October, 2010

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18
Oct 10

New Short Sale Law to Protect Homeowners From Deficiency

New Short Sale Law to Protect Homeowners From Deficiency
February 24, 2011 By Phill Grove Leave a Comment

SB 931 is a new short sale law created to protect California homeowners from deficiency judgments.

New Short Sale Law
I read a good article online from Stephen McMullen, a lender out of California, about the new California short sale law being passed to protect the homeowners from deficiency judgments.
A deficiency judgment is when the bank sues the homeowner for the difference between the mortgage note and the sales price. For example, if a homeowner had a mortgage of 0,000 and the house sold via short sale for 0,000, the bank could sue the distressed, homeless homeowner for the ,000. Obviously, a new short sale law to protect the homeowner is necessary.
What is the new short sale law?
The new short sale law SB 931 took force January 2011. This short sale law brought protection for homeowners from deficiency on first mortgage’s. This law does not handle second mortgage’s or non-purchase money loans.
What represents a purchase money loan? A purchase money loan constitutes a loan that was drawn out for the original purchase of the residence. This includes both 1st and 2nd mortgages in use for the purchase of the household.
What is a non-purchase money loan? A non-purchase money loan is one that has been taken out after the original purchase of the property. Equity lines of credit would be the most common type of non-purchase money loan.
The following is a different variation of the new short sale law:
580e. (a) No juridical decision shall constitute rendered for any deficiency under a note secured by a
1st deed of trust or 1st mortgage for a home of not more than 4 units, in any
case in which the trustor or mortgagor sells the dwelling for less than the remaining
amount of the liability due at the time of short-sale agreement with the composed consent of the
bearer of the 1st deed of trust or 1st mortgage. Composed consent of the holder of the
first deed of trust or first mortgage to that sale shall obligate that holder to accept the
sale proceeds as full payment and to fully discharge the remaining amount of the
debt on the 1st deed of trust or 1st mortgage.
Whenever the trustor or mortgagor commits either fraud with regard to the short-sale of, or waste
with regard to, the real property that secures the first deed of trust or first mortgage,
this section shall not restrict the ability of the holder of the first deed of trust or first
mortgage and seek damages and use existing rights and remedies against the trustor or
mortgagor or any 3rd party for fraud or waste.
(c) This section shall not apply if the trustor or mortgagor is a corporation or political
subdivision of the state.
Spotlights of the new practice of law:
a. If a lender provides written consent to a short-sale on a first mortgage, the lender must
consent the short-sale proceeds as full payment.
b. Applies to all 1st mortgages
Exceptions:
Fraud
ii. Waste (damage)
d. It cannot be retroactive.
4. New opinion on foreclosure in CA:
a. Lenders are barred from further lender action if they use a non-judicial
foreclosure…regardless of the of loan type (non-recourse or recourse)!
b. Most foreclosure in CA are non-judicial
5. Summary: Commencing Jan. 1, 2011, if a first lien position short-sale lender accepts a short-sale or completes
a non-judicial foreclosure…they are finished!
The short-sale process has come a long way and I conceptualize there will continue to be protection for the homeowner in relation to* anti deficiency laws and tax laws. There is a lot of homeowners that have been confronted with a short-sale on their home that we need to do something. The idea of lenders coming after former homeowners for deficiency judgements would be adverse. http://www.profitedition.com/sb-931-takes-effect-new-short-sale-law-protecting-homeowners/
New Short Sale Law Summary
In conclusion, while I don’t believe that homeowners should be rewarded for going through short sales or foreclosures, distressed families that have just lost their houses shouldn’t be subject to short sale deficiency judgments either. There’s only so much blood to squeeze from a turnip, and the banks have been gifted trillions of dollars from taxpayers to help with these deficiencies (that are instead being passed out to bank execs as record breaking bonuses). Therefore, I am happy to see this new short sale law and hope distressed homeowners receive protection from the lawsuits.

If you liked ‘New Short Sale Law to Protect Homeowners From Deficiency’ then you may also enjoy other articles written by Phill Grove at http://www.REIMaverick.com

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11
Oct 10

Leads Mortgage- Significant Guideline For Home Mortgage New

When buying a home we can all advantage from tips. Tips generally help you to find the best mortgage deals. In addition, you understand what to look for when you have knowledgeable tips.

 

As you search for leads mortgage related information or other information about 3 bureau credit report or home mortgage refinance, take your time to view the below article. It will provide you with a really refreshing insight into the leads mortgage information that you need. After going through it you will also be better informed about information in some way related to leads mortgage, such as id mortgage to pay off credit card debt or even rates.

 

While you in the attic check the insulation up there. Are you going to have to insulate or add to the current to make the home warmer and cheaper to heat? Sometimes the walls are not insulated either; if the home has blown in insulation in the wall you could see plugged holes on the outside.

 

I’ve been a Florida mortgage broker since 1989. My corporate is also licensed in Georgia, Massachusetts, and Virginia. We talk to a lot of people about home financing. It’s my experience that when people are shopping for a mortgage they usually fixate on the interest rate, and overlook the points. Interest rate and points are inversely related. Unless you specify that you do not need to pay points a lender is likely to expense your loan with one or two points. This will make your rate lower, but it may not be a much better deal. If the lower rate saves you fifty dollars a month on your payment but you pay an further five thousand dollars in points, it will take you eight years to catch up with the expense of the points. Do the math.

 

BREATHER — As you pause on reading this article I hope it has so far provided you with insightful information related to leads mortgage. Even if it hasn’t so far, the remainder will, whether your interest is leads mortgage directly or other related angle such as rates, loans, sub prime lending u s subprime mortgage crisis or mortgage rate interest.

 

Read the mortgage contract carefully. Prior to you sign up for a home loan you should always read and understand the credit contract from the lender. This contract by law need to outline the terms and conditions of the loan in plain English.Seek independent legal and financial advice when you are entering into any contract, especially one of this magnitude. Keep under consideration, once you’ve signed their allowance contract you’re bound by the lender’s terms and conditions.

 

This is where most people slip up. It generally happens like this-you’ve found the home of your dream, the only problem is it’s just out of your price range and you really have your heart set on this house. Thus you choose to go down to the bank and determine if they can aid you. The bank of course lays out a great looking mortgage for you, even though you believe to yourself the repayments are a little steep you sign on the dotted line as you figure you’ll just try to save a little more or work a few more hours. Nonetheless  you end up justifying it you get a huge fat mortgage you’ll’t pay off. All this is great until you or your partner lose their job, or family crisis happens, and the repayments can’t be met (everyone thinks it won’t happen to them, but trust me it happens). The bank that was therefore nice to give you that great looking mortgage isn’t hence nice all of a sudden as you’ll’t meet your rebates. They eventually foreclose on the house and your dream home is gone.

 

We were thrilled to know that many people found this article about leads mortgage and other mortgage loan calculator, rapid city real estate, current mortgage rates, and even realty inc real estate and mortgage loans helpful and information rich.

 

If you want aid finding the best mortgage  or remortgage deal for you, take a current time and fill out this simple questionnaire. Once you have do therefore, a SimplyFinance representative will contact you to introduce you to a mortgage broker that can also search to find the best mortgage deal for you.

When buying a home we can all advantage from tips. Tips generally help you to find the best mortgage deals. In addition, you understand what to look for when you have knowledgeable tips.

 

As you search for leads mortgage related information or other information about 3 bureau credit report or home mortgage refinance, take your time to view the below article. It will provide you with a really refreshing insight into the leads mortgage information that you need. After going through it you will also be better informed about information in some way related to leads mortgage, such as id mortgage to pay off credit card debt or even rates.

 

While you in the attic check the insulation up there. Are you going to have to insulate or add to the current to make the home warmer and cheaper to heat? Sometimes the walls are not insulated either; if the home has blown in insulation in the wall you could see plugged holes on the outside.

 

I’ve been a Florida mortgage broker since 1989. My corporate is also licensed in Georgia, Massachusetts, and Virginia. We talk to a lot of people about home financing. It’s my experience that when people are shopping for a mortgage they usually fixate on the interest rate, and overlook the points. Interest rate and points are inversely related. Unless you specify that you do not need to pay points a lender is likely to expense your loan with one or two points. This will make your rate lower, but it may not be a much better deal. If the lower rate saves you fifty dollars a month on your payment but you pay an further five thousand dollars in points, it will take you eight years to catch up with the expense of the points. Do the math.

 

BREATHER — As you pause on reading this article I hope it has so far provided you with insightful information related to leads mortgage. Even if it hasn’t so far, the remainder will, whether your interest is leads mortgage directly or other related angle such as rates, loans, sub prime lending u s subprime mortgage crisis or mortgage rate interest.

 

Read the mortgage contract carefully. Prior to you sign up for a home loan you should always read and understand the credit contract from the lender. This contract by law need to outline the terms and conditions of the loan in plain English.Seek independent legal and financial advice when you are entering into any contract, especially one of this magnitude. Keep under consideration, once you’ve signed their allowance contract you’re bound by the lender’s terms and conditions.

 

This is where most people slip up. It generally happens like this-you’ve found the home of your dream, the only problem is it’s just out of your price range and you really have your heart set on this house. Thus you choose to go down to the bank and determine if they can aid you. The bank of course lays out a great looking mortgage for you, even though you believe to yourself the repayments are a little steep you sign on the dotted line as you figure you’ll just try to save a little more or work a few more hours. Nonetheless  you end up justifying it you get a huge fat mortgage you’ll’t pay off. All this is great until you or your partner lose their job, or family crisis happens, and the repayments can’t be met (everyone thinks it won’t happen to them, but trust me it happens). The bank that was therefore nice to give you that great looking mortgage isn’t hence nice all of a sudden as you’ll’t meet your rebates. They eventually foreclose on the house and your dream home is gone.

 

We were thrilled to know that many people found this article about leads mortgage and other mortgage loan calculator, rapid city real estate, current mortgage rates, and even realty inc real estate and mortgage loans helpful and information rich.

 

If you want aid finding the best mortgage  or remortgage deal for you, take a current time and fill out this simple questionnaire. Once you have do therefore, a SimplyFinance representative will contact you to introduce you to a mortgage broker that can also search to find the best mortgage deal for you.

 

 

So here is chance to get your free tips on leads mortgage and in addition to that get basic information on saving money visit refinance home mortgage

Realty — No Comments
6
Oct 10

How To Close A Short Sale

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Closing a short sale is not an unproblematic undertaking. Mindset is the most important thing when trying to close a short sale. We see all of the designations that other agents have. Yet, some of these realtors have never completed a short sale. They call themselves an expert in short sales and other real estate specialties but they have no useful experience. Receiving a designation is a excellent start, but actually completing short sales is so important.

Short sales are the largest grey area of the real estate business. The lenders want you to think that it is all black and white. When you listen to something from the lender, you could phone back tomorrow and you might get an answer that is totally contradictory. Try calling the lender ten times and see how many times you get the identical reply.

As a matter of fact, sometimes we don’t even get the bank to answer the telephone. It appears that the power goes out at lenders on a regular basis. There have been so many times that we have come to a spot that has never happened before. But we merely say that it doesn’t matter. Our frame of mind is to close the short sale regardless of the situations. The bank has guidelines and policy, but if you can show the lender that they are saving money with a short sale over foreclosure you can complete a short sale.

It is astounding that the bank does not notify their employees that this process is basically about savings over foreclosure. do not believe all that you see and hear. don’t allow your property to go to foreclosure. Do something about this state of affairs. Even if you are not in the Minnesota region, contact us. We can help you find the right real estate agent. We can also help you verify if your property is a good candidate for a short sale.

Realty — No Comments
6
Oct 10

Short Sale vs Foreclosure

Know Your Options – Short Sale vs Foreclosure

If you’re behind on house payments you may be facing the dilemma of doing a short sale vs foreclosure.  Losing your property to foreclosure on account of an inability to keep up with your monthly home loan payments is one of life’s most unpleasant experiences. It’s also an event that keeps on impacting you long after your residence is history by damaging your credit scores. The sad thing is, almost all people cannot be completely positive that they will stay safe from foreclosure since they can’t predict the unexpected. Incidences for instance serious illness, a major injury, divorce or job loss can happen to any person. Therefore it’s an excellent idea to know the available possibilities should the worst happen.  Below we will discuss the advantages and disadvantages of a short sale vs foreclosure.

Short Sale vs Foreclosure | Short Sale Benefits

You avoid foreclosure – many people agree that a foreclosure is the worst possible thing for your credit.

You may be able to qualify to by a home in as little as 2 to 3 years

You do not have to make any mortgage payments, unless you choose to make them.

You may meet the new homebuyers, and feel good knowing who will be purchasing your house.

Short Sale vs Foreclosure | Short Sale Disadvantages

Short sales can take many months and can be a very frustrating process.

The bank will be looking at lots of your personal information.

Typically your home will be listed with a REALTOR while the short sale taking place, which means it will have to be in show condition and you will likely have people walking through the home at various times.

Your credit will likely be affected and the derogatory marks can stay there for up to 7 years.

Short Sale vs Foreclosure | Foreclosure Benefits

You don’t have to make any mortgage payments.

You get to stay in the home until the foreclosure auction takes place.

You won’t have any buyers walking through your home.

Short Sale vs Foreclosure | Foreclosure Disadvantages

It can be embarrassing to be foreclosed on and the bank will likely post a Notice of Public Sale on the front door.

Your credit will take a huge hit.  Foreclosure is one of, if not the worst things for your credit.

According to Fannie Mae guidelines, you will likely not be eligible to buy another home for at least 7 years.

If you are facing a financial dilemma  and are evaluating a short sale vs foreclosure on your home make sure that you know all the facts and speak with a real estate professional about your situation.  There can be many other options that you have in addition to short sales or foreclosures, but only by speaking with a professional that has done a tremendous amount of foreclosure and pre-foreclosure real estate will those options be determined.

Phill Grove has conducted approximately 0M in real estate transactions – using non-traditional investing methods such as mortgage assignment, short sales, equity partnering, auction-options, wraps, swaps, and other methods – many of which he invented and/or pioneered for the industry. Phill has invented a new strategy called the Mortgage Assignment Profits System. Phill Grove has personally trained and coached hundreds of Real Estate Investors on the “12 Ways to Buy and Sell Real Estate”, as well as marketing and lead processing strategies that actually work. Find out more about Phill at http://www.REIMaverick.com