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 Documents to Prepare to Bring with You to a NACA “Stop Foreclosure” Workshop

All this week here we will be discussing how to stop foreclosure with the help of NACA, The Neighborhood Assistance Corporation of America (“NACA”). In yesterday’s post, we gave an overview of what to expect when you attend a NACA workshop.

Today, we’re going to go over the paperwork you need to bring to the workshop, and what you have to do with it.

Stop Foreclosure: Documents You Need to Bring with You to a NACA Workshop

On this page of NACA’s website, you’ll find a list of the documents you need to bring with you if you want to get a same-day home loan modification. You don’t have to bring anything with you, but if want to get help immediately, it’s so worth it.

As we stated in yesterday’s post, it’s going to be an all-day thing – anywhere from 8-12 hours. You have to wait in line and attend orientations anyway to get the information you need, so why not be ready – then and there – to apply for a home loan modification.

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Documents You Can Print from the Web 

Following are links to the documents they ask for that you can print from the web.

4506 Form: This is a Request for Transcript of Tax Return form. This allows NACA to request a copy of your tax return from the IRS. One page.

RMA Form: Request for Modification Affidavit. This is a government (Fannie Mae). About 90% of the home loans in the U.S. are with Fannie Mae / Freddie Mac. So when you request a home loan modification, you’re probably going to be dealing with them (via your lender) in some way. Three pages.

Dodd-Frank Form: This form is just one page that you sign (print last page of this doc only). By signing it, you certifying that you haven’t been convicted of any crime related to a mortgage or real estate transaction in the last 10 years.

This legislation was signed into law by President Obama in direct response to a lot of the mortgage and financial fraud that led to the current housing crisis. Learn more about the Dodd-Frank Act.

Credit Bureau Authorization Form: Allows NACA to pull your credit report. Don’t worry, getting help from NACA has nothing to do with your credit. The reason they pull your credit report is to see if you own more than one home. In order to get home loan modification help from NACA, your home must be your primary residence and you must live there. So, if you have other properties, you don’t qualify.

All of the other documents you’re required to bring are stuff you should have (eg, proof of homeowners insurance, bank statements, W2’s, etc.) and/or create yourself (eg, a hardship letter). 

What You Will be Doing with Your Paperwork During the NACA Workshop

Don’t think that you can fudge numbers (especially if you’re self-employed) with NACA. You can’t. Why? Because they require proof of EVERYTHING in the form of printed bank statements, copies of check stubs, etc.

If you can’t verify it, it doesn’t exist. So, just know that going in. And once you complete your paperwork, you can’t go back and change numbers, “for obvious, ethical reasons,” as they put it. So be sure your figures are exact.

Want to Get a Home Loan Modification via NACA? Here’s the #1 Thing You Need to DO 

Here, we’ll talk about the paperwork for self-employed individuals, because if you’re a W2 employee, then it’s relatively easy to verify your income. But, if you’re self-employed, it can get a bit more sticky, which is why you are required to bring 6 months’ worth of bank statements. Yes, six months’ worth.

In order to help NACA get you a home loan modification, you’re going to have to prove everything. No more “liar’s loans,” and fudged P&L statements.

This is why you must, for example, print every page of your bank statements, even if it has no numbers on it. So, when you go to print out your documents (eg, your bank statements), if it says Page 1 of 6 on the first page of your monthly statement, you’d better have all 6 pages, even if that last page is only bank legal mumbo jumbo.

And, print out all pages of ALL of your bank accounts. It doesn’t matter if your finances are co-mingled (eg, you use your personal account for some business expenses). The NACA rep will tell you what to do, which is basically go through each page and mark it up.

You’ll be instructed to put a “D” besides those deposits that were for your BUSINESS, and an “E” besides BUSINESS expenses. Certain types of transactions won’t count. For example, if you transfer funds from one bank account to another, those won’t count. Why? Because they could be for anything. But if you deposit money from say, a PayPal account into your bank account, or a check for a job you did, then that does count.

What you’re in essence doing is creating a profit and loss statement (P&L) on the spot. And as I said, you can’t play fast and loose with the numbers with this organization, so just know that going in.

Once you’ve added up all of your deposits and expenses, you’ll then transfer those numbers to a worksheet, and then subtract expenses from deposits. This will then show what you have left over after in income.

The NACA rep will then verify your numbers (yes, they look at your bank statements and double check your math (twice).

How long all of this takes depends on you, ie, how long it takes you to go through your bank statements, and “work your numbers.”

After a rep checks your numbers, you eventually get in front of a counselor who will scan your documents, entering all of your info into a database. At this juncture, you’ll be asked about your expenses (eg, car payment, electric, cable, etc.). The rep will then look through the numbers you gave earlier in essence your P&L statement earlier, add up your expenses and run the numbers to determine what your new mortgage payment should be.

You then take this paperwork and present it to your lender/servicer (if they’re at the event). And they either approve it or not. As you can see, all the work is done right there on the spot – and this is why lenders/servicers can give same-day home loan modifications.

If your lender is not there, all of your paperwork is in NACA’s system. They will forward it to your lender for you. You’re given a NACA ID number so you can access your NACA file online and see when/if your lender responds (they’re supposed to do so within 30 days). 

The Importance of Net Income vs. Gross Income When Getting a Home Loan Modification via NACA

Note: One thing NACA does, which should be common sense when applying for a mortgage, is to only consider your NET income, as opposed to gross. After all, gross doesn’t mean a hill of beans because it’s not like paying taxes is “optional.” The only figure that matters is your net – ie, what you bring home each week, right?

So if you’re grossing $500 per week, but only bring home $425 after taxes, that matters a lot when figuring out how much your mortgage payment should be. Most lenders use the 31% of income figure. So at your gross, that would be $620/month mortgage ($2,000 x .31), as opposed to $527 if only net income of $425 is used ($1,700 x .31).

That’s about a $100 per month difference, which makes a big difference if you’re struggling to get by. 

Getting a Home Loan Modification via NACA IS Up to You

It’s up to you to be proactive in checking your file – the counselors recommend daily – and getting in touch with your lender if they drag their feet (and to also contact NACA if you need help).

The counselors stress that NACA doesn’t have the man-power to proactively follow up with each homeowner who attends their workshops. So again, it’s up to you contact them if you have questions, contact your lender if they’re not responding, etc.

The process itself is simple – and it is – it’s the waiting that takes so long. Remember, usually a few thousand homeowners who need help stopping foreclosure show up at NACA “Save the Dream” tours (see this link for a list of cities where NACA will be).

In tomorrow’s post, we’ll discuss in detail what to do after you attend a NACA workshop to help stop foreclosure.

Get Answers to Your Home Loan Modification Questions

Have a Home Loan Modification Question? Have a Question About NACA? Send it to us. We’ll get you the answers you need.

Related Posts

Home Loan Help: Documents Needed to Apply for a Mortgage Modification with HSBC (and Other Lenders)

Home Loan Modification Help: Lenders Call It “Dual Tracking”; Homeowners Call It “Double Crossing”

Stopping Foreclosure: Obama Administration to Launch 2 New Programs to Help Homeowners Avoid Foreclosure (One is for Unemployed Homeowners)

Stopping Foreclosure: Banks Considering Giving Principal Reductions, Permanent Modifications & More to Prevent Foreclosure for Many Homeowners

Mortgage Loan Modification: Top 10 Questions About (Home) Loan Modifications

Foreclosure Advice: Should You Continue to Pay Your Mortgage While You Wait for a Home Loan Modification?

Home Foreclosure News: Occupy Wall Street People Have Been Stealing Our Ideas on How to End the Home Foreclosure Crisis

Stopping Foreclosure: Loan Modification Program That Helps Struggling Homeowners

P.S.: Foreclosure Clean Up Job Leads: FYI, don’t forget to bookmark the site and come back for direct leads on foreclosure cleaning jobs, foreclosure cleaning contracts and foreclosure cleanup request for bids on jobs.

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In last Friday’s post, we promised to spend this week discussing NACA, a non-profit organization that helps homeowners stop foreclosure.

We Were Simply Blown Away by This Non-Profit Agency’s Foreclosure Prevention Services!

The reason we want to dedicate a whole week to this is that we were blown away at the services this organization provides – and how effective they are. Many homeowners are trying to stop foreclosure are so overwhelmed with so much information that they don’t know who to turn to to get legitimate help.

Well, look no further. As we said in our last post, we attended a NACA workshop, and go the first-hand scoop on what this organization is all about. And, we were simply blown away.

Today, we’re going to discuss what to expect when you go to a NACA workshop. Following is what we’ll cover in the entire series:

Today: What to Expect When You Attend a NACA “Prevent Foreclosure” Workshop

Tuesday, January 17^th: Documents to Prepare to Bring with You to a NACA Workshop

Wednesday, January 18^th: After the Workshop: How to Continue to Work with NACA to Get Your Lender to Stop Foreclosure

Thursday, January 19^th: Getting a Home Loan Via NACA: Even with Bad Credit, You Can Get a Home Loan – Here’s Proof 

Friday, January 20^th: Work with NACA: Need a Job – They Have Well-Paying Opportunities

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What Exactly Is NACA? 

Before we get to today’s topic, let’s quickly review what NACA is. As explained on their website, NACA is:

The Neighborhood Assistance Corporation of America (“NACA”) is a non-profit, community advocacy and homeownership organization. NACA’s primary goal is to build strong, healthy neighborhoods in urban and rural areas nationwide through affordable homeownership.

NACA has made the dream of homeownership a reality for thousands of working people by counseling them honestly and effectively, enabling even those with poor credit to purchase a home or refinance a predatory loan with far better terms than those provided even in the prime market. 

And boy, do they live up to what they say they are, as this week’s posts will illustrate.

Today’s Post: What to Expect When You Attend a NACA “Prevent Foreclosure” Workshop

NACA calls their workshops the “Save the Dream” tour. That’s because they go to different cities around the country giving workshops that help Americans save their homes from foreclosure. And, these are no ordinary workshops. They are in-depth, pull out the calculator sessions that last for hours.

Arrival

When you first arrive at a NACA conference, expect it to be jam packed. NACA volunteers and employees are on hand to tell you exactly where to go. 

Orientation

The first stop is orientation. Here, a NACA rep will give you an overview of what the organization is all about, how it got started and how they help homeowners stop foreclosure. The NACA reps at the workshop we attend in Atlanta had used the services of the organization to stop foreclosure themselves, so were extremely familiar with what you may be feeling when you attend.

We don’t know if this is a requirement, but all of the reps that we spoke with said that they, themselves, had faced foreclosure and NACA had helped them.

This may explain why all of the reps we interact with were so courteous and helpful. From fetching a chair for you to sit, to answering questions, it was truly striking how mannerable and kind all of the reps were.

Divided Up

Once you get through orientation, which took anywhere from 20 minutes to half an hour, then participants were divided into two groups – those who are self-employed and W2 employees. 

Then, you’re moved to another space with those in your group to hear instructions on how to fill out paperwork. This takes about 20 minutes. After this, you are asked to move a few feet away to begin filling out your paperwork. 

FYI, the reason you have to move is that new sets of people are continually flowing through.

Same-Day Home Loan Modification

NACA does SAME DAY home loan modifications. So don’t go expecting to just get a bunch of information and then leave to submit documents. If you have all of your paperwork with you (and we’ll discuss what to bring in tomorrow’s post), you can actually get a home loan modification right there on the spot if your lender is there.

And, many lenders are. At the workshop we attended, Bank of America, Washington Mutual, and a slew of other banks had reps on site who worked with homeowners and got their home loans modified that same day. During orientation, the presenter will tell you which lenders are on-site and what to do if your lender is not on site.

Even if your lender is not present, you can still get a home loan modification within about 30 days. And the best part is, all of your documents will have been submitted for you (again, if you bring everything with you to the workshop). 

Same-Day Home Loan Modification Success Stories

We saw homeowner after homeowner who successful had their home loans successfully modified that same day. One homeowner saved over $300/per month off her mortgage (going from $1,300 to $1,000); another saved over $1,500 (going from $3,700 to $2,200) – and these were just the two homeowners we were standing in front of who gave their testimonials. There were many others. 

NACA reps bring some homeowners who’ve received help up to a mic who tell their stories, eg, how/why they fell behind in their mortgage payments, how long they’d been trying to have their home loans modified, how NACA helped them, what their old payments were and what their new ones are.

It’s quite inspiring.

How Many Hours to Expect to Spend at a NACA Workshop

It’s going to be a full day. The workshop we attended ran from 8 am to 8 pm. We arrived at 7:30 a.m. and didn’t leave until 7:15 pm. So it was all day – and this is the norm because so many attend. It pays to get there early. Even though the conference wasn’t supposed to start until 8, we had a full room, so the presenter started at about 7:40.

What to Bring (Besides Paperwork) 

Patience.

A calculator: They have them there, but just in case one is not free.

Reading glasses: If you wear them; Powerpoint presentations are given.

Pen and/or pencil: They have these also, but it’s best to be prepared.

Lunch! You’re constantly waiting in a numbered procession. So, in order not to lose your place, bring food with you because unless you have someone to step out and get it for you, you’re not going to want to risk running out and being skipped over. It can literally take you many more hours to get seen if your number is called you’re not present.

And, NACA reps are strict about not letting others skip ahead. So, you’ve been warned. Be prepared to stay put. 

How Much Does It Cost

NACA’s help is 100%, absolutely free. And, they even warn you to report anyone who approaches you at any of their conferences asking for money.

What You Will Spend the Bulk of Your Time Doing at a NACA Workshop 

Besides waiting (remember, the help is FREE), you will be going through your paperwork marking up your bank statements, calculating your income and expenses to fill out NACA’s worksheets, having your paperwork scanned into NACA’s system, etc. 

The most tedious part is filling out their workshop that asks you to verify your income (if you’re self-employed). Once you get this done, you’re basically just waiting to go through the next steps, which involve having someone look at and verify your numbers, talking with a counselor who’ll enter your docs into NACA’s database, and getting in front of your actual lender (if your lender is present). 

This takes hours though.

Be sure to come back tomorrow to discover – in detail – what to bring to a NACA “stop foreclosure” workshop, as well as what you can expect from counselors regarding your financial documents.

Get Answers to Your Home Loan Modification Questions

Have a Home Loan Modification Question? Have a Question About NACA? Send it to us. We’ll get you the answers you need.

Related Posts

Home Loan Help: Documents Needed to Apply for a Mortgage Modification with HSBC (and Other Lenders)

Home Loan Modification Help: Lenders Call It “Dual Tracking”; Homeowners Call It “Double Crossing”

Stopping Foreclosure: Obama Administration to Launch 2 New Programs to Help Homeowners Avoid Foreclosure (One is for Unemployed Homeowners)

Stopping Foreclosure: Banks Considering Giving Principal Reductions, Permanent Modifications & More to Prevent Foreclosure for Many Homeowners

Mortgage Loan Modification: Top 10 Questions About (Home) Loan Modifications

Foreclosure Advice: Should You Continue to Pay Your Mortgage While You Wait for a Home Loan Modification?

Home Foreclosure News: Occupy Wall Street People Have Been Stealing Our Ideas on How to End the Home Foreclosure Crisis

Stopping Foreclosure: Loan Modification Program That Helps Struggling Homeowners

P.S.: Foreclosure Clean Up Job Leads: FYI, don’t forget to bookmark the site and come back for direct leads on foreclosure cleaning jobs, foreclosure cleaning contracts and foreclosure cleanup request for bids on jobs.

P.P.S.: Like this post? Follow Foreclosure Business News on Twitter. Copyright © 2012 Yuwanda Black for Foreclosure Business News. Article may not be reprinted or reproduced in any manner without the express, written consent of the author.

ForeclosureBusinessNews.com: “Foreclosure News the Average Joe Can Use!” Find Trusted Vendors, eg, Foreclosure Lawyers, Mortgage Consultants, Cleaning Co’s, Etc.

HSBC Home Loan Modification: A Success  Story

HSBC Bank is one of the toughest around when it comes to getting permanent home loan modifications. We discussed this in the post, Stopping Foreclosure: Another Big Bank (HSBC) Suspends Foreclosures Because of Investigation into Robosigning.  And, if you’re seeking something like a principal reduction on your home loan wih HSBC, you can practically forget it. At least, that’s the “word on the net,” so to speak.  

But, that appears to be changing. With prevent foreclosure organizations like NACA (Neighborhood Assistance Corporation of America), it appears that HSBC, a European banking giant, is starting to soften a bit.

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One homeowner wo got help from NACA reported that not only did she get a permanent home loan modification, HSBC reduced her principal balance as well, knocking over $145,000 off what she owed on her home loan and reducing her interest rate from 5.25%, which was interest-only, to a permanent 3% (for 25 years).

She wrote:

I stopped making mortgage payments in 8/09 from being unemployed and going through a divorce. I went to the Save the Dream event this year in June. . . . [In January 2012] after 5 months of constant calling and faxes.. I recieved a letter from my lender (HSBC) yesterday with an approved loan modification.

Now that’s HSBC home loan modification success!

Next week here on this blog, we will be discussing NACA in detail and how you can get the foreclosure help you need. This organization is truly one of the best — if not THE best — around when it comes to getting real help to modify your home loan, get a permanent home loan modification, get a principal reduction on your home loan, etc.

Benefits of Using NACA to Help You Stop Foreclosure

1. They’re Real: First, it’s  a real bona fide, non-profit organization that helps homeowners not only qualify for (cheap) home loans, but prevent foreclosure as well.

2. Free: All help receieved from NACA is free. Tha’t's right, 100% free. You never pay a dime and they tell you this right up front and encourage you to report anyone who asks you for money to modify your home loan.

3. Courteous: All of the home loan counselors and agents at NACA treat you with the utmost respect. They truly get that being faced with foreclosure is a traumatic enough experience and they go out of their way to encourage you that, “It’s going to be ok.”

4. For You: NACA advocates for you, the homeowner. They are not an agent of the bank, home loan servicing organizations, etc. They tell you every step of the way that they’ll help you with any problem you may have when dealing with your lender. And, if you get turned down for a home loan modification, they’ll give you Plan B, C and D. Their motto should be, “Never give up,” because they don’t let you.

5. Immediate Help: If you attend a NACA event, you can get home loan modification help THAT DAY. The one conference we attended, we saw homeowner after homeowner get their home loans modified — saving hundreds, and in some cases thousands, per month.

Home Loan Modification Success — from $3,700 per to $2,200 per Month

One guy flew in from California to a NACA workshop in Atlanta and got his payments reduced from $3,700 to $2,200 — that day. He’d been working with NACA since November 2011, but got immediate relief that day.

So the testimonials you see on the NACA’s site from homeowners who have successfully modified their home loans are not fabricated; they’re real — we’ve witnessed them firsthand.

There Is REAL Home Loan Help Available: Never Give Up

The bottom line is, don’t give up your home. There is real hope if you need your home loan modified. NACA can help, and next week right here on this blog, we’ll discuss exactly how. We went to a NACA workshop, spoke with counselors and home loan servicing agents, and will reveal all the inside info you need to successfully get your home loan modified with NACA’s help.

Stay tuned!

Get Answers to Your Home Loan Modification Questions

Have a Home Loan Modification Question? Have a Question About NACA? Send it to us. We’ll get you the answers you need.

Related Posts

Home Loan Help: Documents Needed to Apply for a Mortgage Modification with HSBC (and Other Lenders)

Stopping Foreclosure: Banks Considering Giving Principal Reductions, Permanent Modifications & More to Prevent Foreclosure for Many Homeowners

Mortgage Loan Modification: Top 10 Questions About (Home) Loan Modifications

HSBC Bank Restarts Home Foreclosure Process in New York and Other States

Foreclosure Advice: Should You Continue to Pay Your Mortgage While You Wait for a Home Loan Modification?

Stopping Foreclosure: Another Big Bank (HSBC) Suspends Foreclosures Because of Investigation into Robosigning

P.S.: Foreclosure Clean Up Job Leads: FYI, don’t forget to bookmark the site and come back for direct leads on foreclosure cleaning jobs, foreclosure cleaning contracts and foreclosure cleanup request for bids on jobs.

P.P.S.: Like this post? Follow Foreclosure Business News on Twitter. Copyright © 2012 Yuwanda Black for Foreclosure Business News. Article may not be reprinted or reproduced in any manner without the express, written consent of the author.

ForeclosureBusinessNews.com: “Foreclosure News the Average Joe Can Use!” Find Trusted Vendors, eg, Foreclosure Lawyers, Mortgage Consultants, Cleaning Co’s, Etc.

All this week, we’ve been discussing short sales – from the seller’s perspective – here on ForeclosureBusinessNews.com. In this last post of the series, we’re going to look at the tax implications of doing a short sale.

If You Do a Short Sale, You Could Owe the IRS Money 

Many homeowners don’t realize this, but when you do a short sale, the government counts the “shortfall” as income – income that you have to pay taxes on.

If you’re shaking your head going, “I still don’t understand,” it’s explained excellently in the MSN.com real estate article, Lost your home, You may owe IRS:

In many cases, the tax problem associated with a foreclosure arises from a seemingly benevolent move: The lender forgives some of the loan. This happens when a lender and a borrower negotiate a reduction in loan amount. Or when the lender forecloses on the property and sells it for less than the outstanding mortgage [ie, does a short sale].  . . .

In both instances, the difference for which the borrower is no longer responsible is considered cancellation-of-debt, or COD, income. [As taxable income] the tax on COD is calculated at ordinary rates, which range from 10% to 35% and depend upon your income. 

Who Is More Likely to Owe Taxes When Doing a Short Sale

In 2007, Congress passed the Mortgage Forgiveness Debt Act (discussed below), but that doesn’t let everyone off the hook. Following are the exceptions to the rule (Source: CNNMoney.com, Les Christie (04/08/2010):

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**Anyone who did a cash-out refinance and spent the money on something not housing related, then got in trouble and lost their home to a foreclosure or short sale, will owe the IRS as if the money from the refinance were earned income.

**The IRS will forgive tax liability only on money from home-equity loans that was spent to improve the property. 

**Anyone who lost a vacation home or investment property to foreclosure or short sale will owe Uncle Sam.

**Multi-million dollar homes — lost or sold — are always subject to tax. 

The good news is, if the above doesn’t apply to you, any IRS obligation you owe will probably be forgiven.

Why It’s Critical from a Tax Standpoint to Complete Your Short Sale Before 12/31/2012

Why is this? We explained it in post we did earlier this year about options for homeowners who are facing foreclosure, writing:

Home Foreclosure and Taxes: Important Tax Consequences of a Short Sale after December 31, 2012

For example, if you owe $200,000 on your home and you sell it for $100,000, the government will tax you on the $100,000 difference because it’s seen as a financial “windfall.” So if you’re going to do a short sale, be sure to do it BEFORE December 31, 2012. Remember, in this market, it’s taking homes months and months — some more than a year — to sell. So if this is an option you’re considering, don’t delay too long. FYI, the tax break applies only to primary residences.

Short Sales: Recourse vs No Recourse — What Is This & Why Is It Important for Sellers to Know?

An important consideration in the results of a foreclosure (or a deed in lieu of foreclosure) is whether the debt is “recourse” or “nonrecourse.” If the debt is “recourse,” the debtor is personally liable for the debt. If the debt is “nonrecourse,” the debt is only secured by the property, and the debtor is not personally liable for the balance. -Source: Tax Consequences of a “Short Sale” of Real Estate vs. Foreclosure

This is critical to understand, because short sales are taxed under the same rules as foreclosures. 

How to Ensure That You Don’t Owe Any Taxes If You Do a Short Sale

Many foreclosure / real estate attorneys advise clients to file for bankruptcy. And potential tax obligations is one reason why.

Learn more about The Mortgage Forgiveness Relief Debt Act and Debt Cancellation Law — and the tax implications of a short sale. And, see Suze Orman’s explanation on Oprah about short sales and tax implications.

If you’re unsure about the short sales taxes and how it impacts what you might owe, consult a foreclosure attorney and/or a tax lawyer – in your jurisdiction. Knowledge in this case is definitely power.

Related Posts

The Short Sale Process: How to Find a Short Sale Buyer for Your “About to Be Foreclosed On” Home

What Is the Bank Short Sale Process for Sellers?

Short Sale: Definition, Credit Implications, Tax Implications & More

Stop Foreclosure: How to Ready Your Home for a Fast (Short) Sale

2 Foreclosure Options for Homeowners with Little or No Equity in Their Homes

P.S.: Foreclosure Clean Up Job Leads: FYI, don’t forget to bookmark the site and come back for direct leads on foreclosure cleaning jobs, foreclosure cleaning contracts and foreclosure cleanup request for bids on jobs.

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Learn More about Foreclosure Cleaning Contracts and Job Leads Posted Here

City Contract for Snow Removal (Armada, MI): Vendor is responsible for snow plowing/removal from driveways, parking lots. The vendor may provide lasting services in cases of emergency as mutually agreed upon, in compliance with this bid. Snow plowing/removal shall occur when there is snowfall in excess 2 inches of snow. The Vendor is to operate before school opens in the morning. Deadline to Apply: July 12, 2011. Full details.

City Janitorial Services Contract (Commerce, CA): Responsible for cleaning (M-F) office areas, meeting rooms, general/common areas, restrooms, kitchens, lobbies, etc. in Commerce, CA district offices (first two floors). Deadline to Apply: July 11, 2011. Full details.

Snow Removal Services – Fort Saskatchewan (Alberta, CANADA): The objective of this Request for Proposal No. 2011-SR-Fort Sask-AI-P28 (the “RFP”) is to procure complete Snow and Ice Removal Services for portions of the real estate property management portfolios of SNC-Lavalin Operations & Maintenance Inc. in the Province of Alberta. Deadline to Apply: July 19, 2011. Full Details.

Snow Removal Contract (Swanton, VT):  The Office of Purchasing & Contracting is seeking to establish purchasing agreements with one or more companies that can provide BGS Snow Removal Services at the Northwest State Correctional Facility located at 3649 Lower Newton Road, Swanton, Vermont.  Contracts arising from this request for proposal will be for a period of 12 months, with an option to renew for two (2) additional 12-month periods. Proposed start date will be October 1, 2011. The estimated annual value of this contract is $17,000.00. Deadline to Apply: July 19, 2011. Full details.

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Feel Free to Pass These Foreclosure Cleaning Contracting Opportunities Along

If you/your company is not qualified, feel free send the link to this page along to others you might know who can benefit. It creates good karma — which always comes back to you.

Related Posts

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Foreclosure Cleaning Jobs: Why Landlords Are Fertile Marketing Ground for Foreclosure Cleanup Businesses

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Foreclosure Cleanup: Many Cities Allocating Gov’t Funds to Cleaning Foreclosed Properties

Foreclosure Cleanup Companies Boom: As Homebuilders Fold, Opportunity Knocks

FAQs About Cleaning Foreclosures a Living

Foreclosure Cleaning Business: Why You Should Never Discuss Rates or Prices Over the Phone

Foreclosure Cleanup Business Advice: Inside Info on Renting vs. Buying Equipment

P.S.: Bank Failures Can Mean Big Business for Foreclosure Cleaning Businesses! Learn which banks closed have closed recently. Then, learn how to use bank failures to grow your foreclosure cleaning business.

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Copyright © 2011 Yuwanda Black for Foreclosure Business News. Article may not be reprinted or reproduced in any manner without the express, written consent of the author

ForeclosureBusinessNews.com: “Foreclosure News the Average Joe Can Use!” Find Trusted Vendors, eg, Foreclosure Lawyers, Mortgage Consultants, Cleaning Co’s, Etc.

Yet another government “prevent foreclosure” program has come down the pike. It’s projected to help some 30,000 homeowners, and for many, this bridge loan could turn into a $50,000 gift.

Help Stopping Foreclosure: How Government’s New Interest-Free Loan Program Could Turn Into a $50,000 Cash Gift 

According to the MSN.com article, $1 billion in new help to flailing homeowners, the program offers:

. . .  approved homeowners  . . . one-time help to become current on overdue mortgage costs and make monthly (first lien) mortgage payments (including principal, interest, taxes, and insurance) for a maximum of two years or $50,000. No payments on the loan are due for five years if the borrower stays current on mortgage payments and meets other requirements. After that, the loan balance is reduced by 20% a year until nothing is owed.

Following are some more particulars of the program, as well as some pros and cons.

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Government Foreclosure Help: What Is the New Program?

The acronym is EHLP (couldn’t they have found a way to make it “HELP” instead?), which stands for the HUD Emergency Homeowners’ Loan Program. As described on HUD’s website, the program:

. . . is designed to provide mortgage payment relief to eligible homeowners experiencing a drop in income of at least 15% directly resulting from involuntary unemployment or underemployment due to adverse economic conditions and/or a medical emergency.

To Stop Foreclosure: Pros of This Program

(i) It Exists: Not to be too facetious, but the more programs out there to help homeowners stop foreclosure, the better;

(ii) Time to Get Back on Feet: Homeowners must demonstrate that they will be able to resume paying of their first mortgage at some time in the future. The program sets this at two years, which is more than generous when you consider that many banks only gave out six month to one-year home loan modifications.

And, this is probably why so many homeowners who received these limited-term modifications  found themselves defaulting in high numbers a year or so later.

(iii) Some “in the Middle” Can Qualify: This program is for homeowners who have a household income that doesn’t exceed 75,000, for a family of four. While this is not a lot of money, it’s significantly above what is officially considered low-income, and high enough to include many families that otherwise are in the middle who usually don’t qualify for anything.

This is actually refreshing.

Now for the Cons

(i) Limited to Certain States: Not available in all states; although, there’s a good reason for this.

The states that don’t qualify for this program have the Hardest Hit Fund, another government prevent foreclosure program that helps homeowners who live in states that have been “hardest hit” by the foreclosure crisis and the economic downturn.

(ii) Stringent Guidelines: If  you answer no to any of the qualification guidelines, it can disqualify you.

Although the need for broad guidelines is understandable (eg, you’re at least more than 90 days late on your mortgage), life is just so cut and dried. Who qualifies should be considered more on a case-by-case basis.

(iii) Leaves Small Biz Owners in the Cold: Many prevent foreclosure programs seem to leave out self-employed individuals altogether, or in limbo. For example, this program, is for those who’ve had a “significant reduction in income because of involuntary unemployment, involuntary underemployment, and/or a medical emergency?”

What if you owned a small business and you lost a lot of clients because of the economy. You’re still in business, so you’re not “unemployed.” You don’t have a medical emergency, and you own the business so there’s no “involuntary” underemployment.

(ii) Quick Deadline: The deadline to apply is July 22^nd – as in THIS July 22^nd. Program seems to have been launched with little fanfare.

Related Posts

Stopping Foreclosure: Obama Administration to Launch 2 New Programs to Help Homeowners Avoid Foreclosure (One is for Unemployed Homeowners)

Home Loan Help: Documents Needed to Apply for a Mortgage Modification with HSBC (and Other Lenders)

Florida Housing Assistance: Get 6 Months of Your Mortgage Paid Free — How? Via the State’s “Hardest-Hit” Fund

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

Free HUD Housing Counseling Program: The $88 Million Cut that Hurts Homeowners Trying to Prevent Foreclosure

Copyright © 2011 Yuwanda Black for Foreclosure Business News. Article may not be reprinted or reproduced in any manner without the express, written consent of the author.

ForeclosureBusinessNews.com: “Foreclosure News the Average Joe Can Use!”

With the foreclosure crisis raging on, many who live right next to a foreclosed property, in the vicinity of some and/or who are interested in real estate investing are wondering, “Hmmm, can I just take over this property and claim squatter’s rights?”

With this in mind, we decided to take a closer look at exactly what squatter’s rights are – and if you can indeed take over ownership of a foreclosed property in this manner.

What are Squatter’s Rights?

According to the legal site, FreeUSLaw.com, squatter’s rights (aka land squatting, property squatting) are defined as:

. . . a laymen’s term for something called adverse possession in the legal world. And, indeed, one can lose their property through adverse possession . . . Under the law of adverse possession, however, it’s not as easy as just pitching a tent on a piece of land and after a certain period of time has passed claiming that it is yours.

Through adverse possession, someone must be on the land for a period of five to fifteen years, depending on the state. During that time, the person must hold the property hostile to the owner’s rights – in other words, the person couldn’t be there under the permission of the owner. The possession must also be open and notorious, i.e. the possessor is saying to the world, “This land is mine!” The possessor must also be holding the land exclusively for him or her self, and not for someone else.

Criteria That Must be Met in Order to Claim Ownership of a Property via Squatter’s Rights

So, several criteria must be met in order to claim squatter’s rights, ie:

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Time You Must Have Squatted on the Property: 5-15 or more years, depending on your state (in some states it’s up to 25 years).

Non-permission from Owner: If the owner gave you permission, it would be like renting/house sitting, for lack of a better phrase. Hence, you must be occupying the property WITHOUT the owner’s permission. This is a very important distinction to remember because otherwise, no matter how long you’re in the property, it still wouldn’t technically be squatting. It would most likely be viewed by a court as a matter of landlord rights vs tenant’s rights.

Non-secret: While you may be thinking, how can I occupy a property “in secret” and not have the owner find out – that is exactly the point. This gives more credence to your case as a squatter if you can prove, “Hey, I didn’t hide anything. The owner could have come and kicked me out at any time. But, they didn’t lay claim to it, even though it was public knowledge that I possessed the property.”

This gives your case more merit because it helps to prove that, people would be paying people to do this and many more owners would be in danger of losing property this way.

Now that you know the criteria that needs to be met in order to gain ownership of a property via squatter’s rights, let’s look at some reasons not to even go this route

3 Reasons NOT to Squat

Legal Challenges: In reality, it’s not easy to take someone’s property away in this manner. And, even if you meet all of the criteria, you may have an uphill battle if the owner(s) decide to take legal action.

According to the MSN.com real estate article, To squat or not: Can you take over the abandoned home next door?: ,

. . . squatters who take over abandoned houses face more legal challenges in the United States than in most other countries. This is true even in so-called “front-door squats,” where occupants make little effort to conceal their presence.

Lose Money: Piggy backing on the last point, it could get expensive – quick – if you choose to fight to retain the property. And, if you’ve put money into a property, this could be another loss if you lose. And, this can be hard NOT to do because if a property has been sitting empty for months or years, it’s bound to need some repairs.

This brings us to the last reason not to squat, which is . . .

Loss of Time: A court case could drag on for months or years. Not only does this cost you in the aforementioned “money”, it costs time to.

An Easier Way than Squatting to Legally Take Ownership of Foreclosed Property

If you think a property has been abandoned – by the lender of by the owner – contact them. Offer to buy the property for pennies on the dollar.

One way to come up with what “pennies on the dollar is” is to do some research. See if the property taxes have been paid. Many times the property taxes aren’t paid on abandoned properties.

And, many owners don’t have the money (or the desire) to pay them. This means an opportunity for you to pick up a property by just paying the back taxes owed on it.

Not only is it a more sure route than taking possession via squatting, it’s quicker also.

Adverse Possession Laws for Each State

Get a state-by-state breakdown of squatting laws; specifically, how long you have to be in possession of a property before you can legally claim adverse possession.

Related Posts

Buying a Foreclosure? Here’s the Difference between a Regular Foreclosure and an REO Foreclosure

Foreclosure Auctions: Mortgage Meltdown Brings New RE Investors to the Table

Buy Foreclosed Properties at a 40% Discount: Why This Isn’t Necessarily a Good Thing

How to Lose Your Foreclosed Home at Auction and Still Receive Thousands of Dollars

Foreclosure Auctions: Turf War Ensues Between Local Municipalities and Private Foreclosure Auction Firms (Opportunity Knocks for Foreclosure Business Owners)

Home Foreclosure News: More Foreclosed Properties Expected to Hit the Market, Presenting Opportunity for Homebuyers Willing to Take Risk

Want to Buy Foreclosed Homes or Clean Foreclosed Properties? Contact a Certified Foreclosure Real Estate Agent: Here’s How & Why

Buy Foreclosures Cheap: Just What the Housing Market Needs to Get Moving Again

P.S.: Bank Failures Can Mean Big Business for Foreclosure Cleaning Business Owners! Visit this link to see which banks closed have closed recently. Then, learn how to use bank failures to grow your foreclosure cleaning business.

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

Copyright © 2011 Yuwanda Black for Foreclosure Business News. Article may not be reprinted or reproduced in any manner without the express, written consent of the author.

ForeclosureBusinessNews.com: “Foreclosure News the Average Joe Can Use!”

As Americans celebrate this Memorial Day and honor our troops, many don’t realize one of the deadliest enemies our soldiers face is right here at home. What is it? Debt – and much of it is due to predatory lending practices – not only on home loans, but for everything from cars to other types of consumer debt.

Military Families Facing Foreclosure Undermines National Security

Soldiers face a double whammy when it comes to home foreclosure and debt. Not only do they have to worry about the present, their careers are at risk also.

To explain, when a soldier is worried about bills and the roof over the heads of their loved ones back home, it can make it hard to concentrate on day-to-day duties. This can be deadly, not only for them, but for their comrades as well. This is the present threat.

The future threat is job stability. Many civilians don’t know it, but a lot of the jobs that veterans seek to advance their careers require credit checks. Not only can a soldier be denied security clearance if their credit is not good, they can be discharged and/or jailed as well. Proof?

Post continued below . . .
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The Sacramento Bee article on Military.com, The Downturn: For Many in Military, Finances are a Battlefield, states:

Under military law, service members can be discharged or even jailed for running up excessive amounts of debt. And chronic debt-to-income imbalances can jeopardize their national security clearance. . . . According to a 2007 California task force report, the number of U.S. Navy discharges due to debt increased a whopping 903 percent, from 194 in 2000 to 1,999 in 2005.

The Home Foreclosure Statistics of American Military Personnel

According to the article, Military families fight battle at home against foreclosure, while many of our soldiers risk their lives abroad, many of their families are fighting a battle of their own back home – trying to prevent foreclosure. The articles states:

More than 20,000 veterans, active-duty troops and reservists who took out special government-backed mortgages lost their homes last year [2010], the highest number since 2003.

And according to the USA Today article, 20,000 military members, vets faced foreclosure in 2010:

About 12,000 military families applied to the Pentagon’s expanded Homeowners Assistance Program. It makes up most of the difference in price for service members who must transfer and sell their homes for less than they owe, or buys their houses outright. . . . Our demand, in terms of (military) families coming to us for assistance, went up 19% in 2010 over the previous year,” says Bill Nelson, executive director of USA Cares . . .

Tips for Military Recruits on How to Avoid Foreclosure

If you’re in the service, or are thinking about going, following are some tips to help you avoid getting caught up in the home foreclosure crisis.

Delay Home Ownership: Just because you can buy a home doesn’t mean that you should. This is especially true if you’re young in your military career and/or are being moved around a lot (eg, every 2-3 years).

Don’t feel forced because of what the market is doing (eg, there are so many good deals on the market). When the time is right, the deals will still be there. Sure, they may be harder to find, but as long as you’re doing what you’re supposed to in the meantime (eg, saving, protecting your credit), you’ll be able to buy when the time is right. And, speaking of saving . . .

Get in the Habit of Saving: Learn money skills. As many of the articles linked to in this post point out, many soldiers (like most civilians) are have woefully underdeveloped money skills. So, while you have a steady paycheck and great benefits, learn how to handle money.

A big part of this is to make saving a habit. Save a percentage of everything you make. And, live within a budget; this means living below your means. If you can just do these two things, you’ll be in excellent shape to buy a home when the time is right – without fear of facing foreclosure in the future.

Save a Decent Down Payment: While you may qualify for a lower down payment with a VA loan, still save a decent down payment – at least 20 percent should be the goal. This way, you avoid having to carry private mortgage insurance (PMI), which can add hundreds per month to a mortgage payment, depending on the price of the home you eventually purchase.

Undergo Financial Counseling: If you’re returning home active duty, take advantage of the military’s “pre-separation counseling.” It offers advice on everything from financial planning to resume writing. [Source: Military.com]

Educate Yourself on Programs Available to Help You: In addition to your VA benefits, there are tons of other organizations that have programs to help vets either hold on to a home they may be in danger of losing to foreclosure and/or purchase a home.

But, you have to do some digging.

Buy Less House Than You Can Afford: When you qualify for a home loan, it doesn’t mean you HAVE to purchase a home for that amount. Many lenders expect your mortgage payment to consume no more than 30-35% of your GROSS income.

But, debt guru experts like Dave Ramsey say your mortgage (and taxes and insurance) should be no more than 25% of your NET income.

This is a big difference. For example, let’s say you gross $1,000 per week. Doing a rough calculation, a lender might say, “Oh, you qualify for a mortgage payment of $1,400 per month ($350 x 4).”

But, let’s say you net $850 per week. Using the 25 percent calculation, then your mortgage payment should be no more than $850 per month ($212.50 x 4). See the difference?

It’s always better to calculate using NET income, not gross, because Uncle Sam is going to get his cut of your paycheck, so don’t even count that money. What you should count is what’s left over after taxes are taken out. This is your NET pay. Gross doesn’t mean a hill of beans if it’s not in your bank account.

So make sure any mortgage broker you use calculates how much you qualify for based on your net income, not your gross.

Trust Your Gut: Military personnel are big targets for scammers because they know you have guaranteed income and guaranteed benefits. So, beware of scammers, ie, those who may try to get you enrolled into home loan programs or prevent foreclosure programs “just for vets that only costs a small fee.”

You don’t have to pay for any of this stuff. Never, ever trust anyone who asks you for money up front to help you stop foreclosure, get a home loan, get a mortgage modification, etc. Again, there are tons of free programs out there – through the military and through the federal government. If it doesn’t sound right or feel right in your gut – no matter how smooth talking or honest the person appears, or how good the program may sound – don’t pay any money.

Federal Regulatory Agencies to Help Stop Foreclosure

A good place to start your search if you’re trying to stop foreclosure or get a mortgage modification is the HUD website (Department of Housing and Urban Development). Here’s HUD’s prevent foreclosure program link. There’s tons of information there, and again, it’s free.

Here is a list of some other federal agencies that can help veterans prevent foreclosure.

Have Questions about Foreclosures and a VA Home Loan?

Here is a link to some commonly asked questions about foreclosure and VA home loans.

Related Posts

Foreclosure Scams: How to Avoid Being Ripped Off by “Foreclosure Rescue” Companies

How to Stop Home Foreclosure For Over 2 Years Without Making Payments: Do it Yourself for Free — Here’s How

Stopping Foreclosure: What to Do When the Bank Refuses to Accept Your Mortgage Payments & Tries to Escalate the Home Foreclosure Process

Foreclosure Lawyer: Need One? How Not to Get Ripped Off & Choose the Best One

Foreclosure Scams: 5 Things to Look for Before Using Any Company That Promises to Help You Stop Foreclosure

Stopping Foreclosure: What the “Produce the Note” Defense Is & How It Can Help You Save Your Home from Foreclosure (Or at Least Stall)

Prevent Foreclosure Advice: Was Your Home Loan Legal? Get a Forensic Loan Audit to Find Out

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

Copyright © 2011 Yuwanda Black for Foreclosure Business News. Article may not be reprinted or reproduced in any manner without the express, written consent of the author.

ForeclosureBusinessNews.com: “Foreclosure News the Average Joe Can Use!”

Thousands of people have successfully utilized the services of their local HUD-approved Housing Counseling Assistance Program.

HUD Housing Counseling: Why It’s Necessary for First-Time Homebuyers & Existing Homeowners Alike

It was originally developed to provide free advice and assistance to first-time homebuyers, retired homeowners and people on the brink of foreclosure. Local housing experts also spent a lot of time teaching students how to avoid housing scams and how much of a mortgage they could realistically afford.

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It provided families with free seminars on the home buying and loan process in Spanish, Creole and English. Some of these seminars were required for people who were trying to get down payment assistance.

Overall, the HUD counseling program offered many tangible benefits for those who didn’t think they could afford a home and those who were trying to stop foreclosure.

The $88 Million Cut that Hurts Homeowners Trying to Prevent Foreclosure (& Others)

Recently, however, HUD has cut funding for this nationwide housing counseling program – and saved $88 million – but at what cost to the American people?

Without the free HUD housing counseling provided by experts, working- and middle-class families cannot realistically afford to hire attorneys when they run into foreclosure trouble.

Lately, pre-foreclosure assistance has been the biggest draw to housing counseling assistance programs.

More Home Foreclosures on the Way Because of This Cut?

With nowhere else to turn, we are going to see more homes fall into foreclosure and more neighborhood decline. Credit repair after foreclosure was another popular reason to visit the local HUD housing counselor . . . but no longer.

Actions the “Average Joe” Can Take to Help Themselves In Spite of These Cuts

All of this means it’s time for homeowners and would-be homeowners to start educating themselves.

The only bright spot appears to be the National Foreclosure Mitigation Counseling Program, which is run through NeighborWorks America. It expects to get about $65 million for 2011. Their main purpose is to help people figure out solutions for saving their homes.

Also, President Obama has stated that he intends to bring back funding for HUD’s housing counseling programs for 2012, but it’s still not set in stone. Any type of free housing counseling assistance is going to be first on the list of budget cuts if it comes down to it.

Yet another low blow for hard-working Americans, which is why it’s up to the individual to arm themselves with the knowledge they need to either stop foreclosure or buy their first home.

Related Posts

Home Loan Modification Scams to Be Aware Of

Foreclosure Cleanup Money: HUD Ponies Up Another $1 Billion to Help Clean Up, Clear Out and Rehab Foreclosed Properties

Prevent Foreclosure Advice: Was Your Home Loan Legal? Get a Forensic Loan Audit to Find Out

Foreclosure Cleaning Contracts: Learn How to Register Your Business w/HUD & Other Gov’t Contracting Agencies

Foreclosure Cleaning: What You Should Know About HUD Pricing Guidelines

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Copyright © 2011 Yuwanda Black for Foreclosure Business News. Article may not be reprinted or reproduced in any manner without the express, written consent of the author.