
Short Sale Expert
760-420-5498 RIVERSIDE AND SAN DIEGO COUNTIES
EMAIL ME
Tuesday, December 22, 2009
Fannie Mae, which facilitates the lending of almost one in four U.S. residential mortgages, says the recent 11% jump in home sales is proof-positive that the three-year housing slump may end in 2010.
The reality is that we have a ton of excess inventory to burn off before any meaningful recovery can commence.
But here’s a good start…
Rather than further embrace the loser’s game of foreclosure, banks are increasingly entering into short sales, where they accept a sale for less than the balance owed on a property…
“It’s finally dawning on the banks that they’re better off with a short sale,” said Richard Green, director of the Lusk Center for Real Estate at the University of Southern California. (Foreclosed homes can sit vacant for months. And they’re easy targets for vandals.)
Short sales tripled to 40,000 in the first six months of 2009. Yet, for each short sale there were still 25 foreclosures.
What’s holding the number of such sales down, however (and you’ll love this), is that bank employees have no short-sale training. I mean, who ever heard of a bank losing money on a mortgage?
Wells Fargo, Bank of America and JP Morgan (JPM : 41.635, -0.295) Chase are all adapting to the new reality by hiring more staff with proper short-sales training. The fact that banks are willing to accept these sales should limit the housing market’s downside in the year ahead.
by Robert Williams, Publisher
If you or anyone you know is facing foreclosure, needs to sell but has no equity or would simply like to know about the short sale process, then call our experts today.
Michael-Edward Cruz
US Bureau of Recovery Inc
Short Sale Expert
951-572-2789 – RIVERSIDE OFFICE
949-630-9743 – OC OFFICE
EMAIL ME
Troy Huerta
Lender Help Inc.
Short Sale Expert
760-420-5498 RIVERSIDE AND SAN DIEGO COUNTIES
EMAIL ME
See an actual example of of a lender actually looking at the reality of the situation and realize that a short sale was better for there bottom line. (link below)
|
|
