Happy Valentine’s Day Everyone the facts about loan modifications!!
Today is a great day to tell anyone and everyone you see and know Happy Valentine’s Day. Many of the Sellers that are upside down on their home are stressed out and don’t know what to do. First off, I want all Sellers to know that when they got a loan from the bank their money was given to the bank from an investor. This investor could be a trust, reit, or maybe the government. The bank guaranteed the investor or group of investors a set interest rate. Many Sellers are attempting a loan modification hoping to keep their house. I always ask my Sellers if could wave my wand what do you want from the bank. Most of them will answer that they want the bank to reduce their balance on their loan or they want a certain amount for their monthly payment. Here are some facts I want to share this Valentine’s Day with the Sellers:
1. During a loan modification the bank is still continuing with the foreclosure.
2. I have not spoken with a Seller yet that got a reduction in the value of their home on a homesteaded property and I have done over 500 short sales.
3. The monthly payment the Seller wants makes no sense. They are not considering how much their taxes and insurance is on the property nor are they considering the interest that will be charged for the loan amount. Example: Seller owes $300,00,000 on the loan at 4% for 30 years is $1,432.25 – Yearly Taxes are $3,000 per year $250.00 a month – Insurance is $1,500 per year – $125.00 per month – Total monthly payment NOT INCLUDING HOA (homeowners association dues) would be $1,807.25. Many Sellers want a lower payment than this amount because they can’t afford it.
4. I have only seen the bank take the monthly payments that they are behind plus interest, late fees and attorney fees and add it to the end of the mortgage and/or change it to a 40 year mortgage. Which would make their monthly payment $1,253.82 on the loan plus taxes and insurance would be $1,628.82.
So on Valentine’s Day I just want to let all the Sellers going through this difficult time that your home is where your heart is and may God Bless you during this difficult time.
So should a Seller do a short sale? First you need a good negotiator working on your file. Benefits of a short sale:
1. The Forgiveness of Debt Act which expires on December 31, 2013 allows Sellers who own their properties as homestead to waive the tax ramifications should the bank forgive the debt. Up to 1 Million Dollars for a Single Individual and $2 Million Dollars for a married couple.
2. The Bank will report the short sale on their credit report as being settled for less.
3. The Sellers may receive some money to relocate.
4. The Sellers may not have to pay a cash contribution or a promissory note. Again this depends on your negotiator/realtor.
5. The Bank will not go after the Seller for the difference if you get a full satisfaction otherwise they have the right to collect on the Seller for up to 25 years.
6. The stress is gone and they have relocated into a bigger and better home most of the time.
I would recommend on this Valentine’s Day that a Seller give their family and themselves the gift of decision. Please read my Special Report on Foreclosure which talks about all your options. www.FreeFactsAboutForeclosure.com
Again your home is where your HEART IS and your family will go wherever you go.
May this Valentine’s Day you find peace.
Kimberlee Frank – Broker
Kimberlee Frank Broker Short Sale Expert
Kimberlee Frank is known as “The Real Estate Junkie,” for her unique ability to find ways to creatively help buyers and sellers no matter which direction the real estate market is heading. Kimberlee had already worked as a legal administrator for an Attorney, Builder and Broker for 18 years when she began her Real Estate career in 1998. She dotted the i’s and crossed the t’s on hundreds of real estate transactions and thousands of documents, making her an expert in real estate documentation. Kimberlee’s success began in Fenton, Michigan. She specialized in selling, purchasing, renovating, retailing and lease optioning single-family homes. She has helped many sellers get rid of their “headaches” and helped many buyers find their dream homes!
Since 2003, she has specialized in foreclosures and short sales. After realizing how many families were being forced out of their homes due to financial difficulties, Kimberlee had a heartfelt obligation to use her experience to help those families. She has mitigated and closed over 500 short sales with the mortgage companies, saving Sellers from going into foreclosure. In 2006, Kimberlee and her family moved to Florida. She lives in Oviedo and her Sell Fast Realty Office is in Winter Springs, serving residential and commercial sellers and buyers in multiple counties in Central and Southern Florida.
Kimberlee is also a Trainer and Mentor and has created several different “How To” systems on real estate. Her unique strategies continue to educate real estate professionals across the country. If you have a proven system to help others out of hardship, why wouldn’t you duplicate it and share it with as many people as you can? Kimberlee continues to work with this philosophy!
Kimberlee Frank has been featured on ABC, NBC, FOX, CBS as well as Wall Street Journal, Newsweek, USA Today and numerous other publications. She is the bestselling author of “Big Ideas for Your Business” (Advantage Media 2009). She was also selected as the #1 Short Sale Expert by America’s Premiers Experts.
Please contact Kimberlee at her office at 407-888-3433 to schedule a Free Facts About Foreclosure Seminar. She has numerous testimonials from sellers, buyers and other real estate professionals who are familiar with her giving heart. Whether it is 1 person in need or 1,000…..Kimberlee will educate them on real estate and give them a solution with a peace of mind!
Are you unsure what to do with your house? Do you need to educate yourself about your options. Click the following link Free Facts About Foreclosure for more information.
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