http://realestatemarketingthisweek.com – Real Estate Marketing – Foreclosure rates on Forbearance Agreements done with banks reaches 58% – With Michael J Barnes and Dan Havey of Real Estate Marketing This Week

Part 3 – In studio with us today on this fine New years eve is Dan Havey, the co founder of the modification hotline as well as the author of The Foreclosure Sharks a great white paper he put together. He is also the author of Real Estates Future and this segment we are talking about loan modifications and some specific information.

You also have a great story to tell about this to. Well unfortunately I have too many stories about people who have had to go through foreclosures, bankruptcies, loan modifications. The one story I want to talk about real quick is a friend of mine who unbeknownst to me went out and did a loan modification on her own and not to get into a whole bunch of technical details on it she ended up getting a pretty decent interest rate because they actually cut her mortgage payment in half and she was pretty happy about that.

She owed a little bit more than the house was worth, she wasnt terribly upside down, but by the time they got done with her she certainly was going to be because the modification, and actually I should not call it a modification, I should call it a forbearance agreement, what they did to her was to say, OK we will cut your interest rate in half, we will cut your monthly payment in half, but we will take all of that deferred interest and tack it onto the back end of the loan. So that by the time her interest rate went back to where it had been, it was going to adjust up over the next five years, so that within that five year time period she was actually going to owe $60,000 in back interest on top of the principal balance that she had before she went to go talk to her bank.

What kind of a deal is that? I didnt think it was a very good one and she ended up eventually not taking it and just recently let the house go back to the bank, because she just looked at it and said, Wait a second here, I am already $20,000 upside down, by the time Im done with you guys I will be $80,000 upside down and so great I get a cheaper payment for a while. She moved into a rental property that was even cheaper then what she would have had to pay to stay in the house and from what she tells me the house is nicer.

Some of the unfortunate scenarios that come up that we get to see. Unfortunately we talk to lots of people that have similar situations, trying to do these on their own and it is possible to do a loan modification on your own. We know that, the program is designed for you to do that. The problem is it generally does not work out.

The re-default rate on loan modifications done on your own is significantly higher than loan modifications facilitated by an attorney that is representing you, for a number of reasons. Number one you have to pay an attorney to represent you. The other is that I think you are going to get a better modification based its not just a negotiation between you and the loss mitigation department for the bank. We are talking about using a professional attorney who is a trained negotiator to negotiate on your behalf with another attorney. By the way, theyre not talking to the same loss mitigation people in India that you may be talking too.

Here are some numbers that just came out from John Dugan who is the Office of the Comptroller of the Currency and they did a study of the loan modifications that have been done to date. In many cases these were forbearance agreements, not loan modifications. If an individual talks to his bank, generally speaking he will not get the same as result as what an attorney would do, so most of these are really forbearance agreements. And in that case, 36% had defaulted or were 30 days past due after 6 months and 58% were in default after 8 months. Again that is 58% in default after eight months and I saw some numbers the other day and unfortunately I didnt bring them in with me today, that according to some study of the very few modifications that have been done using an attorney, I say very few, but it is still thousands or tens of thousands, but few compared to what is getting done directly with the bank, the number is only like 5% of the ones done with an attorney have re-defaulted and again I dont have the numbers with me so I cant site the source… http://realestatemarketingthisweek.com/foreclosure-rates-on-forbearance-agreements-reaches-58/

Duration : 0:5:47

(more…)

Technorati Tags: agreement, attorney, avoid, bailout, bank, Bank Foreclosure, bankruptcy, dan havey, Debt, expert, forbearance, forbearance agreement, foreclosure, fraud, government, government foreclosure, home, insolvent, lender, loan, loan modification, loss mitigation, meltdown, modification, mortgage, Mortgage Foreclosure, real estate, real estate foreclosure, real estate marketing, rescission, rescue, scam, short sale, stop, stop foreclosure, tax, Taxes, this week

Details here http://studentloans-withoutcosigner.com you can find all site about loan information here http://studentloans-withoutcosigner.com/about and loan consolidation here http://prayover.net/

Duration : 0:5:19

(more…)

Technorati Tags: 1099c, advice, attorney, bailout, bank, bankruptcy, cancellation of debt, CPA, debt relief act, expert, foreclosure, government, home, income, insolvency, IRS, lender, loan, loan modification, loss mitigation, modification, mortgage, mortgage forgiveness, on, real estate, recourse, sale, short, short sale, tax, Taxes

http://realestatemarketingthisweek.com –
Real Estate Marketing – Mortgage Forgiveness Debt Relief Act of 2007, one exception to paying cancellation of debt income – Produced by Dan Havey of Real Estate Marketing This Week

Part 5 – Welcome back to the Velocity of Money I am Michael J. Barnes Arizona’s and I’m with Velocity Financial and were here every week talking about all matters financial, regarding real estate as well as finances. Brett Fallon is back on the air with us again along with Mike Patenella who is a certified public accountant for the last 20 years and amazing brain, were glad he’s back on.

Mike we were talking before the break about loan modifications, my point before going off the air was that people think they’re going to get this huge amount of money waived on a loan that they have, realistically what most loan modifications are going to look like is extended term, significantly lower interest rate, generally a fixed interest rate for the entire time, and in some cases they will do some principal reduction, and there is some exclusions for people having to pay tax on that, is that correct?

Yes, there is, before I get into that keep in mind that with taxes normally not one rule applies to everybody, were going to talk general but everyone’s going to have their own specific situation, that they’re going to have to really check with somebody and make sure they’re doing the right thing. In 2007 in response to the economic situation, they passed a mortgage forgiveness debt relief act which essentially allows people to not pay tax on $2 million dollars debt forgiven on their principal residence. Thats in regard to be principal reduction, loan modification.

Right, so in your example if $50,000 of your loan is being reduced, if your situation fits, under this new law, we might be able get you to avoid the tax on that.

Once again a very good reason for you to go to a professional CPA like yourself for that help, not something the average person is going to be able to figure out on their own. You have to keep up on the tax law and that’s almost a full-time job.

Hey how many pages is that tax code now? On last count I heard you say it was something like 9000 pages.

I don’t know the exact number of pages I know it’s in the several thousand and as Mike knows quite well, and I am aware of also is the tax code has been morphing and changing more than I have ever seen in my entire career here recently. Going back to the tax act of 2003 to the present there have been literally hundreds of changes. So for the average person whos listening to this broadcast who is considering a loan modification, trying to take care of a portfolio, and take care of their taxes at the same time, WOW! Good luck to you

So exclusions to the income, can we talk about a few different ones?

Sure bankruptcy is one exclusion, if you’re filing bankruptcy; the other one is if the taxpayer is insolvent which essentially means that their liabilities exceed their assets. When you factor in assets you factor in retirement accounts and all that, its not that easy to fall under that one.

Oh so the value of my 401(k) goes into that on the other side of the balance sheet. So for the most part if you dont fall into one of these two youre going to try to rely on this new tax law to exclude some of the debt forgiven.

How long ago was that past? I am sorry I don’t remember, was that August of 2007? It’s called the mortgage forgiveness debt relief act of 2007 and it only applies to qualified principal residences. Is that ongoing? Is there a cap on the time?

Well originally it was set to expire at the end of 09. Then in 2008, since the economy kept getting worse they extended that another three years or so through 2012

Well we hope were all well through of this mess sooner and we won’t have to need this any longer after 2009. Actually I want it gone now… http://realestatemarketingthisweek.com/mortgage-forgiveness-debt-relief-act-exception-to-cancellation-of-debt-income/

Duration : 0:6:20

(more…)

Technorati Tags: 1099c, advice, bankruptcy, cancellation of debt, CPA, dan havey, debt relief act, expert, foreclosure, income, IRS, loan, loan modification, loss mitigation, modification, mortgage, mortgage forgiveness, on, real estate, real estate marketing, recourse, sale, short, short sale, tax, Taxes, this week

http://HowToSaveMyFamilysHome.com Shows you how to save between 30-50% on your mortgage interest and get your bank to give you a mortgage payment that you can actually afford. Works even if you’re not currently behind on your mortgage! 30,000,000 homeowners are eligible and don’t even know it!

Duration : 0:9:36

(more…)

Technorati Tags: banks, foreclose, foreclosure, home loan, lenders, loan modification, mortgage, real estate, save home

http://www.payday.freemoviesblog.info/ Loan guaranteed no fax payday loans mortgage loan modification instant faxless payday loans payday loans with no faxing no fax instant payday loans faxless payday loans online no fax payday loans online college students in debt causes of homelessness on student financial aid foreclosure short sale real estate marketing cancellation of debt mortgage forgiveness loan modification bailout for students faxless payday loans federal student aid us college students no fax payday loans after repair value to student loan scam lender short sale college financing modification debt relief act personal finance money management loss mitigation hard money loans bank short sale mortgage short-refinance foreclosure rehab property art financial aid loan interest college funds Tavarra Jones student loans loan bankruptcy student loan real estate relationship signature short sale dan havey this week countrywide alternative negotiation corporation mitigation government loans sallie mae no comedytime short-refi assistance specialist prevention consultant negotiator pittsburgh management department

Duration : 0:0:28

loan-with-no-income-how-to-get-a-loan-with-no-job-2#more-469″ class=”more-link”>(more…)

Technorati Tags: cancellation of debt, causes of homelessness, college students in debt, fast cash loan guaranteed, faxless payday loans online, foreclosure short sale, instant faxless payday loans, loan modification, mortgage forgiveness, mortgage loan modification, no fax instant payday loans, no fax payday loans online, payday loans with no faxing, PaydayLoan, real estate marketing, student financial aid