AVOIDING BANKRUPTCY BY SHORT SALE

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House and lawUnderwater borrowers these days have many options… and bankruptcy does not have to be one of them.  Often time, a borrower comes into my office, has stopped paying his or her mortgage, and has reached the conclusion, albeit the erroneous one, that filing for bankruptcy is the only way.  Many have been provided wrong or inaccurate information from the neighbors or friends, or have drawn these conclusions on their own, because they have simply not been educated on the many options that exist for underwater properties.

While a bankruptcy can wreak havoc on your credit report, and such derogatory information can last for many, many years, other loss mitigation options are less damaging to a borrowers credit and can allow the borrower to obtain a new loan and recover from the nightmare quicker.

For instance, a short sale.  In a short sale, the borrower remains in their home until the sale gets to closing.  This may mean many months of nonpayment of the mortgage, which while damaging to a credit report, at the time the closing takes place, the lender will most likely report the sale as “settled for less than agreed” or simply “settled”.  The lender will also remove the mortgage balance and replace it with a zero balance on the credit report, which may automatically improve the borrowers debt to asset ratio.  Usually borrowers are able to purchase homes and obtain new loans within a year with this option.

There is also a loan modification option with a settlement of the second loan.  Many lenders are approving loan modifications these days at record speed. Moreover, they are making huge principal reductions, as evidenced by our recent client who obtained a $300,000.00 mortgage write off under the Making Home Affordable program and a new interest rate of 2%

The second lender, if the property is upside down, may agree to accept a 10% settlement for their loan and cancel the loan altogether.  This means the borrower can keep their home with a mortgage value of what the property is worth.  Again, avoiding bankruptcy all together.

A deed in lieu of foreclosure also allows the borrower to deed the property back to the lender, with a possible write off of the mortgage is properly negotiated and primary residence of the borrower. Again, this option avoids bankruptcy.

So for all the borrowers out there that think bankruptcy is their only option, think again.  While many bankruptcy attorneys like to have the borrowers believe this (and I am not knocking any colleagues here) many are simply not knowledgeable enough to provide other options.  Bankruptcy is all they know.

At the Law Offices of Jacqueline A. Salcines, PA, we make it our business to know all the possibilities that exist and all the programs out there to assist homeowners.  Attorney Jacqueline A. Salcines, Esq. personally sits down with each and every prospective client to run their numbers and qualify the person for one of the programs above.  If you don’t qualify, then we do not take your case on.

But most important, we are here to help.  We know how damaging bankruptcy is to your credit and will do everything in our power to have our clients avoid that.

Our offices are located in the heart of Coral Gables. Call for  a free evaluation of your case today.

LAW OFFICES OF JACQUELINE A. SALCINES, PA
706 S. DIXIE HIGHWAY
SECOND FLOOR
CORAL GABLES, FLORIDA 33146
TEL.  305 .  669.  5280
J.SALCINES@SALCINESLAW.COM

 

TRUST    |   COMMITMENT   |   RESULTS

 

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SHORT PAYOFF OF SECOND LOAN

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foreclosure_defense Many homeowners feel strapped due to a second mortgage on their property, which may cause a property to become “upside down”, owing more on mortgage balances than the property is worth.  “Often in the loss mitigation and loan modification industry I encounter homeowners and property owners that think that they can not do anything to negotiate their loan balance with their second mortgage company except to file for bankruptcy.  This is not the case.”  Jacqueline A. Salcines. Esq.

A second mortgage can easily be “wiped out” and settled for a short payoff.  What this means is that the lender that holds the second mortgage accepts an amount, or percentage of their loan, that is less than the amount owed to them and calls it a day.  Many times these percentages can be as little as  5% or 10%. Thereafter, the house can be kept with only the first mortgage on there, hopefully no longer upside down.  Or a regular sale can take place, where the closing is no longer a short sale.   The key ingredient however is hiring the right attorney to handle the negotiation for you.  If you agree to send the lender something and it is all verbal, with none of the terms in writing, you may be just giving the money away.  Too many times the lenders take the money as a down payment on the balance owed and do not issue a Satisfaction of Mortgage.  This equates to the loan not actually being settled but rather written off as a bad debt or uncollectable. However, when you go to sell the property, the balance is revived and must be paid off.

It is imperative that a real estate attorney familiar with the negotiation process and paperwork involved fight in your corner.  At The Law Offices of Jacqueline A. Salcines, PA, our attorney and staff work diligently not just to put an offer together but to look at the lender documents, closing documents, assignments, mortgages, etc. to see what leverage we can use to fight for the lowest settlement amounts possible.  And, most importantly, make sure that the lender prepares and records a Satisfaction of Mortgage.  This is a true Short Payoff.

Call us to discuss your options today!!!

JACQUELINE A. SALCINES, ESQ.

LAW OFFICES OF JACQUELINE A. SALCINES, PA.

706 S. DIXIE HIGHWAY

SECOND FLOOR

CORAL GABLES, FLORIDA 33146

TEL.  305  | 669  | 5280

TRUST    |   COMMITTMENT    |   RESULTS

 

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LARGEST PRINCIPAL REDUCTION ON A LOAN MODIFICATION TO DATE

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Loan Modification Green Road Sign with dramatic clouds and sky. MY FIRM HAS BEEN WORKING ON A LOAN MODIFICATION FOR A CLIENT FOR THREE MONTHS NOW. THE BORROWER WAS NOT YOUR TYPICAL BORROWER.  HE HAD LARGER THAN TYPICAL EARNINGS BUT THE HOUSE WAS JUST WAY UPSIDE DOWN AND NEEDED SOME REPAIRS.  THE MORTGAGE BALANCE WAS OVER $650,000.00.

TODAY WE RECEIVED THE GREAT NEWS THAT OUR CLIENT WILL RECEIVE A $393,461.85 PRINCIPAL REDUCTION THAT WILL BE COMPLETELY FORGIVEN BY THE LENDER AS LONG AS HE MAKES TIMELY PAYMENTS FOR 3 YEARS.  AND, HIS INTEREST RATE WAS LOWERED DRASTICALLY.

THROUGH PERSERVERANCE, DETERMINATION AND TRUST, WE WERE ABLE TO GET THIS RESULT AND MANY MORE FOR OUR CLIENTS.  MANY HAVE THE MEANS TO PAY AND ARE NOT INSOLVENT, BUT THE PROPERTY VALUES ARE JUST NOT THERE.  AND WHILE THESE LOAN MODIFICATIONS ARE REQUIRE MORE SKILLED NEGOTIATIONS AND TACTICS, SUCH AS PREPARING A REPORT ON VALUE AND REPAIRS, THE BANKS ARE LISTENING!  THIS CASE IS PROOF OF THAT.

IF YOU ARE IN  NEED OF A LOAN MODIFICATION, YOUR HOME IS UNDERWATER AND  YOU OWE MORE TO THE BANK THAN WHAT THE PROPERTY IS WORTH , CALL US. WE MAY BE ABLE TO GET YOU RESULTS LIKE THE ONE WE RECEIVED TODAY.

THERE IS NO FEE TO QUALIFY YOU. WE HAVE THE SAME GOVERNMENT PROGRAMS TO QUALIFY YOU THAT THE MAKING HOME AFFORDABLE PROGRAM USES AND WE CAN TELL YOU DURING THE CONSULTATION WHETHER YOU QUALIFY OR NOT.  THEN YOU CAN MAKE THE DECISION.

LAW OFFICES OF JACQUELINE A. SALCINES, P.A.

706 S. DIXIE HIGHWAY

SECOND FLOOR

CORAL GABLES, FL 33146

TEL.  305 | 669 | 5280

J.SALCINES@SALCINESLAW.COM

 

TRUST  |   COMMITMENT  |  RESULTS 

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SECOND MORTGAGES BEING WIPED OUT AND SETTLED FOR PENNIES ON THE DOLLAR

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Way Signs "Bailout - Collapse"My firm was recently successful in getting a rather large, second mortgage on a property wiped out completely.  No penalty.  No amounts owed the lender.  No deficiency. And the lender immediately sent over a Satisfaction of Mortgage to record.  How did we do it?  It was rather easy actually. We were able to negotiate with the lender and prove that the Fair Market Value of the property was well under the amounts owed the first and second lender and provided a thorough report as to value.

Once the lender received the report and was satisfied with our explanation of the borrower’s hardship, they agreed.  It was that easy.

Many times a second mortgage can thwart a short sale or a loan modification because it simply sends all values for either calculating the Borrower Financial Worksheet or NPV out of wack. Sometimes, it is the kill switch on a short sale because the second lender always retains the right, even under the Mortgage Debt Relief Act, to collect on the second post closing and maintain a deficiency.

The most important advice we can provide is hire the services of a knowledgeable attorney on your side.  One who can run the numbers, provide the proper reports to make the waiver of a second mortgage a possibility.

There are many individuals out there, some in fact attorneys, promising such results.  However, the satisfied client and our results speak for themselves.

Visit us on AVVO. COM and see what our clients are saying about our services.

Or call for a free evaluation of your case.  The consultation is always free of charge.  J.Salcines@Salcineslaw.com

Law Offices of Jacqueline A. Salcines, Esq.

706 S. Dixie Highway

Second Floor

Coral Gables, Fl  33146

T:  305  |  669  | 5280

TRUST    |    COMMITMENT   |   RESULTS

 

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BANK OF AMERICA WHISTLEBLOWER REVEAL THEY WERE ORDERED TO LIE AND DENY LOAN MODIFICATIONS

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Shocking news hit the internet last week about Bank of America and its deliberate denial of Loan Modifications to hundreds of thousands of borrowers.  In a pending class action suit, two whistleblower employees of Bank of America, Simone Gordon and William Wilson, both gave startling Affidavits  stating that they were ordered by their superiors to deny loan modifications, lie to borrowers about the status of their modifications and not process them, and lie about documents being received, when in fact they had been.  Borrowers, who often complain that loan modifications are so tedious and time consuming, as well as frustrating with the lenders not receiving documents, now have an explanation. They were received, just not ethically and lawfully processed.

Simone Gordon and William Wilson, and the pending class action, shed light on the practices of Bank of America internally and its role in the loan modification arena. “I lied because I was told to lie” is how Simone Gordon put it.

Thousands of borrowers who may have been eligible for a modification of their loan, may have in fact lost their home in foreclosure due to the unlawful practices of Bank of America.

You can read more about the suit here as well as both affidavits.

Declaration of Simone Gordon

Declaration of William Wilson

 

If your loan modification was denied or you lost your home and Bank of America was your lender, contact us to see what can be done.

Jacqueline A. Salcines. Esq.

Tel: 305  |  669  | 5280  or email me direct at J.Salcines@Salcineslaw.com

Offices located at: 706 S. Dixie Highway, Second Floor, Coral Gables, FL  33146

TRUST   |   COMMITMENT  |  RESULTS

 

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STREAMLINED MODIFICATION PROGRAM

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June 12, 2013

Jacqueline A. Salcines, Esq.Way Signs "Bailout - Collapse"

It appears that all these penalties to lenders for failing to modify borrowers’ loans is finally doing homeowners some good.  The Streamlined Modification program is really taking off and really working to assist borrowers.  The Freddie Mac Streamlined Modification program provides remedies to seriously delinquent borrowers that may not qualify under other programs.

While the Streamlined Modification program offers the same terms and conditions as the standard modification program, the program is intended for borrowers who have stopped paying on their mortgages at least 90 days but no more than 720 days delinquent.    You can not have stopped paying your mortgage for more than 2 years.

If you are eligible for this program, you may have already received a letter in the mail from your mortgage servicer offering you the service and sending you an application to apply.  Upon receiving the solicitation letter, the borrower can contact us to help fill out the forms and make sure that they provide accurate numbers to qualify for the program. It is extremely important that figures for the financial worksheet be provided accurately since you get one shot at getting it right, or risk being declined.

The following properties are eligible for this program:

  • Primary Residence
  • Second Home
  • Investment property (whether owner occupied or not)
  • Vacant properties and,
  • Condemned properties

To be eligible, the borrower must have the following (including but not limited to):

  1. Be behind on their mortgage by at least 90 days but no more than 2 years;
  2. Market to Market loan to value ratio must be greater than or equal to 80 percent (we figure this out for you).
  3. The mortgage must have originated at least 12 months prior to the date applying for the modification
  4. The mortgage must be a conventional first lien mortgage

 

There are numerous other qualifications and numbers that must be calculated.  Call us for a free, no obligation consultation to see if you qualify.

The Law Offices of Jacqueline A. Salcines, PA

706 S. Dixie Highway Second Floor

Coral Gables, FL  33146

Tel: 305 | 669 | 5280

TRUST  |   COMMITMENT  | RESULTS

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Short Sale to Avoid a Deficiency Judgment

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short_saleMany homeowners, and realtors alike (offering short sale advice to their clients), are unaware that a short sale on a primary residence in Florida, will result in a complete forgiveness of debt to the homeowner seller.  The American Taxpayers Relief Act of 2012, which extended the Mortgage Forgiveness Debt Relief Act through December 31, 2013, provides full protection to homeowners who sell in a short sale and have part of their mortgage debt written off or forgiven.  Under this Act, if the home is the primary residence of the borrower and either a short sale, deed in lieu or certain other loss mitigation was completed, resulting in the forgiveness of debt to the homeowner, then that loan forgiveness is tax free and forever waived.  The lender can never again pursue the borrower to claim any penny of it.

Many homeowners in foreclosure wrongly think that “riding it out” is the answer.  They arrive at the incorrect conclusion that they can live years mortgage free and then, once the home sells in foreclosure, they are wiped away of the debt.  This is an INACCURACY.  If the foreclosure sells at auction, the lender may still claim the judgment or difference against the homeowner, which could result in a garnishment of wages, a freezing of debtors assets, bank accounts, seizing of any cars or boats or other methods to satisfy the debt. While unfortunately many colleagues continue to charge monthly for foreclosure defense,  all they are buying is time.  At the end, a trial or motion for summary judgment will creep up and if the borrower has done nothing to try and sell the property or modify, then most likely a judgment will result against them.

I always encourage foreclosure clients that I defend to find a solution early. Finding a solution early does not mean you have to move out.  On the contrary.  You may actually buy yourself more time, while a solution is found.  Be it either a short sale, loan modification, a deed in lieu of foreclosure, a HARP refinance or any other alternative that exists today, simply riding it out is not the solution.

Contact me for a complete analysis of your financial situation to see if you qualify for a short sale, for a loan modification and whether your home can be saved.  Only by hiring the services of a professional attorney will you be provided accurate and complete information to save you from a deficiency.

TRUST  |  COMMITMENT  |  RESULTS

Law Offices of Jacqueline A. Salcines, PA

706 S. Dixie Highway

Second Floor

Coral Gables, FL 33146

305 |  669  | 5280

 

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INDEPENDENT FORECLOSURE REVIEW AND FORECLOSURE SETTLEMENT CHECKS OFFER LITTLE RELIEF TO AILING BORROWERS

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Way Signs "Bailout - Collapse"As the third round of foreclosure review checks went out Friday, my office is inundated with calls as to what these checks represent, and more importantly, will depositing them waive the borrowers rights to pursue banking and lending violations by the lender?

As of April 25, 2013, 1,150,328 recipients have cashed or deposited $1.1 billion in checks from the settlement reached in January between 13 servicers and federal regulators.  The servicers include Aurora Bank, Bank of America, Citibank, Goldman Sachs, HSBC, JPMorgan Chase, MetLife Bank, Morgan Stanley, PNC, Sovereign, SunTrust, U.S. Bank and Wells Fargo.

This new agreement, which  replaces the poorly structured and obsolete “Independent Foreclosure Review process”, which required consent by the borrower, automatically calculates the amount of funds owed the borrower based on the amount of the loan, and arbitrarily remits checks by mail to the borrower.  Unlike the Independent Foreclosure Review, the new settlement is based on the “unpaid balance of the loan” and not the amount of assistance provided to the borrower.    This shifts the focus to assist higher priced homes with larger unpaid balances.  About 2.3 million borrowers will receive $300.00.

The payments will range between $300.00 and $125,000.00, depending on how much harm a borrower potentially suffered as a result of actions by the mortgage servicer.  The vast majority of the recipients of the $300.00 check, include borrowers who had a loan modification request approved but still ended up in foreclosure.  They also include more than 800,000 borrowers whose servicers did not participate in the loan modification or failed to offer any help, when their loan clearly merited it.

It is estimated that up to 1082 borrowers who lost homes in foreclosure even though they were protected by the military services may get up to $125,000.00 as well as those who lost homes in foreclosure and were not even in default. As crazy as that sounds, it has occurred.

Borrowers who were in an active bankruptcy  and the foreclosure sale went through anyhow, may be eligible to receive between $62,500.00 and $31,250.00 .

Overall, borrowers will only get a fraction of the amount they are truly entitled to based on bad banking practice and violation of law.

The banks that did not join the settlement include OneWest, EverBank and GMAC Mortgage.

The new agreement also does not require banks to fix a borrowers credit, specially if it was reported erroneously.  The borrowers would need to go after the bank independently to get any erroneous information removed or corrected.

The settlement will do little to repair the long standing effects of wrongly filed foreclosures, or sales of properties in foreclosure that should have never been sold. However, it is a start.

The final million dollar question remains …” will depositing the check result in a waiver and release of claims by the borrower against the servicer”.  As with all legal settlements, you are urged to consult with an attorney to review the specific terms of your particular settlement in advance of depositing any check, to see what, if any rights, are being waived.

Call us for a free consultation regarding your eligibility.

Law Offices of Jacqueline A. Salcines, PA

706 S. Dixie Highway

Second Floor

Coral Gables, FL 33146

305  |   669  |   5280

 

 

 

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FHFA ANNOUNCES NEW STREAMLINED MODIFICATION PROGRAM INITIATIVE

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Loan Modification Green Road Sign with dramatic clouds and sky.

In a push to simplify mortgage modifications and assist homeowners that could not previously qualify under the traditional modification and Making Home Affordable Program, the FHFA (Federal Housing Finance Agency) announced on March 27, 2013, a new simplified modification program.  Called the Streamlined Modification Initiative, the program was created for all Fannie Mae/Freddie Mac backed loans,  to assist borrowers in maintaining homeownership.  Many borrowers who were ineligible or disqualified on the traditional HAMP plans, may now qualify since certain requirements, such are documenting hardship, are now waived under this new initiative.  This will encourage borrowers that have ceased making mortgage payments on their homes, to seek modifications, avoid foreclosures and stay in their homes. And as with HAMP modifications, principal reduction of the mortgage balance may be possible.

The program involves Fannie Mae and Freddie Mac mortgages and in order to qualify, preliminarily, the following criteria must be met:

  • Must be at least 90 days to 24 months delinquent on the mortgage payment
  • Loan must be guaranteed by Fannie Mae or Freddie Mac
  • First loan must be at least 12 months old
  • May not have modified more than two times previously

“The key difference is that borrowers will not be required to document their hardship or financial situation, but will be able to accept a Streamlined Modification Offer by simply making the trial period payments and agreeing to the terms of the modification.”

Source:  Federal Housing Finance Agency News Release March 27, 2013.

The Streamlined Modification Initiative Program is set to begin on July 1, 2013.  As of that date, servicers whose loans fall under the above parameters must identify the loans/borrowers that qualify and send them an “OFFER LETTER” which will include the “modified proposed payment“.

As with HAMP Modifications, principal reductions may be available depending on ratios and values determined by the lender.

Unfortunately, those borrowers that are more than 24 months past due on their mortgages will not qualify.  The FHFA has determined that with such a high deficiency/arrearages, the loan to value ratios will eliminate them from the program.

Second home loans owned and/or serviced by Fannie Mae and Freddie Mac are also eligible under the Program as well as investment properties.

To find out more, visit our website at WWW.SALCINESLAW.COM or call attorney Jacqueline A. Salcines, Esq. at (305) 669-5280 for a no cost consultation, to see whether your loan is owned/serviced or guaranteed by Fannie Mae/Freddie Mac and whether you qualify.

TRUST    |  COMMITMENT   |  RESULTS

 

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HOMEOWNERS HAVE EQUITY AGAIN

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The Wall Street Journal has reported that the Rising Prices of Homes has drastically shrunk the ranks of Underwater Borrowers”.  Source:  The Wall Street Journal  February 25, 2013.  To read the full article click the following link:  http://blogs.wsj.com/developments/2013/02/21/rising-prices-shrink-ranks-of-underwater-borrowersHome floating on a life preserver.

In fact, according to the Article, and citing from reports by Zillow, “around 2 million homeowners moved back above water last year”.

So what does this mean for our South Florida market.  Well, what once was considered a short sale, may in fact now be a regular sale.  Sellers that were forced to sell their homes because of trouble making mortgage payments due to either having entered into subprime loans, adjustable interest rate mortgages and fast approaching balloon mortgages, may now have equity. This equity translates into the ability to refinance their home and take advantage of  low mortgage rates OR sell their home and make a profit.

“While the looming release of shadow inventory is expected to affect prices and perhaps “burst the bubble” once more, South Florida home owners can take advantage of the rise in prices to set their objectives in place”.  Jacqueline A. Salcines, Esq, real estate attorney.

Now is the time to consult a real estate expert to find out what your home is worth and decide whether to sell the home or refinance.  In reality, nobody knows how long this new bubble is going to last and one might as well take advantage of the life preserver.

LAW OFFICES OF JACQUELINE A. SALCINES, P.A.

 

 

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