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As reported in DSNews.com, government officials have announced changes to the administration’s Home Affordable Modification Program (HAMP) which are expected to extend relief to a larger share of struggling homeowners as well as renters, according to federal officials. One of the key adjustments to the program centers around principal reductions. HAMP currently includes an option for servicers to provide underwater homeowners who are struggling with their payments with a modification that includes a principal writedown. To encourage investors to agree to principal reduction modifications, Treasury is tripling the incentives for such restructurings, paying from 18 to 63 cents on the dollar, depending on the degree of change in the loan-to-value (LTV) ratio.

As we’ve often seen in the market, Fannie Mae and Freddie Mac remain obstacles to both loan modifications and short sales by refusing principal reduction in loan modifications and restricting short sale contrbutions to junior lenders.  Since these two GSE’s own or guarantee up to 80% of all residential loans, they have a significant effect on market recovery.

The Federal Housing Finance Agency (FHFA) has prohibited Fannie Mae and Freddie Mac from employing HAMP’s principal reducing option for their borrowers. Treasury has notified FHFA that it will pay these same principal reduction incentives to Fannie and Freddie if they allow servicers to forgive principal in conjunction with a HAMP modification. FHFA issued a statement in response noting that it recently released analysis concluding principal forgiveness does not offer any greater benefits than principal forbearance as a loss mitigation tool. But the agency says it will reassess the investor incentives now being offered, taking into consideration the number of eligible loans, operational costs to implement such changes, and the potential effects of incentivizing borrowers to remain current.

Among the other changes announced, borrowers who are struggling because of debt beyond their mortgages, such as second liens and medical bills, will be eligible for an alternative program evaluation with more flexible debt-to-income criteria. In addition, Treasury will expand eligibility to include investor properties that are currently occupied by a tenant as well as vacant properties slated for rental use. Tim Massad, Treasury’s assistant secretary for financial stability says single-family homes serve an important function as affordable rental housing, and foreclosure of investor-owned homes has disproportionate negative effects on low- and moderate-income renters, as well as communities.

The deadline for HAMP will be extended for an additional year through December 31, 2013. Time will tell whether this change actually yeilds results. Meanwhile, if you or someone you know is struggling with an upside-down property and don’t know what to do, our Consultation Program can offer knowledge of what to expect and form strategies to either keep the property or move on with as little financial risk as possible.  To schedule a Consultation, please contact our office at 916-283-7956.

Scott Ivey is Realtor and Team leader with Connect Realty, for additional information on what I do for families, please visit my home page at http://www.scottivey.net.

You may also  join me on Facebook by clicking here.

Scott Ivey

Thinking about a career in Real Estate? Want to kick your current career into high gear? Visit DiscoverConnectRealty.com

The information presented in this Article is not to be taken as legal advice. Every person’s situation is different. If you are upside-down on your loan(s), especially if you’re facing a lender lawsuit, get competent legal advice in your State immediately so that you can determine your best options.

Here is a wonderful article I read concerning Life Settlement Investing with a Self-Directed IRA by Munzer Ghosheh, who is the Business Development Manager for The Entrust Group

The life settlement market has burgeoned into a $20 billion industry and according to Bernstein Research, is on track to exceed $160 billion over the next few years. For those who are unfamiliar with it, a life settlement transaction is the sale of an existing life insurance policy to a third party for more than its surrender value, but less than the net death benefit. Many seniors are taking advantage of such transactions instead of traditional life insurance policies. It enables them to sell their policy in a life settlement transaction for cash today, rather than wait and have their beneficiaries collect the proceeds once they pass away.

A life settlement investment entails buying into the beneficiary interest of a policy or policies and experiencing the return on investment just as a beneficiary in any life insurance policy would receive the payout. This unique investment tool is available to both small and large investors. They may utilize non-qualified/cash funds or qualified retirement account monies held within an Entrust self-directed IRA to fund the investment. This type of investment can serve as a defensive strategy because the return is relatively immune from the negative effects of a slow economy, stock market volatility, interest rate fluctuations, the softening of the real estate market, soaring oil prices, unexpected geopolitical events, etc. The integrity of the investment is further protected as the payout comes from some of the largest, most reputable, financially sound insurance companies in the world.

When considering potential alternative investments within a retirement plan, one might consider life settlement investments as an option. The rapid growth of this industry stems from the fact that the investment allows for a win-win scenario where the senior is allowed to access hidden assets and the investor diversifies away from a traditional investment portfolio. To learn more about this unique investment opportunity, contact your local Entrust office for more information.

By Munzer Ghosheh

Munzer Ghosheh is a Certified IRA Services Professional and Business Development Manager for The Entrust Group – Los Angeles, a premier provider of self-directed retirement plans. He can be reached at mghosheh@theentrustgroup.com or 310-899-3811.

Scott Ivey is Realtor and Team leader with Connect Realty, for additional information on what I do for families, please visit my home page at http://www.scottivey.net.

You may also  join me on Facebook by clicking here.

Scott Ivey

Thinking about a career in Real Estate? Want to kick your current career into high gear? Visit DiscoverConnectRealty.com

Well I did it again. I allowed myself to get over weight. I guess I fell into the old trap, get fit, feel good, enjoy all the good food I can and stop going to the gym. Well I am paying the price now.

When I first went back into the gym I found that my old one hour on the elliptical was not so easy to do any more and it has taken me about a week to get back to doing an hour. However I’m still not back to my old routine. When I was at my best I was burning an average of 1000 calories on the elliptical. So far my best is about 850 after a week, but I can feel my strength coming back.

I did a little research and found that your body is incredibly adaptive, and within just 2-4 weeks of exercise, your brain learns to recruit more muscles and move your body more efficiently. This is called a “neuromuscular adaptation.” Within 4-6 weeks of exercise, your body has completed significant anatomical changes that include increased muscle, wider blood vessels, higher blood volume, and more efficient oxygen delivery. Well I’m about to the week 2 stage and I can already feel the changes happening again.

If you are on a similar path, I welcome you to join me as I work to regain my former self (figure-atively speaking). Please feel free to friend me on Myfitnesspal (http://www.myfitnesspal.com/scottivey1)  Lets help each other achieve our goals and hold each other accountable. We can do it.

Scott

Scott Ivey is a local Real Estate agent in the greater Sacramento, Ca area, specializing in single family homes and community. Should you like more information on buying, selling or perhaps have questions about shorts sales, buying or avoiding foreclosure, Scott can help.
Feel free to contact Scott Ivey at 916-283-7956 or by visiting http://www.scottivey.net

When you apply for a loan one of the things you need to consider is the term of a loan. Most lenders will offer you a 30 year or 15 year term. The insider tip here is that you have other choices that most lenders will not mention to you and you might want to ask about them.

There are also 25, 20, and 10 year terms and there could be a huge difference in the total cost of your loan depending on your choice.

Let’s look at the example of a $200,000 loan

30 Year Fixed Loan at 6%
Principal and Interest Monthly Payment – $1,200
Total of 360 (30 Years) Payments – $432,000

25 year Fixed at 6%
Principal and Interest Monthly Payment – $1,290
Total of 300 Payments (25 Years) – $387,000

So for $90.00 per month you are able to save $25,000 over the life of the loan which is a significant difference. These figures are not all inclusive and other factors should be considered but you get the basic idea.

As a realtor, I see a lot of people considering mortgage options. If you would like more information on mortgages and current rates. Just give me a call and I will direct you to a few lenders I know who will take good care of you.

Please join me on Facebook by clicking here.

Also Visit: http://www.scottivey.net

Scott Ivey

Realtor, Connect Realty Associate #3015

(916) 283-7956 Direct

(888) 887-3528 Fax

Subscribe to Scott Ivey’s Blog Updates by Email

DRE: 01438657

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Thinking about a career in Real Estate? Want to kick your current career into high gear? Visit DiscoverConnectRealty.com

As I get older I become keenly aware of my mortality. In my relatively young 44 years, I am already feeling the effects of age. Taking a header on my mountain bike just doesn’t seem as trivial today as it did when I was 20. When I was in my twenties, someone who was in their forties was old. Today I am pleased to have friends and family in my life that that are in their eighties and older and you know what I have found, they are just as young as I am. The fact of the matter is, despite how old we get, our minds are timeless. I still think and dream as a boy only now as an adult, I am able to bring some of those dreams to life. In my mind, I feel exactly as I did when I was 10, 20, 40 and more.

So why do I bring up what some would consider a taboo subject and what does that have to do with Facebook.

Today I was introduced to a concept that I had not considered. Our bodies will one day die but our online persona will live forever. Do we consider what we post today will outlive ourselves? Do we want our post from today haunting us in the future? Is what you post in private, going to stay private after you’re gone? Is that rant you wrote about a former spouse, friend, co-worker, or stranger really something you want to have for your legacy?

In short, I hope you will consider two things. One. Does what you say or post today really matter in the long run? And Two. How will your online legacy reflect your life?

We have but one life to live and forever to share it. Make it all the best it can be.

For more on the subject of our social media afterlife:

Please join me on Facebook by clicking here.

Also Visit: http://www.scottivey.net

Scott Ivey

Realtor, Connect Realty Associate #3015

(916) 283-7956 Direct

(888) 887-3528 Fax

Subscribe to Scott Ivey’s Blog Updates by Email

DRE: 01438657

.

Thinking about a career in Real Estate? Want to kick your current career into high gear? Visit DiscoverConnectRealty.com

Published November 30, 2011 By Mike Colpitts @ http://www.housingpredictor.com/2011/underwater-mortgages-drop.html

The US Congress is considering America’s first system for censoring the Internet. Despite public outcry, the Internet Censorship bill could pass at any time. If it does, the Internet and free speech will never be the same.

I know that most people say that they want government less involved in their lives but unfortunately that is exactly opposite what is happening with your rights on the internet. Disguised as a means to stop piracy the real result will introduce censorship and abuse. For example, under the new law, it becomes a felony with a potential 5 year sentence to stream a copyrighted work that would cost more than $2,500 to license, even if you are an ordinary noncommercial user. Singing a pop song on Facebook could be a felony. I know of many people that have added a link on Facebook to a YouTube video that contained music or music video of a celebrity or popular band. Did they break the law or participate in the marketing of that particular band?

What can you do to help: Visit http://americancensorship.org/ today.

Watch the video below for more information

More about who is trying to kill the net, who is trying to keep it free!

• House takes Senate’s bad Internet censorship bill, tries making it worse
• Protect The Internet
• SOPA: Hollywood Finally Gets A Chance to Break the Internet
• SOPA on OpenCongress
• PIPA on OpenCongress

Please join me on Facebook by clicking here.

Also Visit: http://www.scottivey.net

  Scott Ivey

  Realtor, Connect Realty Associate #3015

  (916) 283-7956 Direct

  (888) 887-3528 Fax

Subscribe to Scott Ivey’s Blog Updates by Email

DRE: 01438657

.

 

Thinking about a career in Real Estate? Want to kick your current career into high gear? Visit DiscoverConnectRealty.com

 

 

Recently I have been asked about recourse and non-recourse loans. I am not an attorney and any information concerning your situation should be reviewed with an attorney. That being said, here is what I understand concerning Mortgages.

In California, purchase money loans made on your home are non-recourse. (Roseleaf Corp. v. Chierighino, 59 Cal. 2d 35, 41 (1963) and Spangler v. Memel, 7 Cal. 3d 603, 610, and 612 (1972).) Furthermore, if the borrower has never refinanced and the property is still encumbered by the original purchase money deed, the anti-deficiency protection remains. (Foothill Village Homeowners Ass’n v. Bishop, 68 Cal. App. 4th 1364, 1367 n.1 (1999).)

Ok, some terms you might not know. If when you purchased your home you obtained financing using one or more mortgages. This is called purchase money. Purchase money, simply put, is a loan(s) used to buy a home. In some ways, it is easier to describe what a purchase money loan is not. It is not a loan that is taken out after you buy a home such as a home equity line of credit or a home equity loan. It is not a refinance mortgage. A purchase money loan is evidenced by the trust deed or mortgage that a home buyer signs at the time the home buyer purchases the home.

Under California law, a lender cannot pursue a borrower for a deficiency balance resulting from a first mortgage used to purchase a residence. (Cal. Code Civ. Proc. § 580b)

Now on to the second mortgage. If the second mortgage was taken out at the time of purchase and was used as “purchase money” then it is a non-recourse loan (Brown v. Jensen, 41 Cal.2d 193 (1953) But let’s say the 2nd mortgage was set up as a line of credit, often called a HELOC.  First, it’s important to remember that a HELOC can be a purchase money loan.  Many people assume that if a loan is a HELOC, it is not purchase money.  That is not necessarily true.  If the money from the HELOC was only used to purchase the house, it is still a purchase money loan.

It important to note that the two loans, in order to be purchase money and non-recourse, must have been taken out at the same time when you purchased the home and have been for the sole purpose of financing the home.

If you have any additional questions concerning your particular situation, I would advise you to speak to an real estate attorney to review your loan document and particular situation in detail.

If I can help clarify things further, please feel free to call me.

Scott