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Bankers, can we have more open and transparent loan modifications

Posted by Bion Grady on December 9, 2010 at 5:56am
Loan modifications have become a joke. People get turned down for no reason at all.

People really want to keep their home, but just can't figure out what to do. The loan modification negotiators realize how desperate the homeowners are. They use their power over the person to take an ego trip.

Discover how other sellers successfully did a short sale to avoid foreclosure by clicking here.



"I'm going to make this person beg me personally for their loan modification", they think to themselves. Everything becomes a competition between negotiators on who can squeeze more out of people.

They talk to their fellow negotiators about what they are able to force people to do. "I saw that one lady had $100 a month for entertainment on her financial statement. I told her she didn't deserve money for entertainment when she owed money to us", they say to them.

Meanwhile, the other negotiator tells their story. "One couple had $200 a month on their financial statement to give to their church. As soon as I saw that, I increased the payment I asked by $200", they say.

Yes, power does corrupt. These loan modification negotiators hold they keys to the homeowners future staying in their home.

Here is what needs to be added to the Homeowner's Bill of Rights.

1. Whenever a homeowner is turned down for a loan modification, the lender shall give them a written, coherent response along with the reason they were turned down. It needs to specifically detail why they were denied and what they can do to be approved.

2. Homeowners are given all the guidelines at the beginning of the loan modification process. They should receive the same guidelines the loan modification negotiator receives. That way they can make sure that they aren't lying to them.

Thinking about a short sale? I can help you short sale your property and never pay the bank another penny. Send me an e-mail at bion@bionsellshomes.com. I will contact you for a free consultation.

When we talk, I will explain how the process works in detail. If you prefer, then you can call me at 770-875-4268.

Discover how other sellers successfully completed a short sale and request a free consultation by clicking here.

Thinking about a loan modification? Our Powder Springs Loan Modification Kit has the instructions you will need to get a loan modification approved with your lender. Click here to request a copy.

Thanks for reading this, Bion Grady.

Bion is a Real Estate Agent at Maximum One Realty Greater Atlanta.

Phone: 770-875-4268. bion@bionsellshomes.com.

A Better Solution

View My homes for sale at www.bionsellshomes.com.

Bion Grady specializes in loan modification assistance and short sales in Powder Springs Georgia. Powder Springs Loan Modification Help, Powder Springs Short Sales. Powder Springs Short Sale Realtor Short Sale Realtor. Powder Springs GA Short Sales. Powder Springs Realtor.

Copyright 2010 SFI Marketing Institute, LLC. All Rights Reserved. This is not intended as legal, technical, or tax advice. Please speak with a licensed professional before making any decision. Information is deemed reliable but not guaranteed as of the date of writing. The views expressed here are Bion Grady's personal views and do not reflect the views of Maximum One Realty Greater Atlanta. This information on Powder Springs Short Sales: Bankers, can we have more open and transparent loan modifications is provided as a courtesy to our viewers to help them make informed decisions.
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Will I Owe Income Tax after a Short Sale

Posted by Bion Grady on December 27, 2010 at 4:50am


This is one of the first questions potential short sale sellers ask us. “I heard of something called “forgiveness of debt income and that it is taxable. How does that work?” they ask.

The following article is my personal opinion only. I recommend that you consult with a competent legal or tax professional before moving forward with a short sale.

In most cases the answer is that a short sale will usually not cause you to owe income tax.

Discover how other sellers successfully did a short sale to avoid foreclosure by clicking here.

It used to be that you owed income tax on any forgiveness of debt.

When a lender decides to forgive all or a portion of a borrower's debt, the forgiven amount is considered as income for the borrower and is liable to be taxed.

Here are the following ways you can qualify to short sale a property without any tax liability.

Short Sale of a Primary Residence. The Mortgage Forgiveness Debt Relief Act of 2007 (and it’s extension in the 2008 Federal Bailout) now allows you to short sale a primary residence without any tax liability.

Today when a homeowner short sales a primary residence, they can file a simple form and the forgiven debt is no longer taxable.

The amount of forgiven mortgage debt allowed to be excluded from income tax is limited to $2 million per year.

Short Sale of a Non-Primary Residence: If the property you are selling is not a primary residence, then you may be eligible for tax relief if you are considered insolvent.

I don’t know the exact guidelines, but insolvent is usually considered when your total gross debts are more than your total gross assets. I’m sure a good tax professional can give you more information.

Click here to view the IRS’s website about the Mortgage Forgiveness Debt Relief Act and Debt Cancellation.

Click here to view the article on the IRS’s Website: Mortgage Workouts Now Tax-Free for Many Homeowners.

Thinking about a short sale? I can help you short sale your property and never pay the bank another penny. Send me an e-mail at bion@bionsellshomes.com. I will contact you for a free consultation.

When we talk, I will explain how the process works in detail and answer any questions you may have. Or, if you prefer, you can call me at 770-875-4268

Discover how other sellers successfully completed a short sale and request a free consultation by clicking here.

Thinking about a loan modification? Our Powder Springs loan modification kit has the instructions you will need to get a loan modification approved with your bank. Click here to request a copy.

Thanks for reading this, Bion Grady.

Bion is a Real Estate Agent at Maximum One Realty Greater Atlanta. Powder Springs Short Sales Realtor:

Phone: 770-875-4268. bion@bionsellshomes.com.

A Better Solution

View My homes for sale at www.bionsellshomes.com.

Bion Grady specializes in loan modification assistance and short sales in Powder Springs Georgia. Powder Springs Loan Modification Help, Powder Springs Short Sales. Powder Springs Short Sale Realtor Short Sale Realtor. Powder Springs GA Short Sales. Powder Springs Realtor.

Copyright 2010 SFI Marketing Institute, LLC. All Rights Reserved. This is not intended as legal, technical, or tax advice. Please speak with a licensed professional before making any decision. Information is deemed reliable but not guaranteed as of the date of writing. The views expressed here are Bion Grady's personal views and do not reflect the views of Maximum One Realty Greater Atlanta.

This information on Powder Springs Short Sales: Will I Owe Income Tax After A Short Sale? is provided as a courtesy to our viewers to help them make informed decisions.
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Loan Modifications can be a recipe for disaster

Posted by Bion Grady on January 26, 2011 at 12:43pm


The Star Tribune, a newspaper in Minneapolis, recently ran a story about loan modifications. Here is an excerpt from the article:

“Many people who sought help under a federal program created to keep them from losing their homes are instead getting saddled with huge, unexpected bills.

Thousands now face a stark choice: Go deeper into debt, or foreclosure.

Lenders routinely approved short-term "trial" loan modifications that reduced payments for desperate borrowers under the umbrella of the Obama administration's Home Affordable Modification Program. But lenders continued to count the mortgages as delinquent or in default.

Now instead of granting permanent modifications, lenders often are reinstating the original loan terms and demanding big back payments.

Carl Christensen, a Minneapolis real estate attorney, said he is getting 15 telephone calls a week from shocked borrowers.

"The banks put out their hand and say, 'We're going to help you,' and then stab people right in the back," Christensen said.

Patti, 51, and Scott Weddle, 57, of Harris, Minn., were ecstatic when J.P. Morgan Chase offered in November 2009 to cut their monthly mortgage payments by about 20 percent under a trial modification. Patti was out of work with a neck and back injury, and the Weddles were having difficulty making ends meet.

Nearly a year later, the Weddles were told that their application for a permanent modification was denied and that they would have to pay $24,228 to bring their mortgage current and avoid foreclosure.

The Weddles insist the demand came as a shock, because they had made all their payments on time under the trial modification. "We did everything that was asked of us, and it only pushed us deeper in the hole," Patti Weddle said.

A growing number of critics contend the loan modification program, known within the industry as HAMP, may be doing more harm than good. Many homeowners are draining their savings and incurring new loans to make the temporary payments only to end up in foreclosure anyway when they can't afford the large, lump-sum payments demanded at the end of the process.

When the Weddles got turned down for permanent relief under HAMP, they decided to stop making their monthly payments. They expect to receive foreclosure papers any day and most of their belongings are packed. "If we had $24,000 lying around, then we wouldn't have sought help to begin with," Patti Weddle said.

A spokesman for J.P. Morgan Chase said the risks were disclosed to the Weddles. Under the trial modification signed by the couple, J.P. Morgan reserved the right to terminate the plan at any point and begin foreclosure. The bank also reserved the right to determine the final amounts of unpaid interest and any other delinquent amounts.

"We work with customers to try to keep them in the home whenever possible," said Thomas Kelly, a bank spokesman. "And the HAMP documents clearly explain the steps along the way."

Paula Viehman, 60, recalls the day she was approved for a trial modification in June 2009. After a 30-minute conversation, a CitiMortgage representative agreed to cut her monthly payment by half to $929. "It was the answer to my prayers," said Viehman, a state employee who lives in Minneapolis.

Fifteen months later, CitiMortgage sent two letters claiming she was in default on her mortgage and owed $13,569 in back payments, late fees and other charges. When Viehman called to complain, she learned that CitiMortgage had denied her application for permanent relief under HAMP, though the bank had never notified her.

Viehman refuses to make the lump-sum payment, largely on principle, because that would mean accepting Citi-Mortgage's claim that she's in default. Though she continues to make monthly mortgage payments, she suspects the bank will eventually foreclose on the house where she's lived for 25 years.

"The longer I go through this, the madder I get," she said. "I did everything they asked and more."

Citigroup, CitiMortgage's parent company, declined to comment about Viehman's complaints because of privacy concerns. However, in a written statement, the bank said the original terms of a mortgage remain in place during a trial modification. Borrowers only receive relief from delinquent payments if they get permanent modifications.

Many borrowers say they never would have signed up for HAMP had they known the risks.

Lynda Devine, 49, of Faribault, said she had not even heard of HAMP until she called her mortgage servicer, Aurora Loan Services of Colorado, about a routine matter. While on hold, she found herself listening to a recorded message that said she might qualify for HAMP. She checked it out and learned it was a program sponsored by the Obama administration. "It all seemed very legit," she said.

Aurora agreed to cut her monthly payment to $1,400 from $2,000 under a trial modification. But Devine, a children's mental health social worker and waitress, soon found herself mired in a bureaucratic nightmare. As she sought permanent relief, Aurora kept asking for the same documents -- including bank and tax statements. Devine estimates she has faxed documents to Aurora more than 60 times.

Nonetheless, she received notice in July that she was in default. Soon after, she got a letter from Aurora's law firm saying she would have to come up with $13,496 or face foreclosure. Devine couldn't stomach the idea of losing her 1920s-era farmhouse and her 35 acres, where she keeps three beloved horses.

Aurora did not return repeated calls seeking comment.

Devine borrowed against her truck and horse trailer to pay the $13,496, but she's considering suing Aurora to get the money back.”

I think that what these banks are doing is pathetic. In my opinion, half the reason that loan mods aren’t approved is because the lenders are too lazy to process the files.

In fact, the article continues and tells us how the lenders are actually rewarded for not processing loan modifications. Here is what it says.

“Incentives favor foreclosure. It would seem to be in a mortgage company's interest to modify a mortgage, because lenders often recover only a small fraction of a loan after a foreclosure. But only 12 percent of all delinquent mortgage borrowers are receiving permanent relief under HAMP.

Last month, a congressional panel predicted it would prevent just 700,000 to 800,000 foreclosures -- far fewer than the Obama administration's original goal of 3 million to 4 million.

Some lending experts argue that the root of the problem lies in the complicated way in which mortgages are bought and sold. Most end up with institutions or investment trusts that hire servicers to collect monthly payments.

Servicers, unlike lenders, don't generally lose money on a foreclosure. In fact, servicers actually can collect more in fees on a foreclosure than from modifying a mortgage, according to a 2009 study by the National Consumer Law Center.”

I think the entire system is flawed. The only people that get relief are people that fight for it. If you feel like you have been turned down for a loan modification, then I would recommend that you protest in front of the lender’s local branch.

Nothing is going to change until people know about what is happening. Thinking about a short sale?

I can help you short sale your property and never pay the bank another penny. Send me an e-mail at bion@bionsellshomes.com. I will contact you for a free consultation.

When we talk, I will explain how the process works in detail and answer any questions you may have. Or, if you prefer, you can call me at 770-875-4268

Discover how other sellers successfully completed a short sale and request a free consultation by clicking here.

Thinking about a loan modification? Our Powder Springs loan modification kit has the instructions you will need to get a loan modification approved with your bank. Click here to request a copy.

Thanks for reading this, Bion Grady.

Bion is a Real Estate Agent at Maximum One Realty Greater Atlanta. Powder Springs Short Sales Realtor:

Phone: 770-875-4268. bion@bionsellshomes.com.

A Better Solution

View My homes for sale at www.bionsellshomes.com.

Bion Grady specializes in loan modification assistance and short sales in Powder Springs Georgia. Powder Springs Loan Modification Help, Powder Springs Short Sales. Powder Springs Short Sale Realtor , Short Sale Realtor. Powder Springs GA Short Sales. Powder Springs Realtor.

Copyright 2010 SFI Marketing Institute, LLC. All Rights Reserved. This is not intended as legal, technical, or tax advice. Please speak with a licensed professional before making any decision. Information is deemed reliable but not guaranteed as of the date of writing. The views expressed here are Bion Grady's personal views and do not reflect the views of Maximum One Realty Greater Atlanta.

This information on Powder Springs Short Sales: Loan Modifications can be a recipe for disaster is provided as a courtesy to our viewers to help them make informed decisions.
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Renters Trashed my house. What should I do?

Posted by Bion Grady on December 16, 2010 at 2:18am


The Stop Foreclosure Institute recently received a question from Richard. “I accepted a job transfer and had to move. Unfortunately we were upside down on the house.

I decided to rent it out rather than short sale it. The renters just moved out. I just checked the house. They trashed it!

I could rent the house out again, but I would have to spend several thousand dollars fixing it up first. What would you recommend that I do?” Richard asked.

Discover how other sellers successfully did a short sale to avoid foreclosure by clicking here.

Here was our recommendation. That is a tough situation. You could fix up the house and rent it out again. But, you risk having the same thing happen all over again.

Here is the other problem. The amount you can charge for rent has gone down in most areas. This means you will probably have to write a check every month.

If you are able to rent it and cover all the costs, then I would recommend you keep the home. If not, then I would recommend you short sell it.

Here is why I recommend that. If you can break even, then the house will be a good investment as the real estate market recovers. However, you will always risk large unexpected costs like the one you are experiencing right now.

If it the rent does not cover all the costs, then more than likely you are in an area where the housing prices are still dropping. This means the burden will only get bigger as time progresses.

Costs will keep on going up. Rent might drop even more. The housing market could decline even further. It would be better to just get rid of the liability now, once and for all.

Thinking about a short sale? I can help you short sale your property and never pay the bank another penny. Send me an e-mail at bion@bionsellshomes.com. I will contact you for a free consultation.

When we talk, I will explain how the process works in detail and answer any questions you may have. Or, if you prefer, you can call me at 770-875-4268

Discover how other sellers successfully completed a short sale and request a free consultation by clicking here.

Thinking about a loan modification? Our Powder Springs loan modification kit has the instructions you will need to get a loan modification approved with your bank. Click here to request a copy.

Thanks for reading this, Bion Grady.

Bion is a Real Estate Agent at Maximum One Realty Greater Atlanta. Powder Springs Short Sales Realtor:

Phone: 770-875-4268. bion@bionsellshomes.com.

A Better Solution

View My homes for sale at www.bionsellshomes.com.

Bion Grady specializes in loan modification assistance and short sales in Powder Springs Georgia. Powder Springs Loan Modification Help, Powder Springs Short Sales. Powder Springs Short Sale Realtor Short Sale Realtor. Powder Springs GA Short Sales. Powder Springs Realtor.

Copyright 2010 SFI Marketing Institute, LLC. All Rights Reserved. This is not intended as legal, technical, or tax advice. Please speak with a licensed professional before making any decision. Information is deemed reliable but not guaranteed as of the date of writing. The views expressed here are Bion Grady's personal views and do not reflect the views of Maximum One Realty Greater Atlanta.

This information on Powder Springs Short Sales: Renters trashed my house. What should I do? is provided as a courtesy to our viewers to help them make informed decisions.
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Can I buy again right after a Short Sale? You Decide

Posted by Bion Grady on December 15, 2010 at 7:48am


We get this question a lot from people. “I am upside down and need to move. I would like to buy another home. Can I do that?” they ask us.

Today they can. FHA (the Federal Housing Administration) has a new program that enables you to short sale your existing home and buy a new home at today’s reduced prices.

Discover how other sellers successfully did a short sale to avoid foreclosure by clicking here.

The home you purchase would have to meet FHA’s standard lending guidelines. FHA is a great mortgage program.

In fact, more people buying a home in today’s market are getting an FHA loan.

Here is what you would need to do to participate in the program:

1. Determine if you qualify to participate in the program. We have been told that you will need the following.

(Guidelines can change at any time, so make sure you check them with a Mortgage Professional familiar with the program.)

A. A 640 FICO credit score or better.

B. You must be current on all installment payments and your mortgage.

C. No bankruptcy or foreclosure on your credit in the last 7 years.

D. The home you are purchasing must be inferior to the one you are selling. I don’t know the exact guidelines, but I think it means it is a smaller home, or it has less bedrooms or a lower price.

E. You will need the 3.5% down payment for the new purchase.

2. Continue making your mortgage payments each month.

3. Talk to a Mortgage Professional and fill out FHA’s Short Sale and Buy Application.

4. Get pre-approved for your next home loan.

5. Put your home on the market with a licensed short sale realtor.

6. Once the short sale is approved, then you can start looking at other homes.

7. Close on selling your home and on purchasing the new property.

Thinking about a short sale? I can help you short sale your property and never pay the bank another penny. Send me an e-mail at bion@bionsellshomes.com. I will contact you for a free consultation.

When we talk, I will explain how the process works in detail and answer any questions you may have. Or, if you prefer, you can call me at 770-875-4268

Discover how other sellers successfully completed a short sale and request a free consultation by clicking here.

Thinking about a loan modification? Our Powder Springs loan modification kit has the instructions you will need to get a loan modification approved with your bank. Click here to request a copy.

Thanks for reading this, Bion Grady.

Bion is a Real Estate Agent at Maximum One Realty Greater Atlanta. Powder Springs Short Sales Realtor:

Phone: 770-875-4268. bion@bionsellshomes.com.

A Better Solution

View My homes for sale at www.bionsellshomes.com.

Bion Grady specializes in loan modification assistance and short sales in Powder Springs Georgia. Powder Springs Loan Modification Help, Powder Springs Short Sales. Powder Springs Short Sale Realtor Short Sale Realtor. Powder Springs GA Short Sales. Powder Springs Realtor.

Copyright 2010 SFI Marketing Institute, LLC. All Rights Reserved. This is not intended as legal, technical, or tax advice. Please speak with a licensed professional before making any decision. Information is deemed reliable but not guaranteed as of the date of writing. The views expressed here are Bion Grady's personal views and do not reflect the views of Maximum One Realty Greater Atlanta. This information on Powder Springs Short Sales: Can I buy again right after a Short Sale? You Decide is provided as a courtesy to our viewers to help them make informed decisions.
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My Realtor hasn't talked to me about a Short Sale & I'm not even getting a showing. I think I might be upside down. What do I do

Posted by Bion Grady on December 13, 2010 at 6:24am


The Stop Foreclosure Institute recently received a question from Jennifer. She is having a hard time selling her home.

“I have had my house for sale for a little while, but it hasn’t sold. No buyers have come to look at it. At first I thought the price was fair. But, now that no one has come to see the home, I am beginning to realize that I am upside down.

My realtor hasn’t talked to me about a short sale. What should I do?” Jennifer asked.

Discover how other sellers successfully did a short sale to avoid foreclosure by clicking here.

Here is what I would recommend to her. First, talk to your current agent about a short sale. The might be uncomfortable with bringing it up.

Short sales are a sensitive issue. Some people get offended when you ask them about a short sale. It doesn’t look like that is the case with you.

Tell your agent that you think you might be upside down. Ask them what they think they can realistically sell the house for in today’s market.
The
n, ask them for a “Net Sheet.” This is a sheet that details all of the costs and fees associated with selling a home.

The fees and costs are subtracted from the sales price to give you the net amount you will receive from the sale. Compare that number with your mortgage payoff.

If it is less than what you owe your lender, then you will need to consider a short sale. Ask your agent if they can handle your short sale.

If not, then you may need to hire someone else. Short sales are a lot more complex than a normal real estate transaction.

Make sure the person you interview has closed short sales in the past and knows what they are doing.

Ask them how the short sale process works. Have them explain it to you. This will help you determine if that person can do the job for you.

Thinking about a short sale? I can help you short sale your property and never pay the bank another penny. Send me an e-mail at bion@bionsellshomes.com. I will contact you for a free consultation.

When we talk, I will explain how the process works in detail. If you prefer, then you can call me at 770-875-4268.

Discover how other sellers successfully completed a short sale and request a free consultation by clicking here.

Thinking about a loan modification? Our Powder Springs Loan Modification Kit has the instructions you will need to get a loan modification approved with your lender. Click here to request a copy.

Thanks for reading this, Bion Grady.

Bion is a Real Estate Agent at Maximum One Realty Greater Atlanta.Phone: 770-875-4268. bion@bionsellshomes.com.

A Better Solution

View My homes for sale at www.bionsellshomes.com.

Bion Grady specializes in loan modification assistance and short sales in Powder Springs Georgia. Powder Springs Loan Modification Help, Powder Springs Short Sales. Powder Springs Short Sale Realtor Short Sale Realtor. Powder Springs GA Short Sales. Powder Springs Realtor.

Copyright 2010 SFI Marketing Institute, LLC. All Rights Reserved. This is not intended as legal, technical, or tax advice. Please speak with a licensed professional before making any decision. Information is deemed reliable but not guaranteed as of the date of writing. The views expressed here are Bion Grady's personal views and do not reflect the views of Maximum One Realty Greater Atlanta. This information on My Realtor hasn't talked to me about a Short Sale & I'm not even getting a showing. I think I might be upside down. What do I do is provided as a courtesy to our viewers to help them make informed decisions.
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