By: Joshua C Anderson
Published: Tuesday, 2 Aug 2011
Afshar Properties Chief Correspondent
Over the past few years the housing market has taken a turn for the worst, even in affluent communities such as Beverly Hills, Bel Air and Malibu, to name a few. Homeowners are left with few options once their property value declines. In some cases, the homes are owned free and clear, but in most they carry high ticket mortgages that seem to balloon as the market declines. If a home goes into foreclosure and sells at auction, the neighborhood will be adversely affected. Often times when the property is underwater, a homeowner can choose to short sale it as long as there is a legitimate hardship, and in 90 percent of the cases, there are.
Los Angeles based Housing Assist of America knows the short sale market better than most. With over 200+ short sales under their belt and one of the biggest names in real estate backing them, they are a short sale powerhouse. Coldwell Banker brought them on board in 2011 and hasn’t looked back since. The secret to their success lies in their ability to negotiate effectively with hardball lenders, an attribute that separates Housing Assist from the distressed property expert.
Overall the short sale is a proven method to alleviate debt and get a fresh start, no matter what the property is worth or how much you owe. It is always advantageous to the seller in every aspect, however in some cases there could be tax ramifications. Whether it’s a 250k home in a modest community or 1.5 million dollar villa in Beverly Hills, the banks just want to cut there losses and move on, The process is exactly the same, but keep in mind no two short sales are alike. Avoiding foreclosure at all costs should be a top priority to sellers. And recent research has shown that lenders are approving more and more of these complex transactions. As of April 2011, bank of America has completed well over 23,500 short sales nationwide, with Wells Fargo and GMAC at 13,500 apiece and counting. JP Morgan Chase has even offered some owners as much as $30,000 as an incentive to short sale their property.
If you owe more on your property than its worth and it’s a financial burden to make the payment, the answer should be quite clear, short sale
Joshua Anderson
Wednesday, August 3, 2011
Tuesday, May 24, 2011
Wednesday, May 11, 2011
Underwater Properties Continue to Plunge
Published: Tuesday, May 10 2011 | 3:00 PM PT
By: Joshua C Anderson
Colwell Banker/Housing Assist Chief Correspondent
Los Angeles- In a recent statement released by Zillow.com, 28.4 percent of single family residences are underwater, in other words they owe more on their home than it is actually worth, and in most cases that means hundreds of thousands of dollars. Large metropolitan cities like Los Angeles, Las Vegas, Atlanta and Chicago, to name a few, have nearly 50 percent of homes underwater, and in some cities, its worse. Owning an underwater mortgage is just the tip of the iceberg, once in that position it’s very likely that a number of other problems will occur that may eventually lead to foreclosure. These problems can range from loss of income, illness, death and divorce, all of which can certainly cause financial constraints.
The original HAMP or Home Affordable Modification Program was regarded by industry experts as a failure for a number of reasons. One of the most significant aspects of the HAMP failure was that already troubled borrowers were once again set up for failure, once they defaulted on their trial payment; foreclosure proceedings began almost immediately, further deterring their situation. Another key factor was that the guidelines became too stringent for homeowners to qualify for. As a result, more than 80% of those who applied or even qualified had eventually either been denied or foreclosed.
When faced with such a dire situation, most homeowners decided they needed to make a change, for some however that meant walking away. A recent study showed that homeowners who decided to short sale rather than a foreclosure were more likely to be back on track financially within a two year period. The ramifications to their credit and livelihood were greatly reduced when they short sold the property. The only down side to short selling is that the homeowner needs to be certain that the company or realtor representing them has adequate experience. Many fly by night realtors claim to have the credentials to complete a short sale, however after months of unsuccessful negotiations, it becomes increasingly clear that they were in over their heads.
California based Housing Assist of America, www.housingassist.com, has recently teamed up with Real Estate giant Coldwell Banker in an effort to streamline the short sale process for both agents and perspective clients and the results are phenomenal, 92 percent of the clients who apply and stay cooperative throughout the process end up with favorable results. Lenders are now encouraging homeowners who have exhausted all of their options to opt for the short sale.
By: Joshua C Anderson
Colwell Banker/Housing Assist Chief Correspondent
Los Angeles- In a recent statement released by Zillow.com, 28.4 percent of single family residences are underwater, in other words they owe more on their home than it is actually worth, and in most cases that means hundreds of thousands of dollars. Large metropolitan cities like Los Angeles, Las Vegas, Atlanta and Chicago, to name a few, have nearly 50 percent of homes underwater, and in some cities, its worse. Owning an underwater mortgage is just the tip of the iceberg, once in that position it’s very likely that a number of other problems will occur that may eventually lead to foreclosure. These problems can range from loss of income, illness, death and divorce, all of which can certainly cause financial constraints.
The original HAMP or Home Affordable Modification Program was regarded by industry experts as a failure for a number of reasons. One of the most significant aspects of the HAMP failure was that already troubled borrowers were once again set up for failure, once they defaulted on their trial payment; foreclosure proceedings began almost immediately, further deterring their situation. Another key factor was that the guidelines became too stringent for homeowners to qualify for. As a result, more than 80% of those who applied or even qualified had eventually either been denied or foreclosed.
When faced with such a dire situation, most homeowners decided they needed to make a change, for some however that meant walking away. A recent study showed that homeowners who decided to short sale rather than a foreclosure were more likely to be back on track financially within a two year period. The ramifications to their credit and livelihood were greatly reduced when they short sold the property. The only down side to short selling is that the homeowner needs to be certain that the company or realtor representing them has adequate experience. Many fly by night realtors claim to have the credentials to complete a short sale, however after months of unsuccessful negotiations, it becomes increasingly clear that they were in over their heads.
California based Housing Assist of America, www.housingassist.com, has recently teamed up with Real Estate giant Coldwell Banker in an effort to streamline the short sale process for both agents and perspective clients and the results are phenomenal, 92 percent of the clients who apply and stay cooperative throughout the process end up with favorable results. Lenders are now encouraging homeowners who have exhausted all of their options to opt for the short sale.
Wednesday, February 16, 2011
The Truth Behind the Real Estate Market Recovery
Joshua Anderson, Lexington Realty Correspondent, Los Angeles Ca
Monday, Jan 31st 2011
Los Angeles- While over 100,000 delinquent homeowners flocked to the NACA convention over the past week to get their mortgages modified, only about 30 percent of them were successful. The growing number of foreclosures in California is increasing dramatically and there are absolutely no signs of a slowdown. Disgruntled homeowners left the convention looking as hopeless as they did upon entering. What lenders are not disclosing to the public is that their efforts to foreclose have been stepped up; misleading homeowners who still believe the mortgage modification program will benefit them. One woman left the convention stating that last time they were in town, about 90 days ago, they told her she would qualify the next time around, only to find out she was denied yet again.
Amidst the crisis the number of homeowners who are “underwater” has surged to 27 percent, up from 23 percent before the fourth quarter of 2010. The situation is dire and experts predict that it will only get worse. There are still a few homeowners who believe a temporary modification will solve the problem, but as the economy continues to decline, that possibility will soon fade. The mortgage foreclosure moratorium has spotted several loans with faulty paperwork, but this will not solve any immediate problems and those who are delinquent will remain on the chopping block. The overall situation could potentially regain itself within the next five years but the countries deficit puts that figure at risk. “Home value trends in the fourth quarter remained grim, but the good news is that these declines, while painful in the short-term, mean we’re getting closer to the bottom,” said Zillow’s chief economist, Dr. Stan Humphries.
Across the nation the foreclosure figures are devastating. In Albuquerque , New Mexico, one in 46 homes are being foreclosed on, which is an increase, in 2010 it was at 60.32%.
Other hard hit cities include Spartanburg, S.C., Myrtle Beach, S.C, and Savannah, Ga. Of course the larger metropolitan cities have been devastated as well with the more affluent communities like Bel Air and Beverly Hills remaining stable.
In a small effort to stabilize the housing market the Obama administration released information regarding the reform of Fannie Mae and Freddie Mac. The exact details have yet to be released but the majority of the information was in regards to the government greatly reducing its role in the mortgage market. The Republicans have made it clear that they would like to accelerate this plan; however experts have estimated at least five years. There are reports that Fannie, Freddie and FHA loan limits will reduce from $729,750 down to $625,000. There is nothing solidified as of yet but these may be some of the changes that will take place in the near future.
In lieu of the deplorable mortgage crisis there is one short term solution that will benefit everyone in the long run, short sales. The process in which a lender accepts less than what’s owed on the mortgage and generally releases the homeowner of liability upon the closing of the short sale. The Home affordable foreclosure alternative or simply HAFA, is the latest in programs that benefit the homeowner with a $3,500 relocation assistance fee. Housing assist of America, a Los Angeles based firm handles these short sales in bulk and says that they have a solid system that works and it procures favorable results for all parties involved. Their site www.housingassist.com provides an in depth look into what the actual approvals look like from various lenders including BofA & Chase.
The problematic mortgage market will continue to falter as the years come, but the bottom may also be getting closer, this will eventually lead to a full recovery. But there is a lot of work that has to be done, and not just by the banks.
Monday, Jan 31st 2011
Los Angeles- While over 100,000 delinquent homeowners flocked to the NACA convention over the past week to get their mortgages modified, only about 30 percent of them were successful. The growing number of foreclosures in California is increasing dramatically and there are absolutely no signs of a slowdown. Disgruntled homeowners left the convention looking as hopeless as they did upon entering. What lenders are not disclosing to the public is that their efforts to foreclose have been stepped up; misleading homeowners who still believe the mortgage modification program will benefit them. One woman left the convention stating that last time they were in town, about 90 days ago, they told her she would qualify the next time around, only to find out she was denied yet again.
Amidst the crisis the number of homeowners who are “underwater” has surged to 27 percent, up from 23 percent before the fourth quarter of 2010. The situation is dire and experts predict that it will only get worse. There are still a few homeowners who believe a temporary modification will solve the problem, but as the economy continues to decline, that possibility will soon fade. The mortgage foreclosure moratorium has spotted several loans with faulty paperwork, but this will not solve any immediate problems and those who are delinquent will remain on the chopping block. The overall situation could potentially regain itself within the next five years but the countries deficit puts that figure at risk. “Home value trends in the fourth quarter remained grim, but the good news is that these declines, while painful in the short-term, mean we’re getting closer to the bottom,” said Zillow’s chief economist, Dr. Stan Humphries.
Across the nation the foreclosure figures are devastating. In Albuquerque , New Mexico, one in 46 homes are being foreclosed on, which is an increase, in 2010 it was at 60.32%.
Other hard hit cities include Spartanburg, S.C., Myrtle Beach, S.C, and Savannah, Ga. Of course the larger metropolitan cities have been devastated as well with the more affluent communities like Bel Air and Beverly Hills remaining stable.
In a small effort to stabilize the housing market the Obama administration released information regarding the reform of Fannie Mae and Freddie Mac. The exact details have yet to be released but the majority of the information was in regards to the government greatly reducing its role in the mortgage market. The Republicans have made it clear that they would like to accelerate this plan; however experts have estimated at least five years. There are reports that Fannie, Freddie and FHA loan limits will reduce from $729,750 down to $625,000. There is nothing solidified as of yet but these may be some of the changes that will take place in the near future.
In lieu of the deplorable mortgage crisis there is one short term solution that will benefit everyone in the long run, short sales. The process in which a lender accepts less than what’s owed on the mortgage and generally releases the homeowner of liability upon the closing of the short sale. The Home affordable foreclosure alternative or simply HAFA, is the latest in programs that benefit the homeowner with a $3,500 relocation assistance fee. Housing assist of America, a Los Angeles based firm handles these short sales in bulk and says that they have a solid system that works and it procures favorable results for all parties involved. Their site www.housingassist.com provides an in depth look into what the actual approvals look like from various lenders including BofA & Chase.
The problematic mortgage market will continue to falter as the years come, but the bottom may also be getting closer, this will eventually lead to a full recovery. But there is a lot of work that has to be done, and not just by the banks.
Wednesday, December 1, 2010
Obama Advocates Foreclosures
Obama Advocates Foreclosures
By Joshua C Anderson, Lexington Realty Correspondent November 14, 2010 3:39 PM PT
Los Angeles—The housing market has been jolted by several failed attempts to recover and the only solution at this point, seems to destroy and rebuild.
In the midst of the month long foreclosure moratorium, harsh decisions had to be made. Obama administration officials stated that all lending and servicing institutions needed to review there foreclosure policies and procedures, this however did not result in a mass of homeowners getting out of trouble. The officials made it clear that they did not support the moratorium for several reasons. One main point being that the housing market wouldn’t return to normal without foreclosures.
A stable market in the future does not come without consequences. The continuation of foreclosures will not only hurt the housing market, but it will also have an adverse affect on the overall economy. The Mortgage modification program was supposed to lower homeowner’s monthly payments by 31%. The program was a complete failure and many homeowners have been misinformed. Laurie Goodman of Amherst Securities said in a statement, “What they have now realized is there are a lot of borrowers who can’t be saved and have to be moved through the foreclosure process.”
This will be a hard fact to address to the American people. There will be a lot of animosity and many will feel left out. There are however, alternative options to foreclosure. The most popular and less damaging is the short sale.
Southern California based Housing Assist of America has made quite an impact on the short sale market. They are among the nation’s best negotiators and have over a 90% percent success rate. Typically in a short sale the lender will accept less than what you owe on the property and in most cases forgive the left over balance. The consequences are significantly less detrimental to the homeowner’s credit and financial situation than that in a foreclosure. Housing Assist of America has recently made an alliance with tax powerhouse H&R Block. Together, they educate at risk homeowners on short sales and tax ramifications. There scheduled to host a free seminar next week in Culver City, a hard hit suburb of Los Angeles. As the foreclosures in the nation increase so do the opportunities for scammers. When the loan modification wave hit, several fly by night firms starting collection retainer fees from homeowners, only to yield no results. Other signs to watch out for include companies that promise results and charge an upfront fee. Banks do not charge there clients to modify or short sale there homes.
http://shortsalesavings.com/wp-content/themes/flexsqueeze/images/foreclosure-home-auction.jpg
In this vulnerable time it’s important to be vigilant to what your options are. The government has made it clear that foreclosures will continue and everyone who falls into that category will inevitably fall into it, one way or the other. From a homeowner’s perspective, the best option is to accept the demise and seek out the best exit strategy. For those who are still holding on to hope or speculation, this message from the top should clearly define the future housing forecast.
“As we near the end of 2010, the housing market remains fragile, and has recently come under renewed pressure from slowing economic growth, weaker employment and foreclosure uncertainties, We believe that it will be a considerable time until the housing market has a sustained recovery.” A chilling statement from Freddie (FMCC) Mac CEO, Charles Haldeman.
By Joshua C Anderson, Lexington Realty Correspondent November 14, 2010 3:39 PM PT
Los Angeles—The housing market has been jolted by several failed attempts to recover and the only solution at this point, seems to destroy and rebuild.
In the midst of the month long foreclosure moratorium, harsh decisions had to be made. Obama administration officials stated that all lending and servicing institutions needed to review there foreclosure policies and procedures, this however did not result in a mass of homeowners getting out of trouble. The officials made it clear that they did not support the moratorium for several reasons. One main point being that the housing market wouldn’t return to normal without foreclosures.
A stable market in the future does not come without consequences. The continuation of foreclosures will not only hurt the housing market, but it will also have an adverse affect on the overall economy. The Mortgage modification program was supposed to lower homeowner’s monthly payments by 31%. The program was a complete failure and many homeowners have been misinformed. Laurie Goodman of Amherst Securities said in a statement, “What they have now realized is there are a lot of borrowers who can’t be saved and have to be moved through the foreclosure process.”
This will be a hard fact to address to the American people. There will be a lot of animosity and many will feel left out. There are however, alternative options to foreclosure. The most popular and less damaging is the short sale.
Southern California based Housing Assist of America has made quite an impact on the short sale market. They are among the nation’s best negotiators and have over a 90% percent success rate. Typically in a short sale the lender will accept less than what you owe on the property and in most cases forgive the left over balance. The consequences are significantly less detrimental to the homeowner’s credit and financial situation than that in a foreclosure. Housing Assist of America has recently made an alliance with tax powerhouse H&R Block. Together, they educate at risk homeowners on short sales and tax ramifications. There scheduled to host a free seminar next week in Culver City, a hard hit suburb of Los Angeles. As the foreclosures in the nation increase so do the opportunities for scammers. When the loan modification wave hit, several fly by night firms starting collection retainer fees from homeowners, only to yield no results. Other signs to watch out for include companies that promise results and charge an upfront fee. Banks do not charge there clients to modify or short sale there homes.
http://shortsalesavings.com/wp-content/themes/flexsqueeze/images/foreclosure-home-auction.jpg
In this vulnerable time it’s important to be vigilant to what your options are. The government has made it clear that foreclosures will continue and everyone who falls into that category will inevitably fall into it, one way or the other. From a homeowner’s perspective, the best option is to accept the demise and seek out the best exit strategy. For those who are still holding on to hope or speculation, this message from the top should clearly define the future housing forecast.
“As we near the end of 2010, the housing market remains fragile, and has recently come under renewed pressure from slowing economic growth, weaker employment and foreclosure uncertainties, We believe that it will be a considerable time until the housing market has a sustained recovery.” A chilling statement from Freddie (FMCC) Mac CEO, Charles Haldeman.
Wednesday, October 20, 2010
What You Need To Know About the Foreclosure Moratorium
By Joshua C Anderson, Lexington Realty correspondent. October 19, 2010
Los Angeles (Lexington Realty) – - In the recent weeks all of the major lenders and loan servicers have all followed the same trend of halting there foreclosures. To a delinquent homeowner that may sound like the miracle they were praying for. However, the situation is much more complex than they ever imagined.
What the foreclosure moratorium is in a conspectus is merely a break for the servicers to review documentation that may have been overlooked in the overwhelming housing crisis. Many banks will go back and scrutinize the terms and conditions of the delinquent loans in an effort to help homeowners who may have been victims of fraud. The problem that persists is that many homeowners were not victims at all. First time borrowers knew they were getting into a home they could never afford, and in addition to housing prices dramatically dropping, many of them lost there jobs and were unable to pay there mortgages. The lenders will not excuse past due payments because they simply could not afford it. After the bail out of several financial institutions, lenders were required by the government to stimulate the economy by restructuring loans. Within weeks, even homeowners who were current on payments were applying for modifications. Unfortunately, the trend did not last long and would leave a trail of foreclosure in its midst.
The modification boom in many opinions was a disaster. Recent reports from the Obama administration stated that 60% of modified homeowners failed the program within the first six months, and millions of others never had the chance. In the climax of the modification boom, several third party law firms and company’s targeted homeowners for what little money they had left, and were charging anywhere from $1,500-$5,000 for a retainer fee that yielded no results. Fast forward to the present day, and we have record high foreclosures and unemployment crippling the housing market.
The modification program was indeed a failure and there are very few success stories. The only positive outcome of the moratorium is that a few lucky homeowners will get modified if they can afford it. Many at risk homeowners do not want to come to terms with the fact that even with a temporary mod, they will foreclose. What homeowners need to consider now is cutting there losses and salvaging what they have left of there credit.
Much like the attempt to help delinquent borrowers by modification, there is a new trend on the block that so far, has proven to be the best exit strategy in the housing crisis. Homeowners who owe more than there homes are worth, now have the option to Short Sale. There are not many qualifying factors as there were with the modifications. If you are delinquent, unemployed, and underwater or simply down on your luck financially, a short sale is the best solution. A homeowner can be free and clear credit wise, within 14 months of the short sale and if your loan is a non recourse the lender by law has to forgive you of any deficiency. There is also no cost required to facilitate the transaction. Homeowners are encouraged to go with a well established short sale firm rather than a traditional Realtor because they often lack the experience to complete the sale successfully.
Within 14 months of the short sale, a homeowner can be eligible to purchase a new property and take advantage of the low prices that are flooding the market today and start from scratch.
The moratorium will prove to be just another wave of hope that will surpass many of the homeowners who need the help. Only 1/3 of the at risk foreclosure candidates were modified this year and the rest will likely foreclose.www.Housingassist.com is a well established short sale company who helps homeowners in those situations and counsels them through and even after the process is complete. They also hold seminars in different cities to educate homeowners on the subject.
With the foreclosure halt coming to an end, many will be right back where they were before it begun. It is the responsibility of the homeowner to asses there situation and make choices that will benefit them in the future.
Los Angeles (Lexington Realty) – - In the recent weeks all of the major lenders and loan servicers have all followed the same trend of halting there foreclosures. To a delinquent homeowner that may sound like the miracle they were praying for. However, the situation is much more complex than they ever imagined.
What the foreclosure moratorium is in a conspectus is merely a break for the servicers to review documentation that may have been overlooked in the overwhelming housing crisis. Many banks will go back and scrutinize the terms and conditions of the delinquent loans in an effort to help homeowners who may have been victims of fraud. The problem that persists is that many homeowners were not victims at all. First time borrowers knew they were getting into a home they could never afford, and in addition to housing prices dramatically dropping, many of them lost there jobs and were unable to pay there mortgages. The lenders will not excuse past due payments because they simply could not afford it. After the bail out of several financial institutions, lenders were required by the government to stimulate the economy by restructuring loans. Within weeks, even homeowners who were current on payments were applying for modifications. Unfortunately, the trend did not last long and would leave a trail of foreclosure in its midst.
The modification boom in many opinions was a disaster. Recent reports from the Obama administration stated that 60% of modified homeowners failed the program within the first six months, and millions of others never had the chance. In the climax of the modification boom, several third party law firms and company’s targeted homeowners for what little money they had left, and were charging anywhere from $1,500-$5,000 for a retainer fee that yielded no results. Fast forward to the present day, and we have record high foreclosures and unemployment crippling the housing market.
The modification program was indeed a failure and there are very few success stories. The only positive outcome of the moratorium is that a few lucky homeowners will get modified if they can afford it. Many at risk homeowners do not want to come to terms with the fact that even with a temporary mod, they will foreclose. What homeowners need to consider now is cutting there losses and salvaging what they have left of there credit.
Much like the attempt to help delinquent borrowers by modification, there is a new trend on the block that so far, has proven to be the best exit strategy in the housing crisis. Homeowners who owe more than there homes are worth, now have the option to Short Sale. There are not many qualifying factors as there were with the modifications. If you are delinquent, unemployed, and underwater or simply down on your luck financially, a short sale is the best solution. A homeowner can be free and clear credit wise, within 14 months of the short sale and if your loan is a non recourse the lender by law has to forgive you of any deficiency. There is also no cost required to facilitate the transaction. Homeowners are encouraged to go with a well established short sale firm rather than a traditional Realtor because they often lack the experience to complete the sale successfully.
Within 14 months of the short sale, a homeowner can be eligible to purchase a new property and take advantage of the low prices that are flooding the market today and start from scratch.
The moratorium will prove to be just another wave of hope that will surpass many of the homeowners who need the help. Only 1/3 of the at risk foreclosure candidates were modified this year and the rest will likely foreclose.www.Housingassist.com is a well established short sale company who helps homeowners in those situations and counsels them through and even after the process is complete. They also hold seminars in different cities to educate homeowners on the subject.
With the foreclosure halt coming to an end, many will be right back where they were before it begun. It is the responsibility of the homeowner to asses there situation and make choices that will benefit them in the future.
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