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FREE Foreclosure Options Workshop |
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Written by Administrator
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Wednesday, 06 January 2010 19:50 |
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FREE Foreclosure Options Workshop February 2010!
Options We Will Discuss And What Will Work For You!
Refinance
Loan Modification
Loan Audit
Short-Refinance
Short Sale
Hybrid Short Sale
Principal Write down
Deed-in-Lieu
Legally Get Rid Of Your 2nd Loan
Get All Your Money Back That You Paid Your Lender
Strategies To Protect Your Credit
Saturday February 27, 2010 10 AM – 12 Noon
GAIA Napa Hotel
3600 Broadway Street, American Canyon, CA 94503
Space is limited! Call To Secure A Seat Before Feb., 13
877-747-4386 |
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Last Updated on Monday, 11 January 2010 18:50 |
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Recourse Loans Vs. Non-Recourse Loans |
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Written by Administrator
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Sunday, 13 September 2009 13:28 |
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What is the difference with a recourse loan vs. a non-recourse loan and how do I know which one I have? A purchase loan is a non-recourse loan and a refinanced loan is a recourse loan. The loan type will also be listed on your note!
If a homeowner purchases a home with one loan in California this is considered a non-recourse loan. The bank has no recourse for the homeowner personally if the homeowner fails to make the monthly payment. The bank is entitled to take the property back by foreclosure process but is not able to go after other assets. The bank is also by law entitled to send a 1099A to a homeowner after a foreclosure. The bank is also by law entitled to "hit" a persons credit rating by listing "foreclosure" on the consumer's credit reports and the score will drop in points.
If a homeowner refinances the property with a new loan this then becomes a recourse loan. Often with a refinance there is an equity withdrawal sometimes called a "cash out" refinance. A recourse loan means that the bank or lender now has recourse from the homeowner. In the state of California the bank or lender typically foreclosure by Deed of Trust or Non-Judicial foreclosure. Therefore the 'recourse' isn't typically pursued with a Non-Judicial Foreclosure for a lender in first position, even with a 'recourse' loan. However, this may change as new laws come into effect, because of Congress and their infinite wisdom always put something together for the American Consumer as well as against the American Consumer. With foreclosure we are under the One Act Law, therefore the lender can foreclose by Deed of Trust but then cannot go back and get a deficiency judgment.
What about lender in second position with a recourse loan?
Well this is an excellent question. A lender in second position with a recourse loan has legal recourse to the debt owed on the loan. Therefore, that bank may and probably will go after the homeowner to get the money. A homeowner can try to 'settle' the debt with the bank or lender and should try to 'settle' the debt with the bank or lender or the first collection agency that the debt is sold to. If the debt is $50k a good 'negotiator' should be able to settle that debt for cheap, say $2k. My advice would be to get a release from the bank that relieves the homeowner from the full $50k in exchange for $2k. The collection agency will probably file a lawsuit against the homeowner in order to get a judgement against them and then try to garnish wages or put a lien on the homeowner's other assets such as a car or other real property in order to get paid. Now, let's say the debt owed is much higher like $300k for a fancy Beverly Hills property. Well this might be considered bankruptcy territory and I would highly suggest a homeowner view my free video for homeowners and investors who are threatened with foreclosure or considering strategic foreclosures and have questions regarding recourse vs. non-recourse loans.
http://www.foreclosureoptionsnetwork.com |
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No Credit Hits allowed on my default! |
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Written by Administrator
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Thursday, 30 July 2009 13:37 |
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If a homeowner is considering a loan modification, short sale, deed in lieu or walk away often the thought of a credit consequence comes to mind. If this is the case for you, this might be your lucky day. There is a powerful consumer protection law that allows a borrower this very option. If a borrower provides the lender(s) with a "qualified written request" in advance of defaulting on the mortgage and then does default on the mortgage, the lender is not authorized to report "missed payments, late payment, slow payment, no payment" on the borrowers credit reports.
In many cases the lender does not comply with this law and does list the "... payment" on the borrowers credit reports and in those cases, the borrower is then entitled to monetary damages from the lender. The range is anywhere from $12k-$36k depending on how many times the lender reports the late payments and how many loans their are on the property.
This is a very powerful tool for a borrower who is concerned about a credit hit while trying to negotiate a short sale, deed in lieu or loan modification. This credit protection allows for the borrower to save their credit and put some money in their pocket. A borrower can use small claims court to file this action against the lender so you do not even need an attorney. Of course you can use an attorney if you want to, this is up to the borrower.
For more information please call 1-877-747-4386 to speak with a member of or team about this strategy! |
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Last Updated on Thursday, 30 July 2009 13:53 |
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Principle Write Down Loan Modifications |
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Written by Administrator
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Saturday, 06 June 2009 22:05 |
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I am constantly getting asked about principle write down loan modifications. Often the banks are in a tough position that they are not authorized to write down principle balances at the request of the borrower. What are the options for getting the lender(s) to offer a principle write down?
Option 1:
Ask your lender for a principle write down loan modification. This would be done through a BPO and recent comps in the area. Financial statements that the borrower can make payments with a lower appraised value would also be helpful in getting a principle write down loan modification. I see these if the loan modification negotiator is aggressive and has an ability to negotiate well with the bank representative.
Option 2:
Hire a qualified agent to conduct a ‘forensic loan audit’ in order to find violations such as TILA, RESPA, Predatory Lending Practices and other violations. This would then be presented to the lender in order to demand a principle write down loan modification. Often these negotiations would be worked out in the Legal Department at the banks through legal representation on behalf of the borrower. These cases can get expensive therefore I like to work with Attorneys who are sensitive to a borrower’s budget.
Option 3
Again the borrower would begin with a ‘forensic loan audit’ in order to find violations such as TILA, RESPA, Predatory Lending Practices and other violations and then to include a bankruptcy strategy. The goal here is to make the lender ‘unsecured’ and then work out a repayment plan through the bankruptcy courts at the reduced price of the home and other debts that the borrower has. This strategy would allow the borrower to keep their home and gain relief from other debts that they may have. |
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Credit Crisis or Debt Crisis? |
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Written by Administrator
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Sunday, 10 May 2009 15:42 |
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Popular media suggests that we are in the middle of a credit crisis. However, I believe we are in a debt crisis more than a credit crisis.
We as consumers have applied for a large amount of credit that we can no longer service. The previous ‘credit’ is now ‘debt’. Our largest debt is our home loan. The average American has credit card bills of $30k. For those of us who are self employed ‘entrepreneurs’ we service double the average credit card debt of $60k. We use our credit cards to fund our businesses, this is the cost of being self employed and for many start up ventures this is necessary in order to get the business established. We need to set ourselves up for success both short term as well as long term so what are the choices? One choice is to de-leverage ourselves from the debt that we can no longer service. One method that can be effective is to look at a short sale to get out of a home and a mortgage that we can not afford, coupled with debt settlement to get the credit card debt to where it can be manageable. Another method is a loan modification coupled with debt settlement program to get some temporary relief from the high mortgage payment and lower credit card payments. Yet another option is to use a bankruptcy strategy to reduce the amount of debt and gain some relief, sometimes homeowners can keep their home and sometimes they cannot it depends on various factors. You must be realistic and look at both short term strategies as well as long term strategies in order to set yourself up for success. |
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Last Updated on Monday, 11 May 2009 13:46 |
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