In many cases, an attorney will contact your lender and get them to delay the foreclosure process without filing bankruptcy. Such a scenario allows an attorney the opportunity to negotiate a “win win” resolution for both sides. Foreclosure is generally a very costly option for lenders. In certain instances, a modification of the existing loan is a good solution. Depending on circumstances, a deed in lieu, also known as “cash for keys” or “walk away” may be the right solution to keep a foreclosure off your credit report. There are many possible solutions to resolve a situation where a homeowner is either behind on payments or likely to fall behind in the near future. Such possible solutions include a modification or restructuring of the terms of your current loan to lower your mortgage payments, a recapitalization and principal balance reduction, a rescission of your current loan (up to three years) or a lawsuit against the mortgage company for predatory lending violations if determined to be appropriate after a proper loan document audit. There are many other possible resolutions as well. An attorney will assist you to determine which possible option is best for you.

Currently, Aurora, Citibank, Chase, Countrywide, GMAC, Litton, Wachovia and WAMU are among the major lenders routinely offering loan modifications. Although many lenders are willing to consider loan modifications, many lenders are unable to keep pace with the current demand for loan modifications. Even in cases where the borrower is currently in default, a lender offered forbearance agreement may not be the best resolution for the borrower. An attorney may be able to stop foreclosure by negotiating a loan modification; even in cases where a previous forbearance agreement has failed. Because we process many loan modification requests, our current relationships with lenders and loan servicing companies may allow us to bypass overwhelmed loss mitigation personal and negotiate directly with asset and portfolio managers as well as the lender’s legal department.

In order to secure a loan modification, an attorney will make use of the tools provided by federal law. Such federal tools include both the Truth in Lending Act (TILA) and the Real Estate Settlement Procedures Act (RESPA). Both state and federal laws require mortgage companies to adhere to certain guidelines when originating home loans. Some existing mortgage loans have TILA and/or RESPA violations. When such a violation is determined to have occurred, an attorney will utilize such violation as leverage to negotiate a favorable resolution for our clients. Generally, lenders will seek to avoid costly litigation and are more agreeable to reaching voluntary solutions when such violations are identified and brought to their attention by qualified law firms.

During times of real estate booms, some brokers and lenders engage in unfair or illegal practices to close loans. An example of these practices may include charging unexplainable or unreasonable fees and charges. Other examples include not fully explaining interest rate adjustments, pre-payment penalties or the implications of option ARM loans with minimum payment options. Additionally, some brokers and lenders illegally inflated or otherwise manipulated financial statements to qualify buyers who would otherwise not have qualified for their loans. Simply refinancing out of these inappropriate home mortgage loans is now generally not an option because of declining property value or debt to income ratios.

An attorney can help to identify if you have been the victim of such an issue. In such a case, we can attempt to resolve these issues fast and efficiently so the borrower doesn’t fall victim to foreclosure proceedings. Helping stop foreclosure and restoring financial stability for our clients is our main goal.

There are additional reasons to conduct a detailed review of the client’s mortgage home loan documents. If a lender fails to properly provide adequate notice of the borrower’s right to cancel, the right of rescission may be available to the borrower for up to three years. When such right is extended for three years, the borrower may be able to rescind the loan during such period. In such a circumstance, the loan is treated as if it never existed. Essentially, the borrower becomes entitled to all profits made by the lender as a result of the loan. As such, the lender or other creditor would be required to refund all interest paid, all closing fees, all broker fees, and even pay the borrower’s attorney fees. This circumstance can create a legitimate windfall to the borrower. The extended right of rescission is a powerful tool to assist borrowers who have been victims of predatory lending. An attorney can assist in determining if such a right exists and will assist its clients in exercising such right in appropriate circumstances.

Mortgage and loan servicing companies generally do not want your home and most will work diligently with a law firm to avoid foreclosure. Litigating mortgage fraud and predatory lending cases can become costly for both sides and should be avoided unless the lender will not comply or there are significant damages to the borrower. Our clients retain us to make a best effort at resolving their hardship and to fight for their rights. In most cases, the client’s goal can be realized without costly litigation by using existing relationships to find an amicable resolution to stop foreclosures.

A loan modification proposal offered by a law firm may result in a more favorable loan modification agreement than your lender will offer you directly. Many modifications offered by mortgage lenders and loan servicing companies are forbearance agreements and are not a true modification to the terms of your mortgage. These types of agreements generally do not benefit the borrower in the long term and home owners facing foreclosure should consult with a law firm and fully understand the terms and ramifications before signing any of these documents.

In cases where neither refinancing nor a loan modification is a possibility, a short sale or a deed in lieu may be among the best options to both avoid foreclosure and a deficiency judgment. An attorney can help borrowers navigate through the possible options to determine which resolution is best for your particular circumstances. A real estate short sale occurs when the lender agrees to discount the loan balance and accept the sale proceeds in full satisfaction of the outstanding debt. In such cases, the lender has the right to approve or disapprove of the proposed sale. Lenders are generally inclined to agree to a short sale if they determine such action will mitigate losses as compared to foreclosure. The advantages of a short sale to the borrower include avoiding a foreclosure reported on credit history and mitigating or eliminating a possible deficiency. A short sale is generally faster and less expensive than a foreclosure. In summary, a short sale is a negotiation with a lender resulting in a payoff less than what is currently owed.

Not all lenders are equally amenable to short sales. Many lenders have pre-determined criteria for such transactions. Distressed lenders may accept any reasonable offer. However, junior lien holders such as second mortgages, HELOC lenders, and HOA (special assessment liens), may also need to approve of any short sale. Objectors to short sales sometimes include tax lien holders (income, estate or corporate franchise tax – as opposed to real property taxes, which have priority even unrecorded) and mechanic’s lien holders. It may be possible for junior lien holders to prevent a short sale. Additionally, lien holders who are not mortgagees are generally unlikely to forgive the debts owed to them.

While a short sale appears on a borrower’s credit report differently than a foreclosure, a short sale may nonetheless have severe consequences for the borrower in the future. A short sale may appear on a borrower’s credit report as “foreclosure proceedings started.” While not a foreclosure, a short sale may prevent the borrower from obtaining a new mortgage for seven or more years. Short sales are complex matters which should be handled carefully by experienced professionals.

The loss mitigation industry is a recent advent and has become large as a result of the current economic and real estate crisis. The loan modification industry is currently inundated with marginally qualified or unethical individuals, who are essentially salespeople, who have accepted fees in exchange for half hearted efforts or no efforts at all to provide loss mitigation services, loan modification or stop foreclosure services. As such, several states are currently considering legislation which requires attorney involvement for loan modification requests.

Some companies offering loan modification services claim to be “attorney backed” or “attorney based” in their marketing. In such a case, borrowers should be aware they are not contracting with or engaging the services of a law firm. Some companies simply hire an attorney for consultation to claim an association with an attorney. In such a case, the attorney does not represent the borrower and the company is not bound by the same ethical duties required by licensed attorneys. Additionally, no attorney client privilege exists with such a company and statements made to them are discoverable. To be sure, the borrower is encouraged to request to speak personally with the attorney.

“Attorney based” loan modification companies are not law firms. As such, when you discuss the details of your mortgage with these companies, there is no attorney client privilege. Any conversation you have with a non-law firm loan modification company is discoverable by a state agency and not protected by attorney client privilege and therefore not confidential. Prosecuting agencies have become much more aggressive recently in bringing prosecutions for mortgage fraud based on overly optimistic or inflated representations regarding income or monetary reserves at the time of qualifying for the loan. Therefore, if you are concerned that statements you made on your mortgage loan application could be construed as false and you are at risk for foreclosure, please contact an attorney immediately. Do not discuss this issue with anyone other than a licensed attorney.

For more info-http://www.attorneyforloanmods.com

What do the other 50% do?  There are many solutions available to homeowners who are struggling to make their mortgage payments (other than losing sleep at night). 

Some solutions available are:

- Loan Modification

- Forensic Loan Audit

- Short Payoff Refinance

- Short Sale

- Bankruptcy

- or let the house go to foreclosure

How do you know what is the best solution for you?  You need to speak with an expert who is aware of all these options so that you can get the advice that is best for your situation.  Not all solutions will work for everyone. 

A loan modification is an option for the homeowner who wants to keep their home.  A loan modification is when the bank agrees to change the terms of the existing loan so that the homeowner can stay in the home.  A homeowner can do a loan modification on their own.  Just keep in  mind that you signed the documents on the loan you have now and it isn’t working for you, so you should consider having an expert handle the negotiation with the bank.  The experts know the banks terminology and how to use that information to your advantage.

A forensic loan audit is when you have an expert review your existing loan documents to look for violations.  The expert knows exactly what to look for to negotiate with the bank on your behalf.  This is different from a loan modification because the expert is looking for violations, not just negotiating to change the existing terms.

Mortgage brokers will talk to you about a refinance.  If you can qualify for a refinance, this may be an option for you.  Just make sure you get a loan that is a long term solution not a band-aid.  A short payoff refinance requires approval from your current lender, with them agreeing to take less than what you currently owe.

A short sale occurs when you sell your house for less than what is currently owed. This requires approval from all lienholders, including the bank, contractors liens, HOA liens, IRS liens, and more.   Many realtors will tell you to do a short sale, because they are in the business of representing homeowners and home buyers.  According to the National Association of Realtors, only 20% of short sale homes listed with a Realtor actually sell.  You can sell your house directly to an investor who will buy the house, they are more motivated to get the deal done since they are the actual buyer of the house .  A Realtor has to go out and find a buyer who is willing to wait for the bank to approve the short sale, which is very time consuming and why many short sale homes listed with a Realtor don’t sell.  Hint: contact a local investor who specializes in short sales to get the house sold.

A bankruptcy attorney will tell you to file bankruptcy.  A bankruptcy will stay on your credit report for more than 7 years, so be very sure you want to do this.  Also keep in mind, when you are in bankruptcy you have to make payments according to the court order.  If you fail to make the payments, your house can still be foreclosed upon.

Your last option is to do nothing and let the home go through the foreclosure process.   This means you will have a foreclosure on your credit report for at least 7 years and no house.

So, how do you decide?  You need to know all of your options and what is available to you, so you can make an informed decision.  Speak with an expert who is able to discuss all of your options, not just one of them. 

Who Will Play on the Basketball Goal More Often?

            Is this going to be a basketball hoop mostly for adults or mostly for children?  Children don’t necessarily require large basketball backboards to play, so one that ranges between forty four and fifty four inches, though you can obviously choose larger ones if you have the budget for it.  If  adults are going to playing on the basketball system, you might want to look at basketball hoops for sale that are on the larger side, such as those between fifty four and seventy two inches.

How Often Will you Use it?

            If you plan on using your basketball hoop frequently, you should make certain to put durability as the top of your goal requirements.  Look for a basketball hoop for sale that is made of high gauge steel or even features a thick pole.  Poles that are four, five, or even six inches thick and are square should hold up to really rough play every single day.

How Much Time Do You Want to Spend in Assembly?

            If assembly and installation of your basketball goal isn’t much of an issue for you, then you should just focus on basketball hoop quality.  However, if you don’t feel include to spend hours getting your goal up, you should think about installation when looking at the basketball hoops for sale.

Are there any Homeowner Association Regulations to think about?

  Some HOA regulations have strict rules against installing an in ground basketball hoop in your driveway.  If you discover that is the case for your community, you can still enjoy basketball hoops by buying a quality portable basketball goal.   There are plenty of basketball hoops for sale that have wheels on the bottom of the base and sometimes even a handle to easily pull it where you want it to go.

Am I Saving the Most Money?

            Obviously this is a big one when you are looking at basketball hoops for sale. Basketball systems can range in price from a hundred dollars to thousands of dollars, so it pays to know that your money is going to good use.  When you educate yourself on the variety of basketball systems on the market, you can be confident that you are putting the best of the best in your driveway.

One important role that property management has is to act as the middle person between the tenant and the property management landlord. Property management should provide the property management landlord with a sense of security, knowing that everyday needs from the renter can be resolved without involving said property management landlord unnecessarily. Hand and hand with that security, the tenant can be assured that the property will be maintained to some set of standards which can be reviewed with the property management team before an agreement is reached. Property management is a delicate balance between pleasing the property management landlord and keeping the renter happy as well. The task of property management can prove to be harder than it sounds. Maintaining an open line of communication in property management and being able to address the needs of both property management parties will make a successful property management business. Other duties for property management but are not limited to; collecting rent, posting and showing vacancies, maintenance issues, evictions, failure to pay rent issues, harassment, and background checks on the application forms. It is very important that a profitable property management staff or team be knowledgeable in the current laws of the city, state and county concerning tenant rights vs. landlord rights. Be sure your property management team is up to date on current property management codes, and other items that will benefit your property management business. Getting caught up in property management legal matters is no way to run a property management business.

The following is the definition of property managers/property management as posted by Wikipedia on their website. Property management is a person or firm responsible for the operation of a real estate property for a fee, when the owner of the property cannot or is not interested in managing the property themselves. The property manager or the property management company has a primary responsibility to the landlord and a secondary responsibility to the tenant. Relationships the property manager or property management team have with the landlord and with the tenant are crucial in forming the expectations of both parties to the lease since both parties will seek and expect certain rights and benefits out of it. Owner’s expectations from the property manager/ property management team are to carry out the owner’s instructions, control costs and maximize revenue to maintain a stabilized cash flow as a return on capital invested, exercise control over the building to safeguard the capital invested, provide a duty of care through proper maintenance of the building, to be professional and well informed, enhance the value of the property by making improvements that will increase its market value, retain and enhance pride of ownership. The tenant’s expectations from the property manager/ property management team are the “quiet enjoyment” ‘assurance of the use and enjoyment of the premises for the intended purposes without interference from the landlord, comforta living environment properly heated, cooled and ventilated with as many amenities as possible compatible with the rental level, security and safetyto live or work in a building in which there are no inherent defects or conditions that might be hazardous to health or to property, statusaccommodation and facilities that meet social-economic and cultural standards for the tenant’s and their guest.

Property management can be a very lucrative business when handled correctly. Property management takes an organized, well communicated, and dedicated individual or staff to be able to pull off a successful property management company. Typically property management companies will charge their landlords a percentage of the gross rent collected each month. This percentage for property management fees can range from 3 to 10% depending on the property management market. Sometimes a flat fee is more appropriate when the property is a condominium or a type of cooperative complex for property management. Some states might require that property managers have a property management license or a real estate license to be able to claim the title of property manager or property management business.

A cousin to property management is facility management. Facility management is like property management but the focus is the management of buildings and services. One definition from a large facility/property management association says, “A profession that encompasses multiple disciplines to ensure functionality of the built environment by integrating people, place, process and technology.” Australians prefer the term: Commercial Services to property management, this term replaces facilities management in some organizations. Besides keeping the property up to date, commercial services can also include duties such as waste disposal, parking, security, landscaping and more.

A homeowner may provide his or her own property management, but property management is not limited to the duties of house cleaning, lawn care and landscaping, building maintenance, trash and waste disposal and interior upkeep. Property management can be all of these, and can be hired out to a professional that can provide better property management services than the homeowner can or would provide themselves. These property management services come with a price and if the homeowner is willing to pay for outside property management, the sky is the limit on what they can have managed. Some property management companies even manage home owners associations (HOAs). In this instance the property management company is the middle person between the homeowners and the land developer. Once the developer has completed his contracted tasks, the neighborhood is then turned over to the HOA. The property management company may stay on board for a fee to help the HOA. A landlord may also provide property management services himself or have it hired out to a property management company. A large company or corporation might have internal structures in place to provide property management on site or they may choose to hire an outside property management company to provide the property management services that they would need on a day to day basis. Both of these operations are a reasonable and effective way to tackle the issue of property management on a large scale.

With the world of technology growing everyday, it makes perfect sense to have applicable property management software and property management computer systems that deal with property management in place to help with property management or facility management. You can have your home wired and programmed to turn the lights on and off when entering a room. Constant temperature and humidity levels can be monitored along with major appliance functions. Watering of lawns and security systems has become high tech and available to the everyday homeowner who wants property management. Some passenger vehicles now include a “remote” that when programmed can turn the lights on, turn the TV on your favorite station and more, all from the comforts of your car. Heaven forbid you will have to walk into your dark and quite home. Home builders, architects and engineers saw the potential for using large scale property management ideas in the home. Beyond the home, large commercial properties, computer aided facility management (CAFM) has been a natural progression of the marriage between technology and facility/ property management. In the late 1980’s CAFM evolved to allow larger properties to manage their property management sites more efficiently. Most often, CAFM systems track and maintain; floor plans, LAN and telecom information, business continuity and safety information, workplace assets, employee and occupancy data, building and property information and space characteristics and usage. Being able to supervise the goings on of your with a property management company in an efficient and well structured way will help your property management bottom line.

If you need information about property management, the internet is a great place to start.

Getting Organized

Start with a loose-leaf notebook and some sharpened pencils. Manila file folders are helpful in organizing bills and other documents needed for loan applications. Having a business telephone directory on hand or access to a computer is a good idea. After making calls, record the phone numbers, contact name and a short note on the conversation in the notebook under a reference tab.

Rent vs. Homeownership

For some renting makes more sense than purchasing a home. The only way to determine this is by comparing the costs of homeownership to renting.

In addition to mortgage payments (first and second mortgages) taxes and insurance (mortgage insurance and homeowner insurance) must be included in the owning a home column.

The next items in the column should be utilities. For a home these include gas, oil, electricity, water, waste disposal (garbage pickup), and optional telephone and cable costs.

Condominiums and Co-op Fees

Some first time homebuyers decide to purchase condominiums or co-operative units because many of the utility and maintenance costs are included in the homeowners’ association (HOA) fees. Include these fees on the list and remember that all utilities may not be covered. Contact several homeowners’ associations to get an idea of what the HOA fee covers.

Mortgage Credit Certificate

The Mortgage Credit Certificate program offers a federal tax credit for mortgage interest paid. Most states participate in this program. The credit can be used to increase the homeowner’s take home pay and offset the costs of owning and maintaining a home. Contact area realtors, state and county housing departments and employer payroll departments for information on this program.

Maintenance Costs

Maintenance costs cover a wide range of items from lawnmowers to roof repair. Trees have to be pruned, lawns mowed, heating systems maintained, windows caulked in cold climates, broken pipes and windows replaced, leaky faucets repaired. Make maintenance costs an item in the homeowner column.

Call local utility companies and work with a local realtor to establish a good estimate of these costs. Always go with the higher estimate.

Home Improvement Grants

Many states and counties offer home repair and improvement grants to homeowners. Homeownership is a requirement for most of these grants. Knowing the eligible areas, property types, and grant uses will assist in determining if the grants can be useful after purchasing a home. Visit myhomedownpayment.com, and contact state and local housing departments for grant information.

Intangible costs

Mortgage payments, utilities, maintenance and repairs are the tangible costs of owning a home. Intangible costs require another list that should include the following questions:

Why do I want to purchase a home?

Do I have enough time to maintain a home? (Not maintaining a home will decrease the property’s value.)

Can I change a light bulb, mow a lawn, paint the front door, replace a lock, caulk a window, repair a faucet, trigger an electrical circuit, recognize mold or termite damage?

Do I have a tool kit?

Am I willing to make financial sacrifices if owning a home costs more than I am paying in rent now?

What am I willing to cut back on financially to own a home?

Will a major financial emergency (health, car repairs, or job loss) impact my ability to make my mortgage payment?

Do I have a savings account?

If I create a budget will I stick to it?

If owning a home requires a lifestyle change, am I sure (as much as it is possible to be) I want to change for the long term?

How often do I call my landlord to make simple repairs?

Next

If you’ve come this far stay tuned the next article will cover homebuyer’s classes. Questions, comments and stories are always welcome.

The author, Yasmin Sabur, is the founding member of My Home Down Payment, an e-education business promoting mortgage down payment assistance programs for low-to-moderate income families.

FIRST QUESTION:  Why do I have to get approval of my wooden garden shed from my Homeowner’s Association (HOA) before I build the storage shed?

FIRST ANSWER: Because most developers record a set of Covenants, Conditions, and Restrictions (CC&R’s)against your lot before they sell it to your builder.  These CCR’s will most likely control what additional sheds or structures you can build on your property. The developer gives the HOA the right and authority to enforce these restrictions.

Additionally, the developer may have also filed a document with the city or county when getting the subdivision approval that places additional restrictions on what you can do on your lot. These are often contained within the zoning approvals for the subdivision and may be called Planned Unit Development (PUD) documents or zoning documents. These documents are enforced by the governmental entity that approved the subdivision. They are usually enforced by the zoning or building department.

HELPFUL TIP: You can usually get a copy of the CC&R’s and the PUD or zoning documents from the title company when you purchase your house. If the title company, builder, or realtor does not provide them to you then ask for them. They will be provided to you, as the buyer, at no charge. Review them again so you know what restrictions are in play when deciding to build your garden shed.

SECOND QUESTION: How do I know what will be approved by the HOA?

SECOND ANSWER: The easiest way is to contact your Board of Directors of the HOA and ask them if they have developed any standards for what they will approve. Active HOA’s will normally have examples and helpful information for you on what they will approve. Also look around your neighborhood to see what other homeowner’s have done to get an idea of what the HOA has been approving.

THIRD QUESTION: What will I need to get my wooden garden shed approved?

THIRD ANSWER: Normally the HOA will ask that you submit a set of plans, a lot layout showing where your shed will be placed in your yard, and a description of the type of roof, siding, and paint colors that you will be using. Buying a good set of plans is most helpful in this situation unless you are a good artist/architect. Most HOA’s will accept a hand drawn lot layout as long as the measurements are good.

HELPFUL TIP: Talk to your neighbors who have put up wooden garden sheds and ask them what the HOA was looking for or what it took for them to get their storage shed approved. HOA Board of Directors change members over time so the process can also change over time. Some boards are very strict and others are more lax in the approval process.

Just what precisely does this signify for you, the buyer? To start, HOAs reserve the right to impose deed restrictions. Simply put, these legal agreements place restrictions on the use of properties. Such limitations typically serve to maintain the desired appearance of a community, so, if you’re looking to make some distinct renovations to your new home, you may wish to stay away from of HOAs. These entities are also used to keep certain areas residential, so, if you have a home based business, you need to examine the specific provisions before going through with with buying a home with a HOA. In addition, HOAs require monthly membership fees. Keep in mind that neighborhoods with a HOA require homeowners in these communities to become members. It is not voluntary, so make sure that you afford to pay these monies before investing in a new property.

There are some fundamental questions that you need to ask before determining whether buying a home with a HOA is the right option for you. This step requires some research and heavy reading, so make sure that you allot sufficient time to attain all of the facts.

Ask the HOA for the following papers: Covenants, Conditions and Restrictions, that are typically known as CC&Rs, financial statements, Meeting Minutes for the prior year and By-Laws and Regulations. Such key documents will enlighten you of assessments that focus on deferred maintenance, planned capital improvements, cash reserves, law suits involving the HOA and announcements about increases in dues.

Now that you are familiar with the HOA, look into the amount of monthly dues and determine what exactly these fees cover. Once you’ve calculated out the cost and what this fee covers, contrast this price to HOA dues in similar communities. This way, you can determine whether or not you feel the monthly dues are worth the services.

Now, it is time to determine how the HOA will make life easier for you, the homeowner. You might be paying hefty fees, but the important question to ask is: what are you getting in return for these monthly expenses? Many HOAs handle things such as neighborhood security, which is central to your tranquility as a property owner. It’s of paramount importance that you perform your research, and figure out the pros and cons of buying a home with an HOA before coming to your decision.