Contra Costa County Short Sale

HAFA Ushers Record Number of Foreclosure Sale Cancellations in California

Wed, 14 Jul 2010 11:37:52 GMT

Foreclosure Sale Cancellations Increase

Lenders are canceling more foreclosure sales in California than ever before.

Lenders canceled nearly 22,000 California foreclosure sales in June - a 27% increase from May, a 153% growth from a year ago, and an all-time high, according toForeclosureRadar, which tracks foreclosures in the state.

What is a CDPE?

Wed, 30 Jun 2010 15:58:46 GMT

What is a CDPE?

A Certified Distressed Property Expert^® is a real estate professional with specific understanding of the complex issues confronting the real estate industry, and the foreclosure avoidance options available to homeowners. Through comprehensive training and experience, CDPEs are able to provide solutions for homeowners facing hardships in today’s market, specifically short sales.

The prospect of foreclosure can be financially and emotionally devastating, and often homeowners proceed without guidance of any kind. The developers of the CDPE Designation believe that the best course of action for a homeowner in distress is to speak with a well-informed, licensed real estate professional. They have the tools needed to help homeowners find the best solution for their situation. Often, when other options have been exhausted, CDPEs can help homeowners avoid foreclosure through the efficient execution of a short sale.

While enduring financial difficulties is challenging for any family, the process of finding a qualified real estate professional should not be... I am here to help homeowner's who need answers.

Short sales not always a short process

Sun, 21 Feb 2010 11:19:38 GMT

Short sales not always a short process

Questions? email scottbishop@windermere.com or online LewisBishop.com

For frustrated Reno buyers, short sale is anything but

Mon, 18 Jan 2010 10:46:43 GMT

RGJ.com

Standing just a few feet away from what she calls her "dream home," Tara Free should be feeling like a million bucks.

"I just absolutely love this house," Free said. "It's an older home, but it's in a quiet neighborhood. It's got this huge backyard. It actually reminds me of my childhood, so it felt like home the minute I walked into it."

Instead of elation, however, the Sparks resident's mood is much closer to the gloomy rain clouds just overhead.

With preapproval from her lender and a willing seller, the house of Free's dreams is so close that she almost can taste it. And yet the house also feels oh-so far away.

To get the house, Free opted to go the short sale route. But like many short sale buyers, Free is learning that the meaning of the word "short" has nothing to do with the time it takes to close such transactions.

"Every time my Realtor calls Bank of America and tries to get a hold of somebody to get an answer, my agent is told to call back tomorrow and 'We'll have an answer for you,' -- and that's the answer we've been getting every day," Free said. "I have full approval (from my lender), all the inspections are done, and you have a negotiated price with a willing buyer and seller. Why am I sitting here five months later with everything done, and nobody's giving me a reason for waiting?"

Going short

In real estate, a short sale involves the sale of a property for less than the balance owed on the mortgage.

For borrowers and lenders, the transaction smacks of a classic compromise. Borrowers get to free themselves from their mortgage commitment with less of a credit hit compared to a foreclosure. In the case of lenders, they get to avoid the significant fees that a foreclosure entails.

In Free's case, a short sale also comes with the added bonus of getting more bang for her buck.

"Foreclosures are getting snapped up, but the price for these homes are also getting jacked up because of the demand," said the 27-year-old Free. "In my situation and with what I can afford, I can get more house for the price through a short sale."

Limited bank-owned inventory at the entry-level market also means many buyers have no choice but to consider short sales. As of December, short sales accounted for 31 percent of active inventory in December compared to 12 percent for bank-owned properties, said Jennifer Capurro, a real estate agent and president-elect of the Reno/Sparks Association of Realtors.

"If you're looking for a house under $200,000 right now, there is essentially no inventory," Capurro said.

A matter of time

Although short sales sound good in theory, they also come with one key caveat: time.

Capurro has seen some short sales take only 45 days. But she has also seen one transaction that took 14 months.

Through October last year, local data showed short sales took six months to close on average once the property is listed, Capurro said.

One primary driver for the length of a short sale transaction are rules and conditions set by whomever owns the note on the mortgage -- and it usually isn't the lender that originally issued it. Banks, for example, usually act as servicers for the mortgages they modify.

"For the most part, servicers don't own interest on the notes but are just servicing them on behalf of a Fannie Mae or a Freddie Mac or an investor," said J.K. Huey, senior vice president of Wells Fargo Home Mortgage. "And decisions on shorts sales are made based on the rules that the investor or owner of that note has on it."

In short, banks such as Wells Fargo or Bank of America have clear guidelines they must follow when servicing a short sale.

Then there's the potential for multiple lienholders having a stake on a property. If a house happens to have a second mortgage, home equity line of credit, other liens -- and all happen to involve different entities -- a short sale can't be executed until all parties agree to it.

Houses that have mortgage insurance also typically need the approval of the mortgage insurance company before a short sale can be approved.

Add everything together and you have the biggest challenge in the industry for short sales right now, Huey said.

"For someone unfamiliar with the process, they perceive it as delays or the bank holding things up," Huey said. "But in reality, we're just waiting for all parties to come to an agreement."

Not-so-short answer

Despite the potential headaches that come with it, more people are opting to give short sales a try, Capurro said.

One reason is comfort level. Although many people -- and even real estate agents -- didn't exactly know what a short sale was three or four years ago, the high number of distressed properties in the area has helped increase awareness about short sales.

Meanwhile, the limited supply of bank-owned foreclosures has led to more competing bids and counteroffers among buyers. With more buyers jockeying for a shrinking pool of houses, buying a foreclosed home can sometimes take just as long as a short sale, Capurro said.

If you decide to go for a short sale, however, it's important to realize it might take some time. The wait has been especially frustrating for Free, who took a second job and worked for years to get her finances so she could qualify for a home loan. After missing the initial deadline for the first-time homebuyer tax credit, Free now worries the short sale won't be finished by the time the tax credit extension expires at the end of April.

"I feel like I'm at a loss," Free said. "All I want is to buy a home that I'm perfectly capable of getting financing for. But every time it looks like we're ready to go, it just feels like I get the door slammed in my face."

Despite the difficulties, Free said she has no intention of backing out from the short sale. For one, she really likes this particular house. Tax credit or no tax credit, Free plans to stick with the whole thing till the better end.

"I've worked my butt off since I was 17 to live the American dream and buy a house," Free said. "I'm in a fight now. I will fight tooth and nail to get this house."

Questions? email scottbishop@windermere.com or online LewisBishop.com

Homeowners opt to flee instead of fight as loan modifications start to lose luster

Mon, 18 Jan 2010 10:44:03 GMT

Palm Beach Post

Desperate homeowners scrambling to get a loan modification through federal foreclosure relief programs are beginning to shun the offer, opting for a strictly business approach to the dilemma — walking away.

Because the majority of modifications don't reduce the principal payment on loans made during the overpriced boom years, underwater mortgages could still be drowning 10 years out.

The better option for those borrowers, some say, is to take the hit now and attempt a short sale, deed in lieu, or even allow their home to go into foreclosure.

"What motivation is there for a homeowner to pay a mortgage that is three times more than the property is worth?" said real estate attorney Rashmi Airan-Pace, whose Coral Gables firm Airan2, Airan-Pace and Crosa specializes in foreclosure defense.

Recently, Airan-Pace secured a modification for a Miami Beach client that shrank his monthly payment from $3,700 to $1,600. But it was only a reduction in interest rate — allowed by the Home Affordable Modification Program to go as low as 2 percent.

"I called him in and he said, 'I'm not signing this,' " Airan-Pace recalled.

He owed $470,000 on a property worth less than half that.

"Many homeowners feel that if they take a modification now, a decade down the road, they'll still be coming to the closing table with money," Airan-Pace said.

Lenders' reluctance to reduce principal amounts on loans made during the overpriced boom years is a problem for the Obama administration's $75 billion program to protect homeowners from foreclosure.

The Treasury Department's December report on the program, released Friday, showed that just 17,280, or 26 percent, of permanent modifications awarded nationwide included either a reduction in principal or, more likely, a temporary reduction that is tacked on at the end of the life of the loan.

Through December, 66,465 permanent modifications had been awarded and accepted by the borrower through the program. But that's still just 2 percent of the total number of eligible loans that are 60 days or more in default.

Just 8,405 loans in Florida received a permanent modification.

Even if the numbers improve, some real estate experts aren't optimistic that Making Home Affordable will save troubled borrowers or the economy, especially in such hard-hit states as Florida where home values took epic plummets.

With 46 percent of mortgages in Palm Beach, Broward and Miami-Dade counties upside down in the third quarter of 2009, according to analysts at Zillow.com, Airan-Pace predicts more homeowners will snub modification plans that don't cut principal payments.

That's a departure from the current clamor to receive a modification.

The Treasury Department acknowledges that in states such as Florida, Nevada and Arizona the number of underwater mortgages is a "serious policy concern," said Treasury spokeswoman Meg Reilly.

But it's a more complicated issue than simply ordering banks to cut principal payments. There's a fairness question, too.

"If we increase principal write-downs offered through the program, there are concerns about moral hazard — underwater borrowers with affordable mortgages could engage in strategic default," Reilly said. "Increasing incentives for underwater borrowers to become delinquent could increase the cost of the program to taxpayers and risk slowing the housing recovery."

There is already a fear that 2010 will bring a rush of new foreclosures as adjustable-rate mortgages reset and unemployment drains savings accounts.

Real estate analysts at Irvine, Calif.-based RealtyTrac added strategic defaults to their list last week of reasons why they predict a foreclosure increase in 2010.

"In some ways, aside from the ethical and moral obligations, it makes sense," said RealtyTrac spokesman Daren Blomquist.

Airan-Pace argues it's not a moral issue just for the homeowner. The banks, she said, need to accept responsibility for approving loans on overpriced properties.

Kathryn and Douglas Lomax paid $499,000 for their Royal Palm Beach home in July 2005.

The market value today is $226,025, according to the Palm Beach County Property Appraiser's Office.

The couple were granted a trial loan modification in May after a reduction in work hours cut their monthly income. The modification reduced their interest rate to 2 percent and extended the loan to 40 years.

But seven months later they're still trying to make the payment permanent, saying they're repeatedly sending the same paperwork to CitiMortgage while suffering default notices posted to their credit reports.

"We put $150,000 cash down when we bought," said Kathryn Lomax, who doesn't want to lose the home. "To walk away from all that, I can't even fathom it."

Calls and e-mails to CitiMortgage were not returned.

Anthony DiMarco, executive vice president of government affairs for the Florida Bankers Association, said he doesn't agree with stalling tactics used by some lawyers to delay foreclosures, or with strategic defaults.

Both cost the lenders more and stall the difficult, but cleansing, process of moving foreclosures through the system.

"No one expected it to get as bad as it's gotten," DiMarco said. "It's like building an airplane while you're flying."

Questions? email scottbishop@windermere.com or online LewisBishop.com

Big Banks Accused of Short Sale Fraud

Fri, 15 Jan 2010 21:42:09 GMT

Big Banks Accused of Short Sale Fraud

Just as regulators, lawmakers and all forms of financial oversight boards are talking about new regulations to guard against mortgage fraud and another mortgage meltdown, there appears to be yet a new mortgage fraud out there today, allegedly perpetuated by agents of, yes, the big banks.

I was first alerted to this by Jeremy Brandt, the CEO of several companies that bring short sale agents, investors and sellers together.

His companies include 1800CashOffer, HomeFlux.com and FastHomeOffer.com. Brandt has a huge network of short sale real estate agents, and over the past several months he's been receiving all kinds of questions and complaints about trouble with second lien holders.

As we all know, during the housing boom, millions of Americans pulled cash out of their homes in the form of home equity loans and lines of credit. They also used "piggy back" loans in order to get even lower interest rates on their primary mortgages. Now, many of the borrowers in trouble, and many who are so far underwater on their loans that they don't qualify for any refi or modification, are choosing short sales as a way out. (Short sales are when the lender allows the home to be sold for less than the value of the loan). About 12 percent of all home sales by the end of 2009 were short sales, according to the National Association of Realtors.

In order for a short sale with two loans to happen, the second lien holder has to drop the lien.

If they don't, and there's no short sale, the home goes to foreclosure and the first lien holder gets the house because second liens are subordinated debt to the primary loan.

In short, the second lien holder gets nothing. In order to get the second lien holder to drop the lien, the first lien holder generally negotiates some partial payment to the second lien holder. The second lien holder doesn't have to agree, but more and more are doing so.

That's all legal.

But here's what's not legal and what's apparently happening quite often recently. Since many second lien holders are getting very little, they are now allegedly requesting money on the side from either real estate agents or the buyers in the short sale. When I say "on the side," I mean in cash, off the HUD settlement statements, so the first lien holder doesn't see it.

"They are pretty clear and pretty upfront about the fact that if the first lender knows they are getting paid, the first lender will kill the short sale," says Brandt. "So these second lenders are asking for the payments off the closing documents, off the HUD statement, usually in a cashiers check prior to closing. Once they receive that payment, they will allow the short sale to go through, which according to RESPA laws and the lawyers that we have spoken to on the topic is not legal."

(RESPA is the Real Estate Settlement Procedures Act, the 2008 law requiring that consumers receive disclosures at various times in the transaction. It outlaws kickbacks that increase the cost of settlement services. RESPA is a HUD consumer protection statute designed to help homebuyers be better shoppers in the home buying process, and is enforced by HUD. Read more about it here.).

I told RESPA specialist Brian Sullivan over at HUD about all this and he replied, "That's a red flag!"

Clearly illegal.

Brandt told me he's heard from at least 200 agents that they've had these requests made by representatives of Citi Mortgage , JP Morgan Chase , Bank of America and other large banks.

Most agents wouldn't go on the record with me, for fear of retribution by the banks with whom they have to work every day. But one agent, Kayte Gentry, of Keller Williams Integrity First Realty, was brave enough to blow the whistle.

"I think it's wrong, and I think somebody needs to hold them accountable, and every time I lose a house in foreclosure because of this, it hurts my client," says Gentry matter-of-factly. "Aside from being illegal and a violation of RESPA, it's immoral and truly it's just sad for the client that it's hurting."

Gentry says she has had the requests made three times and claims she lost one sale because of it.

"The big banks that have recently made this request, specifically payments outside of the closing statement have been Citi Mortgage and JP Morgan Chase."

JP Morgan Chase simply answered, "No Comment," when I relayed the charge to their media representative.

Bank of America denied the practice to CNBC in a written statement:

"Bank of America enforces a policy that all disbursements are documented on the settlement statement for short sales. When we are servicing a first mortgage with a second lien held by another investor, if the second lien holder asks for off-HUD payments, we will not approve the transaction (if we have knowledge of it). It is also against Bank of America’s policy to accept off-HUD payments on its second liens."

Citi 's reply was a bit more complicated:

“We work very hard to help distressed homeowners find solutions for their financial challenges. In our attempt to amicably resolve the debt, we will generally negotiate a reduced settlement with the homeowner in order to release a second lien. Unlike some lenders who refuse to reduce the payoffs on second liens, we choose to reduce the payoff amounts in some situations to assist the borrower. We do not provide instructions to settlement agents on how to fill out the settlement statement or any other closing documents, and we certainly do not require settlement agents or any other parties to violate applicable laws."

"When we confront the lenders and tell them that this request is illegal and a violation of RESPA, they tell us it's been cleared through legal and they don't care. Do it anyway," charges Gentry.

I personally heard a recording of a phone conversation between a short sale real estate agent and a second lien lender, during which the second lien lender clearly asked for cash outside of the settlement and threatened to kill the deal without it.

The real estate agent was rightly concerned and reluctant (the recording was given to me by Brandt who got it from the agent. The agent would provide no information on the lender, for fear of retribution):

AGENT: Well yes, I don’t want to lose my license, go to jail, I mean, I have to sign…

LENDER: You're not going to lose your license - we have plenty of realtors who do this, who actually understand how this whole process goes - and they realize that OK, if I want to get this done, this will take place."

I contacted the Treasury Department, HUD, FINCEN (Financial Crimes Enforcement Network) and the Federal Trade Commission, and none of their representatives could tell me of any active investigation into this. The folks at HUD said they'd be very interested to see my story. - CNBC

Questions? email scottbishop@windermere.com or online LewisBishop.com

NYTimes.com - Walk Away From Your Mortgage!

Sun, 10 Jan 2010 20:49:09 GMT

NYTimes.com

Why should underwater homeowners behave any differently from banks?

John Courson, president and C.E.O. of the Mortgage Bankers Association, recently told The Wall Street Journal that homeowners who default on their mortgages should think about the “message” they will send to “their family and their kids and their friends.” Courson was implying that homeowners — record numbers of whom continue to default — have a responsibility to make good. He wasn’t referring to the people who have no choice, who can’t afford their payments. He was speaking about the rising number of folks who are voluntarily choosing not to pay.

Such voluntary defaults are a new phenomenon. Time was, Americans would do anything to pay their mortgage — forgo a new car or a vacation, even put a younger family member to work. But the housing collapse left 10.7 million families owing more than their homes are worth. So some of them are making a calculated decision to hang onto their money and let their homes go. Is this irresponsible?

Businesses — in particular Wall Street banks — make such calculations routinely. Morgan Stanley recently decided to stop making payments on five San Francisco office buildings. A Morgan Stanley fund purchased the buildings at the height of the boom, and their value has plunged. Nobody has said Morgan Stanley is immoral — perhaps because no one assumed it was moral to begin with. But the average American, as if sprung from some Franklinesque mythology, is supposed to honor his debts, or so says the mortgage industry as well as government officials. Former Treasury Secretary Henry M. Paulson Jr. declared that “any homeowner who can afford his mortgage payment but chooses to walk away from an underwater property is simply a speculator — and one who is not honoring his obligation.” (Paulson presumably was not so censorious of speculation during his 32-year career at Goldman Sachs.)

The moral suasion has continued under President Obama, who has urged that homeowners follow the “responsible” course. Indeed, HUD-approved housing counselors are supposed to counsel people against foreclosure. In many cases, this means counseling people to throw away money. Brent White, a University of Arizona law professor, notes that a family who bought a three-bedroom home in Salinas, Calif., at the market top in 2006, with no down payment (then a common-enough occurrence), could theoretically have to wait 60 years to recover their equity. On the other hand, if they walked, they could rent a similar house for a pittance of their monthly mortgage.

There are two reasons why so-called strategic defaults have been considered antisocial and perhaps amoral. One is that foreclosures depress the neighborhood and drive down prices. But in a market society, since when are people responsible for the economic effects of their actions? Every oil speculator helps to drive up gasoline prices. Every hedge fund that speculated against a bank by purchasing credit-default swaps on its bonds signaled skepticism about the bank’s creditworthiness and helped to make it more costly for the bank to borrow, and thus to issue loans. We are all economic pinballs, insensibly colliding for better or worse.

The other reason is that default (supposedly) debases the character of the borrower. Once, perhaps, when bankers held onto mortgages for 30 years, they occupied a moral high ground. These days, lenders typically unload mortgages within days (or minutes). And not just in mortgage finance, but in virtually every realm of our transaction-obsessed society, the message is that enduring relationships count for less than the value put on assets for sale.

Think of private-equity firms that close a factory — essentially deciding that the company is worth more dead than alive. Or the New York Yankees and their World Series M.V.P. Hideki Matsui, who parted company as soon as the cheering stopped. Or money-losing hedge-fund managers: rather than try to earn back their investors’ lost capital, they start new funds so they can rake in fresh incentives. Sam Zell, a billionaire, let the Tribune Company, which he had previously acquired, file for bankruptcy. Indeed, the owners of any company that defaults on bonds and chooses to let the company fail rather than invest more capital in it are practicing “strategic default.” Banks signal their complicity with this ethos when they send new credit cards to people who failed to stay current on old ones.

Mortgage holders do sign a promissory note, which is a promise to pay. But the contract explicitly details the penalty for nonpayment — surrender of the property. The borrower isn’t escaping the consequences; he is suffering them.

In some states, lenders also have recourse to the borrowers’ unmortgaged assets, like their car and savings accounts. A study by the Federal Reserve Bank of Richmond found that defaults are lower in such states, apparently because lenders threaten the borrowers with judgments against their assets. But actual lawsuits are rare.

And given that nearly a quarter of mortgages are underwater, and that 10 percent of mortgages are delinquent, White, of the University of Arizona, is surprised that more people haven’t walked. He thinks the desire to avoid shame is a factor, as are overblown fears of harm to credit ratings. Probably, homeowners also labor under a delusion that their homes will quickly return to value. White has argued that the government should stop perpetuating default “scare stories” and, indeed, should encourage borrowers to default when it’s in their economic interest. This would correct a prevailing imbalance: homeowners operate under a “powerful moral constraint” while lenders are busily trying to maximize profits. More important, it might get the system unstuck. If lenders feared an avalanche of strategic defaults, they would have an incentive to renegotiate loan terms. In theory, this could produce a wave of loan modifications — the very goal the Treasury has been pursuing to end the crisis.

No one says defaulting on a contract is pretty or that, in a perfectly functioning society, defaults would be the rule. But to put the onus for restraint on ordinary homeowners seems rather strange. If the Mortgage Bankers Association is against defaults, its members, presumably the experts in such matters, might take better care not to lend people more than their homes are worth.

Roger Lowenstein, an outside director of the Sequoia Fund, is a contributing writer for the magazine. His book “The End of Wall Street” is coming out in April.

Questions? email scottbishop@windermere.com or online LewisBishop.com

How short-selling your house affects your taxes: Ask the Expert

Sat, 09 Jan 2010 19:29:03 GMT

Cleveland Ohio Business News

The Expert: Elisabeth C. Plax, president, Plax & Associates Financial Services; branch manager, LPL Financial, Beachwood. (Securities and financial planning offered through LPL Financial/member FINRA, SIPC)

Credentials: Doctorate, MBA, certified financial planner, securities and insurance licenses

Experience: 26 years in personal financial planning, wealth management and retirement/estate planning

Assets under management: $48 million

The Question: I just sold my home (after two long years on the market) but it was a short sale. Someone said the forgiven balance will count as income that I'll have to pay taxes on. Is this true? I thought some of the new laws were supposed to make it easier for consumers. If I owe taxes on this, can I spread them out over a period of years?

The Answer: New laws did make it easier for consumers. A short sale occurs when your mortgage lender agrees to allow you to sell your home at a price that is less than the balance of your mortgage. At the same time, the lender cancels or reduces the debt you owe.

Example: You bought your home for $150,000 a few years ago and still owe $120,000 on the mortgage. The home is now worth $100,000. If the lender allows you to sell the home for $100,000 and cancels the remaining $20,000 of mortgage debt, that is a short sale.

The decision to allow a short sale is clearly up to the lender. It is more complicated and requires more time than the standard sale of a home.

Typically, the lender will issue a form 1099C (cancellation of debt), and the amount canceled would be taxable as income to the borrower (seller). In the example above (not taking closing fees into account), $100,000 from the proceeds of the sale would go back to the lender. The amount of debt canceled would be $20,000.

However, current law allows short sales of a principal residence completed during 2007 through 2012 to exclude the forgiven balance from taxable income, up to $1 million for a single filer and up to $2 million for a joint return.

For more detailed information, consult IRS Publication 4681 or your tax adviser.

Questions? email scottbishop@windermere.com or online LewisBishop.com

Lifeline for homeowners

Sat, 02 Jan 2010 12:08:28 GMT

Merced Sun Star: Lifeline for homeowners - California and four other states lead the nation in 'underwater' mortgages.

Our View: Lifeline for homeowners
California and four other states lead the nation in 'underwater' mortgages.

Entering the new year, California continues to be the blue lagoon for the mortgage mess. It is one of five states leading the nation in "underwater" mortgages, where the value of a home is less than what the homeowner owes on the mortgage. That situation extends the housing meltdown to homeowners with good credit.

As 2010 begins, the governor and lawmakers have an opportunity to make a new start, ensuring that California leads the nation in getting homeowners above water. While federal measures can help, they do not fully address California's situation or those in the same leaky submarine -- Nevada, Arizona, Florida, Michigan. Those states will have to forge solutions.

Thirty-five percent of California mortgages are under water, according to First American CoreLogic. In the Sacramento metro area, it is 44 percent. For its own self interest, California in 2010 should vow to be a national leader in dealing with this issue.

Law professor Brent T. White, in an important new paper, "Under Water and Not Walking Away," describes the problem: A young professional couple with excellent credit and a solid income bought an average three-bedroom house in Salinas for $585,000 in 2006. Their monthly payment is $4,300. Then the housing bubble burst and their house now is worth only $187,000 -- though they still owe $560,000 on their mortgage. He estimates it would take them more than 60 years just to recover their equity.

The problem for them -- and 2.4 million of 6.9 million California mortgage holders (the most in the nation) -- is that lenders failed to ensure that homes were actually worth what they sold for. Lenders in the appraisal process simply ignored bubble prices if the borrower seemed able to make monthly payments.

So what can underwater homeowners do? In White's example, the couple could continue to pay $4,300 a month. Or they could go into foreclosure, rent a place for $1,000 a month, and in a few years buy a home selling at a pre-bubble price of $180,000 with monthly payments of $1,200. Or they could approach their lender/loan servicer and attempt to get a loan modification that reflects the home's real value, voluntarily writing down some of the principal.

The latter is the best solution for everybody. The problem is, such loan modifications just aren't happening.

The much-heralded California Foreclosure Prevention Act signed by the governor in February was supposed to require a 90-day moratorium on foreclosure and encourage modifications by exempting lenders who had a "comprehensive loan modification program in place." What has that act actually accomplished? Very little. The entire nation has seen only 32,000 loan modifications.

And none of the bills signed by the governor last October, taking effect this year, addresses this issue.

California policymakers can do something very simple when they come back this week: Require lenders/servicers to evaluate borrowers for alternatives to foreclosure, such as loan modification, before filing notices of default.

That would require lawmakers to stand up to lenders that are a powerful force in the Capitol, but they must do so. If California doesn't take matters into its own hands, the still-sinking housing market will remain submerged.

The Truth About Mortgage Modifications

Mon, 02 Nov 2009 08:23:35 GMT

The decisions you make as a homeowner today hold a profound impact on your financial future. However, it is important to safeguard yourself from misinformation and fraud. Get the facts regarding your situation and always have a contingency plan.

For those who qualify, a mortgage modification is the ideal remedy to their financial distress. I’ve prepared a FREE report on the truth about mortgage modifications to guide you through this important process. Simply provide your information below to get this valuable information, and feel free to pass it along to anyone who may need it. One homeowner lost to foreclosure is one too many!

As a Certified Distressed Property Expert, I have training and experience in providing solutions to homeowners facing financial hardship. Together, we can formulate a plan to get back on track.

If you have any unanswered questions, or your circumstances are urgent, please call me today.

Questions? email scottbishop@windermere.com or online LewisBishop.com

Options and Solutions

Thank you for visiting this site and taking the first step toward finding answers. I appreciate what it has taken for you to come here, and commend your efforts to get the facts about your situation. The current real estate environment can be frustrating, with misinformation and conflicting plans for how to proceed.

As a real estate agent, what I often see in troubled homeowners is a belief that they are alone with their challenges. Regrettably, over 70% of homeowners in foreclosure proceed without ANY visible assistance. This is not acceptable for the communities I serve.

That's why I've developed this site: to ensure you get the valuable resources that can reduce your financial strain and change your life for the better. As a CDPE I know the options for homeowners in foreclosure or delinquent on their mortgages, and I can send you a report detailing this information, prepared just for you.

Simply enter your information below and click "Send." I hope that you will review this information carefully, so that your next steps are the right steps toward a real solution.

Let me help you evaluate your options and get back on track to a solid, stable future.

Questions? email scottbishop@windermere.com or online LewisBishop.com

Foreclosure Vs. Short Sale

As a Certified Distressed Property Expert, I have devoted my career to helping homeowners who face difficult situations, taking them from uncertainty to resolution. Lately I've found a lot of conflicting information going around, especially concerning short sales, which you should know about.

A short sale occurs when a lender accepts the selling price of a home, even if it is less than the full amount owed on the mortgage. For particular homeowners, this can be the best option to foreclosure. Yet, I still hear people suggest that short sales are basically the same as foreclosure.

This is absolutely wrong!

You need to have the CORRECT information. That’s why I'm glad you're here. To help, I’ve prepared a free report—just for you—that compares the realities of foreclosures and short sales side-by-side. Simply provide your information below, and I'll send you this report.

If you have any additional concerns about this issue, or your circumstances are urgent, please feel free to give me a call. I can help you evaluate your options and get you back on track to a secure financial future.

Questions? email scottbishop@windermere.com or online LewisBishop.com

7 Short Sale Myths

There are millions of homeowners just like you who are looking for answers and don’t know what to do. You’re not alone and you’re in the right place.

As a Certified Distressed Property Expert, I have training and experience in providing solutions to homeowners facing financial hardship. Despite my best efforts, there’s still an overwhelming amount of misinformation about the options available, especially short sales.

To give you a better idea of the short sale option, and to set straight some of the myths you may have heard, I’ve prepared a free report just for you - please fill out the information below to receive your free report. This report will clarify the following myths:

The Bank Would Rather Foreclose Than Bother With A Short Sale
You Must Be Behind On Your Mortgage To Negotiate A Short Sale
There Is Not Enough Time To Negotiate A Short Sale Before My Foreclosure
Listing My Home As A Short Sale Is An Embarrassment
Short Sales Are Impossible And Never Get Approved
Banks Are Waiting On A Bailout And Not Accepting Short Sales
Buyers Are Not Interested In Short Sale Properties

These ideas are potentially harmful to homeowners seeking real solutions. I hope you’ll review this information for yourself or share it with a homeowner in need.

In these times, we all need to know the truth to know how to get back on track.

If you have any additional concerns about this issue, or your circumstances are urgent, please give me a call.

Questions? email scottbishop@windermere.com or online LewisBishop.com

Short Sale & Deed-In-Lieu

Contrary to what you may have heard, lenders actually want to avoid foreclosure wherever possible. That’s why they’re accepting more short sale and deed-in-lieu transactions everyday in an effort to eliminate unnecessary foreclosures. This is great news for homeowners facing financial distress.

To help you understand more about these two options, I’ve prepared a free report just for you, called ‘Short Sale & Deed-in-Lieu: Dignified Solutions.’ To receive your free report, please provide your information in the fields below.

I hope you’ll review these options carefully and pass this information along to those who may need it. I commend your efforts to finding a solution to the difficult financial situation that you or someone you know is currently facing. Providing the best advice and information in your time of need is my priority.

Let me help you evaluate your options and get you back on track to a secure financial future.

Questions? email scottbishop@windermere.com or online LewisBishop.com

Your First Steps To Avoid Foreclosure

In today’s market, 1 in 7 homeowners is having trouble paying the mortgage. More than 70% of these homeowners proceed without seeking assistance or getting the facts. Many do not even realize that foreclosure is a process, and that there is time to make decisions that may result in a better outcome.

You are not alone. Millions of other homeowners nationwide are in the same circumstances. To assist you, I’ve prepared a free report outlining the first steps a homeowner should take when facing a foreclosure.

Fill out your information below for this free report. Don’t hesitate. Get back on track today!

Questions? email scottbishop@windermere.com or online LewisBishop.com

Strategic Defaults are NOT Strategic

Walking Away Is NOT The Answer

You may have heard that a “strategic default” can be an appropriate and even beneficial reaction to an upside-down mortgage or impending foreclosure. While this idea is widespread, the truth is that default is never an easy road to choose, and rarely ever strategic.

Unfortunately, the ramifications of a “strategic default” are rarely explained, leaving many homeowners stranded on an island of misinformation. To assist you, I’ve prepared a free report outlining the myths and misrepresentations of strategic defaults.

Fill out your information below for this free report. Don’t hesitate. Get the facts today!

Avoiding Mortgage Modification Fraud

I Am An Agent Against Mortgage Fraud!

The last thing struggling homeowners need is to be victimized by fraud. Sadly, some people are preying on those who need help the most. Today, the real estate industry is the newest, biggest target for predatory schemes. In fact, the U.S. Attorney General, Eric Holder, stated that mortgage fraud cases are 400 percent higher than they were five years ago.

With nearly 1 in 6 homeowners unable to pay their mortgages, understand that you are not alone. Knowing your legitimate foreclosure-avoidance options is the best way to fight this terrible trend.

The report on this site will tell you how to avoid mortgage fraud schemes, as well as what solutions are available to you. Enter your information below and get the facts now!

Understanding HAFA

New Help Has Arrived!

The rising number of foreclosures in this country is simply too big to ignore. That is why a government-backed program has been released that aims at streamlining foreclosure avoidance options.

Short sales and deeds-in-lieu are dignified solutions to foreclosure, and now the government is making them easier, quicker and more accessible through the Home Affordable Foreclosure Alternatives Program, or HAFA.

With one in six homeowners struggling to make mortgage payments, you are not alone, and there are options available. With the free report provided here, find out if you qualify for the HAFA Program. Simply fill out your information below to get started on your new chapter of financial stability.

Please read this report to learn the facts, and contact me to begin your journey to a solid, stable tomorrow.

Government Program Surveys

Are You Eligible?

The government programs currently available to homeowners can be valuable resources, but only if you know which ones are right for your situation.

That’s why I’ve created this free resource that lets you find out which programs you’re eligible for. Read the descriptions for each program to see which one fits your situation, then fill out the corresponding survey to see if you are eligible.

Find out now if you are eligible!

The good news is that programs exist for a variety of situations, and even more options are available beyond those programs. As a CDPE-designated agent, I can provide all of your possibilities and help you get moving toward a solution.

Cash for Short Sales

Short Sales are More Valuable Than Ever!

Avoiding foreclosure is always a smart move, but now there are incentives that make it an even better one.

Short sales and deeds-in-lieu are dignified solutions to foreclosure, and now the government is making them easier and quicker through the Home Affordable Foreclosure Alternatives Program, or HAFA, which also gives the homeowner $3,000 for participating.

With the free report provided here, you can learn all the benefits of completing a HAFA short sale. Simply fill out your information below for details on the program and how you would benefit.

Please read this report to learn the facts, and contact me to start exploring solutions.

A Dignified Solution

You Deserve a Dignified Solution

The economy today has been especially hard on homeowners. I meet people every day who thought they made a responsible decision on their mortgage loan, only to be hit with the unexpected.

The first and best move to make in this position is to educate yourself on what your options are based on your financial situation. Avoiding foreclosure is always something worth pursuing if you can, and there really are dignified alternatives available.

To get my free report on all the options and benefits of avoiding foreclosure, fill out the form below and click "Send". If you need immediate assistance, please contact me right away.

I'm here to help.

Credit Score Issues

Don't Let Your Credit Score Drop Unnecessarily

Avoiding foreclosure now could make or break your attempts to get a loan in the near future and determine whether you can get affordable interest rates.

That's why I've made this site available for anyone in our community struggling with mortgage payments. Foreclosure alternatives like short sales and deeds-in-lieu allow homeowners to avoid many of the damaging effects of foreclosure. In addition, short sales may have less of an impact on credit scores than foreclosure.

To get all the information on how these options affect your credit score, fill out the form below and click "Send". If you need immediate assistance, contact me right away.

I'm here to assist you.

Hidden Costs of Bankruptcy

Considering filing for bankruptcy? There may be alternatives you've never considered …

If you are having trouble paying your mortgage and are possibly considering bankruptcy, there may be better solutions for your particular circumstances. I've created the free report available on this page, "The Hidden Costs of Bankruptcy," to provide more information.

Alternatives to foreclosure, such as conducting a short sale and moving into a rental residence with less expensive payments, may offer the breathing room you need to reorganize your finances.

To get your free report, fill out the form below and click send. However, if your situation is urgent and you need immediate assistance, please don't hesitate to contact me.

I'm here to assist you.

Short Sale vs. Foreclosure

Foreclosure or Short Sale: Understand the Differences

Underwater on your mortgage? Facing foreclosure? Avoiding foreclosure through a short sale can have many benefits for your future financial stability.

I created this site to help spread the word about the options to avoiding foreclosure, and a short sale has many benefits. A successful short sale can reduce the damage to one's future loan eligibility, credit rating, employment, security clearance and more.

For a free report on the differences between short sales and foreclosure, fill out the form below and click "Send". If your situation is urgent, feel free to contact me immediately. I'm ready to help you take action and secure a more secure financial future.

As a CDPE-designated agent, I've been trained to pursue foreclosure alternatives, and I'm here to help.