Several months ago my best friend, Ann, who lives in upstate New York, called and said she had decided to take money out of her retirement account and buy a second home. In her words – she wanted to “diversify her losses”.   Ann began her search in North Carolina.  After several conversations about the incredible value of homes in Florida and the increasing number of foreclosures, she agreed that Florida would be the best option. And, she would have the added “perk” of living near me!

She started looking with a local Realtor, Diana, and the “virtual” search began online.  For several months Diana and Ann looked at foreclosures and short sales via email.  Once several homes were picked for selection, Ann booked her flight to Florida – checkbook in hand - for the whirlwind weekend to find a second home.  Being a wise and conscientious Realtor, Diana had also included some new homes in the search mix.  Why new homes? Good question.  Ann wasn’t even considering a new home since prices were so low on foreclosures. Diana wanted her to understand the good deals on new homes too!

After looking at nearly a dozen foreclosure homes, it was getting quite depressing looking at homes that were once beautiful, well-kept homes that were now abandoned, dirty, moldy, stripped of appliances, lighting fixtures and doors….yes, interior doors!  One home was so infested with roaches, we literally ran out of the house! 

We started re-thinking what seemed to be “good prices” on foreclosures.  Ann may be able to buy a home that was substantially below the previous purchase price, but was it really a good price… a good investment?  What types of mold or insect problems existed behind the walls?  What would it cost to get the house cleaned up – carpet replaced, walls repainted, appliances replaced.  Would the air conditioning system have to be replaced?

On the third day of her search, Ann and Diana drove into a community of new homes in Melbourne by Stanley Homes.  That’s when Ann made her decision to buy a new home!   Not only would she have all new EVERYTHING, but she would also have peace of mind knowing that her new home was built by a third generation, local custom builder and backed by a new home warranty.  Ann also felt good about buying a new home because they are more energy efficient and the new Florida State building codes require builders to use materials that can withstand hurricane forces much better than older homes. In addition, Ann was excited that she would be just a few minutes from the beach and could walk to local parks.

Ann flew back to New York feeling good about her decision to buy a new home in Melbourne, Florida.  She knew she had made a good decision and a good investment in her future.

While out shopping for a foreclosure home for a “good deal,” consider visiting new home communities too. Prices are at an all-time low, and many builders like Stanley Homes offers affordable pricing, excellent quality and a good deal that THEY GUARANTEE!

Today is a new day for borrowers in danger of losing their homes to foreclosure. Today is the first day that the Housing and Economic Recovery Act of 2008 goes into effect.  This act was designed to motivate lenders to work with the consumers in keeping their homes.  In the past, despite the current economic crisis many lenders have found themselves in, they have not been so willing to work with the borrowers to help them keep their homes from foreclosing. That all hopefully stops today with HERA. 

As the government recognizes the enormous load of future foreclosures that are coming and the repercussions that brings to our economy they have decided to step up to the plate. According to HERA (Housing and Economic Recovery Act) the Federal Government will now be insuring all new, reduced 30 yr fixed mortgages in attempts to motivate lenders to reduce struggling borrower's loan amounts of up to 90% of the property value. In other words, the bank slashes your mortgage amount in half, you get to keep your home, lower the mortgage payment and in return the bank saves itself from not only the whole costly foreclosure process but now has a federally insured loan and a paying customer. It's a win-win for everyone.

Though it would be ideal, not everyone is eligible for this perk of HERA. In order to qualify you cannot have been convicted of fraud, certify that you have not intentionally defaulted on an existing mortgage and did not obtain the loan fraudulently (you wouldn't believe how many borrowers fudged their applications to get a loan), your mortgage payment must exceed 31% of your monthly income as of March 01, 2008 and last but not least you must occupy the home as a primary residence and the home must be listed as so. Sorry second homeowners and investors but you don't make the cut!

You should know that lenders are NOT required to participate in this program though it would be in their best interest to do so.  Another important factor to understand is that if your lender does agree to this and your loan amount is reduced you are not allowed to take any second mortgages within the first five years.  You must also split 50% of your equity with FHA when you sell it and there is holding period of which I am not aware of how long. Not a bad trade-off if you ask me.

All in all, this Act is a step in the right direction.  It's the strong motivation the lenders need to help homeowners keep their homes.  I applaud the government for stepping up and passing this act.  I can't wait to see the positive effects it has on our economy in the future.  If you're interested in finding out more about the HERA program you can visit www.HUD.gov.

Come one come all to the most overgrown, abandoned street in Summerport.  I like to call it Foreclosure Alley and it’s an investors smorgasbord.  On Foreclosure Alley you will find homes by the dozens that are going into foreclosure.  If you take a drive down the street you will see all the yards that are overgrown and the homes that are abandoned.  Many of them were the victims of the runaway landlord I previously blogged about and many of the homes are from different individual investors that just couldn’t wait it out. 

Now is the time to pick these babies up! Many of these homes are on the golf course with beautiful views and boast almost 3,000 sq. ft. of living area if not more. Most of these homes will not have a real estate sign out front though there are a few that do.  You have to drive by and view the homes individually to see which ones are foreclosing.  I’ve never been one to cause hype or sing some sleazy sales pitch but this neighborhood is the deal of the year.  I really believe that.  With a Windermere address and a community in such a hot location these homes are a steal if you can snag them under 200K.

You know what they say. . . Finders Keepers!

By: Erica Muller www.MySunnyHolidayVilla.com

Thieves Tap Into Home Equity

by Bob Tedeschi

provided by the New York Times

Homeowners who have significant equity in their homes may be well-advised to check their credit reports frequently.

That is one conclusion of a recent report from the Identity Theft Assistance Center, a nonprofit industry group, which said that identity thieves had recently begun making targets of individuals with good credit because such people often have substantial untapped home equity.

A home equity line of credit is an ideal vehicle for criminals, according to Steve Bartlett, chief executive of the Financial Services Roundtable, a consortium of banking-related companies that offers financial support to the Identity Theft Assistance Center.

Mr. Bartlett said such credit lines are typically "big pools of money," and if consumers do not regularly check their accounts, that pool can drain quickly.

The Federal Bureau of Investigation's annual mortgage fraud report, which was released in April, cited home equity credit fraud as an "emerging scheme" in the slumping real estate and mortgage market.

Those with poor credit have been preyed upon by identity thieves in recent years, because thieves who pretend to be such owners could easily obtain mortgages from subprime lenders with little documentation.

Now that lenders have vastly tightened their lending criteria, criminals who specialize in mortgage fraud have little choice but to move upstream and seek out victims with good credit.

Home equity lines are a favorite option because they are almost as easy to open as a credit card account, as long as a criminal has the proper financial information.

In a typical scheme, the F.B.I. said, perpetrators pose as homeowners to establish home equity credit accounts online.

Criminals will then often send a fax to the bank requesting a wire transfer of funds to a different account. To verify the request, the bank unknowingly calls the perpetrator.

The F.B.I. does not break out various types of mortgage fraud by state, but in general, mortgage fraud is a bigger problem in New York, New Jersey and Connecticut than in many other states. New York is among the 10 states with the highest rate of mortgage fraud, while New Jersey and Connecticut rank in the top 20.

Mr. Bartlett, of the Financial Services Roundtable, said the region was a logical choice for mortgage fraud because of the relatively high value of homes there and the relatively high income of the residents.

Victims of such schemes are typically reimbursed by the lender if a bank investigation confirms fraud, Mr. Bartlett said. But lawyers who represent victims of identity theft said such remedies do not often come quickly or easily.

One way for a homeowner to determine if someone has created an equity credit line is to enroll in an identity fraud detection service like one offered by the Identity Theft Action Center, called ITAC Sentinel.

That service, which costs $10 to $18 monthly, will alert subscribers to credit inquiries or changes to an account.

Mr. Bartlett said that Identity Theft Action Center, a nonprofit organization, earns nothing on the service.

Services like ITAC Sentinel can also provide alerts to debt unrelated to home equity, like credit card accounts recently open in the subscriber's name.

The major credit bureaus -- Equifax, Experian and TransUnion -- offer competing credit monitoring services. And a check of a credit report would also reveal a debt to a bank unknown to the homeowner or a debt to an existing bank that has suddenly grown larger.

CAROL PERDEW
Prudential California Realty
wwwCarolPerdew.com
(209) 239-7979

What is a short sale?

A short sale is a situation where a lender may agree to take less than is owed on a home in order to avoid it going in foresclose. This allows the seller to often sell below fair market value just to get out from under their loan and avoid the credit impact of a foreclosure.

How do Foreclosures work?

Typically once a property becomes a foreclosure a market analysis is done and the property is listed at fair market value. But banks are not interested in holding on to the property for a long time, they want to get the home sold and off the books as soon as possible.

Basically the longer the foreclosure home is on the market the more they will be willing to come down on the price. It's not unusual to see a 10% price reduction every four to six weeks so you can see how you can purchase a foreclosure well below market value.

How do I find Foreclosure and Short sale properties?

As a local Realtor familiar with the market I can identify foreclosures and short sales for my clients and help them through the entire process from beginning to end. Not all realtors even know how to identify these properties but I stay on top of the foreclosure and short sale market so that I can help my client buyers get the absolute best deals.

How do I get started?

Just give me a call or send me an email. Of course my services are free to a buyer. Just let me know your preferred area, single family home, condo or townhomes, your price range, likes and dislike in a home, timeframe for purchase, etc. and we'll get started!

If you are a seller facing the possibility of foreclosure communication with your mortgage lender is key!  They can discuss your options to refinance and if that is not possible you they may be willing to work with you to negotiate a short sale rather than face foreclosure.  An experience Realtor can discuss the short sale option with you and offer advice, even help find the right mortgage lender.

Please let me know if I can help.

Foreclosed and bank owned homes is the other term for foreclosed and bank owned homes. Meaning properties or houses that are being foreclosed by the bank due the reasons Unpaid mortgages, loans, and Unable to continue the payment of loans.

Bank owned Homes are being sold through:

· Websites

· Banks

· Agent/Broker

· Pliers

· Advertisements in radio

· free bank foreclosed homes listings

Foreclosed and bank owned homes are always for sale, it is because the bank is not in the business of real state. So once your property is foreclosed it will immediately go to free bank foreclosed homes listings. So agents can find buyers who are interested in buying foreclosed and bank owned homes.

Now you ask yourself, why would I buy foreclosed and bank owned homes?

It is because Banks sometimes sell properties much cheaper than the usual price. But don’t get me wrong, Banks always go for the highest bidder or the highest payer, but with the proper bargaining and proper offer, the Bank will negotiate with you.

One way of buying or purchasing a Bank owned Homes is through auctions. A lot of people go to auctions because they want to buy some items cheaper, or they want to see or find a valuable piece of their collection, but also here in this auctions you can find some less price REO (Real state Owned Properties). But of course the highest bidder still wins.

You could always go to a broker/agent. But don’t expect him to call you back that fast. Always remember that he/she has many clients and it could be months before he calls back. But it maybe worth it because they could find and

get you a deal that is worth taking.

]]> http://freebankforeclosedhomes.wordpress.com/?p=7 Fri, 19 Sep 2008 04:43:52 +0000 freebankforeclosedhomes http://freebankforeclosedhomes.wordpress.com/2008/09/19/free-bank-foreclosed-homes/

Free bank foreclosed homes is a list of bank foreclosed homes for sale which can be seen on the internet, Why is there is a term FREE in the title? It is because some websites, blogs and forums are asking for payments for them to post bank foreclosed homes for sale.

Unlike in the early years, properties can only be seen on limited resources like TV, newspapers magazine, brokers, and in the bank itself. The problems are:

• It is not up to date information about the property
• You don’t have any idea if the property is already sold or not yet unless you talk to its agent.
• Limited list of foreclosed and bank owned homes.
• The Free Bank foreclosed homes are poorly advertised because they have to buy a newspaper or a magazine which will still cost them some amount if money before they can see you advertisement.
• Good properties and houses are hard to locate and some don’t have any descriptions and instructions how to get to the property.

But nowadays the most effective way to advertise your bank foreclosed homes for sale is through the internet, this is where the Free Bank foreclosed homes listings comes in. Through internet, you can check foreclosed and bank owned homes instantly. Provided with an updated information about the land, if it Is already sold or not. If the house is in good condition, they also provide the contact number of the person to contact if you’re willing to negotiate or willing to buy the property.

And also in the internet, some large banks in the real state business are advertising there bank owned foreclosed homes, why? Because the internet provides an easy access to almost anything and it is wise nowadays to put your advertisements in the internet because millions and millions of potential buyer today are getting online.

Banks are not in the business of owning foreclosed homes. This is why as soon as a bank forecloses on a property, the same almost immediately goes up for sale. And in doing this, most mortgages are usually entrusted by the bank rather than have the establishment mediate the transaction between the closing parties. There are two obvious reasons for this. First off, these banks are more likely to have more money to both loan out a large amount to the property owner, and give value to the asset held up for mortgage. Second of all the bank would be more credible and trustworthy when holding these transactions because, more often than not, it has already established itself in the local or even national and international community.

Let’s take a more detailed look at how a bank foreclosed home goes for sale.
When people need to make a loan involving a large sum of money they usually put up their valuable real assets like houses for mortgage. A contract is then signed as a manifestation of an agreement that the bank would have property rights over the mortgaged assets in as an interest for the money they are meant to collect within an agreed period of time. In the event that the owner fails to pay these debts, the bank sends a foreclosure notice announcing that the owner has lost his or her right to redeem the property, resulting to the repossession of the asset in question. Quite simply, a bank foreclosure.

Once repossessed, they then put up the bank foreclosed homes for sale. The deed signifying the ownership of a specific asset is either sold to a direct buyer or put up for auction. Either way, the proceeds of the sale of the same bank foreclosed house will serve as compensation for the unpaid debt of the owner. Should the proceeds form the sale prove to be insufficient for the total amount due, then the property foreclosed extends to other possibly salable assets that belong to the owner.
Looking for bank foreclosed homes for sale is quite easy. You can either search the internet for online lists of bank foreclosed homes for sale, or you could ask your local banks in the locality for such listings. This way, you get a good look of what's available at the moment, which could likely be more than enough to let you make an informed choice in the end, should you find yourself torn between a number of these bank foreclosed homes for sale and other real estate opportunities.

The mortgage crisis has been a nightmare for some and a dream for others. For the people who have lost their homes, it is a sad and life-altering experience. There’s nothing remotely pretty about losing your home to a foreclosing bank. But where they see despair, others see opportunity. These are people looking to make a good investment out of these bank owned foreclosed homes.

With foreclosed homes selling at below market values and interest rates at an all time low, many are looking to invest in the housing market. The problem, however, is how and where to find these bank owned foreclosed properties. Depending on where you live, you may find these bank owned foreclosed homes fairly easy.

One method is to search for bank owned foreclosure listings in various search engines to find these kinds of properties in your area or even across the country. With the ever increasing cost of property, buying bank owned foreclosed properties has become much more socially acceptable, not to mention highly profitable that most are listed online.

This is especially true in metropolitan areas since these areas seem to have been hit the hardest. You’d have no trouble at all finding bank owned foreclosed properties there. If you are a serious investor, aside from just looking for bank owned foreclosed properties in your area, you might want to travel and purchase properties in market hot spots as well. This includes places like Atlanta, Houston or Denver.

Whichever area you prefer, be it within your own backyard or from coast to coast, you have to do your homework in the areas you are interested in. Real estate agents have come up with some unique ways to show their database to online hunters trying to find bank owned foreclosed properties. It used to be quite rare that some realtors would have so many listings of bank owned foreclosed properties at one time, but now it is becoming more and more common.

As such, competition is also rising pretty steeply, which forced realtors to be really creative in their listing practices. Some have sought to offer tours through neighborhoods to show listed properties. It sounds silly, but actually it is a great way to get a look and feel of the neighborhood. If there are properties sitting unsold for long periods of time, you may want to stay away.

Don't be afraid to ask questions. If you feel that you need to see the property several times before making an offer, go ahead and do that. There is nothing wrong with that. There’s a vast amount of resources that can be found online to help you not just find the location bank owned foreclosed homes, but practically everything you need to learn about these properties as well. Some of these online sources have listings that cover the whole country, and allows you to narrow down your search by zip code or even by county. This is the easiest and the most popular way to find bank owned foreclosed properties. It is a good thing to remember though to narrow down your search to a few properties prior to contacting an agent. You wouldn’t want to bite off more than you can chew.

The possibilities are endless. No matter what path you take in finding a bank owned foreclosed home, be sure to do all your research and to remember every detail you encounter. Be motivated and organized. This will save you time and money. Don't purchase a property before you have personally inspected it. Some homes have been trashed by angry owners who do this as their way to deal with the stigma of having a foreclosed home and a ruined credit score. Some of these may not be worth the cost of repairing. You don't want to be stuck with that problem, so while it pays to be aggressive, it also is a great deal to be prudent. So go ahead and try your hand with these bank owned foreclosure properties. They just may be your ticket to fortune.

Simply put, a short sale occurs in a situation when a home owner's debt on the property is greater than the amount for which the property can be sold. This means the lenders are willing to accept less than the total amount due. Here's an example: Assume a homeowner has an unpaid loan balance of $120,000, but the property will only sell for $100,000. The lender accepts that $100,000 as full payment, which is obviously "short" of the full $120,000 payment.

Since lenders aren't in business to lose money, you can imagine that they're reluctant to do short sales and will often only do them as a last resort. It can make more financial sense for them to go through with a foreclosure.

Why Is a Short Sale More Complicated?

A SHORT SALE is a complicated process due to the fact that so many factors are involved: e.g., the loan mitigation policies of the lender and third-party investors; the financial condition of the same; financial condition of the borrower; the property's as-is value; the cost to "repair" the property to put it into saleable condition and market it, etc. In addition, approval for short sale must come from the investor who actually owns the loan. Moreover, if the lender is a government-sponsored institution like Fannie Mae or Freddie Mac, approval can take a long time, given the nature of federal-type bureaucracies.

When Will Lenders Accept a Short Sale?

Sometimes, homeowners experience a devastating illness like cancer that eats up all their financial resources. Other times, homeowners are military personnel who are called up to active duty for extended periods of time and lack the income to continue mortgage payments. There are many other instances all of which fall under the "hardship" category-disabling, permanent injuries; financial insolvency; convictions; lack of employment due to economic conditions beyond the homeowner's control, etc. In these instances, lenders are willing to consider a short sale.

How Do I Know If A Property Qualifies for a Short Sale?

In order to know if a property qualifies, you'll need to gain knowledge. First, know the lender's loss mitigation policy. What's their record on dealing with short sales? If it's seldom or never, a short sale is not worth your time. Second, know the number of liens recorded against the property title and the total amount of money in those liens. Third, know the borrower's present financial condition. Fourth, know the type of loan that's in default and its current status. Fifth, know both the property's as-is market value and its as-repaired value. Sixth, and finally, be aware of the state of the local economy and the current real estate market conditions. Analyze all this information to determine if a short sale is worth pursuing.

How Do I Pursue a Short Sale?

Let's assume you've done your analysis and want to pursue a short sale. The first order of business is to have the homeowner sign an authorization to release the loan information. Next, you have to have cash on hand; that's right, all short sales are cash transactions. So, you'd better have cash available and verifiable proof that you possess the money.

Keep in mind that short sales cannot be made to relatives, family members, or close friends of the homeowner. In real estate terms, this is called an "arm's length transaction." If a short sale transaction is completed and a lender later finds out that, say, the homeowner's brother bought the property, then that lender can file a lawsuit to have the sale overturned.

Another obstacle to a short sale is the property owners themselves. They can't receive any of the money from a short payoff sale. After all, why should they be rewarded for financial irresponsibility? So, there's little incentive for them to do a short sale. There's also another negative; the debt that's canceled by the short sale payoff of a mortgage or deed of trust is subject to federal income tax as ordinary earned income. This is not true of a bankruptcy or insolvency.

How Is a Short Sale Property Appraised to Determine Its Value?

It's done through the process of "broker's price opinion" (BPO). These are oral or written appraisals done by real estate licensees licensed to do such actions. Lenders use BPOs to determine two things: a property's as-is value and its as-repaired value.

 M a k e  a n  O f f e r  i n W r i t i n g
P r e s e n t e d  b y  F r e d d i e  M a c

This is the time to think carefully about what you want and what you can afford. If your offer is accepted, it becomes a legally binding contract. Make sure you don't include anything in the offer that you're not totally comfortable with doing.

Make sure you put everything in writing. Offers usually include items like:

·         Proposed purchase price.
Remember, the seller may counter-offer with a higher purchase price - consider that when you decide on your proposed purchase price.

·         Concessions.
This includes things you'd like the seller to help pay for, like closing costs.

·         Conveyances.
This covers any personal property to be included in the sale, like the washer and dryer or the refrigerator.

·         Home inspection contingencies.
Make sure you're prepared if the home inspection report shows major problems.

·         Earnest money.
Earnest money is a deposit you offer to show you're serious about purchasing the house. Earnest money is usually held in escrow and applied to your closing costs at settlement. If you fail to meet the terms of your contract, you may lose this deposit.

• Acceptance.
  This covers how long the seller has to respond to your offer before the offer is no longer binding.

·         Mediation and arbitration.
These are legal methods for handling contract disagreements between you and the property seller. These methods are not necessarily beneficial to you, and you do not need to agree to them.

When the Offer Becomes a Contract

Once the seller accepts your offer, the offer becomes a contract – you've contracted to buy a house. What's in a contract varies from state to state, but some common things you'll find include:

·         Legal description.
This describes the property you are buying in terms of its dimensions relative to a fixed point (like a road) or in relation to a recorded subdivision plat or declaration of condominium. It often includes the street address of the property.

• Selling price and deposit.
  This is the price you and the buyer agreed upon, as well as the amount of earnest money you'll pay when you sign the contract.
  
• Mortgage contingency.
  A contingency protects you by stating that the sale depends on a lender approving you for a specific mortgage, rate, and term.
  
• Closing date and location.
  The closing date (also called the settlement) can be several weeks to several months away to meet the seller's and your needs.

·         Conveyances.
Double check these conveyances to make sure that the items are there and are what you and the seller agreed on in the offer.

• Home inspection.
  If you've made the contract contingent on a home inspection, this will set an inspection date and provide an explanation of what will happen if the inspection identifies any problems.

·         Possession date.
This is the date you can move in. It's usually the closing day or very soon after it.

·         Property insurance.
This details the home insurance policy that will cover the property until the closing date. This can be the buyer's or seller's policy.

·         Property disclosures.
This includes legal notification of any required information concerning the property (such as copies of documents from the homeowners' association), issues or problems with the property.

CAROL PERDEW
Prudential California Realty
(209) 239-7979
www.CentralValleyHomes.com

What Should Borrowers Do When They Need Help?

by Jack M. Guttentag
Featured on Yahoo Finance

An uncomfortably large proportion of my mail these days is from borrowers with serious payment problems. In most cases, I can't help them for the reasons discussed below. With a few common cases, I try.

In one typical case, the borrower has two mortgages which add to an amount well in excess of the value of the property, and can no longer afford both payments. If the same lender holds both mortgages, and if the borrower can afford a reduced payment, his objective should be to persuade the mortgage lender to modify the notes to lower the payments.

The burden of proof is on the borrower. He has to document that he will be forced to default on the existing mortgages but could afford the payment on a new mortgage that would cost the lender less than foreclosure.

A Greater Challenge

If the second mortgage is held by a different lender, the challenge is greater.
The first mortgage lender is unlikely to modify the note so long as the second mortgage lender remains in a position to foreclose.

I suggest that borrowers in this situation approach the second mortgage lender first, with the objective of inducing that lender to get out of the way. The borrower can offer the second mortgage lender an unsecured promissory note for a portion of what is owed on the second mortgage. Since the second mortgage loan has little or no value except as a nuisance, any reasonable offer is likely to be accepted.

The situation described above is only one of many in which troubled borrowers may find themselves. Rarely do they communicate all the information that I would need to find the best possible outcome. Not all have second mortgages, but some have large amounts of non-mortgage debt to complicate the process. While many have negative equity in their properties, some have positive equity. In some cases a loss of income appears temporary, in other cases permanent; in some cases borrowers plan to dispose of the property, in other cases they want to hang on if possible.

A Best Possible Outcome

In principle, there is a "best possible outcome" for every individual situation, but only rarely do borrowers give me all the information I would need to find it, even if I had the time. Few borrowers know what their options might be, and fewer still understand the information they must provide before a best option can be identified. But some useful resources are available.

I have an article on my Web site called "Mortgage Payment Problems: What If You Can't Pay?" It covers a wide range of possible situations in which borrowers may find themselves, and suggests the remedies that appear most relevant to each situation.

Recently, PMI Mortgage Insurance Company and Genworth Mortgage Insurance Company have developed Web sites directed entirely to helping prevent needless foreclosures. They cover much of the same ground as I do, but they do it better by breaking the problems down into bite-size pieces. Further, they include a number of videos that many people will find easier to follow than written expositions.

Warning: These sites are not easy to find through the main sites of the two companies. For the PMI site, go here. For Genworth, go here. Click on the menu item "Education and Training".  

These sites are for those who are prepared to invest the time needed to figure out what their options are; they will not hand-tailor a solution for them, but they will provide useful guidance nonetheless.

At a second site, Genworth takes a step toward providing hand-tailored solutions. They provide forms which, when filled out by borrowers, provide the raw materials from which hand-tailored solutions are derived. However, there is no automated assistant to generate solutions; instead the information is referred to a Genworth counselor who will do it manually. Unfortunately (but understandably), the counseling service is available only to borrowers whose lenders have mortgage insurance with Genworth.

That does not mean that this facility is useless for other borrowers in trouble. At some point, every borrower in trouble who expects help must pull together all the information about their financial situation that is relevant to a best possible outcome. If the intention is to go directly to the lender, providing this information at the outset will go a long way toward placing him at the top of the applicant pile rather than at the bottom.

I have been searching for a program that will automate the last step -- that is, after the borrower enters all relevant information, it will produce a best possible outcome, for that borrower. While such programs exist, they have been developed for license to major players and I have not yet been able to shake one free for direct use by borrowers. But stay tuned.

 
SEARCH FOR BANK OWNED HOMES AT www.CentralValleyHomes.com

Carol Perdew
Prudential California Realty
(209) 239-7979
www.CentralValleyHomes.com