I have been seeing this issue for a while and now some very important information is coming to light that I thought you may want to know.
Ever since the Loan Modification scams were uncovered in the last year or two crooks have been busy trying to find yet another way to defraud homeowners who are having trouble with paying their mortgage. They know that people are desperate to hang on to their homes are easy prey and will grasp at anything that even sounds plausible to save their most precious investment.
The new scam is 'Suing the Bank For Title". It capitalizes on the news we have been hearing lately of the paperwork issues with banks foreclosing on homeowners without doing the necessary paperwork first. An attorney (or maybe not) may be calling or sending very official looking information that they are going to go after the evil bank for making some clerical errors in your mortgage that will allow them to sue for clear title to your home. That means not just getting a modification or reduction in your mortgage, but owning your home outright with no more payments!
Sounds great doesn't it?
The only problem is that they need thousands, if not tens of thousands, of dollars up front to get the lawsuit going. They will tell you that they have a 100% track record of success (or something close) because the bank would rather just give up your home and lose a few hundred thousand dollars rather than fight a lawsuit that may cost them millions to defend. Makes sense again, right? It would if it were true. Banks don't just give a way home because of legal threats! If they did everyone would be filing lawsuits and owning their homes for free.The old adage still applies - "If it sounds too good to be true - it probably isn't!"
These companies are raking in millions and not getting people their homes for free. As a matter of fact, they are getting some of their "Clients" foreclosed because they tell them to stop paying their mortgage while the lawsuit is in progress. NOT SMART! Another scam is that the firm will tell homeowners that they will retain a partial ownership in the home as their fee only to ask for thousands for "Court Costs" after the homeowner signs the retainer.
Look, I'm not saying every attorney in this is a crook. Some legitimate lawsuits are in progress and may work out to the benefit of the homeowner ultimately. I'm just saying you need to do your homework if you are going to entertain this path. Lawsuits take years, not weeks or months, and, as with any lawsuit, YOU CAN LOSE! If you signed your loan voluntarily and it contains information about the term, interest rate and any possible adjustments, you probably cannot just walk away because it is hard to pay. Nobody can guarantee success in a civil lawsuit before it begins!
You may be better off trying to get a modification yourself (it's free that way). It's hit or miss but at least it won't cost you anything but your time. I can help with information on how to negotiate it if you want to give it a try. If that doesn't work and you can't maintain the payments you may want to just get out from under it and short sale. That usually costs you nothing and can save your credit from a foreclosure bomb. If you have any questions, I'm here to answer them with no obligations. Give me a call before you make a serious mistake you may regret for years to come.
I can be reached at (888) 835-4663 or email me at cliff@cliffhildreth.com
Be careful out there. Have a great day.
Check out my website for great home info: http://www.cliffhildreth.com
Tuesday, March 29, 2011
Why Should I Pay Double For My Home?
Santa Clarita Valley CA – The Stop Foreclosure Institute recently received a question from Luis. Here is Luis's Question.
"I am working on a loan modification on my home. I just don’t want to be upside down and want a fair interest rate. Why should I pay on a mortgage that is twice as much as my home is worth, plus the interest on that mortgage? It just doesn’t make sense.
How can I get a loan mod with a fair interest rate where I am repaying what my home is worth today? Thank for your help, Luis.”
Here was our answer. You are asking for something that most lenders don’t like to do. Lenders don’t like principal reductions. Here is why.
Principal reductions usually have to be written down right away on their financial books. If you owe them $300,000 and they reduce your loan principal to $150,000, then they immediately have to reduce the company’s earnings by $150,000 for the year.
If they do that on enough loans, then it hurts the CEO’s ability to get a bonus. He may even risk losing his job. I don’t offer much sympathy to CEOs, but that’s how it works.
Here is what lenders like to do instead. They will reduce your interest rate to 2% for 5 years. After that, the interest rate will go back to the original level.
That way the write off will be much smaller than $150,000. It might be a $30,000 write off. That makes a much smaller difference on the CEO’s bonus for the year.
It’s also one of the reasons that most loan mod programs don’t work. The banks aren’t willing to be realistic.
It’s also why I think a short sale is the best principal reduction plan. You get to erase the bad debt. Rent a home for 2-3 years and then buy a new one at today’s market level.
That way you guarantee your principal reduction and don’t waste time arguing for a principal reduction with someone who isn’t allowed to give it to you. Thinking about a short sale?
I can help you short sale your property and never pay the bank another penny. Send me an e-mail at cliff@cliffhildreth.com. I will contact you for a free consultation.
When we talk, I will explain how the process works in detail and answer any questions you may have. Or, if you prefer, you can call me at (661) 904-1194
Thanks for reading this, Cliff Hildreth.
Cliff is a Real Estate Agent at Realty World Estates. Santa Clarita Valley Short Sales Realtor:
Phone: (661) 904-1194. cliff@cliffhildreth.com.
"Together We Can Make It Happen"
View My homes for sale at
www.cliffhildreth.com.
Cliff Hildreth specializes in loan modification assistance and short sales in Santa Clarita Valley California. Santa Clarita Valley Loan Modification Help, Santa Clarita Valley Short Sales. Santa Clarita Valley Short Sale Realtor. , Short Sale Realtor. Santa Clarita Valley CA Short Sales. Santa Clarita Valley Realtor.
Copyright 2011 Cliff Hildreth. All Rights Reserved. This is not intended as legal, technical, or tax advice. Please speak with a licensed professional before making any decision. Information is deemed reliable but not guaranteed as of the date of writing. The views expressed here are Cliff Hildreth's personal views and do not reflect the views of Realty World Estates.
"I am working on a loan modification on my home. I just don’t want to be upside down and want a fair interest rate. Why should I pay on a mortgage that is twice as much as my home is worth, plus the interest on that mortgage? It just doesn’t make sense.
How can I get a loan mod with a fair interest rate where I am repaying what my home is worth today? Thank for your help, Luis.”
Here was our answer. You are asking for something that most lenders don’t like to do. Lenders don’t like principal reductions. Here is why.
Principal reductions usually have to be written down right away on their financial books. If you owe them $300,000 and they reduce your loan principal to $150,000, then they immediately have to reduce the company’s earnings by $150,000 for the year.
If they do that on enough loans, then it hurts the CEO’s ability to get a bonus. He may even risk losing his job. I don’t offer much sympathy to CEOs, but that’s how it works.
Here is what lenders like to do instead. They will reduce your interest rate to 2% for 5 years. After that, the interest rate will go back to the original level.
That way the write off will be much smaller than $150,000. It might be a $30,000 write off. That makes a much smaller difference on the CEO’s bonus for the year.
It’s also one of the reasons that most loan mod programs don’t work. The banks aren’t willing to be realistic.
It’s also why I think a short sale is the best principal reduction plan. You get to erase the bad debt. Rent a home for 2-3 years and then buy a new one at today’s market level.
That way you guarantee your principal reduction and don’t waste time arguing for a principal reduction with someone who isn’t allowed to give it to you. Thinking about a short sale?
I can help you short sale your property and never pay the bank another penny. Send me an e-mail at cliff@cliffhildreth.com. I will contact you for a free consultation.
When we talk, I will explain how the process works in detail and answer any questions you may have. Or, if you prefer, you can call me at (661) 904-1194
Thanks for reading this, Cliff Hildreth.
Cliff is a Real Estate Agent at Realty World Estates. Santa Clarita Valley Short Sales Realtor:
Phone: (661) 904-1194. cliff@cliffhildreth.com.
"Together We Can Make It Happen"
View My homes for sale at
www.cliffhildreth.com.
Cliff Hildreth specializes in loan modification assistance and short sales in Santa Clarita Valley California. Santa Clarita Valley Loan Modification Help, Santa Clarita Valley Short Sales. Santa Clarita Valley Short Sale Realtor. , Short Sale Realtor. Santa Clarita Valley CA Short Sales. Santa Clarita Valley Realtor.
Copyright 2011 Cliff Hildreth. All Rights Reserved. This is not intended as legal, technical, or tax advice. Please speak with a licensed professional before making any decision. Information is deemed reliable but not guaranteed as of the date of writing. The views expressed here are Cliff Hildreth's personal views and do not reflect the views of Realty World Estates.
Monday, March 21, 2011
Another tip to improve the odds of your short sale offer being approved
Santa Clarita Valley CA – If you are selling your home, then ask the buyer to write a letter about why they want to purchase the home. If you are a buyer, then write that letter.Discover how other sellers successfully did a short sale to avoid foreclosure by clicking here.
The listing agent will submit that letter along with the short sale paperwork. With a little luck that letter will help “grease the wheels” and cause the short sale to be approved faster.
Short Sale negotiators are human beings. They have emotions that can be touched by a good story.
These letters might sound like a joke, but they can make a huge difference. I’ve even seen home owners lose money on their sale because the liked a certain buyer over another one.
In that case, the seller sold their home for several thousand dollars less to a buyer that they liked. The other buyer had been rude and the seller didn’t like them.
If that made a difference when the seller was losing their own money, then think about the difference it will make to a short sale negotiator who isn’t losing their own money.
Put a good story in your letter. Here are a few examples.
You might say something like this: “We are a first time home buyer looking for our first home. We just want to move out of our cramped apartment and are looking forward to our first home where we can plant a garden.”
Or, maybe it would be like this: “We have looked for a while and finally found this home on Elm Street that we love. We are selling our current home so we can buy a house with a yard.
Our two boys, Tim and Julian, have been begging us for a swing set. We never had room in our old condo.
If you approve our short sale offer, then we will finally be able to give them the large, fenced backyard they’ve always wanted with a swing set.
We’ve already picked out the swing set plan and Tim and Julian are so excited about it. So, don’t approve the short sale offer for us, approve it for them.”
See how I’m pulling the negotiator’s heartstrings. Unless your short sale negotiator is absolutely heartless, it will make a difference for you. Thinking about a short sale?
I can help you short sale your property and never pay the bank another penny. Send me an e-mail at cliff@cliffhildreth.com. I will contact you for a free consultation.
When we talk, I will explain how the process works in detail and answer any questions you may have. Or, if you prefer, you can call me at (661) 904-1194
Thinking about a loan modification? Our Santa Clarita Valley loan modification kit has the instructions you will need to get a loan modification approved with your bank.Call for a free copy.Thanks for reading this, Cliff Hildreth.
Cliff is an agent and the owner of Realty World Estates in Valencia, Ca. Santa Clarita Valley Short Sales Realtor:
Phone: (661) 904-1194. cliff@cliffhildreth.com.
"Together We Can Make It Happen"
View My homes for sale at www.cliffhildreth.com.
Cliff Hildreth specializes in loan modification assistance and short sales in Santa Clarita Valley California. Santa Clarita Valley Loan Modification Help, Santa Clarita Valley Short Sales. Santa Clarita Valley Short Sale Realtor. , Short Sale Realtor. Santa Clarita Valley CA Short Sales. Santa Clarita Valley Realtor.
Copyright 2011 Cliff Hildreth. All Rights Reserved. This is not intended as legal, technical, or tax advice. Please speak with a licensed professional before making any decision. Information is deemed reliable but not guaranteed as of the date of writing. The views expressed here are Cliff Hildreth's personal views and do not reflect the views of Realty World Estates in Valencia, Ca.
This information on Another tip to improve the odds of your short sale offer being approved is provided as a courtesy to our viewers to help them make informed decisions.
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