Archive for the ‘Short Sales’ Category

Folks I am not that good…I can’t make this stuff up.  If you are involved with short sales and you don’t know and act on this….you could make $11,000 boo-boo’s each time you mess up…..Hit me up for how to work this in your business….mikeo@lmsgnow.com

MARS Part of the 2009 2009 Omnibus Appropriations Act, Public Law 111-8

This part implements the 2009 Omnibus Appropriations Act, Public Law 111–8, section 626, 123 Stat. 524 (Mar. 11, 2009), as clarified by the Credit Card Accountability Responsibility and Disclosure Act of 2009, Public Law 111–24, section 511, 123 Stat. 1734 (May 22, 2009).
322.2 Definitions.
For the purposes of this part:
(a) “Clear and prominent” means:
(1) In textual communications, the required disclosures shall be easily readable; in a high degree of contrast from the immediate background on which it appears; in the same languages that are substantially used in the commercial communication; in a format so that the disclosure is distinct from other text, such as inside a border; in a distinct type style, such as bold; parallel to the base of the commercial communication, and, except as otherwise provided in this rule, each letter of the disclosure shall be, at a minimum, the larger of 12-point type or one-half the size of the largest letter or numeral used in the name of the advertised website or telephone number to which consumers are referred to receive information relating to any mortgage assistance relief service. Textual communications include any communications in a written or printed form such as print publications or words displayed on the screen of a computer;
(2) In communications disseminated orally or through audible means, such as radio or streaming audio, the required disclosures shall be delivered in a slow and deliberate manner and in a reasonably understandable volume and pitch;
(3) In communications disseminated through video means, such as television or streaming video, the required disclosures shall appear simultaneously in the audio and visual parts of the commercial communication and be delivered in a manner consistent with paragraphs (a)(1) and (2) of this section. The visual disclosure shall be at least four percent of the vertical picture or screen height and appear for the duration of the oral disclosure;
(4) In communications made through interactive media, such as the Internet, online services, and software, the required disclosures shall:
(i) Be consistent with paragraphs (a)(1) through (3) of this section;
(ii) Be made on, or immediately prior to, the page on which the consumer takes any action to incur any financial obligation;
(iii) Be unavoidable, i.e. , visible to consumers without requiring them to scroll down a webpage; and
(iv) Appear in type at least the same size as the largest character of the advertisement;
(5) In all instances, the required disclosures shall be presented in an understandable language and syntax, and with nothing contrary to, inconsistent with, or in mitigation of the disclosures used in any communication of them; and
(6) For program-length television, radio, or Internet-based multi-media commercial communications, the required disclosures shall be made at the beginning, near the middle, and at the end of the commercial communication.
(b) “Client trust account” means a separate account created by a licensed attorney for the purpose of holding client funds, which is:
(1) Maintained in compliance with all applicable state laws and regulations, including licensing regulations; and
(2) Located in the state where the attorney’s office is located, or elsewhere in the United States with the consent of the consumer on whose behalf the funds are held.
(c) “Commercial communication” means any written or oral statement, illustration, or depiction, whether in English or any other language, that is designed to effect a sale or create interest in purchasing any service, plan, or program, whether it appears on or in a label, package, package insert, radio, television, cable television, brochure, newspaper, magazine, pamphlet, leaflet, circular, mailer, book insert, free standing insert, letter, catalogue, poster, chart, billboard, public transit card, point of purchase display, film, slide, audio program transmitted over a telephone system, telemarketing script, onhold script, upsell script, training materials provided to telemarketing firms, program-length commercial (“infomercial”), the Internet, cellular network, or any other medium. Promotional materials and items and Web pages are included in the term “commercial communication.”
(1) “General Commercial Communication” means a commercial communication that occurs prior to the consumer agreeing to permit the provider to seek offers of mortgage assistance relief on behalf of the consumer, or otherwise agreeing to use the mortgage assistance relief service, and that is not directed at a specific consumer.
(2) “Consumer-Specific Commercial Communication” means a commercial communication that occurs prior to the consumer agreeing to permit the provider to seek offers of mortgage assistance relief on behalf of the consumer, or otherwise agreeing to use the mortgage assistance relief service, and that is directed at a specific consumer.
(d) “Consumer” means any natural person who is obligated under any loan secured by a dwelling.
(e) “Dwelling” means a residential structure containing four or fewer units, whether or not that structure is attached to real property, that is primarily for personal, family, or household purposes. The term includes any of the following if used as a residence: an individual condominium unit, cooperative unit, mobile home, manufactured home, or trailer.
(f) “Dwelling loan” means any loan secured by a dwelling, and any associated deed of trust or mortgage.
(g) “Dwelling Loan Holder” means any individual or entity who holds the dwelling loan that is the subject of the offer to provide mortgage assistance relief services.
(h) “Material” means likely to affect a consumer’s choice of, or conduct regarding, any mortgage assistance relief service.
(i) “Mortgage Assistance Relief Service” means any service, plan, or program, offered or provided to the consumer in exchange for consideration, that is represented, expressly or by implication, to assist or attempt to assist the consumer with any of the following:
(1) Stopping, preventing, or postponing any mortgage or deed of trust foreclosure sale for the consumer’s dwelling, any repossession of the consumer’s dwelling, or otherwise saving the consumer’s dwelling from foreclosure or repossession;
(2) Negotiating, obtaining, or arranging a modification of any term of a dwelling loan, including a reduction in the amount of interest, principal balance, monthly payments, or fees;
(3) Obtaining any forbearance or modification in the timing of payments from any dwelling loan holder or servicer on any dwelling loan;
(4) Negotiating, obtaining, or arranging any extension of the period of time within which the consumer may:
(i) Cure his or her default on a dwelling loan,
(ii) Reinstate his or her dwelling loan,
(iii) Redeem a dwelling, or
(iv) Exercise any right to reinstate a dwelling loan or redeem a dwelling;
(5) Obtaining any waiver of an acceleration clause or balloon payment contained in any promissory note or contract secured by any dwelling; or
(6) Negotiating, obtaining or arranging:
(i) A short sale of a dwelling,
(ii) A deed-in-lieu of foreclosure, or
(iii) Any other disposition of a dwelling other than a sale to a third party who is not the dwelling loan holder.
(j) “Mortgage Assistance Relief Service Provider” or “Provider” means any person that provides, offers to provide, or arranges for others to provide, any mortgage assistance relief service. This term does not include:
(1) The dwelling loan holder, or any agent or contractor of such individual or entity.
(2) The servicer of a dwelling loan, or any agent or contractor of such individual or entity.
(k) “Person” means any individual, group, unincorporated association, limited or general partnership, corporation, or other business entity, except to the extent that any person is specifically excluded from the Federal Trade Commission’s jurisdiction pursuant to 15 U.S.C. 44 and 45(a)(2).
(l) “Servicer” means the individual or entity responsible for:
(1) Receiving any scheduled periodic payments from a consumer pursuant to the terms of the dwelling loan that is the subject of the offer to provide mortgage assistance relief services, including amounts for escrow accounts under section 10 of the Real Estate Settlement Procedures Act (12 U.S.C. 2609); and
(2) Making the payments of principal and interest and such other payments with respect to the amounts received from the consumer as may be required pursuant to the terms of the mortgage servicing loan documents or servicing contract.
(m) “Telemarketing” means a plan, program, or campaign which is conducted to induce the purchase of any service, by use of one or more telephones and which involves more than one interstate telephone call.
§ 322.3 Prohibited representations.
It is a violation of this rule for any mortgage assistance relief service provider to engage in the following conduct:
(a) Representing, expressly or by implication, in connection with the advertising, marketing, promotion, offering for sale, sale, or performance of any mortgage assistance relief service, that a consumer cannot or should not contact or communicate with his or her lender or servicer.
(b) Misrepresenting, expressly or by implication, any material aspect of any mortgage assistance relief service, including but not limited to:
(1) The likelihood of negotiating, obtaining, or arranging any represented service or result, such as those set forth in §322.2(i);
(2) The amount of time it will take the mortgage assistance relief service provider to accomplish any represented service or result, such as those set forth in §322.2(i);
(3) That a mortgage assistance relief service is affiliated with, endorsed or approved by, or otherwise associated with:
(i) The United States government,
(ii) Any governmental homeowner assistance plan,
(iii) Any Federal, State, or local government agency, unit, or department,
(iv) Any nonprofit housing counselor agency or program,
(v) The maker, holder, or servicer of the consumer’s dwelling loan, or
(vi) Any other individual, entity, or program;
(4) The consumer’s obligation to make scheduled periodic payments or any other payments pursuant to the terms of the consumer’s dwelling loan;
(5) The terms or conditions of the consumer’s dwelling loan, including but not limited to the amount of debt owed;
(6) The terms or conditions of any refund, cancellation, exchange, or repurchase policy for a mortgage assistance relief service, including but not limited to the likelihood of obtaining a full or partial refund, or the circumstances in which a full or partial refund will be granted, for a mortgage assistance relief service;
(7) That the mortgage assistance relief service provider has completed the represented services or has a right to claim, demand, charge, collect, or receive payment or other consideration;
(8) That the consumer will receive legal representation;
(9) The availability, performance, cost, or characteristics of any alternative to for-profit mortgage assistance relief services through which the consumer can obtain mortgage assistance relief, including negotiating directly with the dwelling loan holder or servicer, or using any nonprofit housing counselor agency or program;
(10) The amount of money or the percentage of the debt amount that a consumer may save by using the mortgage assistance relief service;
(11) The total cost to purchase the mortgage assistance relief service; or
(12) The terms, conditions, or limitations of any offer of mortgage assistance relief the provider obtains from the consumer’s dwelling loan holder or servicer, including the time period in which the consumer must decide to accept the offer;
(c) Making a representation, expressly or by implication, about the benefits, performance, or efficacy of any mortgage assistance relief service unless, at the time such representation is made, the provider possesses and relies upon competent and reliable evidence that substantiates that the representation is true. For the purposes of this paragraph, “competent and reliable evidence” means tests, analyses, research, studies, or other evidence based on the expertise of professionals in the relevant area, that have been conducted and evaluated in an objective manner by individuals qualified to do so, using procedures generally accepted in the profession to yield accurate and reliable results.
§ 322.4 Disclosures required in commercial communications.
It is a violation of this rule for any mortgage assistance relief service provider to engage in the following conduct:
(a) Disclosures in All General Commercial Communications —Failing to place the following statements in every general commercial communication for any mortgage assistance relief service:
(1) “(Name of company) is not associated with the government, and our service is not approved by the government or your lender.”
(2) In cases where the mortgage assistance relief service provider has represented, expressly or by implication, that consumers will receive any service or result set forth in §322.2(i)(2) through (6), “Even if you accept this offer and use our service, your lender may not agree to change your loan.”
(3) The disclosures required by this paragraph must be made in a clear and prominent manner, and—
(i) In textual communications the disclosures must appear together and be preceded by the heading “IMPORTANT NOTICE,” which must be in bold face font that is two point-type larger than the font size of the required disclosures; and
(ii) In communications disseminated orally or through audible means, wholly or in part, the audio component of the required disclosures must be preceded by the statement “Before using this service, consider the following information.”
(b) Disclosures in All Consumer-Specific Commercial Communications —Failing to disclose the following information in every consumer-specific commercial communication for any mortgage assistance relief service:
{“Consumer-Specific Commercial Communication” means a commercial communication that occurs prior to the consumer agreeing to permit the provider to seek offers of mortgage assistance relief on behalf of the consumer, or otherwise agreeing to use the mortgage assistance relief service, and that is directed at a specific consumer.}

(1) “You may stop doing business with us at any time. You may accept or reject the offer of mortgage assistance we obtain from your lender [or servicer]. If you reject the offer, you do not have to pay us. If you accept the offer, you will have to pay us (insert amount or method for calculating the amount) for our services.” For the purposes of this paragraph, the amount “you will have to pay” shall consist of the total amount the consumer must pay to purchase, receive, and use all of the mortgage assistance relief services that are the subject of the sales offer, including, but not limited to, all fees and charges.
(2) “(Name of company) is not associated with the government, and our service is not approved by the government or your lender.”
(3) In cases where the mortgage assistance relief service provider has represented, expressly or by implication, that consumers will receive any service or result set forth in §322.2(i)(2) through (6), “Even if you accept this offer and use our service, your lender may not agree to change your loan.”
(4) The disclosures required by this paragraph must be made in a clear and prominent manner, and—
(i) In textual communications the disclosures must appear together and be preceded by the heading “IMPORTANT NOTICE,” which must be in bold face font that is two point-type larger than the font size of the required disclosures; and
(ii) In communications disseminated orally or through audible means, wholly or in part, the audio component of the required disclosures must be preceded by the statement “Before using this service, consider the following information” and, in telephone communications, must be made at the beginning of the call.
(c) Disclosures in All General Commercial Communications, Consumer-Specific Commercial Communications, and Other Communications —In cases where the mortgage assistance relief service provider has represented, expressly or by implication, in connection with the advertising, marketing, promotion, offering for sale, sale, or performance of any mortgage assistance relief service, that the consumer should temporarily or permanently discontinue payments, in whole or in part, on a dwelling loan, failing to disclose, clearly and prominently, and in close proximity to any such representation that “If you stop paying your mortgage, you could lose your home and damage your credit rating.”
§ 322.6 Assisting and facilitating.
It is a violation of this rule for a person to provide substantial assistance or support to any mortgage assistance relief service provider when that person knows or consciously avoids knowing that the provider is engaged in any act or practice that violates this rule.
§ 322.7 Exemptions.
(a) An attorney is exempt from this part, with the exception of §322.5, if the attorney:
(1) Provides mortgage assistance relief services as part of the practice of law;
(2) Is licensed to practice law in the state in which the consumer for whom the attorney is providing mortgage assistance relief services resides or in which the consumer’s dwelling is located; and
(3) Complies with state laws and regulations that cover the same type of conduct the rule requires.
(b) An attorney who is exempt pursuant to paragraph (a) of this section is also exempt from §322.5 if the attorney:
(1) Deposits any funds received from the consumer prior to performing legal services in a client trust account; and
(2) Complies with all state laws and regulations, including licensing regulations, applicable to client trust accounts.
§ 322.8 Waiver not permitted.
It is a violation of this rule for any person to obtain, or attempt to obtain, a waiver from any consumer of any protection provided by or any right of the consumer under this rule.
§ 322.9 Recordkeeping and compliance requirements.
(a) Any mortgage assistance relief provider must keep, for a period of twenty-four (24) months from the date the record is created, the following records:
(1) All contracts or other agreements between the provider and any consumer for any mortgage assistance relief service;
(2) Copies of all written communications between the provider and any consumer occurring prior to the date on which the consumer entered into an agreement with the provider for any mortgage assistance relief service;
(3) Copies of all documents or telephone recordings created in connection with compliance with paragraph (b) of this section;
(4) All consumer files containing the names, phone numbers, dollar amounts paid, and descriptions of mortgage assistance relief services purchased, to the extent the mortgage assistance relief service provider keeps such information in the ordinary course of business;
(5) Copies of all materially different sales scripts, training materials, commercial communications, or other marketing materials, including websites and weblogs, for any mortgage assistance relief service; and
(6) Copies of the documentation provided to the consumer as specified in §322.5 of this rule;
(b) A mortgage assistance relief service provider also must:
(1) Take reasonable steps sufficient to monitor and ensure that all employees and independent contractors comply with this rule. Such steps shall include the monitoring of communications directed at specific consumers, and shall also include, at a minimum, the following:
(i) If the mortgage assistance relief service provider is engaged in the telemarketing of mortgage assistance relief services, performing random, blind recording and testing of the oral representations made by individuals engaged in sales or other customer service functions;
(ii) Establishing a procedure for receiving and responding to all consumer complaints; and
(iii) Ascertaining the number and nature of consumer complaints regarding transactions in which all employees and independent contractors are involved;
(2) Investigate promptly and fully each consumer complaint received;
(3) Take corrective action with respect to any employee or contractor whom the mortgage assistance relief service provider determines is not complying with this rule, which may include training, disciplining, or terminating such individual; and
(4) Maintain any information and material necessary to demonstrate its compliance with paragraphs (b)(1) through (3) of this section.
(c) A mortgage assistance relief provider may keep the records required by §322.10(a) through this section in any form, and in the same manner, format, or place as it keeps such records in the ordinary course of business.
(d) It is a violation of this rule for a mortgage assistance relief service provider not to comply with this section.
§ 322.10 Actions by states.
Any attorney general or other officer of a state authorized by the state to bring an action under this part may do so pursuant to Section 626(b) of the 2009 Omnibus Appropriations Act, Public Law 111–8, section 626, 123 Stat. 524 (Mar. 11, 2009), as amended by Public Law 111–24, section 511, 123 Stat. 1734 (May 22, 2009).
§ 322.11 Severability.
The provisions of this rule are separate and severable from one another. If any provision is stayed or determined to be invalid, it is the Commission’s intention that the remaining provisions shall continue in effect.

(You can;t) Keep it Short,

Mike Knows

Housing Currently Undervalued by 14% to 17%

(Source: DSNews 12/6/10)

No surprise there right?  Well it is a BIG SURPRISE if you HAVE TO SELL before the bank takes it back.  If you have bought in the last 10 years and have put less than 20% down payment then chances are your HOUSE IS UNDERWATER.  So what do you do?  If it makes sense not to loose it to the bank for a foreclosure on your record (that will hurt your credit for the next 7-10 years) then you SHORT SALE YOUR HOUSE.  A successful short sale (meaning it is negotiated and closed with a buyer) then you have a chance to restore your credit within couple of years!  I am an advocate of such measures not because I own and run a short sale negotiation business www.LossMitigationSpecialistGroup.com, but my wife and I have had to face the same decision.Be that as it may it is not about wrestling with the past it is about moving toward the future.  Feel free to inquire how to sell your home undervalue!

Keep it Short,

Mike Knows

Mikeo@lmsgnow.com

http://www.dsnews.com/articles/research-firm-says-housing-currently-undervalued-by-14-to-17-2010-12-06

Defaulted Borrowers File Lawsuit Against Wells Fargo

(headline from DS News article 12/1/10)

So it has been some time since I wrote about the “topsy tervy” market.    I have to apologize, I have been really working on the business of assisting the decisions of homeowners THAT HAVE TO SELL.  And it seems this is one of the main reasons.  When I discuss with a homeowner if they have been working on a solution to keep their home, they tell me they have been trying to work a loan modification…..for the upteenth time and for the last 6-8 months!!!!  And for the most part to NO AVAIL.

One of the most revealing parts of my inquiry is what homeowners tell me that their lender (or the 20 year old behind the phone) told them to do.  Now don’t get my sarcasm wrong…there are plenty of professional reps out there and they work within there guidelines, which is completely commendable.  The issue I have is that when you pose a carrot out there for these servicer to position a homeowner to do something that will help the program (the HAMP) and hurt the homeowner (like STOP PAYING YOUR MORTGAGE so you can qualify for a Loan Modification) then something doesn’t add up. What most don’t know is that the lender/servicer incentively directs its employees to get people into loan modification programs.  And thus the carrot corrupts the process….

So do your homework to see if you can and will be able to save your home,or come to the grips of the decisions you make should be based on your own thorough assessment versus some else’s suggestion…..namely your lender.  We are here offer direction, and if needed buy a short sale.

http://www.dsnews.com/articles/harwood-feffer-files-lawsuit-against-wells-fargo-2010-11-30

Keep it short,

Mike Knows

I really don’t like posting negative and yet the same old broken record story over and over again.  I just reviewed my posts and it is the constant same old updates.  The Truth is that this will not change until we get through the correction in the real estate housing market.  Obviously, this is stemmed by unemployment and the continual glut of housing inventory, with a slow buyers market.

The results are what they are with the HAMP and HAFA programs, and unfortunately for many homeowners it is a FALSE SENSE OF SECURITY, until their lender just pulls the rug from underneath them and says WE CAN’T HELP YOU, and by the way, we’re foreclosing on your house next month!!!  This is happening more and more because these bleak attempts in the Government programs.  Basically, it is far easier to set your plan to settle now, and to move on, then to deal with the games that are being played.  I would say the homeowners that we have recently spoken with an handled short sales are and have been a result of the issues I have just eluded to.  If you or someone you know is on this roller coaster, have them contact us and we can identify where and what they can do.  We have seen this carnival ride going on for a quite a while….just read the history of my posts.

http://www.latimes.com/news/nationworld/nation/la-fi-obama-foreclosures-20100821,0,2000640.story

Keep it Short,

Mike Knows

I am not the critic here.  I am just a guy whom has seen the real deal of results and what we have been saying all along that this is WHAT WE KNEW ALREADY!!!

http://www.huffingtonpost.com/2010/08/04/extend-and-pretend-the-ob_n_668609.html#

So they call for a need to connect and to expect clear direction is what we have been doing over the last 2+ years. Action is greater than reaction.  So if you are or know someone who has been led along the HAMP (Loan Modification) game and nothing seems to be taking place….show them this article and the reach to to us.  It is about time you got some results!!!

Keep it short,

Mike Knows

…Ok, so you would think that I am some type of conspirator by now….I mean for a guy who lost some of his own houses to this market down turn (implosion to be more accurate) and to witness over the last 2+ (to the tune of 130 short sale files), would question how the banks and the government could be OFF!!!   Nah, really?  The Spin Doctors of the Monetary and Societal Control would present numbers to make ya feel good???

In a nut shell, in my opinion (and it is just my opinion) is that HAMP has shown such poor results (less than 20% success rate), that the immediate indication tells me it slows inventory from hitting the streets because of the trial periods and the retrial periods and the the retrial periods (you get my drift)….until they DROP YOU OUT of the program and continue the foreclosure process (sometimes that is only weeks away) to a foreclosure.

I am getting plenty of frantic calls from homeowners that want to sell me their home in a short sale, but IT IS BECOMING MORE CHALLENGING due to the time constraints and the misleading that has occurred due the “lead me on game” that happens with this programs.  The spin doctors would say that they gave the homeowner every possible chance to save their home and stay in it….but something tells me the story has already been written by the lack of results in the market.

http://www.dsnews.com/articles/barclays-argues-treasury-report-on-hamp-redefaults-is-misleading-2010-07-21

Keep it Short,

Mike Knows

Quote from Fox News:

There are more than 7.3 million home loans in some stage of delinquency, according to Lender Processing Services. Lenders are offering to help some homeowners modify their loans. But many borrowers can’t qualify or they are falling back into default. The Obama administration’s $75 billion foreclosure prevention effort has made only a small dent in the problem. More than a third of the 1.2 million borrowers who have enrolled in the mortgage modification program have dropped out. That compares with about 27 percent who have received permanent loan modifications and are making payments on time.

Need I say anymore?…don’t caught and Keep it Short….

If you are or know of someone who needs to have a short sale done…please email me at mikeo@lmsgnow.com

Keep it Short,

Mike Knows

I am sharing an article (or actually a report) on the 1st Quarter results from the FHFA (Federal Housing Finance Agency) on the  Government programs HAMP and other methods of moving through this CORRECTION.   The headline states: 1.7 Million GSE Loans at Least 60 Days Past Due

and goes further to say how that is down 1.3% which is the the 1st time it is down in 2 years! This is like saying the damage is showing improvement!!!  Nonetheless it is progress.  Furthermore (which is really why I wrote this blog) is that SHORT SALES (and deed lieu..yuck) were up 23% from Q1.  YAY!!!!  SO their programs are not helping as much as the short sale position by the real estate professionals (you and I) but it is contributing.  Short sales aren’t pretty and they are not easy, but they will make and handle the entire aspect of a defaulting market (seller, property, lender, agents, buyer, attorney, new loan, improved community etc.) than any other strategy, program that involves liquidating an over-leveraged asset (the house) and getting the process to move.  That is why slow and steady finishes the race….please read on.

http://www.dsnews.com/articles/report-17-million-gse-loans-at-least-60-days-past-due-2010-06-23

Remember…

Keep it short,

Mike Knows

Yup you heard it right.  Nothing set in stone, but they are pushing for it.  Great news and if it goes through there is tons of sales going to be made this summer!!!  We are seeing a HUGE SPIKE in people looking for great deals in short sales.  So now is the time….when?  NOW!  (Read On)

First-time homebuyers looking to land an $8,000 federal income tax credit may have a little more time to close on their purchases if a Senate amendment unveiled Thursday makes it into law. As it stands now, homebuyers must have signed contracts by April 30 and must close the deal by June 30. They could be eligible for an $8,000 tax credit if they are first-time buyers or a $6,500 credit if they owned and lived in their previous home for five of the last eight years. The closing deadline, however, could be pushed back to Sept. 30 under an amendment offered by Senate Majority Leader Harry Reid, D-Nev., Sen. Johnny Isakson, R-Ga., and Sen. Chris Dodd, D-Conn. The senators said they want to make sure banks have time to process the transactions — especially short-sales, which is a more involved process.  It remains to be seen, however, whether the amendment will go anywhere. It is part of a controversial jobs and tax bill that may be radically changed before the Senate approves it. Lawmakers are not scheduled to vote on the bill until next week at the earliest.

Reform Panel Members Got Millions From Wall Street

The 43 U.S. lawmakers charged with shepherding a massive government overhaul of the financial industry over its final hurdles in Congress have collected at least $67 million combined in campaign contributions from financial sources. The conference committee’s Senate members have received more than $40 million from political action committees and individuals connected with Wall Street securities and investment firms, commercial banks, insurance companies, mortgage bankers, and finance and credit companies. House members, including panel chairman Barney Frank, have collected at least $27 million for their election campaigns over the same period. Democrats, who make up nearly two-thirds of the panel, are the financial industry’s greatest beneficiaries, drawing an average of $1.7 million per lawmaker. In fact, about one-third of industry contributions, or $21.7 million, went to only two Senate Democrats—Banking Committee Chairman Christopher Dodd of Connecticut and Charles Schu
mer of New York. Contributions have been received from securities, investment, banking, insurance, mortgage banking and finance companies since 1989 and during the 2010 election cycle, which began January 1, 2009. This data was compiled from public disclosure documents by the nonpartisan Center for Responsive Politics.

Diana Olick – Extend Home Closing Deadline For Tax Credit: Senator Reid

“You may recall on Tuesday we all discussed the home buyer tax credit, and specifically how many potential buyers rushed in to sign contracts by the April 30th deadline but wouldn’t make it to the June 30th closing deadline. Now Senate Majority leader Harry Reid (D-Nev.) is offering an amendment to the American Jobs and Closing Tax Loopholes Act of 2010, to extend the closing deadline to September 30th. Again, no new buying opportunities here, just a longer period to close. I spoke with Senator Reid’s office after the announcement, and spokesman Jim Manley said their chief concern, especially in their home state of foreclosure-ridden Nevada, is timing to complete short sales. That’s where the bank allows the troubled borrower to sell for less than the value of the mortgage. Here’s Manley’s full explanation: “The Realtors believe there will be a lot of homebuyers who will not be able to meet the June 30 deadline through no fault of their own.

There are a lot of transactions that need to be closed which is overwhelming the system. And many of the homes that are being bought are short sales which require the sellers lending institution to agree to take accept less than full payment on the outstanding mortgage. The financial institutions are taking a very long time to come to that decision and the home buyer is helpless to move the process along. This amendment gives those homebuyers an additional three months to close the transaction.”

Keep it Short,

Mike Knows

Sorry for the long delay of posting….but most of my time is in the trenches of the short sale market.  It has really picked up in the last 3 months, but significantly looking like this is what and why I have spent the last 2+ years in short sales.  SHORT SALES ARE HOT!! It looks like the market says so too.  The recent report shows more short sales are being sold, and the REO sales are down. Well that makes complete sense to me.  It means that short sale sales….are easier to deal with….(yes you read that correct) than REO’s….IF YOU DEAL WITH THE RIGHT PROFESSIONALS.   We have a full service business in Massachusetts that buys, negotiates, and sells short sales, at various stages with various situations.  This is really a thing that means KNOW who to work with for information to make a sound decision on what you need to know…..and who to know.  Mike Knows Short Sales….

http://www.dsnews.com/articles/reo-sales-drop-with-increase-in-short-report-2010-05-25

Keep it short,

Mike Knows