Lawyers go to Jail!

12 plead guilty in $100 million mortgage fraud

New York City prosecutors have charged 25 people, including lawyers, bankers, mortgage brokers and appraisers, and a mortgage company, with committing mortgage fraud. Robert Morgenthau, Manhattan District Attorney, said AFG Financial Group Inc. (AFG) and its accomplices inflated property values, created phony loan packages, forged W-2 forms, and bank documents to get loans from banks for unsuspecting buyers. Buyers did not know that the transactions were a sham. AFG, through its attorneys, would ask that the mortgage money be deposited in escrow accounts. Instead of paying the seller, AFG would take the money for itself. "These attorneys often did not meet or communicate with their so-called clients until the day of the closings ... and were paid off by AFG for their efforts," Morgenthau said. Buyers were left with bad credit while the lender foreclosed the seller's property and took ownership. Banks which were cheated include New Century Mortgage Corp., which lost $32.2 mill ion; Countrywide Home Loans, which lost $7.9 million; and Washington Mutual, which lost $8.6 million. "This is one of the reasons for the mortgage crisis," said Morgenthau. Among those charged, 12 have pleaded guilty. All those convicted face up to 25 years in prison.
This is a step in the right direction by punishing the one who did in fact break the public trust. This is the only justice I have seen in a long time.

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How to Stop Foreclosure In California

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Figuring out our economy

There are many mixed signals about the direction of our economy, don’t be hoodwinked by these signals. First of all…Don’t believe our government, they are the cause of it all, its simple politics and our economy are not the same and by our deficits it is apparent they don’t mix either. Secondly, if you want to know the truth where our economy is headed just look to the IMF (International Monetary Fund).

Our government keeps telling us they THINK things are starting to be rosy. Washington thinks wrong! Where is the evidence that a recovery is coming? There isn’t any. Warren Buffett said last week that he hasn’t seen any of the “green shoots” that Washington is talking about, and instead Mr. Buffett warns of significant inflation is raising it ugly head and is sure to give us a nasty visit.

Last week the IMF predicted a “deepening recession” WORLDWIDE! The IMF can point to fact and figures to back their prediction. FYI: IMF is the equivalent to our Federal Reserve Bank; you know where all the bail out money comes from.

I don’t think you will be able to wait this thing out. It appears we may be looking at two to three years more of a bad economy. Now is the time to work on getting your financial house in order. From my prospective real estate has always been a hedge for what I see us facing today.


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Stop Foreclosure In California

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Foreclosure/Short Sale Information:
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Medical Expense cause Bankruptcies

Last week average fixed interest rates jumped to 5.32% and guidelines for underwriting loans became tougher.

62% of bankruptcies had medical expenses as their main expenditure item says Harvard Law and Medical Schools along with Ohio University. The report goes on to say 75% of the bankruptcies filers had health insurance but it was not enough to cover their needs and they had to file for bankruptcy to survive. Furthermore, the report indicates it’s not enough to only “cover the uninsured, we need to rethink health reform”.

And we thought the main cause of bankruptcies were all those convertible real estate loans!


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Did I mention the Feds couldn’t help us either?

Unemployment rates are headed towards double digits. Currently it is at 9%. This is causing, once healthy borrowers, being faced with a foreclosure as they are losing their jobs or at least overtime they are use to get is becoming less and less. So it is not just the sub-prime loans and unemployed workers that are having problems. Hard working Americans are too.

What is sad, our government can’t help. According to Economy.com 60% of defaults on mortgage are due to unemployment. Did I mention, the Feds couldn’t help either?

What the unemployment rate is doing is for home values to decline. America is faced with record foreclosures, tight lending practices, and a bunch of unsold homes because it is tough to find and keep a job that will pay the bills. There are other reasons obviously, however, they are for discussion on another day.

How bad is this decline? Standard and Poor/Case Shiller Home Price Indices says from 3/08 through 3/09 there was a decline of 18.7% while we are on track for 2009 to see a annual rate of decline of 25%. Even Adam York, one of the guys over at Wachovia, says the decline will continue way into 2010.

Did I mention the Feds couldn’t help us either?


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Heading in the RIGHT direction!

This happen over the weekend and I thought you might want to know this if you have not seen it before.

First of all the Treasury Department indicated it would reward lenders who closed on properties with a short sale. Likewise the Feds issued a few guidelines for short sale so banks now can figure out how to price a short sale.

Bank of American is taking the lead on this by loosening its policies on 2nd mortgages. They now allow 2nd mortgages 5% of the loan amount as a payoff. The good part is if B/A is the second lean holder they take the 5% automatically.

What that means is a big challenge to short sales has been addressed by the Feds and adopted by banks. It’s about time these guys start working together. Today they get an “Atta-boy/girl”

Housing loses again!

"Credit card debt is not the most serious problem facing America today. Empty houses are." Click headline for full report.

Brace yourself for some very hard decision by many Americans as to if they should stay home or should they go. Over 600K foreclosure the last quarter. No new jobs. Unemployment claims up.

The bottom to this market will not turn around until investors come back into the market and unemployment levels out.

If you owe more on your home than it is worth go to www.StartFreshLLC.com for help.

Stop Foreclosure In California

I hope this works!

Jobless claims are UP, again.

www.StopForeclosureInCalifornia.com

The number of people filing new claims for jobless on an ongoing basis benefits in the week ending May 9, was up 32,000 according to the US Labor Department. These claims rose to a record high for the 15th straight week.

34 Seconds video: http://www.youtube.com/watch?v=JUgIPfgcgHs

It's a bounce!

All around my town I hear people talking about how we have hit the bottom of this downward economic cycle. We, they say, are on the uphill track now. Really?

I like to be optimistic as much as the next guy, however, have you seen how unemployment is up, there are no new job opportunities being offered, immigration is down, the U.S. budget deficit for this year is up by $89 billion, coming in at $1.84 trillion overall -- a massive 12.9 percent of gross domestic product.

Our government is citing the recession, corporate bailouts, and higher costs for social safety-net programs like unemployment insurance. Surprise, Surprise, Surprise!

Spending on government rescues for the financial and automobile industries was also a factor in the higher deficit, said a White House official.

To be considered to be in a upward economic cycle you need to see investor returning to the market and real estate sales to increase. To some it may look like prices are increasing, they’re not.

Fannie Mae moratorium on foreclosures is being lifted this month and you will see more foreclosure coming onto the market. This translates to lower selling prices causing lower fair market prices of most homes.

We haven’t hit the bottom we have just bounced off a resistant level that I think will only be short lived. It’s sad, and one thing that is a good thing to know…this too shall pass. We are all going to be ok. Just not with this short burst.

http://www.StopForeclosureInCalifornia.com

U.S. banks race to fill $74.6 billion stress test hole

WASHINGTON (Reuters) - U.S. regulators told top banks on Thursday to raise $74.6 billion to build a capital cushion officials hope will restore faith in financial firms and set a course out of the deepest recession in decades.

Facing A Foreclosure? Beware of the "Ostrich Syndrome!"

Facing A Foreclosure? Beware of the "Ostrich Syndrome!"
Prepared By Start Fresh LLC

Disclaimer: This information does not constitute legal advice. Please consult a real estate attorney and/or a CPA to determine it this information is applicable to your particular circumstances.

Are you facing a foreclosure? You’re not alone. On April 16, 2009 RealtyTrac, an online service that lists foreclosure properties throughout the U.S., reported a record 803,489 foreclosure filings in the first quarter of 2009.
The rising unemployment rate in the current economic downturn is fueling the foreclosure firestorm. The surge is expected to continue despite President Obama’s Foreclosure Plan designed to help borrowers avoid foreclosure by providing incentives to lenders to ease restrictions on refinancing for people who owe more on their mortgages than their homes are worth.
If you are among the hundreds of thousands in foreclosure, you may feel desperate, frustrated, angry, depressed, helpless and confused about your options. If you’re like most people, your natural inclination in the face of a crisis is to do nothing - hoping it will pass or go away. It won’t go away! Emulating an ostrich by sticking your head in the sand and doing nothing won’t improve your circumstances. You can avoid the "Ostrich Syndrome" and recover from a financial disaster by taking bold, swift action now. Here’s what you need to do.

Talk to Your Lender
Call your lender (banker) and tell them you are experiencing financial hardship and that you are unable to make your current monthly mortgage payments. Ask your lender for advice and assistance. The lender will be motivated to help because the alternative is for the lender to foreclose and try and sell the house in this recessionary housing market. The lender knows s/he is unlikely to recoup their loss.
In some cases lenders may be willing to renegotiate your mortgage or agree to some kind of loan modification. They may be willing to change the interest rate or change the amortization table (the amount of time you take to pay off the loan) in order to reduce your monthly payments. Other options available to stop foreclosure proceedings include:

Pay the Delinquency and Reinstate the Loan - Under most circumstances, lenders are required to accept payment of the full delinquency and reinstate the loan. Of course, that assumes you are able to secure the funds to repay the debt. For example, some people may be able to refinance their property. Others may cash in 401Ks or sell assets (such as jewelry, stocks, or bonds) to get the funds to pay off the debt. Others may borrow money from relatives. At the time of repayment, the delinquency may include certain legal costs if you are already in foreclosure. Many lenders require certified funds for reinstatement.

Forbearance – This is a fancy word for temporarily delaying your loan payment for a short period of time and then instituting a loan repayment plan. The most common way of resolving a loan default is to work out a plan, which will let you repay part of the delinquency balance each month, along with your regular monthly installment. If you are temporarily unable to meet your monthly mortgage obligation, your holder may extend forbearance by agreeing to suspend payments for a limited period of time until you are able to begin a repayment schedule. In some cases, the lender may simply add the payments that you missed to the principal of your newly modified loan balance.

Private Sale - If you do not believe you will be able to reinstate your loan and cure the default, a private sale of the property will enable you to meet your obligations and receive any equity you may have built up. Although there are exceptions, most private sales result in the seller receiving more than the amount owing on the loan.

Deed in Lieu of Foreclosure - If you will be unable to cure the default, and a private sale does not appear realistic, your lender may consider accepting a deed in lieu of foreclosure. If there are no liens on the property, and your lender agrees to accept a deed, you will have to sign legal documents transferring full ownership of the property to your lender. Be careful! Some credit reporting agencies may still consider this a foreclosure transaction and show it as such on your credit report!

End of part 1

Foreclousre Filings UP 9% first quarter

Foreclosure filings -- default notices, auction sale notices and bank repossessions -- were reported on 803,489 properties in the first quarter, a 9 percent increase compared with the fourth quarter of 2009 and an increase of nearly 24 percent from the first quarter of 2008, according to a RealtyTrac® report. One in every 159 U.S. housing units received a foreclosure filing during the quarter. Foreclosure filings were reported on 341,180 properties in March, a 17 percent increase compared with the previous month and a 46 percent increase compared with March 2008.
“It appears that demand is up in some of the harder-hit areas, particularly on bank-owned REO properties that first time homebuyers and investors see as bargains,” said James J. Saccacio, chief executive officer of RealtyTrac®. “But it’s unlikely that this increased demand will be enough to offset the growing number of foreclosures in the pipeline, accelerated by rising unemployment rates.”

http://www.realtytrac.com/ContentManagement/pressrelease.aspx?ChannelID=9&ItemID=6180&accnt=64847 click to read full article.

So you think you know loan Mods?

Read this article for information on Loan Modifications and how your government is planning to help your fellow citizens. http://mandelman.newsvine.com/_news/2009/04/06/2649424-what-i-now-know-about-the-foreclosure-crisis-loan-modifications?groupId=87

You should sleep well tonight now.

Is there hope in stopping foreclosure?

Well is there hope for homeowners who owe more on their homes than what they are worth? Yes there is always hope! See what Reuters has to say: http://www.reuters.com/article/GCA-Economy/idUSN2441697520090424

Me I still don't see foreclosures and short sales dropping any time soon. We still has unemployment, no new jobs, and lack of new immigration of people being able to buy a home. Until those three sectors of our economy turn in opposite direction it is going to be difficult to Stop Foreclosures

To stop a foreclosure you can go to www.StartFreshLLC.com and read articles about time lines of a foreclosure and how you may be able to stop a foreclosure with proper action on your part.

I can help.

Fed's Loan Mod New Website

HOPE NOW applications available online Troubled borrowers hoping to participate in the Obama administration’s mortgage modification and refinancing programs now can apply online for help from their mortgage servicer. Borrowers can submit details about their financial situation at www.HopeNow.com, the Web site operated by the coalition of mortgage servicers and nonprofit counselors.

The online application form supplements the existing HOPE NOW hotline, (888) 995-4673, and servicers are promising to respond to applications within five to seven business days to confirm the process has begun

You may find more foreclosure information at www.StartFreshLLC.com

“PPIP” is what Washington (FDIC) is calling it.

“PPIP” is what Washington (FDIC) is calling it.

It means Public - Private Investment Program, which is what the Feds want to use as a vehicle to liquidate all the toxic real estate assets off the books. A toxic real estate asset means LOANS.

There is not enough money in the government coffers to buy all the toxic real estate assets. It doesn’t matter who or what is the cause. These toxic real estate assets need to be liquidated.

The Feds are going to guarantee this program. Additionally, they will be given some leverage to private investors to buy such loans.

If this works out well this model may be used for comsumer and commercial toxic asset loans too.

What does this mean to you? It means there will be good buys for you if you have good credit. Call me for more information.

"Ostrich Syndrome"

"Ostrich Syndrome" action by homeowners which represents a counter-productive denial of reality.

If you know someone that owes more on their home than it is worth then be the true friend that you are and help them out. By telling them about their options to prevent a foreclosure on their credit.

As you know they would benefit from an interview with Start Fresh LLC at www.StartFreshLLC.com.

We can, we will.

Top Ten Foreclosure States

Forbes, the top ten foreclosure states are currently:
1. California
2. Florida
3. Arizona
4. Nevada
5. Illinois
6. Michigan
7. Ohio
8. Texas
9. Georgia
10. Virginia