Here’s the situation: A beleaguered home owner is in bankruptcy, overwhelmed by debt. The mortgage lender had begun foreclosure proceedings, but they were stayed by the bankruptcy court. That stay, however, is about to end, and the lender may be allowed to proceed. The owner owes the mortgage lender about $170,000. Another $50,000 (representing 13 cents on the dollar) is owed to unsecured creditors under the approved bankruptcy plan.
Along comes a potential purchaser of the property – a person who just happens to be a real estate broker and owner of both a finance company and a company by the name of Innovative Real Estate Strategies, LLC – who offers her this deal: “I’ll pay you $220,000 for your property – enough to pay off the mortgage and to satisfy the creditors according to the bankruptcy plan. You and I acknowledge that the property may be worth more, but, given the exigencies of the situation, that is a satisfactory amount. It is deemed to be fair and equitable, and in the interest of the seller. [Note: This is not the exact language of the agreement, but it represents the substance.] Furthermore, I, the buyer, will let you remain in the property under a one-year leaseback agreement. Not only that, I will also grant you an option for the next twelve months that allows you to repurchase the property for the amount of $260,000.”
So how does that sound? Does it look like a win-win? The owner is given a way out of her debt, is allowed to stay in the property, and even has an opportunity to purchase it back. Meanwhile, the buyer has positive cash flow for at least a year (the lease amount more than covered expenses) and, if the option isn’t exercised, may be able to turn the property for a good profit.
Well, it sounded good to the bankruptcy trustee who approved the deal, paid off all the creditors, and ultimately discharged the homeowner from her bankruptcy debts.
Unfortunately, things did not turn out so well. Within nine months the former home owner had fallen behind in her rent. She tried to exercise the option, but couldn’t qualify for a loan. When the option expired, the broker/rescuer offered her the property for $315,000. Of course, she was unable to do that. He then listed the property for $369,950; and gave her a sixty-day notice to quit.
The above provides a summary description of the facts underlying the case of Spencer v. Marshall, recently decided by the California First Appellate District Court of Appeal. The home owner was Alanna Spencer and the purchaser was Ryan Marshall.
When Marshall began an unlawful detainer action against Spencer she filed a notice of recession of the sale. Subsequently, she filed a case asking for both compensatory and punitive damages. Spencer alleged that both the form and content of the purchase agreement drawn by Marshall had failed to meet the requirements of the Home Equity Sales Contract Act (HESCA), found at California Civil Code 1695 and following.
The California Legislature enacted HESCA upon a finding that “homeowners whose residences are in foreclosure have been subjected to fraud, deception, and unfair dealing by home equity purchasers.” (An equity purchaser is an investor buyer of an owner-occupied home for which a Notice of Default has been filed.) The purpose of the act is to enable defaulting homeowners “to make an informed and intelligent decision regarding the sale of his or her home…” and “to safeguard the public against deceit and financial hardship; to insure, foster, and encourage fair dealing in the sale and purchase of homes in foreclosure;” and to “prohibit representations that tend to mislead.”
The court determined that Marshall’s purchase agreement did not conform to HESCA requirements. Indeed, the lower court opined that, insofar as their dealings (Marshall had an associate) with Spencer, “defendants were in every respect the ‘archetypal predators’ that HESCA seeks to regulate.”
Marshall’s defense, in part, was that the bankruptcy court had approved the purchase. But the bankruptcy trustee testified that her sole concern was that the payment plan would be satisfied. It was not her concern whether Spencer would be receiving a fair price or a fair deal.
The appellate court upheld the decision against Marshall and the award of $70,000 actual damages and $210,000 exemplary damages.
There is a lesson here for California investors and real estate agents. Homeowners in default are protected by laws that very specifically detail what any contract offered to them must look like. It’s a good idea to pay attention to those laws.
Rob Alley, Realtor
The Avery Group at Roy Wheeler
540-250-3275
roballey@roywheeler.com
http://www.robsellscharlottesville.com
http://www.forestlakesliving.com
http://www.theaverygroup.com
Tuesday, March 31, 2009
Foreclosure "Rescues" May Be Illegal
Here’s the situation: A beleaguered home owner is in bankruptcy, overwhelmed by debt. The mortgage lender had begun foreclosure proceedings, but they were stayed by the bankruptcy court. That stay, however, is about to end, and the lender may be allowed to proceed. The owner owes the mortgage lender about $170,000. Another $50,000 (representing 13 cents on the dollar) is owed to unsecured creditors under the approved bankruptcy plan.
Along comes a potential purchaser of the property – a person who just happens to be a real estate broker and owner of both a finance company and a company by the name of Innovative Real Estate Strategies, LLC – who offers her this deal: “I’ll pay you $220,000 for your property – enough to pay off the mortgage and to satisfy the creditors according to the bankruptcy plan. You and I acknowledge that the property may be worth more, but, given the exigencies of the situation, that is a satisfactory amount. It is deemed to be fair and equitable, and in the interest of the seller. [Note: This is not the exact language of the agreement, but it represents the substance.] Furthermore, I, the buyer, will let you remain in the property under a one-year leaseback agreement. Not only that, I will also grant you an option for the next twelve months that allows you to repurchase the property for the amount of $260,000.”
So how does that sound? Does it look like a win-win? The owner is given a way out of her debt, is allowed to stay in the property, and even has an opportunity to purchase it back. Meanwhile, the buyer has positive cash flow for at least a year (the lease amount more than covered expenses) and, if the option isn’t exercised, may be able to turn the property for a good profit.
Well, it sounded good to the bankruptcy trustee who approved the deal, paid off all the creditors, and ultimately discharged the homeowner from her bankruptcy debts.
Unfortunately, things did not turn out so well. Within nine months the former home owner had fallen behind in her rent. She tried to exercise the option, but couldn’t qualify for a loan. When the option expired, the broker/rescuer offered her the property for $315,000. Of course, she was unable to do that. He then listed the property for $369,950; and gave her a sixty-day notice to quit.
The above provides a summary description of the facts underlying the case of Spencer v. Marshall, recently decided by the California First Appellate District Court of Appeal. The home owner was Alanna Spencer and the purchaser was Ryan Marshall.
When Marshall began an unlawful detainer action against Spencer she filed a notice of recession of the sale. Subsequently, she filed a case asking for both compensatory and punitive damages. Spencer alleged that both the form and content of the purchase agreement drawn by Marshall had failed to meet the requirements of the Home Equity Sales Contract Act (HESCA), found at California Civil Code 1695 and following.
The California Legislature enacted HESCA upon a finding that “homeowners whose residences are in foreclosure have been subjected to fraud, deception, and unfair dealing by home equity purchasers.” (An equity purchaser is an investor buyer of an owner-occupied home for which a Notice of Default has been filed.) The purpose of the act is to enable defaulting homeowners “to make an informed and intelligent decision regarding the sale of his or her home…” and “to safeguard the public against deceit and financial hardship; to insure, foster, and encourage fair dealing in the sale and purchase of homes in foreclosure;” and to “prohibit representations that tend to mislead.”
The court determined that Marshall’s purchase agreement did not conform to HESCA requirements. Indeed, the lower court opined that, insofar as their dealings (Marshall had an associate) with Spencer, “defendants were in every respect the ‘archetypal predators’ that HESCA seeks to regulate.”
Marshall’s defense, in part, was that the bankruptcy court had approved the purchase. But the bankruptcy trustee testified that her sole concern was that the payment plan would be satisfied. It was not her concern whether Spencer would be receiving a fair price or a fair deal.
The appellate court upheld the decision against Marshall and the award of $70,000 actual damages and $210,000 exemplary damages.
There is a lesson here for California investors and real estate agents. Homeowners in default are protected by laws that very specifically detail what any contract offered to them must look like. It’s a good idea to pay attention to those laws.
Rob Alley, Realtor
The Avery Group at Roy Wheeler
540-250-3275
roballey@roywheeler.com
http://www.robsellscharlottesville.com
http://www.forestlakesliving.com
http://www.theaverygroup.com
Along comes a potential purchaser of the property – a person who just happens to be a real estate broker and owner of both a finance company and a company by the name of Innovative Real Estate Strategies, LLC – who offers her this deal: “I’ll pay you $220,000 for your property – enough to pay off the mortgage and to satisfy the creditors according to the bankruptcy plan. You and I acknowledge that the property may be worth more, but, given the exigencies of the situation, that is a satisfactory amount. It is deemed to be fair and equitable, and in the interest of the seller. [Note: This is not the exact language of the agreement, but it represents the substance.] Furthermore, I, the buyer, will let you remain in the property under a one-year leaseback agreement. Not only that, I will also grant you an option for the next twelve months that allows you to repurchase the property for the amount of $260,000.”
So how does that sound? Does it look like a win-win? The owner is given a way out of her debt, is allowed to stay in the property, and even has an opportunity to purchase it back. Meanwhile, the buyer has positive cash flow for at least a year (the lease amount more than covered expenses) and, if the option isn’t exercised, may be able to turn the property for a good profit.
Well, it sounded good to the bankruptcy trustee who approved the deal, paid off all the creditors, and ultimately discharged the homeowner from her bankruptcy debts.
Unfortunately, things did not turn out so well. Within nine months the former home owner had fallen behind in her rent. She tried to exercise the option, but couldn’t qualify for a loan. When the option expired, the broker/rescuer offered her the property for $315,000. Of course, she was unable to do that. He then listed the property for $369,950; and gave her a sixty-day notice to quit.
The above provides a summary description of the facts underlying the case of Spencer v. Marshall, recently decided by the California First Appellate District Court of Appeal. The home owner was Alanna Spencer and the purchaser was Ryan Marshall.
When Marshall began an unlawful detainer action against Spencer she filed a notice of recession of the sale. Subsequently, she filed a case asking for both compensatory and punitive damages. Spencer alleged that both the form and content of the purchase agreement drawn by Marshall had failed to meet the requirements of the Home Equity Sales Contract Act (HESCA), found at California Civil Code 1695 and following.
The California Legislature enacted HESCA upon a finding that “homeowners whose residences are in foreclosure have been subjected to fraud, deception, and unfair dealing by home equity purchasers.” (An equity purchaser is an investor buyer of an owner-occupied home for which a Notice of Default has been filed.) The purpose of the act is to enable defaulting homeowners “to make an informed and intelligent decision regarding the sale of his or her home…” and “to safeguard the public against deceit and financial hardship; to insure, foster, and encourage fair dealing in the sale and purchase of homes in foreclosure;” and to “prohibit representations that tend to mislead.”
The court determined that Marshall’s purchase agreement did not conform to HESCA requirements. Indeed, the lower court opined that, insofar as their dealings (Marshall had an associate) with Spencer, “defendants were in every respect the ‘archetypal predators’ that HESCA seeks to regulate.”
Marshall’s defense, in part, was that the bankruptcy court had approved the purchase. But the bankruptcy trustee testified that her sole concern was that the payment plan would be satisfied. It was not her concern whether Spencer would be receiving a fair price or a fair deal.
The appellate court upheld the decision against Marshall and the award of $70,000 actual damages and $210,000 exemplary damages.
There is a lesson here for California investors and real estate agents. Homeowners in default are protected by laws that very specifically detail what any contract offered to them must look like. It’s a good idea to pay attention to those laws.
Rob Alley, Realtor
The Avery Group at Roy Wheeler
540-250-3275
roballey@roywheeler.com
http://www.robsellscharlottesville.com
http://www.forestlakesliving.com
http://www.theaverygroup.com
Friday, March 20, 2009
Example Hardship Letter
One of the items your lender or servicer will ask for during the loan workout or loan modification process is a hardship letter. A hardship letter is a written explanation as to what “event” has caused you to fall behind on your mortgage and it vital in helping you stop foreclosure.
This letter acts much like an outline or biography of your current “life” issues that are affecting your ability to meet your financial obligations.
Please keep in mind that your are composing the hardship letter for your lender or servicer and because of the foreclosure crisis, they are extremely busy and back logged. So, with that in mind, do not write a book because most likely it will not get the attention of an over worked, $12 an hour loss mitigation employee. Keep it short and to the point. Usually 1 or at maximum 2 pages is more than enough to get your point across.
Here is an example list of hardships that lenders consider during the loan workout process:
Adjustable Rate Mortgage Reset- Payment Scock (uncommon, but we will see more lenders accept this in the future)
Illness
Loss of Job
Reduced Income
Failed Business
Job Relocation
Death of Spouse or C0-Borrower
Death
Incarceration
Divorce
Marital Separation
Military Duty
Reduced Income
Medical Bills
Damage to Property (natural disaster or unnatural)
Other (Please Specify)
Now that you understand what your lender or servicer is looking for, it’s time to sit down and write a hardship letter. I made it easy for you by giving you a couple templates below that you can use as a boiler plate for your own letter. Make sure you make it unique to your situation.
Remember that your hardship letter is only one piece of the loan workout process, but key in helping you avoid foreclosure. You will still need to jump a few hurdles with your lender before they will approve you any kind of work out plan.
Example Harship Letter:
Name: (Your Name)
Address: (Your Address)
Lender Name: (Your Lender)
Loan #: (your Loan #)
To Whom It May Concern:
I am writing this letter to explain my unfortunate set of circumstances that have caused us to become delinquent on our mortgage. We have done everything in our power to make ends meet but unfortunately we have fallen short and would like you to consider working with us to modify our loan. Our number one goal is to keep our home and we would really appreciate the opportunity to do that.
The main reason that caused us to be late is (insert reason here and don’t be too lengthy and long winded) Soon after being late and our income not being nearly enough, we had fallen further and further behind. Now, it’s to the point where we cannot afford to pay what is owed to (lender). It is our full intention to pay what we owe. But at this time we have exhausted all of our income and resources so we are turning to you for help.
(The approximate date of hardship and we believe that our situation is Temporary or will be Permanent.)
Our situation has got better because (reason here) and we feel that a loan modification would benefit us both. We would appreciate if you can work with us to lower or delinquent amount owed and or payment so we can keep our home and also afford to make amends with your firm.
We truly hope that you will consider working with us and we are anxious to get this settled so we all can move on.
Sincerely and Respectfully,
Borrower’s Signature
Date
Co-Borrower’s Signature
Date
Hardship Letter Contributed by LoanSafe.org Forum MemberSeptember 7, 2007To: Countrywide Mortgage account # 058989482
Re: Mortgage modification program
Due to the recent adjustment to the mortgage I currently have with your company, I am finding it very difficult to afford the new payment. I have a 3 year fixed rate which is now adjustable and is schedule to adjust again in Feb. 2008.
Considering my current income, there will be no way I can afford the increased payments come February. Hopefully there is way to renegotiate the terms of my current mortgage to avoid default and help stop foreclosure on my home.
Is it possible to have my current adjustable rate mortgage converted to a fixed rate? If this is not possible can the next rate change be postponed to a future date to allow me to hopefully refinance. Any other solutions you could provide would be greatly appreciated.
I have had no problem making my payments for over three years now and do not want that to change. My mortgage was originally written by another company and bought by Countrywide. The original mortgage terms are terrible but it was the only loan I was qualified for at the time. I was assured that refinancing would be no problem but that turned out not to be true due to the downturn of the housing industry.
The main problem is that my property is now worth about 5-10% less than what I paid for it which is preventing me from being able to refinance. I was researching on the internet and came across the Fannie Mae Announcement #06-18 (Oct. 4th 2006) regarding the servicing of Conventional Mortgage Modifications.
I believe this addresses the situation I currently find myself in along with many other homeowners. Attached are recent pay stubs showing my current income.
Thanks you for your time and consideration.
Rob Alley, Realtor
The Avery Group at Roy Wheeler
540-250-3275
roballey@roywheeler.com
http://www.robsellscharlottesville.com
http://www.forestlakesliving.com
http://www.theaverygroup.com
This letter acts much like an outline or biography of your current “life” issues that are affecting your ability to meet your financial obligations.
Please keep in mind that your are composing the hardship letter for your lender or servicer and because of the foreclosure crisis, they are extremely busy and back logged. So, with that in mind, do not write a book because most likely it will not get the attention of an over worked, $12 an hour loss mitigation employee. Keep it short and to the point. Usually 1 or at maximum 2 pages is more than enough to get your point across.
Here is an example list of hardships that lenders consider during the loan workout process:
Adjustable Rate Mortgage Reset- Payment Scock (uncommon, but we will see more lenders accept this in the future)
Illness
Loss of Job
Reduced Income
Failed Business
Job Relocation
Death of Spouse or C0-Borrower
Death
Incarceration
Divorce
Marital Separation
Military Duty
Reduced Income
Medical Bills
Damage to Property (natural disaster or unnatural)
Other (Please Specify)
Now that you understand what your lender or servicer is looking for, it’s time to sit down and write a hardship letter. I made it easy for you by giving you a couple templates below that you can use as a boiler plate for your own letter. Make sure you make it unique to your situation.
Remember that your hardship letter is only one piece of the loan workout process, but key in helping you avoid foreclosure. You will still need to jump a few hurdles with your lender before they will approve you any kind of work out plan.
Example Harship Letter:
Name: (Your Name)
Address: (Your Address)
Lender Name: (Your Lender)
Loan #: (your Loan #)
To Whom It May Concern:
I am writing this letter to explain my unfortunate set of circumstances that have caused us to become delinquent on our mortgage. We have done everything in our power to make ends meet but unfortunately we have fallen short and would like you to consider working with us to modify our loan. Our number one goal is to keep our home and we would really appreciate the opportunity to do that.
The main reason that caused us to be late is (insert reason here and don’t be too lengthy and long winded) Soon after being late and our income not being nearly enough, we had fallen further and further behind. Now, it’s to the point where we cannot afford to pay what is owed to (lender). It is our full intention to pay what we owe. But at this time we have exhausted all of our income and resources so we are turning to you for help.
(The approximate date of hardship and we believe that our situation is Temporary or will be Permanent.)
Our situation has got better because (reason here) and we feel that a loan modification would benefit us both. We would appreciate if you can work with us to lower or delinquent amount owed and or payment so we can keep our home and also afford to make amends with your firm.
We truly hope that you will consider working with us and we are anxious to get this settled so we all can move on.
Sincerely and Respectfully,
Borrower’s Signature
Date
Co-Borrower’s Signature
Date
Hardship Letter Contributed by LoanSafe.org Forum MemberSeptember 7, 2007To: Countrywide Mortgage account # 058989482
Re: Mortgage modification program
Due to the recent adjustment to the mortgage I currently have with your company, I am finding it very difficult to afford the new payment. I have a 3 year fixed rate which is now adjustable and is schedule to adjust again in Feb. 2008.
Considering my current income, there will be no way I can afford the increased payments come February. Hopefully there is way to renegotiate the terms of my current mortgage to avoid default and help stop foreclosure on my home.
Is it possible to have my current adjustable rate mortgage converted to a fixed rate? If this is not possible can the next rate change be postponed to a future date to allow me to hopefully refinance. Any other solutions you could provide would be greatly appreciated.
I have had no problem making my payments for over three years now and do not want that to change. My mortgage was originally written by another company and bought by Countrywide. The original mortgage terms are terrible but it was the only loan I was qualified for at the time. I was assured that refinancing would be no problem but that turned out not to be true due to the downturn of the housing industry.
The main problem is that my property is now worth about 5-10% less than what I paid for it which is preventing me from being able to refinance. I was researching on the internet and came across the Fannie Mae Announcement #06-18 (Oct. 4th 2006) regarding the servicing of Conventional Mortgage Modifications.
I believe this addresses the situation I currently find myself in along with many other homeowners. Attached are recent pay stubs showing my current income.
Thanks you for your time and consideration.
Rob Alley, Realtor
The Avery Group at Roy Wheeler
540-250-3275
roballey@roywheeler.com
http://www.robsellscharlottesville.com
http://www.forestlakesliving.com
http://www.theaverygroup.com
Example Hardship Letter
One of the items your lender or servicer will ask for during the loan workout or loan modification process is a hardship letter. A hardship letter is a written explanation as to what “event” has caused you to fall behind on your mortgage and it vital in helping you stop foreclosure.
This letter acts much like an outline or biography of your current “life” issues that are affecting your ability to meet your financial obligations.
Please keep in mind that your are composing the hardship letter for your lender or servicer and because of the foreclosure crisis, they are extremely busy and back logged. So, with that in mind, do not write a book because most likely it will not get the attention of an over worked, $12 an hour loss mitigation employee. Keep it short and to the point. Usually 1 or at maximum 2 pages is more than enough to get your point across.
Here is an example list of hardships that lenders consider during the loan workout process:
Adjustable Rate Mortgage Reset- Payment Scock (uncommon, but we will see more lenders accept this in the future)
Illness
Loss of Job
Reduced Income
Failed Business
Job Relocation
Death of Spouse or C0-Borrower
Death
Incarceration
Divorce
Marital Separation
Military Duty
Reduced Income
Medical Bills
Damage to Property (natural disaster or unnatural)
Other (Please Specify)
Now that you understand what your lender or servicer is looking for, it’s time to sit down and write a hardship letter. I made it easy for you by giving you a couple templates below that you can use as a boiler plate for your own letter. Make sure you make it unique to your situation.
Remember that your hardship letter is only one piece of the loan workout process, but key in helping you avoid foreclosure. You will still need to jump a few hurdles with your lender before they will approve you any kind of work out plan.
Example Harship Letter:
Name: (Your Name)
Address: (Your Address)
Lender Name: (Your Lender)
Loan #: (your Loan #)
To Whom It May Concern:
I am writing this letter to explain my unfortunate set of circumstances that have caused us to become delinquent on our mortgage. We have done everything in our power to make ends meet but unfortunately we have fallen short and would like you to consider working with us to modify our loan. Our number one goal is to keep our home and we would really appreciate the opportunity to do that.
The main reason that caused us to be late is (insert reason here and don’t be too lengthy and long winded) Soon after being late and our income not being nearly enough, we had fallen further and further behind. Now, it’s to the point where we cannot afford to pay what is owed to (lender). It is our full intention to pay what we owe. But at this time we have exhausted all of our income and resources so we are turning to you for help.
(The approximate date of hardship and we believe that our situation is Temporary or will be Permanent.)
Our situation has got better because (reason here) and we feel that a loan modification would benefit us both. We would appreciate if you can work with us to lower or delinquent amount owed and or payment so we can keep our home and also afford to make amends with your firm.
We truly hope that you will consider working with us and we are anxious to get this settled so we all can move on.
Sincerely and Respectfully,
Borrower’s Signature
Date
Co-Borrower’s Signature
Date
Hardship Letter Contributed by LoanSafe.org Forum MemberSeptember 7, 2007To: Countrywide Mortgage account # 058989482
Re: Mortgage modification program
Due to the recent adjustment to the mortgage I currently have with your company, I am finding it very difficult to afford the new payment. I have a 3 year fixed rate which is now adjustable and is schedule to adjust again in Feb. 2008.
Considering my current income, there will be no way I can afford the increased payments come February. Hopefully there is way to renegotiate the terms of my current mortgage to avoid default and help stop foreclosure on my home.
Is it possible to have my current adjustable rate mortgage converted to a fixed rate? If this is not possible can the next rate change be postponed to a future date to allow me to hopefully refinance. Any other solutions you could provide would be greatly appreciated.
I have had no problem making my payments for over three years now and do not want that to change. My mortgage was originally written by another company and bought by Countrywide. The original mortgage terms are terrible but it was the only loan I was qualified for at the time. I was assured that refinancing would be no problem but that turned out not to be true due to the downturn of the housing industry.
The main problem is that my property is now worth about 5-10% less than what I paid for it which is preventing me from being able to refinance. I was researching on the internet and came across the Fannie Mae Announcement #06-18 (Oct. 4th 2006) regarding the servicing of Conventional Mortgage Modifications.
I believe this addresses the situation I currently find myself in along with many other homeowners. Attached are recent pay stubs showing my current income.
Thanks you for your time and consideration.
Rob Alley, Realtor
The Avery Group at Roy Wheeler
540-250-3275
roballey@roywheeler.com
http://www.robsellscharlottesville.com
http://www.forestlakesliving.com
http://www.theaverygroup.com
This letter acts much like an outline or biography of your current “life” issues that are affecting your ability to meet your financial obligations.
Please keep in mind that your are composing the hardship letter for your lender or servicer and because of the foreclosure crisis, they are extremely busy and back logged. So, with that in mind, do not write a book because most likely it will not get the attention of an over worked, $12 an hour loss mitigation employee. Keep it short and to the point. Usually 1 or at maximum 2 pages is more than enough to get your point across.
Here is an example list of hardships that lenders consider during the loan workout process:
Adjustable Rate Mortgage Reset- Payment Scock (uncommon, but we will see more lenders accept this in the future)
Illness
Loss of Job
Reduced Income
Failed Business
Job Relocation
Death of Spouse or C0-Borrower
Death
Incarceration
Divorce
Marital Separation
Military Duty
Reduced Income
Medical Bills
Damage to Property (natural disaster or unnatural)
Other (Please Specify)
Now that you understand what your lender or servicer is looking for, it’s time to sit down and write a hardship letter. I made it easy for you by giving you a couple templates below that you can use as a boiler plate for your own letter. Make sure you make it unique to your situation.
Remember that your hardship letter is only one piece of the loan workout process, but key in helping you avoid foreclosure. You will still need to jump a few hurdles with your lender before they will approve you any kind of work out plan.
Example Harship Letter:
Name: (Your Name)
Address: (Your Address)
Lender Name: (Your Lender)
Loan #: (your Loan #)
To Whom It May Concern:
I am writing this letter to explain my unfortunate set of circumstances that have caused us to become delinquent on our mortgage. We have done everything in our power to make ends meet but unfortunately we have fallen short and would like you to consider working with us to modify our loan. Our number one goal is to keep our home and we would really appreciate the opportunity to do that.
The main reason that caused us to be late is (insert reason here and don’t be too lengthy and long winded) Soon after being late and our income not being nearly enough, we had fallen further and further behind. Now, it’s to the point where we cannot afford to pay what is owed to (lender). It is our full intention to pay what we owe. But at this time we have exhausted all of our income and resources so we are turning to you for help.
(The approximate date of hardship and we believe that our situation is Temporary or will be Permanent.)
Our situation has got better because (reason here) and we feel that a loan modification would benefit us both. We would appreciate if you can work with us to lower or delinquent amount owed and or payment so we can keep our home and also afford to make amends with your firm.
We truly hope that you will consider working with us and we are anxious to get this settled so we all can move on.
Sincerely and Respectfully,
Borrower’s Signature
Date
Co-Borrower’s Signature
Date
Hardship Letter Contributed by LoanSafe.org Forum MemberSeptember 7, 2007To: Countrywide Mortgage account # 058989482
Re: Mortgage modification program
Due to the recent adjustment to the mortgage I currently have with your company, I am finding it very difficult to afford the new payment. I have a 3 year fixed rate which is now adjustable and is schedule to adjust again in Feb. 2008.
Considering my current income, there will be no way I can afford the increased payments come February. Hopefully there is way to renegotiate the terms of my current mortgage to avoid default and help stop foreclosure on my home.
Is it possible to have my current adjustable rate mortgage converted to a fixed rate? If this is not possible can the next rate change be postponed to a future date to allow me to hopefully refinance. Any other solutions you could provide would be greatly appreciated.
I have had no problem making my payments for over three years now and do not want that to change. My mortgage was originally written by another company and bought by Countrywide. The original mortgage terms are terrible but it was the only loan I was qualified for at the time. I was assured that refinancing would be no problem but that turned out not to be true due to the downturn of the housing industry.
The main problem is that my property is now worth about 5-10% less than what I paid for it which is preventing me from being able to refinance. I was researching on the internet and came across the Fannie Mae Announcement #06-18 (Oct. 4th 2006) regarding the servicing of Conventional Mortgage Modifications.
I believe this addresses the situation I currently find myself in along with many other homeowners. Attached are recent pay stubs showing my current income.
Thanks you for your time and consideration.
Rob Alley, Realtor
The Avery Group at Roy Wheeler
540-250-3275
roballey@roywheeler.com
http://www.robsellscharlottesville.com
http://www.forestlakesliving.com
http://www.theaverygroup.com
Beware of Foreclosure Scams
Where there is money to be made, you will find the predators, salivating at a new opportunity to take people’s money and run. Welcome to the homeowner loss mitigation business where the sharks are having a feeding frenzy on already wounded homeowners who are facing foreclosure.
Homeowners need to be aware of these scams and what to look out for.
IamFacingForeclosure.com plans to expose the predators and educate homeowners about the legitimate foreclosure prevention services that are available to them through our network of legal aid attorneys, non-profits and loss mitigation professionals.
These scam artists usually locate you by when your lender files a foreclosure notice with the public trustee (aka Notice of Default), and your local community is notified through the foreclosure listings in your newspaper. Many of these companies actually prescribe to services that provide daily data of these filings or they go to the court house themselves.
H0meowner Beware: Here are some of the tricks these scammers use. Get educated and don’t become a victim!
Equity Stripping - These scams involve a lender or mortgage company (aka Hard Money Lender) that offers you an outrageous loan to “help” you avoid foreclosure. These loans are based solely on your equity and not your ability to pay. In other words, a loan made to “fail”. The moment you default on payments, they play hard ball and will foreclose on you in a heart beat. You see, that’s exactly what they want to happen and chances are heavily in their favor.
Loss Mitigation Consultant- There are many unqualified people offering to assist homeowners that are facing foreclosure. Theie attempt to be of service is actually a disservice and can seriously hurt the homeowner more than it can help. There in no licensing, regulation or policing of these consultants and “anyone” can become one and operate on their kitchen table over night.
Beware of anyone who offers to collect a fee up front to negotiate with your lender. Many are scammers and will take your money and run. Before you know it, the sheriff is knocking on your door and telling you to move out and the scammer is nowhere to be found. Make sure that if you are looking to hire a firm to represent you, that you do your due diligence and research the company before you sign any contract.
Loan Tranaction Scam- In these scams, a lender produces a refinancing loan document that claims to bring your delinquent mortgage current. This document will actually transfer the title of your home to the company’s name for part equity in your home. Usually these loans will include huge fees with big prepayment penalties, balloon or interest only payments and an adjustable rate that shoots through the roof almost immediately.
Next thing you know, this lender that was bailing you out is now taking you out and your house. Not a good loan is it?
So, be very careful and read whatever it is till you understand the document 100% and if you don’t, then hire trust worthy attoney or mortgage professional to examine the paperwork for you.
Government Foreclosure Scam Alert Links:
Department of Justice
Foreclosure Scam Articles:
Con-artists circling over homeowners in foreclosure
At the Legal Assistance Foundation of Metropolitan Chicago, the phone calls come nearly every day from yet another financially desperate homeowner who’s become the victim of a “foreclosure rescue” scam. “This has become the No. 1 problem in terms of calls we’re getting and cases we’re filing,” says Daniel Lindsey, supervising attorney for the foundation’s Home Ownership Preservation Project.
And it’s clearly a nationwide problem that’s likely to get worse. The Better Business Bureau has received complaints from every state and has issued an alert to warn consumers to be cautious about foreclosure-rescue companies.
Springboro Man Pleads Guilty to Foreclosure Scam
DAYTON — A Springboro man pleaded guilty Tuesday in U.S. District Court to mail fraud for soliciting homeowners who were in danger of losing their homes through foreclosure.
Randall L. Webb, 50, was accused of “falsely promising homeowners he could provide affordable solutions and assistance to enable the homeowners to keep their homes and not put them in a more difficult position,” said Fred Alverson, law enforcement coordinator for the U.S. Attorney Gregory G. Lockhart.
Webb faces up to 20 years in prison, although Webb will likely receive a shorter sentence. Webb also agreed to make full restitution to victims. The loss is estimated at $5,000.
‘Angels’ hit desperate homeowners with foreclosure scam
Heartless scammers who call themselves “angels” are ripping off scores of desperate homeowners facing foreclosure, a Daily News investigation shows.Instead of rescuing them from the financial abyss, they steal their savings, their homes and their dignity.
One self-declared “angel” is Maurice McDowall, who ran a string of companies in Brooklyn, Manhattan and Long Island.
Presenting a business card that reads, “Helping you keep what’s yours,” McDowall promised to save homeowners from imminent foreclosure. Instead, his companies, which bore names like “Lost & Found Recovery” and “Home Mergers,” stripped them of their deeds and the equity in their properties, The News found.
Where there is money to be made, you will find the predators, salivating at a new opportunity to take people’s money and run. Welcome to the homeowner loss mitigation business where the sharks are having a feeding frenzy on already wounded homeowners who are facing foreclosure.
Homeowners need to be aware of these scams and what to look out for.
IamFacingForeclosure.com plans to expose the predators and educate homeowners about the legitimate foreclosure prevention services that are available to them through our network of legal aid attorneys, non-profits and loss mitigation professionals.
These scam artists usually locate you by when your lender files a foreclosure notice with the public trustee (aka Notice of Default), and your local community is notified through the foreclosure listings in your newspaper. Many of these companies actually prescribe to services that provide daily data of these filings or they go to the court house themselves.
H0meowner Beware: Here are some of the tricks these scammers use. Get educated and don’t become a victim!
Equity Stripping - These scams involve a lender or mortgage company (aka Hard Money Lender) that offers you an outrageous loan to “help” you avoid foreclosure. These loans are based solely on your equity and not your ability to pay. In other words, a loan made to “fail”. The moment you default on payments, they play hard ball and will foreclose on you in a heart beat. You see, that’s exactly what they want to happen and chances are heavily in their favor.
Loss Mitigation Consultant- There are many unqualified people offering to assist homeowners that are facing foreclosure. Theie attempt to be of service is actually a disservice and can seriously hurt the homeowner more than it can help. There in no licensing, regulation or policing of these consultants and “anyone” can become one and operate on their kitchen table over night.
Beware of anyone who offers to collect a fee up front to negotiate with your lender. Many are scammers and will take your money and run. Before you know it, the sheriff is knocking on your door and telling you to move out and the scammer is nowhere to be found. Make sure that if you are looking to hire a firm to represent you, that you do your due diligence and research the company before you sign any contract.
Loan Tranaction Scam- In these scams, a lender produces a refinancing loan document that claims to bring your delinquent mortgage current. This document will actually transfer the title of your home to the company’s name for part equity in your home. Usually these loans will include huge fees with big prepayment penalties, balloon or interest only payments and an adjustable rate that shoots through the roof almost immediately.
Next thing you know, this lender that was bailing you out is now taking you out and your house. Not a good loan is it?
So, be very careful and read whatever it is till you understand the document 100% and if you don’t, then hire trust worthy attoney or mortgage professional to examine the paperwork for you.
Government Foreclosure Scam Alert Links:
Department of Justice
Foreclosure Scam Articles:
Con-artists circling over homeowners in foreclosure
At the Legal Assistance Foundation of Metropolitan Chicago, the phone calls come nearly every day from yet another financially desperate homeowner who’s become the victim of a “foreclosure rescue” scam. “This has become the No. 1 problem in terms of calls we’re getting and cases we’re filing,” says Daniel Lindsey, supervising attorney for the foundation’s Home Ownership Preservation Project.
And it’s clearly a nationwide problem that’s likely to get worse. The Better Business Bureau has received complaints from every state and has issued an alert to warn consumers to be cautious about foreclosure-rescue companies.
Springboro Man Pleads Guilty to Foreclosure Scam
DAYTON — A Springboro man pleaded guilty Tuesday in U.S. District Court to mail fraud for soliciting homeowners who were in danger of losing their homes through foreclosure.
Randall L. Webb, 50, was accused of “falsely promising homeowners he could provide affordable solutions and assistance to enable the homeowners to keep their homes and not put them in a more difficult position,” said Fred Alverson, law enforcement coordinator for the U.S. Attorney Gregory G. Lockhart.
Webb faces up to 20 years in prison, although Webb will likely receive a shorter sentence. Webb also agreed to make full restitution to victims. The loss is estimated at $5,000.
‘Angels’ hit desperate homeowners with foreclosure scam
Heartless scammers who call themselves “angels” are ripping off scores of desperate homeowners facing foreclosure, a Daily News investigation shows.Instead of rescuing them from the financial abyss, they steal their savings, their homes and their dignity.
One self-declared “angel” is Maurice McDowall, who ran a string of companies in Brooklyn, Manhattan and Long Island.
Presenting a business card that reads, “Helping you keep what’s yours,” McDowall promised to save homeowners from imminent foreclosure. Instead, his companies, which bore names like “Lost & Found Recovery” and “Home Mergers,” stripped them of their deeds and the equity in their properties, The News found.
Rob Alley, Realtor
The Avery Group at Roy Wheeler
540-250-3275
roballey@roywheeler.com
http://www.robsellscharlottesville.com
http://www.forestlakesliving.com
http://www.theaverygroup.com
Homeowners need to be aware of these scams and what to look out for.
IamFacingForeclosure.com plans to expose the predators and educate homeowners about the legitimate foreclosure prevention services that are available to them through our network of legal aid attorneys, non-profits and loss mitigation professionals.
These scam artists usually locate you by when your lender files a foreclosure notice with the public trustee (aka Notice of Default), and your local community is notified through the foreclosure listings in your newspaper. Many of these companies actually prescribe to services that provide daily data of these filings or they go to the court house themselves.
H0meowner Beware: Here are some of the tricks these scammers use. Get educated and don’t become a victim!
Equity Stripping - These scams involve a lender or mortgage company (aka Hard Money Lender) that offers you an outrageous loan to “help” you avoid foreclosure. These loans are based solely on your equity and not your ability to pay. In other words, a loan made to “fail”. The moment you default on payments, they play hard ball and will foreclose on you in a heart beat. You see, that’s exactly what they want to happen and chances are heavily in their favor.
Loss Mitigation Consultant- There are many unqualified people offering to assist homeowners that are facing foreclosure. Theie attempt to be of service is actually a disservice and can seriously hurt the homeowner more than it can help. There in no licensing, regulation or policing of these consultants and “anyone” can become one and operate on their kitchen table over night.
Beware of anyone who offers to collect a fee up front to negotiate with your lender. Many are scammers and will take your money and run. Before you know it, the sheriff is knocking on your door and telling you to move out and the scammer is nowhere to be found. Make sure that if you are looking to hire a firm to represent you, that you do your due diligence and research the company before you sign any contract.
Loan Tranaction Scam- In these scams, a lender produces a refinancing loan document that claims to bring your delinquent mortgage current. This document will actually transfer the title of your home to the company’s name for part equity in your home. Usually these loans will include huge fees with big prepayment penalties, balloon or interest only payments and an adjustable rate that shoots through the roof almost immediately.
Next thing you know, this lender that was bailing you out is now taking you out and your house. Not a good loan is it?
So, be very careful and read whatever it is till you understand the document 100% and if you don’t, then hire trust worthy attoney or mortgage professional to examine the paperwork for you.
Government Foreclosure Scam Alert Links:
Department of Justice
Foreclosure Scam Articles:
Con-artists circling over homeowners in foreclosure
At the Legal Assistance Foundation of Metropolitan Chicago, the phone calls come nearly every day from yet another financially desperate homeowner who’s become the victim of a “foreclosure rescue” scam. “This has become the No. 1 problem in terms of calls we’re getting and cases we’re filing,” says Daniel Lindsey, supervising attorney for the foundation’s Home Ownership Preservation Project.
And it’s clearly a nationwide problem that’s likely to get worse. The Better Business Bureau has received complaints from every state and has issued an alert to warn consumers to be cautious about foreclosure-rescue companies.
Springboro Man Pleads Guilty to Foreclosure Scam
DAYTON — A Springboro man pleaded guilty Tuesday in U.S. District Court to mail fraud for soliciting homeowners who were in danger of losing their homes through foreclosure.
Randall L. Webb, 50, was accused of “falsely promising homeowners he could provide affordable solutions and assistance to enable the homeowners to keep their homes and not put them in a more difficult position,” said Fred Alverson, law enforcement coordinator for the U.S. Attorney Gregory G. Lockhart.
Webb faces up to 20 years in prison, although Webb will likely receive a shorter sentence. Webb also agreed to make full restitution to victims. The loss is estimated at $5,000.
‘Angels’ hit desperate homeowners with foreclosure scam
Heartless scammers who call themselves “angels” are ripping off scores of desperate homeowners facing foreclosure, a Daily News investigation shows.Instead of rescuing them from the financial abyss, they steal their savings, their homes and their dignity.
One self-declared “angel” is Maurice McDowall, who ran a string of companies in Brooklyn, Manhattan and Long Island.
Presenting a business card that reads, “Helping you keep what’s yours,” McDowall promised to save homeowners from imminent foreclosure. Instead, his companies, which bore names like “Lost & Found Recovery” and “Home Mergers,” stripped them of their deeds and the equity in their properties, The News found.
Where there is money to be made, you will find the predators, salivating at a new opportunity to take people’s money and run. Welcome to the homeowner loss mitigation business where the sharks are having a feeding frenzy on already wounded homeowners who are facing foreclosure.
Homeowners need to be aware of these scams and what to look out for.
IamFacingForeclosure.com plans to expose the predators and educate homeowners about the legitimate foreclosure prevention services that are available to them through our network of legal aid attorneys, non-profits and loss mitigation professionals.
These scam artists usually locate you by when your lender files a foreclosure notice with the public trustee (aka Notice of Default), and your local community is notified through the foreclosure listings in your newspaper. Many of these companies actually prescribe to services that provide daily data of these filings or they go to the court house themselves.
H0meowner Beware: Here are some of the tricks these scammers use. Get educated and don’t become a victim!
Equity Stripping - These scams involve a lender or mortgage company (aka Hard Money Lender) that offers you an outrageous loan to “help” you avoid foreclosure. These loans are based solely on your equity and not your ability to pay. In other words, a loan made to “fail”. The moment you default on payments, they play hard ball and will foreclose on you in a heart beat. You see, that’s exactly what they want to happen and chances are heavily in their favor.
Loss Mitigation Consultant- There are many unqualified people offering to assist homeowners that are facing foreclosure. Theie attempt to be of service is actually a disservice and can seriously hurt the homeowner more than it can help. There in no licensing, regulation or policing of these consultants and “anyone” can become one and operate on their kitchen table over night.
Beware of anyone who offers to collect a fee up front to negotiate with your lender. Many are scammers and will take your money and run. Before you know it, the sheriff is knocking on your door and telling you to move out and the scammer is nowhere to be found. Make sure that if you are looking to hire a firm to represent you, that you do your due diligence and research the company before you sign any contract.
Loan Tranaction Scam- In these scams, a lender produces a refinancing loan document that claims to bring your delinquent mortgage current. This document will actually transfer the title of your home to the company’s name for part equity in your home. Usually these loans will include huge fees with big prepayment penalties, balloon or interest only payments and an adjustable rate that shoots through the roof almost immediately.
Next thing you know, this lender that was bailing you out is now taking you out and your house. Not a good loan is it?
So, be very careful and read whatever it is till you understand the document 100% and if you don’t, then hire trust worthy attoney or mortgage professional to examine the paperwork for you.
Government Foreclosure Scam Alert Links:
Department of Justice
Foreclosure Scam Articles:
Con-artists circling over homeowners in foreclosure
At the Legal Assistance Foundation of Metropolitan Chicago, the phone calls come nearly every day from yet another financially desperate homeowner who’s become the victim of a “foreclosure rescue” scam. “This has become the No. 1 problem in terms of calls we’re getting and cases we’re filing,” says Daniel Lindsey, supervising attorney for the foundation’s Home Ownership Preservation Project.
And it’s clearly a nationwide problem that’s likely to get worse. The Better Business Bureau has received complaints from every state and has issued an alert to warn consumers to be cautious about foreclosure-rescue companies.
Springboro Man Pleads Guilty to Foreclosure Scam
DAYTON — A Springboro man pleaded guilty Tuesday in U.S. District Court to mail fraud for soliciting homeowners who were in danger of losing their homes through foreclosure.
Randall L. Webb, 50, was accused of “falsely promising homeowners he could provide affordable solutions and assistance to enable the homeowners to keep their homes and not put them in a more difficult position,” said Fred Alverson, law enforcement coordinator for the U.S. Attorney Gregory G. Lockhart.
Webb faces up to 20 years in prison, although Webb will likely receive a shorter sentence. Webb also agreed to make full restitution to victims. The loss is estimated at $5,000.
‘Angels’ hit desperate homeowners with foreclosure scam
Heartless scammers who call themselves “angels” are ripping off scores of desperate homeowners facing foreclosure, a Daily News investigation shows.Instead of rescuing them from the financial abyss, they steal their savings, their homes and their dignity.
One self-declared “angel” is Maurice McDowall, who ran a string of companies in Brooklyn, Manhattan and Long Island.
Presenting a business card that reads, “Helping you keep what’s yours,” McDowall promised to save homeowners from imminent foreclosure. Instead, his companies, which bore names like “Lost & Found Recovery” and “Home Mergers,” stripped them of their deeds and the equity in their properties, The News found.
Rob Alley, Realtor
The Avery Group at Roy Wheeler
540-250-3275
roballey@roywheeler.com
http://www.robsellscharlottesville.com
http://www.forestlakesliving.com
http://www.theaverygroup.com
Beware of Foreclosure Scams
Where there is money to be made, you will find the predators, salivating at a new opportunity to take people’s money and run. Welcome to the homeowner loss mitigation business where the sharks are having a feeding frenzy on already wounded homeowners who are facing foreclosure.
Homeowners need to be aware of these scams and what to look out for.
IamFacingForeclosure.com plans to expose the predators and educate homeowners about the legitimate foreclosure prevention services that are available to them through our network of legal aid attorneys, non-profits and loss mitigation professionals.
These scam artists usually locate you by when your lender files a foreclosure notice with the public trustee (aka Notice of Default), and your local community is notified through the foreclosure listings in your newspaper. Many of these companies actually prescribe to services that provide daily data of these filings or they go to the court house themselves.
H0meowner Beware: Here are some of the tricks these scammers use. Get educated and don’t become a victim!
Equity Stripping - These scams involve a lender or mortgage company (aka Hard Money Lender) that offers you an outrageous loan to “help” you avoid foreclosure. These loans are based solely on your equity and not your ability to pay. In other words, a loan made to “fail”. The moment you default on payments, they play hard ball and will foreclose on you in a heart beat. You see, that’s exactly what they want to happen and chances are heavily in their favor.
Loss Mitigation Consultant- There are many unqualified people offering to assist homeowners that are facing foreclosure. Theie attempt to be of service is actually a disservice and can seriously hurt the homeowner more than it can help. There in no licensing, regulation or policing of these consultants and “anyone” can become one and operate on their kitchen table over night.
Beware of anyone who offers to collect a fee up front to negotiate with your lender. Many are scammers and will take your money and run. Before you know it, the sheriff is knocking on your door and telling you to move out and the scammer is nowhere to be found. Make sure that if you are looking to hire a firm to represent you, that you do your due diligence and research the company before you sign any contract.
Loan Tranaction Scam- In these scams, a lender produces a refinancing loan document that claims to bring your delinquent mortgage current. This document will actually transfer the title of your home to the company’s name for part equity in your home. Usually these loans will include huge fees with big prepayment penalties, balloon or interest only payments and an adjustable rate that shoots through the roof almost immediately.
Next thing you know, this lender that was bailing you out is now taking you out and your house. Not a good loan is it?
So, be very careful and read whatever it is till you understand the document 100% and if you don’t, then hire trust worthy attoney or mortgage professional to examine the paperwork for you.
Government Foreclosure Scam Alert Links:
Department of Justice
Foreclosure Scam Articles:
Con-artists circling over homeowners in foreclosure
At the Legal Assistance Foundation of Metropolitan Chicago, the phone calls come nearly every day from yet another financially desperate homeowner who’s become the victim of a “foreclosure rescue” scam. “This has become the No. 1 problem in terms of calls we’re getting and cases we’re filing,” says Daniel Lindsey, supervising attorney for the foundation’s Home Ownership Preservation Project.
And it’s clearly a nationwide problem that’s likely to get worse. The Better Business Bureau has received complaints from every state and has issued an alert to warn consumers to be cautious about foreclosure-rescue companies.
Springboro Man Pleads Guilty to Foreclosure Scam
DAYTON — A Springboro man pleaded guilty Tuesday in U.S. District Court to mail fraud for soliciting homeowners who were in danger of losing their homes through foreclosure.
Randall L. Webb, 50, was accused of “falsely promising homeowners he could provide affordable solutions and assistance to enable the homeowners to keep their homes and not put them in a more difficult position,” said Fred Alverson, law enforcement coordinator for the U.S. Attorney Gregory G. Lockhart.
Webb faces up to 20 years in prison, although Webb will likely receive a shorter sentence. Webb also agreed to make full restitution to victims. The loss is estimated at $5,000.
‘Angels’ hit desperate homeowners with foreclosure scam
Heartless scammers who call themselves “angels” are ripping off scores of desperate homeowners facing foreclosure, a Daily News investigation shows.Instead of rescuing them from the financial abyss, they steal their savings, their homes and their dignity.
One self-declared “angel” is Maurice McDowall, who ran a string of companies in Brooklyn, Manhattan and Long Island.
Presenting a business card that reads, “Helping you keep what’s yours,” McDowall promised to save homeowners from imminent foreclosure. Instead, his companies, which bore names like “Lost & Found Recovery” and “Home Mergers,” stripped them of their deeds and the equity in their properties, The News found.
Where there is money to be made, you will find the predators, salivating at a new opportunity to take people’s money and run. Welcome to the homeowner loss mitigation business where the sharks are having a feeding frenzy on already wounded homeowners who are facing foreclosure.
Homeowners need to be aware of these scams and what to look out for.
IamFacingForeclosure.com plans to expose the predators and educate homeowners about the legitimate foreclosure prevention services that are available to them through our network of legal aid attorneys, non-profits and loss mitigation professionals.
These scam artists usually locate you by when your lender files a foreclosure notice with the public trustee (aka Notice of Default), and your local community is notified through the foreclosure listings in your newspaper. Many of these companies actually prescribe to services that provide daily data of these filings or they go to the court house themselves.
H0meowner Beware: Here are some of the tricks these scammers use. Get educated and don’t become a victim!
Equity Stripping - These scams involve a lender or mortgage company (aka Hard Money Lender) that offers you an outrageous loan to “help” you avoid foreclosure. These loans are based solely on your equity and not your ability to pay. In other words, a loan made to “fail”. The moment you default on payments, they play hard ball and will foreclose on you in a heart beat. You see, that’s exactly what they want to happen and chances are heavily in their favor.
Loss Mitigation Consultant- There are many unqualified people offering to assist homeowners that are facing foreclosure. Theie attempt to be of service is actually a disservice and can seriously hurt the homeowner more than it can help. There in no licensing, regulation or policing of these consultants and “anyone” can become one and operate on their kitchen table over night.
Beware of anyone who offers to collect a fee up front to negotiate with your lender. Many are scammers and will take your money and run. Before you know it, the sheriff is knocking on your door and telling you to move out and the scammer is nowhere to be found. Make sure that if you are looking to hire a firm to represent you, that you do your due diligence and research the company before you sign any contract.
Loan Tranaction Scam- In these scams, a lender produces a refinancing loan document that claims to bring your delinquent mortgage current. This document will actually transfer the title of your home to the company’s name for part equity in your home. Usually these loans will include huge fees with big prepayment penalties, balloon or interest only payments and an adjustable rate that shoots through the roof almost immediately.
Next thing you know, this lender that was bailing you out is now taking you out and your house. Not a good loan is it?
So, be very careful and read whatever it is till you understand the document 100% and if you don’t, then hire trust worthy attoney or mortgage professional to examine the paperwork for you.
Government Foreclosure Scam Alert Links:
Department of Justice
Foreclosure Scam Articles:
Con-artists circling over homeowners in foreclosure
At the Legal Assistance Foundation of Metropolitan Chicago, the phone calls come nearly every day from yet another financially desperate homeowner who’s become the victim of a “foreclosure rescue” scam. “This has become the No. 1 problem in terms of calls we’re getting and cases we’re filing,” says Daniel Lindsey, supervising attorney for the foundation’s Home Ownership Preservation Project.
And it’s clearly a nationwide problem that’s likely to get worse. The Better Business Bureau has received complaints from every state and has issued an alert to warn consumers to be cautious about foreclosure-rescue companies.
Springboro Man Pleads Guilty to Foreclosure Scam
DAYTON — A Springboro man pleaded guilty Tuesday in U.S. District Court to mail fraud for soliciting homeowners who were in danger of losing their homes through foreclosure.
Randall L. Webb, 50, was accused of “falsely promising homeowners he could provide affordable solutions and assistance to enable the homeowners to keep their homes and not put them in a more difficult position,” said Fred Alverson, law enforcement coordinator for the U.S. Attorney Gregory G. Lockhart.
Webb faces up to 20 years in prison, although Webb will likely receive a shorter sentence. Webb also agreed to make full restitution to victims. The loss is estimated at $5,000.
‘Angels’ hit desperate homeowners with foreclosure scam
Heartless scammers who call themselves “angels” are ripping off scores of desperate homeowners facing foreclosure, a Daily News investigation shows.Instead of rescuing them from the financial abyss, they steal their savings, their homes and their dignity.
One self-declared “angel” is Maurice McDowall, who ran a string of companies in Brooklyn, Manhattan and Long Island.
Presenting a business card that reads, “Helping you keep what’s yours,” McDowall promised to save homeowners from imminent foreclosure. Instead, his companies, which bore names like “Lost & Found Recovery” and “Home Mergers,” stripped them of their deeds and the equity in their properties, The News found.
Rob Alley, Realtor
The Avery Group at Roy Wheeler
540-250-3275
roballey@roywheeler.com
http://www.robsellscharlottesville.com
http://www.forestlakesliving.com
http://www.theaverygroup.com
Homeowners need to be aware of these scams and what to look out for.
IamFacingForeclosure.com plans to expose the predators and educate homeowners about the legitimate foreclosure prevention services that are available to them through our network of legal aid attorneys, non-profits and loss mitigation professionals.
These scam artists usually locate you by when your lender files a foreclosure notice with the public trustee (aka Notice of Default), and your local community is notified through the foreclosure listings in your newspaper. Many of these companies actually prescribe to services that provide daily data of these filings or they go to the court house themselves.
H0meowner Beware: Here are some of the tricks these scammers use. Get educated and don’t become a victim!
Equity Stripping - These scams involve a lender or mortgage company (aka Hard Money Lender) that offers you an outrageous loan to “help” you avoid foreclosure. These loans are based solely on your equity and not your ability to pay. In other words, a loan made to “fail”. The moment you default on payments, they play hard ball and will foreclose on you in a heart beat. You see, that’s exactly what they want to happen and chances are heavily in their favor.
Loss Mitigation Consultant- There are many unqualified people offering to assist homeowners that are facing foreclosure. Theie attempt to be of service is actually a disservice and can seriously hurt the homeowner more than it can help. There in no licensing, regulation or policing of these consultants and “anyone” can become one and operate on their kitchen table over night.
Beware of anyone who offers to collect a fee up front to negotiate with your lender. Many are scammers and will take your money and run. Before you know it, the sheriff is knocking on your door and telling you to move out and the scammer is nowhere to be found. Make sure that if you are looking to hire a firm to represent you, that you do your due diligence and research the company before you sign any contract.
Loan Tranaction Scam- In these scams, a lender produces a refinancing loan document that claims to bring your delinquent mortgage current. This document will actually transfer the title of your home to the company’s name for part equity in your home. Usually these loans will include huge fees with big prepayment penalties, balloon or interest only payments and an adjustable rate that shoots through the roof almost immediately.
Next thing you know, this lender that was bailing you out is now taking you out and your house. Not a good loan is it?
So, be very careful and read whatever it is till you understand the document 100% and if you don’t, then hire trust worthy attoney or mortgage professional to examine the paperwork for you.
Government Foreclosure Scam Alert Links:
Department of Justice
Foreclosure Scam Articles:
Con-artists circling over homeowners in foreclosure
At the Legal Assistance Foundation of Metropolitan Chicago, the phone calls come nearly every day from yet another financially desperate homeowner who’s become the victim of a “foreclosure rescue” scam. “This has become the No. 1 problem in terms of calls we’re getting and cases we’re filing,” says Daniel Lindsey, supervising attorney for the foundation’s Home Ownership Preservation Project.
And it’s clearly a nationwide problem that’s likely to get worse. The Better Business Bureau has received complaints from every state and has issued an alert to warn consumers to be cautious about foreclosure-rescue companies.
Springboro Man Pleads Guilty to Foreclosure Scam
DAYTON — A Springboro man pleaded guilty Tuesday in U.S. District Court to mail fraud for soliciting homeowners who were in danger of losing their homes through foreclosure.
Randall L. Webb, 50, was accused of “falsely promising homeowners he could provide affordable solutions and assistance to enable the homeowners to keep their homes and not put them in a more difficult position,” said Fred Alverson, law enforcement coordinator for the U.S. Attorney Gregory G. Lockhart.
Webb faces up to 20 years in prison, although Webb will likely receive a shorter sentence. Webb also agreed to make full restitution to victims. The loss is estimated at $5,000.
‘Angels’ hit desperate homeowners with foreclosure scam
Heartless scammers who call themselves “angels” are ripping off scores of desperate homeowners facing foreclosure, a Daily News investigation shows.Instead of rescuing them from the financial abyss, they steal their savings, their homes and their dignity.
One self-declared “angel” is Maurice McDowall, who ran a string of companies in Brooklyn, Manhattan and Long Island.
Presenting a business card that reads, “Helping you keep what’s yours,” McDowall promised to save homeowners from imminent foreclosure. Instead, his companies, which bore names like “Lost & Found Recovery” and “Home Mergers,” stripped them of their deeds and the equity in their properties, The News found.
Where there is money to be made, you will find the predators, salivating at a new opportunity to take people’s money and run. Welcome to the homeowner loss mitigation business where the sharks are having a feeding frenzy on already wounded homeowners who are facing foreclosure.
Homeowners need to be aware of these scams and what to look out for.
IamFacingForeclosure.com plans to expose the predators and educate homeowners about the legitimate foreclosure prevention services that are available to them through our network of legal aid attorneys, non-profits and loss mitigation professionals.
These scam artists usually locate you by when your lender files a foreclosure notice with the public trustee (aka Notice of Default), and your local community is notified through the foreclosure listings in your newspaper. Many of these companies actually prescribe to services that provide daily data of these filings or they go to the court house themselves.
H0meowner Beware: Here are some of the tricks these scammers use. Get educated and don’t become a victim!
Equity Stripping - These scams involve a lender or mortgage company (aka Hard Money Lender) that offers you an outrageous loan to “help” you avoid foreclosure. These loans are based solely on your equity and not your ability to pay. In other words, a loan made to “fail”. The moment you default on payments, they play hard ball and will foreclose on you in a heart beat. You see, that’s exactly what they want to happen and chances are heavily in their favor.
Loss Mitigation Consultant- There are many unqualified people offering to assist homeowners that are facing foreclosure. Theie attempt to be of service is actually a disservice and can seriously hurt the homeowner more than it can help. There in no licensing, regulation or policing of these consultants and “anyone” can become one and operate on their kitchen table over night.
Beware of anyone who offers to collect a fee up front to negotiate with your lender. Many are scammers and will take your money and run. Before you know it, the sheriff is knocking on your door and telling you to move out and the scammer is nowhere to be found. Make sure that if you are looking to hire a firm to represent you, that you do your due diligence and research the company before you sign any contract.
Loan Tranaction Scam- In these scams, a lender produces a refinancing loan document that claims to bring your delinquent mortgage current. This document will actually transfer the title of your home to the company’s name for part equity in your home. Usually these loans will include huge fees with big prepayment penalties, balloon or interest only payments and an adjustable rate that shoots through the roof almost immediately.
Next thing you know, this lender that was bailing you out is now taking you out and your house. Not a good loan is it?
So, be very careful and read whatever it is till you understand the document 100% and if you don’t, then hire trust worthy attoney or mortgage professional to examine the paperwork for you.
Government Foreclosure Scam Alert Links:
Department of Justice
Foreclosure Scam Articles:
Con-artists circling over homeowners in foreclosure
At the Legal Assistance Foundation of Metropolitan Chicago, the phone calls come nearly every day from yet another financially desperate homeowner who’s become the victim of a “foreclosure rescue” scam. “This has become the No. 1 problem in terms of calls we’re getting and cases we’re filing,” says Daniel Lindsey, supervising attorney for the foundation’s Home Ownership Preservation Project.
And it’s clearly a nationwide problem that’s likely to get worse. The Better Business Bureau has received complaints from every state and has issued an alert to warn consumers to be cautious about foreclosure-rescue companies.
Springboro Man Pleads Guilty to Foreclosure Scam
DAYTON — A Springboro man pleaded guilty Tuesday in U.S. District Court to mail fraud for soliciting homeowners who were in danger of losing their homes through foreclosure.
Randall L. Webb, 50, was accused of “falsely promising homeowners he could provide affordable solutions and assistance to enable the homeowners to keep their homes and not put them in a more difficult position,” said Fred Alverson, law enforcement coordinator for the U.S. Attorney Gregory G. Lockhart.
Webb faces up to 20 years in prison, although Webb will likely receive a shorter sentence. Webb also agreed to make full restitution to victims. The loss is estimated at $5,000.
‘Angels’ hit desperate homeowners with foreclosure scam
Heartless scammers who call themselves “angels” are ripping off scores of desperate homeowners facing foreclosure, a Daily News investigation shows.Instead of rescuing them from the financial abyss, they steal their savings, their homes and their dignity.
One self-declared “angel” is Maurice McDowall, who ran a string of companies in Brooklyn, Manhattan and Long Island.
Presenting a business card that reads, “Helping you keep what’s yours,” McDowall promised to save homeowners from imminent foreclosure. Instead, his companies, which bore names like “Lost & Found Recovery” and “Home Mergers,” stripped them of their deeds and the equity in their properties, The News found.
Rob Alley, Realtor
The Avery Group at Roy Wheeler
540-250-3275
roballey@roywheeler.com
http://www.robsellscharlottesville.com
http://www.forestlakesliving.com
http://www.theaverygroup.com
Wednesday, March 18, 2009
Short Sale Hardship Letter Example
Short Sale Hardship Letter Example
Lender Name
Lender Address
Today’s Date
Re: Hardship Letter/Short Sale for 123 Main Street, City, State 12345
To Whom It May Concern:
I purchased the property at 123 Main Street in March 2006. At that time, I had just
started my own antique resale business, which had great promise for generating profits
capable of supporting my mortgage. Unfortunately, sales were slow, which I attribute to
great declines in tourism after gas prices skyrocketed. I ran out of money, and began
working as a waiter to make ends meet. At the same time I was redoubling my efforts in
my own business, but to no avail. After struggling for months to make my expensive
mortgage payments, I had no choice but to put my house on the market. In August of
2006, I put my home up for sale by owner at an original listing price of $210,000. The
only people to look at the house ran when they saw the extensive damage to the pool and
the severe water damage from a leaking roof that had long needed a replacement. I
lowered the price, but still had no takers. Over the next couple of months I lowered the
home price three times, finally settling at $170,000. This price was the lowest I could list
the house at and still afford real estate agent commissions to be deducted, although it
leaves me with no profit. The home still has no offers. I am working with a real estate
agent now, who is listing my house and promises to push it to get it sold quickly. I believe
that using an actual agent will ensure that the home sells promptly.
I love my home, but I also understand that, at this point, I cannot afford it. I am a single
parent, now working as a waiter to survive. My financial situation cannot sustain a home
mortgage of nearly $2,000 per month. I would like nothing more than to sell my home,
avoid foreclosure, and salvage my credit. This is my main concern. I know that a
foreclosure on my record will affect me for years to come. I would ask that you please
assist me in avoiding this.
Please accept this offer as payment in full. My attorney has advised me to file
bankruptcy, but I prefer to avoid further destruction of my credit. I just want to move on
and start over.
I deeply appreciate your help and understanding in this matter. If you have any
questions, or need anything further from me, please contact me personally.
Kindest regards,
Home Owner Name
Rob Alley, Realtor
The Avery Group at Roy Wheeler
540-250-3275
roballey@roywheeler.com
http://www.robsellscharlottesville.com
http://www.forestlakesliving.com
http://www.theaverygroup.com
Lender Name
Lender Address
Today’s Date
Re: Hardship Letter/Short Sale for 123 Main Street, City, State 12345
To Whom It May Concern:
I purchased the property at 123 Main Street in March 2006. At that time, I had just
started my own antique resale business, which had great promise for generating profits
capable of supporting my mortgage. Unfortunately, sales were slow, which I attribute to
great declines in tourism after gas prices skyrocketed. I ran out of money, and began
working as a waiter to make ends meet. At the same time I was redoubling my efforts in
my own business, but to no avail. After struggling for months to make my expensive
mortgage payments, I had no choice but to put my house on the market. In August of
2006, I put my home up for sale by owner at an original listing price of $210,000. The
only people to look at the house ran when they saw the extensive damage to the pool and
the severe water damage from a leaking roof that had long needed a replacement. I
lowered the price, but still had no takers. Over the next couple of months I lowered the
home price three times, finally settling at $170,000. This price was the lowest I could list
the house at and still afford real estate agent commissions to be deducted, although it
leaves me with no profit. The home still has no offers. I am working with a real estate
agent now, who is listing my house and promises to push it to get it sold quickly. I believe
that using an actual agent will ensure that the home sells promptly.
I love my home, but I also understand that, at this point, I cannot afford it. I am a single
parent, now working as a waiter to survive. My financial situation cannot sustain a home
mortgage of nearly $2,000 per month. I would like nothing more than to sell my home,
avoid foreclosure, and salvage my credit. This is my main concern. I know that a
foreclosure on my record will affect me for years to come. I would ask that you please
assist me in avoiding this.
Please accept this offer as payment in full. My attorney has advised me to file
bankruptcy, but I prefer to avoid further destruction of my credit. I just want to move on
and start over.
I deeply appreciate your help and understanding in this matter. If you have any
questions, or need anything further from me, please contact me personally.
Kindest regards,
Home Owner Name
Rob Alley, Realtor
The Avery Group at Roy Wheeler
540-250-3275
roballey@roywheeler.com
http://www.robsellscharlottesville.com
http://www.forestlakesliving.com
http://www.theaverygroup.com
Short Sale Hardship Letter Example
Short Sale Hardship Letter Example
Lender Name
Lender Address
Today’s Date
Re: Hardship Letter/Short Sale for 123 Main Street, City, State 12345
To Whom It May Concern:
I purchased the property at 123 Main Street in March 2006. At that time, I had just
started my own antique resale business, which had great promise for generating profits
capable of supporting my mortgage. Unfortunately, sales were slow, which I attribute to
great declines in tourism after gas prices skyrocketed. I ran out of money, and began
working as a waiter to make ends meet. At the same time I was redoubling my efforts in
my own business, but to no avail. After struggling for months to make my expensive
mortgage payments, I had no choice but to put my house on the market. In August of
2006, I put my home up for sale by owner at an original listing price of $210,000. The
only people to look at the house ran when they saw the extensive damage to the pool and
the severe water damage from a leaking roof that had long needed a replacement. I
lowered the price, but still had no takers. Over the next couple of months I lowered the
home price three times, finally settling at $170,000. This price was the lowest I could list
the house at and still afford real estate agent commissions to be deducted, although it
leaves me with no profit. The home still has no offers. I am working with a real estate
agent now, who is listing my house and promises to push it to get it sold quickly. I believe
that using an actual agent will ensure that the home sells promptly.
I love my home, but I also understand that, at this point, I cannot afford it. I am a single
parent, now working as a waiter to survive. My financial situation cannot sustain a home
mortgage of nearly $2,000 per month. I would like nothing more than to sell my home,
avoid foreclosure, and salvage my credit. This is my main concern. I know that a
foreclosure on my record will affect me for years to come. I would ask that you please
assist me in avoiding this.
Please accept this offer as payment in full. My attorney has advised me to file
bankruptcy, but I prefer to avoid further destruction of my credit. I just want to move on
and start over.
I deeply appreciate your help and understanding in this matter. If you have any
questions, or need anything further from me, please contact me personally.
Kindest regards,
Home Owner Name
Rob Alley, Realtor
The Avery Group at Roy Wheeler
540-250-3275
roballey@roywheeler.com
http://www.robsellscharlottesville.com
http://www.forestlakesliving.com
http://www.theaverygroup.com
Lender Name
Lender Address
Today’s Date
Re: Hardship Letter/Short Sale for 123 Main Street, City, State 12345
To Whom It May Concern:
I purchased the property at 123 Main Street in March 2006. At that time, I had just
started my own antique resale business, which had great promise for generating profits
capable of supporting my mortgage. Unfortunately, sales were slow, which I attribute to
great declines in tourism after gas prices skyrocketed. I ran out of money, and began
working as a waiter to make ends meet. At the same time I was redoubling my efforts in
my own business, but to no avail. After struggling for months to make my expensive
mortgage payments, I had no choice but to put my house on the market. In August of
2006, I put my home up for sale by owner at an original listing price of $210,000. The
only people to look at the house ran when they saw the extensive damage to the pool and
the severe water damage from a leaking roof that had long needed a replacement. I
lowered the price, but still had no takers. Over the next couple of months I lowered the
home price three times, finally settling at $170,000. This price was the lowest I could list
the house at and still afford real estate agent commissions to be deducted, although it
leaves me with no profit. The home still has no offers. I am working with a real estate
agent now, who is listing my house and promises to push it to get it sold quickly. I believe
that using an actual agent will ensure that the home sells promptly.
I love my home, but I also understand that, at this point, I cannot afford it. I am a single
parent, now working as a waiter to survive. My financial situation cannot sustain a home
mortgage of nearly $2,000 per month. I would like nothing more than to sell my home,
avoid foreclosure, and salvage my credit. This is my main concern. I know that a
foreclosure on my record will affect me for years to come. I would ask that you please
assist me in avoiding this.
Please accept this offer as payment in full. My attorney has advised me to file
bankruptcy, but I prefer to avoid further destruction of my credit. I just want to move on
and start over.
I deeply appreciate your help and understanding in this matter. If you have any
questions, or need anything further from me, please contact me personally.
Kindest regards,
Home Owner Name
Rob Alley, Realtor
The Avery Group at Roy Wheeler
540-250-3275
roballey@roywheeler.com
http://www.robsellscharlottesville.com
http://www.forestlakesliving.com
http://www.theaverygroup.com
Tuesday, March 17, 2009
HUD AWARDS $648,612 TO THE VIRGINIA PHAs
HUD AWARDS $648,612 TO THE VIRGINIA PHAs TO BRING JOBS, ECONOMIC INDEPENDENCE TO PUBLIC HOUSING RESIDENTS IN VIRGINIA
WASHINGTON - The U.S. Department of Housing and Urban Development today awarded $648,612 to ten Virginia public housing agencies that will be used to help public housing residents in ten cities to find jobs that lead them toward economic independence. This funding was part of nearly $12 million awarded to 207 public housing agencies across the U.S.
The grants are provided through HUD's Public Housing Family Self-Sufficiency Program, which enables public housing agencies (PHA) to hire program coordinators who work directly with residents to connect them with local education and training opportunities; job placement organizations and local employers. The purpose of the program is to encourage local innovative strategies that link public housing assistance with public and private resources to enable participating families to increase earned income; reduce or eliminate the need for welfare assistance; and make progress toward achieving economic independence and housing self-sufficiency.
"As America prepares to meet the growing challenges brought on by rising unemployment, it helps to have a helping hand guide individuals to training and job opportunities in their community," said HUD Richmond Field Office Director Bill Miles. "These grants will help public housing residents find employment or assist others who want to increase their earning power."
The competitive grants awarded in Virginia are as follows:
Bristol Redevelopment and Housing Authority
$39,441
Chesapeake Redevelopment & Housing Authority
$47,448
Danville Redevelopment and Housing Authority
$45,894
Fairfax County Redevelopment and Housing Authority
$68,000
Newport News Redevelopment and Housing Authority
$46,000
Norfolk Redevelopment and Housing Authority
$134,930
Portsmouth Redevelopment & Housing Authority
$52,164
Richmond Redevelopment & Housing Authority
$65,500
Roanoke Redevelopment and Housing Authority
$107,435
Waynesboro Redevelopment and Housing Authority
$41,800
Public housing residents sign a contract to participate, which outlines their responsibilities towards completion of training and employment objectives up to a five-year period. For each participating family that is a welfare recipient, the PHA must establish an interim goal that the participating family be independent from welfare assistance prior to the expiration of the contract. During the period of participation, residents may earn an escrow credit based on increased earned income, which they may use in a variety of ways, including continuing their education or down payment toward a home purchase. A HUD study showed low-income families who participated in a similar HUD family self-sufficiency program saw their incomes increase at a higher rate than non-participants.
Rob Alley, Realtor
The Avery Group at Roy Wheeler
540-250-3275
roballey@roywheeler.com
http://www.robsellscharlottesville.com
http://www.forestlakesliving.com
http://www.theaverygroup.com
WASHINGTON - The U.S. Department of Housing and Urban Development today awarded $648,612 to ten Virginia public housing agencies that will be used to help public housing residents in ten cities to find jobs that lead them toward economic independence. This funding was part of nearly $12 million awarded to 207 public housing agencies across the U.S.
The grants are provided through HUD's Public Housing Family Self-Sufficiency Program, which enables public housing agencies (PHA) to hire program coordinators who work directly with residents to connect them with local education and training opportunities; job placement organizations and local employers. The purpose of the program is to encourage local innovative strategies that link public housing assistance with public and private resources to enable participating families to increase earned income; reduce or eliminate the need for welfare assistance; and make progress toward achieving economic independence and housing self-sufficiency.
"As America prepares to meet the growing challenges brought on by rising unemployment, it helps to have a helping hand guide individuals to training and job opportunities in their community," said HUD Richmond Field Office Director Bill Miles. "These grants will help public housing residents find employment or assist others who want to increase their earning power."
The competitive grants awarded in Virginia are as follows:
Bristol Redevelopment and Housing Authority
$39,441
Chesapeake Redevelopment & Housing Authority
$47,448
Danville Redevelopment and Housing Authority
$45,894
Fairfax County Redevelopment and Housing Authority
$68,000
Newport News Redevelopment and Housing Authority
$46,000
Norfolk Redevelopment and Housing Authority
$134,930
Portsmouth Redevelopment & Housing Authority
$52,164
Richmond Redevelopment & Housing Authority
$65,500
Roanoke Redevelopment and Housing Authority
$107,435
Waynesboro Redevelopment and Housing Authority
$41,800
Public housing residents sign a contract to participate, which outlines their responsibilities towards completion of training and employment objectives up to a five-year period. For each participating family that is a welfare recipient, the PHA must establish an interim goal that the participating family be independent from welfare assistance prior to the expiration of the contract. During the period of participation, residents may earn an escrow credit based on increased earned income, which they may use in a variety of ways, including continuing their education or down payment toward a home purchase. A HUD study showed low-income families who participated in a similar HUD family self-sufficiency program saw their incomes increase at a higher rate than non-participants.
Rob Alley, Realtor
The Avery Group at Roy Wheeler
540-250-3275
roballey@roywheeler.com
http://www.robsellscharlottesville.com
http://www.forestlakesliving.com
http://www.theaverygroup.com
HUD AWARDS $648,612 TO THE VIRGINIA PHAs
HUD AWARDS $648,612 TO THE VIRGINIA PHAs TO BRING JOBS, ECONOMIC INDEPENDENCE TO PUBLIC HOUSING RESIDENTS IN VIRGINIA
WASHINGTON - The U.S. Department of Housing and Urban Development today awarded $648,612 to ten Virginia public housing agencies that will be used to help public housing residents in ten cities to find jobs that lead them toward economic independence. This funding was part of nearly $12 million awarded to 207 public housing agencies across the U.S.
The grants are provided through HUD's Public Housing Family Self-Sufficiency Program, which enables public housing agencies (PHA) to hire program coordinators who work directly with residents to connect them with local education and training opportunities; job placement organizations and local employers. The purpose of the program is to encourage local innovative strategies that link public housing assistance with public and private resources to enable participating families to increase earned income; reduce or eliminate the need for welfare assistance; and make progress toward achieving economic independence and housing self-sufficiency.
"As America prepares to meet the growing challenges brought on by rising unemployment, it helps to have a helping hand guide individuals to training and job opportunities in their community," said HUD Richmond Field Office Director Bill Miles. "These grants will help public housing residents find employment or assist others who want to increase their earning power."
The competitive grants awarded in Virginia are as follows:
Bristol Redevelopment and Housing Authority
$39,441
Chesapeake Redevelopment & Housing Authority
$47,448
Danville Redevelopment and Housing Authority
$45,894
Fairfax County Redevelopment and Housing Authority
$68,000
Newport News Redevelopment and Housing Authority
$46,000
Norfolk Redevelopment and Housing Authority
$134,930
Portsmouth Redevelopment & Housing Authority
$52,164
Richmond Redevelopment & Housing Authority
$65,500
Roanoke Redevelopment and Housing Authority
$107,435
Waynesboro Redevelopment and Housing Authority
$41,800
Public housing residents sign a contract to participate, which outlines their responsibilities towards completion of training and employment objectives up to a five-year period. For each participating family that is a welfare recipient, the PHA must establish an interim goal that the participating family be independent from welfare assistance prior to the expiration of the contract. During the period of participation, residents may earn an escrow credit based on increased earned income, which they may use in a variety of ways, including continuing their education or down payment toward a home purchase. A HUD study showed low-income families who participated in a similar HUD family self-sufficiency program saw their incomes increase at a higher rate than non-participants.
Rob Alley, Realtor
The Avery Group at Roy Wheeler
540-250-3275
roballey@roywheeler.com
http://www.robsellscharlottesville.com
http://www.forestlakesliving.com
http://www.theaverygroup.com
WASHINGTON - The U.S. Department of Housing and Urban Development today awarded $648,612 to ten Virginia public housing agencies that will be used to help public housing residents in ten cities to find jobs that lead them toward economic independence. This funding was part of nearly $12 million awarded to 207 public housing agencies across the U.S.
The grants are provided through HUD's Public Housing Family Self-Sufficiency Program, which enables public housing agencies (PHA) to hire program coordinators who work directly with residents to connect them with local education and training opportunities; job placement organizations and local employers. The purpose of the program is to encourage local innovative strategies that link public housing assistance with public and private resources to enable participating families to increase earned income; reduce or eliminate the need for welfare assistance; and make progress toward achieving economic independence and housing self-sufficiency.
"As America prepares to meet the growing challenges brought on by rising unemployment, it helps to have a helping hand guide individuals to training and job opportunities in their community," said HUD Richmond Field Office Director Bill Miles. "These grants will help public housing residents find employment or assist others who want to increase their earning power."
The competitive grants awarded in Virginia are as follows:
Bristol Redevelopment and Housing Authority
$39,441
Chesapeake Redevelopment & Housing Authority
$47,448
Danville Redevelopment and Housing Authority
$45,894
Fairfax County Redevelopment and Housing Authority
$68,000
Newport News Redevelopment and Housing Authority
$46,000
Norfolk Redevelopment and Housing Authority
$134,930
Portsmouth Redevelopment & Housing Authority
$52,164
Richmond Redevelopment & Housing Authority
$65,500
Roanoke Redevelopment and Housing Authority
$107,435
Waynesboro Redevelopment and Housing Authority
$41,800
Public housing residents sign a contract to participate, which outlines their responsibilities towards completion of training and employment objectives up to a five-year period. For each participating family that is a welfare recipient, the PHA must establish an interim goal that the participating family be independent from welfare assistance prior to the expiration of the contract. During the period of participation, residents may earn an escrow credit based on increased earned income, which they may use in a variety of ways, including continuing their education or down payment toward a home purchase. A HUD study showed low-income families who participated in a similar HUD family self-sufficiency program saw their incomes increase at a higher rate than non-participants.
Rob Alley, Realtor
The Avery Group at Roy Wheeler
540-250-3275
roballey@roywheeler.com
http://www.robsellscharlottesville.com
http://www.forestlakesliving.com
http://www.theaverygroup.com
Obama Grants Money To Home Programs in Virginia
OBAMA ADMINISTRATION AWARDS $22.6 MILLION IN HOMELESS GRANTS TO 133 LOCAL HOUSING AND SERVICE PROGRAMS IN VIRGINIA
RICHMOND - U.S. Housing and Urban Development Secretary Shaun Donovan today announced the Obama Administration is awarding $22,672,421 million in grants to 133 local homeless programs throughout Virginia. HUD grants offer homeless individuals and families a wide range of housing and support services. For a complete local summary of the grant funding announced today, visit HUD's website.
"With the foreclosure and unemployment crisis looming, millions of families - both homeowners and renters - are in danger of losing their homes so we must focus substantial resources to help those families find stable housing," said Donovan. "The grants being awarded today, along with the recovery plan's additional $1.5 billion, will offer a critical lifeline to those persons and families who, after a foreclosure or job loss, might otherwise be faced with homelessness. Today we are announcing an unprecedented commitment to fund programs that have a proven track record of providing real housing solutions for our most vulnerable neighbors."
Included in today's announcement, HUD is awarding $24 million to create new pilot programs in 23 local communities to rapidly rehouse homeless families with children. These local pilot programs will become the basis of a significantly expanded $1.5 billion effort to offer quick housing assistance to homeless families and to prevent homelessness among those facing a sudden economic crisis.
HUD's funding is provided in two ways:
Continuum of Care Grants provide permanent and transitional housing to homeless persons. In addition, Continuum grants fund important services including job training, health care, mental health counseling, substance abuse treatment and child care. More than $1.5 billion in Continuum of Care grants are awarded competitively to local programs to meet the needs of their homeless clients. Continuum grants fund a wide variety of programs from street outreach and assessment programs to transitional and permanent housing for homeless persons and families.
Emergency Shelter Grants provide funds for the operation of local shelters and fund related social service and homeless prevention programs. Emergency Shelter Grants that are allocated based on a formula to state and local governments to create, improve and operate emergency shelters for homeless persons. These funds may also support essential services including job training, health care, drug/alcohol treatment, childcare and homelessness prevention activities. By helping to support emergency shelter, transitional housing and needed support services, Emergency Shelter Grants are designed to move homeless persons away from a life on the street toward permanent housing.
This year, HUD launched a new electronic grant submission process called e-snaps. This new electronic system allows applicants to store their submissions as they work on them and significantly reduces the time it takes HUD staff to review these applications. It also saves considerable effort by avoiding burdensome and time-consuming data entry. In the end, e-snaps will streamline and accelerate the process of awarding HUD grant to local homeless programs across the country.
Rob Alley, Realtor
The Avery Group at Roy Wheeler
540-250-3275
roballey@roywheeler.com
http://www.robsellscharlottesville.com
http://www.forestlakesliving.com
http://www.theaverygroup.com
RICHMOND - U.S. Housing and Urban Development Secretary Shaun Donovan today announced the Obama Administration is awarding $22,672,421 million in grants to 133 local homeless programs throughout Virginia. HUD grants offer homeless individuals and families a wide range of housing and support services. For a complete local summary of the grant funding announced today, visit HUD's website.
"With the foreclosure and unemployment crisis looming, millions of families - both homeowners and renters - are in danger of losing their homes so we must focus substantial resources to help those families find stable housing," said Donovan. "The grants being awarded today, along with the recovery plan's additional $1.5 billion, will offer a critical lifeline to those persons and families who, after a foreclosure or job loss, might otherwise be faced with homelessness. Today we are announcing an unprecedented commitment to fund programs that have a proven track record of providing real housing solutions for our most vulnerable neighbors."
Included in today's announcement, HUD is awarding $24 million to create new pilot programs in 23 local communities to rapidly rehouse homeless families with children. These local pilot programs will become the basis of a significantly expanded $1.5 billion effort to offer quick housing assistance to homeless families and to prevent homelessness among those facing a sudden economic crisis.
HUD's funding is provided in two ways:
Continuum of Care Grants provide permanent and transitional housing to homeless persons. In addition, Continuum grants fund important services including job training, health care, mental health counseling, substance abuse treatment and child care. More than $1.5 billion in Continuum of Care grants are awarded competitively to local programs to meet the needs of their homeless clients. Continuum grants fund a wide variety of programs from street outreach and assessment programs to transitional and permanent housing for homeless persons and families.
Emergency Shelter Grants provide funds for the operation of local shelters and fund related social service and homeless prevention programs. Emergency Shelter Grants that are allocated based on a formula to state and local governments to create, improve and operate emergency shelters for homeless persons. These funds may also support essential services including job training, health care, drug/alcohol treatment, childcare and homelessness prevention activities. By helping to support emergency shelter, transitional housing and needed support services, Emergency Shelter Grants are designed to move homeless persons away from a life on the street toward permanent housing.
This year, HUD launched a new electronic grant submission process called e-snaps. This new electronic system allows applicants to store their submissions as they work on them and significantly reduces the time it takes HUD staff to review these applications. It also saves considerable effort by avoiding burdensome and time-consuming data entry. In the end, e-snaps will streamline and accelerate the process of awarding HUD grant to local homeless programs across the country.
Rob Alley, Realtor
The Avery Group at Roy Wheeler
540-250-3275
roballey@roywheeler.com
http://www.robsellscharlottesville.com
http://www.forestlakesliving.com
http://www.theaverygroup.com
Obama Grants Money To Home Programs in Virginia
OBAMA ADMINISTRATION AWARDS $22.6 MILLION IN HOMELESS GRANTS TO 133 LOCAL HOUSING AND SERVICE PROGRAMS IN VIRGINIA
RICHMOND - U.S. Housing and Urban Development Secretary Shaun Donovan today announced the Obama Administration is awarding $22,672,421 million in grants to 133 local homeless programs throughout Virginia. HUD grants offer homeless individuals and families a wide range of housing and support services. For a complete local summary of the grant funding announced today, visit HUD's website.
"With the foreclosure and unemployment crisis looming, millions of families - both homeowners and renters - are in danger of losing their homes so we must focus substantial resources to help those families find stable housing," said Donovan. "The grants being awarded today, along with the recovery plan's additional $1.5 billion, will offer a critical lifeline to those persons and families who, after a foreclosure or job loss, might otherwise be faced with homelessness. Today we are announcing an unprecedented commitment to fund programs that have a proven track record of providing real housing solutions for our most vulnerable neighbors."
Included in today's announcement, HUD is awarding $24 million to create new pilot programs in 23 local communities to rapidly rehouse homeless families with children. These local pilot programs will become the basis of a significantly expanded $1.5 billion effort to offer quick housing assistance to homeless families and to prevent homelessness among those facing a sudden economic crisis.
HUD's funding is provided in two ways:
Continuum of Care Grants provide permanent and transitional housing to homeless persons. In addition, Continuum grants fund important services including job training, health care, mental health counseling, substance abuse treatment and child care. More than $1.5 billion in Continuum of Care grants are awarded competitively to local programs to meet the needs of their homeless clients. Continuum grants fund a wide variety of programs from street outreach and assessment programs to transitional and permanent housing for homeless persons and families.
Emergency Shelter Grants provide funds for the operation of local shelters and fund related social service and homeless prevention programs. Emergency Shelter Grants that are allocated based on a formula to state and local governments to create, improve and operate emergency shelters for homeless persons. These funds may also support essential services including job training, health care, drug/alcohol treatment, childcare and homelessness prevention activities. By helping to support emergency shelter, transitional housing and needed support services, Emergency Shelter Grants are designed to move homeless persons away from a life on the street toward permanent housing.
This year, HUD launched a new electronic grant submission process called e-snaps. This new electronic system allows applicants to store their submissions as they work on them and significantly reduces the time it takes HUD staff to review these applications. It also saves considerable effort by avoiding burdensome and time-consuming data entry. In the end, e-snaps will streamline and accelerate the process of awarding HUD grant to local homeless programs across the country.
Rob Alley, Realtor
The Avery Group at Roy Wheeler
540-250-3275
roballey@roywheeler.com
http://www.robsellscharlottesville.com
http://www.forestlakesliving.com
http://www.theaverygroup.com
RICHMOND - U.S. Housing and Urban Development Secretary Shaun Donovan today announced the Obama Administration is awarding $22,672,421 million in grants to 133 local homeless programs throughout Virginia. HUD grants offer homeless individuals and families a wide range of housing and support services. For a complete local summary of the grant funding announced today, visit HUD's website.
"With the foreclosure and unemployment crisis looming, millions of families - both homeowners and renters - are in danger of losing their homes so we must focus substantial resources to help those families find stable housing," said Donovan. "The grants being awarded today, along with the recovery plan's additional $1.5 billion, will offer a critical lifeline to those persons and families who, after a foreclosure or job loss, might otherwise be faced with homelessness. Today we are announcing an unprecedented commitment to fund programs that have a proven track record of providing real housing solutions for our most vulnerable neighbors."
Included in today's announcement, HUD is awarding $24 million to create new pilot programs in 23 local communities to rapidly rehouse homeless families with children. These local pilot programs will become the basis of a significantly expanded $1.5 billion effort to offer quick housing assistance to homeless families and to prevent homelessness among those facing a sudden economic crisis.
HUD's funding is provided in two ways:
Continuum of Care Grants provide permanent and transitional housing to homeless persons. In addition, Continuum grants fund important services including job training, health care, mental health counseling, substance abuse treatment and child care. More than $1.5 billion in Continuum of Care grants are awarded competitively to local programs to meet the needs of their homeless clients. Continuum grants fund a wide variety of programs from street outreach and assessment programs to transitional and permanent housing for homeless persons and families.
Emergency Shelter Grants provide funds for the operation of local shelters and fund related social service and homeless prevention programs. Emergency Shelter Grants that are allocated based on a formula to state and local governments to create, improve and operate emergency shelters for homeless persons. These funds may also support essential services including job training, health care, drug/alcohol treatment, childcare and homelessness prevention activities. By helping to support emergency shelter, transitional housing and needed support services, Emergency Shelter Grants are designed to move homeless persons away from a life on the street toward permanent housing.
This year, HUD launched a new electronic grant submission process called e-snaps. This new electronic system allows applicants to store their submissions as they work on them and significantly reduces the time it takes HUD staff to review these applications. It also saves considerable effort by avoiding burdensome and time-consuming data entry. In the end, e-snaps will streamline and accelerate the process of awarding HUD grant to local homeless programs across the country.
Rob Alley, Realtor
The Avery Group at Roy Wheeler
540-250-3275
roballey@roywheeler.com
http://www.robsellscharlottesville.com
http://www.forestlakesliving.com
http://www.theaverygroup.com
Understanding the Short Sale Process
Before you consider a Short Sale be sure to contact your lender and any other agency that may be able to help you. Beware of anyone who approaches you to “solve your problems,” or charges you any fees. Use only a licensed realtor who gets paid only when the property is sold. There may be important tax considerations. Be sure to contact a qualified tax accountant to understand how they may affect you. As soon as you get a Foreclosure Notice... If you have missed any mortgage payments the lender will contact you to warn you of a possibility of foreclosure. You will usually be given the option catch up with your payments or perhaps to work out some kind of payment schedule. This is called the REINSTATEMENT PERIOD. If you are unable to do this you will get a notice in writing, usually from an attorney acting on the lenders behalf, warning of the foreclosure and the impending SHERIFF’S SALE.
The SHERIFF’S SALE is scheduled and there is a public auction for the property conducted at the Sheriff’s office or county courthouse. Usually it is the bank that wins the bid for the property. After the Sheriff’s Sale, in Minnesota, you usually have six months, called the REDEMPTION PERIOD, during which the mortgage needs to be paid in full either by refinancing, a cash payment or selling the property to satisfy the mortgage(s). You do not need to move until the end of the redemption period or the sale of the property. In many cases the only option is to either let the property go to full foreclosure or sell the property. It is often better for your credit to sell the property and satisfy the mortgage than to let the bank foreclose. However, in this market the odds are very high that the value of the property is less than the mortgage(s). That brings us to the SHORT SALE.
SHORT SALES
A SHORT SALE is when the bank agrees to take less than what is owed, and to allow the property to be sold at a loss. This way the lender removes a non-performing loan from their portfolio and lessens the risk of selling the property at even a greater loss after a foreclosure. Not to mention all of the carrying costs the bank may have during and after a foreclosure. The seller is then released from the loan with less damage to their credit than a foreclosure.
Short Sale Process
A Letter of authorization to release information is sent to the lender. This allows the realtor to talk to lender. The property is listed on the MLS for sale. A Short Sale Package is assembled and sent to the lender. This includes a hardship letter, a financial statement, monthly bills, debts, income pay stubs, tax forms, etc. The realtor sends this to the lender for review. An offer/Purchase Agreement is received. The lender reviews entire package, including the offer. The lender may negotiate terms or price of offer. The property is sold & the owner is released of debt liability.
Rob Alley, Realtor
The Avery Group at Roy Wheeler
540-250-3275
roballey@roywheeler.com
http://www.robsellscharlottesville.com/
http://www.forestlakesliving.com/
http://www.theaverygroup.com/
The SHERIFF’S SALE is scheduled and there is a public auction for the property conducted at the Sheriff’s office or county courthouse. Usually it is the bank that wins the bid for the property. After the Sheriff’s Sale, in Minnesota, you usually have six months, called the REDEMPTION PERIOD, during which the mortgage needs to be paid in full either by refinancing, a cash payment or selling the property to satisfy the mortgage(s). You do not need to move until the end of the redemption period or the sale of the property. In many cases the only option is to either let the property go to full foreclosure or sell the property. It is often better for your credit to sell the property and satisfy the mortgage than to let the bank foreclose. However, in this market the odds are very high that the value of the property is less than the mortgage(s). That brings us to the SHORT SALE.
SHORT SALES
A SHORT SALE is when the bank agrees to take less than what is owed, and to allow the property to be sold at a loss. This way the lender removes a non-performing loan from their portfolio and lessens the risk of selling the property at even a greater loss after a foreclosure. Not to mention all of the carrying costs the bank may have during and after a foreclosure. The seller is then released from the loan with less damage to their credit than a foreclosure.
Short Sale Process
A Letter of authorization to release information is sent to the lender. This allows the realtor to talk to lender. The property is listed on the MLS for sale. A Short Sale Package is assembled and sent to the lender. This includes a hardship letter, a financial statement, monthly bills, debts, income pay stubs, tax forms, etc. The realtor sends this to the lender for review. An offer/Purchase Agreement is received. The lender reviews entire package, including the offer. The lender may negotiate terms or price of offer. The property is sold & the owner is released of debt liability.
Rob Alley, Realtor
The Avery Group at Roy Wheeler
540-250-3275
roballey@roywheeler.com
http://www.robsellscharlottesville.com/
http://www.forestlakesliving.com/
http://www.theaverygroup.com/
Understanding the Short Sale Process
Before you consider a Short Sale be sure to contact your lender and any other agency that may be able to help you. Beware of anyone who approaches you to “solve your problems,” or charges you any fees. Use only a licensed realtor who gets paid only when the property is sold. There may be important tax considerations. Be sure to contact a qualified tax accountant to understand how they may affect you. As soon as you get a Foreclosure Notice... If you have missed any mortgage payments the lender will contact you to warn you of a possibility of foreclosure. You will usually be given the option catch up with your payments or perhaps to work out some kind of payment schedule. This is called the REINSTATEMENT PERIOD. If you are unable to do this you will get a notice in writing, usually from an attorney acting on the lenders behalf, warning of the foreclosure and the impending SHERIFF’S SALE.
The SHERIFF’S SALE is scheduled and there is a public auction for the property conducted at the Sheriff’s office or county courthouse. Usually it is the bank that wins the bid for the property. After the Sheriff’s Sale, in Minnesota, you usually have six months, called the REDEMPTION PERIOD, during which the mortgage needs to be paid in full either by refinancing, a cash payment or selling the property to satisfy the mortgage(s). You do not need to move until the end of the redemption period or the sale of the property. In many cases the only option is to either let the property go to full foreclosure or sell the property. It is often better for your credit to sell the property and satisfy the mortgage than to let the bank foreclose. However, in this market the odds are very high that the value of the property is less than the mortgage(s). That brings us to the SHORT SALE.
SHORT SALES
A SHORT SALE is when the bank agrees to take less than what is owed, and to allow the property to be sold at a loss. This way the lender removes a non-performing loan from their portfolio and lessens the risk of selling the property at even a greater loss after a foreclosure. Not to mention all of the carrying costs the bank may have during and after a foreclosure. The seller is then released from the loan with less damage to their credit than a foreclosure.
Short Sale Process
A Letter of authorization to release information is sent to the lender. This allows the realtor to talk to lender. The property is listed on the MLS for sale. A Short Sale Package is assembled and sent to the lender. This includes a hardship letter, a financial statement, monthly bills, debts, income pay stubs, tax forms, etc. The realtor sends this to the lender for review. An offer/Purchase Agreement is received. The lender reviews entire package, including the offer. The lender may negotiate terms or price of offer. The property is sold & the owner is released of debt liability.
Rob Alley, Realtor
The Avery Group at Roy Wheeler
540-250-3275
roballey@roywheeler.com
http://www.robsellscharlottesville.com/
http://www.forestlakesliving.com/
http://www.theaverygroup.com/
The SHERIFF’S SALE is scheduled and there is a public auction for the property conducted at the Sheriff’s office or county courthouse. Usually it is the bank that wins the bid for the property. After the Sheriff’s Sale, in Minnesota, you usually have six months, called the REDEMPTION PERIOD, during which the mortgage needs to be paid in full either by refinancing, a cash payment or selling the property to satisfy the mortgage(s). You do not need to move until the end of the redemption period or the sale of the property. In many cases the only option is to either let the property go to full foreclosure or sell the property. It is often better for your credit to sell the property and satisfy the mortgage than to let the bank foreclose. However, in this market the odds are very high that the value of the property is less than the mortgage(s). That brings us to the SHORT SALE.
SHORT SALES
A SHORT SALE is when the bank agrees to take less than what is owed, and to allow the property to be sold at a loss. This way the lender removes a non-performing loan from their portfolio and lessens the risk of selling the property at even a greater loss after a foreclosure. Not to mention all of the carrying costs the bank may have during and after a foreclosure. The seller is then released from the loan with less damage to their credit than a foreclosure.
Short Sale Process
A Letter of authorization to release information is sent to the lender. This allows the realtor to talk to lender. The property is listed on the MLS for sale. A Short Sale Package is assembled and sent to the lender. This includes a hardship letter, a financial statement, monthly bills, debts, income pay stubs, tax forms, etc. The realtor sends this to the lender for review. An offer/Purchase Agreement is received. The lender reviews entire package, including the offer. The lender may negotiate terms or price of offer. The property is sold & the owner is released of debt liability.
Rob Alley, Realtor
The Avery Group at Roy Wheeler
540-250-3275
roballey@roywheeler.com
http://www.robsellscharlottesville.com/
http://www.forestlakesliving.com/
http://www.theaverygroup.com/
FAKE HUD WEBSITE...BEWARE!
There is a deceptive website out there that is posing as HUD. This website tries to dupe people into giving out personal information (known as “phishing”) - and because they’ve made their site appear to be an “official us government website”, some people may fall prey to this scam.
The website is: http://bailout.hud-gov.us/
If anyone asks you about this website, advise them to stay away.
Rob Alley, Realtor
The Avery Group at Roy Wheeler
540-250-3275
roballey@roywheeler.com
http://www.robsellscharlottesville.com
http://www.forestlakesliving.com
http://www.theaverygroup.com
The website is: http://bailout.hud-gov.us/
If anyone asks you about this website, advise them to stay away.
Rob Alley, Realtor
The Avery Group at Roy Wheeler
540-250-3275
roballey@roywheeler.com
http://www.robsellscharlottesville.com
http://www.forestlakesliving.com
http://www.theaverygroup.com
FAKE HUD WEBSITE...BEWARE!
There is a deceptive website out there that is posing as HUD. This website tries to dupe people into giving out personal information (known as “phishing”) - and because they’ve made their site appear to be an “official us government website”, some people may fall prey to this scam.
The website is: http://bailout.hud-gov.us/
If anyone asks you about this website, advise them to stay away.
Rob Alley, Realtor
The Avery Group at Roy Wheeler
540-250-3275
roballey@roywheeler.com
http://www.robsellscharlottesville.com
http://www.forestlakesliving.com
http://www.theaverygroup.com
The website is: http://bailout.hud-gov.us/
If anyone asks you about this website, advise them to stay away.
Rob Alley, Realtor
The Avery Group at Roy Wheeler
540-250-3275
roballey@roywheeler.com
http://www.robsellscharlottesville.com
http://www.forestlakesliving.com
http://www.theaverygroup.com
Monday, March 16, 2009
Suntrust Market Update
Thought for the week:
“The future belongs to those who believe in the beauty of their dreams.” Eleanor Roosevelt
Success Story:
Two brothers-in-law have a simple dream of starting a business and making $75 a week. They have a brilliantly simple marketing philosophy: one product served thirty-one different ways. Can you name them? Find the answer at the bottom.
In the News:
While it can’t be said that the U.S. economy has begun a recovery yet, there are signs of hope. According to the Economic Cycle Research Institute the decline in the annualized growth rate of our economy has slowed by 6% over the past six weeks. There is no recovery in sight, but the ECRI states ‘the up tick in its growth rate to a six-week high suggests the pace of contraction will slow in coming months’. This means ‘Good News’ could be on the horizon.
As stated in prior Market Updates, national real estate statistics are driven by numbers in Florida, Las Vegas, Arizona, California and Northern Virginia. On Friday, I spoke with a with Charlottesville resident vacationing at their 2nd home in south Florida. He told me about the opening of a new subdivision near his home with two model homes. The lots went on the market last Saturday, and cars were lined up for miles waiting to get into the area to view the property. His realtor had to cancel a couple of their planned golf outings, because he was too busy to get away. If this is a sign of that the Florida market is beginning to turn, it really is ‘Good News’.
Closer home, the Northern Virginia purchase market has heated up. Buyers are in the market and properties are moving. Our SunTrust Mortgage offices in Northern Virginia have full pipelines of purchase loans. Purchase applications have continued to increase in our office weekly as well. More importantly nationally applications for purchase mortgages increased 7.1% last week. If this trend continues, the media could jump on board leading to a change in the mindset of many future buyers. That would be ‘Good News’.
I would be remiss in not pointing out that potential buyers waiting for the right time should consider the facts above when considering how long they can afford to wait.
Market Update:
Global investors are constantly searching for opportunities that will provide the greatest return with the least amount of risk. As global financial markets struggled, many have searched for a safe haven in the U.S. financial markets. With the backing of the U.S. Government, investors view the Treasury and mortgage bond markets among the best opportunities resulting in an increased demand for U.S. investments such as mortgage backed securities. The increase in demand pushed prices higher and interest rates lower this week.
This week China’s Premier expressed concerns about the amount of investment his country has in U.S debt. This caused a panic in the bonds markets. The panic was quickly calmed, but uncertainties remain regarding the future of China’s continued involvement in future purchases. China is the largest foreign investor in U.S. debt. As we have stated often in our Market Updates, a reversal of this foreign demand could result in a spike to interest rates.
Potential buyers need to keep this in mind and understand that despite the efforts of our government, there are factors beyond their control that influence mortgage rates. Buyers should not assume today’s low interest rates will go unchanged in the future.
Let’s go get ‘em”!!
Interest Rates:
On Friday March 13th your purchase client with a 720 credit score putting 20% down could secure a conventional 30-Year Fixed rate at 4.50% with 1.125 points on a 30-day lock (APR: 4.634%).
FHA has established Risk Based Pricing with regards to credit scores. Borrowers with scores <660>719 will have a rate improvement. On Friday March 13th your FHA purchase client with a 660-719 credit score could secure a 30-Year Fixed rate at 4.750% with 1.0 point on a 30-day lock (APR: 5.368%). Remember the APR on FHA includes the MI.
Jumbo rates are subject to Risk Based Pricing with regards to credit scores. Borrowers with scores <740>759 will have a rate improvement. On Friday March 13th your Jumbo purchase client borrowing $1MM with a 740 credit score putting 25% down could secure a 30-Year Fixed rate at 5.875% with 1.250 points on a 30-day lock (APR: 6.008%).
(Burton Baskin & Irvine Robbins of Baskin-Robbins Ice Cream fame)
Rob Alley, Realtor
The Avery Group at Roy Wheeler
540-250-3275
roballey@roywheeler.com
http://www.robsellscharlottesville.com
http://www.forestlakesliving.com
http://www.theaverygroup.com
“The future belongs to those who believe in the beauty of their dreams.” Eleanor Roosevelt
Success Story:
Two brothers-in-law have a simple dream of starting a business and making $75 a week. They have a brilliantly simple marketing philosophy: one product served thirty-one different ways. Can you name them? Find the answer at the bottom.
In the News:
While it can’t be said that the U.S. economy has begun a recovery yet, there are signs of hope. According to the Economic Cycle Research Institute the decline in the annualized growth rate of our economy has slowed by 6% over the past six weeks. There is no recovery in sight, but the ECRI states ‘the up tick in its growth rate to a six-week high suggests the pace of contraction will slow in coming months’. This means ‘Good News’ could be on the horizon.
As stated in prior Market Updates, national real estate statistics are driven by numbers in Florida, Las Vegas, Arizona, California and Northern Virginia. On Friday, I spoke with a with Charlottesville resident vacationing at their 2nd home in south Florida. He told me about the opening of a new subdivision near his home with two model homes. The lots went on the market last Saturday, and cars were lined up for miles waiting to get into the area to view the property. His realtor had to cancel a couple of their planned golf outings, because he was too busy to get away. If this is a sign of that the Florida market is beginning to turn, it really is ‘Good News’.
Closer home, the Northern Virginia purchase market has heated up. Buyers are in the market and properties are moving. Our SunTrust Mortgage offices in Northern Virginia have full pipelines of purchase loans. Purchase applications have continued to increase in our office weekly as well. More importantly nationally applications for purchase mortgages increased 7.1% last week. If this trend continues, the media could jump on board leading to a change in the mindset of many future buyers. That would be ‘Good News’.
I would be remiss in not pointing out that potential buyers waiting for the right time should consider the facts above when considering how long they can afford to wait.
Market Update:
Global investors are constantly searching for opportunities that will provide the greatest return with the least amount of risk. As global financial markets struggled, many have searched for a safe haven in the U.S. financial markets. With the backing of the U.S. Government, investors view the Treasury and mortgage bond markets among the best opportunities resulting in an increased demand for U.S. investments such as mortgage backed securities. The increase in demand pushed prices higher and interest rates lower this week.
This week China’s Premier expressed concerns about the amount of investment his country has in U.S debt. This caused a panic in the bonds markets. The panic was quickly calmed, but uncertainties remain regarding the future of China’s continued involvement in future purchases. China is the largest foreign investor in U.S. debt. As we have stated often in our Market Updates, a reversal of this foreign demand could result in a spike to interest rates.
Potential buyers need to keep this in mind and understand that despite the efforts of our government, there are factors beyond their control that influence mortgage rates. Buyers should not assume today’s low interest rates will go unchanged in the future.
Let’s go get ‘em”!!
Interest Rates:
On Friday March 13th your purchase client with a 720 credit score putting 20% down could secure a conventional 30-Year Fixed rate at 4.50% with 1.125 points on a 30-day lock (APR: 4.634%).
FHA has established Risk Based Pricing with regards to credit scores. Borrowers with scores <660>719 will have a rate improvement. On Friday March 13th your FHA purchase client with a 660-719 credit score could secure a 30-Year Fixed rate at 4.750% with 1.0 point on a 30-day lock (APR: 5.368%). Remember the APR on FHA includes the MI.
Jumbo rates are subject to Risk Based Pricing with regards to credit scores. Borrowers with scores <740>759 will have a rate improvement. On Friday March 13th your Jumbo purchase client borrowing $1MM with a 740 credit score putting 25% down could secure a 30-Year Fixed rate at 5.875% with 1.250 points on a 30-day lock (APR: 6.008%).
(Burton Baskin & Irvine Robbins of Baskin-Robbins Ice Cream fame)
Rob Alley, Realtor
The Avery Group at Roy Wheeler
540-250-3275
roballey@roywheeler.com
http://www.robsellscharlottesville.com
http://www.forestlakesliving.com
http://www.theaverygroup.com
Suntrust Market Update
Thought for the week:
“The future belongs to those who believe in the beauty of their dreams.” Eleanor Roosevelt
Success Story:
Two brothers-in-law have a simple dream of starting a business and making $75 a week. They have a brilliantly simple marketing philosophy: one product served thirty-one different ways. Can you name them? Find the answer at the bottom.
In the News:
While it can’t be said that the U.S. economy has begun a recovery yet, there are signs of hope. According to the Economic Cycle Research Institute the decline in the annualized growth rate of our economy has slowed by 6% over the past six weeks. There is no recovery in sight, but the ECRI states ‘the up tick in its growth rate to a six-week high suggests the pace of contraction will slow in coming months’. This means ‘Good News’ could be on the horizon.
As stated in prior Market Updates, national real estate statistics are driven by numbers in Florida, Las Vegas, Arizona, California and Northern Virginia. On Friday, I spoke with a with Charlottesville resident vacationing at their 2nd home in south Florida. He told me about the opening of a new subdivision near his home with two model homes. The lots went on the market last Saturday, and cars were lined up for miles waiting to get into the area to view the property. His realtor had to cancel a couple of their planned golf outings, because he was too busy to get away. If this is a sign of that the Florida market is beginning to turn, it really is ‘Good News’.
Closer home, the Northern Virginia purchase market has heated up. Buyers are in the market and properties are moving. Our SunTrust Mortgage offices in Northern Virginia have full pipelines of purchase loans. Purchase applications have continued to increase in our office weekly as well. More importantly nationally applications for purchase mortgages increased 7.1% last week. If this trend continues, the media could jump on board leading to a change in the mindset of many future buyers. That would be ‘Good News’.
I would be remiss in not pointing out that potential buyers waiting for the right time should consider the facts above when considering how long they can afford to wait.
Market Update:
Global investors are constantly searching for opportunities that will provide the greatest return with the least amount of risk. As global financial markets struggled, many have searched for a safe haven in the U.S. financial markets. With the backing of the U.S. Government, investors view the Treasury and mortgage bond markets among the best opportunities resulting in an increased demand for U.S. investments such as mortgage backed securities. The increase in demand pushed prices higher and interest rates lower this week.
This week China’s Premier expressed concerns about the amount of investment his country has in U.S debt. This caused a panic in the bonds markets. The panic was quickly calmed, but uncertainties remain regarding the future of China’s continued involvement in future purchases. China is the largest foreign investor in U.S. debt. As we have stated often in our Market Updates, a reversal of this foreign demand could result in a spike to interest rates.
Potential buyers need to keep this in mind and understand that despite the efforts of our government, there are factors beyond their control that influence mortgage rates. Buyers should not assume today’s low interest rates will go unchanged in the future.
Let’s go get ‘em”!!
Interest Rates:
On Friday March 13th your purchase client with a 720 credit score putting 20% down could secure a conventional 30-Year Fixed rate at 4.50% with 1.125 points on a 30-day lock (APR: 4.634%).
FHA has established Risk Based Pricing with regards to credit scores. Borrowers with scores <660>719 will have a rate improvement. On Friday March 13th your FHA purchase client with a 660-719 credit score could secure a 30-Year Fixed rate at 4.750% with 1.0 point on a 30-day lock (APR: 5.368%). Remember the APR on FHA includes the MI.
Jumbo rates are subject to Risk Based Pricing with regards to credit scores. Borrowers with scores <740>759 will have a rate improvement. On Friday March 13th your Jumbo purchase client borrowing $1MM with a 740 credit score putting 25% down could secure a 30-Year Fixed rate at 5.875% with 1.250 points on a 30-day lock (APR: 6.008%).
(Burton Baskin & Irvine Robbins of Baskin-Robbins Ice Cream fame)
Rob Alley, Realtor
The Avery Group at Roy Wheeler
540-250-3275
roballey@roywheeler.com
http://www.robsellscharlottesville.com
http://www.forestlakesliving.com
http://www.theaverygroup.com
“The future belongs to those who believe in the beauty of their dreams.” Eleanor Roosevelt
Success Story:
Two brothers-in-law have a simple dream of starting a business and making $75 a week. They have a brilliantly simple marketing philosophy: one product served thirty-one different ways. Can you name them? Find the answer at the bottom.
In the News:
While it can’t be said that the U.S. economy has begun a recovery yet, there are signs of hope. According to the Economic Cycle Research Institute the decline in the annualized growth rate of our economy has slowed by 6% over the past six weeks. There is no recovery in sight, but the ECRI states ‘the up tick in its growth rate to a six-week high suggests the pace of contraction will slow in coming months’. This means ‘Good News’ could be on the horizon.
As stated in prior Market Updates, national real estate statistics are driven by numbers in Florida, Las Vegas, Arizona, California and Northern Virginia. On Friday, I spoke with a with Charlottesville resident vacationing at their 2nd home in south Florida. He told me about the opening of a new subdivision near his home with two model homes. The lots went on the market last Saturday, and cars were lined up for miles waiting to get into the area to view the property. His realtor had to cancel a couple of their planned golf outings, because he was too busy to get away. If this is a sign of that the Florida market is beginning to turn, it really is ‘Good News’.
Closer home, the Northern Virginia purchase market has heated up. Buyers are in the market and properties are moving. Our SunTrust Mortgage offices in Northern Virginia have full pipelines of purchase loans. Purchase applications have continued to increase in our office weekly as well. More importantly nationally applications for purchase mortgages increased 7.1% last week. If this trend continues, the media could jump on board leading to a change in the mindset of many future buyers. That would be ‘Good News’.
I would be remiss in not pointing out that potential buyers waiting for the right time should consider the facts above when considering how long they can afford to wait.
Market Update:
Global investors are constantly searching for opportunities that will provide the greatest return with the least amount of risk. As global financial markets struggled, many have searched for a safe haven in the U.S. financial markets. With the backing of the U.S. Government, investors view the Treasury and mortgage bond markets among the best opportunities resulting in an increased demand for U.S. investments such as mortgage backed securities. The increase in demand pushed prices higher and interest rates lower this week.
This week China’s Premier expressed concerns about the amount of investment his country has in U.S debt. This caused a panic in the bonds markets. The panic was quickly calmed, but uncertainties remain regarding the future of China’s continued involvement in future purchases. China is the largest foreign investor in U.S. debt. As we have stated often in our Market Updates, a reversal of this foreign demand could result in a spike to interest rates.
Potential buyers need to keep this in mind and understand that despite the efforts of our government, there are factors beyond their control that influence mortgage rates. Buyers should not assume today’s low interest rates will go unchanged in the future.
Let’s go get ‘em”!!
Interest Rates:
On Friday March 13th your purchase client with a 720 credit score putting 20% down could secure a conventional 30-Year Fixed rate at 4.50% with 1.125 points on a 30-day lock (APR: 4.634%).
FHA has established Risk Based Pricing with regards to credit scores. Borrowers with scores <660>719 will have a rate improvement. On Friday March 13th your FHA purchase client with a 660-719 credit score could secure a 30-Year Fixed rate at 4.750% with 1.0 point on a 30-day lock (APR: 5.368%). Remember the APR on FHA includes the MI.
Jumbo rates are subject to Risk Based Pricing with regards to credit scores. Borrowers with scores <740>759 will have a rate improvement. On Friday March 13th your Jumbo purchase client borrowing $1MM with a 740 credit score putting 25% down could secure a 30-Year Fixed rate at 5.875% with 1.250 points on a 30-day lock (APR: 6.008%).
(Burton Baskin & Irvine Robbins of Baskin-Robbins Ice Cream fame)
Rob Alley, Realtor
The Avery Group at Roy Wheeler
540-250-3275
roballey@roywheeler.com
http://www.robsellscharlottesville.com
http://www.forestlakesliving.com
http://www.theaverygroup.com
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