HAMP Program Changes: If You’re Unemployed and/or Underwater On Your Home, Get Gov’t Help to Refinance or Modify Your Mortgage

The Obama Administration’s Making Homes Affordable program was initially slated to help 3-4 million homeowners prevent foreclosure. This could be accomplished either by refinancing the loan or by a home loan modification.

How Many Homeowners Facing Foreclosure Has the Government’s Prevent Foreclosure Program (HAMP) Helped?

To date, according to the April 2010 Washington Post article,  [Treasury Secretary] Geithner tells panel that more has to be done to help homeowners avoid foreclosure, the program has helped about 200,000 borrowers get permanent home loan modifications.

How Many Homeowners Facing Foreclosure Has the Government’s Prevent Foreclosure Program (HARP) Helped?

According to the January 2010 New York Times article, Treasury Weighs Fixes to Foreclosures Program:

When President Obama outlined the [Making Homes Affordable] program nearly a year ago, he said it would prevent three million to four million foreclosures by 2012. As of December [2009], mortgage companies had modified 759,000 loans on a trial basis, typically lasting three to five months.  

making-homes-affordable-program

Changes to HAMP That May Help Many More Homeowners Avoid Foreclosure

On March 25, the Obama Administration made some changes to HAMP designed to help more struggling homeowners avoid foreclosures. The changes are as follows:

Help for the Unemployed: Reduction in mortgage payments for 3-6 months while seeking new employment (guidelines apply).

Help for Underwater Homeowners: This is an FHA refinance option that is aimed primarily at non-FHA borrowers. It encourages lenders to refinance loans into FHA-insured mortgages by encouraging them to write down principal balances.

It’s worth noting that this has been one of the major criticisms of the Making Homes Affordable program because this measure is voluntary. Lenders don’t have to write down principal balances. In fact, many have outright balked at doing so, preferring instead to go the home loan modification route — of which many are temporary, not permanent.

This is one of the main reasons, homeowner advocates say, more loans haven’t been permanently restructured under the Making Homes Affordable program.

The cost of these changes is made possible via $50 of TARP funds (aka the Trouble Asset Relief Programs) that were allocated for housing.

One Big Barrier to More Homeowners Getting Help from the Government’s Prevent Foreclosure Programs

Perhaps one of the biggest stumbling blocks to many homeowners getting help is understanding exactly what type of help is available. For example, many homeowners may not know that under the government’s Making Homes Affordable (MHA) program there are two kinds of help: (i) HAMP; and (ii) HARP.

HAMP is the Home Affordable Modification Program: It is designed to help homeowners meet eligibility requirements to avoid foreclosure by modifying their existing home loans to a more affordable level. Your home does not have to be an FHA loan, like in HARP (discussed below).

See if you qualify for a home loan modification under HAMP.

HARP is the Home Affordable Refinance Program: The goal of this program is to help homeowners refinance their home loans. To be eligible for HARP help, your home loan must be a Fannie Mae or Freddie Mac-backed loan (ie, an FHA loan), among other qualifications.

One of the biggest hurdles many homeowners face when trying to modify or refinance their mortgage is finding out if their home loan is an FHA loan.

How to Find Out If Your Home Loan is an FHA Loan

You can find out if your home loan is an FHA loan (ie, backed by Fannie May) by conducting a Fannie Mae’s Mortgage Lookup Search. Fannie Mae is the larger of the two agencies, so it makes sense to start your search here. If you’re not comfortable using the internet, you can call Fannie Mae at 1-800-7FANNIE (8am to 8pm EST).

You can find out if your home loan is an FHA loan (ie, backed by Freddie Mac) by conducting a Freddie Mac Mortgage Lookup SearchNote: You will have to provide your social security number. You can also call their offices toll-free between 8 am and 8 pm EST. It’s 1-800-FREDDIE (8am to 8pm EST) .

See if you qualify for a home loan modification under HARP.

Points of Interest about HARP

The PMI Requirement: Some lenders won’t qualify you under HARP if you currently have PMI (Private Mortgage Insurance).  Some will though and many are changing their qualification guidelines to allow this.

No Explanation Required: Some homeowners have reported that even though they met all qualifying guidelines, they still were not approved by Fannie and/or Freddie. Why? This is the kicker — no explanation was given.  

The Bottom Line on Getting Help from HAMP or HARP

Patience is the name of the game.  Many homeowners trying to prevent foreclosure report that the process is long – in some cases 6 to 9 months to get their home loans modified and/or refinanced. You may go through a few different people and get a few different answers.

Tips for Getting Through the Home Loan Modification or Home Loan Refinancing Process

Maintain your cool;

Make several copies of all documents (never send in your originals);

Maintain copious notes of who you spoke with, when, at what institution, what they said;

Follow up (after a suitable amount of time, if they haven’t called you, call them);

Try, try again (if something doesn’t sound right or make sense, keep asking);

Get funds together (make sure you have enough to cover closing costs, appraisals and any other expenses you incur in the process).

Ask questions (if you don’t understand something, ask questions until you do).

Good luck! Remember, the price of all of your patience can be a significantly lower monthly payment on your mortgage. And oh yeah, the biggest payoff — you get to keep your home.

P.S.: Start a Business Cleaning Foreclosed Properties. While the foreclosure crisis has been a nightmare for many, it has presented a perfect small business opportunity for others. Learn how to start a foreclosure clean up business. Read how one foreclosure cleaning business owner rakes in $40,000/wk (not a typo).
foreclosure1
P.P.S.: Like this post? Follow Foreclosure Business News on Twitter. 

P.P.P.S.: Wonder how foreclosure affects your credit? Read Foreclosure & Credit: How Does Foreclosure Impact Your Credit Report? and Credit Report Repair: Credit (FICO) Scoring Explained.

repair-credit 

Get the FREE credit repair report, 6 Credit Repair Myths and 6 Specific Ways to Raise Your Credit Score and start repairing your credit.

Copyright © 2010 Yuwanda Black for Foreclosure Business News. Article may not be reprinted or reproduced in any manner without the express, written consent of the author.

Home Foreclosure News: Should the Government Intervene or Let the Market Take Care of the Home Foreclosure Situation?

According to a financial expert quoted in a recent Bloomberg article, the housing market recovery is still about three years away. Why? Two major reasons stand out: 

(i) The Jobless Recovery: While things are looking up, unemployment has remains high — at 9.7%, lending credence to the “jobless recovery” theory that many experts tout. Without jobs, people simply can’t afford to get back on their feet.

housing-market-recovery

And the fact that the government is throwing the kitchen sink at the foreclosure crisis to try to speed up the housing market recovery (ie, HAMP) doesn’t seem to be helping too much. It’s jobs, jobs, jobs that are the foundation that holds everything else up.

(ii) More Foreclosures to Come: According to the article alluded to above, Housing Rebound at Least 3 Years Away, Ranieri Says (Update1), there will be more foreclosures this year than there were last year, ie:

Home foreclosures probably will reach a record this year with more than 1 million properties seized by banks, according to data seller RealtyTrac Inc.

This surprises many who don’t keep a close watch on the home foreclosure crisis because many news reports are starting to lead the news with the the positives that are starting to happen on the home foreclosure front now. And while good news is always welcomed, the truth of the matter is, we’re still in deep doo doo on the housing front.

The Home Foreclosure Crisis: Danger Lurks Beneath

AND, there’s a third reason that could be a bigger contributing factor than many experts want to given credence to that could keep the housing market from recovering quickly. What is it? The homeowners that lenders are purposely NOT foreclosing on right now.

If these numbers were added in, the picture is even bleaker than you’ll hear about on your evening news or read about in your local newspaper.

Looking for a Home? Buy a Foreclosure Cheap & Enjoy Instant Equity

Should the Government Intervene or Let the Market Take Care of the Home Foreclosure Situation?

Larry Mizel, chief executive officer of Denver-based homebuilder MDC Holdings Inc., said in the Bloomberg article that:

. . . the federal government should allow homes to be foreclosed on and sold at reduced prices to new buyers.

On the one hand, this makes sense. After all, homes have never been more affordable now and this inventory will eventually be sold to qualified buyers.

With lenders being stricter than ever on home loans, one good thing to come out of the foreclosure crisis is that you’ll no longer have unqualified or marginally qualified homebuyers getting mortgages. So those who buy now aren’t likely to face foreclosure in a few years.

On the other hand, what about those who’ve lost their homes because of job loss? Remember, these are the folks who are on the hotseat now, not subprime borrowers who should have never been given a mortgage in the first place. 

The people losing their homes now are they ones that had good jobs and good credit. They didn’t buy “too much house,” or take on “exotic mortgages” they couldn’t afford.

 All they did was get caught up on a financial crisis — brought on in part by the by the shenanigans of the shysters on Wall Street who contributed to this mess — and lose their livelihoods. But the boys on Wall Street got bailed out. So it’s easy for them to say “let the market take care of the home foreclosure crisis.”

But, many who’ve lost jobs did so in industries that aren’t coming back. So, these workers have to not only look for a new job, they have to look for a job in new industries, which means being retrained. Here again, the government is trying to lend a hand via the “Obama Jobs Summit.”

So, what about these folks?

Where’s their bailout?

P.S.: Start a Business Cleaning Foreclosed Properties. While the foreclosure crisis has been a nightmare for many, it has presented a perfect small business opportunity for others. Learn how to start a foreclosure clean up business. Read how one foreclosure cleaning business owner rakes in $40,000/wk (not a typo).

foreclosure1

P.P.S.: Like this post? Follow Foreclosure Business News on Twitter.

Copyright © 2010 Yuwanda Black for Foreclosure Business News. Article may not be reprinted or reproduced in any manner without the express, written consent of the author.

$8000 Tax Credit for First Time Homebuyers Expires This Friday, April 30th

The $8,000 tax credit for first-time home buyers will expire this Friday, April 30th. So if you’re in the market for a home, NOW is literally the time to buy. Following are the details of the program:

Earnings Threshold: Couples can earn up to $225,000 a year. The limit is $125,000 for singles.

Home Purchase Price Threshold: Home cannot cost more than $800,000.

Occupancy: Credit is only for primary residences. If you sell the home within three years of purchasing it and take the credit, you will have to repay it. Another caveat is that you CAN NOT have OWNED a primary residence (ie, have purchased a home and lived in it), for the past three years. If you’ve done this, you are not considered a “first-time” homebuyer.  

Trade Up Allowance: If you’ve lived in your current primary residence for at least five years, you can trade up to another home and get a $6,500 tax credit.

The Real Deadline: While a contract must be signed by this Friday, April 30th, you have until the end of June to close.  

Looking for a Home? Buy a Foreclosure Cheap & Enjoy Instant Equity

Special Extended Deadline for Military, Foreign Service and Intelligence Professionals

. . . for qualified service members who are ordered on a period of official extended duty, these dates are extended for one year. For these home buyers, the tax credit applies to sales with a binding sales contract in place on or before April 30, 2011 and closed by June 30, 2011 (emphasis added) [Source: FederalHousingTaxCredit.com]

How to Claim the $8,000 Tax Credit

This tax credit is part of President Obama’s economic stimulus package. It allows first-time homebuyers to receive a 10% credit for a primary residence purchase on their 2008 or 2009 income taxes.  

To claim this credit,  all you have to do is claim it when you file your annual income taxes. There are no separate forms or filings necessary. And, you can file amended returns to claim the credit if you failed to do so durying a qualifying year.

Question: If I buy a home in 2010 and the tax credit can only be claimed on returns for the years 2008 and 2009, how do I get the credit? Do I still qualify for it?

Answer: The answer is yes, you do qualify for it. To explain, the program’s original deadline for expiration was November 30, 2009. With its extension to April 30, 2010, you can get the tax credit for purchasing a home in the year 2010 by filing an amended 2009 income tax return to get the credit.

Help with Down Payment and Closing Costs

FYI, you can get help with your downpayment and closing costs if you’re buying a home. Many prospective homebuyers don’t realize it, but some states have special 1st time homebuyer grants and loans that allow qualified homeowners to borrow all or part of the tax credit, which can be used to help with down payment and closing costs.

Ask your mortgage consultant or lender about programs you may qualify for. Also, do some research on the internet to see what you can find. Believe it or not, your loan officer, mortgage consultant or lender may not be aware of what’s available to you, as new programs are coming out all the time.

Get full details on the $8,000 Tax Credit for First-time Homebuyers.

Lost a home to foreclosure or “almost foreclosure” (eg, short sale, deed in lieu of foreclosure) in the last few years?

All is not lost. You can still qualify for a home loan under Fannie Mae guidelines.

P.S.: Start a Business Cleaning Foreclosed Properties. While the foreclosure crisis has been a nightmare for many, it has presented a perfect small business opportunity for others. Learn how to start a foreclosure clean up business. Read how one foreclosure cleaning business owner rakes in $40,000/wk (not a typo).

foreclosure1

P.P.S.: Like this post? Follow Foreclosure Business News on Twitter.

Copyright © 2010 Yuwanda Black for Foreclosure Business News. Article may not be reprinted or reproduced in any manner without the express, written consent of the author.

How the Foreclosure Crisis Started: Investors, Speculators, Mortgage Fraud & Lax Lending Standards All to Blame

Have you ever wondered how the whole foreclosure mess started? An excellent, detailed series by Keith Jarrow at the Real Estate Channel gives you a birds-eye view of where it all went wrong. Expecially interesting is how it got so off track, so fast.

The Collapse of the Housing Market: The Major Players & How They Contributed

Investors: They played a great part in collapse of the real estate market. In the article, Investors Played a Key Role in Creating Housing Bubble, Mr. Jarrow points out:

An important, well-researched article posted online in November 2009 by the St. Petersburg Times found that 44% of the 11,967 residential properties foreclosed in 2007-2009 in Hillsborough County, Florida were owned by investors who did not occupy these homes.

Speculators: Some might call them the first cousin of investors, but they propably did more harm as their activity drove up the prices of homes very quickly. In the article, How Speculative Madness Changed the Housing Market, Mr. Jarrow uses the city of Phoenix as an example of how speculators decreased housing inventories and drove up prices, writing:

Phoenix had become a hotbed of speculative buying.  By March 2005, monthly home sales had climbed to nearly 10,000, up 13% from March 2004 and 73% higher than March 2001 sales.  Speculative interest was so great that the inventory of homes for sale had plunged from 23,000 in March 2004 to a mere 3,000 a year later.

The less homes that are available for sale, the more the price goes up . . . a simple case of supply and demand.

How to Invest in Cheap Foreclosures to Earn Passive Monthly Income
(& Retire Early)

The final piece of the puzzle that led to the collapse of the housing market came from the lending side. By now, even if you don’t know what a subprime mortgage is, you’ve heard the term ad nauseam. Lending standards got to be so lax that there was practically no regulation at all.

Mortgage Fraud: And, this doesn’t include out and out fraud – which played a major part in the collapse of the housing market. In the final article in the series, How Widespread Mortgage Fraud Toppled the U.S. Housing Market, Mr. Jarrow explains that there were some whow warned what was to come, ie, the FBI: 

In September 2004, the FBI reported that there was a “growing epidemic” of mortgage fraud in the country that could eventually cause the collapse of the housing market.  No one paid much attention . . .

Why did no one heed the warning? In short, the war on terror was the focus of the administration att the time. And really, who could’ve imagine that such brazen fraud on such a rampant scale would take place. A few million here or there in fraud, yes; easy to foresee that happening.

But billions . . .and that’s what the foreclosure crisis wound up costing the American taxpayer — billions. It still boggles the mind — even with an explanation staring you right in the face.

Lax Lending Standards: Zero Down Home Loans — Have They Gone the Way of the Dinosaur?

As a side point, I was a loan officer during this time (2005-2006). Credit standards were so lax that all you needed to qualify for a 100% home loan (zero down home loan) was a 580 credit score. Yes, a 580. That’s no typo. How dramatically have things changed?

Not only are zero down home loans practically gone the way of the dinosaur these days (ie, become extinct), you have to have a near perfect credit score (720 to 780)  to qualify for a home loan — and you have to have a significant down payment 10 to 20% in most cases.

Even federal mortgage underwriters like Fannie and Freddie have changed their lending standards, as we wrote about in the post, Lost Your Home to “Almost” Foreclosure? Fannie Mae Wants to Help You Buy Another One, ie:

While Fannie is not making homeowners who’ve had trouble with home ownership in the past wait as long, they have tighted qualifying guidelines. For example, instead of a 3 or 5% down payment like in the past. Now the down payment has to be significantly more — 20 percent.

Looks like the ship is going to right itself, but the American tax payer is the one paying the price for the foreclosure crisis — literally and figuratively.

P.S.: Start a Business Cleaning Foreclosed Properties. While the foreclosure crisis has been a nightmare for many, it has presented a perfect small business opportunity for others. Learn how to start a foreclosure clean up business. Read how one foreclosure cleaning business owner rakes in $40,000/wk (not a typo).

foreclosure1

P.P.S.: Like this post? Follow Foreclosure Business News on Twitter.

Copyright © 2010 Yuwanda Black for Foreclosure Business News. Article may not be reprinted or reproduced in any manner without the express, written consent of the author.

Home Foreclosure Auctions: The Biggest Advantage and Disadvantage of Them

Home foreclosure auctions are good news for some, but bad news for others. Here we take a look at the biggest advantage and disadvantage of them.

Home Foreclosures

The Biggest Advantage of Home Foreclosure Auctions

Obviously, it’s a deal for the buyer — this is the biggest advantage. But those in the community benefit as well — on several fronts, ie:

Removes Crime Threat: The longer a foreclosed property stays vacant, the more of a crime magnet it becomes, as discussed in the post here, How Foreclosure Cleanup Companies Are Keeping Neighborhoods Safe.

Raises Property Values: This is a long-range benefit. But, the more foreclosed homes are sold — whether at auction or not — the more home prices can stabilize and then start to rise. As long as there is a glut of foreclosed properties on the market, home prices continue to depreciate, as discussed in this news report on the advantages of home foreclosure auctions.

It features a California community where “foreclosures and short sales (homes that are not yet in foreclosure but are being sold to prevent foreclosure) represent close to 50 percent of the region’s real estate market.”

Keep these positives in mind when you hear all of the disheartening news about home foreclosures.

Now, for the bad news . . .

The Biggest Disadvantage of Home Foreclosure Auctions

When someone loses their home to foreclosure, it affects not only the property owner at hand, but the community as a whole. Why/how?

Because homes are appraised based on what the homes in a given area — uusally a 1 to 3 mile radius — have sold/can sell for. So when someone comes along and pays $100,000 for a home at a foreclosure auction, but you paid $150,000 for yours just four years ago, it drags down the value of your property as well.

So the biggest advantage is that – in the short run (which can last for a few years) — foreclosures in the community drag down the property values of the surrounding homes. For how long depends on a number of factors, eg, the economy, the housing inventory, amenities in a community, etc.

But again, this is usually temporary. Housing prices usually do bounce back. How long you’re prepared to ride it out is the real question as to how deeply you’ll be impacted. If you love your home and don’t want/need to sell it, while it’s losing value definitely is not something you want, it’s not something you’re likely to lose a whole bunch of sleep over.

BUT, if you need to sell it for any reason — a move, downsizing for retirement, to pay off medical bills, etc. — it can definitely cause a lot of sleepless nights.

As with anything in life, it’s a matter of perspective.

P.S.: Start a Business Cleaning Foreclosed Properties. While the foreclosure crisis has been a nightmare for many, it has presented a perfect small business opportunity for others. Learn how to start a foreclosure clean up business.

Read how one foreclosure cleaning business owner rakes in $40,000/wk (not a typo).
foreclosure1
P.P.S.: Like this post? Follow Foreclosure Business News on Twitter.

Copyright © 2010 Yuwanda Black for Foreclosure Business News. Article may not be reprinted or reproduced in any manner without the express, written consent of the author.

Lost Your Home to “Almost” Foreclosure? Fannie Mae Wants to Help You Buy Another One

In the past, if you “almost” lost a home to foreclosure, eg, did a short sale, did a deed in lieu of foreclosure, etc., you had to wait four to five years in order to qualify — under Fannie Mae guidelines — to buy another one. Well that’s no longer the case. Now, you can qualify in as little as two years.

According to the New York Times article, Fannie Mae wants to help some troubled borrowers get back into home market, the organization sent out a  a bulletin to lenders dated April 14 stating:

. .  . it is relaxing rules that prevented loan applicants who have participated in short sales or deeds in lieu of foreclosure from obtaining a new mortgage for extended periods of time. The new rules are scheduled to take effect July 1.

Is This Rule Change in Home Loan Qualifications a Slippery Slope into More Home Foreclosures?

Apparently not.

While Fannie is not making homeowners who’ve had trouble with home ownership in the past wait as long, they have tighted qualifying guidelines. For example, instead of a 3 or 5% down payment like in the past. Now the down payment has to be significantly more — 20 percent.

Home Loan Qualification Under Fannie Mae: Down Payment Determines How Long You Have to Wait

If a prospective borrowner can’t come up with that much, they’ll have to wait longer. How long depends on how much of a down payment they have, eg:

10% — wait 4 years, UNLESS applicant can prove that the loss of a previous home was due to extenuating circumstances (eg, loss of job, medical bills, etc.);

Less than 10% – could be longer than four years.

While losing a home you want is always hard, it’s not the end of the world. It is possible to recover, mortgage giants  like Fannie Mae are assisting in that recovery.

P.S.: Start a Business Cleaning Foreclosed Properties. While the foreclosure crisis has been a nightmare for many, it has presented a perfect small business opportunity for others. Learn how to start a foreclosure clean up business. Read how one foreclosure cleaning business owner rakes in $40,000/wk (not a typo).

foreclosure1

P.P.S.: Like this post? Follow Foreclosure Business News on Twitter.

Copyright © 2010 Yuwanda Black for Foreclosure Business News. Article may not be reprinted or reproduced in any manner without the express, written consent of the author.

Home Foreclosures On Pace to Exceed the 2.8 Million Initiated in 2009

While some good news on the home foreclosure front can be found, home foreclosures this year are on pace to exceed the almost 3 million that were initiated last year. First, the good news:

Home Foreclosure Crisis Easing in California

California has been one of the hardest hit states by the foreclosure crisis.  According to a recent article on  in the Los Angeles Times on home foreclosure there’s been a precipitious drop in mortgage default notices. The article states:

Mortgage default notices — the first step toward foreclosure — plunged 40.2% statewide in the first three months of the year compared with the same period in 2009, according to San Diego research firm MDA DataQuick.

Home Foreclosure Filings Drop in Dallas-Forth Worth

A recent article in The Dallas Morning News on the home foreclosure crisis, the same trend spotted in California can be found in the Dallas-Forth Worth area, another region hit hard by the home foreclosure crisis. The article states:

The 4,861 Dallas-Forth Worth homes scheduled for foreclosure in May represent a 12 percent decline from a year ago.

If these reports are anything to go by, the home foreclosure crisis may be at the beginning of the end. However, we have a ways to go according to a recent article on BusinessWeek.com. It states:

U.S. home foreclosures this year are on a course to exceed the 2.8 million initiated in 2009, with more than 932,000 filings during the first three months . . .

In spite of the government foreclosure prevention program, HAMP, foreclosures continue to rise. A number of reasons are cited, ie, second liens and homeowners debt-to-income ratios — which remain high.

And, although it wasn’t cited in the BusinessWeek.com article on home foreclosure, unemployment can’t be overlooked. Still hovering near 10% – and exceeding it in some regions — this is a major contributing factor.

P.S.: Start a Business Cleaning Foreclosed Properties. While the foreclosure crisis has been a nightmare for many, it has presented a perfect small business opportunity for others. Learn how to start a foreclosure clean up business. Read how one foreclosure cleaning business owner rakes in $40,000/wk (not a typo).

foreclosure1

P.P.S.: Like this post? Follow Foreclosure Business News on Twitter.

Copyright © 2010 Yuwanda Black for Foreclosure Business News. Article may not be reprinted or reproduced in any manner without the express, written consent of the author.

Goldman Sachs Charged w/Subprime Fraud: Gov’t Seeking “Pound of Flesh” from Finance Industry that Caused the Foreclosure Crisis?

Some might say that the Obama administration is seeking a serious pound of flesh from Wall Street for its part in the foreclosure crisis. Why/how?

Finally — An Indictment of the Big Boys for Their Part in the Subprime Mortgage Crisis

The Securities and Exchange Commission recently charged banking giant Goldman Sachs with subprime mortgage fraud stemming from the way it marketed subprime mortgage products.

sec-goldman-sachs-subprime-fraud

Many financial experts say that the company, in essence, bet against the very investors whose money it was supposed to protect. How? By in essence,  betting against the debt contained in the packages that included these types of mortgages. According to the MSNBC.com article, U.S. charges Goldman with subprime fraud, following is the foundation of the case:

The case also involves John Paulson, a hedge fund investor whose firm Paulson & Co made billions of dollars by betting the nation’s housing market would crash. This included an estimated $1 billion from the transaction detailed in the lawsuit, which the SEC said cost other investors more than $1 billion. Paulson was not charged.

Obama Administration Seeks to Regulate Wall Street

Since he came to office and had to almost immediately bail out Wall Street, many on Main Street have been asking,

When are the crooks responsible for this mess going to pay? Someone HAD to know what was going on.

As very few understand the so-called complex derivates market that produces deals like this, the government not only wants regulations changed so that there’s more transparency, they want more accountability as well. And, they’re seeking to get it via legislative changes.

The Foreclosure Crisis: Will Wall Street Pay for Its Part in the Morgage Meltdown?

How it all shakes out is anybody’s guess. But with this latest indictment, it certainly makes Wall Street’s cries for less government regulatory oversight a lot weaker.

Stay tuned to see if any of the “big boys” will pay for the foreclosure crisis — along with the struggling American homeowner who’s just trying to hang onto their little piece of the American dream.

P.S.: Start a Business Cleaning Foreclosed Properties. While the foreclosure crisis has been a nightmare for many, it has presented a perfect small business opportunity for others. Learn how to start a foreclosure clean up business. Read how one foreclosure cleaning business owner rakes in $40,000/wk (not a typo).

foreclosure1

P.P.S.: Like this post? Follow Foreclosure Business News on Twitter.

Copyright © 2010 Yuwanda Black for Foreclosure Business News. Article may not be reprinted or reproduced in any manner without the express, written consent of the author.

Florida Foreclosure Law: How to Get Your Home Back Even After It’s Sold at Auction

Stopping foreclosure is no easy process – no matter where you live. But, there are options – even if it’s been sold at auction. These laws are known as right of redemption laws. Not all states have them and of those that do, they are applied differently.

Following is an in-depth overview of Florida’s right of redemption laws and how they can help you prevent foreclosure and/or get your home back even if it’s been sold.

Before we get into the particulars of this Florida’s foreclosure law, let’s first cover the right of redemption law from a general standpoint.

Mortgage Foreclosure Law: What is a Right of Redemption?

When a home is foreclosed on by a lender, there’s a window of time a homeowner has to purchase the home back. This window of time is called the “right of redemption.” And, a property owner can exercise this right – even if the property has already been sold at auction, for example.

But, that’s about the only similarity these laws have in common. Where they differ from state to state (in jurisdictions that have right of redemption laws) is in how long the right of redemption period is and a host of other factors.

Now that you know what right of redemption laws are, let’s discuss Florida’s right of redemption law so you can gain a better understanding about how you may be able to prevent foreclosure and/or get your home back even if it’s been sold.

florida-foreclosure-law

Florida Foreclosure Law: The Foreclosure Process

To understand how you may be able to get your home back using right of redemption laws in Florida, the first thing you must understand is how the foreclosure process works in Florida.

There are basically two types of foreclosure in the U.S. – Judicial Foreclosure and Non-Judicial Foreclosure. Following is an explanation of the two.

Stop Foreclosure Advice: The Difference between a Judicial and a Non-Judicial Foreclosure

When you take get a home loan, you, of course, sign papers promising to repay the loan. Depending on which state you reside in, these papers are called either a “deed of trust (aka trustee’s deed)” or a “mortgage.” While most of us refer them as “mortgage papers”, there is a difference legally that affects the home foreclosure process.

What’s this difference?

A mortgage involves two parties – the borrower and the lender. If you live in a mortgage state, if you don’t pay your mortgage, your lender has the legal right to foreclose on the property and sell it to recoup what is owed on it. In order to do this, however, the lender must go to court. This is what’s known as a judicial foreclosure (because it involves the judicial system).

A deed of trust, on the other hand, involves three parties. In you live in a deed of trust state, the lender does not have to go to court to start the foreclosure process. And, that’s what makes it a non-judicial foreclosure.

Lenders like non-judicial foreclosures for the obvious reasons – the process tends to be quicker and easier, not to mention less expensive.

How Do Right of Redemption Laws in Florida Help Homeowners Stop Foreclosure

In Florida, the right of redemption law is a little less forthright compared to other states. For example, there’s usually a defined window of time in which a homeowner can buy their home back after it’s sold. This time period in the vast majority of states is in the 6-12 month range.

In Florida though, you may have as little as a day because after the Certificate of Sale for a property is issued, there is no more right of redemption. In short, Florida’s foreclosure law as it relates to right of redemption is this: The homeowner can buy his/her property back any time before the day of the sale.

HOWEVER, a caveat that gives a homeowner a “right of redemption” period is this . . . a court is allowed to “review the sale” to ensure that a fair price was paid for the property.” There is no definitive set time period written into law, but it usually takes about 10 days according to real estate experts.

Somewhat ironically, this is about the amount of time it takes for a certificate of sale to be filed and for a title clearance to take place.

In simple terms, what this means is that you really don’t have a right of redemption in Florida unless you can prove that something went wrong or was shady with the foreclosure process itself.

Deficiency Judgments in Florida: Can a Lender Sue You If Your Home Sells for Less Than Is Owed?

Yes, a lender can come after you for the balance if your home sells for less than is owed on the mortgage. However, there are several ways around this. For example, if you do a short sale with no recourse (this italicized part is very important). What this means is that the lender has agreed NOT to come after you for the balance. Nowadays, this is very common by the way.

Stop Foreclosure in Florida: What Do I Need to Do to Get My Home Back Using the Right of Redemption?

If you want to exercise your right of redemption in Florida to get your home back, you must pay off all that is owed in full up to and including – balance due on home loan, all penalties, all arrears, property taxes, attorney fees, HOA fees, property insurance and any other fees incurred by the lender.

How Long Does the Home Foreclosure Process Take in Florida?

According to experts, it can take anywhere from five to more than six months. It may be longer in today’s foreclosure-ridden market though. And if you contest the process (especially by declaring bankruptcy to avoid foreclosure), it can take even longer than that.

Get a state by state breakdown of how long the foreclosure process takes.

Read More in the Foreclosure Business News Series on Right of Redemption Laws

Here are 7 things you should know about right of redemption laws.

Alabama Foreclosure Law: The Right of Redemption

California Foreclosure Law: The Right of Redemption

foreclosure

Foreclosure Cleaning: An Evergreen Small Business Opportunity

Many savvy entrepreneurs are capitalizing on the home foreclosure crisis in Florida by starting foreclosure clean up businesses.

And no wonder, it’s the type of real-estate services business that thrives no matter what the real estate market is doing. Why? Because as long as real estate is bought and sold, it will need to be cleaned and maintained (eg, grass cut, locks changed, windows boarded up, etc.).

P.S.: Like this post? Follow Foreclosure Business News on Twitter.

Copyright © 2010 Yuwanda Black for Foreclosure Business News. Article may not be reprinted or reproduced in any manner without the express, written consent of the author.

Home Foreclosure News: Foreclosure Crisis Finally Catching Up with the Rich

The little guy isn’t the only one losing his home to foreclosure these days. The foreclosure crisis is finally catching up to the rich — in a big way if the stories recounted in the MSN article, Hard times in Paradise: The foreclosure crisis catches up with a wealthy, exclusive community in Arizona that once considered itself immune are anything to go by, eg:

Lucky homeowners strike gold — picking up a home for $2.2 million that was previously listed for $8 million;

Home listed for $3.5 million that defaulting owner paid $6.5 million for; and

Instances of homes listed for $10 million selling for $2 million.

If you’ve got the cash and want to trade up — significantly — these home foreclosures on the rich present the perfect opportunity.

P.S.: Start a Business Cleaning /Trashing Out/Maintaining Foreclosed Properties. Western states like Arizona, California and Nevada make up for upwards of 30-40% of the home foreclosure crisis. It’s an ideal time to start a business servicing these properties. Learn how to operate a successful foreclosure cleaning business. Read how one foreclosure cleaning business owner makes up to $40,000/wk.

foreclosure1

P.P.S.: Like this post? Follow Foreclosure Business News on Twitter.

Copyright © 2010 Yuwanda Black for Foreclosure Business News. Article may not be reprinted or reproduced in any manner without the express, written consent of the author.

Next Page »