The Banks are Profiting Handsomely

The banks are profiting handsomely from the short sale losses.  Maybe that's why it is so difficult to get a California loan modification approval.  See the video, below.  It is shocking!!!

Prevent Foreclosure: Take the emotion out of your decision making

Do you want a nice house?

If you notice, I didn't ask if you want to keep your current property. Often it is easier (more practical and economical) to sell the current property and purchase a different one at a lower price. In this economy, you can probably get the same quality or better because prices have dropped a lot.

OK, OK, now I will ask the question…..

Do you want to keep your current property?

Obviously, the decision of whether to keep your current property or not has immediate importance. When you examine your circumstances and the possible solutions, it is recommended you consider this solution in conjunction with your alternatives. If available solutions allow you to afford your current property, then great, you just hit a home run.  However, if the cost requires you get a second job or you need to scrimp and save everywhere else in your life, then go for it IF that scenario is best for you and your family.

However, if keeping your current property means being forced onto a diet of Top Ramen Noodles or instant macaroni and cheese; if it means you won't be able to afford vacations, auto repairs or clothes for the family, maybe you should take a closer look at other alternatives.

“I spoke with one gentleman who wanted to keep his home of 2 years that was worth less than 70% of what he owed the bank. To make matters worse, his job changed and he had a 60-mile commute (one-way) through urban traffic to his new job. The family had become very “attached” to the house because it was new and they spent a lot of time and money customizing it.”

What do you think he should do in this situation? 

Clearly, he would be better off financially if he sold the property through a short sale. But, should he base his decision on his finances or on his emotions?  What would you do?  Would you keep it or sell it?

p8 Loan Mods, Why short sale may be a better option for you

Do you have your copy?

3 Things you must consider before taking a mortgage loan (By Samantha Taylor)

Everyone dreams of buying their own homes, probably so do you. However, if you lack the financial resources to purchase it, then mortgage loans can help you. Mortgage or home loan is a loan that you may take to pay for your house and the land that it is on. If you do not make the payments towards the mortgage, then you may lose your house. You can use a mortgage calculator to determine whether or not, you will be able to afford a particular mortgage. Thus; mortgage becomes a very important part of buying your home.
You must consider the following factors before buying a mortgage.
1. Principal: The principal is the amount that you are borrowing. This amount is not equal to the price of your house. The principal is the price of your house after the down payment that you make has been deducted. When you go around from bank to bank, they will tell you how much you can get, based on your income and credit score.
2. The type of mortgage: Mortgages are of two types-fixed interest rate and adjustable interest rate. In case of fixed interest rate you pay a fixed amount every month as long as you are paying for the loan. In case of adjustable interest rate mortgages there is an initial lower interest rate but the rates change with the changes in the market. The fixed interest rate mortgages have a lower risk involved but have a higher interest rate. On the other hand adjustable interest rate mortgages are market determined and there is always the risk of payments increasing.
3. Interest rate: This is the money that you pay to your lender, for using his money. The rate of interest adds to the principal amount to become the total amount you owe. The best way to find out the overall cost of the loan is to see its annual percentage rate. The annual percentage rate is the interest rate and the other costs related to the loan.
You should consider these but you should also remember that you can use a mortgage loan calculator to choose the mortgage loan that suits you best. 

Residential Foreclosures Down in California for first half of year

Residential foreclosures in California in the first half of 2010 were down 5% from the last six months in 2009. However, the only reason this happened was because lenders were approving short sales.  That is, allowing the homeowner to sell the house for less than the amount of mortgage owed.

Residential Foreclosures Down in First Half but Only Because Lenders OK Short Sales - Real Estate Channel Global News Center

Foreclosure filings were reported on 313,841 U.S. properties in June, a decrease of nearly 3 percent from the previous month and a decrease of nearly 7 percent from June 2009.

States with foreclosure rates ranking among the nation's 10 highest were California (2.54 percent), Utah (1.91 percent), Georgia (1.79 percent), Michigan (1.73 percent), Idaho (1.68 percent), Illinois (1.61 percent), and Colorado (1.40 percent).

340,740 California properties received a foreclosure filing in the first half of 2010, the nation's highest total but down 15 percent from the previous six months and down nearly 13 percent from the first six months of 2009.

Unfortunately, June was the 16th straight month where the total number of properties with foreclosure filings exceeded 300,000.

"That means the housing industry as a whole remains fragile", says RealtyTrac CEO James J. Saccacio.

The figures are in themselves alarming and the cost to homeowners is not just noted in terms of money, but stress (for themselves and their families) and given the state of the economy and a lack of true job growth at present, I don't feel we have seen the last of the problems yet.

Record Number Of Foreclosure Sales Cancelled Due To HAFA…Short Sales

Researchers at Foreclosure Radar received a range of reasons as to why the cancellations are up. Foreclosure sales can be canceled for successful loan modifications, short sales, a legal requirement, or even a filing error. However, the best answer came from one unnamed REO professional. According to the source, the Home Affordable Foreclosure Alternatives (HAFA) program had the most to do with the cancellations.

Record Number Of Foreclosure Sales Cancelled Due To HAFA…Short Sales

Lenders canceled nearly 22,000 California foreclosure sales in June, driven mostly by JPMorgan Chase (JPM: 40.48 +3.29%). It’s a 27% increase from May, a 153% growth from a year ago, and an all-time high, according to ForeclosureRadar, which tracks foreclosures in the state.