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California Legislation May Set Precedent

California legislators are working on giving homeowners a break from the leftover debt after a short sale or a foreclosure. The banking lobbyists want to retain the right to collect that debt and borrowers as well as the real estate industry wants that debt to be forgiven like it was in the depression era. The thinking is that it’s enough punishment to lose one’s home.

But bankers want to be able to collect the debt, especially where the homeowner refinanced, got cash out of the house to buy boats, cars, vacations, etc.

New York Times Article

I see the point — nobody should borrow more than they can, but then these loan programs led borrowers to believe that the banks thought they could afford the loan, the home, and the cash out.

Who’s ultimately responsible? I have to call out the banks. It was shocking to me even then, back in 2001-2004, to hear the sales pitch of some of the lender reps that came to our office. The requirements to qualify borrowers kept getting looser and looser, allowing low credit scores, no income documentation, high loan to value, and high debt ratios which all contributed to this mess we are in now.

I think both borrowers and banks have to take responsibility, but the greater weight should be on the banks and investors who led us down that now-spiky path.

Lynette Hensley,  Associate Broker

Keep Your Credit Report Healthy

Most people would rather think about water skiing or tulips than credit scores, at least until they apply for a mortgage or some other kind of loan. But it’s a good idea to pay attention, however briefly, to your own credit situation.

Here’s How It Works
Credit scores give lenders an idea of your ability to repay loans. But your score isn’t determined by the lender; rather, several credit information bureaus compile and calculate them. Your credit report shows all of your outstanding debts: credit cards, mortgages, student loans, car loans etc. The report also provides your payment history with respect to each of these debts.  

Things to Know
Each time you apply for credit, your credit report is checked which can cause your score to drop slightly. So when you receive those junk mail “pre-approvals” don’t be tempted to apply simply because they are offered to you. Too many open credit cards, credit cards charged to the hilt, or 30+ days late payments can cause credit headaches. Judgments and collections will cause bigger problems and need to be paid before a mortgage lender will close a loan.  Please call us, we’re never too busy to offer guidance with your credit. There are often very simple solutions.

Now the Serious Stuff
It makes sense that mortgage foreclosures, bankruptcies and vehicle repossessions tend to give lenders pause. However, if enough years have passed and a clean credit history has replaced any “kisses of death”, lenders will take that into account.  

No Need for Hypochondria
People who tend to be very careful with credit often think that being a few days late on a utility bill is going to sink their credit scores into bad credit risk territory. Not so! Payments made after the next due date are considered 30 days late. However, you’re still better off paying your bills on time–who wants to pay credit card fees or risk a slow mail delivery?!  

Yearly Checkups
It’s a great idea to get a copy of your credit report yearly. Even when you know you’ve been careful with your payments sometimes the wrong information shows up on credit reports. A similar name or an incorrectly entered social security number can appear without your knowledge. You can challenge the error with the creditor, or with the credit reporting agency. Either way, it’s important to fix it as soon as possible. 

Lynette Hensley
Associate Broker

Tags: borrower, Credit Report, first time homebuyer

Loan Modifications

Has your income dropped since you first bought your home?  Are you having trouble making your payments? Is your interest rate about to reset? Could you keep your home if you could lower your interest rate or change your interest only payment into a fully amortized loan that won’t reset? By significantly reducing your monthly payments, what if you could transform your problem payment into a property worth keeping?

Our loan modification specialists have negotiated and closed many transactions like these.  They are 100% professional, ethical and DFI (Department of Financial Institutions) compliant, boasting a phenomenal track record helping homeowners who have reduced income yet still wish to keep their home.  It’s time to take action and find out whether you are qualified! 

Fill out the form HERE and you will be connected with a real person who will give you real results.

Tags: Foreclosure, loan modifications, Short Sale

Heading Towards Foreclosure?

Do you know someone who is fretting over how to make their mortgage payments?

Call Today . . . 425 772 7231

As short sale listing agent specialists, we have the expertise to save their credit, focus on a plan of action which will relieve worry and, most of all, help a family. Through the process of a short sale, we can save most people from going into foreclosure.

Unfortunately, we do not have a free get-out-of-your-mortgage card.  Nobody does.  Please do not fall prey to those false promises.

Take action now! Time is not your friend.

Call us today at 425-772-7231 for a private and confidential consultation to get you started on the path to recovery.

______________________________________________

Larry and Lynette are dedicated to assisting property owners with loan modifications & short sale solutions.

We have developed a far-reaching network of  mortgage companies, lenders and Realtors®, loan modification and debt .  The strength of our business is based on experience, knowledge and relationships and is invaluable.

Larry and Lynette are here to help you move forward. Regardless of your circumstances, we have powerful solutions available for you.  Call 425-772-7231 to get started today.  

Lynette Hensley
Associate Broker
Larry Baumgartner
Real Estate Professional, CNE
425.772.7231 Lynette | 206.291.4117 Larry
ComeBuyAHouse.com
L2@comebuyahouse.com
Asset Realty Group

Tags: forelcosure, loan modification, Short Sale

Home Affordable Foreclosure Alternatives (HAFA) Program

Here is Obama’s program that we may be able to utilize in your short sale.  Call me and let’s see. –Lynette 425 772 7231

Home Affordable Foreclosure Alternatives (HAFA) Program

Many homeowners may feel that they can no longer afford their home, but want to avoid the negative effects of foreclosure. The Home Affordable Foreclosure Alternatives (HAFA) Program offers homeowners, their mortgage servicers, and investors an incentive for completing a short sale or deed-in-lieu of foreclosure. With these options, under HAFA, a homeowner leaves their home to transition to more affordable housing and alleviate the mortgage debt they owe.These options are available for homeowners who: 1. do not qualify for a trial mortgage modification under the Making Home Affordable Program; 2. do not successfully complete the trial period for their modification; 3. miss at least two consecutive payments during their modification period; or 4. request a short sale or deed-in-lieu of foreclosure.Short Sale In a short sale, the servicer allows the homeowner to list and sell the mortgaged property with the understanding that the net proceeds from the sale may be less than the total amount due on the first mortgage. Deed-in-Lieu of Foreclosure Generally, if the borrower makes a good faith effort to sell the property but is not successful, a servicer may consider a deed-in-lieu of foreclosure. With a deed-in-lieu, the borrower voluntarily transfers ownership of the property to the servicer— provided the title is free and clear of mortgages, liens, and encumbrances. The HAFA Program streamlines both of these options to make them easier for a homeowner to work with their servicer. Under the program, a homeowner can receive $3,000 to help with relocation costs. Mortgage servicers and investors write their own guidelines under the Federal requirements to determine how to implement the program. For more information about your options, you should contact your mortgage servicer. If you have questions about the program, or want guidance about how these options may impact your personal situation, you may wish to speak to a HUD-approved housing counselor for free. Your Graceful Exit Watch a video to learn more about the Home Affordable Foreclosure Alternatives Program. Making Home Affordable and Other Options to Remain in Your Home Mortgage servicers who participate in the Making Home Affordable Program are required to evaluate homeowners for a Home Affordable Modification before evaluating them for other options.  If you request a modification from your mortgage servicer, and are determined to be eligible, you will enter into a trial period plan. If it is determined that you are not eligible for a Home Affordable Modification, your mortgage servicer will evaluate you for other alternatives they offer to keep you in your home, such as their own modification programs or a forbearance. A HUD-approved housing counselor can work with you for free to help you understand your options. Avoid Foreclosure: Know Your Options Watch a video to learn more about the Making Home Affordable Program and other options your mortgage servicer may provide. › Frequently Asked Questions

Tags: Foreclosure, HAFA, Short Sale

Short Sales Focus

Our local Seattle real estate market is continuing to require agents who know how to handle short sales. To that end, Larry and I now have systems in place to handle short sale listings and purchases. This is a new additional niche for our business.  This kind of listing or purchase requires a special focus and knowledge about short sales because, to be clear—it’s the Wild Wild West out there. The guidelines and rules can be very different from lender to lender.

To begin, here’s a definition of “short sale”.

Watch for more updates and information right here.We’ll keep you informed as issues develop.

Best to you!

Wild West Gunslingers……Lynette & Larry

Tags: Foreclosure, Short Sale