Upside Down Mortgage

Archive for September, 2008

Loan Modification Seattle

The tidal wave of foreclosure properties has definitely changed the landscape for Realtors.  In my 21 years as broker, there has never been a time when the need to understand the short sale process has been more urgent.  Unfortunately, understanding the process is vastly different than being successful at closing short sales.  The National Association of Realtors just released a report which shows that only 15% of short sale listings actually consummate in a closing.  That means we are wasting a lot of time on deals that we never get paid on.  What is wrong with the system?  I recently asked this question of Paul Pritchard, CEO of Home Advocate Trustees, a defaulted property acquisition company based in Seattle, Washington.

“The core problem is two-fold.  First, when you are working on a short sale as a Realtor in a traditional fashion, the lender has all of the leverage.  Their word is final, and negotiations are very limited.  Second, the sheer volume if defaulted properties has completely overwhelmed their systems.  There is nothing that we can do about the second issue, but we can and do affect our leverage with the bank by an aggressive legal defense that puts the leverage on our side, and gets us results.”

By approaching the banks from the legal side, Paul’s company is able to bypass the ‘loss mitigation’ departments, and deal directly with the legal departments at the banks.  The result, My Pritchard says, is a much higher success rate.  “When a seller assigns their property to our company, we immediately begin a legal defense that gives us leverage.  We demand the seller produce the original note, and in some cases we also do a forensic audit on the loan to look for TILA, RESPA and various other violations.  Because we are the new title holder, we now have legal standing and rights and we aggressively defend these rights.  What is our goal?  To stop the foreclosure process for the seller, and to buy the ‘paper’ or the actual note directly from the banks.  What’s the outcome?  Same result to the seller as a short sale, but we do all the work and our success rate is better than 90%”

Will these same techniques help Realtors with our short sale listings?  I asked Mr. Pritchard to elaborate on this.  “Absolutely,” said Paul.  “We close over 100 transactions per month now, all across the country and Realtors are our #1 source of referrals.  Often they refer a transaction to us after they have tried the short sale route, but are frustrated.  We provide a win-win scenario.  The Realtor is paid a referral fee up front, and after we settle and purchase the note from the bank, we re-list the property with the referring Realtor at a 6% commission.  The Realtor community has really gotten behind our service, and they see tremendous value for their client and for themselves.”

Mr. Pritchard said agents who are interested in becoming an affiliate should visit their website, and click on the affiliate link at the top for instructions to sign up.  It’s free and they provide video and ongoing training to help you be successful.
One thing is for certain.  Our industry will need to continue to find creative solutions to deal with the problems posed by the foreclosure crisis.  The traditional models of listing a short sale are just not working, and alternative solutions are needed.  Home Advocate Trustees provides an alternative that appears to meet the needs of all parties involved.

Home Advocate Trustees is based in Seattle, Washington.  The main website for Home Advocate Trustees is www.walkawaytoday.org, and complete contact information can be found on their website.

About the Author:

I am genuine and down to earth person. I love going out and meeting people. I have a very outgoing personality. I am fun to be around. My hobbies are going to the gym, swimming and cycling and my favourite is socializing with my friends. I love to travel with my family

Article Source: ArticlesBase.com - Home Advocate Trustees

Close your Loan Modification and Short Sale

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The Subprime Crisis Down Under

Turn on the TV news during the finance section and the odds are they may be talking about the current global credit crisis. While there is no shortgage of talk about the the crunch it's easy to loose sight of how it started and what the causes are.

We keep hearing about the term 'subprime lending'. There are people out there, who do not qualify to get a loan at market rates on account of their low income levels, inability to meet the required down payment, employment status and credit history. Such borrowers have been able to obtain finance from banks on account of the boom time in the housing sector in the US. These borrowers obtained mortgage in the belief that they would be able to obtain refinance on favorable terms at a later date. In fact, it is understood that the subprime mortgage lending in the US was to the extent of $ 1.3 trillion dollars was the figure at months end March 2007.

As prices began to fall the US housing bubble truly burst. With ARM rates being set higher, foreclosure and defaults started. The chickens had come home to roost with 30% of this lending having turned delinquent on account of inability to repay. Mortgage lenders like banks and financial institution were affected first. The losses to the banks have been heavy with subprime lending said to be responsible for $379 billion as of May 2008. Many of these lenders, through the process of securitization, have passed on rights to receive mortgage payments and the related default/credit risk to third parties who have invested in this type of lending through 'Collateralized Debt Obligations' (CDO) and 'Mortgage-backed Securities' (MBS).

Institutions, corporates and even individuals who have invested in CDO or MBO have lost significantly on account of the decline in the underlying asset value. Stock markets across the world have taken a beating.

Lenders have reduced their lending on account of the aftershocks of the subprime crisis and its rather unclear consequences on financial institutions. On the other hand, corporates have not been able to get funding support for issuing Commercial paper. This has led to what is now termed as 'credit crunch'. Credit is needed badly, but lenders are not willing to lend in the aftermath of the subprime crisis and this has brought about a liquidity crisis in the corporate finance sector.

While Central banks all over the world are taking suitable remedial measures to make funds available to member banks for on-lending to good borrowers and lend a boost to the Commercial Paper segment, the subprime crises has put many economies on a downward spiral. This is because less credit availability combined with high interest rates leads to reduction in investment and reduced consumer spending. These are needed for fueling economic growth.

Another contributor to the credit crunch is thought to be the rocketing all prices and the US led war in Iraq. The budget deficit in the US is the highest at this point of time and this need to be reined in.

It's been said before that when America sneezes the rest of the world catches a cold. The subprime crisis has really proved this and how in the age of a global economy a national economic issue will quickly become a global one. Economies of countries are linked. This has been proved in no mean measure by the subprime crisis.

About the Author:

This article on global economic conditions is by finance industry writer Richard Greenwood. Richard runs a number of finance comparison websites to compare bank products including savings account banks, personal loans and credit cards. High interest savings accounts from leading banks have become increasingly popular during the credit crisis as banks seek to boost their cash deposits.

Article Source: ArticlesBase.com - Credit Crunch Explained - What's Caused the Global Credit Crisis?

Burning Down The House: What Caused Our Economic Crisis? V2

Housing Bubble Singapore

Singapore - perhaps the most international destination of Asia is also referred as the Lion City. Merlion – the half fish and half lion statue, situated at the Merlion Park is the reason why Singapore is called the Lion City.  Although the place is quite small and compact, it is developed as a diverse and cosmopolitan city state. With many business opportunities to grow and endless options to enjoy, Singapore is truly a tourist’s paradise.

Fun never seems to end in Singapore and people who love exploring new places, can enjoy endlessly in Singapore. Adorned with adjectives like clean, efficient and modern, the island of Singapore has many other appealing aspects which make it a place worth to visit. This article presents few places of tourist interests in Singapore which might attract you to visit this famous tourist destination.

Boat Quay

Singapore seems to believe in ‘Work hard and party harder’ culture and a glimpse of this can be seen at Boat Quay where hundreds of working professional assemble to party and relax. Friday nights should never be missed to experience the real nightlife of Singapore when people enjoy the whole night partying to stress out and preparing to take up the challenges of an upcoming week.

China town

China Town in Singapore bubbles with various cultural activities and different kinds of small shops. The famous ethnic atmosphere of Singapore is visible in China Town only with several stalls and shops offering mouth-watering local delicacies. As the name goes, traditional Chinese stuff and medicinal herbs are easily available in China Town. Once you come here, you can not resist yourself from shopping.

Jurong Bird Park

It is a park known for open concept. Housing more than 600 species of birds Jurong Bird Park is the largest in Asia-Pacific region. This park also holds recognition on international level also as All Star Bird Show is held here only. The tallest man-made waterfall is just another addition to the beauty and uniqueness of this place.

National Orchid Garden

Among several botanical gardens and parks that Singapore is very famous for, the National Orchid Garden is one of the most treasured tourists’ points of interest. This garden offers a collection of around 3000 species of orchids, including those that grow in this island only.

Sentosa

Located quite close to Singapore main land, Sentosa is a lovely island resort that requires at least a full day time. Starting with a cable car ride, the fun to this place begins before you actually hit the island. Once you reach there, you will get stuck by the stunningly beautiful panoramic sights followed one by one. Besides many fun and water-based activities at the resort, the Underwater World is the main attraction of this island resort.

Singapore Zoo

Singapore boasts the first open zoo of the world, which is the main tourist attraction here. You find a wide range of species belonging to different climatic regions.  What makes this zoological garden more interesting is that the visitors get an opportunity to observe the animals more closely since the animals in this park are not confined in cages like any other conventional zoo. Night Safari too is a famous tourist attraction here.

Plan your trip to Singapore

Singapore is synonymous with beautiful and exciting locales, delicious cuisines, shopping and much more. Now what holds you back to plan a trip to this tourist destination! Accommodation is never a problem in Singapore as the island city offers a wide range of luxurious as well as budget hotels. Since a huge number of tourists head towards Singapore once tourist season approaches, so you must book a good Singapore hotel before you land here. It is suggested to spend some time on the internet and read Singapore hotel reviews to get a better knowledge about accommodations here.

About the Author:

Find the best cheap hotel deals in Singapore and other cities in Asia on Sprice.com, a leading travel search engine.

Article Source: ArticlesBase.com - Places you must not miss in Singapore

Mike Norman says Peter Schiff was Wrong