June 4, 2012

Mortgage Debt Relief Act Extended Through 2015

Time is Running Out: 

How the Mortgage Debt Relief Act can save your home and money.

In 2007, the Mortgage Debt Relief Act was passed in an attempt to help the millions of homeowners who, due to the housing crisis and economic crash, suddenly found themselves in danger of losing their home to foreclosure.

Many San Diego area homeowners are currently able to sell their homes and not pay Capital Gains Tax on the “Debt Relief”. That means if you owed $500,000 and sold you home for $300,000 you would not have to pay ordinary income tax on the $200,000 that you “gained” because the bank forgave the debt.

The act has helped many distressed homeowners find solutions to avoid foreclosure and opened up options to them that were previously unavailable. Dennis & Sunshine have helped many people through this process…at no cost!

The Mortgage Debt Relief Act was intended to be a temporary solution which was slated to expire at the end of 2012. However, the Mortgage Debt Relief Act has been extended for 2014 & 2015 for both California and the US.  For distressed homeowners who faced possible foreclosure in 2014, this means that there is still time for you to take advantage of this program.

But, time is running out as the Act was extended only through this year. There is still a chance to change your financial direction and avoid foreclosure. If you wait too long, you may have to pay income tax on the difference you owe the bank and what the home sells for in a Short Sale.

Since it may take up to 6 months to sell your home in a Short Sale, You must call me immediately of this is a situation you may be in. I can give you a free consultation and let you know all your options.

As Certified Distressed Property Agent (CDPE), and as Short Sale & Foreclosure Resource Certified (SFR), we are uniquely qualified to help determine your eligibility or the eligibility of someone you may know, and answer any questions about the settlement. Visit my website http://HAFAShortSaleConsultant.com/ for a copy of the report entitled “Time is Running Out: How the Mortgage Debt Relief Act can save your home.”

Please call Dennis Smith at 760-436-0087 for more information or a free, confidential consultation

This information is brought to you by:

Dennis Smith, ABR, SRES, e-PRO, CDPE, Realtor® DRE# 00476662
Certified Distressed Property Agent

Sunshine Smith, SFR, Realtor® DRE# 01249837
Short Sale, Foreclosure Resource Certified

RE/MAX BY-THE-SEA

dennis@SanDiegoHomes4u.com
www.SanDiegoHomes4u.com
760-436-0087 or cell at 760-212-8225
Providing quality Real Estate services in the North Coastal San Diego area
including Del Mar, Solana Beach, Rancho Santa Fe, Cardiff by the Sea,
Encinitas, Leucadia, Olivenhain, Carlsbad, La Costa, Aviara, Oceanside,
Vista, San Marcos, San Elijo Hills, Escondido & all San Diego County.

Obama HARP Refi Plan – Politics or real help?

HARP is from the GovernmentObama HARP Refi Plan – Politics or real help?

This seems to be more political rhetoric than real help to the bulk of the homeowners in difficulty.   It expands the existing program by taking off the high limit to refinance for underwater owners.  Until now, you could not refinance if you were under water by more than 125%.  Now you can, but only of you have a Fannie Mae or Freddie Mac loan from before 6/1/2009.

Pretty limiting increase but it looks great in the headlines.  Don’t get me wrong, this will be a help to some people but it does nothing to help the 6.3M homeowners who have missed several payments. HARP states you must be current for the last 6 months. 

According to RealtyTrac, September marked the 12th straight month where foreclosure activity decreased on a year-over-year basis. But October’s report showed one in every 213 U.S. households with a foreclosure filing in the third quarter of 2011.

 It does not modify the loan, just allows for a “short refi”.

HARP Refinance Program Explained

Borrowers who are current on their home loans may be able to refinance for lower interest rates, even if they are seriously upside down.  The Federal Housing Finance Agency (FHFA) announced today that it will broaden the scope of the Home Affordable Refinance Program (HARP) by removing the current 125 percent loan-to-value cap for fixed-rate mortgages backed by Fannie Mae and Freddie Mac.  Other program enhancements include, among other things, reducing certain fees, eliminating the need for a new property appraisal if the FHFA has a reliable automated valuation model (AVM) estimate, and extending HARP until the end of 2013.  New federal guidelines for the HARP changes should be released to mortgage lenders and servicers by November 15.

The basic eligibility requirements for an enhanced HARP loan are as follows:

  • Existing mortgage loan must be owned or guaranteed by Fannie Mae or Freddie Mac.  To check whether a borrower has a Fannie Mae or Freddie Mac loan, go to http://www.makinghomeaffordable.gov/get-assistance/loan-look-up/Pages/default.aspx.
  • Existing mortgage loan must have been sold to Fannie Mae or Freddie Mac before June 1, 2009.
  • Existing mortgage loan cannot have been refinanced under HARP previously (except for Fannie Mae loans refinanced between March and May 2009).
  • Current loan-to-value (LTV) ratio must be more than 80%.
  • Existing mortgage loan must be current, with no late payments in the past six months, and no more than one late payment in the past 12 months.

More information is available from FHFA at http://www.fhfa.gov/webfiles/22721/HARP_release_102411_Final.pdf.

If you or a friend or family member needs help or a free consultation, please call me at 760-212-8225.

This information is brought to you by:

Dennis Smith, ABR, SRES, e-PRO, CDPE, Realtor® DRE# 00476662
Certified Distressed Property Agent

Sunshine Smith, SFR, Realtor® DRE# 01249837
Short Sale, Foreclosure Resource Certified

RE/MAX BY-THE-SEA
dennis@SanDiegoHomes4u.com  
www.SanDiegoHomes4u.com
760-436-0087 or cell at 760-212-8225

Providing quality Real Estate services in the North Coastal San Diego area including Del Mar, Solana Beach, Rancho Santa Fe, Cardiff by the Sea, Encinitas, Leucadia, Olivenhain, Carlsbad, La Costa, Aviara, Oceanside, Vista, San Marcos, San Elijo Hills, Escondido &  all San Diego County.

FTC Issues Final Rule to Protect Struggling Homeowners from Mortgage Relief Scams

Rule Outlaws Advance Fees and False Claims, Requires Clear Disclosures

As many of you know, Dennis Smith and Sunshine Smith do FREE pre-foreclosure counseling where we explain the different options to homeowners in distress.  The homeowner chooses their plan of action or inaction.  We did our first short sale negotiation in 1996 and we HAVE NEVER charged the homeowner for this information or our services.

If the owners best solution is a short sale, we handle the sale and the negotiation with the bank for the owner.  The bank pays the commissions and the transaction costs completly in most cases.

Now it is the law…see below…

Homeowners will be protected by a new Federal Trade Commission rule that bans providers of mortgage foreclosure rescue and loan modification services from collecting fees until homeowners have a written offer from their lender or servicer that they decide is acceptable.

“At a time when many Americans are struggling to pay their mortgages, peddlers of so-called mortgage relief services have taken hundreds of millions of dollars from hundreds of thousands of homeowners without ever delivering results,” FTC Chairman Jon Leibowitz said. “By banning providers of these services from collecting fees until the customer is satisfied with the results, this rule will protect consumers from being victimized by these scams.”

The FTC is issuing the Mortgage Assistance Relief Services (MARS) Rule to protect distressed homeowners from mortgage relief scams that have sprung up during the mortgage crisis. Bogus operations falsely claim that, for a fee, they will negotiate with the consumer’s mortgage lender or servicer to obtain a loan modification, a short sale, or other relief from foreclosure. Many of these operations pretend to be affiliated with the government and government housing assistance programs. The FTC has brought more than 30 cases against operations like these, and state and federal law enforcement partners have brought hundreds more.

Advance fee ban

The most significant consumer protection under the FTC’s new rule is the advance fee ban. Under this provision, mortgage relief companies may not collect any fees until they have provided consumers with a written offer from their lender or servicer that the consumer decides is acceptable, and a written document from the lender or servicer describing the key changes to the mortgage that would result if the consumer accepts the offer. The companies also must remind consumers of their right to reject the offer without any charge.

Disclosures

The Rule requires mortgage relief companies to disclose key information to consumers to protect them from being misled and to help them make better informed purchasing decisions. In their advertising and in communications directed at individual consumers (such as telemarketing calls), the companies must disclose that:

  • they are not associated with the government, and their services have not been approved by the government or the consumer’s lender;
  • the lender may not agree to change the consumer’s loan; and
  • if companies tell consumers to stop paying their mortgage, they must also tell them that they could lose their home and damage their credit rating.

Companies also must explain in their communications to consumers that they can stop doing business with the company at any time, can accept or reject any offer the company obtains from the lender or servicer, and, if they reject the offer, they don’t have to pay the company’s fee. The companies also must disclose the amount of the fee.

Prohibited claims

The MARS Rule prohibits mortgage relief companies from making any false or misleading claims about their services, including claims about:

  • the likelihood of consumers getting the results they seek;
  • the company’s affiliation with government or private entities;
  • the consumer’s payment and other mortgage obligations;
  • the company’s refund and cancellation policies;
  • whether the company has performed the services it promised;
  • whether the company will provide legal representation to consumers;
  • the availability or cost of any alternative to for-profit mortgage assistance relief services;
  • the amount of money a consumer will save by using their services; or
  • the cost of the services.

In addition, the rule bars mortgage relief companies from telling consumers to stop communicating with their lenders or servicers. Companies also must have reliable evidence to back up any claims they make about the benefits, performance, or effectiveness of the services they provide.

Attorney exemption

Attorneys are generally exempt from the rule if they meet three conditions: they are engaged in the practice of law, they are licensed in the state where the consumer or the dwelling is located, and they are complying with state laws and regulations governing attorney conduct related to the rule. To be exempt from the advance fee ban, attorneys must meet a fourth requirement – they must place any fees they collect in a client trust account and abide by state laws and regulations covering such accounts.

All provisions of the rule except the advance-fee ban will become effective December 29, 2010. The advance-fee ban provisions will become effective January 31, 2011.

The FTC rulemaking proceeding was conducted pursuant to Congressional legislation sponsored in 2009 by Senators Jay Rockefeller and Byron Dorgan. The Final Rule applies only to entities within the FTC’s jurisdiction under the Federal Trade Commission Act, which excludes, among others, banks, savings and loans, federal credit unions, common carriers, and entities engaged in the business of insurance. In June 2009, the FTC issued an Advance Notice of Proposed Rulemaking seeking comment on the practices of for-profit mortgage relief companies. In February 2010, the FTC announced a Notice of Proposed Rulemaking and sought comments from interested persons, including advocates for consumers, the business community, and the legal profession.

Click here for facts about mortgage consumers’ rights.

The Federal Trade Commission works for consumers to prevent fraudulent, deceptive, and unfair business practices and to provide information to help spot, stop, and avoid them.  To file a complaint in English or Spanish, visit the FTC’s online Complaint Assistant or call 1-877-FTC-HELP (1-877-382-4357).  The FTC enters complaints into Consumer Sentinel, a secure, online database available to more than 1,800 civil and criminal law enforcement agencies in the U.S. and abroad.  The FTC’s website provides free information on a variety of consumer topics.

MEDIA CONTACT:

Office of Public Affairs
202-326-2180

STAFF CONTACT:

Laura Sullivan or Evan Zullow
Bureau of Consumer Protection
202-326-3224

(MARS)
(FTC File No. R911003)

This information is brought to you by:

Dennis Smith, ABR, SRES, e-PRO, CDPE, Realtor® DRE# 00476662
Certified Distressed Property Agent

Sunshine Smith, SFR, Realtor® DRE# 01249837
Short Sale, Foreclosure Resource Certified

RE/MAX BY-THE-SEA

dennis@SanDiegoHomes4u.com 

www.SanDiegoHomes4u.com
760-436-0087 or cell at 760-212-8225

Providing quality Real Estate services in the North Coastal San Diego area including Del Mar, Solana Beach, Rancho Santa Fe, Cardiff by the Sea, Encinitas, Leucadia, Olivenhain, Carlsbad, La Costa, Aviara, Oceanside, Vista, San Marcos, San Elijo Hills, Escondido &  all San Diego County

SELL YOUR SAN DIEGO AREA HOME BEFORE THE BANK DOES

SELL YOUR HOME BEFORE THE BANK DOES

Don’t let your home go to Foreclosure, visit

http://HAFAShortsaleConsultant.com to get answers.

We are San Diego based and can stop your foreclosure.

 

Attention: Do Not Be A Victim To the Banks’ Incompetence!

SELL YOUR HOME BEFORE THE BANK DOES…(for 0 commission)

We are paid by the bank, not by you!!!

Request a FREE Consultation with your Local
Real Estate and Foreclosure Expert Now to Discover…

HOW TO SELL YOUR HOME WITH A SHORT SALE
BEFORE THE BANK FORECLOSES ON IT
AND HITS YOU WITH A HUGE DEFICIENCY!

Don’t let your home go to Foreclosure, visit 

http://HAFAShortSaleConsultant.com/ to get answers.

We are SanDiego based and can stop your foreclosure.

 

Cities Served: I service All San Diego County locations including the following: Allied Gardens, Alpine, Aviara, Balboa, Barona, Bay Park, Beach, Beaches, Birdrock, Bonita, Bonsall, Bostonia, California, Camino del Mar, Camp Pendleton, Cardiff by the Sea, Carlsbad, Carmel Ranch, Carmel Valley, Carmel Mountain, Castle Creek, Chula Vista, Clairemont, coastal, College, College Grove, Coronado, Crown Point, Del Cerro, Del Dios, Del Mar, Del Rey, Deluz, Descanso, Downtown, Dulzura, East, Eastlake, El Cajon, Emerald Hills, Encanto, Encinitas, Escondido, Fairbanks Ranch, Fallbrook, Fleetridge, Fletcher Hills, Fire Mountain,Friars, Golden Hill, Granite Hills, Grantville, golf, Grossmont, Guatay, Hidden Meadows, Hillcrest, Imperial Beach, Jamul, Jesmond Dene, Johnston, Julian, Kearny Mesa, Kensington, La Costa, La Jolla,, La Mesa, La Playa, La Presa, Lake Dixon, Lake Henshaw, Lake Hodges, Lake Murray, Lake San Marcos, Lake Wolford, Lakeside, Lakeview, Lemon Grove, Leucadia, Linda Vista, Logan Heights, Los Penasquitos, Mesa College, Mira Costa College, Mira Mesa, Miramar, Miramar College, Mission Bay, Mission Beach, Mission Gorge, Mission Hills, Mission Valley, Mount Helix, Mount Soledad, Mt. Carmel, Mt. Helix, Mt. Laguna, Mt. Soledad, National City, Naval Area, Nestor, Normal Heights, North, North County, North Park, Ocean Beach, Ocean View Hills, Oceanside, ocean view, Old Town, Olivenhain, Otay Mesa, Pala, Pala Mesa Village, Palm City, Palomar Mountain, Palomar Mtn., Paradise Hills, Pauma, Pine Hills, Pine Valley, Point Loma, Potrero, Poway, Pt. Loma, Rainbow, Ramona, Ranchita, Rancho Bernardo, Rancho Del Oro, Rancho del Rey, Rancho San Diego, Rancho Carillo, Rancho Santa Fe, Rincon, Rosemont, Roseville, San Carlos, San Diego, San Elijo Hills, San Diego Bay, San Diego Downtown, San Diego Harbor, San Elijo Hills, San Luis Rey Heights, San Marcos, San Ysidro, Santa Ysabel, Santee, Scripps Ranch, Serra Mesa, SD, Skyline, Solana Beach, Sorrento Valley, South Park, Spring Valley, North Park, Tierrasanta, Torrey Pines, Tri-City, UCSD, University City, University Heights, San Diego North, San Diego Ca., USD, Valley Center, Vista, Warner Springs, West, Whispering Pines, Winter Gardens 

Zips Served: We service the following Zip Codes: 91901, 91902, 91903, 91905, 91906, 91908, 91909, 91910, 91911, 91912, 91913, 91914, 91915, 91916, 91917, 91921, 91931, 91932, 91933, 91934, 91935, 91941, 91942, 91943, 91944, 91945, 91946, 91947, 91948, 91950, 91962, 91963, 91951, 91976, 91977, 91978, 91979, 91980, 91987, 92003, 92004, 92007, 92008, 92009, 92010, 92011, 92013, 92014, 92018, 92019, 92020, 92021, 92022, 92023, 92024, 92025, 92026, 92027, 92028, 92029, 92030, 92033, 92036, 92037, 92038, 92039, 92040, 92046, 92049, 92051, 92052, 92054, 92055, 92056, 92057, 92058, 92059, 92060, 92061, 92064, 92065, 92066, 92067, 92068, 92069, 92070, 92071, 92072, 92074, 92075, 92078, 92079, 92081, 92082, 92083, 92084, 92085, 92086, 92088, 92090, 92091, 92092, 92093, 92096, 92101, 92102, 92103, 92104, 92105, 92106, 92107, 92108, 92109, 92110, 92111, 92112, 92113, 92114, 92115, 92116, 92117, 92118, 92119, 92120, 92121, 92122, 92123, 92124, 92126, 92127, 92128, 92129, 92130, 92131, 92132, 92134, 92135, 92136, 92137, 92138, 92139, 92140, 92142, 92143, 92145, 92147, 92149, 92150, 92152, 92153, 92154, 92155, 92158, 92159, 92160, 92161, 92162, 92163, 92164, 92165, 92166, 92167, 92168, 92169, 92170, 92171, 92172, 92173
CA Real Estate License 00476662

Keywords: Search words include: FSBO, For Sale By Owner, short sale, reo, strategic default, bank owned, avoid foreclosure, NOD, NOS, help, save my home, save my house, successful, late on my mortgage, approved, specialist, pre foreclosure, help, San Diego listing agent, San Diego short sale assistance, late on my mortgage, expert, pro, San Diego short sale assistance, Foreclosure attorney lawyer, HAFA, HAMP

January 20, 2011

“Keep Your Home California” introduces new program for unemployed

Keep Your Home California” introduces new program for unemployed

 
The U.S. Treasury Department has approved CalHFA’s plan to use nearly $2 billion in federal funding to help California families struggling to pay their mortgages.

The Keep Your Home California programs are focused on assisting low and moderate income families stay in their homes, when possible, and leveraging additional contributions from mortgage servicers.

Unemployed California homeowners now can apply for up to $3,000 a month in mortgage assistance to tide them over for up to six months while looking for work.  Keep Your Home California program is a great program if you home payment is $3000 or less. However if it is $3001+, you do not qualify.  See 

http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2011/02/08/BU7R1HJT69.DTL&tsp=1

The Unemployed Mortgage Assistance Program (UMA) is the first of four programs the state is scheduled to roll out as part of an initiative called “Keep Your Home California.”  The programs are supported by $2 billion in federal dollars provided through the Hardest Hit Fund.
Eligible homeowners who are struggling to make their mortgage payments after suffering a job loss may qualify for assistance.

Participating lenders, loan servicers and agencies include Wells Fargo, Chase, Bank of America, GMAC, CalHFA, and the Department of Veterans Affairs, as well as the government-sponsored Fannie Mae and Freddie Mac. More are signing up so check the site.

The program’s website is www.keepyourhomecalifornia.com/
Click on the “Eligibility” tab to find out if you meet the eligibility requirements before calling the toll-free number.  888-954-KEEP (5337).

The following parts of the program start Feb 7th.

1 – The program also offers a buy down feature that can help reduce the balance on your loan.

2 – Prevention of foreclosures with up to $15,000 per household to help homeowners who have fallen behind on their mortgage payments.

3 – Relocation assistance for homeowners who have decided they can no longer keep their home.

See my Short Sale and Foreclosure Avoidance Web Site at
http://HAFAShortSaleConsultant.com/

This current “Keep Your Home California” info brought to you by
Dennis Smith, ABR, SRES, e-PRO, CDPE, Realtor® Lic #00476662
Certified Distressed Property Agent
RE/MAX By-the-Sea,  Carlsbad CA
<a href=”http://sandiegohomes4u.com”>http://www.sandiegohomes4u.com</a>

760-436-0087
Helping you reach your San Diego area Real Estate goals.
Referrals to quality agents worldwide.

Encinitas Real Estate homes for sale
Cardiff Real Estate homes for sale
Carlsbad Real Estate homes for sale

December 3, 2010

California SB 931 prevents deficiency judgement on first loan in a Short Sale

California SB 931 prevents deficiency judgement on first loan in a Short Sale

A first position lender, for any CA short sale after 1/1/2011, must release the seller of liability if that first lender agrees to do a short sale. SB 931 applies to loans secured by California dwellings of one to four units, on both investors or homeowners.  This is the same protection that sellers have if the bank forecloses on the home.  That is the final action.  The bank nor debt collectors can come back to the seller later for any compensation.

For the full text of the SB 931 law, you can go to:

http://www.leginfo.ca.gov/pub/09-10/bill/sen/sb_0901-0950/sb_931_bill_20100930_chaptered.pdf

Second liens were not included at all in the final SB 931 bill.  Initially, the bill was written to include Purchase Money Second Liens, but the Governor vetoed it until it came back affecting first liens only.  A good Short Sale negotiator can head off requests for owners contributions in many cases but not all.  Some of that success is determined by the banks current policy which is subject to change.  Please contat me for information  on Short Sales in San Diego County.  I give free consultations on the advantages and disadvantages of Short Sales, Foreclosures, Loan Modifications and more.

If the first lender rejects the Short Sale and does a trustee sale, that lender does not have any other recourse against the borrower and therefore the liability from that lender no longer exists per CA CC Section 726.

This information is brought to you by:

Dennis Smith, ABR, SRES, e-PRO, CDPE, Realtor® DRE# 00476662
Certified Distressed Property Agent

Sunshine Smith, SFR, Realtor® DRE# 01249837
Short Sale, Foreclosure Resource Certified

RE/MAX BY-THE-SEA

dennis@SanDiegoHomes4u.com 
760-436-0087 or cell at 760-212-8225

Providing quality Real Estate services in the North Coastal San Diego area including Del Mar, Solana Beach, Rancho Santa Fe, Cardiff by the Sea, Encinitas, Leucadia, Olivenhain, Carlsbad, La Costa, Aviara, Oceanside, Vista, San Marcos, San Elijo Hills, Escondido & San Diego County

California SB 931 prevents deficiency judgement on first loan in a Short Sale

Note, This is not legal advice as I am not a attorney.  Please contact an attorney or CPA for Legal or Tax advise as to how this pertains to you.