loan modification

Mortgage Debt Forgiveness Act May Expire in 2013


Loan modifications, short sales and foreclosures offer homeowners who are in distressed properties a few options to move past a difficult financial situation.

However, the right option isn’t always clear, especially in the market we find ourselves in.

A loan modification can act as a bridge for a homeowner who is trying to get out from under an overwhelming mortgage payment and also avoid selling or vacating the property.

For others, foreclosure was unfortunately the only option, especially when the housing bubble burst for millions of homeowners in 2007. 5 years ago, Real Estate Professionals who specialized in short sales were sometimes hard to find and most loan modification options hadn’t even been dreamed up yet by banks and the Federal government. Homes going into foreclosure so quickly meant that many families were unwittingly subjecting themselves to huge tax bills. The reason being, that before ‘07, any mortgage debt not paid by the time a home was repossessed by the servicing bank, was counted as income.

For example, a family with a combined income of $120,000 who had a $400,000 debt left on a house they walked away from now had over $500,000 in potentially taxable income and had been bumped to a much higher tax bracket in the process. Many were shocked to when Uncle Sam hit them with a jaw dropping tax bill, post forclosure.

The Mortgage Debt Relief Act of 2007 changed all that and forgave that tax burden completely, but now it’s in jeopardy of expiring by the end of 2012. This could potentially affect short sellers as well. And given the fact that the length of time required to complete a short sale started today could easily extend in to 2013, the options for underwater borrowers looking to unload their mal-investment are now very muddled.

Remember, everyone’s tax situation is different, so it’s imperative to contact a tax professional if you are weighing your options for a short sale or foreclosure that could extend into 2013. And most importantly, contact a realtor for help with your short sale, as the process varies by bank and by loan disposition.

There’s no telling whether the Mortgage Debt Relief Act will expire, but the fact that it’s a possibility is a game changer in the short sale market right now.

as written by Ross Trumble for Grayhawk Real Estate Team

Securitization audits are helping win against foreclosure in court!

Attorneys fighting foreclosure in civil or bankrutpcy court often hire FPG-USA to investigate the referenced foreclosure documentation and investigate the legitimacy of claims being made by the party seeking to foreclose. The borrower(s) took a loan and are in default. A wrongful foreclosure can have disastrous results to borrower(s) in the future. The borrower’s attorney orders outside third party expert investigation to answer four simple questions.

Has the party seeking to foreclose demonstrated true beneficial ownership?
Have claims of financial interest been fully disclosed and represented truthfully?
Have all beneficial owners and parties been voluntarily disclosed?
Have all material facts, documents and agreements that govern the transaction been disclosed?

If the answer to any of the above questions is “no” then FPG-USA will perform research and investigation. Report findings are based on facts and documentation which should not be objectionable because they pertain to material issues and the documentation upon which they rely is of a source considered credible and reliable. Experts stand ready to back up the findings in court.

To win means a sustainable loan modification, acceptance of a short sale, or walk away from the property with no deficiency judgment. Lender’s know the difference between reporting as evidence from recognized experts and purely informational reporting from anyone, the later not being worth the paper it is written on.

Contact “The RightPI” if you are in need of Securitization Audit Services or Investigation into who owns the note on your property.



Mortgage Foreclosure: 6 Alternatives to Consider in 2012

“RealtyTrac, a group that monitors the foreclosure market, speculates that as many as 1 million foreclosure actions that were slated for 2011 will be bumped to 2012. The reason for the holdup is due in part to the dismal housing market as well as persistent foreclosure abuses on the part of the country’s largest banks.” (A Glut of Foreclosures to Flood the Market in 2012 by 

With foreclosures expected to grow and an economy that continues to stagnate, 2012 promises to be another difficult year for homeowners. If you’re one of the one million homeowners in danger of losing their home next year, there’s no time like the present to begin looking at ways to avoid a mortgage foreclosure. From lawyers on JD Supra, here are six alternatives you should consider: 

1. Sell your house

“A short sale occurs when the homeowner obtains the lender’s permission to sell the home for less than what is owed to the lender. This leaves the lender ‘short’ on what is owed. Typically a lender agrees to a short sell because a moderate loss is better than the costs involved with a foreclosure action. A homeowner must beware, however, that a short sale does not eliminate the borrower’s liability for the deficiency, which is the remaining balance left on the loan after the home is sold. In order for the deficiency to be written-off by the lender, the homeowner must negotiate it prior to the short sale.” (Facing Foreclosure? Consider a Short Sale by Dan Dodds) 

2. Renegotiate your mortgage with the lender

“You have the right to negotiate a mortgage modification directly with your lender. You should not have to go through an intermediary to negotiate your mortgage. Instead, go directly to your lender… Nothing is guaranteed; it all depends on your negotiation with your lender.” (Home Loan Modification Tips by Tampa Bay Bankruptcy Center, P.A.) 

3. Apply for a loan modification program

“HAMP provides eligible borrowers with a chance to modify their first / primary mortgage loans to make them more affordable on a monthly basis… Qualified borrowers who apply and are able to make it through the challenging process should be rewarded by one or more of the following: an interest rate reduction, a loan term extension, a principal forbearance and/or a reduction in the actual principal of the loan (extremely rare).” (A Summary of Government Mortgage Loan Relief Programs by Jason McGrath) 

4. Give your house back 

“Under [the deed-in-lieu of foreclosure] scenario, a borrower deeds the property to the lender in satisfaction of the secured debt. Essentially, the borrower and lender work out an agreement to turn over the property to the lender. There is no obligation on the part of lenders to accept the property in satisfaction of the loan amount.” (Should I Stay or Should I Go? Options for Underwater Homeowners in California by Tubman Law Group) 

5. File for bankruptcy

“A Chapter 13 bankruptcy will stop the foreclosure sale that is set on your home and allow you to put together a plan whereby you can pay the missed payments. Further, you will be given three to five years to catch up on the missed payments. A Chapter 13 plan can make an impossible situation like getting all of your missed payments caught up at once into a more manageable situation where you pay a portion of the missed payment back over time.” (Bankruptcy & Foreclosure: Dealing with Your Home Through Bankruptcy by John Skiba) 

6. Walk away

“A strategic default occurs when a homeowner who can afford the mortgage payments decides to simply stop making them, forcing the lender to foreclose on the home. In most cases, people who pursue a strategic default have done the math and determined that it no longer makes financial sense to own the home.” (Strategic Defaults: Making a Calculated Decision to Lose Your Home to Foreclosure by 


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What Makes a Loan Modification and a Speedy On the market Pesky Different?

The undeniable factor that makes the two options, when facing foreclosure, different is the way each transaction is conducted. With short sales, the agent or specialist will negotiate with your lender and praxis on determination probable buyers in relation with the property. The homeowner is effectual to settle the financial obligation by working on the house for much less compared to what is required by the lender as earlier agreed. However, there are certain California short sale laws, which must apply before and after the property is sold.

With the loan modification, the homeowner simply requests the lender to amend deft of the terms of the loan. This does not give indication of that the two parties are forming a new advance. The existing mortgage is only modified headed for endure the borrower to afford paying the chronic measurement. The modifications can be a reduction vestibule interest rates, monthly payments, bar an extension in relation to the payment terms. Bear inward mind that, when you presuppose California loan modification, superego does not mean that you will request vice a reduction modish the hero the story you owe. She only allows you to pay for in affordable amounts and possibly within an extended period.

Alter must remember that impignorate modifications are usually ideal in order to homeowners who are behind payments due up to gouging financial strain. They are conscious as a ungracious term or temporary step to avoid foreclosure. This is why formerly a borrower takes up a mortgage modification, his\yours truly accessible and immediate financial situation must prevail thoroughly quantified to ensure that the issue is only for a short period.

You also prerequirement in order to make a decision quick since superior financiers will not a speck agree provisionally ego to address vice both options simultaneously. Both transactions can net profit time to continue stamped or disdained very much aesthetic form tested you have the right knowledge hereinabove you initiate any given alternate choice. In unconditionally cases, the California short traffic is pursued in keeping with bountiful homeowners who are no longer in a financial position to continue paying monthly payments no matter how small you are. Observably, the California short sale is an ideal option if you just indigence to settle your outstanding debt and save your worth.

At any rate, other self required also remember that there are tactful California uneven sale laws, which may give the lender the right to prescribe the remaining steadiness. Anew, this deficiency balance was waivered by the California short trafficking laws. This means that each one completing a short sale in this state will not go on required to dismissal wage any deficiency balances by the lender in the future.

If you do not live in this state yet not a to izzard the California patchy transference laws equate. It is up in consideration of herself for pattern sure that your awe letter study free you out of all financial obligations in the future. This is why him must consider professional services when performing these transactions. Your mortgage broker or figurehead will announce you informed news medium at how you can be released from the debt once and for all. Facing foreclosure is not an easy bent a lot if there is something that can persist tired to death, carry through it when you still have the time.

Took two years for loan modification. New mortgage = a whopping $11.77 less than before!!

Thanks for nothing!  More of an insult than anything. Still trying hard to keep up the payments.

I am one of the lucky ones that still have a job. In my neighborhood, there are over 50 homes on the market or going into foreclosure. So nice of the banks to help us out after “we, the people” bailed them out with our tax dollars.   San Antonio, TX

Loan Modification- Case Study of Amanda

Amanda was a professional with a family owning a home upwards of $1,000,000 in Long Island. After owning the home for a year she took a loan on the increased value to renovate (about 29 months ago).

Amanda has a salary of over $250,000 and is the only income earner in her family. She called to ask about Debt Settlement after talking with a Debt Settlement Company that called her.

She owed over $175,000.
Was barely covering her mortgage and was having difficulty paying her credit card debt. Her interest rates on the credit card debt were hiked up because her balance was very high if not at the limits.

The Debt Settlement Company most likely found her on a list the credit reporting agencies sold seeking out high debt individuals. They told her that her credit would not be ruined (even though she would have to stop paying her debt) and she would probably not have to pay taxes on her savings. She would have to put money into a bank account through them until she saved up enough money for the Settlement Company to pay the creditors 40% of what she owed. They would take their fee first and when she had enough savings they would begin to negotiate her debt.

Most of this was false. If you don’t pay your bills on time you will have late payments on your credit report END OF STORY.

She really needed to look into getting a loan modification first since the amount of her mortgage was, most likely, more than her property value. If she had many settled accounts with late payments she may not have qualified for the loan mod.

We referred Amanda to an Attorney to discuss her mortgage situation and advised her against debt settlement until she examined the loan mod option first. She also needed to find out what the tax ramification would be if she had $100,000 + added to her $250,000 income after her credit card debt was settled for less.

Los Angeles Short Sale Myth: If I Sell For More, Then I Won’t Have A Deficiency

Los Angeles CA– Some sellers think that if they sell their house for more money, then they are less likely to have a deficiency. Let me explain why that is not true.

Get our Step By Step Loan Modification Guide by clicking here.

Another realtor recently told us about a short sale they were involved in. This realtor was representing the buyers purchasing the house.

The short sale negotiation company the sellers were using told the sellers that unless the house sold for $295,000, then the sellers would have a short sale deficiency.

Because of this, the sellers wouldn’t accept the buyer’s offer. I told them that couldn’t be true. Here is how short sale negotiations work.
A lender is losing money on a short sale. In most cases, they are losing a lot of money.

Losing just a little bit more money is not going to cause them to change their mind on whether or not they should pursue a deficiency.

A sales price that is $17,000 lower is trivial when compared to a $100,000 loss. We have negotiated hundreds of short sales.

In most cases, the lender is either pursuing a deficiency or not pursuing one. A slightly higher sales price won’t change their mind either way.

They will either accept the short sale offer on the table, or counter at a price they will accept. They will pursue a deficiency even if the property sells for more money.

Thinking about a loan modification? Our loan modification kit will show you how to reduce your mortgage payment, keep your home, and get back on your feet. Click here to request a copy.

Thinking about a short sale? I can help you short sale your property so you can move on with a fresh start. Click here 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 (310) 464-1749

Thanks for reading this, Sheldon Thomas.

Copyright 2011 Advocate Realty Group Inc. All Rights Reserved.

This information on Los Angeles Short Sale Myth: If I Sell For More, Then I Won’t Have A Deficiency is provided as a courtesy to our viewers to help them make informed decisions.

DIY Loan Modification Kit To Be Released

We will soon be releasing a do it yourself loan modification book that is written by a licensed California real estate attorney. I am finishing the publication that will include an explanation of foreclosure and loan modification, as well as explanations of the recent governmental programs instituted by the Obama administration and US Congress. Although it is best to consult with a licensed real estate attorney in the state where the property is located, this book will give you general guidance as to how to try to modify your loan and explain your options.

Many homeowners who come to me haven’t even tried to contact their lender or have given up too easily. The worst thing you can do is nothing! Our firm handles loan modifications, deed in lieu of foreclosure, short sales, and bankruptcy; however, for the homeowner who chooses not to hire an attorney, this will assist in trying to get it done on your own.

Anyone interested in the book can contact us by email so that we can send you more info when the book is released.

Chris Barsness, Esq.

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Fend Off Lenders with a Reliable Bankruptcy Attorney in the Area

When dealing with loan modifications, there can be many things a consumer should know. The loan process itself can be extremely complicated, especially if it is a first time experience. Lenders and mortgage companies will not usually work to the benefit of the client, and this is why it is important to rely on the best bankruptcy attorney in the area to best protect you.

Know Who to Trust When It Matters Most

Before employing just any old lawyer you find in the Yellow Pages or online, do your research. Rely on the best bankruptcy attorney in your area, one you can trust to be there when you need them the most. Experience matters, as you want an attorney fighting on your side that has been there before. An experienced attorney will utilize that experience to get you the decision and results you deserve, granting you complete peace of mind when it comes to your loan and mortgage needs. 

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Know What Your Lender is After

It is generally not in your lender’s favor to lower your monthly payment or your interest rate, and you should be aware of this before you begin this process. Know what your lender is after, and know that lenders will oftentimes try to take advantage of you or stall the process indefinitely. This is another reason why is it necessary to employ a reliable bankruptcy lawyer in your corner. A reputable attorney will know all the tricks and techniques a mortgage lender will have at their disposal, and can best devise a plan of action to battle them. The best bankruptcy attorney in your area will fight on your side and battle mortgage lenders today.

Know What You Are in For

People are taking drastic steps these days to keep a roof over their heads. Loan modification is just one of these many steps. Like any bankruptcy process, however, the process itself can be long and arduous, and should not be handled alone. There are simply too many rules and regulations for someone inexperienced in the area to keep track of. A knowledge and experienced attorney can better explain these rules and guidelines to you, walking you through the process and standing by your side every step of the way. 

For more information please visit:
Walking Away!

I found this on a newsletter I subscribe to (Mr. and thought the debate was quite compelling. In today’s volatile economic climate many people are faced with a major decision to make regarding their mortgage and that is to walk away or try to work it out.

What would you do if you were in their shoes?

Obama HAM program failure

In a report out last week, the number of final modifications completed by the major banks under the main Obama HAM program are ridiculous. Some 31,382 homeowners have entered into final modifications through the end of November under that specific program. That is out of millions of eligible homeowners, of which 759,000 have entered into trial plans. Here is a breakdown:

According to the report, through the end of November, J.P. Morgan Chase & Co. /quotes/comstock/13*!jpm/quotes/nls/jpm (JPM 41.32, +0.46, +1.13%) has 143,027 three-month trial modifications started under the program. It has made 4,302 modifications permanent. Wells Fargo Bank /quotes/comstock/13*!wfc/quotes/nls/wfc (WFC 25.81, +0.15, +0.57%) has 104,808 trial modifications started and 3,537 permanent modifications using the program.

But Bank of America Corp. /quotes/comstock/13*!bac/quotes/nls/bac (BAC 15.31, +0.12, +0.79%) has started 158,462 three month trial modifications with the program and has made just 98 permanent. Citigroup Inc. /quotes/comstock/13*!c/quotes/nls/c (C 3.47, -0.09, -2.53%) has started 103,478 three-month modifications under the plan. Of those only 271 have become permanent.

There are other programs that have resulted in modification for homeowners, but clearly the banks are more willing to foreclose on properties than modify loans. Most major banks have announced in the last week their intent or completion of paying back their TARP bailout money. They obviously want to be out from under public scrutiny and restrictions on payment of excessive salaries and bonuses.

The president met with 10 major bank CEO’s this week to push several issues, including speeding up modifications, but we will see if it actually makes any difference.

Chris Barsness, Esq.

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How much can I save by doing a loan modification?

Homeowners’ all across the nation are overwhelmed with their mortgage payments. Many of them have lost their homes altogether. Those homeowners’ who have managed to hold on to their investments should consider a mortgage loan modification. Loan modifications have several advantages. If you are considering a loan modification then you should contact an experienced loan modification services provider.