Loss Mit Services

Short Sale Tip of The Week 8-19-09

Posted on 20. Aug, 2009 by ctlms in Short Sale, foreclosure

Loan Modifications.  How can they benefit the Realtor?

So it has been two weeks since my last post.  I have been very busy with all my existing and new short sale and loan modification customers.  So I thought that this week I would talk a little about loan modifications.

Along with short sale processing I also offer loan modifications to my clients.  Not everyone in financial distress wants or needs to sell their home.  Or at least they have not come to the realization that they need to sell.  Many have tired the Making Home Affordable options and been very disappointed by the results.  Some people who would qualify for a loan mod the "old fashioned" don't qualify the MHA way because the guidelines are black and white and there are no exceptions.

This is where our loan modifications come into play.  Homeowners that can save their homes deserve a chance to do so.  Those homeowners that cannot save their homes but haven't realized it yet need to SEE it for themselves.

You may have past clients call you and ask if you know someone that can help them.  They may already be behind on payments or may have just lost a job and will soon be behind.  There are many scenarios that can happen.  But if you are successfully able to point them in the right direction, they will love you forever.  Plus, if they later determine that they cannot afford the home any longer, they will surely call you back to list the house and at that time they will probably need a short sale as well.

Many agents that we work with for the first time tell us that until they found out about us, they would just tell their leads that they were unable to help them because they owe more than their homes value.  With the help of our service they are able to make that lead a client and eventually close the transaction and get paid.

So knowing where to direct your clients that are not yet ready to sell is just another tool in your belt to assist your clients.  Unfortunately most people do not qualify for loan modifications.  But the homeowners need to see the documented reasons why they cannot afford the home on paper before they come to the realization that they have no choice but to sell in order to avoid foreclosure.  Most people have never before filled out a budget on paper and seen where their money actually goes.  For those that do qualify for a loan mod, they have a new chance to get back on their feet.  And you know who they will call when they are ready to sell?  You.

In case you are wondering, we do not charge a client to determine if they have a chance at a loan mod.  We have them fill out a detailed financial questionnaire and we get back to them within 48 hours and let them know if it looks like their is a chance at a successful loan mod.  If their information makes it clear that they will not qualify, we let them know why and suggest that selling may be a good option.  Most homeowner facing possible foreclosure do not have months to wait around only to find out they never qualified in the first place.  By that time it is probably to late to avoid foreclosure.

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As always Visit the Ask The Expert Page to leave your questions or contact me directly if you need immediate assistance at [email protected] or visit www.CTLMS.com

Short Sale Tip of The Week 8-5-09

Posted on 05. Aug, 2009 by ctlms in Short Sale, foreclosure

Today's NEED can be your Opportunity.

There has never been a time where your community needs you more than they do now.

Where NEED meets OPPORTUNITY:

• The U.S., as a whole has seen a 21.9% decline in home values for properties purchased by homeowners within the last 8 years. As a national average, homeowners who bought before then could have equity in their home provided they did not perform a cash-out re-fi. (NAR)
• The # of US households on the verge of losing their homes has soared with nearly 15% of all-use homes—more than 1.5 million homes in the 1st half of the year going into foreclosure.
• Nationally, 1 in every 380 homes received a foreclosure notice in June.
• Nationally, 1 in every 84 homes received a foreclosure filing sometime in the first half of the year.
• Foreclosure filings were up 33% last month over June of 2008 and 5% greater than in May. (RealtyTrac)
• There are proportionately more ARMs given to strong credit buyers that are facing foreclosure than sub-prime loans given to the credit unworthy.
• Of the 4 million homes targeted by Obama’s plan for modification assistance, only 325,000 have made it and some lenders are saying it is less costly to foreclose than modify.
• Reports have the unemployment rate reaching 10% by years end and is measured as high as 20% if you consider more accurate measuring methods.
• Some states have hit unemployment rates not seen for 25 years. (WSJ)
• The Federal Reserve has projected that there will be no return to full employment until 2015. (AJC)
• The Cap-n-Trade Bill is set to eliminate even more jobs, erode more disposable income, blow-up the appraisal process, and throw increases in costs and time-lines into the housing crisis.

On a positive note: the tax credit has stimulated home-buyers and there is still time to take advantage, interest rates are still low, and lending restrictions are lessening.

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As always Visit the Ask The Expert Page to leave your questions or contact me directly if you need immediate assistance at [email protected] or visit www.CTLMS.com

Short Sale Tip of The Week 7-29-09

Posted on 30. Jul, 2009 by ctlms in Short Sale, foreclosure

Loan Modifications...So what's the deal?

We have heard a lot about loan modifications in the news this year.  The government has come out with a litany of new programs aimed at helping struggling homeowners to avoid foreclosure.

However the numbers so far do not show a stem to the foreclosure crisis.  In the first half of this year there have been more than 1.9 Million foreclosure fillings nationwide.

Part of the reason these programs are not working as desired is that they were developed by Congress not mortgage professionals.  The programs are Pass or Fail type  programs.  The mortgage servicer enters in some data about the homeowner and the system says yes or no.  That's it, there is no manual underwriting averrable for these programs.  If the income is too high or to low, you fail.  If you debts are too high or too low, you fail.

The other reason for the lack of results is that only Fannie Mae and Freddie Mac are the only investors that the Government can dictate these guidelines to.  Additionally any banks that took TARP money have to participate.  But this has obviously not been enough so far.

The good news is that there is the "Old School" way of doing loan mods that  complete bypasses these programs and has had a much higher likelihood of success for many years.  Loan mods are nothing new, they are just more publicized now then they ever were before.

As a real estate professional you are likely one of the first people on of your past clients will call when they are in trouble with their house.  As much as making a commission is important, helping the client should be first priority.  If they want to, and can afford to save their home, we all should do whatever we can to help them.  You could never have a better referral source than a homeowner you helped stay in their home when they were struggling.

My company can offer this service to your clients well as as the short sale processing services we provide.  We have aligned ourselves with the nations top loan modification service.  We can let your client know within 24-48 hours if they fit the qualifications for a loan mod.  If they do not, then you probably have a new short sale listing on your hands and we can help there to.

Either way you have looked after the best interests of your clients, and they will thank you for it.

Subscribe to this blog via RSS for instant updates.

As always Visit the Ask The Expert Page to leave your questions or contact me directly if you need immediate assistance at [email protected] or visit www.CTLMS.com