With the current collapse of the real estate market, there has been an increase of con artists that has arrived in the Florida Loan Modification Arean, which target home owners that are in facing foreclosure.
What these fraudulent Florida Loan Modification companies do is prey on the fears of these home owners that are in the midst of losing their homes to foreclosure. They give them empty promises which include guaranteed reduction in their mortgage rate to 2% or lower and also a guaranteed reducing in their principal balance to the current market value or lower. While these results are certainly possible, the truth is no Florida Loan Modification Company can guarantee these results even if it done by an attorney as it’s the lender that makes the final determination.
The chances of getting the amount you owe reduced is slim to none on your first mortgage, but if you have a second mortgage as well, then there is a possibility in getting that mortgage reduced as the second mortgage holder will lose everything, if the home ends up in foreclosure.
Home owners need to be aware of these scams and what to look for as more and more phony Florida Loan Modification companies are on the rise and present themselves as the homeowner’s last resort if they want to save their home. Many of these companies started popping up about a year ago, as lenders tightened up their guidelines and property values plummeted which as a result Florida Home Owners that were in adjustable rate mortgages had even fewer options than before to refinance and save their homes from foreclosure.
Some of these scam artists even took it to another level and advised the home owner that they can stop making their mortgage payments as they are taking care of everything. Normally when the homeowner find out that they have been hustled their hard earned money, then it’s normally too late to avoid foreclosure at that point.
Florida Home owners need to ask a lot of question and do their research before selecting a legitimate Florida loan modification company to work with. They need to be aware of what’s happening in the industry. Recently a lot of Florida Mortgage Brokers and real estate agents have gotten involved in the Florida Loan Modification business, without properly understanding the procedures and guidelines involved, and are more concerned about the money they can make.
If the home owner is facing foreclosure, they don’t want to end up with an inexperienced Florida Loan Modification company that doesn’t have a successful track record of accomplishing beneficial Florida Loan Modifications. Another reason you want to work with someone that has experience is, most lenders will only give the home owner one chance per year to get the loan modified, so if its not done right the homeowner could still end up in foreclosure.
Here is one of the most common red flag to look for when choosing a Florida Loan Modification Company:
Guarantees – Scam artist are known to make empty promises and will tell you whatever you want to hear to get a hold of your hard earned money. Especially if they haven’t seen your paper work and haven’t made a proper analyst of your individual situation, then how can they determine what rate and terms that they will be able to accomplish for you? Remember the lender makes the final determination, not the loan modification company.
Marlon Baugh is a nationally-known mortgage expert. Since 2003, he has specialized in Florida FHA Mortgage Loans for people with Bankruptcies, Foreclosure or with other credit issues, as well as Florida Loss Mitigation. If you would like a Free Copy or to get instant access to the remainder of this Insider Mortgage Report, please visit http://specializedfinancialsolutions.com/lendersexposed.htm or Call 954-678-5796
Saturday, January 24, 2009
Friday, January 23, 2009
Your Home: A Short Refinance May Help You Keep It….
Today there are many home owners that have paid their mortgage on time, but have found themselves in an adjustable rate mortgage, that has adjusted or is scheduled to adjust in the near future. Now they have good credit, good mortgage history, but the problem is they cannot refinance as they owe more than their home is worth.
Well so they've been told, but one insider secret option that is available to home owners in this situation is a short refinance. If the above scenario describes your situation, then your first step towards a short refinance is to contact your lenders Loss Mitigation department to see if they would be willing to participate in a short refinance. If they say NO, then you will want to ask what other options are available to you, such as a loan modification, and IF they say yes, then great, you now need to find a short refinance expert to get the ball rolling.
You will want to find a Mortgage Expert that has experience with loss mitigation and who specializes in Short Refinances. This is not time that you want to just pick any mortgage broker from the yellow pages or to let the family friend that is a mortgage broker use you as a guinea pig. Short Refinances are a complicated transaction and require a lot of attention and a great deal of knowledge of the loss mitigation procedures.Now to start the process you will need to contact you lender and let them know you are considering doing a short refinance and to send you the short refinance package.
In this package you will have to fill out an application, a personal financial statement that will list all you income and expenses, 2 months recent bank statements, 2 years tax returns, current paystubs and a hardship letter. The hardship letter is simply an explanation of why you can no longer afford your mortgage payments and why you need to refinance. You want to make these letters simple and to the point, no need to write a 50 page essay. The next step is to get pre qualified with an FHA Lender, the reason FHA Lenders are preferred is because they will give you the highest LTV possible which will make your offer to your current lender more attractive.
Once you have the approval you will want to put it with your short refinance package and submit to your lender for approval.Once the package is received, then your lender will order a BPO (Brokers Price Opinion), this is similar to an appraisal, but is an inspection normally performed by a real estate broker in the area to give the lender an idea of the current market value. Once the BPO is reviewed, the lender will give you an offer for the new payoff amount.
From here you will want to proceed with you new FHA Loan, which will require a separate FHA appraisal, hopefully the appraisal will have the same or similar value to the BPO, if there is a significant difference, then your mortgage broker will have to go back to the lender and renegotiate. The ideal situation is to get you refinanced without having to bring any money to the closing table, but in some cased the lenders will not bend, and to make the deal work you will have to bring some cash to close. Once the mutually beneficial agreement has been reached, then the lender will issue a release of lien. This document will show what the lender will accept as a net payoff.
Marlon Baugh is a nationally-known mortgage expert. Since 2003, he has specialized in Florida FHA Mortgage Loans for people with Bankruptcies, Foreclosure or with other credit issues, as well as Florida Loss Mitigation. If you would like a Free Copy or to get instant access to the remainder of this Insider Mortgage Report, please visit http://specializedfinancialsolutions.com/lendersexposed.htm or Call 954-678-5796
Well so they've been told, but one insider secret option that is available to home owners in this situation is a short refinance. If the above scenario describes your situation, then your first step towards a short refinance is to contact your lenders Loss Mitigation department to see if they would be willing to participate in a short refinance. If they say NO, then you will want to ask what other options are available to you, such as a loan modification, and IF they say yes, then great, you now need to find a short refinance expert to get the ball rolling.
You will want to find a Mortgage Expert that has experience with loss mitigation and who specializes in Short Refinances. This is not time that you want to just pick any mortgage broker from the yellow pages or to let the family friend that is a mortgage broker use you as a guinea pig. Short Refinances are a complicated transaction and require a lot of attention and a great deal of knowledge of the loss mitigation procedures.Now to start the process you will need to contact you lender and let them know you are considering doing a short refinance and to send you the short refinance package.
In this package you will have to fill out an application, a personal financial statement that will list all you income and expenses, 2 months recent bank statements, 2 years tax returns, current paystubs and a hardship letter. The hardship letter is simply an explanation of why you can no longer afford your mortgage payments and why you need to refinance. You want to make these letters simple and to the point, no need to write a 50 page essay. The next step is to get pre qualified with an FHA Lender, the reason FHA Lenders are preferred is because they will give you the highest LTV possible which will make your offer to your current lender more attractive.
Once you have the approval you will want to put it with your short refinance package and submit to your lender for approval.Once the package is received, then your lender will order a BPO (Brokers Price Opinion), this is similar to an appraisal, but is an inspection normally performed by a real estate broker in the area to give the lender an idea of the current market value. Once the BPO is reviewed, the lender will give you an offer for the new payoff amount.
From here you will want to proceed with you new FHA Loan, which will require a separate FHA appraisal, hopefully the appraisal will have the same or similar value to the BPO, if there is a significant difference, then your mortgage broker will have to go back to the lender and renegotiate. The ideal situation is to get you refinanced without having to bring any money to the closing table, but in some cased the lenders will not bend, and to make the deal work you will have to bring some cash to close. Once the mutually beneficial agreement has been reached, then the lender will issue a release of lien. This document will show what the lender will accept as a net payoff.
Marlon Baugh is a nationally-known mortgage expert. Since 2003, he has specialized in Florida FHA Mortgage Loans for people with Bankruptcies, Foreclosure or with other credit issues, as well as Florida Loss Mitigation. If you would like a Free Copy or to get instant access to the remainder of this Insider Mortgage Report, please visit http://specializedfinancialsolutions.com/lendersexposed.htm or Call 954-678-5796
Florida Short Refinancing Frequently Asked Questions:
What is a Florida Short Refinance?
A Floria Short Refinance is when a lender accepts less than what is owed on the mortgage to allow the home owner to refinance.
Will A Short Refinance Damage My Credit?
It depends; unfortunately this question has both a Yes and No answer. The short refinance could show up on your credit as Settled For Less Than Full and may drop your scores 50 -70 points. But in actuality most lenders will report as "Mortgage Paid" after a short refinance, which will actually increase your scores as it has no negative impact, but it all depends on your lender.
Can I get Get Cash Out From The Refinance?
No, since the lender is taking a loss as they reduce the amount you owe them, they will not allow the homeowner to get any money at closing.
Will I have to Pay Back The Difference?
Most lenders will normally release the home owner of the full balance in writing. Especially if they know you don't have any significant assets. And typically the IRS will require that you pay taxes on the forgiven amount but in 2007, they no longer consider the forgiven debt as taxable income on primary residences. Please consult with your tax advisor for more details on The Mortgage Relief Debt Act.
How Long Will The Process Take?
It depends on your specific lender, but normally you are looking on about 30 – 45 days. The key is to make sure you give the lender everything they need in a timely fashion and continuous follow up with your lender on a daily basis.
What Will I Need To Qualify?
Once you lenders give you the go ahead to start the Short Refinance procedure, then it's just a matter of getting qualified for an FHA Loan. FHA has some of the lowest fixed rates available in today's market as well as the the highest loan to values which is preferred by most lenders that are participating in short refinances.
How Much Will This Cost Me?
It depends on the loss mitigation professional that you are working with, but most normally charge about 1% of the new loan amount which is paid at closing and normally the only upfront fee is for the FHA appraisal.
Why Would A Lender Participate In A Short Refinance?
Lenders only care about two things, which is how much you owe them and how much the house is currently worth. The reason they will consider to do a short refinance is because they will get more money out of a short refinance when compared to a short sale and a significant amount more than if the house was suppose to go into foreclosure. The short refinance is based on the market value of the property, while the short sale is based on the best offer and no one in this market is going to pay market value for a home today. Also the average foreclosure will cost a lender about $100,000.
Marlon Baugh is a nationally-known mortgage expert. Since 2003, he has specialized in Florida FHA Mortgage Loans for people with Bankruptcies, Foreclosure or with other credit issues, as well as Florida Loss Mitigation. If you would like a Free Copy or to get instant access to the remainder of this Insider Mortgage Report, please visit http://specializedfinancialsolutions.com/lendersexposed.htm or Call 954-678-5796
A Floria Short Refinance is when a lender accepts less than what is owed on the mortgage to allow the home owner to refinance.
Will A Short Refinance Damage My Credit?
It depends; unfortunately this question has both a Yes and No answer. The short refinance could show up on your credit as Settled For Less Than Full and may drop your scores 50 -70 points. But in actuality most lenders will report as "Mortgage Paid" after a short refinance, which will actually increase your scores as it has no negative impact, but it all depends on your lender.
Can I get Get Cash Out From The Refinance?
No, since the lender is taking a loss as they reduce the amount you owe them, they will not allow the homeowner to get any money at closing.
Will I have to Pay Back The Difference?
Most lenders will normally release the home owner of the full balance in writing. Especially if they know you don't have any significant assets. And typically the IRS will require that you pay taxes on the forgiven amount but in 2007, they no longer consider the forgiven debt as taxable income on primary residences. Please consult with your tax advisor for more details on The Mortgage Relief Debt Act.
How Long Will The Process Take?
It depends on your specific lender, but normally you are looking on about 30 – 45 days. The key is to make sure you give the lender everything they need in a timely fashion and continuous follow up with your lender on a daily basis.
What Will I Need To Qualify?
Once you lenders give you the go ahead to start the Short Refinance procedure, then it's just a matter of getting qualified for an FHA Loan. FHA has some of the lowest fixed rates available in today's market as well as the the highest loan to values which is preferred by most lenders that are participating in short refinances.
How Much Will This Cost Me?
It depends on the loss mitigation professional that you are working with, but most normally charge about 1% of the new loan amount which is paid at closing and normally the only upfront fee is for the FHA appraisal.
Why Would A Lender Participate In A Short Refinance?
Lenders only care about two things, which is how much you owe them and how much the house is currently worth. The reason they will consider to do a short refinance is because they will get more money out of a short refinance when compared to a short sale and a significant amount more than if the house was suppose to go into foreclosure. The short refinance is based on the market value of the property, while the short sale is based on the best offer and no one in this market is going to pay market value for a home today. Also the average foreclosure will cost a lender about $100,000.
Marlon Baugh is a nationally-known mortgage expert. Since 2003, he has specialized in Florida FHA Mortgage Loans for people with Bankruptcies, Foreclosure or with other credit issues, as well as Florida Loss Mitigation. If you would like a Free Copy or to get instant access to the remainder of this Insider Mortgage Report, please visit http://specializedfinancialsolutions.com/lendersexposed.htm or Call 954-678-5796
Sunday, January 11, 2009
Owe More Than Your Home Is Worth - Now What???
If you own a home in a declining market such as South Florida, then you may have a rude awakening when you find out how much your house is worth in today’s market, especially if you need to sell or refinance in the near future. Some Florida home owners have the flexibility to wait out this declining market, while many more don’t, for such reasons as divorce, relocation, financial hardship or an adjustable rate mortgage that just spiked up a few hundred dollars and home owners can no longer afford their home and may possibly face foreclosure.
For many, the thought of owning a home that is upside has turned their dream of home ownership to a nightmare of home ownership. If you are a Florida homeowner that is currently facing this situation, then you will be glad to know that this article will reveal several different options that are available today, as I reveal some of the lenders best kept secrets of a FLORIDA SHORT SALE if you want to see and a FLORIDA SHORT REFINANCE if you want to keep your home.
It’s important to understand what Lenders care about, before they are approached for a Florida short sale or Florida short refinance. They only care about the bottom line, which is how much do you owe and how much cash they will receive if they agree to do a Florida short sale or a Florida short refinance.
Now what exactly is a Florida short sale? This is the option that you would want to go with if you decide you no longer want your home and would just rather sell, than try to find ways to keep your home. A Florida short sale is when the lender agrees to reduce the amount you owe on your mortgage to an amount less than the current market value and low enough where it will be more attractive for someone to buy in today’s market.
What exactly is a Florida Short Refinance? This is the option that you want to consider if you decide you don’t want to move and you would like to keep your home. The benefits of the Florida short refinance is that you will get a new low, 30 years fixed rate mortgage, typically an Florida FHA Mortgage Loan and you will owe less than the current market value of your home. Yes, you heard me right, there is a way to refinance, even if you are upside down, but you have to have the ability to qualify for an Florida FHA Mortgage Loan. But if your credit is shot, then you may need to consider other options such as a Florida Loan Modification .
Now you may be wondering why a lender would even consider these options as it appears they will be losing a lot of money. Well, the reason lenders agree to do a Florida Short Sale or Florida Short Refinance, is that they believe that if the property ends up in foreclosure, then they stand to lose a whole lot more, as the average Florida Foreclosure will cost a lender anywhere from $50,000- $100,000.
Now everyone’s situation is different, some lenders will agree to either the Florida Short Sale or a Florida Short Refinance, while other may just agree to a Florida Short Sale. It is best to find a mortgage expert that can help you navigate this process and make an educated decision, and even if you lender doesn’t agree to a Florida Short Refinance and you really want to keep you home then there are other loss mitigation options that are available today, such as a Florida Loan Modification.
Marlon Baugh is a nationally-known mortgage expert. Since 2003, he has specialized in Florida FHA Mortgage Loans for people with Bankruptcies, Foreclosure or with other credit issues, as well as Florida Loss Mitigation. If you would like a Free Copy or to get instant access to the remainder of this Insider Mortgage Report, please visit http://specializedfinancialsolutions.com/lendersexposed.htm or Call 954-678-5796
For many, the thought of owning a home that is upside has turned their dream of home ownership to a nightmare of home ownership. If you are a Florida homeowner that is currently facing this situation, then you will be glad to know that this article will reveal several different options that are available today, as I reveal some of the lenders best kept secrets of a FLORIDA SHORT SALE if you want to see and a FLORIDA SHORT REFINANCE if you want to keep your home.
It’s important to understand what Lenders care about, before they are approached for a Florida short sale or Florida short refinance. They only care about the bottom line, which is how much do you owe and how much cash they will receive if they agree to do a Florida short sale or a Florida short refinance.
Now what exactly is a Florida short sale? This is the option that you would want to go with if you decide you no longer want your home and would just rather sell, than try to find ways to keep your home. A Florida short sale is when the lender agrees to reduce the amount you owe on your mortgage to an amount less than the current market value and low enough where it will be more attractive for someone to buy in today’s market.
What exactly is a Florida Short Refinance? This is the option that you want to consider if you decide you don’t want to move and you would like to keep your home. The benefits of the Florida short refinance is that you will get a new low, 30 years fixed rate mortgage, typically an Florida FHA Mortgage Loan and you will owe less than the current market value of your home. Yes, you heard me right, there is a way to refinance, even if you are upside down, but you have to have the ability to qualify for an Florida FHA Mortgage Loan. But if your credit is shot, then you may need to consider other options such as a Florida Loan Modification .
Now you may be wondering why a lender would even consider these options as it appears they will be losing a lot of money. Well, the reason lenders agree to do a Florida Short Sale or Florida Short Refinance, is that they believe that if the property ends up in foreclosure, then they stand to lose a whole lot more, as the average Florida Foreclosure will cost a lender anywhere from $50,000- $100,000.
Now everyone’s situation is different, some lenders will agree to either the Florida Short Sale or a Florida Short Refinance, while other may just agree to a Florida Short Sale. It is best to find a mortgage expert that can help you navigate this process and make an educated decision, and even if you lender doesn’t agree to a Florida Short Refinance and you really want to keep you home then there are other loss mitigation options that are available today, such as a Florida Loan Modification.
Marlon Baugh is a nationally-known mortgage expert. Since 2003, he has specialized in Florida FHA Mortgage Loans for people with Bankruptcies, Foreclosure or with other credit issues, as well as Florida Loss Mitigation. If you would like a Free Copy or to get instant access to the remainder of this Insider Mortgage Report, please visit http://specializedfinancialsolutions.com/lendersexposed.htm or Call 954-678-5796
Sunday, January 4, 2009
Should I Buy/ Should I Sell????
Recent national reports about the slow housing market have raised many questions for concerned homeowners: "Is now the time to sell?" "Should I buy that vacation home in Miami?"
In order to really discover the answer to nagging Florida Real Estate market questions, homeowners must collaborate with their Florida Mortgage and Florida Real Estate professional to explore the real estate situation on a local level.
Should I Buy? Tips for Florida Home Buyers: The market is in your favor, interest rates are low, more housing is available in select markets and sellers are offering great buyer incentives. Below are a few tips to help you successfully shop for new real estate.
• Take your time, but not too much time. Yes, home prices are lower, but continuing to wait in hopes that the price will decline may backfire on buyers. If you find a property that you can't live without, make an offer and negotiate. Work with your Florida Real Estate professional and suggest a price that reflects the local market and sales' price of the homes nearby.
• Watch out for competition The National Association of Realtors is expecting an increase in home sales in 2009, so don't think you are the only one out there shopping. People are constantly moving due to new job opportunities, marriage, divorces and more, so be prepared to make counter offers.
• Know your loan According to bankrate.com, interest rates are still very low. The average national interest rate on a 30-year fixed mortgage is about 5.79 percent. But, before you sign, be sure you fully understand your loan products. Work with your real estate and mortgage professionals to find the best option that will fit your financial situation.
Should I Sell? Tips for Florida Home Sellers: The National Association of Mortgage Brokers predict a big selling boom this year, so be prepared for lots of competition. Below are a few tips that will help you successfully sell your Florid Real Estate.
• Set a realistic asking price Over the past few years, Florida Home Sellers have been able to get away with asking extremely high prices for their property in select markets. Now that the market has cooled, sellers may feel that they are getting the short end of the stick.
According to Jim Gillespie, president and CEO of Coldwell Banker, sellers "need to realize that a home is where you live. It's not a lottery ticket," it is a long term investment.
Work with your real estate professional and investigate the local real estate market and what the sellers within your community are asking for their property. Setting a proper asking price will obtain more offers.
• Fix up your home Making a great first impression is crucial. A few minor improvements and a fresh coat of neutral colored paint to visible exterior and interior parts of your home will help catch buyers' attention.
Keeping you informed…Keeping you up to date on the latest housing market news and making sure you receive the best mortgage options and rates is our commitment to you. Call today at 954.678.5796, or visit www.specializedfinancialsolutions.com to obtain custom loan options that will fit your current financial situation and help you obtain your ownership goals.
In order to really discover the answer to nagging Florida Real Estate market questions, homeowners must collaborate with their Florida Mortgage and Florida Real Estate professional to explore the real estate situation on a local level.
Should I Buy? Tips for Florida Home Buyers: The market is in your favor, interest rates are low, more housing is available in select markets and sellers are offering great buyer incentives. Below are a few tips to help you successfully shop for new real estate.
• Take your time, but not too much time. Yes, home prices are lower, but continuing to wait in hopes that the price will decline may backfire on buyers. If you find a property that you can't live without, make an offer and negotiate. Work with your Florida Real Estate professional and suggest a price that reflects the local market and sales' price of the homes nearby.
• Watch out for competition The National Association of Realtors is expecting an increase in home sales in 2009, so don't think you are the only one out there shopping. People are constantly moving due to new job opportunities, marriage, divorces and more, so be prepared to make counter offers.
• Know your loan According to bankrate.com, interest rates are still very low. The average national interest rate on a 30-year fixed mortgage is about 5.79 percent. But, before you sign, be sure you fully understand your loan products. Work with your real estate and mortgage professionals to find the best option that will fit your financial situation.
Should I Sell? Tips for Florida Home Sellers: The National Association of Mortgage Brokers predict a big selling boom this year, so be prepared for lots of competition. Below are a few tips that will help you successfully sell your Florid Real Estate.
• Set a realistic asking price Over the past few years, Florida Home Sellers have been able to get away with asking extremely high prices for their property in select markets. Now that the market has cooled, sellers may feel that they are getting the short end of the stick.
According to Jim Gillespie, president and CEO of Coldwell Banker, sellers "need to realize that a home is where you live. It's not a lottery ticket," it is a long term investment.
Work with your real estate professional and investigate the local real estate market and what the sellers within your community are asking for their property. Setting a proper asking price will obtain more offers.
• Fix up your home Making a great first impression is crucial. A few minor improvements and a fresh coat of neutral colored paint to visible exterior and interior parts of your home will help catch buyers' attention.
Keeping you informed…Keeping you up to date on the latest housing market news and making sure you receive the best mortgage options and rates is our commitment to you. Call today at 954.678.5796, or visit www.specializedfinancialsolutions.com to obtain custom loan options that will fit your current financial situation and help you obtain your ownership goals.
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