Archive for May, 2009

It’s a bounce!

All around my town I hear people talking about how we have hit the bottom of this downward economic cycle. We, they say, are on the uphill track now. Really?

I like to be optimistic as much as the next guy, however, have you seen how unemployment is up, there are no new job opportunities being offered, immigration is down, the U.S. budget deficit for this year is up by $89 billion, coming in at $1.84 trillion overall — a massive 12.9 percent of gross domestic product.

Our government is citing the recession, corporate bailouts, and higher costs for social safety-net programs like unemployment insurance. Surprise, Surprise, Surprise!

Spending on government rescues for the financial and automobile industries was also a factor in the higher deficit, said a White House official.

To be considered to be in a upward economic cycle you need to see investor returning to the market and real estate sales to increase. To some it may look like prices are increasing, they’re not.

Fannie Mae moratorium on foreclosures is being lifted this month and you will see more foreclosure coming onto the market. This translates to lower selling prices causing lower fair market prices of most homes.

We haven’t hit the bottom we have just bounced off a resistant level that I think will only be short lived. It’s sad, and one thing that is a good thing to know…this too shall pass. We are all going to be ok. Just not with this short burst.

http://www.StopForeclosureInCalifornia.com

May 11th, 2009  in Foreclosure Information, Short Sales Education No Comments »

U.S. banks race to fill $74.6 billion stress test hole

WASHINGTON (Reuters) – U.S. regulators told top banks on Thursday to raise $74.6 billion to build a capital cushion officials hope will restore faith in financial firms and set a course out of the deepest recession in decades.

May 7th, 2009  in Foreclosure Information, Short Sales Education No Comments »

Facing A Foreclosure? Beware of the "Ostrich Syndrome!"

Facing A Foreclosure? Beware of the “Ostrich Syndrome!”
Prepared By Start Fresh LLC
Disclaimer: This information does not constitute legal advice. Please consult a real estate attorney and/or a CPA to determine it this information is applicable to your particular circumstances.

Are you facing a foreclosure? You’re not alone. On April 16, 2009 RealtyTrac, an online service that lists foreclosure properties throughout the U.S., reported a record 803,489 foreclosure filings in the first quarter of 2009.
The rising unemployment rate in the current economic downturn is fueling the foreclosure firestorm. The surge is expected to continue despite President Obama’s Foreclosure Plan designed to help borrowers avoid foreclosure by providing incentives to lenders to ease restrictions on refinancing for people who owe more on their mortgages than their homes are worth.
If you are among the hundreds of thousands in foreclosure, you may feel desperate, frustrated, angry, depressed, helpless and confused about your options. If you’re like most people, your natural inclination in the face of a crisis is to do nothing – hoping it will pass or go away. It won’t go away! Emulating an ostrich by sticking your head in the sand and doing nothing won’t improve your circumstances. You can avoid the “Ostrich Syndrome” and recover from a financial disaster by taking bold, swift action now. Here’s what you need to do.
Talk to Your Lender
Call your lender (banker) and tell them you are experiencing financial hardship and that you are unable to make your current monthly mortgage payments. Ask your lender for advice and assistance. The lender will be motivated to help because the alternative is for the lender to foreclose and try and sell the house in this recessionary housing market. The lender knows s/he is unlikely to recoup their loss.
In some cases lenders may be willing to renegotiate your mortgage or agree to some kind of loan modification. They may be willing to change the interest rate or change the amortization table (the amount of time you take to pay off the loan) in order to reduce your monthly payments. Other options available to stop foreclosure proceedings include:
Pay the Delinquency and Reinstate the Loan – Under most circumstances, lenders are required to accept payment of the full delinquency and reinstate the loan. Of course, that assumes you are able to secure the funds to repay the debt. For example, some people may be able to refinance their property. Others may cash in 401Ks or sell assets (such as jewelry, stocks, or bonds) to get the funds to pay off the debt. Others may borrow money from relatives. At the time of repayment, the delinquency may include certain legal costs if you are already in foreclosure. Many lenders require certified funds for reinstatement.

Forbearance – This is a fancy word for temporarily delaying your loan payment for a short period of time and then instituting a loan repayment plan. The most common way of resolving a loan default is to work out a plan, which will let you repay part of the delinquency balance each month, along with your regular monthly installment. If you are temporarily unable to meet your monthly mortgage obligation, your holder may extend forbearance by agreeing to suspend payments for a limited period of time until you are able to begin a repayment schedule. In some cases, the lender may simply add the payments that you missed to the principal of your newly modified loan balance.

Private Sale – If you do not believe you will be able to reinstate your loan and cure the default, a private sale of the property will enable you to meet your obligations and receive any equity you may have built up. Although there are exceptions, most private sales result in the seller receiving more than the amount owing on the loan.
Deed in Lieu of Foreclosure – If you will be unable to cure the default, and a private sale does not appear realistic, your lender may consider accepting a deed in lieu of foreclosure. If there are no liens on the property, and your lender agrees to accept a deed, you will have to sign legal documents transferring full ownership of the property to your lender. Be careful! Some credit reporting agencies may still consider this a foreclosure transaction and show it as such on your credit report!
End of part 1

May 4th, 2009  in Foreclosure Information, Short Sales Education No Comments »

Everyone is Different

Everyone is Different!

Brian Tracy say:

“Happiness in life is like a smorgasbord. If 100 people went to a smorgasbord and each put food on their plate in the quantity and mix that each felt would be most pleasing to him, every plate would be different. Even a husband and wife would go up to the smorgasbord and come back with plates that looked completely different. Happiness is the same way. Each person requires a particular combination of those ingredients to feel the very best about himself or herself.”

Do you know your combinations to happiness? I think most of us want the basics…happiness of love, life, and finances. You can have it if you only desire it, strive for it, and know you will get it.

Commit to yourself that you want happiness in your life and then go get it. It’s all up to you.

We all are responsible for our own happiness…no matter what anyone else is doing!

May 3rd, 2009  in Points of Views No Comments »
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