Come Join HOM for another GREAT Training!

That's: http://www.eventbrite.com/event/128755110

Loan Modification Specialist (LMS) Certification Offered in Florida

Dates: July 27, 28, 29, 2009
Times: 8:30-4:30 every day

Location: Perdido Bay Golf Resort
1 Doug Ford Drive
Pensacola, FL 32507

Sponsor: Home Ownership Matters Training Institute

Trainer: Mildred Wilkins, (FIS) Foreclosure Intervention Specialist

Former Fannie Mae Broker-Specialist

Get the training you need from someone who has:
1. Learned property valuation from Fannie Mae

2. Sold real estate/processed many successful short sales

3. Lost a home to foreclosure/I can teach you about deficiency judgment

4. Learn from a professional; TO BECOME MORE PROFESSIONAL

Registration: Early bird registration ends 4/25, so HURRY and register TODAY, seats are VERY LIMITED: ONLY TEN AVAILABLE! (Yes, ONLY 10)

Lodging: The Cottages at Perdido Bay (http://www.perdidocottages.com) (Lodging NOT included in the price of the certification)

Course Description:

This Loan Modification Specialist (LMS) certification program is comprehensive, rigorous 3 day training designed to prepare attendees to successfully facilitate loan modifications. Professional development is necessary to be competitive in this emerging field. This certification has been designed and is taught by a former Fannie Mae Broker-Specialist who has specialized in foreclosure intervention training since 2002.

Wilkins created the (FIS) Foreclosure Intervention Specialist certification program for REALTORS, the first such certification for real estate professionals in the nation in 2005. (FIS) for Housing Counselors was added in 2006. The (LMS) certification will set apart those who have taken substantive hands-on training and are truly prepared to call themselves ‘specialists’.

Let the (LMS) certification move you closer to transitioning into a whole new career. There is pent up demand for this service, a limited number of qualified providers and even less training available for those in the private sector who currently own or plan to open a for-profit business.

(LMS) certification. Your answer. Today. Register. NOW!!!!

Why offer certification?

HOM Training Institute is the training arm of Home Ownership Matters, LLC. Providing quality education to real estate professionals such as REALTORS, attorneys and housing counselors has been the focus of the institute for several years, with the goal of training professionals to be competent in the fight against foreclosure. The dramatic increase in the sheer number of modifications which are being utilized, along with the fact that most individuals or organizations which offer them have little to no training in the field has created a need for practical, comprehensive training in this area. HOM Training Institute is responding to that need with the (LMS) certification training. The consumer is the person who ultimately benefits from this program.

Is this training right for you?

This is a fast-paced, but comprehensive, look at the many details which need to be considered if you have concretely decided, OR you are contemplating opening, a business which specializes in providing loan modification services. You will not be taught how to create a database of consumers who have already received foreclosure notices from public records and do direct mailing to them to get business. You will, instead, be taught how to set up a professional office where you meet with clients who have been referred to you from sources such as local counseling agencies, your local foreclosure hotline, reputable non-profit organizations and others in the community who are looking for competent, professional loan modification service providers to meet the growing need as the housing crisis deepens. While there is a significant move across the country to provide training to housing counselors within non-profits who help low to moderate income borrowers, there is no corresponding training to meet that same need for middle to upper income borrowers who are simultaneously struggling.

What to expect:

As attendees, you will:
1. Receive clarity on the legal process of foreclosure (state specific) and the applications for a potential loan modification

2. Cover the components of the mortgage documents which specifically impact the possibility of workouts

3. Learn the elements necessary for a successful modification and the practical strategies for implementing such a workout

4. Receive instructions on how to successfully (LEGALLY) block foreclosure long enough to complete the modification process

5. Gain a thorough understanding of the inner workings of the Loss Mitigation shop and how to work effectively with them

6. Leave this training with a clear picture of the ethical and legal constraints which should (and must) govern your business in order to avoid lawsuits

(LMS) Loan Modification Specialist
Certification Training

Day 1: Practical and Professional Strategies
Session I: Understanding the Foreclosure Process

This session will cover the basic process for foreclosure, beginning with default and culminating in the particulars of the foreclosure process. Both judicial and non-judicial foreclosure will be discussed, since they are vastly different. It is impossible to help someone effectively with a modification without understanding the bigger picture of what the foreclosure process is for your state and where the consumer is in that process. The class will cover the differences between foreclosure with a note and foreclosure under a deed of trust. Additionally, such things as redemption rights will be covered with a general focus on what they are and the intention under the law (and the way they are abused by foreclosure intervention scam artists). Each attendee will have an opportunity to get clarity on the ‘specific law’ for your state in a timeframe tailored for this purpose.

Lunch—The Perdido Grill

Session II: Loan Modification—An Intervention Solution Whose Time Has Come

This session will provide clarity on the details of what exactly constitutes a modification, the components of a good, sustainable one and how to structure such a workout. Just as important, this session will cover the risk factors which can undermine a mod and cause the consumer to re-default. Learning to more accurately analyze the short term capacity of the borrower and the long term feasibility of the workout proposal, prior to an agreement being reached, are the keys to long term sustainability. Success should be measured not by whether or not you got someone to say yes, but by whether or not the workout is ‘working’. If the answer is no after a month, then it would fail the test of a workout. It was, in fact, just a band-aid. This training is designed to train you how to offer long-term, sustainable proposals for modification and get them accepted.

***********************************************************

Individual appointments for state law coverage

(filled on a 1st come, best choice basis)

Appt 1—5 until 6 p.m.

Appt 2—6 until 7 p.m.

Appt 3—7:15 until 8:15 p.m.

Day 2: First Thing’s First for a Successful Modification
Session III: “Buying TIME” – When the Money is Running Out

The focus of this session is worth the cost of the training, even if you failed to attend any other sessions. Time—or the lack thereof, is a major stumbling block to any successful workout—including a modification. This session will cover a highly successful strategy which combines strategic and legal restraints that will give you several extra months and a very strong negotiating position. When time is on my side—and I have your undivided attention—then we can work something out. Using the power of an under-utilized federal law will give you the time you NEED to get the attention REQUIRED for a successful workout. A team of foreclosure attorneys have put together a comprehensive list of all the possible ‘audit items’ you might use to challenge the servicing on a loan or the validity of the loan itself. This TOOL will be the focus of this session. Let’s say, “It gets a servicer’s attention.”

Lunch—The Perdido Grill

Session IV: Behind the Scenes of a Loan Servicer’s Shop

As a former Fannie Mae Broker-Specialist the trainer was introduced to the inner workings of the disposition department of the largest insurer of properties in the United States. That introduction to the mindset behind the scenes, as well as subsequent Fannie Mae training on servicing, has been invaluable in teaching students in other classes what to expect from the servicer’s shop. Once you understand the mindset, you are better prepared to GIVE THEM WHAT THEY WANT—to get what you need. It’s a basic negotiating concept—the trick is knowing what the other party wants (which is seldom what they ACTUALLY tell you they want) and then being able to provide it. A successful modification agreement—in truth, an agreement between two parties for anything—hinges on a meeting of the minds with whether or not the needs of both parties are being addressed. Crafting a modification which has the potential to be both accepted and sustainable for the consumer is possible when you understand what the servicer shop truly wants.

**********************************************************

Individual appointments for state law coverage

(filled on a 1st come, best choice basis)

Appt 1—5 until 6 p.m.

Appt 2—6 until 7 p.m.

Appt 3—7:15 until 8:15 p.m.

Day 3: Practical and Professional Strategies
Session V: Modification Stripped Down

We’ll cover the basics of modification during this session. How to determine what recommendation to make and what supporting documentation should be supplied in order to validate that recommendation. Would a combination of components work better for this borrower? Is the medication a permanent ‘fix’ to the borrower’s financial situation or must you consider some additional long term strategy? Does the modification agreement provide protection from onerous terms? Is your client protected with a provision for timely recording of the modification to avoid repercussions during a subsequent transfer to a new servicer? If you don’t already know how to do all of the above mentioned things, then sign up today so you can learn how to structure a modification which will provide immediate relief and long term sustainability for your client. Remember: “If it ain’t on the paper, it don’t exist.” Feel free to repeat that quote by HOM founder Mildred Wilkins.

Lunch—The Perdido Grill

Session VI: Ethical and Legal Constraints

This final session is, perhaps, the most important session. It will focus on the need for clearly understanding how critical it is not only that you operate a modification business in an ethical manner, but that you also avoid even the appearance of borderline behavior. A number of states have already enacted legislation which covers businesses and individuals who are “foreclosure intervention counselors”. Offering a modification for a fee would definitely put you in that category. Not only are you obligated to abide by Federal privacy laws and fair housing laws, but there is an assortment of other laws which are geared to protect consumers from unscrupulous providers of service. There is, and will continue to be, aggressive investigation and prosecution of organizations and individuals who seek to take advantage of consumers during this trying time. HOM is basically a consumer advocacy agency and is, therefore, strongly supportive of legal action against any modification service provider who uses their knowledge and influence to take advantage of a consumer who has trusted you to help them at this difficult time. HOM will not endorse nor condone any illegal or unscrupulous behavior as it relates to foreclosure intervention, including loan modifications. Attendees of all training sessions offered by the Institute will clearly recognize that behavior above board, at all times, is continually advocated and expected of HOM graduates. Completion of a HOM Institute training should not be used as a cover for unscrupulous behavior. Be forewarned that the reputation of the company will be fiercely and publicly defended if a graduate seeks to use the integrity of the company in order to validate themselves.

**Dinner option available: Class vote required!

REGISTER TODAY, it may be the only way you are able to reserve your spot! Remember, there are only TEN spots open for this training!

Other training dates: May 25-27 and June 8-10

Airports:

Pensacola; 17 Miles Away
Mobile; 55 Miles Away
Okaloosa Regional; 53 Miles Away
Ft.Walton Beach; 48 Miles Away

WORD: Lis Pendens (Pending)

And the WORD for Today is:

Lis Pendens - a legal notice, typically recorded in the chain of title to real property to warn all persons that the subject property is the subject of litigation and therefore any interests in the property which might be acquired during the period when the lawsuit is still pending will be subject to the outcome of the lawsuit. Lis pendens may be required by statutes in some areas or only permitted. It effectively constitutes “giving of public notice” since the recording is a part of public record.

Copyright © 2008, Home Ownership Matters, LLC. All Rights Reserved.

You can find more helpful definitions of WORDS like these in Your Real Estate Advisor which can be purchased at www.DovePublishingHouse.com.

(Please E-mail Heather at homeownershipmatters@gmail.com with any questions, comments or concerns you might have! We appreciate all comments and feedback, so please don't be shy.)

WORD: Walk-thru

And the WORD for Today is:

Walk-thru - is not by any stretch of the imagination an inspection. Unfortunately, many consumers who build a new construction home believe that the walk-thru with the building supervisor just before closing is, in fact, an inspection. IT IS NOT!! This is not the consumer’s fault since the building trade has done an excellent job at teaching the public that a walk-thru is all you need on a newly built home. See Trickeration. So now that you know what a walk-thru is NOT, what is it? A walk-thru is usually scheduled by the builder as an appointment with a company representative and you, the new buyer(s). This is their opportunity to showcase the “pretty” in your new home. You will see how to turn on all the gadgets and gizmos and marvel at the extras you added. As far as the functioning of your new home (the most important part) you will probably be shown how to run the dishwasher and tilt out the windows and push the buttons on the built-in microwave. If you are blessed to have a Jacuzzi then of course you’ll be shown how to work that as well. The walk-thru is really a last sales pitch by the builder so you will convince more of your family and friends to make the same leap of faith that you are completing. You WILL NOT during a walk-thru see or discuss the quality of workmanship on the roof or in the attic or crawl space, you will NOT know whether all the plumbing is connected correctly, you will NOT cover 55 mechanical and/or structural items which would be covered with an independent home inspection.

Copyright © 2008, Home Ownership Matters, LLC. All Rights Reserved.

You can find more helpful definitions of WORDS like these in Your Real Estate Advisor which can be purchased at www.DovePublishingHouse.com.

(Please E-mail Heather at homeownershipmatters@gmail.com with any questions, comments or concerns you might have! We appreciate all comments and feedback, so please don't be shy.)

Q&A: Pended House—Available?

Q: My wife found this house which we really, really love from looking at the outside and peeping in the windows. When we called our agent to tell her we wanted to look at it she told us ‘It is pended’. If a sale is pending on a house, can I still take a walk-through with my agent and if I want it, make an offer?

A: Yes and Maybe. Real estate is changing at break neck speed these days and things which were iron clad just a few months ago are not so concrete any more. Coupled with the fact that all real estate agents do not understand exactly what certain terms mean, causing them to misuse terms and confuse the general public as well as other agents.

“Pended” is SUPPOSED to mean that there is an accepted offer between a bona-fide buyer and a seller. It is SUPPOSED to mean that the parties have agreed on all terms and are waiting for a closing date in the near future. However, it does not always mean that in today’s market. Today there are agents who “pend” properties which have been listed as potential short sales once they have an “offer in hand”. Such an offer must always be accepted not only by the homeowner who is upside down and possibly in default, but also by the lender who will be ‘shorted’ at a potential closing. When this is the case, an offer being submitted does not equate to an acceptance by the lender. Additionally, the fact that the homeowner who is attempting to sell has agreed, does not necessarily mean that the lender will go along with that specific offer.

Under the scenario I just described, it is possible to have an offer ‘pended’ in your local mls which has not been lender approved and which could be viewed, followed by an offer being written which the lender could entertain. On short sales, the lender reserves the right to consider all offers until THE LENDER has granted approval and ordered a closing. They reserve that right up until the time of the actual closing

Copyright © 2008, Home Ownership Matters, LLC. All Rights Reserved.

(Please E-mail Heather at homeownershipmatters@gmail.com with any questions, comments or concerns you might have! We appreciate all comments and feedback, so please don't be shy.)

WORD: Upside Down

And the WORD for Today is:

Upside Down - refers to a situation when a consumer owes more on a house than the mortgage pay-off. Also called Underwater.

Copyright © 2008, Home Ownership Matters, LLC. All Rights Reserved.

You can find more helpful definitions of WORDS like these in Your Real Estate Advisor which can be purchased at www.DovePublishingHouse.com.

(Please E-mail Heather at homeownershipmatters@gmail.com with any questions, comments or concerns you might have! We appreciate all comments and feedback, so please don't be shy.)

WORD: Pre-Foreclosure Sale

And the WORD for Today is:

Pre-foreclosure Sale - is also frequently called a short sale, this will allow for sale of the property for an amount less than the amount necessary to pay off the mortgage loan and avoid foreclosure.

Copyright © 2008, Home Ownership Matters, LLC. All Rights Reserved.

You can find more helpful definitions of WORDS like these in Your Real Estate Advisor which can be purchased at www.DovePublishingHouse.com.

(Please E-mail Heather at homeownershipmatters@gmail.com with any questions, comments or concerns you might have! We appreciate all comments and feedback, so please don't be shy.)

Q&A: Can We Still List?

Q: While we are behind on our mortgage payments do we still have the right to try and sell our home? The letter from our lender said we are in foreclosure but there has not been a court date that we know of yet.

A: If you have not filed for bankruptcy you still have the right to put the home on the market for sale. In fact, that is an excellent idea if you are facing foreclosure and feel that you will not be able to resume making the payments. A pre-foreclosure sale means that you are facing foreclosure but it does not necessarily mean that you owe more to the bank than the home will bring on the open market.

In the event you are “upside down” and the sale will not cover the full amount that you owe the bank, then you need to use a real estate agent who specializes in short sales. Your listing contract should state “sale will require lender approval.” This language should also be included in the advertising for the home so potential purchasers are aware that the bank will need to consider any offer which is submitted.

Copyright © 2008, Home Ownership Matters, LLC. All Rights Reserved.

(Please E-mail Heather at homeownershipmatters@gmail.com with any questions, comments or concerns you might have! We appreciate all comments and feedback, so please don't be shy.)

WORD: Adjustable Rate Mortgage (ARM)

And the WORD for Today is:

Adjustable Rate Mortgage (ARM) – is a mortgage loan that gives the lender the right to adjust its interest rate at regularly scheduled intervals on the basis of changes in a specified index. The borrower’s mortgage must state how often the rate can changed as well as set a cap for how high the rate may be increased. You should avoid an adjustable rate mortgage unless you feel certain your income is going to increase sufficiently to allow you to make higher mortgage payments at a later date.

Copyright © 2008, Home Ownership Matters, LLC. All Rights Reserved.

You can find more helpful definitions of WORDS like these in Your Real Estate Advisor which can be purchased at www.DovePublishingHouse.com.

(Please E-mail Heather at homeownershipmatters@gmail.com with any questions, comments or concerns you might have! We appreciate all comments and feedback, so please don't be shy.)

WORD: Loss Mitigation Department

And the WORD for Today is:

Loss Mitigation Department—A division of the bank that specializes in handling loans which is in default. Its job is to determine which option will best suit the borrower's current situation and allow the bank to minimize its loss.

Copyright © 2008, Home Ownership Matters, LLC. All Rights Reserved.

You can find more helpful definitions of WORDS like these in Your Real Estate Advisor which can be purchased at www.DovePublishingHouse.com.

(Please E-mail Heather at homeownershipmatters@gmail.com with any questions, comments or concerns you might have! We appreciate all comments and feedback, so please don't be shy.)

Q&A: Adjustable Rate Reset

Q. We re-financed our home 2 years ago so the payment would be more affordable. At the time we did not understand exactly what an adjustable rate mortgage meant. The broker told us the rate might go up later but that was not likely to happen since the rates were so low and that if they did we could always re-finance again so we would not have to worry about it. Our adjustable rate mortgage is scheduled to reset within the next few months. We feel sure the house is worth less than we owe so re-financing again is not likely to work for us. What happens at that time with the present mortgage holder?

A: Adjustable rate mortgages are set for certain periods of time and then the rate changes. Your rate will adjust based on the terms in the mortgage you signed at the inception of the loan.

Your present note holder or servicer is required to make the adjustments in strict adherence to the terms in your original documents. The frequency of the change as well as changes to the interest rate and caps should all adhere to the terms set forth in your note. You might pull out the original document and check to verify that they have, in fact, followed the guidelines there. If a mistake has been made you should bring it to the lender’s attention as soon as possible.

In the event the change in your interest rate will create a hardship in your ability to continue making scheduled payments, then consider the possibility of requesting a modification to the terms of the loan. There is a possibility that you might qualify for a reduction in the rate, or perhaps be able to have the loan converted to a fixed rate in order to keep from falling into default.

You should expect the lender to take a close look at your finances and have you to complete numerous forms and provide information on your finances to document your current situation and project your ability to maintain the payments with a new, adjusted rate. It is not a given that you will be able to get the rate changed, but it is certainly worth looking into.

Most lenders will at least consider a modification if you can demonstrate funds sufficient to make a reduced payment but cannot keep payments current at the higher interest rate. Check with the loss mitigation department of your financial institution if you are currently in default. Otherwise, you may talk to someone in customer service, but the reality is that seldom will you be offered any help unless you have already missed a mortgage payment.

I didn’t tell you to miss a payment; I said “seldom will they help you unless you have already missed a payment." Point of clarity: Loss mitigation is the correct department for someone who is already in default on their loan and customer service helps folks, or answers questions, when you are still current. The new stimulus package has a provision for banks to consider a modification “if default is likely”. We’ll have to wait and see whether banks actually do that.


Copyright © 2008, Home Ownership Matters, LLC. All Rights Reserved.

(Please E-mail Heather at homeownershipmatters@gmail.com with any questions, comments or concerns you might have! We appreciate all comments and feedback, so please don't be shy.)

Tweet Tweet

Hello trusty blog readers! This is just a quick post to say that we're finally on Twitter! You can follow us there, too. Our username is HOMBlog and we'll be Tweeting at least once a day, just like the blog!

WORD: Hot Water Heater

And the WORD for Today is:

Hot Water Heater - is a tank which is used to heat water for household, commercial or industrial use. Hot water tanks are usually glass lined and heat may be provided by either gas or electricity. Hot water heaters are very low maintenance but should be drained and cleaned at least once per year. Minerals and other debris which are found in the water tend to settle at the bottom of the tank and need to be flushed out to maximize its effectiveness.

Copyright © 2008, Home Ownership Matters, LLC. All Rights Reserved.

You can find more helpful definitions of WORDS like these in Your Real Estate Advisor which can be purchased at www.DovePublishingHouse.com.

(Please E-mail Heather at homeownershipmatters@gmail.com with any questions, comments or concerns you might have! We appreciate all comments and feedback, so please don't be shy.)

WORD: Septic System

And the WORD for Today is:

Septic System - refers to a waste disposal system where waste is funneled through pipes and a tile field, which terminates in a septic tank on the property. The use of septic systems is common in areas where city or county municipalities have not installed public sewer systems. While septic systems are regularly being replaced and upgraded to more sanitary and effective sewer systems, many are still in use around the country.

Copyright © 2008, Home Ownership Matters, LLC. All Rights Reserved.

You can find more helpful definitions of WORDS like these in Your Real Estate Advisor which can be purchased at www.DovePublishingHouse.com.

(Please E-mail Heather at homeownershipmatters@gmail.com with any questions, comments or concerns you might have! We appreciate all comments and feedback, so please don't be shy.)

Your Real Estate Advisor: Inspections—Top to Bottom “Check-Up” for the House

Inspections—Top to Bottom “Check-Up” for the House

When you are thinking about buying a home, you need to know what kind of condition it is in BEFORE you complete the transaction. You need to know just because you need the information (even if you are buying it as is. It is critical that you get accurate information about a wide spectrum of components of the property). In the event this is a regular transaction (not REO or short sale), then you can use the results of the inspection report to negotiate repairs which you wish to have completed at the seller’s expense, prior to closing.

What’s included?

We will cover the basic items for a full mechanical and structural inspection. The inspection will be a visual inspection of these components. While this list does not cover everything which could be inspected, it does cover the more common items you should expect with a full inspection of your home.

((Area: Components Checked))

Furnace: Burners/elements, heat exchanger, blower fan, ducts, air flow, filter, the flue pipe, humidifier and the thermostat

Electrical System: Breakers, fuses, main panel, sub panels, main service wire, switches and receptacles, amp rating, light fixtures, door bell and all smoke detectors

Plumbing: Water heater and gas lines, water lines, waste pipes, all fixtures and faucets, drainage, sump pump, caulking and grouting

Interior: Walls, ceilings, floors, steps/stairs/railings, fireplaces, all doors and windows

Attic: Structure, the decking of the roof, insulation, Ventilation and water penetration

Crawl Space: Water penetration, water damage, the structural integrity of the walls, insect damage, the structural integrity of the support system for the 1st floor of home as well as the location and condition of insulation

Slab: Water seepage into ducts (under slab) cracks and/or settlement

Basement: Water penetration, any water damage, the structural integrity of the walls, evidence of insect damage, floor condition, structural integrity of the support system for the 1st floor, finished wall and ceiling condition

Exterior: Roof, flashing, skylights and chimneys, walls, soffits and facia boards, gutters and downspouts

Grounds: Driveway, walks/steps, patio/porch, retaining walls, railings, balconies and drainage

Appliances: (Check to be sure your inspector will check the appliances, not all companies do) (Most built in items will be checked). Range, oven, exhaust fan, refrigerator, dishwasher, disposal and trash compactor


There are additional components which may need to be inspected but are not part of the standard inspection. Your inspector may inspect these for an additional fee or it may be necessary to call a company who specializes in this type of inspection.

Those items include:

Well/Septic System Security systems
Water testing Insect Infestations (termite/other)
Radon Water softeners
Sprinkler systems Pools and/or spas
Asbestos

We’ll cover these in a future article. Remember: your best bet is to use an ASHI certified inspector and attend the inspection so you can ask lots of questions. It’s an investment in your future. I’m trying to look out for you.

Copyright © 2008, Home Ownership Matters, LLC. All Rights Reserved.

(Please E-mail Heather at homeownershipmatters@gmail.com with any questions, comments or concerns you might have! We appreciate all comments and feedback, so please don't be shy.)

WORD: Down Market

And the WORD for Today is:

Down Market—is a phrase used to describe a real estate market with an over supply of properties for sale, extended days on market and properties selling for less than the optimum price. An extended “down market” will lead to a recession if market factors do not adjust to move to a more balanced situation within a reasonable period.

Copyright © 2008, Home Ownership Matters, LLC. All Rights Reserved.

You can find more helpful definitions of WORDS like these in Your Real Estate Advisor which can be purchased at www.DovePublishingHouse.com.

(Please E-mail Heather at homeownershipmatters@gmail.com with any questions, comments or concerns you might have! We appreciate all comments and feedback, so please don't be shy.)

WORD: Buyer's Market

And the WORD for Today is:

Buyer’s Market—means the market conditions are strongly leaning in the buyer’s favor. In real estate, a buyer’s market occurs when there are more homes for sale than there are buyers. The combination of foreclosures and overbuilding for the past few years have created such a market in a number of areas around the country. In a buyer’s market home prices are driven down, seller concessions are more lucrative and there is an increase in the number or properties available. What more does a buyer need other than someone to move their belongings? In Florida, you can get that too.

Copyright © 2008, Home Ownership Matters, LLC. All Rights Reserved.

You can find more helpful definitions of WORDS like these in Your Real Estate Advisor which can be purchased at www.DovePublishingHouse.com.

(Please E-mail Heather at homeownershipmatters@gmail.com with any questions, comments or concerns you might have! We appreciate all comments and feedback, so please don't be shy.)

Your Real Estate Advisor: Don't You Quit

As I was driving back to Florida the other day I decided to listen to a tape which had been given to me by a new acquaintance a couple of weeks before which I had not yet taken the opportunity to play. I had been having one of ‘those weeks’ where most of the stuff that can go wrong had decided to go wrong. The compressor went out on the car, the check I needed yesterday had not arrived and the contract due last week was still not in my company’s mailbox. I wasn’t exactly depressed but I wasn’t exactly uplifted either.

Encourage yourself

The song which changed my perspective was saying “sometimes you have to encourage yourself.” “Sometimes you have to give yourself a pat on the back.” It did NOT advocate call somebody, wait on somebody, hope somebody will come along and lift you up. It emphatically said, ‘do it yourself.’ I found that exceedingly powerful. Too often we are looking to some outside force to help us to make it when what we really need is to turn inward, find the inner strength which we all have and ‘encourage ourselves’.

Don’t you quit!

One of my favorite poems since I discovered poetry while still a child is “Don’t You Quit”. The first verse is printed below. Remember it, hold fast and know that IF you hold on and remember to /tie a knot/ you can weather most storms and live to fight again another day. Be encouraged and remember:

Don’t You Quit

When things go wrong, as they sometimes will,

When the road you are trudging seems all up hill,

When the funds are low and the debts are high,

And you want to smile, but you have to sigh,

When care is pressing you down a bit,

Rest if you must—but don’t you quit.

--Author unknown

I hope you are encouraged today, no matter what you are facing, to continue the struggle. We may not get what we had hoped for but if we refuse to quit we will certainly attain some satisfaction in knowing that we accomplished more than we would have had we caved. Encourage yourself and refuse to give in.

Copyright © 2008, Home Ownership Matters, LLC. All Rights Reserved.

(Please E-mail Heather at homeownershipmatters@gmail.com with any questions, comments or concerns you might have! We appreciate all comments and feedback, so please don't be shy.)

WORD: Trustee in Bankruptcy

And the WORD for Today is:

Trustee in Bankruptcy—the individual who is appointed by a bankruptcy court. The property of the borrower who has filed for bankruptcy protection is under the control of the trustee once a petition has been filed. The trustee holds the property in trust, not for the benefit of the consumer, but for the creditors of the borrowers. 

Copyright © 2008, Home Ownership Matters, LLC. All Rights Reserved.

You can find more helpful definitions of WORDS like these in Your Real Estate Advisor which can be purchased at www.DovePublishingHouse.com.

(Please E-mail Heather at homeownershipmatters@gmail.com with any questions, comments or concerns you might have! We appreciate all comments and feedback, so please don't be shy.)

WORD: Trustee

And the WORD for Today is:

Trustee—a person or business who assumes the responsibility of managing assets for someone else. In a bankruptcy filing the trustee of the Federal Bankruptcy Court has the job of overseeing the management and/or possible disposal of a borrower’s assets to maximize recovery for unsecured creditors.

Someone who is appointed, or required by law, to execute a trust.

May also refer to one who holds title to real property under the terms of a deed of trust.

Copyright © 2008, Home Ownership Matters, LLC. All Rights Reserved.

You can find more helpful definitions of WORDS like these in Your Real Estate Advisor which can be purchased at www.DovePublishingHouse.com.

(Please E-mail Heather at homeownershipmatters@gmail.com with any questions, comments or concerns you might have! We appreciate all comments and feedback, so please don't be shy.)

Q&A: Bankruptcy "Stay" and Short Sale Listing

Q: We have not been able to keep up our mortgage payments and finally decided to list the house for short sale so maybe we can save our credit by not having a foreclosure on our record. Nobody seems to be buying houses in our area and several folks have said we just need to go ahead and file bankruptcy but keep the house out of it. Is this possible?  We don’t want to make a mistake while trying to resolve this issue.

A: You can’t file bankruptcy and ‘keep the house out of it’. The house is an asset and the Trustee of the court will ultimately decide what will be done with any and all assets. The closing of a short sale can not be completed while a home is still in bankruptcy. Only after the Trustee has made a decision to allow removal of the home from the petition and allow it to be placed (or put back) on the market should this be done.

If a borrower has a home listed for a potential short sale and then files for bankruptcy protection an “automatic stay” goes into effect as soon as the bankruptcy is filed. The “stay” means several things. Including;

1. All creditors are prohibited from calling or harassing the borrower until there is a disposition of  the bankruptcy
2. All assets are “frozen” until the court has made a decision about what is to be done with them
3. All loss mitigation discussions must cease until the bankruptcy is completed (that includes a possible short sale)
   

Deed-in-lieu dilemma

For the reason just discussed, a person who believes they might be able to complete a short sale would be ill-advised to file for bankruptcy protection since it blocks this option. Additionally, since the Trustee of the Bankruptcy court might order a deed-in-lieu (forcing the person to relinquish the house) you should make this your last, last option.

You relinquish any control of the situation by filing bankruptcy. Additionally, there is the possibility that if you are required to sign a deed-in-lieu of foreclosure that you might later be faced with a deficiency judgment which you might have negotiated away if you had worked directly with the lender to complete the short sale.

I would encourage you to work aggressively with your real estate agent and your lender to try to get the short sale approved. In the meantime, stay in your home, no matter how far behind you are in the mortgage payments.  

Copyright © 2008, Home Ownership Matters, LLC. All Rights Reserved.

(Please E-mail Heather at homeownershipmatters@gmail.com with any questions, comments or concerns you might have! We appreciate all comments and feedback, so please don't be shy.)

WORD: Demand

And the WORD for Today is:

Demand—has two common applications in the real estate market. The first refers to a letter from a lender showing the amount due to pay-off a mortgage or deed of trust that is in default. The second application of demand refers to the quantity of goods, which can be sold at a given price, in a given market, at a particular time. When there is an oversupply (excessive amount) of a given product relative to demand then prices decline. See inventory homes.

Copyright © 2008, Home Ownership Matters, LLC. All Rights Reserved.

You can find more helpful definitions of WORDS like these in Your Real Estate Advisor which can be purchased at www.DovePublishingHouse.com.

(Please E-mail Heather at homeownershipmatters@gmail.com with any questions, comments or concerns you might have! We appreciate all comments and feedback, so please don't be shy.)

WORD: Deficiency Judgment

And the WORD for Today is:

Deficiency Judgment—is a possible court judgment against a borrower, which can be requested by the lender who has not received full payment of the amount, owed. A deficiency judgment is the difference between the amount the borrower owes to the lender (including all additional acceptable costs) and the actual amount the lender receives through an eventual sale of the property. As the rate of foreclosure has increased, lenders are pursuing consumers more frequently for this deficiency. However, if the loan is an FHA backed loan the consumer can avoid a deficiency judgment by making a good faith attempt to sell their home prior to foreclosure. Even if the home does not sell and even if they later relinquish it through a deed-in-lieu they still avoided the deficiency judgment. While consumers who are owner-occupants are rarely pursued for deficiencies by FHA, investors almost always will be. Federal employees who have a deficiency judgment on either an FHA or VA loan can expect to have their checks garnished for the repayment. Consumers should be aware that walking away from their home does not mean they will not have any further obligation related to the mortgage.

Copyright © 2008, Home Ownership Matters, LLC. All Rights Reserved.

You can find more helpful definitions of WORDS like these in Your Real Estate Advisor which can be purchased at www.DovePublishingHouse.com.

(Please E-mail Heather at homeownershipmatters@gmail.com with any questions, comments or concerns you might have! We appreciate all comments and feedback, so please don't be shy.)

Q&A: Selling "Short"

Q: My house is not worth nearly as much as we owe on it and think they trying to do a ‘short sale’ is what we need to do. Will we still owe the rest of the money that we agreed to pay if the lender lets us do a short sale? Any information you can provide would be helpful.

A: First, your lender would have to approve such a sale (normally called a short sale). It is important that the terms of that agreement stipulate that they will not come after you for the difference (called a deficiency). Whether or not they will waive their right to legally pursue you for the deficiency will depend on several things, including what kind of loan you have, whether or not they are likely to be able to collect on an eventual judgment, how much of the shortage will be covered by the insurance policy they have on the home, whether or not you had demonstrated that you had a hardship which made making payments impossible, etc. In other words, there are a lot of variables.

Most important for you is that the agreement for short sale include a waiver of deficiency judgment and that you have this, in writing, prior to signing closing documents. This is one of those times when a good attorney is just what the doctor ordered to avoid addition financial liability down the road.

Copyright © 2008, Home Ownership Matters, LLC. All Rights Reserved.

(Please E-mail Heather at homeownershipmatters@gmail.com with any questions, comments or concerns you might have! We appreciate all comments and feedback, so please don't be shy.)

WORD: Ready, Willing and Able

And the WORD for Today is:

Ready, Willing and Able—is a phrase in real estate, which most commonly refers to a buyer who is financially sound and ready to purchase a property. A broker is entitled to receive a commission when they present an offer from a ready, willing and able buyer that meets the price and terms of a listing. A standard listing agreement usually states that a seller is obligated to pay the listing brokerage the commission when such an offer is presented even if they decide not to accept it. 

Copyright © 2008, Home Ownership Matters, LLC. All Rights Reserved.

You can find more helpful definitions of WORDS like these in Your Real Estate Advisor which can be purchased at www.DovePublishingHouse.com.

(Please E-mail Heather at homeownershipmatters@gmail.com with any questions, comments or concerns you might have! We appreciate all comments and feedback, so please don't be shy.)

WORD: "General" Warranty Deed

And the WORD for Today is:

“General” Warranty Deed—provides the broadest coverage for the purchaser. It conveys the property to the new buyer but the guarantor is also warranting that he is entitled to the property as well as guaranteeing against any defects in title or outstanding encumbrances on the title. In cases where there is later found to be a cloud on the title, in whole or in part, the guarantor of a general warranty deed will satisfy a claim with a cash award if there is a loss. The ALTA 98 title policy is the insurance which makes that guarantee to the new purchaser.

Copyright © 2008, Home Ownership Matters, LLC. All Rights Reserved.

You can find more helpful definitions of WORDS like these in Your Real Estate Advisor which can be purchased at www.DovePublishingHouse.com.

(Please E-mail Heather at homeownershipmatters@gmail.com with any questions, comments or concerns you might have! We appreciate all comments and feedback, so please don't be shy.)

From the Desk Of..."Mama Said"

“There’d be days like this...”

They try to warn us and still we are surprised. After all, they’re old and tired and out of the loop. How could they possibly have known? Perhaps they ‘remember’ more than we have yet to learn.

REALTORS...“Invisible” Casualties

They are not documented in the statistics, these self-employed (independent contractors) who call themselves REALTORS. They cannot draw unemployment nor is there a plan to cover their non-existent medical insurance premiums. They don’t garner a lot of sympathy in a lot of circles either. And to add injury to insult, they are sometimes blamed for participating in creating the crisis which has engulfed them as well. On a regular basis they call or email me wanting some advice on what can be done to save their personal residence. With increasing regularity attendees in short sale classes were motivated to attend by a need to save their own home. It is a sign of the times.

How Did We End Up Here?

I went on record as early as 2002 stating we were likely to dance dangerously close to a repeat of 1929 if we did not immediately halt the outlandish predatory lending, the crazy new construction financing and the whole speculative silliness on our coasts. After selling real estate for several years and keeping a close eye on the escalating foreclosures moving through the pipelines at Fannie Mae, I could see where we were headed.

My ex-husband and I purchased our first home in 1979 at 16% interest (with excellent credit I’ll have you know) so I had some familiarity with the housing drama of the mid-70’s and into the 80’s. But that was a housing crisis; this is a full-blown economic crisis. That was regional, this is international. I am only 58 and while I could see the tip of a nasty iceberg, I could not see, nor truly imagine, how much of the iceberg was underwater. (No pun intended). A housing problem which is restricted to one industry, or one region or demographic group, cannot create the kind of havoc which we are experiencing as an economic tsunami. The economic crisis which is crippling our country, and the world, will not improve dramatically in the short term; so it behooves all of us to “adjust as necessary”.

Life’s Lessons

The purpose of lessons is to get us prepared for the test. However, as adults, all too often we act as though we have forgotten that tests are a part of life, show up when and where you least expect them and are administered whether you are prepared or not. Welcome to the classroom for the test on “Living Large” or it might be called “Analysis of the Aftermath of an Unattended Bubble”.

I Was at a Crossroad

After a particularly difficult period following my divorce in the fall of 1991, I eventually emerged from an extended fog where I had felt overwhelmed and unable to cope. I had been summarily thrown off the “middle-class, stay-at-home mom, PTO president, Girl Scout leader” train into a new life as a divorcee. The house had been lost to foreclosure and the beautiful Celebrity station wagon (the ultimate status symbol) had been towed away during dinner. I was left to raise two wonderful children, sans child support.

Early Preparation Comes in Handy

In the wee hours of the morning I had a life altering revelation. I called Mama at 6 a.m. (she was already up) to tell her my great news. With a new sense of feeling empowered and ready to take on the world, I happily reported, “I am so glad that I was born poor and Black, in the south.” Her concerned reply was “Girl, are you alright?” I was better than alright, I was ecstatic. I had suddenly realized that I had within me the capacity to over-come things much more challenging and with a lot less maturity and preparation. I was healthy, college-educated (a testament to perseverance) with marketable skills as an interior designer and seamstress. I could figure it out.

Personal Inventory

A long held personal commitment to never giving up took that option off the table. Going home (back to Alabama) was also not an acceptable option for me, even though I strongly encourage others to consider it. What marketable skills could produce enough income to support us in the new apartment? I dabbled with interior design; I could expand it. As an excellent seamstress with strong referrals, I sought and was successful in getting my name added to the list of recommended seamstresses at a bridal shop and 3 home decorations shops. Mildred’s Speciality Fashions had been my hobby; it now became my dominant source of income (you see there was a downturn in the economy, and folks who previously would have called DECORATING DEN now called me instead). I also decided to supplement that income with house cleaning (a day job) which allowed me to continue to be available to the children and work into the night on the design and sewing. I let all my customers know that I needed more work and requested referrals. I expanded my cake decorating hobby and created a business card for that as well.

Long term planning

My income was sufficient as long as I worked 16-18 hours a day, 7 days a week. I needed to plan to cover college costs so I decided to plan for and become a REALTOR. (I know, better hours right?) January 1993 I joined the F.C. Tucker Company full-time, continued to work my evening gigs for 2 years and moved to six figures within 6 years at an average sales price of $150,000. In Indiana. The plan worked, I evolved, my needs and my life shifted and I founded HOM in 2002 because I saw this coming.

Are you where you need to be?

The most important question should not be whether or not you can survive. You CAN if you CHOOSE to do so. The deeper question is whether it is time for you to make a move...

a. Within the real estate industry

b. Into a fresh industry

c. Step back and expand a hobby or long held dream

Silver Linings in Unexpected Places

What looks and feels like a crisis can frequently be the catalyst which moves us to a long overdue change. Take some time and reflect on what is really important to you...family, friends, leisure time, personal development, spiritual growth or something I failed to include. Is there a chance that the upheaval in your real estate career is providing an opportunity to re-align yourself more closely with deeper values? Is this a chance to shed some undesirable aspect of your present life? Are you enjoying managing your rentals? Are you really seeing any gain from them? Could a smaller house, or even an apartment, relieve some pressure and make you life more pleasant? Have you really considered how you want the next stage of your real estate career to go, or are you foolishly grabbing any straw you see floating—hoping it will turn into a lifejacket?

Methinks the REALTOR needs a doctor

As a real estate professional it’s time you had a check-up. I would recommend you be tested for:

• Financial stability (or lack thereof)
  
• Emotional duress and mental stability
  
• Viable game plan
  
• Analysis of both short and long term goals
  
• Prognosis for longevity
  

There are not a lot of clinics which offer the services you need but I can offer you some helpful reading which can be found on this blog, specifically these two entries:

• “Realtor at the Crossroads” on January 25, 2009
• Surviving Debt on May 6

I feel pretty confident you’ll find some other entries which are helpful as well.

You would also benefit immensely from attendance at a “Buying TIME” and “Short Sale: Not Your typical Transaction” class. Both could be scheduled locally, by your real estate board. It is no small thing that funding for these courses might be provided by NAR as part of their Foreclosure Intervention and Prevention Response program. Talk to your local board today about scheduling one, or both, of these classes.

Copyright © 2008, Home Ownership Matters, LLC. All Rights Reserved.

(Please E-mail Heather at homeownershipmatters@gmail.com with any questions, comments or concerns you might have! We appreciate all comments and feedback, so please don't be shy.)

WORD: Gift Causa Mortis, Gift Letter

And the WORD for Today is:

Gift Causa Mortis—is a gift a person makes in anticipation of their death. Since the gift is conditioned upon the death of the donor, it may be revoked before the donor’s death. This is not the same as a will.

Gift Letter—is a letter, which is usually required by the lender, which states who provided the gift, who is receiving the gift and what is the relationship between the two parties.  This gift letter further states that the funds provided will be used a. for the purchase of a personal residence and b.  that no repayment is required. 

Copyright © 2008, Home Ownership Matters, LLC. All Rights Reserved.

You can find more helpful definitions of WORDS like these in Your Real Estate Advisor which can be purchased at www.DovePublishingHouse.com.

(Please E-mail Heather at homeownershipmatters@gmail.com with any questions, comments or concerns you might have! We appreciate all comments and feedback, so please don't be shy.)

WORD: Gift

And the WORD for Today is:

Gift—in real estate, typically means an amount of money provided to a buyer to help them cover their down payment and/or closing costs. A gift is supposed to be a gift—an amount of money, which the buyer is not expected to pay back.  For many years the gift almost always was provided by a family member but might also be provided by a non-profit such as a community development corporation (CDC), occasionally a church or sometimes a state agency committed to helping consumers to attain home ownership.

In modern times, since 1994 with the creation of the Nehemiah Corporation, a new kind of gift program became a part of the real estate industry. Unfortunately, with the gifts provided from this agency and many similar agencies, which are set as non-profits by IRS guidelines, the funds provided to the consumer ARE NOT IN FACT GIFTS but have been added to the consumer’s loan so that in fact they are borrowing the down payment. This is almost always true when the consumer is building and using this “gift”; less frequently used when they buy an existing house. 

Copyright © 2008, Home Ownership Matters, LLC. All Rights Reserved.

You can find more helpful definitions of WORDS like these in Your Real Estate Advisor which can be purchased at www.DovePublishingHouse.com.

(Please E-mail Heather at homeownershipmatters@gmail.com with any questions, comments or concerns you might have! We appreciate all comments and feedback, so please don't be shy.)

Q&A: Gifting Property

Q.  My wife and I own a piece of property which we would like to give to someone else but we are not sure how to go about doing that.  I was told it is a simple procedure and does not require an attorney.  Can you direct us to what we should do?

A: The process is actually very simple to complete though you really do need to consult an attorney about the implications of such a move since once it’s done, it’s done.

To transfer title to someone else, to ”gift” your real estate property to them, can usually be facilitated by completing a “quit claim deed” which identifies you as the owner of the real estate, provides the address and legal description of the property to be transferred and the name of the party to whom you are giving it. Most often this is a one page document, you can get a copy from many large real estate offices or an office supply store. 

The form will need to be notarized and then recorded in your local recorder’s office. A small fee will apply ($35-$50). Please understand that you have now transferred ownership rights in the property. This has NO impact whatsoever on who is responsible for making the payments on this same piece of real estate. Having said that, this is not a viable option for dividing up property in a divorce if the objective is to change who is responsible for the mortgage. Refinancing the home is the way to accomplish that objective with one party taking out a loan to pay off the old mortgage which simultaneously changes the ownership to only one party.

Again, talk to an attorney about this very important real estate transaction. Don’t let the fact that it is simple and commonplace trick you into believing it does not have major consequences.

Copyright © 2008, Home Ownership Matters, LLC. All Rights Reserved.

(Please E-mail Heather at homeownershipmatters@gmail.com with any questions, comments or concerns you might have! We appreciate all comments and feedback, so please don't be shy.)

WORD: Maintenance Fee/Maintenance Reserve

And the WORD for Today is:

Maintenance Fee—is the amount, which is charged to the owner of each unit of a condominium or planned unit development to cover their share of maintenance costs. 

Maintenance Reserve—is the amount of money set aside in a special account in order to cover repairs and maintenance, which are anticipated in the future. 

Copyright © 2008, Home Ownership Matters, LLC. All Rights Reserved.

You can find more helpful definitions of WORDS like these in Your Real Estate Advisor which can be purchased at www.DovePublishingHouse.com.

(Please E-mail Heather at homeownershipmatters@gmail.com with any questions, comments or concerns you might have! We appreciate all comments and feedback, so please don't be shy.)