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I Survived Real Estate 2008 – Part 16
I Survived Real Estate 2008 picks up with the panel interview from the last session where Bruce Norris speaks about how Wall Street keeps calling to find out when bottom is so they can profit even though they are part of the reason were in this current situation.
Rick Sharga speaks about massive pools of money purchasing these loans at deep discounts and then fixing the principles of the people in the homes.
Bruce then responds by speaking about HR3221 about how HUD can purchase first trust deeds at a discount and how the new structure would grant them to modify the loan of the mortal in the property. Bruce worries about the ramifications of this program. It is limited in who can apply since it applies to adjustable mortgages only. The people who really get burned are those next door who eligible for a fixed loan and are making the payments. They did everything correctly but they dont apply for the principle reduction. With California being a non recourse state, Bruce worries the dominos that might fall. Bruce then asks Philip Tirone if bailing from mortgages is becoming more acceptable.
Philip states clients dont care about the moral issue of travel away; they are more concerned about the credit ramification. Philip speaks about the raised loan limits and how everyone thought it would make a difference. They think things are going to help but when you get into the legislation, it doesnt.
Bruce concurs with Christopher Thornberg in that the median price has to become more reasonable. Christopher thinks another 6 months and everyone will qualify.
Tommy Williams brings up the very important point of moral hazard in letting something like bailouts occur. Not holding consumers accountable sets up a larger problem for the future.
Bruce asks Christopher about Merrill Lynch taking .22 cents on the dollar for a $30 billion package of CDOs. He states they actually got 5% in cash and carried back a note and guaranteed the pile. Bruce asks whose money was actually lost. Christopher states it was the consumer investing in their company. Christopher states this buyout is another instrument and bookkeeping mechanism. The financial system, Christopher says, is an absolute mess. All banks are having a difficult time. Were having an issue with cash because of it. [Part 17 Continues the panel discussion]
Platinum Sponsors:
The San Diego Creative Investors Association (SDCIA): http://www.sdcia.com/
Investors Workshops: http://www.investorsworkshops.com/
Frye / Wiles: http://www.fryewiles.com/
Proxibid: http://www.proxibid.com/
White Home Catering: http://www.whcatering.com/
MVT Productions: http://www.mvtproductions.tv/
Pechanga Resort and Casino: http://pechanga.com/
The Denver Nuggets: http://www.nba.com/nuggets/
The Chicago Bulls: http://www.nba.com/bulls/
The Cleveland Cavaliers: http://www.nba.com/cavaliers/
Gold Sponsors:
7 Steps to a 720 Credit Score and Philip X. Tirone- http://www.7stepsto720.com/
Chicago Title – https://www.ctic.com/
Elite Auctions – http://www.sellwithauction.com/
Foreclosure Trackers – http://www.foreclosuretrackers.com/
Investors Resource Center of USA LA and Steve and Robyn Love – http://www.irca-losangeles.com/
Las Brisas Escrow – http://www.lasbrisasescrow.com/
National Club of Real Estate Investors and Sam Saddat – http://www.ncrei.com/
Northern California Real Estate Investors Association (Norcalreia) and David Granzella – http://www.norcalreia.com/
North San Diego Real Estate Investors and Linda Wessels – http://www.nsdrei.org/
RealtyTrac – http://www.realtytrac.com/
RE Ventures and Michael Pines – http://www.reventuresrealty.com/
Real Estate Investors Club of Los Angeles and Phyllis Rockower – http://www.realestateclubla.com/
Real Wealth Investor and Scott Whaley – http://www.realwealthinvestor.com/
Saddleback Valley Communities – http://svc4.com/
Silverstar Finance and Janet French – http://www.silverstarfinance.com/
Sunset Hills Memorial Park and Mortuary – http://www.sunsethills.cc/
The Mission Inn – http://www.missioninn.com/
The Mortgage Equity Group – http://themeg.net/
The Naked Real Estate Investor Club – Rosie Nieto – http://www.nakedrealestateinvestorsclub.com/
The Short Sale Processor and Nick Manfredi – http://www.theshortsaleprocessor.com/
Virtual Real Estate Tour and Layla Tusko – http://1wealthcreation.com/
Wholesale Capital Corporation – http://www.wccmtg.com/
Duration : 0:8:13
Taxes on Short Sale, Loan Modification & Mortgage Foreclosure 6 Nov08 Recourse vs Non-Recourse
Tax on 1099C, Cancellation of Debt Income; Short Sale, Loan Modification & Foreclosure. Exception; Mortgage Forgiveness Debt Relief Act, Bankruptcy & Insolvency. Go To http://RealEstateMarketingThisWeek.com
Part 6 (Excerpts)
Arizona is not a recourse state, so chances are you will not owe 1099 C Income
In Arizona, typically its not a recourse state, so if they are telling you that theyre going to garnish your consequence because you didnt pay back your entire mortgage, there is a local bank ,that was threatening a very good colleague of ours about a small second mortgage that mortal had taken out. Threatening to send it to collections and garnish her wages. It simply isn’t going to happen.
But nevertheless, there is still the tax implications that apply, if you need to navigate through this maze. There is a lot to it, you need to protect yourself. You talked about bankruptcy is one of those exclusions, right? One of the problems with bankruptcy is people dont comprehend the bankruptcy laws. They are so tight now and your feet are really held to the fire from the federal government right now. It’s not like you just didn’t make your mortgage payment, so you go file bankruptcy, it’s just not realistic. Assuming bankruptcy is the last resort option for everybody. And we certainly want to refrain that, it would not be sound financial advice from any credible source that I can think of.
Let’s achievement through a case scenario, somebody who is listening to this broadcast, their head is spinning right now, they’re thinking, oh my gosh. I should have known about the tax implications, a short understanding versus loan modification. Let’s begin at the top and work through a swift scenario. And then we’ll point out the specifics of what they should be considering right now.
For example, we speak about this all the time and to your credit Michael Barnes and to Velocity Financials credit, you were primeval in bringing out the loan modification for people who were in a distress situation regarding a mortgage, maintaining or keeping up with the mortgage payment. So you started going down the path where the refinance started to become a much more difficult option, with new constraints and all the other factors that led to part of this economic crisis, a loan modification has become a buzz topic today. Driving to the station today, driving down Camelback Road, I see a sign on the corner. You know, one of those stick in the ground, homemade jobs, that states don’t refi a Loan, modify, with some success rate and the phone number.
Hang on there I want you to say the success rate. The sign literally said, 99% success rate, and it goes back to the point that you prefabricated when they say that they can reduce your mortgage principal by tens of thousands, hundreds of thousands of dollars, thats the absolute last resort for any lending institution. Thats not what this is about, so let’s begin with that, then we will work on the tax ramifications of how that might work in the overall financial strategy.
I am familiar with the loan modification industry here in Arizona. There is no regulation, unfortunately. We at Velocity Financial work with a national network of attorneys, so if you’re the guy in El Centro California, or youre in Phoenix, or youre in Alaska it doesn’t matter where you’re at. We have someone who is an expert in that field in that say because the laws are different. But without the regulations some mortal with the unsightly yellow sign on the side of the road states he has a 99% success rate, I don’t believe him it’s probably not using an attorney, who knows, dont purchase into that garbage. Were going to tell you the truth, if we cant do a loan modification, we will tell you that we cant do it. And if a loan modification is not the ideal thing for you, you can find the some of these other options.
Duration : 0:5:19
Bailout, Mortgage Fraud- BB&T Bank, Predatory Lending, Subprime
Predatory Lending, Mortgage Fraud,Real Estate,Foreclosure,Subprime,FBI,FDIC,Bailout, Judicial Injustice,Value inflated 136%, BB&T Bank,loan, congress, Judicial Injustice, Adjustable Rate,News,CNN, Mortgage
Duration : 0:5:2
Real Estate & Mortgage 4 – Foreclosure Meltdown Fraud & Scams Dec08 – Mortgage Backed Securities
Amidst the Real Estate & Mortgage Meltdown; Foreclosure Fraud & Scams; Real Estates Future is Great. First Time Home Buyers, FHA Loans & Seller Paid Closing Costs. Go To http://RealEstateMarketingThisWeek.com
Part 4 (Excerpt)
Mortgage Backed Securities, Collateralized Debt Obligations and Tranches Oh My!
Now, I place the colorful title on How to Screw the Bank that Screwed You for no other reason than to get people to click on it to get the information, because frankly, a lot of people were given really bad loans, were given really bad advice, and sometimes you have to fight back.
Here is one of the things and again Ill try to make this as uncomplicated as possible. Let’s state you purchased the home and you got the loan through a mortgage broker. Well that mortgage broker didnt really give you the loan. They purchased that loan from a wholesaler of mortgages. That wholesaler of mortgages, in turn purchased that loan from one of those large huge Wall Street banks, most of which are out of business right now.
Important thing to point out if I may, Velocity Financial is a mortgage broker, we do get our money from several wholesale banks, I just wanted to point that out because we’re glad were a broker.
Just to continue the analogy. So the broker purchases it from a wholesaler, who purchases it from the Wall Street bank, and like I said, most of them are out of business now. And what the Wall Street bank did with thousands of these loans worth billions of dollars, they place them all together into what is known as mortgage backed securities. That is the stuff you hear like Fannie Mae is selling and there is an interest rate place on them, and what happened to these mortgage backed securities is they in-turn were purchased up by other Wall Street banks, combined with other mortgage backed securities and they were called collateralized debt obligations.
Well then these brainiacs on Wall Street decided to chop these collateralized debt obligations up into what is referred to as tranches. So let’s state you had your ideal calibre AAA borrowers in the top tranch . And obviously your ZZZ borrowers were in the bottom tranch. Each one of them was given a specific interest rate, apiece one of them was rated by a bond rating firm, and apiece one of them was given insurance.
Well, what happens is as these got split up and sold over time the notes on the mortgages go with the debt itself. So CDO over in Bangladesh owns your mortgage now, but here is the problem, they dont have the paperwork.
So the reason I went through this whole story is in case your bank comes to you and says were going to foreclose what you want to do is go and get yourself an attorney and you want this attorney to go to this bank and state we want you to establish to us that you have standing, that they have the legal right to come after you and foreclose on you. And here is the thing, if they dont have the paperwork, if they dont have the note on the property, they cant establish that they have standing. So whether its the wholesaler, who is foreclosing on you, whether its the servicer, whoever it is, chances are very good that they dont have this note.
So again, he got a tiny complicated. You want to go to the website http://mortgageanswerman.com and there are several articles there, and a lovely tiny chart that I drew up, except that it will be much nicer than this piece of paper, and I will have all the information there. I had a friend just recently who was in foreclosure and she prefabricated the phone call, and she said, you can't foreclose on me without the original note. Now eventually it got foreclosed on, but it delayed it several months until they were healthy to find that note. Chances are they might never be healthy to find that note.
And in many states, including Florida and Ohio they are very successful at using this manoeuvre to stop or absolutely do-away-with the foreclosure sale. We dont necessarily want to encourage people to go down this path, right? Were looking for a stall essentially?
Well, hopefully no one will ever have to get to that point. But if you believe that your servicer, your mortgage company is not being nice to you. Especially if you call them up and want to do a loan modification, and they are dragging their feet, filing foreclosure and coming after you, you have to protect yourself. And this is one of the ways you can protect yourself by hiring an attorney and suing them for demand of standing
That is one of the things that I want to speak about that Velocity Financial is involved with a national network of attorneys who do this sort of work. Velocity Financial does not charge an upfront fee for these types of loan modifications, we do hire an attorney and they work with the national network of attorneys to work on your behalf. They do charge a retainer, of course, if they are going to fight for you they need to be paid, however, there are no upfront fees…
Duration : 0:6:36
I Survived Real Estate 2008 – Part 22
I Survived Real Estate 2008 – Part 22 Special thanks to the following partners and sponsors without whom the event would not have been possible:
Platinum Sponsors:
The San Diego Creative Investors Association (SDCIA): http://www.sdcia.com/
Investors Workshops: http://www.investorsworkshops.com/
Frye / Wiles: http://www.fryewiles.com/
Proxibid: http://www.proxibid.com/
White Home Catering: http://www.whcatering.com/
MVT Productions: http://www.mvtproductions.tv/
Pechanga Resort and Casino: http://pechanga.com/
The Denver Nuggets: http://www.nba.com/nuggets/
The Chicago Bulls: http://www.nba.com/bulls/
The Cleveland Cavaliers: http://www.nba.com/cavaliers/
Gold Sponsors:
7 Steps to a 720 Credit Score and Philip X. Tirone- http://www.7stepsto720.com/
Chicago Title – https://www.ctic.com/
Elite Auctions – http://www.sellwithauction.com/
Foreclosure Trackers – http://www.foreclosuretrackers.com/
Investors Resource Center of USA LA and Steve and Robyn Love – http://www.irca-losangeles.com/
Las Brisas Escrow – http://www.lasbrisasescrow.com/
National Club of Real Estate Investors and Sam Saddat – http://www.ncrei.com/
Northern California Real Estate Investors Association (Norcalreia) and David Granzella – http://www.norcalreia.com/
North San Diego Real Estate Investors and Linda Wessels – http://www.nsdrei.org/
RealtyTrac – http://www.realtytrac.com/
RE Ventures and Michael Pines – http://www.reventuresrealty.com/
Real Estate Investors Club of Los Angeles and Phyllis Rockower – http://www.realestateclubla.com/
Real Wealth Investor and Scott Whaley – http://www.realwealthinvestor.com/
Saddleback Valley Communities – http://svc4.com/
Silverstar Finance and Janet French – http://www.silverstarfinance.com/
Sunset Hills Memorial Park and Mortuary – http://www.sunsethills.cc/
The Mission Inn – http://www.missioninn.com/
The Mortgage Equity Group – http://themeg.net/
The Naked Real Estate Investor Club – Rosie Nieto – http://www.nakedrealestateinvestorsclub.com/
The Short Sale Processor and Nick Manfredi – http://www.theshortsaleprocessor.com/
Virtual Real Estate Tour and Layla Tusko – http://1wealthcreation.com/
Wholesale Capital Corporation – http://www.wccmtg.com/
Duration : 0:6:44