Below are the 6 most recent journal entries recorded in haroldafellis' InsaneJournal:

Saturday, March 26th, 2011
8:53 pm	Everything You Need To Be Aware Of With a Deed in Lieu of Foreclosure Deed in Lieu of Forclosure A deed in lieu of foreclosure is a quick and easy way to deal with a defaulting home loan. It is easier for the lender as well as the borrower when you compare it to a formal foreclosure. In this process, the borrower who cannot pay his mortgage voluntarily hands his keys over to the lender. It is no longer imperative for the borrower to go through the foreclosure process. When the borrower hands over his keys to the lender it releases him from most of his financial obligations in respect of the defaulting loan. Such obligations include side effects such as public notoriety. Although the procedure cannot save the home, the deed in lieu of foreclosure has a comparatively lesser negative impact on the borrower’s credit rating than what a mortgage foreclosure would have. This in turn puts the borrower in a better position of getting a loan in the future. This procedure could also lead to your debt or deficiency being forgiven. This process also makes it easier for the borrower to get another mortgage loan in the future. The lender is under no obligation to accept the deed in lieu. However, if the value of the property is at least equal to the over-due mortgage value, it would be in the lenders best interest to consider bypassing unnecessary time consuming foreclosure procedure. The merits of handling a defaulting home loan in this manner is that the lender can take control of the house immediately, whereas earlier he had to wait for the lengthy legal procedure to be finalized. This means that the borrower cannot live on the premises while the process is taking effect. This prevents the house from being sold for a profit during the foreclosure process. The borrower is not in a position to get the go ahead for a deed in lieu foreclosure. Only a bank can make such a decision and it is at the bank's discretion. For the process to go smoothly, the borrower is advised to contact the bank when he first starts experiencing financial troubles. The Deed in Lieu - Avoiding Foreclosure There are different rules attached to different mortgage companies. The mortgage company usually requires the home to be listed with a real estate agent for a minimum of 30 days and to have no liens attached. Sometimes the mortgage companies insist on the property being vacant. In some instances, the mortgage companies needs an internal appraisal of the property to be done 60 days before the foreclosure sale. The definition of a Deed in Lieu of Foreclosure is as follows; it is a disposition instrument in which a home owner voluntarily deeds the mortgaged property to the lender in exchange for a release from all obligations under the mortgage. One draw- back with deed in lieu of foreclosure is with the relinquishing of all rights to sales proceeds in excess of the over-due balance. The homeowner has to forfeit any claims on surpluses if the property sells for more than the outstanding mortgage. On the other hand, the lender cannot initiate a deficiency judgement against the borrower if the sale of the property fails to fetch enough money to cover the loan balances. Oftentimes. properties that could not be sold at auction are accepted by lenders against the deed in lieu by the owners. The lender becomes the legal owner of the property once the title deeds are in his name. The defaulting homeowners need to know how long the deed in lieu of foreclosure process will take. Once the foreclosure is set in motion, you will operate under the due diligence that is guided by definite time frames. This means a deed in lieu of foreclosure must be complete within three months' of its commencement. Additional things to consider with a Deed in Lieu A home owner should consult a tax practitioner before deciding on deeding out his home in lieu of foreclosure . Though this is referenced to as a friendly foreclosure, you should make sure of your obligations or the absence of them. If the borrower lacks any assets that makes a deficiency judgement worthwhile, the lender will often pursue a deed in lieu of foreclosure. However, if the property is worth more than the amount owed on it, it is better for the lender to liquidate the property. Once the lender has started the foreclosure proceedings, the lender and the borrower can decide to execute a deed in lieu of foreclosure. The entire process of securing a deed in lieu of foreclosure takes place outside the judicial system and is reached by a settlement out of court. The lender benefits from this process by saving on the costs of a formal foreclosure proceeding, having the ability to resell the property and to get paying occupants in to recoup some of the original loan. The benefit to the borrower is not having his credit rating marred by the foreclosure of the property. Current Mood: nauseated Current Music: Indy (Comment on this)
8:47 pm	All You Need To Understand About a Deed in Lieu of Foreclosure What is a Deed in Lieu A deed in lieu of foreclosure is a quick and easy way to deal with a defaulting home loan. It is easier for the lender as well as the borrower when you compare it to a formal foreclosure. This process sees the borrower voluntarily handing over his keys to the lender. Previously the borrower had to go through a lengthy foreclosure process but this is not imperative any longer. The process of handing over the keys generally releases the borrower from most of the obligations attached to the defaulted loan. It also protects him from public notoriety. The deed in lieu of foreclosure has a less negative effect on the borrower's credit rating than a foreclosure would. This in turn puts the borrower in a better position of getting a loan in the future. This procedure could also lead to your debt or deficiency being forgiven. This process also makes it easier for the borrower to get another mortgage loan in the future. The lender is not obliged to accept the deed in lieu. However, it would be in the lenders best interest to accept the proposal should the value of the property be at least equal to the value of the overdue mortgage. With this process, the lender is able to immediately take control of the house whereas with the foreclosure process, he would have to wait until the process was finalized. This in turn means that the borrower cannot remain on the property during the deed in lieu process. In this way it ensures the house cannot be sold profitably during the foreclosure process. The borrower is not in a position to get the go ahead for a deed in lieu foreclosure. Only a bank can make such a decision and it is at the bank's discretion. For the process to go smoothly, the borrower is advised to contact the bank when he first starts experiencing financial troubles. The Deed in Lieu Process Different mortgage companies have different rules. Typically, the mortgage company requires the home to have been listed with a real estate agent for a minimum of 30 days and to be free from any liens. Sometimes the mortgage companies insist on the property being vacant. Various other companies might require an interior appraisal of the property which should be done 60 days prior to a foreclosure sale. A Deed in Lieu of Foreclosure is described as a disposition instrument in which a home owner voluntarily deeds the mortgaged property to the lender in exchange for a release from all obligations under the mortgage. The one drawback of this process is that the borrower relinquishes all rights to the proceeds of the sale that are in excess of the over-due balance. The homeowner has to forfeit any claims on surpluses if the property sells for more than the outstanding mortgage. However, a lender cannot initiate a deficiency judgment in case the property fails to fetch the money to sufficiently cover the loan balances. Sometimes properties that could not be sold in auctions are also accepted by lenders against deed in lieu by the owners. When the title deeds are in lenders' name, he becomes the legal owner of the property. It is important for the defaulting home owners to know how long a deed in lieu of foreclosure will take to conclude. Once the foreclosure is set in motion, you will operate under the due diligence that is guided by definite time frames. This means a deed in lieu of foreclosure must be complete within three months' of its commencement. Other Factors in the Deed in Lieu Process It is advisable for the homeowner to contact a tax practitioner before deeding out his home in lieu of foreclosure. The homeowner needs to be aware of what his obligations are. If the borrower lacks any assets that makes a deficiency judgement worthwhile, the lender will often pursue a deed in lieu of foreclosure. If the property in question is worth more than the amount owed on it, the lender would be better off to simply liquidate the property rather than pursuing a deed in lieu of foreclosure. Once the lender has started the foreclosure proceedings, the lender and the borrower can decide to execute a deed in lieu of foreclosure. The entire process of securing a deed in lieu of foreclosure takes place outside the judicial system and is reached by a settlement out of court. A deed in lieu of foreclosure will benefit the lender by saving on the costs of a formal foreclosure proceeding and allowing them to resell the property and get a paying occupant so they can get back some of their original loan. Borrowers will benefit from a deed in lieu of foreclosure because it will free them from the possibility of having a foreclosure marring their credit histories Current Mood: nauseated Current Music: Indy (Comment on this)
8:16 pm	Facts about the Home Affordable Foreclosure Alternatives Program (H.A.F.A.) Homeowners whose mortgages are higher than the property’s market value and who cannot afford the mortgage payments because of job losses, or any other reasons, are faced with the decision to either short sale their home or just let the bank foreclose. It is far more beneficial for them to short sale their homes and with the new H.A.F.A program in place, the benefits became even greater. In an attempt to reduce foreclosures, the Home Affordable Foreclosure Alternative Program aims to streamline the short sale process. Short sales, transactions in which a lender accepts a payoff less than the balance due on a home loan, have become more common as the housing market soured. It is estimated that about one in every four homeowners owe more on their home loans than their homes are worth. The extent to which the program catches on remains to be seen. The new program is still finding an audience with homeowners and real estate agents. There is also mixed feelings about what impact it will have on community banks. This is a new government program that was implemented to help a certain portion of distressed homeowners avoid foreclosure by allowing a short sale of their home without any negative consequences to the homeowner. For those who qualify, this is a really great option. Homeowners get 120 days in which to short sell and they are also given the option of renewing the listing for one year if required. The entire time you are in the program the servicer will not foreclose on your home. The servicer as well as the investor of the mortgage is also accepting the conditions of the short payoff. This means that there can be no deficiency judgment made against the homeowner and likewise, no promissory note asked of the homeowner. This is the true advantage of the Home Affordable Foreclosure Alternatives program. The Home Affordable Foreclosure Alternatives program was officially launched on the 1st August and its main aim is to streamline and standardize the short-sale process which in turn will help banks and homeowners avoid foreclosure. The program includes incentives for qualified homeowners and real estate professionals such as; The homeowners can receive up to $3,000 in relocation costs. This will make it less likely that the house will be damaged on the way out which is what happens with foreclosures. Any future liability of the homeowner is released after the home is sold or deeded back to the bank. The homeowner can therefore not be held responsible for any loss on the loan experienced by the lender. Servicers cannot ask real estate agents to discount their commissions. After completing a short sale or deed-in-lieu-of-foreclosure, the servicer will receive a monetary incentive of $1,500 to $2,200. Secondary lien holders can get up to 6 percent of the outstanding principal balance, awarded in order of lien priority, with an aggregate total of $6,000 to all lien holders. This program seems like the perfect solution to the current housing crisis. It will decrease the number of foreclosures, streamline the short sale process , and standardizing the forms used by all participating mortgage servicers. This is the first step in fixing or reversing the housing issues facing the United States. You need to hire a realtor if you decide on doing a short sale. This is a prerequisite made by the lender. The realtor you choose can determine what type of experience you have so it is always in your best interest to choose a top realtor. When embarking on this process it is also always a good idea to seek out the services of an attorney and a tax professional. The other benefits of short sale are; You can buy a house immediately if you are not behind in your payments. However, if you are behind in your mortgage, you may have to wait for 2 years. When you submit a complete short sale package , the lender will postpone the foreclosure proceeding and will usually give you 2-4 months to close the transaction. You will have peace of mind because you will not have the stigma of a foreclosure record. Your credit score will only decrease by 30-200 points depending if you are behind in your mortgage or not. You can easily build up your credit by supplanting with good payment history, low credit balances and so forth. You are not legally required to disclose you had a short sale when applying for a loan. If you had a foreclosure on your property you would legally be required to disclose it. Not disclosing a foreclosure when applying for a loan is a federal offense. You may be able to negotiate with your lender to forgive the equity loan or non-purchase money loan. If not, you may negotiate to reduce the balance to almost nothing. Current Mood: nauseated Current Music: Indy (1 Comment |Comment on this)
8:04 pm	Information on Short Sales and todays Real Estate The prevailing economic environment is leaving a great deal of families in a financial crisis. Foreclosure statistics are continuously growing every year. Not very many areas have actually been hit as hard by the real estate catastrophe than California. In California alone, house foreclosures have shot up approximately 14% in the last quarter. Despite the fact that these statistics are shocking, it usually is hard to believe that lenders themselves do not wish to deal with the foreclosure process. It is not generally a beneficial resolution for lenders when a San Diego foreclosure takes place. There are some substantial costs that comes by way of a foreclosure and having to take back the house. The foreclosure procedure can cost around $77,000 and occasionally more. The homeowners can easily fork out in close proximity to $8,000 for professional services relating to the foreclosure. However, the larger fiscal responsibility is on the lending group or individual. The lender needs to settle the legal and documenting expenditures, advertising, likely property or home renovation, as well as the time and revenue it takes to look for an alternative purchaser. This is evidently why more and more people are opting to sell short rather than deal with the San Diego foreclosure laws and regulations. The short sale is additionally a considerably less embarrassing exit from the situation than the usual gigantic, foreclosure notice in the front yard. Short Sales take place whenever a lender allows a building to be sold for less than what is actually payable on the mortgage loan. In many cases, the lender will forfeit less cash in a short sale deal than if he lets the property enter into foreclosure. If a homeowner owes more than what the house is really worth, then this option is a lot better than dealing with a foreclosure. The sale will eradicate his financial debt for less than what he owes. Another advantage is that this system prevents a serious blemish on his credit ranking because a foreclosure has a greater adverse effect on your credit ranking when compared to a short sale. A short sale is definitely much simpler than a foreclosure. Nonetheless, it involves a legal approach. Dealing with seasoned industry experts, or a organization with a capable group of lawyers and tax advisers, can help you run through the challenging details. There are plenty of agencies that provide these kinds of real estate expertise. A California short sale is regarded as a win-win option for all sides. The lender receives a compensation amount in a much faster time than he would going through the foreclosure procedure. The lender additionally eliminates the potential risk of not being able to sell the house Then again, a California short sale is usually a long, slow and elaborate system. There are 5 steps which the homeowner needs to take to produce a prosperous short sale. The first is to get equivalent sales rates and an estimate of the expected high closing costs. This will help verify the existing marketplace worth of the property. He will have to then tally up all of the fiscal loans acquired against the property or home and subtract this from the forecasted proceeds of the sale. The homeowner then needs to make contact with the lender. He should insist upon talking to somebody in power concerning the short sale. The homeowner should remember that he is asking the lender to settle for less than the full amount payable so he must be resolute but cooperative. The homeowner must also be prepared to send the essential paperwork including a letter of consent giving the lender authorization to speak with specified interested individuals regarding your loan. The homeowner also need to provide his identity, address, the mortgage amount and the agent’s contact details. It is also usually a good idea for the homeowner to send a hardship letter outlining how you got into a fiscal crises, and to provide proof of his assets and income. He might also wish to include recent bank statements with an outline of any out of the ordinary deposits or withdrawals. He should likewise ensure that he submits his broker’s efficient market evaluation. The homeowner must feel at ease when working with an property broker who has experience with short sales. The vast majority of real estate agents have comprehensive short sale training and are for that reason awarded troubled property designations. In San Diego, the short sale option is much better than the foreclosure approach so homeowners shouldn't be embarrassed when enquiring about this course of action. Current Mood: nauseated Current Music: Indy (Comment on this)
7:55 pm	Important information on Short Sales and todays Real Estate The existing economy is leaving a lot of families in a financial crisis. Foreclosure levels are continuously escalating every year. Very few areas have actually been slammed as hard by the property catastrophe than California. In California alone, house foreclosures have inflated roughly 14% during the last quarter. While these statistics are overwhelming, it usually is difficult to believe that loan merchants themselves do not wish to deal with the foreclosure process. It isn't generally a beneficial resolution for lenders whenever a San Diego foreclosure comes about. There are some excessive fees associated with a foreclosure and taking back the house. The foreclosure system could cost nearly $77,000 and sometimes even a lot more. The homeowners may well fork out in close proximity to $8,000 for professional services relating to the foreclosure. Nonetheless, the larger fiscal burden is with the lending group or individual. The lender has to pay the legal and recording costs, advertising, conceivable property or home renovation, not forgetting the time and money it takes to find an alternative home buyer. This is evidently why more people are looking to sell short rather than deal with the San Diego foreclosure laws and regulations. The short sale is also a considerably less humiliating exit from the situation when compared to a large, foreclosure sign in the front garden. Short Sales take place when a lender allows a property to be sold for less than what is owed on the mortgage. Oftentimes, the lender will lose less money in a short sale financial transaction than if he lets the property go into foreclosure. If a homeowner owes much more than what the property is worth, then this choice is much better than facing a foreclosure. The sale will eradicate his personal debt for under what he owes. Another advantage is that this system prevents a major blemish on his credit ranking because a foreclosure carries a greater adverse impact on your credit rating when compared to a short sale. A short sale is unquestionably much simpler when compared to a foreclosure. Nevertheless, it involves a legal approach. Working with knowledgeable industry experts, or a company with a good group of lawyers and tax advisers, will help you run through the intricate specifics. There are plenty of businesses that provide these types of property expertise. A California short sale is regarded as a win-win solution for all parties. The lender gets a settlement amount in a considerably quicker time than he would going through the foreclosure system. The lender furthermore prevents the possibility of not being able to sell the house Even so, a California short sale is invariably a lengthy, drawn out and elaborate system. There are actually 5 steps that a homeowner ought to take to produce a effective short sale. The first is to get comparable sales rates and an estimate of the expected closing costs. This will assist to validate the prevailing marketplace worth of the property. He needs to then add together all the fiscal loans acquired against the property and subtract this from the approximated proceeds of the sale. The homeowner subsequently needs to make contact with the lender. He should insist on dealing with someone in authority with regards to the short sale. The homeowner should remember that he is asking the lender to settle for less than the total amount owed so he needs to be firm but accommodating. The homeowner also needs to be ready to submit the necessary paperwork which includes a letter of authorization issuing the lender permission to speak with specified interested groups about your loan. The homeowner also need to provide his identity, home address, the loan amount along with the agent’s contact information. Also , it is usually a good idea for the homeowner to submit a hardship letter explaining the way you got into a fiscal bind, and to present evidence of his assets and revenue. He might additionally wish to include current bank statements with an outline of any out of the ordinary deposits or withdrawals. He also needs to make certain he submits his broker’s efficient market evaluation. The homeowner should feel at ease when dealing with an estate broker that has knowledge about short sales. Many of the brokers have full short sale education and are therefore awarded troubled property designations. In San Diego, the short sale choice is much better than the foreclosure approach so homeowners mustn't be ashamed when enquiring about this specific procedure. Current Mood: nauseated Current Music: Indy (Comment on this)
Monday, March 7th, 2011
8:51 pm	The Short Sale Process - Relevant Info for Beginners Getting familiar with the Short Sale Process Not a lot of attention was given to short sales a couple of years ago when housing prices were booming. However, a lot of homeowners are now looking at the short sale process as a way of avoiding foreclosure. Short Sale: Defined Basically, the definition of the short sale process is when the lender of a property allows the property to be sold for less than the amount due on the mortgage loan. The obvious benefit to the short sale process is that it allows the seller to avoid the credit report damage associated with a foreclosure. A foreclosure takes a financial and emotional toll on the homeowner and can stay on his credit report for up to ten years. What to look out for in a Short Sale Short Sales can be great for the consumer but There are also negative effects that come with the short sale process. The I.R.S could view the debt forgiveness as a taxable income leaving the homeowner with a tax liability. Another downside to the short sale is that the lender can pursue the borrower for the deficiency balance which is the difference between the amount owed on the mortgage and the amount paid for the property. In some cases you may be able to avoid taxation if you can prove you are insolvent. But if insolvency is unsuccessful, and you are faced with a tax liability resulting from the deficiency amount, it may make more financial sense for you to let the lender foreclose. Short Sale Process The short sale process often varies but it is generally carried out in the following way. The homeowner will contact the lender to discuss the possibility of a short sale and to determine what the lender wants to complete the sale. The seller then issues a letter authorizing the release of personal information about the loan and the property to the buyer or escrow agency. The lender will then have a chance to review the settlement statement which indicates the proposed selling price, the remaining loan balances and all itemized expenses including the real estate commissions and other fees associated with the closing. The seller will also be required to compile a "hardship letter" which explains his financial difficulties. Lenders will usually want to validate the seller's financial situation by looking at bank statements, investment accounts, along with examining pay-stubs and other financial records. The lender will then look to the broker to provide a price opinion by examining the condition of the house and the market value of comparable properties. The lender will then carefully examine the purchase agreement to make sure that all the amount are reasonable and that he is happy with the real estate commission. The short sale process can be quite lengthy due to all the documentation that is required to complete the process. However, it can work out extremely well for all parties if it is done correctly. The lender avoids the uncertainty of the foreclosure process, the seller avoids a foreclosure on his or her credit report, along with potential bankruptcy, and the buyer hopefully got a good deal on a property. Considering the complexity of the short sale process, you must educate yourself about the process. You should always consult with a competent lawyer and accountant before going forward with the short sale. The more educated you are on the process, the easier the transaction will be, and the better the impression you will make on the lender. Buying a Short Sale If you are a buyer looking for that steal the short sale process is one that buyers are beginning to embrace. With a bank owned property, the bank already owns the asset and can make decisions quickly about the approval of the sale because they have already written down the loss on the property. As a buyer of the Short Sale there are several factors you must first be aware of in the purchase of a Short Sale asset. You first must ascertain whether or not the value at which the home is listed for is a realistic price. Always remember that the bank will do their own evaluation of the home and if they feel your offer is not in line with what they think they can get for the property it will get foreclosed. Have your Realtor do a Broker Price Opinion for you as a buyer. This will give you credibility when you present your offer to the bank. The chances of the sale going through increase with each piece of information you supply the bank. The buyer should also ensure that the seller is making an effort to get the short sale approved on his behalf. You also need to find out if the seller already has a pre-approved short sale. This information is all public record so look up the property and find out for yourself what the status of the home may be. Short sales can present the buyers with great value and if done correctly, it can feel like they have hit the lottery. For more info on the short sale Process please contact us. Current Mood: nauseated Current Music: Indy (Comment on this)