Today- a vote to allow Judges to do Principle reduction on primary home loans!

Loan Modifications with PRINCIPLE REDUCTION does not happen hardly at all. It should, and it makes sense. This is a good call to action, and I would support this bill. Please spread the word if you can

Via Mark Archer (REC Real Estate Consulting Services LLC):

CONTACT CONGRESS: Support Judges Modifying Mortgages NOW! Otherwise, It's All Up to the Banks. Posted: 10 Dec 2009 06:20 PM PSTSCROLL TO BOTTOM FOR BUTTON THAT MAKES IT SIMPLE TO CONTACT YOUR REPRESENTATIVE IN CONGRESS. YOU DON'T EVEN NEED TO KNOW HIS OR HER NAME... JUST YOUR NAME, ADDRESS AND ZIP CODE.

In the next 2-3 years, it is estimated that there will be an additional 14 million foreclosures in this country. That will make the total roughly 20 million homes lost in this catastrophic recession.But it won't stop there. Foreclosures breed foreclosures. And 20 million foreclosures just means that millions more homeowners will find themselves seriously underwater... owing quite a bit more than their house is worth... and they'll walk away... just like 18% are doing now.
And that will mean even more foreclosures after that. And that will mean everyone's property values continue to fall, which will bring even more foreclosures.

Both President Bush and President Obama have tried to put plans in place to stop the flood of foreclosures... BOTH HAVE FAILED. Why? Isn't it obvious?The banks cannot be trusted to act in anyone's interest but their own. The government has given them hundreds of billions of dollars, after they bankrupted themselves. And yet, they act as if it's business as usual.This year alone, the major banks in this country are paying out $91 BILLION in BONUSES to their executives!

The only answer is to allow judges to modify mortgages for homeowners in bankruptcy court. Here are a few facts that will show you why this is so important:

1. President Obama's Making Home Affordable program was designed to work with "a carrot and a stick". The "carrot" is the money banks receive when they modify a loan, and the "stick" was supposed to be allowing judges to modify the loans. Without the "stick," the plan cannot work.

2. Banks don't modify their behavior for the same reason I wouldn't modify my driving habits if there weren't Highway Patrol officers out there to give me a ticket or take me to jail if I drive 100 miles per hour. No stick.

3. Allowing judges to modify mortgages in bankruptcy court WILL NOT increase borrowing costs in the future, which is what the banking lobby is saying and wants you to believe. The amendment only allows judges to modify mortgages that are already in existence when the bill is signed. It will have NO EFFECT on borrowing in the future whatsoever. NONE.

4. If we allow judges to modify mortgages on primary residences, chances are they'll never get the chance... because the banks will modify them... like they're supposed to.

5. Judges can already modify every other type of loan in bankruptcy court, just not mortgages on primary residences. Allowing them to do so will help stop the foreclosure crisis that is hurting every homeowner in America... AND IT WON'T COST THE TAXPAYERS A DIME!

Our economy cannot begin to recover until we stabilize the housing market. We've tried letting the banks decide... and look where we are today.The only people opposed to this amendment are the bankers and financial service companies. We can't turn our country over to them, can we?

Click the button below NOW, 24/7. There is literally NO TIME TO SPARE... You don't even need to know your representative's name. All you need to know is your own name, address, phone and zip code. The letter is already written for you. Just enter your information and click the button to send. It's that simple and takes less than a minute.

OR YOU CAN CALL 877.354.4958 DURING REGULAR BUSINESS HOURS.
DO IT NOW. IF YOU DON'T, IT WILL ALL BE UP TO THE BANKS.

EMERGENCY!! PLEASE TAKE ACTION RIGHT NOW... SAVE BANKRUPTCY REFORM! Posted: 10 Dec 2009 01:45 PM PSTJUST MINUTES AGO...House Rules Committee agreed to allow the bankruptcy modification amendment THAT WOULD ALLOW JUDGES TO MODIFY MORTGAGES to be considered on the House floor as an amendment to the broader financial services reform bill AS EARLY AS THIS AFTERNOON!!THIS AMENDMENT IS BEING FIERCELY OPPOSED by the BANKS AND FINANCIAL SERVICES communities and we NEED to get people CALLING in IMMEDIATELY. PLEASE TAKE TIME NOW TO contact your friends, family and business associates... stop whatever your staff is doing to give them time to call in. Put it on your Facebook pages, on your LinkedIn pages, Twitter it... re-tweet it! PLEASE DO IT RIGHT NOW!IT'S SUPER EASY TO DO:Phone toll free at: 877.354.4958Put in your zip codeWhen you reach the receptionist:State your nameSay that you are a constituentAsk the Representative to vote FOR the Conyers-Turner-Lofgren amendment (#201) to the Financial Services Reform bill.This amendment will cost taxpayers NOTHING and will save millions of homes from foreclosure. IT MUST BE CONSIDERED... IF THE LINE IS CLOSED, BECAUSE CLOSES AT 6:00 PM...Email your Senators (24/7) using the link below, which will lead you to a sample email that you can edit and personalize. YOU DON'T EVEN NEED TO KNOW YOUR REP'S NAME... CLICK AND GO!Email Your Congressional Representative Now

Hope for short sales and loan modifications- new guidlines this week!

Finally! Home owners, Realtors, Lenders, and home buyers are all going to benefit from these new guidlines. The faster and easier the process becomes the closer offers will come to being fair market value.

This will lead to reduced inventories, and market stabilization. The Treasury department created a 46 page guide for major lenders to follow with regards to short sales, deed in lieu, and loan modifications. The frustrating process was in need of standardization, and streamlining.

Short sales that are dragged out for months and months. Homes that sell as short sales tend to go pending with prices that are below market value since the buyer(s) brace themselves for the long drawn out process with no guarantee that their offer will be accepted.
These guidelines go into effect in April of 2010. Hopefully, most lenders will become early adopters of the new guidelines.

One major point of the guidelines is that the lender has to offer a plan to help the borrower with a loan modification ahead of entertaining a short sale, or deed-in-lieu.

This is a great requirement, since I see many people that would rather keep their current home, but are having a tough time making the payments, or they are so far "underwater" that they question the rational of paying on a mortgage that is much higher than the actual value.

I think that one aspect that was missing was creating an incentive for the lend ers to "cram-down", or reduce the principle balance to the actual value of the home. Many borrowers would work to keep their homes if they had equity, or at least didn't have negative equity.

Some of the major points that relate to short sales.

1. Lenders must respond to Short Sale requests within 10 business days of receipt of the offer package.
2. The seller will be released from all liability for repayment of the mortgage debt.
Subsequently, the seller is entitled to a relocation incentive of $1,500, which will be deducted from the gross sale proceeds at closing.
3. The lender will be paid $1,000 to cover administrative and processing costs for a Short Sale or a deed-in-lieu.
4. The property must be listed with a licensed real estate professional who does regular business in the community where the property is located.
5. The lender is prohibited from requiring, as a condition of approving the Short Sale, a reduction in the agreed-upon real estate commission.
6. The investor will be paid a maximum of $1,000 for allowing a total of up to $3,000 in Short Sale proceeds to be distributed to subordinate lien holders, or for allowing payment of up to $3,000 to subordinate lien holders.

LINK to Home ownership retention guide https://www.hmpadmin.com/portal/docs/hamp_servicer/sd0909.pdf

If you are looking for help with a short sale or loan modification for a home located in Manatee or Sarasota Counties I would be happy to help you understand your options. I have helped dozens of homeowners either sell or assist to modify their home loans. I can help you too with no cost. For all your real estate needs I am ready to go to work for you!
Joe Murphy 941-780-3260
www.manateemoves.com
www.activerain.com/manateemoves

Obama signs home tax credit extension.

It's finally really here. Of course, this is a little old news, as people have been saying that the tax credit was approved fro the past week. Nothing is in stone until the President signs the bill into law.
It would have been nice if this could be extended to ALL home buyers. This would cause the investors back in the market in droves, and snapping up all the investment homes. Could you imagine buying a rental home for 50,000 and getting back 8,000 of your taxes?
Kind of like when everyone was driving HUMMERS because they could write off the full cost of the vehicle in the first year. I am happy with this extension because personally I have four contracts pending with First time home buyers that were probably not going to close by the deadline. It would have been ugly for all those that were counting on the credit if they couldn't get it.

Here are the highlights

• The stimulus bill will extend the 8,000 dollar tax credit to First time home buyers from the current deadline of November 30. until May 1, 2010. If you are under contract by

• April 30, then you will qualify as long as you close by July 1, 2010.
  
• "MOVE UP" buyers can now qualify for up to a 6,500 dollar tax credit if they are buying a primary home, and have lived in their current home for at least 5 years. (This is really great, although it would be better if it was for all home-buyers regardless of purpose)
  
• All U.S citizens that file taxes are eligible
  
• The tax credit has no pay back provisions so that you don't pay anything back over time, and if your taxes are less than the credit you will get a refund back.

Here is the FINE PRINT

• Home-buyers who file as single or head-of-household taxpayers can claim the full credit ($8,000 for first-time buyers and $6,500 for repeat buyers) if their modified adjusted gross income is less than $125,000.
• For married couples filing a joint return, the combined income limit is $225,000.
  Single or head-of-household taxpayers who earn between $125,000 and $145,000, and married couples who earn between $225,000 and $245,000 are eligible to receive a partial credit.
• The credit is not available for single taxpayers whose income is greater than $145,000 and married couples with an income that exceeds $245,000.
• The maximum price of the home can not exceed 800,000. Bummer..
  
  When you need a great Realtor in Manatee County please give me a call. I am ready to help.
  Short sale expert, REO-Bank owned, and investment properties
  Joe Murphy
  Coldwell Banker Residential Real Estate
  941-780-3260