PRESIDENT OBAMA...

??DEAL OR NO DEAL??

Obama's Making Home Affordable

and

Nevada Foreclosure Mediation Program

Last time we learned how to modify our loan by ourselves…. but…. what if the bank does not want to cooperate and the home goes into the foreclosure process?

Well…….. HERE COMES JOHNNY!!!!!! Our President Mr. Obama and Nevada Governor Mr. Gibbons!

Obama’s Home Affordable Modification Program (H.A.M.P.) and the Nevada Assembly Bill 149, (AB149) passed and signed into law by Governor Gibbons to take effect July 1, 2009 and amended 435, gives borrowers the right to seek mediation of a mortgage loan if they are the owners and occupants of that home.

The new law states that the trustee cannot exercise a power of sale on an owner-occupied residential property unless the trustee includes with the notice of default and election to sell (NOD) this information:

1. Contact information that the homeowner may use to reach a person with authority to negotiate a loan modification on behalf of the beneficiary of the deed of trust;

2. Contact information for at least one local housing counseling agency approved by the United States Department of Housing and Urban Development (HUD); and

3. A form upon which the homeowner may indicate his election to enter into mediation or to waive mediation and one envelope addressed to the trustee and one envelope addressed to the Mediation Administrator, which the home-owner may use to comply with the provisions of subsection.

The trustee must also serve a copy of the NOD and contact information upon the Mediation Administrator and record at the office of the recorder of the county in which the trust property or some part of it is situated, the NOD, contact information, and a certificate from the Mediation Administrator which says no mediation is required or that mediation has been completed.

The new law requires that the homeowner complete the mediation form no later than 30 days after service of the NOD upon him and return it by certified mail to the trustee.

If the home-owner indicates on the form his election to enter into mediation, the trustee shall notify the beneficiary of the deed of trust by certified mail of the election of the

home-owner to enter into mediation and file the form with the Mediation Administrator, who shall assign the matter to a mediator and schedule the matter for mediation. No further action may be taken to exercise the power of sale until the completion of the mediation.The cost of the mediation is $400, shared equally by the homeowner and the lender.Each party must pay their $200 portion prior to the mediation.

A lawyer is not required to be present with you in the mediation process, but each side is welcome to have an attorney represent them.

There is also another bonus with the new law. The homeowner has until 5 days before the trustee’s foreclosure sale to make up back payments and reinstate the loan. This extends the time to make good the deficiency in performance or payment on the mortgage by 3 to 5 months. The old law only gave the homeowner 35 days after the NOD to reinstate the loan.

Another very important bill, which assists the homeowner in foreclosure, is AB 471.Why?

If a lender reduce the principal balance of a loan (VERY RARELY) or the property is foreclosed upon or sold in a short sale process, the amount of the canceled debt must be included as income in your tax return, in addition the lender can seek for a DEFICIENCY ORDER for the insufficient or forgiven amount.

The AB 471 provides for relief from any deficiency judgment against owner-occupied homeowner if the foreclosing entity is bank, which loaned the money for the purchase of the property, and the homeowner lives in the property financed from the time of financing until the present.

AB 471 only applies to foreclosures proceedings on loans after October 1, 2009.

I will talk in detail about  deficiency judgment and tax liabilities in my next article....

"BORROWER TAX LIABILITIES REGARDING LOAN MODIFICATIONS, FORECLOSURES AND SHORT SALES."  

But why waste your money when YOU CAN MODIFY YOUR LOAN YOURSELF, for FREE, in Ten Steps and One Hour max?

Hi everyone,

Let me bring some light in the dark night of the LOAN MODIFICATION PROCESS!

My name is Michelangelo Liotine. I have been a realtor and loan officer in Las Vegas for many, many years now. For the past several months, I have been involved in the loan modification business trying to help friends and clients and I have seen and heard the good and the bad. DO NOT listen to lawyers when they tell you that you need them, and do not listen to reps from out of town loan modification company! Most of it is pure crop!

If you feel more comfortable to have someone negotiate a loan modification on your behalf and you can afford it, use a local, reliable attorney!!!!!

First thing the usual legal stuff

DISCLAIMER: I am not a CPA or a lawyer, so make sure to consult your professional advisors.

This article is intended to provide general information only, this is not intended to be a tax or legal advice and you should always consult with your own accountant, attorney and trusted advisors to discuss your specific situation, goals, rights and options.

Now let’s get down to business..............................

Here is the real story about loan modification.

Before we start, please answer the following questions:

Is the loan you want to modify for an owner occupied home?

Is under $729,000?

Do you have an income?

If you answered yes to all three continue. If you answered no, well.., you’re marching up hill with bad boots.

Step One

Figure out how much money you make. It doesn’t matter how you get it as long as you can prove it. You need to Calculate your Gross Income and Net Income. Gross is the big number you tell all your friends and family about. Net is the smaller number and the reason you are broke.

Step Two

Calculate all your expenses. Just the big ones reported to credit agencies. Not the stupid bet with your friend that you have never repaid and are not going to repay. Auto/transportation, auto expenses including insurance. Utilities. Food. Insurance. Minimum credit card debt. You owe $25,000 they want $45 a month. This is the other reason you are broke. You may want to go to your lenders web site and download a hardship package or what ever they call it. It will have a financial worksheet included in the package.

Step Three

Take your net income from step 1 and multiply by 31%. This is your new payment under Making Home Affordable guidelines. This new payment should not be less than 60% of your current payment?

Step Four

Add all of your expenses from step 2 to the new payment under step 3. These two numbers should be less than what your net income is. You should have $300 - $600 residual money left. Any less and you need to find more money -maybe a roommate that doesn’t exist or you need to lose some expenses. The bar tab at upchuck Charlie’s that you aren’t going to pay any way.

Step Five

Call your lender. You want to talk to home retention, loss mitigation. Anything but collections. If the live person on the other end asks you for one dime hang up you are talking to collections. It’s up to you but if they sound like Abu from the Simpsons but say their name is Michael you might want to hang up.

Step Six

Once you are talking to the right department ask them who owns your loan and does it qualify for a modification. The answer should be yes. Almost every loan will qualify for Obama's Making Home Affordable Program or some in house program. Explain to them you would like to start a case and see if you qualify for an instant modification.

NOTE: your loan may be owned by an investor not willing to modify. You’re negotiator will notify you of this. If this is the case even the almighty above cannot save your house. Don’t pay an attorney or modification company. YOU ARE GOING TO LOSE YOUR HOUSE.

Step Seven

Take your financial numbers from above. These are the numbers you want to use. Remember the person on the other end wants to help you. They may give you guidance and ask about more money or less expenses. They are steering you, listen to what they are saying. But don’t waffle, stick to your written game plan. It is easy to blow over or under the $300-$600 buffer you are working with.

Step Eight

Reiterate that you have calculated your payment based on Making Homes Affordable as outlined by President Obama. It makes all White people nervous that they may be racist for not approving your loan based on Obama’s guidelines.

Step Nine

Remain calm. If you’re new payment is 31% of your net income. And you expenses/debt and new payment are lower than your income and the new payment is not 60% lower than the original payment and you have a job you qualify. Let them work out the numbers.

Step Ten

Write down what they say. Write down the numbers they are calculating. When they finish they are going to say you are approved for a trial modification for three months. That’s what they do. That’s the starting point. Three month trial modification. There is not going to be principal reduction. If that is what you are after go ahead and short sale your home or walk away. Principal reductions are small miracles granted the same as the faces of deity in toast. They are going to request more papers to be faxed in or give you their web site to download a modification package. They will give you a special fax number, write it down and fax to it and only it. You will most likely need two current pay stubs, two complete bank statements, a utility bill, 2008 tax return, hardship letter, and 4506T IRS form. Get this done asap.

Sit back and relax you are done. One hour, no cost.

If it doesn’t work and you hit a wall with your negotiator maybe they are lacking some personality skill sets. You can always wait a few days and try again.

If after trying again few days later you are still unsuccessful, well.... is the time for you to start to play tough cookie and ask for arbitration.

I will talk more about the arbitration process in my next article coming up in a few days and titled:

Obama's Making Home Affordable and Nevada Foreclosure Mediation Program to the rescue!

Good luck. Pass this on. If every person in mortgage distress would modify their mortgage it would stop the foreclosures and the real estate Market would return to normal or better than normal and I could make some real money again.

If you need help or assistance email me at Info@LasVegas2Sell.com  or call me direct at (702) 528-6422,

I will be more than glad to help and advise you.