Posted by Kim Adamof on Wed, Mar 11, 2009 @ 12:07 PM
Someone sent this to me. It's amazing how the ones in charge allowed this to happen. Actions have consequences. I guess they knew they wouldn't be in office for the fall-out so it'd be ok.
Posted by Kim Adamof on Mon, Feb 23, 2009 @ 07:46 AM
I came across this article on the Voice of America website. This statement was fascinating. "About 95 percent of folks are playing by the rules and struggling, but still paying their mortgages," said Sanford. "The idea that somebody down the street gets a different system is something that, ultimately, is going to undermine a whole lot of other folks with regard to paying their mortgage."
The "President Obama Plan" was hailed as a savior for our flailing economy. My sales in the Raleigh Real Estate Market have been done because both sellers and buyers were sitting on the sidelines with their breath held, waiting for President Obama to give us all a stimulus package.
Here is the link to read the article http://www.voanews.com/english/2009-02-22-voa19.cfm
It talks about how President Obama plans to help homeowners who are struggling financially, save their home from foreclosure.
"President Obama says his home foreclosure plan is one of three tools he will deploy to stabilize the U.S. economy. The other two are the stimulus plan he signed into law last week and Treasury Secretary Timothy Geithner's initiative to save troubled U.S. financial institutions. "
The New York Times today had this to say about the Presidential State of the Union Speech tomorrow night.
"Longer exposures allow people to take a measure of a person, rather than a snapshot," said Rahm Emanuel, the president's chief of staff. "It's only been a month since he was sworn into office, but hopefully they will walk away with something more intrinsic to sustain him through the ups and down and all the turns in the road.
The address comes at an opportune time for Mr. Obama, whose approval ratings remain strong despite growing criticism about some of the administration's economic plans. The White House was frustrated by a furor that erupted on cable television last week over whether some homeowners facing foreclosure were being given an unfair break. The speech, aides said, is intended to better explain why the intervention is needed."
Seems we'll find out Tuesday evening what the plan actually means.
Posted by Kim Adamof on Fri, Feb 20, 2009 @ 09:00 PM
If you are feeling that you might be getting behind in your mortgage, lenders can "modify" your loan.
Unfortunately though they've become a "Buyer Beware" concern. Homeowners are turning to government counseling agencies to help navigating this maze.
Most people never even knew that loan mods have been around for years. Its just more recently with the government bailout of the mortgage industry that we've been hearing about loan modifications.
Homeowners are at the mercy of their lender though. "The workouts are often voluntary and, completed on a case-by-case basis, they frequently come without standardized procedures."
"Homeowners are finding it tough to know when a modification will work and how to best obtain one."
What is a mortgage modification?
A home loan modification, granted only upon the existing lender's approval, permanently reworks some of the terms of an existing mortgage in order to make the loan more affordable to the homeowner.
The strategy is typically designed for homeowners struggling to pay their mortgage, not for those who can pay their mortgage or are eligible for a refinanced loan.
Modifications are generally lender fee-free and involve the lender or loan holder lowering the interest rate and or changing an adjustable-rate mortgage (ARM) to a fixed rate mortgage (FRM) with a 30-year term. Some form of mandated homeownership counseling generally comes with the deal.
Finding Reputable Loan Modification Companies
You can find dozens of loan modification companies on the Internet or through advertisements, but the best way to find reputable professionals is through referrals. If you know other people who have worked through a loan modification service, ask for the company's name and contact information and how satisfied they were with the services they received.
Identifying companies with the right stuff
When you begin your quest, search for companies that meet or exceed the following criteria:
- Phone number and street address - not just a Web site, P.O. Box number, and toll-free phone number
- Solid industry reputation and transparency
- BBB (Better Business Bureau) member in good standing or a member of other consumer-friendly organization
- Real testimonials of prior success in negotiating loan modifications
- Professional designations - licensed, insured, member of reputable industry associations
- Professional affiliations - team members with distinctions and education such as lawyers, real estate professionals, and so on
- Track record for promoting industry regulation and oversight
- Companies that offer educational resources, an honest Web presence, and clear, detailed explanations of the problems and solutions
- Favorable refund policies or no up front fees. Up front fees are common and not a red flag if you're dealing with attorneys or a law firm.
Spotting red flags
You need to be on the lookout for the following warning signs:
- Pure salesmanship, no substance, just a shell game
- Compliance or regulatory complaints filed with and verified by reputable organizations, such as the Better Business Bureau or a state regulatory agency, not simply a disgruntled consumer posting a rip-off report on the Internet
- Inability of representatives to answer questions
- Lack of straight answers
- Undercapitalized start-up companies simply trying to cash in on a crisis
- Companies that encourage you to act on emotion or fear rather than make informed decisions
- Companies with cheap or shoddy looking Web presence - if you see a page with Google ads, run the other way
- Companies that can't, don't, or refuse to explain the process and services they perform
- A one-size-fits-all approach - they should ask you plenty of questions before offering a solution
- Companies that pirate reputable company's resources and copyrighted materials
- Companies that guarantee results or make wild claims - offering a money-back guarantee is acceptable, but nobody can guarantee success
- Large up-front fees with an unclear or no refund policy
Tip: If a company reviews the case and says it cannot help you, do not judge them harshly - they may be the only trustworthy company of the bunch. Some companies promise the moon to get the business knowing full well they cannot deliver.
Trust your instincts. The company must pass the "smell test" - that is, if you smell something funny, dismiss the company. You need to feel comfortable and confident in the company before jumping in. Take your time:
- Don't get pressured into signing up for anything immediately.
- Have your attorney review any documents or contracts before signing them.
- Ask questions until you fully understand anything you find confusing or out of the ordinary.
- Ask the same question in different ways and on multiple occasions - the answer shouldn't change unless your situation has.
Communication Is Key
The prospect of losing one's home is very scary. You need to be as cooperative as possible with your mortgage representative and to keep the lines of communication open. This process takes time - your representative may be hard at work, but the lender could be dragging its feet.
The best approach is for you to remain patient. Calling every day or becoming upset when you have not heard back from your loan modification representative for several days or even a week is counterproductive. On the other hand, don't be afraid to call your representative about pressing issues, especially if you haven't heard from them in a few weeks.
Patients and communication are key when trying to modify your loan.