A recent study in Nevada (a state that holds the nation's highest foreclosure rate), found that only 5% of distressed homeowners knew they had alternatives to foreclosure, and only 3% took advantage of them. It was also found the 1 in 4 homeowners chose to "strategically default," or allow their homes to be foreclosed upon on purpose!

Clearly, too few distressed homeowners know their options and the fallout of foreclosure. If they did, they'd soon realize that there's nothing ‘strategic' about foreclosure, and that avoiding foreclosure is always the best plan to create financial stability. 

Millions of Americans feel alone and trapped by mortgage payments they can no longer afford. In fact, 27% of Americans with mortgages now owe more than what their home is worth. However, more and more of them are finding education on the responsible alternatives to foreclosure is helping them move toward financial stability.

Education is key. The more distressed homeowners know about solutions, the more likely they are to overcome their financial challenges. I've seen this firsthand.

I can help with the education part-it's up to you to contact me!

 

Mortgage Relief Fraud: Will You Be the Next Victim?

 

Not if I have anything to say about it!

The FBI reported a jump of 71% in mortgage relief fraud investigations from 2008-2009, and expects this number to have grown in 2010. 

That's why it's my duty to educate homeowners in my community on the cautions they need to take, and what the government has recently done to protect you from unscrupulous individuals and companies who want to take advantage of their desperate situations.

 What you need to watch out for if you are looking for mortgage relief assistance:

•1.       Upfront fees-just don't pay them! In fact, they are now illegal!

•2.       A request to sign over your deed (this only spells trouble)

•3.       Lots of paperwork without the opportunity for review

•4.       The claim of government-affiliation

These are just a few red flags you need to be wary of. I've created a free report on the homepage of my website that details more of what you need to watch for.

If you are struggling with an unaffordable mortgage and are looking for help, educate yourself. These scammers can be very shrewd and will say almost anything to steal your money.

 The Federal Trade Commission has required disclosures of anyone offering mortgage relief services. If you'd like to see an example, check out any of the pages of my website. If a company you are dealing with has not provided these disclosures, please ask why they are not compliant, and proceed with caution! 

As a CDPE, you can trust that I have the tools to be in full compliance of FTC regulations, and will always work with your best interests at heart.

 If you want viable alternatives to foreclosure, give me a call today. I'm always here to help! 757-619-0755

3 Reasons the Term "Strategic Default" Is Misleading

In a recent study, the Chicago Booth/Kellogg School Financial Trust Index found that a full 36% of Americans would consider "strategic default"-another term for walking away from your mortgage-if they were underwater (owed more on their home than what it was worth).

Now that more than one in four American homeowners is "underwater," I feel that it's important for the community to know the truth about strategic default.

The truth is the foreclosure process carries with it credit issues, current and future employment challenges, issues with security clearance and possible debt collections.

That's why it is vital to explain the 3 reasons why the term "strategic default" is misleading:

•1.      There's nothing strategic about defaulting on purpose, especially when you have options like short sales, mortgage modifications, and refinance (just to name a few) that may keep you from foreclosure.

•2.      The waiting periods to apply for a new mortgage loan are at least five years less in a short sale vs. a foreclosure.

•3.      A foreclosure will show up on your credit report every time you apply for a home loan, car loan, new job, etc., and will affect your financial situation for many years to come.

If you are underwater and can no longer afford your mortgage payments, you need to create a genuine strategy to avoid foreclosure, helping to provide stability for you and our community.

If you have any questions about what steps you or someone you care about should take next, contact me today!

IMPORTANT GOVERNMENT DISCLOSURE: You may stop doing business with us at any time. You may accept or reject the offer of mortgage assistance we obtain from your lender (or servicer). If you reject the offer, you will not have to pay us for our services. The above brokerage is not associated with the government, and our service is not approved by the government or your lender. Even if you accept this offer and use our service, your lender may not agree to

FHA is changing the MIP on loans effective October 4, 2010.  The monthly fees are going to make a large jump.  For example, if you have a $200,000 loan your monthly payments will go up about $60.00 a month.

If you are working on getting a FHA loan your loan officer needs to register your loan no later than October 1, 2010.  If you are not sure if your FHA loan has been registered with FHA contact your Mortgage Loan Officer and ask the question.

 

 

Fannie Mae says it will get tough on borrowers who engage in "strategic defaults," or walk away from a home that's worth less than what's owed on the mortgage even if they can afford to keep making their payments.

Fannie Mae said that it will not only refuse to guarantee another loan for seven years if it has evidence that a borrower chose to default on their loan. They will also seek to recoup losses in court through deficiency judgement.  Virginia is one of the states that will allow Fannie Mae to recoup their losses.

The city of Chesapeake will come out and spray for mosquitos at no charge to the residents.  Residents just have to call the Mosquito Control Commission which will send a worker over usually the same day.

There are two companies that are charging homeowners $550-$650 to spray for mosquitos for a season.  For a one time spray  it costs between $79.00 and $125.00.

Before you pay someone to kill mosquitos on your property give the Mosquito Commission a call.  It seems to be a great deal to have mosquitos killed for free.  If you are not happy with the results call Mosquito Squad or Mosquito Joe to come and spray them for you.

 

Chesapeake City Council voted no to a free standing Emergency Room in the Greenbrier area.  The Emergency room was going to be built by Sentara.  The city council looked at the big picture and if it was really needed that close to Chesapeake Regional Medical Center.  It would be 2 1/2 miles away.

Chesapeake Regional Medical Center is the last regional independent hospital.  Sentara has bought up the other hospitals that were independent.  Chesapeake Regional has recently spent $6 million to renovate their emergency room.

Right after the meeting Sentara said they were going to file a lawsuit against the Chesapeake City Council.  Sentara just does not like to be told "no".  They are now taking a step back and are going to examine all their options.  They say that they may still file a lawsuit.

I am glad that Chesapeake city council looked at the effect the free standing emergency room had on Chesapeake and not just what Sentara wanted. 

Not only should sellers interview Realtors, they should interview at least three stagers to get a broader picture of which It is becoming more common for consumers to hire a home stager when they put their homes up for sale, Not only kind of merchandising is appropriate for their homes. Stagers should be able to provide photography of their work in a variety of styles, in order to demonstrate that they can stage a house appropriately for its architectural style, not just according to the stager's own tastes. Stagers should be able to show they're insured. As with any other professional, the stager should be able to provide references. For more information on stagers check out "Consumers Guide to Real Estate Staging site, www.realestatestagingassociation.com. Other staging groups that provide geographical listings of their members include the International Association of Home Staging Professionals (IAHSP.com) and the American Society of Home Stagers and Redesigners (ASHSR.com).

If you are a first time buyer that has been wanting to buy a home do it now.  The $8,000 tax credit will expire on April 30, 2010.  You have to have a contract written by that date.  You have until June 30, 2010 to close on the home.  Interest rates are still very low.

Do not delay buying your new home.  Interest rates are predicted to start rising.  This is the best time to buy a home.  Do not let this opportunity pass you buy.  Start looking today for your new home.  There is still time to take advantage of the low rates and the tax credit.

 

Chesapeake city council is unwilling to spend $350,000 to study the plan to extend light rail into Chesapeake.  They have also postponed the plan to seek $1.4 million in federal money.  Chesapeake leaders were told that they would need to come up with the non-federal funds before applying for federal funds.

The city council decided to revisit the idea next year.  The mayor said the delay will give the residents more time to comment on the light-rail.  It will also give officials time to come up with a way to pay for the study if they decide to move forward.

The study would examine the cost and feasiblity of extending the light-rail into South Norfolk or Greenbrier area.