Tuesday, June 26, 2012
SHORT SALES IN WESLEY CHAPEL/LAND O LAKES
WHY WESLEY CHAPEL AND LAND O LAKES AREA?
Many homes have been built in Wesley Chapel, Land o’ Lakes since 2005, so we have a lot of short sale opportunities to buy a newer home at a huge discount.
We have starter homes, retirement homes & large luxury homes in gated communities.
We are fortunate enough to have the best A-rated schools here with all the extra-curricular programs and activities for our extraordinary students.
Sports is a big deal in Pasco County so we have some of the best sports parks in the state with both recreational as well as competitive sports for all ages.
We have new Hospitals, and the best health care, Churches, Restaurants, Movies, and many shopping centers including the Wiregrass Towne Center in Wesley Chapel.
There are so many attractions only a few miles away, lots of golf courses and plenty to do.
Pasco County is known for their lower taxes than Tampa, and lower insurance rates for your home and car.
The Wesley Chapel & Land o Lakes area is the best place to live in the Tampa Bay Area!
CONTACT DEE: deesmith@deesmith.com text 813-714-9737
http://www.DeeSmith.com
Monday, February 20, 2012
EXECUTIVE SUMMARY OF MULTISTATE/FEDERAL SETTLEMENT OF FORECLOSURE MISCONDUCT CLAIMS
Recently a settlement between 49 States and the Federal Government against 5 major banks over illegal foreclosure procedures was reached and here is the summary from the CDPE website.
Philip A. Lehman
Assistant Attorney General
Consumer Protection Division
North Carolina Department of Justice
The settlement between the state attorneys general and the five leading
bank mortgage servicers will result in approximately $25 billion dollars in
monetary sanctions and relief. The settlement represents the largest financial
recovery obtained by the attorneys general except for the 1998 Master Tobacco
Settlement. The accord will enable hundreds of thousands of distressed
homeowners to stay in their homes through enhanced loan modifications. It
will also fund payments to victims of unfair foreclosure practices and provide
support for housing counseling and state-level foreclosure prevention programs.
In addition to the monetary allocations, the settlement will require
comprehensive reforms of mortgage loan servicing. The mandated standards
will cover all aspects of mortgage servicing, from consumer response to
foreclosure documentation. To ensure that the banks meet the new standards,
the settlement will be recorded and enforceable as a court judgment.
Compliance will be overseen by an independent monitor who will report to the
attorneys general and the court.
The settlement follows ten months of intensive negotiations between the five
banks and a coalition of state attorneys general and federal agencies, including
the Departments of Justice, Treasury, and Housing and Urban Development. The
investigation began in October 2010 following revelations of widespread use
of “robo-signed” affidavits in foreclosure proceedings across the country. State
attorneys general formed a working group to investigate the problem and to
confront the banks about the allegations. The major mortgage servicing banks
soon acknowledged that individuals had been signing thousands of foreclosure
affidavits without reviewing the validity or accuracy of the sworn statements.
Several national banks then agreed to stop their foreclosure filings and sales
until corrective action could be taken.
While the robo-signing issue received the most attention, other servicer-related
problems were identified, including deceptive practices in the offering of loan
modifications (for example, telling consumers that a loan modification was
imminent while simultaneously foreclosing). The performance failures resulted
in more than just poor customer service. Unnecessary foreclosures occurred due
to failure to process homeowners’ requests for modified payment plans. And
where foreclosures should have been concluded, shoddy documentation led to
protracted delays. This misconduct threatened the integrity of the legal system
and had a negative impact on communities and the overall housing market.
All 50 state attorneys general determined that the compliance and performance
failures prevalent in mortgage servicing were a high priority law enforcement
and consumer protection matter. A bipartisan Negotiating Committee, made up
of eight attorneys general led the settlement negotiations. The Committee had
extensive discussions with a wide variety of stakeholders, including investor
groups, state banking examiners, bankruptcy attorneys, consumer groups and
1
EXECUTIVE SUMMARY OF MULTISTATE/
FEDERAL SETTLEMENT OF FORECLOSURE
MISCONDUCT CLAIMS
legal aid attorneys. The assistance and cooperation of state banking regulators and the Conference
of State Banking Supervisors was particularly helpful in developing expertise. The attorneys
general also partnered with federal authorities in order to benefit from their expertise and
investigations. A working relationship with federal agencies was particularly important because
national banks assert that state officials have no authority to investigate their banking practices.
The negotiations focused on robo-signing and mortgage servicing misconduct. The resulting
settlement addresses the primary goals of the attorneys general: to provide immediate relief to
enable struggling homeowners to avoid foreclosure; to bring badly needed reform to the mortgage
servicing industry; to ensure that foreclosures are lawfully conducted; and to penalize the banks
for robo-signing misconduct. The settlement imposes monetary sanctions on the banks while
providing immediate and continuing relief to homeowners. Full litigation of the states’ claims
would likely have taken years, at a time when the foreclosure crisis requires immediate relief for
homeowners. And adjudication of state-based robo-signing claims may have led to civil penalties
but could not have yielded the amount and scope of the relief obtained in this settlement.
The settlement was not intended to address issues related to mortgage loan securitization or the
concerns of investors. The settlement does not release securitization claims, so private parties
and government officials are free to pursue those claims. Nor does the settlement provide any
immunity or release for criminal conduct.
SUMMARY OF KEY SETTLEMENT TERMS
I. Relief for Struggling Homeowners
The settlement requires the five banks to allocate a total of $17 billion in assistance to borrowers
who have the intent and ability to stay in their homes while making reasonable payments on their
mortgage loans. At least 60 percent of the $17 billion must be allocated to reduce the principal
balance of home loans for borrowers who are in default or at risk of default on their loan payments.
Many homeowners, particularly in states like Florida, Arizona, Nevada and California, have
negative equity in their homes and have no realistic ability of refinancing or selling their homes, or
to build equity. Principal reductions will also yield lower payments and will give homeowners a
fair opportunity to preserve their homes.
In addition to principal reductions, the banks must allocate funds, approximately $5.2 billion, for
other forms of homeowner assistance. These options include the facilitation of short sales which
allow houses to be bought and sold when the mortgage balance exceeds the value of the property.
Another program is unemployed payment forbearance, which will defer payments for homeowners
who are between jobs. Other options for funding include relocation assistance for homeowners
facing foreclosure, waiving of deficiency balances, and funding for remediation of blighted
properties.
II. Refinancing of Underwater Homes
To assist homeowners who are not delinquent on their payments but cannot refinance to lower
rates because of negative equity, the banks must offer refinance programs totaling at least $3
billion. The banks will be required to notify eligible homeowners of the availability of these
programs. To be eligible, a borrower must be current on mortgage payments, have a loan to value
ratio in excess of 100%, and must have a current interest rate in excess of 5.25%. The refinanced
rate must reduce monthly payments by at least $100.
EXECUTIVE SUMMARY OF MULTISTATE/FEDERAL SETTLEMENT OF FORECLOSURE MISCONDUCT CLAIMS
2
III. Mortgage Servicing Reforms
A major component of the settlement is the comprehensive reform of mortgage servicing
practices. The new standards will prevent mortgage servicers from engaging in robo-signing and
other improper foreclosure practices. The standards will require banks to offer loss mitigation
alternatives to borrowers before pursuing foreclosure. They also increase the transparency of the
loss mitigation process, impose time lines to respond to borrowers, and restrict the unfair practice
of “dual tracking,” where foreclosure is initiated despite the borrower’s engagement in a loss
mitigation process.
Specific new servicing standards include:
• Information in foreclosure affidavits must be personally reviewed and based on competent
evidence.
• Holders of loans and their legal standing to foreclose must be documented and disclosed to
borrowers.
• Borrowers must be sent a pre-foreclosure notice that will include a summary of loss
mitigation options offered, an account summary, description of facts supporting lender’s right
to foreclose, and a notice that the borrower may request a copy of the loan note and the
identity of the investor holding the loan.
• Borrowers must be thoroughly evaluated for all available loss mitigation options before
foreclosure referral, and banks must act on loss mitigation applications before referring loans
to foreclosure; i.e. “dual tracking” will be restricted.
• Denials of loss mitigation relief must be automatically reviewed, with a right to appeal for
borrowers.
• Banks must implement procedures to ensure accuracy of accounts and default fees, including
regular audits, detailed monthly billing statements and enhanced billing dispute rights for
borrowers.
• Banks are required to adopt procedures to oversee foreclosure firms, trustees and other
agents.
• Banks will have specific loss mitigation obligations, including customer outreach and
communications, time lines to respond to loss mitigation applications, and e-portals for
borrowers to keep informed of loan modification status.
• Banks are required to designate an employee as a continuing single point of contact to assist
borrowers seeking loss mitigation assistance.
• Military personnel who are covered by the Service members Civil Relief Act (SCRA) will have
enhanced protections.
• Banks must maintain adequate trained staff to handle the demand for loss mitigation relief.
• Application and qualification information for proprietary loan modifications must be publicly
available.
• Servicers are required to expedite and facilitate short sales of distressed properties.
• Restrictions are imposed on default fees, late fees, third-party fees, and force-placed
insurance.
IV. Monitoring and Enforcement
The settlement with each bank will be incorporated into a Consent Judgment that will be submitted
to a federal judge for approval. Compliance with the servicing standards and financial obligations
of the banks can be ultimately enforced through court process. Civil penalties may be assessed for
violations of the Consent Judgment.
EXECUTIVE SUMMARY OF MULTISTATE/FEDERAL SETTLEMENT OF FORECLOSURE MISCONDUCT CLAIMS
3
The banks’ performance of their obligations under the settlement will be overseen by an
independent Monitor. The Monitor will employ a staff of professionals to review the banks’
compliance. The Monitor will issue periodic reports to the attorneys general, including notices of
any potential violations.
The banks will report on their compliance in the form of agreed-upon metrics and outcome
measures. Included among the compliance metrics are testing for proper documentation of
foreclosures, loss mitigation offers and proper evaluation of loan modification applications. There
will also be testing to ensure that borrowers’ account information is accurate and that any fees are
properly assessed and are not excessive. If banks fail to remedy violations, they are subject to civil
penalties of up to $5 million from the court.
V. Payments to Foreclosure Victims
Approximately $1.5 billion of the settlement funds will be allocated to compensation to borrowers
who were foreclosed on after January 1, 2008. These borrowers will be notified of their right to
file a claim. Borrowers who were not properly offered loss mitigation or who were otherwise
improperly foreclosed on will be eligible for a uniform payment, which will be approximately
$2000 per borrower depending on level of response. Borrowers who receive payments will not
have to release any claims and will be free to seek additional relief in the courts. Borrowers may
also be eligible for a separate restitution process administered by the federal banking regulators.
VI. Payments to the States
The remaining settlement funds, approximately $2.5 billion, will be paid to the participating states.
The funds may be distributed by the attorneys general to foreclosure relief and housing programs,
including housing counseling, legal assistance, foreclosure prevention hotlines, foreclosure
mediation, and community blight remediation. A portion of the funds may also be designated as
civil penalties for the banks robo-signing misconduct.
VII. Release of Claims
The proposed Release contains a broad release of the banks’ conduct related to mortgage loan
servicing, foreclosure preparation, and mortgage loan origination services. Claims based on
these areas of past conduct by the banks cannot be brought by state attorneys general or banking
regulators.
The Release applies only to the named bank parties. It does not extend to third parties who may
have provided default or foreclosure services for the banks. Notably, claims against MERSCORP, Inc.
or Mortgage Electronic Registration Systems, Inc. (MERS) are not released.
Securitization claims, including claims of state and local pension funds, and including investor
claims related to the formation, marketing or offering of securities, are fully preserved. Other
claims that are not released include violations of state fair lending laws, criminal law enforcement,
claims of state agencies having independent regulatory jurisdiction, claims of county recorders for
fees, and actions to quiet title to foreclosed properties. Of course, the Release does not affect the
rights of any individuals or entities to pursue their own claims for relief.
EXECUTIVE SUMMARY OF MULTISTATE/FEDERAL SETTLEMENT OF FORECLOSURE MISCONDUCT CLAIMS
4
Philip A. Lehman
Assistant Attorney General
Consumer Protection Division
North Carolina Department of Justice
The settlement between the state attorneys general and the five leading
bank mortgage servicers will result in approximately $25 billion dollars in
monetary sanctions and relief. The settlement represents the largest financial
recovery obtained by the attorneys general except for the 1998 Master Tobacco
Settlement. The accord will enable hundreds of thousands of distressed
homeowners to stay in their homes through enhanced loan modifications. It
will also fund payments to victims of unfair foreclosure practices and provide
support for housing counseling and state-level foreclosure prevention programs.
In addition to the monetary allocations, the settlement will require
comprehensive reforms of mortgage loan servicing. The mandated standards
will cover all aspects of mortgage servicing, from consumer response to
foreclosure documentation. To ensure that the banks meet the new standards,
the settlement will be recorded and enforceable as a court judgment.
Compliance will be overseen by an independent monitor who will report to the
attorneys general and the court.
The settlement follows ten months of intensive negotiations between the five
banks and a coalition of state attorneys general and federal agencies, including
the Departments of Justice, Treasury, and Housing and Urban Development. The
investigation began in October 2010 following revelations of widespread use
of “robo-signed” affidavits in foreclosure proceedings across the country. State
attorneys general formed a working group to investigate the problem and to
confront the banks about the allegations. The major mortgage servicing banks
soon acknowledged that individuals had been signing thousands of foreclosure
affidavits without reviewing the validity or accuracy of the sworn statements.
Several national banks then agreed to stop their foreclosure filings and sales
until corrective action could be taken.
While the robo-signing issue received the most attention, other servicer-related
problems were identified, including deceptive practices in the offering of loan
modifications (for example, telling consumers that a loan modification was
imminent while simultaneously foreclosing). The performance failures resulted
in more than just poor customer service. Unnecessary foreclosures occurred due
to failure to process homeowners’ requests for modified payment plans. And
where foreclosures should have been concluded, shoddy documentation led to
protracted delays. This misconduct threatened the integrity of the legal system
and had a negative impact on communities and the overall housing market.
All 50 state attorneys general determined that the compliance and performance
failures prevalent in mortgage servicing were a high priority law enforcement
and consumer protection matter. A bipartisan Negotiating Committee, made up
of eight attorneys general led the settlement negotiations. The Committee had
extensive discussions with a wide variety of stakeholders, including investor
groups, state banking examiners, bankruptcy attorneys, consumer groups and
1
EXECUTIVE SUMMARY OF MULTISTATE/
FEDERAL SETTLEMENT OF FORECLOSURE
MISCONDUCT CLAIMS
legal aid attorneys. The assistance and cooperation of state banking regulators and the Conference
of State Banking Supervisors was particularly helpful in developing expertise. The attorneys
general also partnered with federal authorities in order to benefit from their expertise and
investigations. A working relationship with federal agencies was particularly important because
national banks assert that state officials have no authority to investigate their banking practices.
The negotiations focused on robo-signing and mortgage servicing misconduct. The resulting
settlement addresses the primary goals of the attorneys general: to provide immediate relief to
enable struggling homeowners to avoid foreclosure; to bring badly needed reform to the mortgage
servicing industry; to ensure that foreclosures are lawfully conducted; and to penalize the banks
for robo-signing misconduct. The settlement imposes monetary sanctions on the banks while
providing immediate and continuing relief to homeowners. Full litigation of the states’ claims
would likely have taken years, at a time when the foreclosure crisis requires immediate relief for
homeowners. And adjudication of state-based robo-signing claims may have led to civil penalties
but could not have yielded the amount and scope of the relief obtained in this settlement.
The settlement was not intended to address issues related to mortgage loan securitization or the
concerns of investors. The settlement does not release securitization claims, so private parties
and government officials are free to pursue those claims. Nor does the settlement provide any
immunity or release for criminal conduct.
SUMMARY OF KEY SETTLEMENT TERMS
I. Relief for Struggling Homeowners
The settlement requires the five banks to allocate a total of $17 billion in assistance to borrowers
who have the intent and ability to stay in their homes while making reasonable payments on their
mortgage loans. At least 60 percent of the $17 billion must be allocated to reduce the principal
balance of home loans for borrowers who are in default or at risk of default on their loan payments.
Many homeowners, particularly in states like Florida, Arizona, Nevada and California, have
negative equity in their homes and have no realistic ability of refinancing or selling their homes, or
to build equity. Principal reductions will also yield lower payments and will give homeowners a
fair opportunity to preserve their homes.
In addition to principal reductions, the banks must allocate funds, approximately $5.2 billion, for
other forms of homeowner assistance. These options include the facilitation of short sales which
allow houses to be bought and sold when the mortgage balance exceeds the value of the property.
Another program is unemployed payment forbearance, which will defer payments for homeowners
who are between jobs. Other options for funding include relocation assistance for homeowners
facing foreclosure, waiving of deficiency balances, and funding for remediation of blighted
properties.
II. Refinancing of Underwater Homes
To assist homeowners who are not delinquent on their payments but cannot refinance to lower
rates because of negative equity, the banks must offer refinance programs totaling at least $3
billion. The banks will be required to notify eligible homeowners of the availability of these
programs. To be eligible, a borrower must be current on mortgage payments, have a loan to value
ratio in excess of 100%, and must have a current interest rate in excess of 5.25%. The refinanced
rate must reduce monthly payments by at least $100.
EXECUTIVE SUMMARY OF MULTISTATE/FEDERAL SETTLEMENT OF FORECLOSURE MISCONDUCT CLAIMS
2
III. Mortgage Servicing Reforms
A major component of the settlement is the comprehensive reform of mortgage servicing
practices. The new standards will prevent mortgage servicers from engaging in robo-signing and
other improper foreclosure practices. The standards will require banks to offer loss mitigation
alternatives to borrowers before pursuing foreclosure. They also increase the transparency of the
loss mitigation process, impose time lines to respond to borrowers, and restrict the unfair practice
of “dual tracking,” where foreclosure is initiated despite the borrower’s engagement in a loss
mitigation process.
Specific new servicing standards include:
• Information in foreclosure affidavits must be personally reviewed and based on competent
evidence.
• Holders of loans and their legal standing to foreclose must be documented and disclosed to
borrowers.
• Borrowers must be sent a pre-foreclosure notice that will include a summary of loss
mitigation options offered, an account summary, description of facts supporting lender’s right
to foreclose, and a notice that the borrower may request a copy of the loan note and the
identity of the investor holding the loan.
• Borrowers must be thoroughly evaluated for all available loss mitigation options before
foreclosure referral, and banks must act on loss mitigation applications before referring loans
to foreclosure; i.e. “dual tracking” will be restricted.
• Denials of loss mitigation relief must be automatically reviewed, with a right to appeal for
borrowers.
• Banks must implement procedures to ensure accuracy of accounts and default fees, including
regular audits, detailed monthly billing statements and enhanced billing dispute rights for
borrowers.
• Banks are required to adopt procedures to oversee foreclosure firms, trustees and other
agents.
• Banks will have specific loss mitigation obligations, including customer outreach and
communications, time lines to respond to loss mitigation applications, and e-portals for
borrowers to keep informed of loan modification status.
• Banks are required to designate an employee as a continuing single point of contact to assist
borrowers seeking loss mitigation assistance.
• Military personnel who are covered by the Service members Civil Relief Act (SCRA) will have
enhanced protections.
• Banks must maintain adequate trained staff to handle the demand for loss mitigation relief.
• Application and qualification information for proprietary loan modifications must be publicly
available.
• Servicers are required to expedite and facilitate short sales of distressed properties.
• Restrictions are imposed on default fees, late fees, third-party fees, and force-placed
insurance.
IV. Monitoring and Enforcement
The settlement with each bank will be incorporated into a Consent Judgment that will be submitted
to a federal judge for approval. Compliance with the servicing standards and financial obligations
of the banks can be ultimately enforced through court process. Civil penalties may be assessed for
violations of the Consent Judgment.
EXECUTIVE SUMMARY OF MULTISTATE/FEDERAL SETTLEMENT OF FORECLOSURE MISCONDUCT CLAIMS
3
The banks’ performance of their obligations under the settlement will be overseen by an
independent Monitor. The Monitor will employ a staff of professionals to review the banks’
compliance. The Monitor will issue periodic reports to the attorneys general, including notices of
any potential violations.
The banks will report on their compliance in the form of agreed-upon metrics and outcome
measures. Included among the compliance metrics are testing for proper documentation of
foreclosures, loss mitigation offers and proper evaluation of loan modification applications. There
will also be testing to ensure that borrowers’ account information is accurate and that any fees are
properly assessed and are not excessive. If banks fail to remedy violations, they are subject to civil
penalties of up to $5 million from the court.
V. Payments to Foreclosure Victims
Approximately $1.5 billion of the settlement funds will be allocated to compensation to borrowers
who were foreclosed on after January 1, 2008. These borrowers will be notified of their right to
file a claim. Borrowers who were not properly offered loss mitigation or who were otherwise
improperly foreclosed on will be eligible for a uniform payment, which will be approximately
$2000 per borrower depending on level of response. Borrowers who receive payments will not
have to release any claims and will be free to seek additional relief in the courts. Borrowers may
also be eligible for a separate restitution process administered by the federal banking regulators.
VI. Payments to the States
The remaining settlement funds, approximately $2.5 billion, will be paid to the participating states.
The funds may be distributed by the attorneys general to foreclosure relief and housing programs,
including housing counseling, legal assistance, foreclosure prevention hotlines, foreclosure
mediation, and community blight remediation. A portion of the funds may also be designated as
civil penalties for the banks robo-signing misconduct.
VII. Release of Claims
The proposed Release contains a broad release of the banks’ conduct related to mortgage loan
servicing, foreclosure preparation, and mortgage loan origination services. Claims based on
these areas of past conduct by the banks cannot be brought by state attorneys general or banking
regulators.
The Release applies only to the named bank parties. It does not extend to third parties who may
have provided default or foreclosure services for the banks. Notably, claims against MERSCORP, Inc.
or Mortgage Electronic Registration Systems, Inc. (MERS) are not released.
Securitization claims, including claims of state and local pension funds, and including investor
claims related to the formation, marketing or offering of securities, are fully preserved. Other
claims that are not released include violations of state fair lending laws, criminal law enforcement,
claims of state agencies having independent regulatory jurisdiction, claims of county recorders for
fees, and actions to quiet title to foreclosed properties. Of course, the Release does not affect the
rights of any individuals or entities to pursue their own claims for relief.
EXECUTIVE SUMMARY OF MULTISTATE/FEDERAL SETTLEMENT OF FORECLOSURE MISCONDUCT CLAIMS
4
Monday, April 11, 2011
HAFA NEWS
Treasury: Nearly 4,500 HAFA Short Sales and Deeds-in-Lieu Completed
04/01/2011 By: Carrie Bay
The Treasury Department released a new report on the government’s foreclosure prevention efforts Friday. In addition to the Home Affordable Modification Program (HAMP) numbers that are regularly recounted, new this month are details on short sales and deeds-in-lieu, as well as second lien modifications.
Treasury reports that as of the end of February, 4,488 homeowners completed a short sale or deed-in-lieu (DIL) under the Home Affordable Foreclosure Alternatives (HAFA) program. The federal program provides up to $3,000 for relocation assistance after a homeowner exits the home.
Another 10,177 homeowners have agreements in place with their servicers for HAFA short sale and DIL transactions. Treasury notes in its report that the HAFA short sale timeline “lasts at least 120 days,” and requires the cooperation of junior lien holders in order to complete the transaction.
This report also marked the department’s first reporting on its Second Lien Modification Program (2MP), which provides assistance to homeowners in a first lien HAMP mod who have an eligible second lien with a participating servicer.
At February month-end, 16,951 homeowners in the HAMP program had also received a second-lien modification through 2MP. Since homeowners with first lien mortgage modifications under HAMP become automatically eligible when their second lien servicer participates in 2MP, Treasury says this number will continue to grow.
In addition, Treasury reported that 26,147 homeowners were put into permanent first-lien HAMP mods during the month of February, bringing the total number of active permanent modification under the program to just over 557,000.
Homeowners in active permanent mods realize a median monthly savings of $528, or 37 percent of their pre-modification payment, according to Treasury. To date, officials say HAMP has lowered borrowers’ monthly mortgage payments by an aggregate $5.4 billion.
The number of borrowers who have fallen out of the program stands out in the Treasury’s list of program stats. Since HAMP began in early 2009, over 1.5 million trial modifications have been initiated. More than 746,000 trials were canceled, and 76,600 mods have been cancelled after they were made permanent, for a fall-out rate of more than 50 percent.
Administration officials say that looking at the results behind the numbers, each month HAMP keeps over 25,000 new families in their homes, but the program has had its fair share of critics.
Earlier this week, the U.S. House of Representatives passed legislation to terminate HAMP, and a group of Republican senators have already introduced their own legislation to end the program.
The White House, though, says the continuation of the program is important to reviving the housing market and sustaining the nation’s economic recovery, and President Obama has said he will veto any HAMP-ending bill.
www.DeeSmith.com
04/01/2011 By: Carrie Bay
The Treasury Department released a new report on the government’s foreclosure prevention efforts Friday. In addition to the Home Affordable Modification Program (HAMP) numbers that are regularly recounted, new this month are details on short sales and deeds-in-lieu, as well as second lien modifications.
Treasury reports that as of the end of February, 4,488 homeowners completed a short sale or deed-in-lieu (DIL) under the Home Affordable Foreclosure Alternatives (HAFA) program. The federal program provides up to $3,000 for relocation assistance after a homeowner exits the home.
Another 10,177 homeowners have agreements in place with their servicers for HAFA short sale and DIL transactions. Treasury notes in its report that the HAFA short sale timeline “lasts at least 120 days,” and requires the cooperation of junior lien holders in order to complete the transaction.
This report also marked the department’s first reporting on its Second Lien Modification Program (2MP), which provides assistance to homeowners in a first lien HAMP mod who have an eligible second lien with a participating servicer.
At February month-end, 16,951 homeowners in the HAMP program had also received a second-lien modification through 2MP. Since homeowners with first lien mortgage modifications under HAMP become automatically eligible when their second lien servicer participates in 2MP, Treasury says this number will continue to grow.
In addition, Treasury reported that 26,147 homeowners were put into permanent first-lien HAMP mods during the month of February, bringing the total number of active permanent modification under the program to just over 557,000.
Homeowners in active permanent mods realize a median monthly savings of $528, or 37 percent of their pre-modification payment, according to Treasury. To date, officials say HAMP has lowered borrowers’ monthly mortgage payments by an aggregate $5.4 billion.
The number of borrowers who have fallen out of the program stands out in the Treasury’s list of program stats. Since HAMP began in early 2009, over 1.5 million trial modifications have been initiated. More than 746,000 trials were canceled, and 76,600 mods have been cancelled after they were made permanent, for a fall-out rate of more than 50 percent.
Administration officials say that looking at the results behind the numbers, each month HAMP keeps over 25,000 new families in their homes, but the program has had its fair share of critics.
Earlier this week, the U.S. House of Representatives passed legislation to terminate HAMP, and a group of Republican senators have already introduced their own legislation to end the program.
The White House, though, says the continuation of the program is important to reviving the housing market and sustaining the nation’s economic recovery, and President Obama has said he will veto any HAMP-ending bill.
www.DeeSmith.com
Wednesday, March 30, 2011
SHORT SALE OPTIONS
Options you have when you must sell and you owe more than the value of your property.
Bring money to the closing to make up the difference – By far the best and quickest way to go if you can manage it, and worth the money. No future tax, credit, or legal problems. If you have the money, the bank will know and after waiting months on a short sale, you may still need to pay the bank some or all of the difference. A normal sale will produce a higher selling price and a quicker sale saving you time and money.
Short sale – Make sure your Realtor is successful in this area, has SFR and CDPE designations and has testimonials and referrals. Talk to your CPA about tax issues. Possible future tax and legal issues, and/or wage garnishment if not handled properly. You could still unknowingly owe the difference if not handled properly. Or, if handled properly, no tax issues, legal issues, credit issues, or wage garnishment. The experience of the Realtor handling the short sale is the critical key.
Foreclosure – Stop paying your mortgage, and do nothing. Surety of future legal issues, tax issues, credit issues, and/or wage garnishment.
Deed in lieu of Foreclosure – Surety of legal issues, tax issues, credit issues and/or wage garnishment.
Bankruptcy – speak with a bankruptcy attorney. Takes a long time and still may have some long term tax, credit, legal issues and/or wage garnishment. Ask bankruptcy attorney about future issues and get the answers in writing so you can remember what was said. Or take notes. Bankruptcy goes on for years and affects every aspect of your life. This should be your last resort.
Bring money to the closing to make up the difference – By far the best and quickest way to go if you can manage it, and worth the money. No future tax, credit, or legal problems. If you have the money, the bank will know and after waiting months on a short sale, you may still need to pay the bank some or all of the difference. A normal sale will produce a higher selling price and a quicker sale saving you time and money.
Short sale – Make sure your Realtor is successful in this area, has SFR and CDPE designations and has testimonials and referrals. Talk to your CPA about tax issues. Possible future tax and legal issues, and/or wage garnishment if not handled properly. You could still unknowingly owe the difference if not handled properly. Or, if handled properly, no tax issues, legal issues, credit issues, or wage garnishment. The experience of the Realtor handling the short sale is the critical key.
Foreclosure – Stop paying your mortgage, and do nothing. Surety of future legal issues, tax issues, credit issues, and/or wage garnishment.
Deed in lieu of Foreclosure – Surety of legal issues, tax issues, credit issues and/or wage garnishment.
Bankruptcy – speak with a bankruptcy attorney. Takes a long time and still may have some long term tax, credit, legal issues and/or wage garnishment. Ask bankruptcy attorney about future issues and get the answers in writing so you can remember what was said. Or take notes. Bankruptcy goes on for years and affects every aspect of your life. This should be your last resort.
Monday, September 6, 2010
7902 WILLOW BROOK CT, HUDSON, FL 34667
7902 WILLOW BROOK CT, HUDSON, FL 34667 $100,000
MADE FOR ENTERTAINING! This house flows beautifully and it is move in ready! WELL MAINTAINED AND EXCELLENT CONDITION. Huge 2304 sqft, 3BR 2Bath w/Lg Living room w/wood burning fireplace & sliders to Massive Florida Room, very bright and cheery eat in kitchen with bay, tiffany style light & sliders to the Florida room. Tile in all the right places. Very large closets in every room w/California closets in 2 bedrooms. 2 car side-load garage has door opener and extra off street parking in the curved driveway. this location is close to everything you need, no CDD, $280/yr HOA and low Pasco taxes. It's a no-brainer! Virtual tour: http://vt.realbiz360.com/Listing-484230.html Must see! www.Deesmith.com This is a short sale with only one mortgage,Bank of America. It should close quickly. CDPE
Monday, May 31, 2010
What is a Short Sale?
A short sale can be an excellent solution for homeowners who need to sell, and who owe more on their homes than they are worth. In the past, it was rare for a bank or lender to accept a short sale. Today, however, due to overwhelming market changes, banks and lenders have become much more negotiable when it comes to these transactions. Recent changes in corporate policy have also improved the chances of getting a short sale approved. But to be technical, here's a more official definition:A homeowner is 'short' when the amount owed on his/her property is higher than current market value.
A short sale occurs when a negotiation is entered into with the homeowner's mortgage company (or companies) to accept less than the full balance of the loan at closing. A buyer closes on the property, and the property is then 'sold short' of the total value of the mortgage.
For homeowners to qualify for a short sale, they must fall into any or all of the following circumstances:
Financial Hardship – There is a situation causing you to have trouble affording your mortgage.
Monthly Income Shortfall – In other words: "You have more month than money." A lender will want to see that you cannot afford, or soon will not be able to afford your mortgage.
Insolvency – The lender will want to see that you do not have significant liquid assets that would allow you to pay down your mortgage.
This seems simple enough, but it is a complicated process that takes the expertise of experienced professionals. I hold the CDPE® Designation and am ready to identify all possible options and, when possible, assist in the quick execution of a short sale transaction. I have been successfully negotiating and closing short sales for 4 years, saving homeowners from foreclosure. If you have questions or feel you may qualify for a short sale, please contact me for a free consultation. Understanding your options now could mean all the difference in the world. And remember, it is not your fault you are in this situation. You just need to know how to get out.
Picture: Another sweet deal : 3 Bedroom, 2 Bath, Screened Lanai and Private, Vinyl fenced back yard. Immaculate! $155,000 You will have to hurry for this one!
Virtual Tour: http://vt.realbiz360.com/Listing-359649.html
http://www.deesmith.com/ 813-995-2322 Call me.
Monday, May 10, 2010
WHY IS IT BETTER TO BUY A SHORT SALE BEFORE IT BECOMES A FORECLOSURE?
It is so much better to buy a short sale because:
1)you are going to buy a property at below appraised value before it goes into foreclosure,
2)you are helping the economy. A Foreclosure has a very negative impact on the economy in many ways,
3)it helps the looks of our neighborhoods, because foreclosures are usually unkept, and in disrepair,
4)Short sale properties are usually in very good condition. Once it becomes foreclosure, the vandals move in and destroy the property,
5)you are helping a family sell their home who is much in need of your help. In most cases it is a real hardship that has forced the sale. Good karma may come from it,
6)many times you don't have to make the costly repairs needed to get a foreclosure back into shape.
So as you can see Short Sales are a great value.
Picture: 3 Bedrooms, 2 Baths, Wesley Chapel $125,000 wwwDeeSmith.com
Virtual : http://vt.realbiz360.com/MLS-352046.html
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