Renewed trust for tough times

Does it feel like trust is one of the major casualties of the economic meltdown of 2008 – followed by the “Great Recession,” the “Jobless Recovery” and now the threat of a “Double Dip Recession?”

Weren’t we assured that home values were destined to go up and up and up?

There have been lots of promises that help is on the way—and lots of warnings of scams and schemes that have only served to confuse the matter. So where’s a homeowner who’s underwater or overleveraged to turn?

Here’s the bottom line: the choices that homeowners make when they feel they are at the end of their rope will have ramifications for years to come on their ability to qualify for credit, their job prospects, their security clearance and their overall finances. When a family’s financial trajectory is rapidly heading in a negative direction, there’s no substitute for the helping hand of a knowledgeable expert who has the integrity, the experience and the training to reverse the course—someone who is tapped into regulatory initiatives and can separate fact from fiction.

It is my mission to serve as a credible source of information and perspective to homeowners who have found themselves in a tough situation and need help sorting through their options. That’s why I sought out the Certified Distressed Property (CDPE) designation—the most renowned and recognized credential in the distressed property field, and it’s why I continue to stay on top of regulatory and industry developments that impact options available to homeowners who are struggling with their current financial situations.

My message to homeowners who do not know where to turn: there is hope. Foreclosure is not inevitable and neither the government nor your bank wants to see that happen. No one expected to find themselves on the brink of foreclosure, but I have worked with countless clients who have managed to turn their financial trajectory around and get on a path of financial recovery.

It CAN be done! And it would be my privilege to help.

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Is a loan modification worth waiting for?

In recent months, I have received many phone calls from homeowners regarding their disappointing loan modification approval. I recently went to a listing appointment and met with a client that had been working with Bank of America on a loan modification.  After two years, they finally received a loan modification in order to keep their home but the results were not what they had anticipated.  Here is a breakdown of the scenario:

1) Property was purchased in 2004 at $625,000 with a loan from (Countrywide Service by Bank of America) at $500,000.

2) Current value of the property is $375,000.

3) Loan modification terms are as follows: first 3 years at a 2% interest rate with a payment of $1,519, year 4 at 3% with a payment of $1,704, year 5 at 4% with a payment of $1,900, and year 6 at 4.875% with 420 payments of $2,079.

4) This loan is a 40 year mortgage which is also asking for a balloon payment of $141,194.  Meaning, at the end of 40 years they would have to pay $141,194 after already paying $971,115 in interest.

5) Total costs would be $1,112,309 on a property that is worth $375,000.  You would be paying 3 times what the property is worth.

This is a common loan modification which banks are currently giving out to the consumer. My question to you is, the payments look affordable, but is the cost of the property worth doing a loan modification? As a distressed property solutions expert, I often tell clients to make sure that they a wise business decision on their property, instead of trying to save a dead investment.  For more information on making the right decision visit us at www.ShortSales4RealEstate.com

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Bank Of America HAMP Results 21%

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Loan Modification vs. Short Sale

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Do you qualify for a loan modification?

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The 3 Things You Need to Know About Wachovia

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3 Things About Short Sales with Chase Manhattan Bank

This is why short sales with Chase almost never go through.

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Cheapest Home in San Diego

I couldn’t believe it when I saw this listing. 89’000 for a detached home in San Diego? Check out this listing for yourself.

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