Bank of America Corp. will permanently cut up to 30 percent from home loan balances for tens of thousands of struggling borrowers under a new program that some predict will become industry norm.
The plan, announced Wednesday, was virtually unthinkable just months ago.
So taboo was the idea of forgiving principal amounts, that some lenders refused to comment when Ron Faris, president of West Palm Beach-based Ocwen Financial Services, promoted it as a solution to the continuing foreclosure crisis before a congressional committee earlier this month.
But with millions of Americans underwater on their home loans, and increasingly willing to walk away, bank officials said Wednesday that cutting loan amounts is necessary to reduce defaults.
“The banks have been reluctant to come to the reality that ‘Houston, we have a problem,’” said Michael Sichenzia, president of Dynamic Consulting Enterprises in Deerfield Beach. “It’s inevitable more banks will follow. The cost to administer foreclosures is growing exponentially.”
Bank of America, which estimates it has 1.5 million home loans that are 60 or more days behind on payments, calls its plan “earned principal forgiveness.”
To qualify, a borrower must prove financial hardship, be two months delinquent in payments, and owe at least 20 percent more on the loan than the home is worth.
The program targets the riskiest home loans awarded during the real estate boom including subprime adjustable rate mortgages and certain loans that have a fixed interest rate for the first two years before adjusting annually.
Under the new plan, which begins in May, a portion of the principal balance will be set aside interest free. That principal can then be forgiven over five years if the homeowner stays current on new lowered payments.
Obama Expands Foreclosure-Prevention Efforts
The White House will announce Friday an expansion of its foreclosure-prevention efforts to include reducing the mortgage loan balances for some distressed borrowers and giving temporary help to the unemployed, people familiar with the plans said.
In the latest overhaul of the year-old mortgage-loan modification program, these people said, the White House will announce plans to allow unemployed borrowers to receive sharply reduced payments—or a break from making any payments—for at least three months and up to six months. The revamp will also require banks to consider writing down loan balances as part of the formula for lowering monthly payments under the federal Home Affordable Modification Program, or HAMP.
In addition, the administration will introduce a program that uses the Federal Housing Administration to insure new loans for borrowers who are underwater, owing more than the current values of their homes.
Under that program, investors who reduce loan balances to 96.5% of the current property value would refinance borrowers into an FHA-backed loan. Investors would have to reduce first-lien mortgages by at least 10%. For properties that have second-lien mortgages, the program is designed to reduce the total mortgage debt to no more than 115% of the estimated property value. Banks that hold second-liens will be eligible for incentive payments if they write down those loans so borrowers can qualify.
To pay for the expanded program, the administration will allocate $14 billion in money from the Troubled Asset Relief Program that had already been earmarked for foreclosure prevention efforts.
An administration official said that the program adjustments were designed to “better assist responsible homeowners who have been affected by the economic crisis through no fault of their own.” The administration is trying to walk a fine line, offering more help to the most troubled homeowners without encouraging people who can afford their payments to default in the hope of getting similar treatment.
Through my own experience the qualifiers do not help most people.
American Eagle Realty can help you with solid answers about your rights and options before your house is foreclosed on!
American Eagle Realty
www.american-eagle-realty.com
502-969-1801
Tuesday, March 30, 2010
Monday, March 29, 2010
Finding Mortgage Lenders After Bankruptcy
Post from Mortgage Second by Elizabeth Grant
Traditionally people who have been through bankruptcy have experienced problems in obtaining a mortgage but in recent years this has all changed and now there are more bankruptcy mortgage lenders than ever.
Bankruptcy Mortgages
The impossibility of getting a mortgage after bankruptcy would appear to be a thing of the past. There are now a plethora of bankruptcy mortgage lenders on the market.
Many people view bankruptcy as a fresh start only to find that it is just the beginning of their troubles. Getting any kind of loan or mortgage after bankruptcy can be a real headache. Even after being discharged as a bankrupt, after the usual three year period, you may still find it very difficult to obtain a mortgage. Regardless of your previous mortgage repayment record, few high street mortgage lenders will consider your mortgage application. From their point of view the risk of lending you money is simply too high. However, don’t give up hope too quickly, there are now specialists in the bankruptcy mortgage lender field who will consider lending you money. While bankruptcy may remain on your credit record for up to ten years, and may result in higher interest rates, filing for bankruptcy will not totally prevent you from receiving a mortgage.
How to Choose a Bankruptcy Mortgage Lender
Many people find that choosing a bankruptcy mortgage lender, even in the current market circumstances, is not as difficult as they first think. There are a number of traditional mortgage lenders who simply will not even consider lending to those after bankruptcy and so they are fairly easily wiped from the list. This leaves you with a limited number of mortgage lenders. The best way to ensure success with these is to work hard to improve your credit rating by paying your debts following the bankruptcy on time. By taking a few simple steps you may find you are able to obtain a good rate from a sub prime lender.
For those with a history of bankruptcy looking to get a mortgage then it is highly advisable to visit a specialist mortgage broker who has specialist experience of the market and can scan for the latest deals and offers. By choosing a good bankruptcy mortgage broker, you ensure that you will receive multiple offers from a variety of sub prime lenders, allowing you to make an ideal rate comparison.
The question is: what constitutes a good bankruptcy mortgage broker? You need to ensure that the bankruptcy mortgage broker is giving you impartial advice and is not trying to take advantage of your situation. The best way to do this is to ensure that the mortgage broker you use is FSA approved and that you go to several brokers who will offer you a variety of bankruptcy mortgage lenders for you to compare. You will need to pay particular attention to the fees charged.
American Eagle Realty cannot help you find a lender after bankruptcy, but we can help you with solid answers about your rights and options before your house is foreclosed on! And may be able to keep you from Bankruptcy!
American Eagle Realty
www.american-eagle-realty.com
502-969-1801
Traditionally people who have been through bankruptcy have experienced problems in obtaining a mortgage but in recent years this has all changed and now there are more bankruptcy mortgage lenders than ever.
Bankruptcy Mortgages
The impossibility of getting a mortgage after bankruptcy would appear to be a thing of the past. There are now a plethora of bankruptcy mortgage lenders on the market.
Many people view bankruptcy as a fresh start only to find that it is just the beginning of their troubles. Getting any kind of loan or mortgage after bankruptcy can be a real headache. Even after being discharged as a bankrupt, after the usual three year period, you may still find it very difficult to obtain a mortgage. Regardless of your previous mortgage repayment record, few high street mortgage lenders will consider your mortgage application. From their point of view the risk of lending you money is simply too high. However, don’t give up hope too quickly, there are now specialists in the bankruptcy mortgage lender field who will consider lending you money. While bankruptcy may remain on your credit record for up to ten years, and may result in higher interest rates, filing for bankruptcy will not totally prevent you from receiving a mortgage.
How to Choose a Bankruptcy Mortgage Lender
Many people find that choosing a bankruptcy mortgage lender, even in the current market circumstances, is not as difficult as they first think. There are a number of traditional mortgage lenders who simply will not even consider lending to those after bankruptcy and so they are fairly easily wiped from the list. This leaves you with a limited number of mortgage lenders. The best way to ensure success with these is to work hard to improve your credit rating by paying your debts following the bankruptcy on time. By taking a few simple steps you may find you are able to obtain a good rate from a sub prime lender.
For those with a history of bankruptcy looking to get a mortgage then it is highly advisable to visit a specialist mortgage broker who has specialist experience of the market and can scan for the latest deals and offers. By choosing a good bankruptcy mortgage broker, you ensure that you will receive multiple offers from a variety of sub prime lenders, allowing you to make an ideal rate comparison.
The question is: what constitutes a good bankruptcy mortgage broker? You need to ensure that the bankruptcy mortgage broker is giving you impartial advice and is not trying to take advantage of your situation. The best way to do this is to ensure that the mortgage broker you use is FSA approved and that you go to several brokers who will offer you a variety of bankruptcy mortgage lenders for you to compare. You will need to pay particular attention to the fees charged.
American Eagle Realty cannot help you find a lender after bankruptcy, but we can help you with solid answers about your rights and options before your house is foreclosed on! And may be able to keep you from Bankruptcy!
American Eagle Realty
www.american-eagle-realty.com
502-969-1801
Wednesday, March 24, 2010
Build Your Business in 21 Days!
Good Advice for any Business you want to build......
"BUILD your Business in just 21 days!" By Tom Wood
=================================================================
Most leaders I've met built their business in 21 days.
It wasn't always their first 21 days, but the moment they decided to do
the business it was 21 days of pure focus. Total energy. Massive commitment.
You only have to do this once.
When you do, you will be rewarded for the rest of your life. You'll tell your children's children about
these 21 days. As they enjoy an incredible lifestyle in a big beautiful home, you'll reminisce about
those 3 weeks where you decided on your destiny, and put into action a plan. Anyone can do this.
The goal is 10 new recruits in 21 days.
There are a few commitments you'll need to make to pull this off:
1. Live outside your comfort zone
2. Act "unreasonable"
3. Eliminate outside distractions
4. Be totally on purpose
5. Commit to doing "whatever it takes"
6. Stay system dependent
7. AOMA - All Out Massive Action
PART-TIME (15 hours per week)
1. Set a goal of 10 sales in 21 days
2. Set a goal of 10 new recruits in 21 days
3. Make 5 calls per day, minimum
4. Attend weekly briefing with 2-4 guests every week
5. Have 2-4 guests on each recruiting conference call
6. Have all associates plug into training calls/events
FULL-TIME (40+ Hours per week)
1. Set a goal of 21 sales in 21 days
2. Set a goal of 21 new recruits in 21 days
3. Make 21 calls per day, minimum
4. Attend weekly briefings with 3-5 guests
5. Have 5-7 guests on each recruiting conference call
6. Have all associates plug into training calls/events
That's all it takes. It's not brain surgery. All it requires is a little courage and a lot of action.
You'll do it, I believe in you.
Take out your journal, write down what you are committed to doing, and then sign it.
Don't worry about making it or not. That's not what's important here.
What's important is that you do whatever it takes to make it.
I hope you understand the difference, because it is the key to success in anything.
I'm telling you, if you set the goal for ten and only get three, you are FAR AHEAD
of the average person who set the goal for three and only got one.
Think Big.
MAKE IT HAPPEN!!!!!
American Eagle Realty
www.american-eagle-realty.com
502-969-1801
"BUILD your Business in just 21 days!" By Tom Wood
=================================================================
Most leaders I've met built their business in 21 days.
It wasn't always their first 21 days, but the moment they decided to do
the business it was 21 days of pure focus. Total energy. Massive commitment.
You only have to do this once.
When you do, you will be rewarded for the rest of your life. You'll tell your children's children about
these 21 days. As they enjoy an incredible lifestyle in a big beautiful home, you'll reminisce about
those 3 weeks where you decided on your destiny, and put into action a plan. Anyone can do this.
The goal is 10 new recruits in 21 days.
There are a few commitments you'll need to make to pull this off:
1. Live outside your comfort zone
2. Act "unreasonable"
3. Eliminate outside distractions
4. Be totally on purpose
5. Commit to doing "whatever it takes"
6. Stay system dependent
7. AOMA - All Out Massive Action
PART-TIME (15 hours per week)
1. Set a goal of 10 sales in 21 days
2. Set a goal of 10 new recruits in 21 days
3. Make 5 calls per day, minimum
4. Attend weekly briefing with 2-4 guests every week
5. Have 2-4 guests on each recruiting conference call
6. Have all associates plug into training calls/events
FULL-TIME (40+ Hours per week)
1. Set a goal of 21 sales in 21 days
2. Set a goal of 21 new recruits in 21 days
3. Make 21 calls per day, minimum
4. Attend weekly briefings with 3-5 guests
5. Have 5-7 guests on each recruiting conference call
6. Have all associates plug into training calls/events
That's all it takes. It's not brain surgery. All it requires is a little courage and a lot of action.
You'll do it, I believe in you.
Take out your journal, write down what you are committed to doing, and then sign it.
Don't worry about making it or not. That's not what's important here.
What's important is that you do whatever it takes to make it.
I hope you understand the difference, because it is the key to success in anything.
I'm telling you, if you set the goal for ten and only get three, you are FAR AHEAD
of the average person who set the goal for three and only got one.
Think Big.
MAKE IT HAPPEN!!!!!
American Eagle Realty
www.american-eagle-realty.com
502-969-1801
Thursday, March 18, 2010
A Wish For You
In honor of St. Patrick's Day here are few Irish Blessings:
“May you have the hindsight to know where you've been, The foresight to know where you are going, And the insight to know when you have gone too far”
May love and laughter light your days,
and warm your heart and home.
May good and faithful friends be yours,
wherever you may roam.
May peace and plenty bless your world
with joy that long endures.
May all life's passing seasons
bring the best to you and yours!
“May the road rise up to meet you, may the wind be ever at your back. May the sun shine warm upon your face and the rain fall softly on your fields. And until we meet again, May God hold you in the hollow of his hand.”
May God be with you and bless you.
May you see your children's children.
May you be poor in misfortunes
and rich in blessings.
May you know nothing but happiness
from this day forward.
“May the sun shine all day long, everything go right and nothing wrong. May those you love bring love back to you, and may all the wishes you wish come true!”
American Eagle Realty
www.american-eagle-realty.com
502-969-1801
“May you have the hindsight to know where you've been, The foresight to know where you are going, And the insight to know when you have gone too far”
May love and laughter light your days,
and warm your heart and home.
May good and faithful friends be yours,
wherever you may roam.
May peace and plenty bless your world
with joy that long endures.
May all life's passing seasons
bring the best to you and yours!
“May the road rise up to meet you, may the wind be ever at your back. May the sun shine warm upon your face and the rain fall softly on your fields. And until we meet again, May God hold you in the hollow of his hand.”
May God be with you and bless you.
May you see your children's children.
May you be poor in misfortunes
and rich in blessings.
May you know nothing but happiness
from this day forward.
“May the sun shine all day long, everything go right and nothing wrong. May those you love bring love back to you, and may all the wishes you wish come true!”
American Eagle Realty
www.american-eagle-realty.com
502-969-1801
Monday, March 8, 2010
Twenty Five per-cent of Homeoners are in some sort of Trouble
Nearly One In Four Homeowners are Under Water ...
It's not just mortgages lenders should be worried about. Consumers are also falling behind on car loans and credit card bills, according to TransUnion, one of three U.S. credit reporting agencies.
The percentage of vehicle loans 60 days or more past due rose 8.9 percent in the fourth quarter of 2008, with the numbers increasing sharply at the end of the year. At the same time, consumers who were 90 days or more behind in their credit card payments rose 11 percent in the same period, the company reported.
Since the current recession officially began in December 2007, delinquencies on auto loans have surged 25 percent, compared with a 10 percent increase in the 2001 recession. TransUnion said it expects that rate will increase as much as 16 percent before leveling off.
TransUnion says car owners are beginning to face the same problem as many homeowners who took out subprime mortgages with little or no money down — they now owe more than their car is worth.
Meanwhile, the average credit card debt, defined as the aggregate balance on all bank-issued credit cards for an individual bankcard borrower, inched upward nationally 0.33 percent to $5,729 from the previous quarter's $5,710, and 1.96 percent compared to the fourth quarter of 2007.
Read more: http://www.consumeraffairs.com/news04/2009/03/delinquencies_rise02.html#ixzz0hPAroGP6
American Eagle Realty cannot help you with your car payments or your credit card debt, but we can help you with solid answers about your rights and options before your house is foreclosed on!
American Eagle Realty
www.american-eagle-realty.com
502-969-1801
It's not just mortgages lenders should be worried about. Consumers are also falling behind on car loans and credit card bills, according to TransUnion, one of three U.S. credit reporting agencies.
The percentage of vehicle loans 60 days or more past due rose 8.9 percent in the fourth quarter of 2008, with the numbers increasing sharply at the end of the year. At the same time, consumers who were 90 days or more behind in their credit card payments rose 11 percent in the same period, the company reported.
Since the current recession officially began in December 2007, delinquencies on auto loans have surged 25 percent, compared with a 10 percent increase in the 2001 recession. TransUnion said it expects that rate will increase as much as 16 percent before leveling off.
TransUnion says car owners are beginning to face the same problem as many homeowners who took out subprime mortgages with little or no money down — they now owe more than their car is worth.
Meanwhile, the average credit card debt, defined as the aggregate balance on all bank-issued credit cards for an individual bankcard borrower, inched upward nationally 0.33 percent to $5,729 from the previous quarter's $5,710, and 1.96 percent compared to the fourth quarter of 2007.
Read more: http://www.consumeraffairs.com/news04/2009/03/delinquencies_rise02.html#ixzz0hPAroGP6
American Eagle Realty cannot help you with your car payments or your credit card debt, but we can help you with solid answers about your rights and options before your house is foreclosed on!
American Eagle Realty
www.american-eagle-realty.com
502-969-1801
Saturday, March 6, 2010
Foreclosures Make it a Buyers Market in Today's Economy
We hear a lot about foreclosures in the news today. To give you an idea of how big the problem is, according to realtrac.com there are 5,411 homes for sale on Louisville Jefferson County.
There are 1,214 home owners in default, there are 1,944 bank owned properties that are part of the 5400 home for sale and a another 1200 getting ready to go on the market.
Can anyone say "Home Value" In the near future 58% of the homes for sale in Jefferson County is due to either defaults or foreclosures? This means for the investor or the buyer this is a buyer’s market and there is no better time to be looking for the right investment for the future.
The delinquency rate for mortgage loans on one-to-four-unit residential properties fell to a seasonally adjusted rate of 9.47% of all loans at the end of the fourth quarter of 2009, according to the Mortgage Bankers Assn. That's down from 9.64% in the third quarter.
"This is a key sign that housing market conditions are slowly, grudgingly getting slightly better," said Mike Larson, a real estate analyst at Weiss Research. "This does not mean we'll have a vigorous recovery. We won't. Many loan [modifications] will fail, the unemployment rate remains elevated, and lending standards will remain relatively strict for some time."
In a sign that delinquencies may be leveling off, the number of loans past due by 30 days and 60 days declined compared with the third quarter of 2009 and the fourth quarter of 2008.
The number of loans going into foreclosure, though up from a year earlier, declined compared with the third quarter as efforts to modify mortgages took hold.
But the portfolio of loans more than 90 days past due -- containing mortgages being evaluated for modifications -- continued its rise to record levels.
That indicates that there is still much short-term pain for the housing markets to endure as many homes fall into foreclosure.
The group said 4.99% of all prime fixed-rate loans, the kind made to the best-qualified borrowers, were categorized as seriously delinquent (that is, in foreclosure or more than 90 days past due), up from 2.25% a year earlier.
For prime adjustable-rate loans, the category containing tricky pay-option mortgages, 18.13% were seriously delinquent, compared with 10.45% a year earlier.
And 42.7% of subprime adjustable loans were seriously delinquent, up from 33.78% in the fourth quarter of 2008.
If you are seriously looking for foreclosure answers and help, or you are looking for that "great deal" in a buyers market we can meet all of your needs!
American Eagle Realty
www.american-eagle-realty.com
502-969-1801
There are 1,214 home owners in default, there are 1,944 bank owned properties that are part of the 5400 home for sale and a another 1200 getting ready to go on the market.
Can anyone say "Home Value" In the near future 58% of the homes for sale in Jefferson County is due to either defaults or foreclosures? This means for the investor or the buyer this is a buyer’s market and there is no better time to be looking for the right investment for the future.
The delinquency rate for mortgage loans on one-to-four-unit residential properties fell to a seasonally adjusted rate of 9.47% of all loans at the end of the fourth quarter of 2009, according to the Mortgage Bankers Assn. That's down from 9.64% in the third quarter.
"This is a key sign that housing market conditions are slowly, grudgingly getting slightly better," said Mike Larson, a real estate analyst at Weiss Research. "This does not mean we'll have a vigorous recovery. We won't. Many loan [modifications] will fail, the unemployment rate remains elevated, and lending standards will remain relatively strict for some time."
In a sign that delinquencies may be leveling off, the number of loans past due by 30 days and 60 days declined compared with the third quarter of 2009 and the fourth quarter of 2008.
The number of loans going into foreclosure, though up from a year earlier, declined compared with the third quarter as efforts to modify mortgages took hold.
But the portfolio of loans more than 90 days past due -- containing mortgages being evaluated for modifications -- continued its rise to record levels.
That indicates that there is still much short-term pain for the housing markets to endure as many homes fall into foreclosure.
The group said 4.99% of all prime fixed-rate loans, the kind made to the best-qualified borrowers, were categorized as seriously delinquent (that is, in foreclosure or more than 90 days past due), up from 2.25% a year earlier.
For prime adjustable-rate loans, the category containing tricky pay-option mortgages, 18.13% were seriously delinquent, compared with 10.45% a year earlier.
And 42.7% of subprime adjustable loans were seriously delinquent, up from 33.78% in the fourth quarter of 2008.
If you are seriously looking for foreclosure answers and help, or you are looking for that "great deal" in a buyers market we can meet all of your needs!
American Eagle Realty
www.american-eagle-realty.com
502-969-1801
Monday, March 1, 2010
Foreclosure Forecast for 2010
The number of U.S. households facing foreclosure in January increased 15 percent from the same month last year.
More than 315,000 households received a foreclosure-related notice in January, RealtyTrac Inc. reported February 11,2010. January marked the 11th straight month with more than 300,000 properties receiving a foreclosure filing
Six states account for nearly 60% of national total California, Florida and Arizona posted the three highest state totals in terms of properties receiving foreclosure filings in January, and together those states accounted for more than 44% of the national total.
Illinois posted the nation’s fourth highest total in January, with 18,120 properties receiving a foreclosure filing during the month—a nearly 2% increase from the previous month and a 25% increase from January 2009.
Michigan posted the nation’s fifth highest total, with 17,574 properties receiving a foreclosure filing, and Texas posted the sixth highest total, with 12,225 properties receiving a foreclosure filing.
Other states with totals among the 10 highest in the country were Nevada (11,854), Georgia (11,274), Ohio (11,105) and New Jersey (6,146).
Issues, such as unemployment or reduced income, are expected to be the main catalysts for foreclosures this year. Homeowners with good credit who took out conventional, fixed-rate loans are the fastest growing group of foreclosures.
There is an answer and we can help.
American Eagle Realty 502-969-1801
More than 315,000 households received a foreclosure-related notice in January, RealtyTrac Inc. reported February 11,2010. January marked the 11th straight month with more than 300,000 properties receiving a foreclosure filing
Six states account for nearly 60% of national total California, Florida and Arizona posted the three highest state totals in terms of properties receiving foreclosure filings in January, and together those states accounted for more than 44% of the national total.
Illinois posted the nation’s fourth highest total in January, with 18,120 properties receiving a foreclosure filing during the month—a nearly 2% increase from the previous month and a 25% increase from January 2009.
Michigan posted the nation’s fifth highest total, with 17,574 properties receiving a foreclosure filing, and Texas posted the sixth highest total, with 12,225 properties receiving a foreclosure filing.
Other states with totals among the 10 highest in the country were Nevada (11,854), Georgia (11,274), Ohio (11,105) and New Jersey (6,146).
Issues, such as unemployment or reduced income, are expected to be the main catalysts for foreclosures this year. Homeowners with good credit who took out conventional, fixed-rate loans are the fastest growing group of foreclosures.
There is an answer and we can help.
American Eagle Realty 502-969-1801
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