Richard, I bought your course and am in the process of going through it as I type this. I have a question regarding my personal mortgage situation. I have two mortgages, both with the same lender (Wachovia). I own the subject property, which is a primary residence, with a friend. He makes a modest, but consistent income while on the other hand, I have an extreme harsdhip concerning my finances. I am self employed and have not made much money at all lately. My friend cannot support the mortgages on his own. Is it worth trying for a loan modification and if so, will it adversely affect my friends credit? How do lenders look up on and deal with a situation like that??? Can you give me any insight? Thanks, Dave P.

Hi Dave, the lender will want to see both of your financial situations. It sounds like if you add them up, they won't be good enough in terms of debt to income ratios. With self employment, you will want to prepare a profit and loss statement that shows how much you actually pulled out of the business. Your friend I assume is employed at a job. But a modest income, plus very low self employment income, offset by debts that I presume you each have, probably isn't a pretty picture.

I would probably try for a short sale instead, and get out from under completely. On the other hand, there may be ways to get a loan mod. You never know until you submit an appropriate package to the lender. You can submit your information and say "this is how much we can afford," and who knows, maybe they will say "yes."

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–Richard

Richard, In your video about short sales you said that your people could help me with a short sale for a fee. You gave a telefone #, which I called several times, left messages but nobody called me back. I have a terminall cancer, and I do want to take care of my problem; I do not want anybody (my wife) to suffer consequences of my mistake. The property is in Florida, but I am on chemo treatment in California. I would like to use the services of your staff to do the short sale for my property in Florida, because in my condition I can not go there. Could you people do it? What would be the fees for it? My telephone: [deletetd]

Hi, Paul. I will pass your name along to a law firm I work with. I have total confidence in them. Jeff Bortnick, law office of Mark Bello, 248-948-1800.

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–Richard

I live in a resort town, own my own business in town and the internet. FYI.. We depend on southern Ca and Vegas to come to our city as a destination. Boating town. The city has felt this huge money crunch impact for over a year, Gas px's killed our summertime business. Boat town and with gas going to $5.00 a gallon. Well I am sure you see the picture. I have several questions? 1. I have a fixed interest only loan through Countrywide home loans, Bank of New york is the trustee.. I would like a loan Modification, I have never been late and have a fixed rate. They informed me @ ( Countrywide) that I do not qualify. will there be relief for these type of loan in the near future? 2. What strategically can I do before tower falls. Timing is everything. Help at the H LAKE… So far you information has been an eye opener, as I dig I find the next swamp. Thank you for all your help, it truly makes a difference. keep up the great work.. Heidi

Hi Heidi, great post. If you don't qualify, usually it is for one of two reasons. First, if you are paying on time, many lenders *still* want to insist you don't qualify. Only people 60 days late qualify. Sad but true too often. Second, your income may not be high enough in relation to your debts, this is the debt to income ratio, or DTIR. Many lenders want to see at most 50% DTIR after the new payment is figured in. Some lenders are going lower. Countrywide has been going only to 38% recently for some borrowers, so fewer people qualify.

I would suggest you consider a short sale to get out from under.

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–Richard

My bank is telling me I have to be late to qualify for a short sale?

Unfortunately all to often, the answer is that you need to be behind by two payments in order to get a loan mod. Not always the case, but quite often it is.

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–Richard

Dear Richard for four years I have been doing Short sales. I have closed about 25 and I am at a 96% ratio. The short sales are getting harder and harder to do because of the servicer/note holder inability to respond. So I decied to start doing Loan Mods. I purchased your excellent course but have a question about info I heard in today's video. Using the Lender Formula you give in the Loan Mod course of hoped for mortgage and the bills you specified and then doubling the amount you state: "If the doubled amount is less than your monthly income you will probalby get a loan mod." My client has a monthly income of 9500. The double amount is $ 7,770. However based on todays video my client has a Debt to ratio income of 81%. (7770 divided by 9500) and he needs to be at lease 50% and if the lender is CHL he needs to be 38%. Am I missing something or do I have conflicting info. Thanks Larry Hollingsworth, Realtor Frisco, TX

DTIR is calculated by adding up all the monthly debt obligations including the hoped-for mortgage payment, and the property tax and insurance. This should add up to no more than half of the client's gross income.

The household disposable income is another test altogether, where the lender will ask the client to complete a statement of all their monthly expenses of all kinds, including food and so forth. The lender wants to see how much the client has left over to service debt. But it is a different question and DTIR is more important.

There are also ways to reducing a DTIR so it works for your client, such as by negotiating lower payments with credit cards, which is very powerful in cutting the client's monthly payments to creditors and also in lowering the DTIR so a loan mod that would be a "no" becomes a "yes."

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–Richard

Hi Richard, I have listened to some of your videos. I enjoy your straight to the point talk. Here is my situation. We purchased a condo in 2005 for $320k. We have a 1st of $252k and a second of $64k. The condo is only worth about $220k to $250k. In July of 2008 we purchased a bigger home which we have moved into. In Sept, 2008 I injured myself and was out of work. In addition, my work has slowed some hours. GMAC mortgage will not assist me in a loan mod because I have two homes. Same for the Specialised Lending (2nd mortgage). They also tell me I have not been late on any payments. I am a real estate agent. We want to keep the condo but want some type of loan mod. or we are considering walking away from it. Do you recommend a hardship letter? Do you recommend a real estate attorney? Thanks!

I recommend that you get the information that you need rather than hiring someone piecemeal. My course Loan Mod Magic is a great place to get all you need to know. If you do your own loan mod, you can save a grand or two. If you listen to the lenders and try to do a loan mod, you will probably short change yourself or fail entirely. A big key is that people who miss a few payments are the ones who the lenders talk to and help with loan mods. I am not advising anyone to miss payments, but that is the sad reality of it. And there are important packaging and negotiating methods to use that you need to know, and you will not learn these as I said from the lender.

I do not advise walking away. A short sale is far better because it addresses your personal liability on the second, and potentially on the first (don't know what state you are in) and also will help preserve your FICO score.

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–Richard

Hi Richard,

Okay, here is my unique and crazy situation… I have a house on a canal in cape coral, florida that I owe $530,000 on that is now only worth around $200,000. I stopped paying almost a year ago in order to get the bank to start to negotiate with me. (Ocwen is my service provider) They told me they wouldn't even negotiate with me unless and until I was 90 days behind. So, I began the agonizing process of watching my 730 credit score slowing sore down the tubes, and of
"negotiations" or lack there of with my serivice provider, out of India. I have only spoken to one American person, and have had a solid year of nothing but hard core runarounds. At first, they told me they were going to "forgive" around $200,000 of the loan and bring the amount I owe down to the current property value… then they called me and told me that since when I took the loan I also pulled cash out that they could not do that.

Now, here's the ever so important backstory… My husband and I bought the house in 2004 for $285… then, took some money out to work on the house (it was built in 1963 - completely dated). Then two years ago, we divorced. It was at a time when no one was too sure where the market was heading and I took the chance of keeping the house and assuming the debt and he walked free and clear. He agreed that no matter how things turned out… profitable or debt riddened that he would make no claims. I went to a lender who told me that the ONLY way they could approve me with my credit score, because of a previous chapter 7, discharged in 2003, that I would have to take out an extra $90,000 to draw against to cover the mortgage of almost $4000/month for the first year. Then, after the 1st year, they, or someone else could refinance me and bring the payments down to a more reasonable number. I also have my real estate license but have done very little with it. I keep it up to date but have never sold a house. I sell advertising in the Southwest Florida market (#63) and have had a total decline in my income on a regular basis every since. I tried using some of the $90,000 to move to L.A. where I worked for one of the major TV networks, but after having no one to manage the property because all of the management companies were overwhelmed and taking no new clients, and a few other factors, I returned to Florida and to the house… only to find that the antique a/c unit was place against code in the attick many years before we ever bought the place and as a result there was a leaking drip pan which cause black mold to infest the ducts of the a/c unit. I was now looking at over $10,000 in expenses to remedy that problem and still playing cat and mouse with Ocwen in India trying to modify the loan. I have since moved out of the house and renting a much nicer home for less than a third of my mortgage payment.

I have been told by an attorney that trying to sue for the a/c problems would not be a likely success and that I should simply file chapter 13 where he could somehow get me out of owing anything at all for the house, settle my credit card debt for low monthly payments with very little interest (I only have about $2500 worth of cc debt).

I have a first and a second mortgage… backed by Bear Sterns… I simply do not know what to do. I would like to get the bank to do what they had originally proposed; to forgive the difference of what I owe and the current market value and to give me a payment based on the new loan amount. At that point I could either tear the house down and build a small nice new home in it's spot for around $100,000 or I could fix the a/c problem and the rest of the problems and move back in. OR… to simply get out of it altogether, which considering my husband is no longer there to help me take care of it and my company is laying people off left and right and I have absolutely NO job security, I'm quite sure this is the best option. But, I worked so hard to get my credit back up to a 700+ after the chapter 7 (which by the way was only for around $20,000 and was almost ALL medical bills… I should never have filed ch. 7 - it was a horrible mistake… I know now, live and learn, right?) Anyway, I would like to salvage my credit score, get rid of this house, and somehow do it all on a budget. I'm more hand to mouth at age 35 than I have ever been in my entire adult life. I have even had to pull my daughter, a sophomore in high school, out of private school and put her into public school where she is extremely unhappy, to give you an idea of how extreme my circumstances are.

Please advise.

Thank you so much,
Anna

Oh yeah, and I forgot to mention that one of my credit cards is Capital 1, which I normally paid off the entire balance each month, but due to the dire nature of my financial circumstances, I didn't make any payment at all for over 4 months and they have now doubled the amount that I owe in fees; bringing my balance from $600 to $1350 and have given me til' tomorrow (the 12th of January) to agree to a payment arrangement or they will move forward with a law suit. I believe that because I recently had to sue someone in small claims court and while I was there, more than 20 cases were Capital 1 law suits. They will not negotiate with me because they have determined that because I have already filed Chapter 7 in 2003 that I will not be allowed to file again and therefore, they will get what they are asking for in court but, in the representative's exact words… "it will just be a slow bleed." Meaning that it would take time for them to slowly garnish my wages or what have you, but in the end they would get the entire $1350 plus legal fees. Any advise???? I have only one day to figure this one out. What a mess! PS: Please excuse any spelling/gramatic errors; I'm typing fast. Thanks

I can suggest that you get information, and act out of knowledge rather than out of fear. You are acting now out of fear. That never bodes well.

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–Richard

When I purchase your loan mods secret, do you have the dti ration used individually by each lender to grant a modification ?

Also, when I know there are violations to REPA, TILA, where do I file a lawsuit and can I do it myself on my behalf? What is the procedure?

Richard, i have a client loan Mod Customer is backwards on his primary home good area for kids.. any how the problem is that He is with Carrington Mortgage 1st and Indy Mac 2nd. Payment about $4400.00

Rental Indy Mac only, How do we present the financials, per Indy Mac on the second denied because Indy Mac states that they do not consider the Mothly mortgage payment on the primary Of the $4400.00 and will not consider it as debt and said that he can well afford the current payment of $2800.00 for the rental.

Please advise

Javier

Foreclouser, do you recommend working with the bank it's self if you already in foreclouser? Looked a a few Lawyers they want up to $4600.00 up front and will only recommend backruptcy. Isn't there something else that can be done?

Situation Homeowner, lost job 2008, lost renters 2008, now has ability to pay mortgage, has not paid sisnce July 2008, Oct 2008 had very bad car accident and health issues now from accident 74 years old. 1st Auroura Loan Service bal $599k 2nd Country wide $98K, House is only worth 435K last we checked.

Auroura will only offer a forbearence and Countywide will not work with us. Please advidse, Client has all her family living with her now and wants & needs to stay in her home in Fontana California.

Thanks

Javier

Hello Richard,

Pertaining to loan modifications for a husband and a wife if. If only one person is on the loan but they are both on title will both incomes be used and factored into the debt to income ratios? or just the one on the mortgage?

Also could you please tell me if someone has already had a loan modification is a second one possible? The first loan mod just brought us current but did not alter the terms.

One last question please if a homeowner is upside down by 180,000 what are the chances of any equity ever to be seen in this life time? or would it be better to include the home in a bankruptcy? Thanks.

Hello Richard, Pertaining to loan modifications for a husband and a wife if. If only one person is on the loan but they are both on title will both incomes be used and factored into the debt to income ratios? or just the one on the mortgage? Also could you please tell me if someone has already had a loan modification is a second one possible? The first loan mod just brought us current but did not alter the terms. One last question please. if a homeowner is upside down by 180,000 what are the chances of any equity ever to be seen in this life time? or would it be better to include the home in a bankruptcy?

I am not optimistic about housing coming back for several years. But I don't see bankruptcy as necessary for most folks. You can settle things rather easily if you know how, without bankruptcy.

Both incomes can be used if you need it. I'd hold it in reserve. But never lie to banks, stick to the truth whatever you do.

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–Richard

Richard, This is Jerusha Patterson in Lanham Maryland. I like what you say on all your vidoes. I have a question? I am I able to do loan modification for people, if I am not a Real Estate agent. I wanted to help others and make and extra income for myself. I want to order your course on loan mods. but if I am not an agent and this is a requirement how can I get involved in this portion of your program. Please answer me asap! I really want to know. Thanks, Jeri

You can do loan mods and short sales for other people. Get my course. And check out the laws that apply in your state. Some states have no requirements. Most states have a statue that prohibits advance fee charging, and that require you to give the borrower a chance to rescind, and some other stuff. A few states require you to have a bond issued if you are doing loan mods. Not a big deal if you are legit. My course explains how to run this business without charging advance fees.

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–Richard

So you get to live in your home for free for a few months…..ENJOY!!! If the company doing your short sale knows the loopholes, you can stay in there for MONTHS without making payments. We closed one last Thursday here in Virginia where the owner was able to make NO PAYMENTS AT ALL IN 2008!!! He, his wife, and 2 little ones could not have been more happy. They are now renting closer to work, paying less per month for a nicer property and were able to save several thousand dollars last year!!!! Sincerely, Ben Benita

Hi Ben! Hope you are well.

Folks, I recommend Ben's services whole heartedly. For anyone doing a short sale, Ben's the real deal. Get in touch with him at http://www.United-IG.com

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–Richard

Hi Richard, When calculating DTIR, do you use the interest-only payment for HELOCs, or do you amortize it as if it were going to be paid down over the remainder of the loan period? My HELOC has been suspended because I'm upside-down and need to pay it down before they'll let me draw from it again. I'm actually hoping to do a loan mod on my rental though, losing $1300/month. With gratitude, Kristin

Hi Kristin!

Why not assume they convert the HELOC into a 30 year amortizing loan, maybe at an interest rate for 5 years of, say, 3%. At least for purposes of calculating a hoped-for payment.

Are you in touch with the HELOC about a loan mod?

BTW, I question if they will let you draw it down again, ever. Regardless of what happens.  Which might be for the best …?

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–Richard

You really cannot get a loan modification. You need to get a short sale. In a short sale, your credit will get restored over time. If done right, your lenders should report your mortgages as having been "satisfied." The loss of all of your real estate debt will immediately improve your debt to income ratio. The late payments will become less and less important over time. Good luck.

Hundreds of thousands of homeowners are getting loan mods. I do agree that many are better off with a short sale, though, because they can get out of debt rather than just papering it over.

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–Richard

Richard, In 2006 I opted to refi with a "pay option arm" mortgage. We own and operate a small used car dealership and over the past few years it was not going well. We found our debt rising and our income reducing as many have and used the cash out for our personal and business debts. In 2008 we decided that enough was enough and repositioned the business by leasing it off to other car dealers and drawing enough out of that to cover its expenses. We filed chapter 7 on our personal debt and are waiting for the court to decide if we qualify for a discharge of our persona l debts. We are reaffirming the mortgage but I wanted to know if I can try to do a loan modification and convert the mortgage to a fixed rate somehow with an affordable payment? In 06 the property was appraised at $450,000 recently the BPO was $290,000. Presently we owe approximately $390,000.00. The original mortgage was only $350,000 but the "pay option arm" interest added has taken the note up $40K. What to do? Dave Cullen

Dave, you should ask your lawyer this question. But I am wondering why you are reaffirming the mortgage? Why wouldn't you just walk away from this nightmare and come into a new life, clean from this outrageous amount of debt? Loan mods are fine for many folks, but in your situation I think I'd prefer to see you debt free, wouldn't you? Since you owe so much, the lenders are not (yet?) writing down principal. That is what happens in a short sale — and you walk away and start over.

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–Richard

Richard I have two investment properties that I bought in 2005 they will adjust up 2010 october.I am already coming out of my pocket about $300 each month but I have excellent credit for now. If I did a short sale on both houses,because they are not worth what I paid for them. If I have lines of credit with my business and personal credit cards that are paid on time every month throughout the short sale process will I lose them all? The reason is I use my lines of credit and credit cards to do other business with. I am trying to arm myself with knowledge not fear as you say. I am really looking into getting your program. THANKS FOR YOUR TIME.

Hi Alonzo, good on you for short sales on those houses! Instead of praying things would turn around, you turned them around. That is wonderful.

Will your FICO score take a hit? A bit, yes. Will it take a bad hit? Probably not. Today's underwriting standards are harder than they were due to the credit crunch. But you should not take such a hit that you will have your business and personal credit lines pulled. It is a possibility but I would doubt it will happen so long as the short sales are reported "paid - settled" and there were not multiple delinquencies as well.

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–Richard

How much of a FICO point drop happens when you either foreclose, deed in lieu, or short sale?

Richard, Do you think that a Forensic report it is necessary to a better negotiation?

It can be very useful but I'm not sure I'd spend several thousand dollars on it. You could do a qualified written request and have a competent mortgage processor look at your original documents and for very little, you might end up with extremely significant bargaining advantages.

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–Richard

I just recently got married. My wife is living with me now, and we are trying to rent her home. I am at the point where I can no longer make my paments on my CC's or my home. My wife is upside down on her home as well as myself in my home (where we currenlty reside). My wife also just lost her job a few weeks ago, so now I have my debt (CC and Mortgage) and her debt (CC and Mortgage) to pay. Counting mortgages, car payments, and CC monthly minimums I am at 110% DTIR How would you suggest handling this? Can I include her debt in my calculations to get my debt / mortgage reduced? Do I have to only include mine and have her follow the same process for hers? I am interested in your opinion on this specal case scenario. Thanks in advance

John, I don't know what legally is right, but I would try to present the case to lenders for a loan mod, or short sale, or settling credit cards, in a way that is both honest, and that makes my situation look most favorably in terms of getting what I want.

IF it makes sense to pool things together when showing a lender, then I would do that. If it makes sense to keep things separate, I would do that. Always sticking to the truth.

I would first consider settling the card debt, since you need to live but you don't need to pay credit cards. Then I'd think about short sales on the houses so I could get something more affordable. No need to buy when you can rent, although you can buy if you want to (even if you have credit problems.)

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–Richard

I don't understand. It seems like you are saying that you need to LOWER you DTIR to qualify for a loan MOD. Why does this sound backwards to me? If would think the higher your DTIR the more likely they will be to MOD your loan. A high DTIR is a sign you can not afford to pay your bills and if they don't help reduce your DTIR, you will default and they will be stuck paying extr $$ to foreclose on you. What am I missing?

A lender won't do a loan mod without making sure that there is a good chance the borrower won't fail the mod, at least if the lender is doing a good job (by lender of course I mean servicer.)

A recent study showed almost 55% of loan mods were failing. And I think it's because lenders were stuffing mods down borrower's throats that the borrower couldn't afford.

The FDIC took over Indymac Bank and they have made sure to stick to affordable mods that borrowers have a high chance of managing. DTIR has to be within the range of workable, or the lender will turn it down and foreclose.

Over 50% on an after-modded loan for a DTIR was and is unworkable. And lenders are sometimes looking at lower ratios than that, but rarely or never over 50%. 31% - 36% seems to be a number that I think any Federal program will end up using.

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–Richard

I also notice on the Indy/Mac process you talked about above - after a little research - that it looks as though they use Housing-to-Income (HTI) ratio and not DTI ratios? Is that true? http://www.calculatedriskblog.com/2008/08/indymac-mods-principal-forbearance-vs.html If it is, I don't see how anyone would be approved for a loan mod unless they had no other debt except a huge mortgage. Am I missing somethig? And thanks for all the help.

The latest guidelines for Fannie and Freddie use "front end debt ratios" that only include the housing component — your first mortgage payment, including interest and principal, property tax, insurance, homeowner's fees. The guidelines do not look at other debts at all, except in regard to mandating "counseling" for people who are over 55% back end debt to income, which takes into account all the borrower's debts not just housing.

In other words, they don't care how much debt the borrower is in, when it comes to calculating DTI. All that counts in essence is the mortgage related payments.

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–Richard

If you're a real estate broker in California I was told that the Department of Real Estate had to approve all licensees before they could provide Loan Modification services and that we would not be able to collect advance fees. Is that true?

The California statute prohibits advanced fees, as do many other state statutes. I don't know about the DRE claim, it may or may not be true. I can find out.

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–Richard

I have a loan with Countrywide a 5 year interest only $550,000. The home is worth about $1,200,000 even in this market The loan reset on Jan 1 of 09 from 4.25% ($1,964.00) to 6.25% ($3,658.00) an 86% increase. I am current on the loan and never a late on anything. Credit score is 805. I have been unemployed since Jan of 07 ( I was a loan officer for a bank acquired by National City Bank). I have been making payments from savings since that time and still have $250,000 in savings. I asked Countrywide for a Modification and was turned down because I am current on the loan and I have no income to calculate a debt to income ratio. any suggestions?

 Does it make sense to keep paying out from savings if you have been unemployed for such a long time? And to hold onto a house that is probably still falling in value? Have you thought that it may be wise to try to sell your house and reduce your expenses?

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–Richard

Richard- I just sent my loan mod paperwork back to b of a last week. They gave me a 3.375 rate for 5 years and extended the term to 40 years. Is it too late to take advantage of a better deal offered by this new program?

There isn't really a better deal right now. You done good!

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–Richard

Very interesting

Quick question. For those that need a principal reduction as part of their loan mod to get them to the 38% (even with the stepped, 40 year provisions) - do you see this helping or hurting their cause? I guess what I am worried about, is that now that the Gov't is going to cover a major portion of their loses for those that only need the "IndyMac" type modification to meet the requirements for a MOD - will they be less willing to go the extra mile to help those that don't qualify by reducing their principal or will they be less likely since they will have more $$ coming in from the Govt? Interested in your thoughts. John

I think that principal reductions will remain sporadic and hard to foresee. I think they will still be doing some principal reductions. Depends upon the phases of the moon, how much liability they may see they have with regard to TILA, and how much time they've put into reviewing the case.

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–Richard

Richard, The seminar was fantastic last night. Thanks to Babara for being there to answer our questions. I have just finished the 9 Day sale course and also I have just put my team in place to do loan mods. I am so excited about this. I wanted to know if I have the loan mod program and the 9 day Sale program which I bought each separately so I could use them and really follow them like I should what would the cost of just the Short sale program be? Also, could you have a real detailed class on "back to back closings" using a Lease Option and explain this in real depth. In my area of the country no one seems to know what I am talking about and that is good because I want to be the first one out here doing this. You have challenged my husband and I to "step out of our comfort zone" and stay in the game. Thanks for everything. You have made a difference!!! Thanks.

I am thrilled to hear of your moving forward on things and staying in the game. I would ask you to contact support@mortgagereliefformula.com or call our 877-691-3328 ext.300 to speak with one of my team about your request.

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–Richard

I have just bought your course, Mortgage Loan Modification. I am anxious to gain this knowledge and succeed in getting my two mortgages modified as I am struggled hard to pay them right now. One is a primary residence mortgage and the other is on investment property so not sure if that one is possible. Anyhow, I have begun to watch your short video clips and have already learned a bunch. Thanks & I will keep you updated! Best, Anita

Thank you, I look forward to hearing of your success. Make sure to participate on the private on line forum, the Free And Clear Club

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–Richard

One quick question: when you say 31-38% do you mean including or excluding the taxes and Ins that are part of the monthly payment? (I am guessing excluding)
Thanks, Anita

I was recently told that unless you are DRE approved you no longer could help people modify their loans. is this true? I have done loan mods for friends and family with successful results at no charge. I have also helped outside associates with a service fee.however I never accepted payment until their were results. Am I still able to charge for my services? I do not sell anything,I simply provide a quality honest service for people who do not have time to deal with their lenders.Because I know and keep up with the ever changing guidlines People know I will fight for the best resonable outcome.Thus far I have been extreamly successful. I do have my attorney if I need back up.please let me know thank you kindly, Tiffany

Tiffany, in California you can do loan mods but you may be subject to regulation. If you take money up front you have to use a DRE approved contract and be a broker licensee.

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–Richard

I have a house in California, that has been on the market for 2 years, I am on my 4th realtor and I had one property manager. I am in New Hampshire so it has been really difficult for us to watch the house, none of the realtors, including the property manager watched the house. When we left the house was renovated and we put alot of work into it. Than because no one was watching the house, homeless people moved in. We had to get the police to haul the homeless girl to leave, and clean up the house. The 2nd realtor had problems where our doors and carpet were stolen. The 3rd realtor was a younger girl, and she mentioned about doing a short sale. Unfortunately, when 6 months went by, I asked her what our status was? The bank said there was no application received. So I resubmitted the application myself, pleading with the bank. I actually got the Short sale approved, and the realtor told me the buyer walked. I don't think she had a buyer in the first place! I complained to the broker, and he gave me another realtor, I gave her my leads, and when asked what happened to my leads, she said she told the investor, it wasn't a good investment. Which brought me to my fourth realtor, who said he went to the property to find the front door stolen, and the house gutted. Also people were dumping trash on my front lawn. The old Realtor, said he would call the police and make a report, but instead he called Code Enforcement, and they tried to fine me, for what all the bad people did to us. I tried to do a lieu of foreclosure and they told me I was in a short sale, and the computer wouldn't let me do a lieu of foreclosure at this time. This house has been a nightmare, and my husband has been on unemployment. I am two months behind on my mortgage, a lawyer said, that my two options are to sell the house or to fix it up and re-rent it. We are so far away, that even if we fix it up again, the neighbors or homeless people would wreck it. The last tenants we had to evict, and we wouldn't be able to handle this if it happens again.

What a story. It shows yet again how difficult it is to manage a property where you don't live. The further away, the harder.

I think you can do a short sale. Call the lender and see if you can't talk to the negotiator who was doing the short sale. You need another offer asap. If you price the house cheap enough, you could possibly sell it very quickly. Have you had a broker do a BPO recently?

warmly

–Richard

Hello my name is Ruth Diaz. I want to thank God for you sharing with us. I have learned so much from you. My familiy and I are going through very hard finnancial times right now. After listening to you and learning about loan modifications now I feel better about getting my loan modified. We thank you.

Thank you so much. You made my morning. And I hope you are on the call we have this coming Monday.

warmly

–Richard

Sir Email me. I might be interested in a purchase. I am not a broker. Good luck to you Sir
Stan

Yes, that is true. The rule is that if you present yourself as a foreclosure consultant, and the client is in a legal NOD status, then you trip the Ca. foreclosures laws. Look them up. Also, if you collect fees upfront, then thse laws come into effect, and you EITHER need to be a DRE broker to collect the fees, or a licensed attorney. You should also have a fee agreement in place. For DRE brokers — let the DRE review and accept your fee agreement. There is a list of DRE approved brokers you are in compliance with the DRE regulations. See the site:

http://www.dre.ca.gov/mlb_adv_fees_list.html

(You will find a long list, and links to other information )

If you work with an attorney, then standard fee agreement in place. They collect the fee in their name and the work is done under their direct or indirect supervision.

Im a licensed DRE sales agent, but with 10 yrs of experience in the business of commercial real estate finance. I decided, for liability issues, and for performance, to work with an attorney firm that does the forensic legal review and modifications for my clients, and I have a referral arrangement with the firm to conduct this type of busines. I do not get directly involved with the lenders and the modifications unless I need to on behalf of the client, or if there lack of understanding between the client and the lender.

I do this to be prudent, and compliant with the Ca. law. I do not want to have any issues with the DRE, or the State when they start investigating outfits who are doing this type of work outside the parameters. I state this for your information since you asked the questions. The rest, as you know, is up to you and how you would like to handle your business operations. If you need additional assitance, I would be glad to fill you in on what I know. Mr. Geller here has done a great job with his timely emails and information about this business and the forthcoming news about BK and other issues affecting homeowners.

Good Luck
The Solution Center

When the dummies at the bank tell you payments MUST be late for a short sale, use this:

"I MUST be late…..THAT IS EXCELLENT __________(insert your negotiators name). So you are telling me I can stop paying my mortgage for a few months, and then you will help. That is GREAT NEWS, wait until I tell my wife/husband we can quit paying you guys……"

The response you will get from them 100% of the time:

"No, I am not saying you have to miss payments……blah blah blah"

and they IMMEDIATELY start back-peddling on this point.
Negotiators get in BIG BIG BIG trouble if they tell you to stop sending them cashola!!!!

GIddyup……be strong, and remember, they are called "negotiators" for a reason!!!

Sincerely,
Ben Benita
BBenita@Comcast.net