{"id":322,"date":"2013-02-18T12:11:54","date_gmt":"2013-02-18T16:11:54","guid":{"rendered":"http:\/\/www.realestatejunkie.com\/blog\/?p=322"},"modified":"2013-02-18T12:11:54","modified_gmt":"2013-02-18T16:11:54","slug":"happy-valentines-day-the-facts-about-loan-modifications","status":"publish","type":"post","link":"https:\/\/www.realestatejunkie.com\/blog\/happy-valentines-day-the-facts-about-loan-modifications\/","title":{"rendered":"Happy Valentine\u2019s Day \u2013 The Facts about Loan Modifications"},"content":{"rendered":"

Happy Valentine\u2019s Day Everyone\u00a0 the facts about loan modifications!!<\/strong><\/em><\/p>\n

Today is a great day to tell anyone and everyone you see and know Happy Valentine\u2019s Day. Many of the Sellers that are upside down on their home are stressed out and don\u2019t know what to do.\u00a0 First off, I want all Sellers to know that when they got a loan from the bank their money was given to the bank from an investor.\u00a0 This investor could be a trust, reit, or maybe the government.\u00a0 The bank guaranteed the investor or group of investors a set interest rate.\u00a0 Many Sellers are attempting a loan modification hoping to keep their house.\u00a0 I always ask my Sellers if could wave my wand what do you want from the bank.\u00a0 Most of them will answer that they want the bank to reduce their balance on their loan or they want a certain amount for their monthly payment.\u00a0 Here are some facts I want to share this Valentine\u2019s Day with the Sellers:<\/p>\n

1.\u00a0 During a loan modification the bank is still continuing with the foreclosure.<\/p>\n

2.\u00a0 I have not spoken with a Seller yet that got a reduction in the value of their home on a homesteaded property and I have done over 500 short sales.<\/p>\n

3. The monthly payment the Seller wants makes no sense.\u00a0 They are not considering how much their taxes and insurance is on the property nor are they considering the interest that will be charged for the loan amount.\u00a0 Example:\u00a0 Seller owes $300,00,000 on the loan at 4% for 30 years is $1,432.25\u00a0 \u2013 Yearly Taxes are $3,000 per year $250.00 a month \u2013 Insurance is $1,500 per year \u2013 $125.00 per month –\u00a0 Total monthly payment NOT INCLUDING HOA (homeowners association dues) would be $1,807.25.\u00a0 Many Sellers want a lower payment than this amount because they can\u2019t afford it.<\/p>\n

4.\u00a0 I have only seen the bank take the monthly payments that they are behind plus interest, late fees and attorney fees and add it to the end of the mortgage and\/or change it to a 40 year mortgage.\u00a0 Which would make their monthly payment $1,253.82 on the loan plus taxes and insurance would be $1,628.82.<\/p>\n

So on Valentine\u2019s Day I just want to let all the Sellers going through this difficult time that your home is where your heart is and may God Bless you during this difficult time.<\/p>\n

So should a Seller do a short sale? First you need a good negotiator working on your file.\u00a0 Benefits of a short sale:<\/p>\n

1.\u00a0 The Forgiveness of Debt Act which expires on December 31, 2013 allows Sellers who own their properties as homestead to waive the tax ramifications should the bank forgive the debt.\u00a0 Up to 1 Million Dollars for a Single Individual and $2 Million Dollars for a married couple.<\/p>\n

2.\u00a0 The Bank will report the short sale on their credit report as being settled for less.<\/p>\n

3.\u00a0 The Sellers may receive some money to relocate.<\/p>\n

4.\u00a0 The Sellers may not have to pay a cash contribution or a promissory note.\u00a0 Again this depends on your negotiator\/realtor.<\/p>\n

5.\u00a0 The Bank will not go after the Seller for the difference if you get a full satisfaction otherwise they have the right to collect on the Seller for up to 25 years.<\/p>\n

6.\u00a0 The stress is gone and they have relocated into a bigger and better home most of the time.<\/p>\n

I would recommend on this Valentine\u2019s Day that a Seller give their family and themselves the gift of decision.\u00a0 Please read my Special Report on Foreclosure which talks about all your options.\u00a0 www.FreeFactsAboutForeclosure.com <\/a><\/p>\n

\u00a0<\/a><\/p>\n

Again your home is where your HEART IS and your family will go wherever you go.<\/p>\n

May this Valentine\u2019s Day you find peace.<\/p>\n

Kimberlee Frank \u2013 Broker<\/p>\n

www.SellFastRealty.com<\/p>\n","protected":false},"excerpt":{"rendered":"

Happy Valentine\u2019s Day Everyone\u00a0 the facts about loan modifications!! Today is a great day to tell anyone and everyone you see and know Happy Valentine\u2019s Day. Many of the Sellers that are upside down on their home are stressed out and don\u2019t know what to do.\u00a0 First off, I want all Sellers to know that […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1,11],"tags":[74,8],"class_list":["post-322","post","type-post","status-publish","format-standard","hentry","category-local-guru","category-free-articles","tag-loan-modification","tag-short-sales"],"_links":{"self":[{"href":"https:\/\/www.realestatejunkie.com\/blog\/wp-json\/wp\/v2\/posts\/322","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.realestatejunkie.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.realestatejunkie.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.realestatejunkie.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.realestatejunkie.com\/blog\/wp-json\/wp\/v2\/comments?post=322"}],"version-history":[{"count":0,"href":"https:\/\/www.realestatejunkie.com\/blog\/wp-json\/wp\/v2\/posts\/322\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.realestatejunkie.com\/blog\/wp-json\/wp\/v2\/media?parent=322"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.realestatejunkie.com\/blog\/wp-json\/wp\/v2\/categories?post=322"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.realestatejunkie.com\/blog\/wp-json\/wp\/v2\/tags?post=322"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}