Preston's Blog

Many homeowners seeking a loan modification to lower their monthly mortgage payments and avoid foreclosure continue to find the application process a complex web, often causing them to give up before their application is ever reviewed by their mortgage company.

Certified housing counselors for CredAbility, a national nonprofit credit counseling and education agency, speak daily with hundreds of homeowners seeking a loan modification or other solutions to keep their homes. The organization has several tips for people that will help them increase the chances that their application is reviewed as quickly as possible.

"A homeowner needs to collect and send several documents that tell the mortgage company why you need a modification, and it needs to be done in a timely, organized manner," said Michelle Jones, senior vice president of counseling for CredAbility. "Once a homeowner has submitted these documents, they need to stay in regular contact with the company. With hundreds of thousands of applications under consideration, homeowners must take matters into their own hands to make sure their application gets to the right person at the company."

Here are CredAbility's recommendations for homeowners seeking a loan modification:

• Speak With a Nonprofit Housing Counselor to Understand Investor Rules for Your Loan. Every homeowner's mortgage loan is different, so don't rely on information you may have heard from your neighbor or your sister-in-law, even if they received a loan modification. For example, if your 30-year, fixed interest rate loan is owned by one investor, and your neighbor's is owned by another investor, the rules governing a loan modification may be quite different. A certified counselor at a nonprofit credit counseling agency can help you find the investor who owns your mortgage and determine your options.
• Submit All Documents That Prove Your Current Income. Income verification is critical, but homeowners sometimes don't provide their mortgage company with recent documents. If you lost a job in June, don't provide pay stubs from March. In addition to recent pay stubs and other traditional income sources, homeowners should also provide a document called a "contribution letter." This letter explains the source of any household income that is not easily verified. For example, a servicer will want to know the total household income of a married couple, even if only one person's name is on the loan. The letter could also include income verifying that you have a roommate that pays rent.
• Submit Current Bank Statements. Recent bank statements allow your mortgage company to verify your income and expenses. This information enables the mortgage company to see your monthly expenses for food, utilities and other expenses and determine whether you will have enough money to make your mortgage payment.
• Mail Your Documents to the Mortgage Company. Many people prefer to send all of their documents by fax or scan their documents and send them via email. However, postal mail is usually more reliable, especially if it's addressed to the person you spoke with at the mortgage company. Faxes often get lost.
• Label Each Page With Your Name and Loan Number. One of the most common complaints among homeowners is that the mortgage company loses their documents. You can help your own cause by writing your name and loan number on each page of every document.
• Fully Explain Any Recent or Unique Income Changes. For example, a bank deposit may show various one-time transactions, such as an asset sale, cash gifts from family members or a bonus. Unless you explain this one-time increase in income, the servicer may not understand it and use this information to deny your loan modification.
• Include a Timeline in Your Hardship Letter. Every application for a loan modification must include a "hardship letter" that explains the reasons for your request. But the letter must have specific dates explaining when an income loss has occurred. If your spouse lost her job on July 15 and your family income will decrease by $3,000 beginning in August, your letter needs to provide these details.
• Call Your Mortgage Company Every Week. Many homeowners work extremely hard to submit all of their paperwork to the servicer - and then wait for weeks before picking up the telephone to call them about the status of their application. This is a mistake for several reasons: the person handling your application may quit; the application may be transferred to another person; the company may need more information. You get the picture.

If you a friend or family member want a list of nonprofit housing counselors in the Phoenix Area contact me at 602.743.1410 or preston@buyhomeinphoenix.com.

Source: RISMEDIA

Scammers Never Stop

The prospect of losing your home to foreclosure is beyond frightening. It is easy to see why some home owners jump at any help offered to keep their prized possession.

With the expansion of government efforts like Home Affordable Modification Program (HAMP) and Home Affordable Modification Program (HAMP) inevitably encourages the rise of scammers hawking private sector initiatives promising to protect distressed borrowers.

Red Flags

The Arizona Attorney General  says that if you are If you’re looking for foreclosure prevention help, beware of any business that:

• guarantees to stop the foreclosure process – no matter what your circumstances.
• offers to make your loan more affordable and help you avoid foreclosure.
• instructs you not to contact your lender, lawyer, or credit or housing counselor.
• collects a fee before providing you with any services.
• accepts payment only by cashier’s check or wire transfer.
• encourages you to lease your home so you can buy it back over time.
• tells you to make your mortgage payments directly to it, rather than your lender.
• tells you to transfer your property deed or title to it.
• offers to buy your house for cash at a fixed price that is not
set by the housing market at the time of sale.
• offers to fill out paperwork for you.
• pressures you to sign paperwork you haven’t had a chance to read thoroughly or that you don’t understand.

Source Of The Source

If you or a friend or family member needs a referral for attorneys, accounts, housing counselors or other professional services and trades people contact me at 602.743.1410 or preston@buyhomeinphoenix.com.

This Crystal Ball also known as the ARMLS Pending Price Index™ (PPI™) is a predictive market tool exclusive to ARMLS. The Index uses pending sales data from the Arizona Regional MLS system to predict Median sales price and Average sales price three to four months into the future. This information is only available through ARMLS the sole aggregator of pending sales data. The ARMLS PPI is part of "STAT" a monthly newsletter for REALTORS® that gives the most current market statistics. To get the full STAT pdf report click here.

Pending sales data predict that the average price will drop slightly in July to $178.6K and continue downward at a steeper rate in August ($170.3K) and September ($156.4K) then level out in October. The Median sales price shows more volatility rising fractionally in July and then falling back a bit in August (to $125K) and more in September before recovering in October.
If the predictions holds true, the Median price for September would be the lowest in the preceding nine years. The accuracy of the ARMLS PPI™ diminishes the further into the future the prediction are made because the sample size diminishes with time. Overall, the Median and Average sales prices have remained relatively flat over the previous 12 months with only small monthly fluctuations. The market appears to be in a stable pattern although it is prone to slight dips

“ARMLS PPI” is a trademark of Arizona Regional MLS.

As you sit reading this blog, what does your posture look like? Are you sitting up straight or slouching? Remembering to sit, stand, walk or move using correct posture will have long-term benefits that are outlined in an article I will share with you.

If you have suffered from joint or back pain, as I have, you've probably asked yourself "Why me?" Those of us who have been there know just how debilitating, frustrating and painful it can be. Send me an email and I will share the article with you outlining how to avoid back pain through improved posture. It offers advice on proactive steps to take to correct this often overlooked aspect of good health.

The benefits of following these steps to good posture are numerous. Besides improving health, overall physical appearance and physique are greatly enhanced, making you look thinner, taller and younger.

After you receive this article let me know what you think.

Oh By The Way™...I'm never too busy for your referrals!

The average American family will spend aver $600.00 for back to school clothing, supplies and equipment this year.

The most valuable thing you can give your school bound children does not cost a penny. It's your support of their education. Many studies show that excellence in student achievement is linked to active parent participation.

Children of involved parents make deference. These children have better grades, better attitudes and better behavior. What can parents do?

• Develop a good relationship with your child's teacher.
• Volunteer in the classroom.
• Go on field trips.
• Instill a love of reading.
• Limit television viewing, video games, cell phones.
• Know your child. If you or their teachers think they needs an evolution make sure they get it.
• Be available. Teach your children the values you want for them.

Do not underestimate the value of your contribution! You are the first and most important teacher your child will ever have

With short sales making up 21% of sales this year and 30% of the active listings in the Phoenix Area and with foreclosures at 39% of closed sales this year let’s set the record straight on some common short sale myths.*

• Listing my home as a short sale is embarrassing. Anytime we get ourselves into a tough financial situation it can cause some embarrassing feelings. It is important to remember that those feelings will not help you get back onto stable financial ground. You need to overcome your feelings and do what is right to protect your financial futures.
• Buyers aren't interested in short sale properties. Short Sale properties are often times available at a competitive price to other properties on the market. In many cases, short sale properties are very well cared for and have not had to endure the deferred maintenance of a REO property. Short Sale properties are in great demand in the Phoenix marketplace. 
• There's not enough time to negotiate a short sale before foreclosure. A good negotiator takes into account the timeline affiliated with a foreclosure. There is always a chance that a short sale can be negotiated. However, the only way to know for sure is to try.
• The bank would rather foreclose than complete a short sale. Banks do not want to foreclose on property. It is expensive and carries a high level of liability once the bank owns that property as an REO. Wherever possible, banks are seeking other loss mitigation options before foreclosure.
• Short sales are impossible and never get approved. Short sales are complicated, but not impossible. Short sales approvals are negotiated every day.
• You must be default on your mortgage to negotiate a short sale. Short sales are not a function of default status on a mortgage. They are the result of the bank mitigating a potential default situation that, in the long run, will cost more money to the investors. Many short sales are completed in instances where the borrower is not in a default.

Other things to remember

Humidity makes room air feel warmer, so reduce indoor humidity. Minimize mid-day washing and drying clothes, showering and cooking. When you must do these things, turn on ventilating fans to help extract warm, moist air.

Avoid landscaping with lots of un-shaded rock, cement, or asphalt on the south or west sides of your home because it increases the temperature around the house and radiates heat to the house after the sun has set.

If the attic isn’t already insulated or is under-insulated, insulate it now. Upgrading from 3 inches to 12 inches can cut cooling costs by 10%.

See previous posts for Parts 1 through 5.

Source: RISMEDIA

Roof and Walls

Paint your roof white – If you’ve got a flat roof paint it with a specially formulated reflective paint or just paint it white. The reflective effect will help to keep the rooms under the flat roof much cooler.

See previous posts for Parts 1 through 4.

Source: RISMEDIA

Plants

Plant trees or shrubs to shade air conditioning units, but not block the airflow. A unit operating in the shade uses less electricity. Deciduous trees planted on the south and west sides will keep your house cool in the summer and allow the sunlight to warm the house during the winter.

See previous posts for Parts 1 through 3.

Source: RISMEDIA