The "Loan Xperts" Blog

FORECLOSURE UPDATE

It has been said that we are living in "historic times." Well, that might be an understatement! CNN/Money had an excellent report out recently on the foreclosure numbers from the last quarter. Over the past three months, foreclosures hit a record high! One real estate pundit even described it as "The worst three months of all time." (Not for Short Sale investors it's not!)

Check out some of these absolutely INSANE numbers....

During the last quarter, 937,840 homes received a foreclosure letter -- whether a default notice, auction notice or bank repossession, the RealtyTrac report said. That means one in every 136 U.S. homes were in foreclosure, which is a 5% increase from the second quarter and a 23% jump over the third quarter of 2008.

Nevada continued to be the worst-hit state with one filing for every 23 households. But even tranquil Vermont, where the foreclosure crisis has barely brushed the housing market, saw foreclosure filings jump nearly 170% compared with the third quarter of 2008. Still, that resulted in just one filing for every 5,023 households in the state -- the best record in the country.

The RealtyTrac report also unveiled the results for September, and it found that there was slight relief from foreclosure filings. Last month, notices totaled 343,638, down 4% compared with August. Unfortunately, that total accounts for 87,821 homes that were repossessed by lenders.

That deluge contributed significantly to the quarter's record 237,052 repossessions, a 21% jump from the previous three months. So far this year lenders have taken back 623,852 homes.

The Worst Thing to do is Nothing!

Unfortunately, many people facing foreclosure simply do nothing and hope for a miracle. Some homeowners seek advice from a lawyer and act on their advice and file bankruptcy thinking that all their problems are now solved. Bankruptcy does put a hold on everything, yes, but all it buys you is a little time. The end result is almost always the property still goes to auction and you now have a bankruptcy in addition to the foreclosure on your credit report!

Consider a Short Sale When Foreclosure Seems Inevitable

A short sale is a popular option for homeowners mired down with financial problems. In this case, you would sell your home for less than what you owe your lender; Experts advise pursuing this course of action the minute you realize that keeping your home is no longer a viable option. The longer you wait and the greater the amount you are in arrears, the less likely it becomes that your lender will even be willing to entertain a short sale. Simply stated, do everything you can before foreclosure occurs and do it as quickly as humanly possible. Don’t sit back and keep thinking, “What can I do?” Instead, consider that short sale and consult with an expert before its too late!

Loss Mitigation Specialists you can Trust!

The beauty of short sales is that they can be a win-win-win situation for seller, buyer and lender. Here's how: The seller gets out of the mortgage liability without facing bankruptcy or foreclosure. The buyer gets the home at a reduced price. The lender agrees to a loss it considers minimal without going through a foreclosure and being saddled with an unsalable property.

The One Best Tip We Can Give You: Don’t Do This Alone . . . Having someone who could work on your behalf is an incredible advantage when negotiating with your lender. Our office specializes in helping homeowners avoid the lasting scars caused by a foreclosure. We have a staff experienced in lender negotiations, as well as relationships with Realtors who specialize in Short Sale transactions and understand the complexities and urgency of these transactions.

In most cases our fee and the Realtors commission is paid by your lender and/or buyer. You will have no out-of-pocket expense with a short sale transaction negotiated by our staff! So if you are one of the unfortunate home owners facing foreclosure, the best advice we can give you is to ACT NOW! Call the experts at First American Financial today at (800) 252-2780 for a free no-obligation consultation

Statement from SBA Acting Administrator on Recovery Efforts Announced by President Obama Today

American Recovery and Reinvestment Act of 2009

As part of the American Recovery and Reinvestment Act of 2009, signed by President Obama on February 17th, the Small Business Administration has been allocated $730 million intended to fund fee reduction, program policy changes and new loan programs that will collectively help to provide immediate financing assistance to small business owners. While the program and policy procedures have not yet been finalized by the agency, the following incentives were announced:

1. $375 million for temporary fee reductions or eliminations on SBA loans for the 7(a) Guaranty and 504 Loan Programs, as well as an increased SBA- loan guaranteed percentage up to 90% for certain loans

2. $255 million for a new SBA loan program which would provide up to $35,000 in guaranteed financing to help small businesses meet existing debt payments

3. $30 million for expanding the SBA Microloan Program through new lending and technical assistance grants to participating micro lenders

4. $20 million for technology systems to streamline SBA’s lending and oversight processes

5. $15 million to expand the SBA’s Surety Bond Guarantee Program

6. $25 million for increased staffing

7.  $10 million for the Office of Inspector General

The SBA is working quickly to develop the policies necessary to implement the provisions of this act. Our Commercial Division, First American Financial has relationships with several of the top direct SBA Lenders. If you are looking for capital to purchase or expand your business we welcome the opportunity to assist you with your financing requirements.

Save Our Home From Foreclosure, LLC (SOHFF) has a proven record of performance in assisting investors reduce or eliminate debt obligations with lenders. SOHFF has extensive relations with some 60 lenders nationwide.

Some detailed case studies include:

INVESTOR WALKS AWAY FROM $1,039,445 IN DEBT OBLIGATIONS

This investor had several high end properties. On one property, he owed $1,039,445 between two mortgages. The property was listed for sale for $1,059,000 and sold for $680,000 six months later. The first mortgage lien of $782,437 was negotiated and paid off for $617,559. While SOHFF could not guarantee it, the lender agreed to this settlement and did not seek a deficiency judgment. The second mortgage lien of $257,008 was settled for $15,564, with no deficiency judgment. The total debt exposure of $1,039,445 was settled for $15,564 through a short sale and negotiations. Looked at another way, after the short sale, the net exposure of $406,322 was eliminated for $15,564. Legal and SOHFF fees were $40,000.

INVESTOR SAVES $367,000 IN MORTGAGE OBLIGATIONS

This doctor invested in several townhomes. On one property alone he owed $367,000 to one lender. The property was listed for sale, and finally sold after 5 months for $122,000, with the bank netting $111,000. A satisfaction of debt was negotiated for the investor. Thus, a gross debt of $367,000, or net after the short sale of $245,000 was totally wiped out through negotiations, and settled without deficiency judgments from both lenders. Legal and SOHFF fees were $22,000.

INVESTOR SAVES $320,000 IN MORTGAGE DEBT EXPOSURE

This client owned several townhome properties. On one property, a total of $323,000 was owed, $223,000 to one bank, and $100,000 to another lender. The property was listed for sale at $529,000 and sold six months later for $250,000. The primary lien holder received $225,118 and the second lien holder received $ 3824, of which the investor paid $2824. In summary, a gross debt of $323,000, and net debt after short sale of $73,000 was eliminated for under $3000. While SOHFF cannot guarantee this result, there was no deficiency judgment by either lender. Legal and SOHFF fees were $7,000.

INVESTOR SAVES $236,420 IN MORTGAGE DEBT OBLIGATION

This investor owns several investment properties. On one property he owed $190,720 on a first lien and $47,540 on a second loan, for a total of $238,420. This property was listed for sale at $209,900 and sold for $176,000 some four months later. The bank in first position received $154,064, and the second lien holder received $3,000., of which the investor had to come up with $2,000. A gross debt exposure of $238,429 and net after short sale of $62,420 was wiped out for $2,000. In this case, neither bank will seek a deficiency payment as SOHFF was able to negotiate this away. Legal and SOHFF fees were $7,000.

If you are an investor with one or more properties and are seeking advice with your real estate portfolio, contact the professionals at Save Our Home From Foreclosure today! PH. 1-800-305-7121 Ext. 401 E-Mail Don@SOHFF.com

LEGAL STATEMENT

The information contained above is intended to be used for informational purposes only and to provide a general overview of the topics described herein. There may be tax and other legal consequences associated with a short sale. Save Our Home From Foreclosure, LLC makes no representations or warranties concerning potential tax or legal consequences relating to any final disposition of any property. Clients are advised to consult with a tax professional regarding the potential tax consequences for their particular situation. Save Our Home From Foreclosure, LLC is providing a service in response to a complex situation and offers a recommended solution where possible. Nothing is represented as tax advise to our clients as every situation may result in different tax consequences. Save Our Home From Foreclosure, LLC is not a law firm or an accounting firm and regarding any specific questions relative to any transaction, Save Our Home From Foreclosure, LLC strongly encourages all parties, agents, and brokers involved in a transaction to seek such advice from a professional advisor.

How To Ensure You Get The Best Mortgage Rate:

Are you planning on buying a new home or refinancing your existing home loan in the coming year? Are you worried about whether or not you will qualify for the best mortgage rate?

If you answered yes, then now is the time to make sure that your credit score, also called your FICO score, has an excellent rating.

All too often, people do not realize just how critical their credit score can be when applying for a loan. With Fannie Mae and Freddie Mac both utilizing risk based pricing models now, you’ll need a FICO score of 740 or better to have access to the lowest mortgage rates, whether purchasing or refinancing. In turn, these lower rates can save you up to hundreds of thousands of dollars over the life of the loan.

Even with a credit score of 680, which used to be the benchmark to assure the best rates, you will be assessed an adjustment that can increase the rate as much as a full percent. And with 30 year rates hovering around 4.75% that equates to a 20% penalty, which will increase your costs dramatically. In these days of tight credit, it may even be difficult to get a mortgage with a FICO score under 620!

So what steps should you take to improve your credit rating and FICO score?

First, get a free copy of your credit report from each of the three main credit bureaus by going to www.annualcreditreport.com. Review the report carefully, checking for any mistakes. If there is any incorrect information being reported, this will adversely affect your credit score.

Second, it is advisable to take the additional step of obtaining your credit score(s). The free credit report mentioned above does not include your FICO scores, so you may be required to pay additional for this service.

With your actual credit score in hand; you will be able to decide what measures you need to take to improve it. Often times the various credit scoring agencies will look at your report and offer their suggestions to improve your credit score. Furthermore, they offer services that will allow you to keep track of credit card fraud.

Third, there are some easy, but important steps that you should take with your credit cards and other consumer loans.

• Make every bill payment on time. Even one late payment will hurt your credit score.
• If you are behind in any bill payments, do your very best to catch up immediately. If you missed a payment in the past, then by being absolutely on time with your payments, your score will rebound quickly.
• Pay down your credit card balances. Credit card debt forms an important part of your credit score. Any balance on a credit card that is over 9% of your credit limit begins to lower your credit score. A balance that is a high percentage of a credit card limit will seriously affect your score.
• Do not close any credit cards, unless you are carrying over ten accounts. Closing a card can lower your score. If you have any cards that you do not use, then transfer the balances if you are able and reduce the balance to zero.

Taking these few simple steps now will assure that your credit score is in tip top shape when you apply for a new mortgage, or any other type of loan.

21 Credit Card Fraud Prevention Tips:

1. Keep an eye on your credit card every time you use it, and make sure you get it back as quickly as possible. Try not to let your credit card out of your sight whenever possible.

2. Be very careful to whom you give your credit card. Don't give out your account number over the phone unless you initiate the call and you know the company is reputable. Never give your credit card info out when you receive a phone call. (For example, if you're told there has been a 'computer problem' and the caller needs you to verify information.) Legitimate companies don't call you to ask for a credit card number over the phone.

3. Never respond to emails that request you provide your credit card info via email -- and don't ever respond to emails that ask you to go to a website to verify personal (and credit card) information. These are called 'phishing' scams.

4. Never provide your credit card information on a website that is not a secure site.

5. Sign your credit cards as soon as you receive them.

6. Shred all credit card applications you receive.

7. Don't write your PIN number on your credit card -- or have it anywhere near your credit card (in the event that your wallet gets stolen).

8. Never leave your credit cards or receipts lying around.

9. Shield your credit card number so that others around you can't copy it or capture it on a cell phone or other camera.

10. Keep a list in a secure place with all of your account numbers and expiration dates, as well as the phone number and address of each bank that has issued you a credit card. Keep this list updated each time you get a new credit card.

11. Only carry around credit cards that you absolutely need. Don't carry around extra credit cards that you rarely use.

12. Open credit card bills promptly and make sure there are no bogus charges. Treat your credit card bill like your checking account -- reconcile it monthly. Save your receipts so you can compare them with your monthly bills.

13. If you find any charges that you don't have a receipt for -- or that you don't recognize -- report these charges promptly (and in writing) to the credit card issuer.

14. Always void and destroy incorrect receipts.

15. Shred anything with your credit card number written on it.

16. Never sign a blank credit card receipt. Carefully draw a line through blank portions of the receipt where additional charges could be fraudulently added.

17. Carbon paper is rarely used these days, but if there is a carbon that is used in a credit card transaction, destroy it immediately.

18. Never write your credit card account number in a public place (such as on a postcard or so that it shows through the envelope payment window).

19. Ideally, it's a good idea to carry your credit cards separately from your wallet -- perhaps in a zippered compartment or a small pouch.

20. Never lend a credit card to anyone else.

21. If you move, notify your credit card issuers in advance of your change of address.

If you suspect credit card fraud:

If your credit cards are lost or stolen, contact the issuer(s) immediately.

Most credit card companies have toll-free numbers and 24-hour service to deal with these emergencies -- they are eager to avoid credit card fraud.

According to US law, once you have reported the loss or theft of your credit card, you have no more responsibility for unauthorized charges. Further, your maximum liability under federal US law is $50 per credit card -- and many credit card issuers will even waive that fee for good customers.

If you follow all these tips, it will go a long way in protecting you from credit card fraud

          Tips for Travelers This Holiday Season

Number 1:
Anytime you travel you should make photo copies of all of your credit cards airline tickets and documents, both front and back. You should leave these photocopies with a friend, and had a copy of these Xeroxes in your luggage. That way if you ever lose a credit card you can get it canceled right away. The majority of problems with the cancellation of credit cards occur when you travel internationally. Many travelers forget who the credit card is with, it's then many wasted hours calling United States and trying to find out which bank or institution the credit card was with. That's where the photocopies come in handy.

Number 2:
If you travel with someone, especially a husband or wife, I would make sure you travel with individual credit cards in separate names. The reason for this is simple. Many families have one credit card issued to them. Many families have one credit card account number one have individual cards issued to each person. The problem with this is if one person were lose their credit card, the others person's credit card would be canceled also, and you would have to wait until card was sent to you and three to five days. By each traveler having his or her own separate credit card, if one was lost, you could survive on the other credit card for a few days until the other is replaced.

Number 3:
Automatic Credit card deactivation can spoil a vacation. Some banks and credit unions cut off credit cards that are used 6 or more times in one day, to try and stop thieves from using stolen cards. If this happens to you overseas, you may find it difficult or impossible to have your card reactivated. Before going on an overseas trip on which you will use your credit cards, notify your credit card companies that you will be away overseas. This will let then know that your card has not been compromised.

Number 4:
You always read tips about making photocopies of your credit cards when traveling and placing these copies in the bottom of your luggage. This tips is given by individuals in the proper spirit, however this can actually put you at greater risk of experiencing credit card fraud. Anyone who winds up with your luggage will have access to your credit card numbers and expiration dates. Anyone rifling your suitcases can take the copies or make copies of your copies for their use, ordering merchandise via the telephone.

Instead, if you want to keep a copy of your credit card numbers, do so of the front and back so you have the phone numbers to call your bank if needed but most importantly, block out (making sure it cannot be read) or cut out the expiration dates and names on the face of the cards. This will make it harder if the copies fall into the wrong hands.
While your liability in stolen credit card cases is limited to $50/card, this can quickly add up if multiple cards are involved.

Number 5:
When traveling abroad and using a credit card, watch out for the conversion fee that many banks charge to convert charges in foreign currencies to dollars. As with traveler's check- some banks do and some banks don't charge a fee, generally 1% of the purchase amount. So if you have several cards, it's worth checking with the issuers to see which one offers the best deal on foreign currency con- version. Then weigh this against other factors. Note: The conversion fee is not included in the legally required disclosure box that appears in credit-card promotional material. Even with the conversion charge, many times ATM machines will have the best possible exchange rates and the lowest fees.

Important:
Have your PIN number converted to four digits before departing on a trip, as most foreign ATMs will not respond to six-digit PINS.

Many foreign ATMs only accept four-digit PIN numbers. If your PIN is longer, check with your financial institution about changing it before you leave the country. Sometimes it's as simple as going to your own bank's ATM and changing it yourself.

Apart from ATMs, the best locations for exchanging U.S. into foreign currency are banks, the biggest ones you can find. They offer fairly decent rates and low fees, and do much better for you than the commercial money-changing kiosks and storefront establishments. Never use the latter.

Credit Card Fraud: 21 Tips to Protect Yourself

Although credit card fraud is certainly on the rise -- and credit card fraud on the Internet is rising even more dramatically -- many savvy Internet shoppers know that the reality is that it's actually much safer to enter your credit card number on a secure online order form than it is to give your credit card to a waiter at a restaurant.

After all, what's to stop the waiter from writing down your credit card number and placing orders on the phone with it later?

And research shows that the rate of fraudulent purchases made by cell phones is much higher than credit card fraud on the Net.

Nevertheless, we encourage you to take precautions when giving out any confidential information (including your credit card number) over the Internet, over the phone... or anywhere else for that matter!

Always use common sense -- it is the best rule of thumb.

Nonetheless, we are sharing 21 tips to protect yourself from credit card fraud -- which you'll find below.

Internet ScamBusters' 21 Credit Card Fraud Prevention Tips:

1. Keep an eye on your credit card every time you use it, and make sure you get it back as quickly as possible. Try not to let your credit card out of your sight whenever possible.

2. Be very careful to whom you give your credit card. Don't give out your account number over the phone unless you initiate the call and you know the company is reputable. Never give your credit card info out when you receive a phone call. (For example, if you're told there has been a 'computer problem' and the caller needs you to verify information.) Legitimate companies don't call you to ask for a credit card number over the phone.

3. Never respond to emails that request you provide your credit card info via email -- and don't ever respond to emails that ask you to go to a website to verify personal (and credit card) information. These are called 'phishing' scams.

4. Never provide your credit card information on a website that is not a secure site.

5. Sign your credit cards as soon as you receive them.

6. Shred all credit card applications you receive.

7. Don't write your PIN number on your credit card -- or have it anywhere near your credit card (in the event that your wallet gets stolen).

8. Never leave your credit cards or receipts lying around.

9. Shield your credit card number so that others around you can't copy it or capture it on a cell phone or other camera.

10. Keep a list in a secure place with all of your account numbers and expiration dates, as well as the phone number and address of each bank that has issued you a credit card. Keep this list updated each time you get a new credit card.

11. Only carry around credit cards that you absolutely need. Don't carry around extra credit cards that you rarely use.

12. Open credit card bills promptly and make sure there are no bogus charges. Treat your credit card bill like your checking account -- reconcile it monthly. Save your receipts so you can compare them with your monthly bills.

13. If you find any charges that you don't have a receipt for -- or that you don't recognize -- report these charges promptly (and in writing) to the credit card issuer.

14. Always void and destroy incorrect receipts.

15. Shred anything with your credit card number written on it.

16. Never sign a blank credit card receipt. Carefully draw a line through blank portions of the receipt where additional charges could be fraudulently added.

17. Carbon paper is rarely used these days, but if there is a carbon that is used in a credit card transaction, destroy it immediately.

18. Never write your credit card account number in a public place (such as on a postcard or so that it shows through the envelope payment window).

19. Ideally, it's a good idea to carry your credit cards separately from your wallet -- perhaps in a zippered compartment or a small pouch.

20. Never lend a credit card to anyone else.

21. If you move, notify your credit card issuers in advance of your change of address.

If you suspect credit card fraud:

If your credit cards are lost or stolen, contact the issuer(s) immediately.

Most credit card companies have toll-free numbers and 24-hour service to deal with these emergencies -- they are eager to avoid credit card fraud.

According to US law, once you have reported the loss or theft of your credit card, you have no more responsibility for unauthorized charges. Further, your maximum liability under federal US law is $50 per credit card -- and many credit card issuers will even waive that fee for good customers. 

If you follow all these tips, it will go a long way in protecting you from credit card fraud.