July, 2011


31
Jul 11

House Foreclosure Dilemma

According to Real Trac, 1 in every forty houses in Phoenix, AZ,  have had a foreclosure notice filed against it. The city has been devastated by the slide in housing prices, the mortgage crisis, and unemployment. As of May 2010, the unemployment rate in Phoenix AZ was about 9%. Increased expenses and decreased income means a lot of people are not meeting their mortgage and are facing foreclosure. However high foreclosure rates mean decreasing property values.  What do you do if you cannot pay your mortgage, are behind on payments, cannot make repairs to the house, and owe more than the house is worth?

The solution is to work with an organization of real estate professional with a lot of experience who can offer you alternatives to foreclosure and bankruptcies.  Foreclosures will negatively impact your credit for 10 years and may lead to costly deficiency judgments and have negative tax consequences.  An experienced team of real estate professionals can help you by negotiating with the bank, shorting the note, buying the property in as-is condition, and allowing you to move on with your life.

Why is it better to work with a real estate professional than a real estate agent?  Look at it from the banks’ perspective.  In order to consider shorting a note, the bank must perform a timely and costly assessment of the property, an assessment of the seller’s financial situation, negotiate with the holders of the note, estimate repairs, and deal with attorneys.  If they work with a real estate agent and invest all this time and money for a discount of the note, then they have to hope that a real estate agent can find an end buyer.  However, if they work with real estate professionals who are the end buyer, then they know that this time and effort will amount to a transaction.  Which group do you think the banks want to negotiate with?  Given all the advantages, banks prefer working with real estate professional than agents.  If you are behind on payments and owe more than the house is worth, shouldn’t you work with a real estate professional too?

Curt Maly is CEO of Endurable Investments LLC and Endurable Property Solutions. Located in Phoenix AZ and Austin TX. Find out more about how Endurable Property Solutions may be able to assist you when you are selling your property no matter what your unique situation is in Phoenix or Austin. Visit our website at http://www.phoenixshortsalesolutions.com/ We have local Real Estate experts and local Realtors that can assist you with any aspect in selling your property!


30
Jul 11

Loan Modification Programs — The Best Way to Stop Foreclosure

Loan Modification Program – The Best Antidote for Home Foreclosure
The world economic crisis has sent a lot of households into financial turmoil and more families are struggling to keep their homes and battle their way out from foreclosure. Fortunately, there is still a way to avoid foreclosure by taking advantage of the home loan modification program. A loan modification simply means that your mortgage payment will be restructured to a more affordable payment plan. This will give you a chance to get your payments current and avoid any risk of foreclosure or filing of bankruptcy.
The home loan modification is designed by President Obama to assist distressed homeowners to modify their mortgage loan modification agreement into a more affordable plan through reduced interest rates and a lower monthly payment plan. The loan modification program will help alleviate the high frequency of mortgage delinquency levels and encourage lenders to provide more efficient loss mitigation programs to defaulters and prevent the process of foreclosure. The main objective is to help out 3 to 4 million residents to keep their home and live a less stressful life.
The Home Affordable Modification Program (HAMP) has so far reached out to 3.137 million loan defaulters since November 2009. As of to date, 73% of the total number of trial HAMP applicants were able to avail of the loan modification program. The administration requires the loan servicers to reduce the monthly payments to no more than 38% of the borrowers’ gross monthly income. The Government would then shell out to lower the payments further to no more than 31%. The administration will also give out 00 cash incentive to servicers for every successful loan modification and an additional 00 payout for each year for 3 years as long as the borrower continues making the payment. This incentive program is designed to encourage more participation from loan servicers that will eventually increase the number of loan modification applicants.
The loan modification program is an excellent solution for homeowners who are honestly undergoing financial hardships and are making a great effort to pay the loan. A proof of financial hardship is also one of the requirements to receive any loan modification help. There are other factors that will be considered by the lenders before a mortgage modification is granted. It is therefore important to get a loan modification guide to ensure that you would be eligible for the program.
Indeed the Home affordable Modification Program (HAMP) of President Obama’s administration is both a blessing and a boon to struggling homeowners. Americans now have an alternative solution to saving their homes and avoid the risk of foreclosure or filing for bankruptcy. To date, the loan modification program is by far the best antidote for home foreclosure.


28
Jul 11

Becoming a Gamestop Sales Representative

Video games and selling, the combination is perfect for me. Some people love video games, but I believe video games were made especially for me. I was born December 11, 1986; only ten short months after the release of Nintendo’s Entertainment System- the NES. I can honestly remember my mother forcing my brother to teach me how to play Mario Brothers when I was only a few years old because my brother was “hogging” the system. From there it never really stopped, it only got better. I have never allowed video games to dictate my life, and so I have only had good experiences: the NES, the SNES, the N64, the GameCube, and now the Wii. My brother is twenty five years old and works for Boeing on the space shuttle. He also owns a Nintendo Wii with several games such as Super Mario Galaxy, Super Smash Brothers, and Mario Strikers. My brother and I will still play Xbox and play station products, but our allegiance remains with the Nintendo family. So when it was time to work on a shadowing assignment, it was not difficult for me to call my friend Bryan Martin and follow him around the GameStop store for a few hours.

After completing the work shift, I realized that GameStop can be explained in three words: customers, selling, and inventory. I will first talk about customers. How can I relate with someone who has taste in shooting games if I only enjoy sports games? Game Informer is a magazine that contains reviews and ratings for different games and peripherals, GameStop stores should be utilized to see what gamers have said, and online sites such as gamespot.com and ign.com offer unbiased video game information. With networking, technology, and an established customer base, any question can be answered quickly and efficiently. So let’s begin. Greeting potential customers is the first thing one should try. Say something like, just to let you know my name is Daniel Montz if you need help with anything. Working behind the register is important, but the salesperson must first get the customer to the register to buy. Bryan Martin says, “A key to my success is making customers laugh. If I can establish a small friendship with them, my chances of selling grow tremendously.” Simply talking about games with co-workers and buyers can spark an initial investment, which can grow into a commitment to buy. If you are selling to an individual, make sure to offer an incentive. GameStop is unique from Best Buy and Circuit City because customers can buy used games and reserve popular gaming titles. GameStop offers the reservation of a game for only five dollars, which means a down payment of five dollars today is put towards your game in exchange for a guaranteed copy of the game on the release date. I can offer that incentive to anyone who walks in the door and by doing so I differentiate GameStop from places such as Best Buy and Circuit City.

I quickly learned that talking to parents and kids is completely different when in GameStop. Parents want to know about the gore, violence, language, and sexual content. Basically, parents want you as the salesperson to be as open and honest as possible. The rating systems for games should be used to your advantage to make a parent feel comfortable buying a title. The E (Everyone) is equivalent to PG (Parent’s Guidance), the T (Teen) is equivalent to PG-13 (Parent’s Guidance under 13 years old), and the M (Mature) is equivalent to R (Parent’s Guidance under 17 years old). Parents will tend to be on the fence more about buying games, so personal selling is crucial. Make the parent laugh, be friendly, and really go over the pros and cons of the game or system. “Ask customers in unique ways, rather than directly asking if a customer wants a magazine. Sales pitches should be lively rather than robotastical,” says Bryan Martin. Speaking with kids is a different story. Establish rapport with kids because a regular conversation will lead to a sale. Often times, not even speaking about a product for the first couple minutes actually reels the customer in. Then, establish a common ground with the gamer to find what appeals to him/her. Try to make the buyer feel good about a purchase by talking about playing games in groups of friends, how great a game’s repeat playability is, and how the game is similar to other games. For example, consider a gamer that wants to buy Super Smash Brothers Brawl on Wii and has only played Super Smash Bros Melee on GameCube. A sales representative should talk about the access to new characters and stages but should also mention the fight simulation in Brawl feels more “floaty” than in Melee due to the larger levels and game play of the characters. The majority of the time, a buyer will be more pleased with the honesty than the game defect, and as long as the game has received good reviews the chances of buying are high. The sales associates to consumer ratio are high in GameStop which means there is more opportunity to relate directly with individuals.

Every GameStop store has computer systems that are used to their advantage. If a buyer reserves a game, the computer knows the release date of the game as well as the name, address, and phone number of the reserver. For popular games such as Halo 3, calls are made out to reservers several days in advance. “This practice creates new value through midnight releases with cookouts, beverages, and tournaments. If we can create an environment for consumers to stay, the chances of buying are inflated with the increased time spent in the store,” says GameStop management. Midnight releases allow gamers to receive new releases 8 hours before most people, and often prizes are given away after tournaments. So what happens to people who reserve a game for five dollars but never pick up the game? If an individual reserves a game for five dollars and never walks in the store again, the five dollars is lost. If the individual comes back and does not want the game he/she reserved, the five dollar down payment acts as a store credit for future purchases. The computer network also tracks inventory, so if one GameStop store does not carry a game you want, calls can be made to other GameStop stores in Lubbock to find a copy.

Now it’s time to talk about selling. I always found up-selling as a waiter at Pappas Seafood House so easy. I would start by offering a non-alcoholic drink such as tea and an alcoholic drink such as beer or wine. Even if I only get one guest to bite on the tea, the bill inflates by over two dollars. Furthermore, most people who enjoy steaks, lobster tails, and mahi-mahi also appreciate a fine glass of wine to top off the experience. But how on earth can I up-sell video games? I was surprised to find the recipe was the same but the ingredients were different. If someone buys a system with four controller outputs, make sure to showcase the controller section of the store. Even if a newcomer is skeptical and wants to enjoy the system alone at first, buying more controllers comes with time. Many Microsoft and Nintendo brand peripherals can be expensive which is why brands such as Logitech, Pelican, and GameStop offer peripherals at a discounted price. I have always liked peripherals to be the same brand as the system but people are different. For example, most people love IPods but few swear by the headphones produced by Apple. It should be easy to see where people stand on the issue, and price can be a major factor for this category. The idea is to start high, and work your way down. So in our particular situation the following order should be followed: sell name-brand controllers, sell controllers with other brands, sell used name-brand controllers, and finally sell used controllers with other brand names.

The internet plays a crucial role in selling at GameStop. Their website is http://www.gamestop.com. You can order anything off the website, and your purchase will be shipped to your address. Gamers cannot reserve titles online; however gift cards and used merchandise redemption values are available online. To further assist customers, gaming websites are made available to GameStop employees within the store, although other websites are not. A customer may rely on a website such as http://www.ign.com, and by viewing his/her trusted source right away the potential to buy turns into a commitment to buy. Other ways to publicize merchandise include television ads and public trade shows. The most common public trade show is named E3, and the main purpose of the expo is to give the latest news and media from inside gaming and upcoming technology. GameStop makes sure to be a part of the new trailers, game debuts, featured content, raves, reviews, and critics of new developments. Also, every year GameStop pays an all-inclusive trip to Las Vegas for sales training and positioning. “The trip to Las Vegas gives upper-management the qualifications for using their skill sets within the local level. Our goal is to have knowledge from our managers’ trickle down to all employees of the store,” says GameStop management. As a temporary employee at the store, I noticed the responsibilities of management and salespeople are very similar. As a GameStop manager, you are still constantly selling. If you have taken the management position to get away from selling, you are simply in the wrong industry.

Point-of-sale or POS scenarios are extremely important to selling at GameStop. Point-of-sale is where game reservations, discount cards, magazine subscriptions, and warranties through GameStop are sold. Discount cards are sold for 15 dollars each, and provide a 10% discount on all used products. Often times if a person comes in to buy a significant amount of used merchandise, the card will pay for itself in the first transaction. The best idea is to ask your customer if he/she buys used games, and if the answer is yes make sure to try and sell the discount card. For most people who buy used merchandise, the card will pay for itself in two or three visits. Another option is to offer the idea of buying a magazine subscription through Game Informer. Game Informer is sent directly to your home and provides reviews and opinions on games that will soon come out. Personal selling will often depend on your style such as whether you are assertive or passive, aggressive or timid, and analytical or intuitive. My aggressive, assertive friend said to, “Tell the customer what they want, even if they are unsure if they want it. Say something like which one of these games can we reserve for you today.” However, I explained this approach to my shy friend and he hated the sales pitch. The most important factor is to read your customers well and figure out the best way to approach them. Warranties are unique and vary in price from 20-100 dollars depending on the system. Most systems include manufacturer warranties already but a GameStop warranty allows you to bring the system in to the store and have it immediately switched out. The warranty is normally set for an amount of time such as two years, and all new and used purchases at GameStop already include a 30 day warranty. As a video game purchaser, I can honestly say video game reservations are the best deal. Next in line are discount cards, which work great for used-game buyers, and magazine subscriptions, which sell to parents and critics very well. I would have difficulty selling GameStop warranties because I have heard pleasant experiences with manufacturer warranties.

Knowledge of inventory is crucial. Often times when people walk into movie rental stores such as Blockbuster and Hastings, customers ask employees if he/she has seen a movie and how they would rate the movie. Blockbuster offers its employees an incentive program that allows them to rent a certain number of movies per week and see movies before their release date. Similarly, GameStop lets their employees rent a certain number of games per week, although playing games before the release date is not available. So what is the goal of corporate and management by offering these incentive programs? You must know your inventory. Even if an employee is certain they will not like a newly released game, he/she may rent the game anyway to provide more insight and details to its playability. Although Halo 3 may not appeal to you personally, you must realize that the popularity of the game title may be crucial for meeting your monthly quotas. The idea is similar to restaurants who offer instant discounts off entrée items for employees. Chili’s, for example, will give employees a 50% discount off all menu items at any time of the day. It seems like Chili’s would lose money eventually, however employee’s increased knowledge of food items allows them to sell to guests who walk in. In fact, many employees watch their food being cooked while on break which gives them an even bigger edge. Let’s examine two contrasting examples, one who has tasted the entrée being sold and another who has not. The one who has not tasted the entrée will say my friends have enjoyed the dish, the entrée is a popular menu item, or our guest’s remarks have been positive after finishing the dish. The one who has tried the dish will be able to describe unique features of the entrée. Such as, our seafood platter is a 10-12 ounce steak cut of our salmon topped off with mushrooms, shrimp, and crab meat sautéed in a lemon-butter sauce with your choice of our world famous jambalaya rice or vegetable of the day. The principles work the same with GameStop, because employees who have played the games being sold will be able to provide customers with more details which increase the likelihood of a sale.

In conclusion, GameStop requires 3 crucial factors: customers, selling, and inventory. Without one of these factors, the rest would not exist. Customers walk into the store, employees sell and promote the items, and customers leave with GameStop inventory. GameStop is a great example of establishing a niche market. Some people may buy games and accessories from other stores but many people find it necessary to buy their gaming equipment from GameStop. Even as a gaming enthusiast my knowledge of Nintendo was tested. The big three in our decade includes Nintendo, Sony, and Microsoft but who knows what the future holds. Perhaps ten different game systems and brands will exist in the future requiring an expert on each gaming device. Although we do not know what the future holds, two things are clear: gaming and selling will be around for a long time.

Works Cited

Martin, Bryan. Research, work, and interviews conducted by Daniel Montz. Lubbock, Texas. 5th

of October 2008.


27
Jul 11

Stop Foreclosure: The Process

Today it happened; you received a letter in the mail from your mortgage lender.  You are now two months behind on your mortgage payments and they’ve started the process of foreclosure.  What’s happening? What can you do to stop it from happening anyway?  Foreclosure is the process by which a lender legally begins the process of repossessing the home or other property that you own that you haven’t made payments on.  If you do get this type of letter, it shouldn’t be any type of surprise that it is coming.  For some reason, good or bad, your fault or not your fault, you are behind on your mortgage loan.

What should you do first and foremost?  If you can do anything to pay back the debt that you owe to your lender, that’s the smartest decision.  Some individuals borrow from other sources to pay back the lender, but this isn’t always a good decision for one reason:  if you can’t make your payments now, you probably won’t be able to pay it back later, either.  Therefore, you haven’t accomplished anything by borrowing these funds. 

If you have money in savings or can sell off any type of valuable item that you have to pay back the funds that you are behind on with your mortgage loan, this could be the best decision.  Only you can determine what’s more valuable to you, of course.  But, to stop foreclosure from going forward, you will need to consider the options that you have, including paying back the funds that you do owe to the lender.

When you want to stop foreclosure quickly, find a way to pay back what you owe to the lender, which needs to include not only the amount that you are behind but any late fees as well.  If you can’t do this to stop foreclosure, consider one of the many other routes you can take to stopping foreclosure from happening to you.


25
Jul 11

Stress Free Home Loan Modification Program

Whether or not you should be able to freely modify your home loan has been a topic of heated debate in Washington  D.C. Just months ago, Home Loan Modification Programs were perceived by lenders a lot differently. Taking into account the shaky legislative ground surrounding the support of modifying home loans, many owners were stepping into unknown territory. Most homeowners ventured into their Home Loan Modification without a clue of their timeline, or whether approval was even possible.mortgage modification

Depending upon who your lender was, Home Loan Modifications could be very shady to say the least…

The programs of the past had no structure for time, and ultimately perpetuated those at risk of feeling indecisive and uncertain about walking the path less taken. In other words, all the power was in the hands of the lenders.

In the recent past, lenders like Bank of America, Wells Fargo and Citi used to reject Home Loan Modifications as a matter of fact. The tides have changed; now you have the power… Bank of America and other lenders are now REQUIRED to approve Home Loan Modifications for homeowners who own property worth 9,750 or less; as long as your paperwork is filled out correctly and you can prove hardship.

This is the time to take advantage of new laws set in place by the White House that enable you to see results fast. And with Able Financial Solutions, we make it even faster and more convenient for you than ever.

STOP PROCRASTINATING!

With our signature 10-2-30 formula, you can see results in your pocketbook in as short as a month. Here’s how it breaks down:

    * Able Financial Solutions has created a 10 minute interview process that will help determine if a loan modification is correct for you.We’ll assess whether your loan will qualify for the Federal Making Homes Affordable program, or if perhaps some other solution would be more suitable.

    * Once we have all of your information and conclude you are eligible for a modification, one of our senior analysts will present your case to our team within 2 days of your initial consultation. During this meeting, our team will decide if your loan is exempt from any extenuating circumstances preventing it from being completed in the now standard 30 day timeline.mortgage modification

    * If we believe moving forward with Home Loan Modification is the most appropriate decision to make, we will begin to teach you how to draft your Hardship Affidavit/Letter. We’ll also help get together all the necessary paperwork your specific lender requires from you for your Home Loan Modification. Once everything is ready to go, we will submit your Home Loan Modification application to your lender and begin the negotiation process. Again, most of our clients see their Home Loan Modifications completed inside of 30 days (in accordance with HAMP – Home Affordable Modification Program.)

Why Use Able Financial Solutions for Your Home Loan Modification?

Able Financial Solutions is absolutely meticulous about getting your Home Loan Modification done correctly. One simple mistake can make the difference between being approved and not, even if you qualify under the Home Affordable Modification Program. Mistakes can also determine if your modification doesn’t lower your interest rate, monthly payment, or even principle amount owed as much as it can should Able Financial Solutions represent your best interests.

Able Financial Solutions is here to guarantee you get the treatment and results you deserve! Able Financial Solutions ensures WE meet the specific requirements of your lender and perform the Home Loan Modification as seamlessly as we can.

Able Financial Solutions Makes Sure You Get The Results You Deserve!

Able Financial Solutions is at the forefront in helping people become more aware about how Home Loan Modifications have changed in the recent past; as evident in this article.

When you pick up the phone and talk to one of our analysts, you will have an almost immediate understanding about your options and how to move forward. We’re not here to sell you on getting a Home Loan Modification. Able Financial Solutions is about clearing away all the noise in your head that’s keeping you from taking deliberate action!home loan modification

If you do qualify for a Home Loan Modification, Able Financial Solutions guarantees you receive the results you unconditionally deserve, or we receive no financial compensation from you at all.


25
Jul 11

Comparison Between Mortgage And Home Loan

Many people used to call a home loan as a Mortgage. So let us see make a Comparison between mortgage and home loan

Loan is the money which is lended by an individual, financial firm or the Bank to another individual or the small firm for a specific period and is due to be repaid with interest after a specific period. Home Loan is also a type of loan which is given to an individual who has to repay this amount with interest in a specific period. Most of the home loans are lended to an individual in the lieu of the guarantor, that individual provides to the bank. According to the international rules of banking the guarantor must be a person who is associated in some or the other way with the bank. Some banks even give the loan to a person based on the person’s (financial) reputation or the credit in the market.

On other hand Mortgage is the security deposit which is taken from the borrower and which has the same face value as the loan which is paid to the borrower by the bank. Thus Mortgage is a type of legal document or a type of legal contract which protects the lender’s interests in the borrower’s property. For example tangible assets like the house or the car or the ornaments that posses the equivalent face-value as the amount of the loan are mortgaged. So even if the borrower fails to repay the loan after a specific period the lender could recover the loan amount selling the tangible assets of the borrower.

Thus we have seen the comparison between mortgage and home loan.

Now let us discuss about the types of Mortgage Companies which give loan to an individual as well as other firms.

Types of Mortgage Companies:

There are two types of Mortgage Companies mainly the Best Mortgage Companies and the Bad Credit Mortgage Companies.

Best Mortgage Companies like Wells Fargo and Wachovia Mortgage companies are based in USA.

Bad Credit Mortgage Companies like Synovus Financial and Golden West Financial Corporation which are also situated in the USA.
Best Mortgage Companies are those Mortgage Companies which provide various types of loans and mortgages in the best possible way.
Bad Credit Mortgage Companies are those companies which give a loan to the borrower with a bad credit score (given by the credit system) against assets of the same value at high rate of interest.

We know that the rate of interest is charged on every loan amount. Loan Calculator is used to calculate this interest.

Home Loan can be a small transaction which can consist of a less amount of money while Mortgage is an always a large transaction in which transaction amount is very high. This is the main point of comparison between mortgage and home loan.

Home Loan is a transaction in which a friend or a relative gives money to another friend or relative with or without interest. This is not the case of Mortgage. This isan importantcomparison between mortgage and home loan.

Thus it is better to consult the loan consultant and take an advice from him as to which firms offer loans at the reasonable rate of interest and extended period.

Look before you leap .Think twice and act wise before applying for a home loan by mortgaging your belongings. Search for other avenues and options after making comparison between mortgage and home loan.


24
Jul 11

Hard Money Loans Enable You to Understand Post Foreclosure Process

You have made the biggest and better turn in your career when you decided to get into real estate interment practically. The next thing comes with the different kinds of activates in this domain. Here I feel it is important to tell you the benefits of buying foreclosure properties and I want to talk about post foreclosure process so this is once the properties actually get foreclosed on. Hard Money Loans would easily enable you to understand the foreclosure with details, and when it actually happens. The bank can give a bid and if the bank gives a bid it is called the credit bid and that is credit against the amount of money that is owed to them.

Normally the most happening thing is at the time when banks actually bid what is owed when it comes to foreclosure sale.  That is not always the case and nothing is hard and fast but most of them do, which basically means the properties are going to go back to the bank, and we are seeing that probably more than 97-98% of the time that property is actually going back to the bank.  Here comes your chance to get hard money loans and invest in an opportunity for you to actually contacting the bank or the Asset Manager, and in case the present owner of that property after foreclosure activity.

Keeping the whole scenario in your mind you get in touch with that Asset Manager and see if you can purchase the property before they put it over the market. It is easy for you to do such offer with the aid of hard money loans by some reliable hard money lender.  When you do that you want to give them comparables and show what property is really worth and see what you can put together for them to actually make that happen. If that doesn’t work out the next thing you want to do is watch the property to get listed with an agent.  You know that may take some time.  You are going to watch it to get listed with an agent. 

It is quite possible that you may get their first offer over to them, and even you can get the offer if you can get in touch with the bank.  Sometimes it is difficult to get in touch with the actual decision maker on those types of things.  If that doesn’t work out keep your eyes on the property, and ask for the hard money loans from your partner private money lenders.  You make that initial offer and you have no guarantee of their acceptance. It usually happens with the post foreclosure is that you want to look at new stuff and you want to look at the old stuff.  So a property that has been on the market just for a short period of time and the other having been in market for a long period of time those are your two opportunities because people are just on.


23
Jul 11

Salient Features of The Home Affordable Foreclosure Alternatives Program (Hafa)

The latest reports on the mortgage front appear to be very disheartening. With as many as 25% Americans living underwater on their mortgages, it has virtually made the federal Government to sit up and assess the emerging situation. Furthermore, it has prompted the State treasury to ink new amendments to the currently operational Home Affordable Modification Program (HAMP). The guidelines of the novel program have in-built mechanisms to provide incentives to lenders for allowing some underwater homeowners to help them to short sale their homes for less than they owe on their current mortgages and freeing them off the hook for the balance loan amounts. It is this salient feature that distinguishes it from the Obama home loan modification plan aimed at making homes more affordable.

Another alternative under the scheme permits the distressed homeowner to deed their property back to the lender that is popularly called the deed-in-lieu of the foreclosure. These are the tenets of the proposed Home Affordability Foreclosure Alternatives Program (HAFA). However, to qualify for the plan, struggling homeowners need to satisfy certain eligibility criteria. These invariably include borrowers who either could not get approved for the already existing Obama Loan Modification Program or the HAMP, secured a trial loan modification refinance but not a permanent one under HAMP or borrowers who have consecutively defaulted twice on their loan modifications. Thus, the HAFA intends to regulate the ongoing foreclosure crisis by providing workable options to struggling homeowners for whom loan modification programs have not been conducive.

Very recently the treasury department issued fresh guidelines for a Home Affordable Foreclosure Alternatives Program (HAFA). This invariably supplements President Obama’s Loan Modification Plan. It is quite interesting to see how the program works. The HAFA offers a composite agenda with a lot of guiding principles and forms that have been structured to reorganize and make things easier for struggling homeowners with regards to short sale and modifications, deed-in-lieu of foreclosure (DIL). Conversely, the HAFA accords a viable option to the existing distressed homeowners who already qualify for the Obama Loan Modification Program but are still not in a position to salvage their homes. It classically, utilizes the previous information of financial hardships that is already garnered when considered for a loan modification earlier. The HAFA goes a step further in facilitating pre-approvals for terms that relate to short sales prior to listing of the property. These invariably include the minimum adequate net proceeds. Guidelines additionally forbid loan providers to desist from reducing real estate commission complied upon in the listing agreement, with a ceiling of up to 6%. Besides, the conditions of the Home Affordable Foreclosure Alternatives Program (HAFA) also stipulate that borrowers be fully discharged from the any obligations of the first mortgage debt. The HAFA, additionally, provides for setting up innovative standard procedures, documents and deadlines and even offers financial rewards to all the parties involved. That includes 00 to distressed homeowners towards relocation assistance, 00 to servicers for covering up administrative and processing costs and up to 00 for investors who facilitate unto 00 towards short sale proceeds which is to be distributed sub-ordinate lien holders in a ratio of 1:3.

Hence, the proposed Home Affordable Foreclosure Alternatives Program (HAFA) which is very much a part of the Making Home Affordable Program lays down terms and conditions for regulating short sale and deed-in-lieu of foreclosure. As per the rules of the HAFA, a distressed homeowner could get rid of his property at a price that is considerably less than the loan amount due on the mortgage. Over and above, the value of the home permitted to be sold is pre-determined through a process of appraisal conducted by an independent real estate agent. Thus, the homeowner is not the deciding authority for the minimum price. Contrary to this, in a deed-in-lieu of foreclosure, the house owner is required to surrender his property along with its title back to the loan provider. Consequently, in a short sale the lenders do not have to go through the process of a foreclosure on a property that has total unpaid dues in the range of ,000 to ,000. Besides, the credit of a borrower is not affected much in a short sale as much as it is in a foreclosure.

Author Resource: The government has announced the home affordable foreclosure alternatives program (HAFA), which provides financial incentives help to persons who are facing foreclosure. For more visit Refinanceitt.com and apply for program.


23
Jul 11

Stop Foreclosure: Learn Simple Secrets to Avoid Bank Foreclosure

A house foreclosure is an unfortunate event. Did you know that you can stop foreclosure in progress before a foreclosure sale and also prevent the foreclosure from happening in the first place?

Life can happen to anyone at ANY given time. At first it seems like a bad nightmare, where something catastrophic has happened causing you to miss a mortgage payment. Soon you receive a notice of default and your payments have gotten so far behind that you find it hard to see a way out.

Losing a home is a terrible experience to go through and can cause great damage to your “financial health”. However, if you are at risk of a foreclosure or currently going through a pending foreclosure, ALL HOPE IS NOT LOST! The time to act is NOW, before your property goes to foreclosure auction.

To Avoid Foreclosure, What Can You Do?

1. Communicate!: Communication is very important when going through a. So many people lose their home to foreclosure because they simply ignore the default notices, never contacting their lender, and letting time go by until they have no other options. Contact your bank or lender. Let them know what your situation is. Although, it may seem like a daunting task, lenders do not want to foreclose on you anymore than you want to be foreclosed on by them.

2. Mortgage Modification or Hardship Refinance!: It may take a lot of paperwork and long waiting periods but it may always be worth your while to give it a chance. After all, it is an opportunity to avoid foreclosure and possibly keep your home!

3. Sell Fast and Sell Quick!: This is often a more favorable way to avoid foreclosure especially if your finances are totally in trouble. Unpredictable events happen daily in the lives of many causing a deep strain on their pocket books. Many times it is uncontrollable and often unexpected. So ask yourself: “Why Not Sell My House Quick?”

If you are indefinitely headed toward financial disaster, selling your home may be a more favorable than losing more than you have to. Going this route will allow you to save your credit, avoid foreclosure and possibly avoid bankruptcy. You will be able to get on with your life and avoid having a bank foreclosure haunt you for years.

Remember, Time is of the Essence! Take Action Now!


22
Jul 11

Getting Work Quickly For Foreclosure Cleaning Jobs

If you read the news or go online you will see articles written about how millions of home owners are in the foreclosure process or are delinquent. The rise of modifications on mortgage loans prove that this is not a trend but a reality and a option for those looking to offer a viable business strategy.

Cleaning foreclosed properties is a evergreen business model that is very profitable typically because real estate will always be bought and sold. Homes will need to be cleaned, repaired and maintained. Your foreclosure clean up company can provide the assistance that many of these homen developers, real estate and REO investors will need to get homes ready for resale.

The key is to know who to contact to get enough business to live off of. You can start by contacting realtors because they have more listings than they know what to do with. 

Foreclosure Clean Up Business How to Market for Leads

Marketing is necessary for all types of small businesses, to succeed one needs to know how to find contacts. Ask yourself who would need your services. Think about all the different types of properties that are in need of preservation.  Network with all type of professions that are part of the big picture such as:

General Contractors,Painters,Plumbers,Home Inspectors,Appraisers,and Electricians, all of these professions do work for homeowners and landlords who are most likely needing to buy, sell or rent out a single family, home, apartment, commercial building or vacation home.

To get leads will require that you get on the phone, send out inquiries, through snail main as well as email, don’t forget to get involved with your chamber of commerce and local community real estate investment groups. You will have to bid for work, and once you have all your licenses and insurance,next you wlil want to deal with the bigger national property preservation companies that do national jobs because they will need to hire sub-contractors to take care of local foreclosures and REO’s.