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.
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Why do more and more attorneys charge homeowners a monthly fee to defend their foreclosures and do little to earn their trust or save their home? The practice has been frowned upon by agencies and the motives behind such actions called into question as unethical.
“In my law practice, I find more and more homeowners coming in to retain me, after having paid other attorneys, thousands and thousands in attorneys fees, month after month, and are now faced with a final judgment hearing or foreclosure sale date, with no solution to save the home or the borrower from judgment suggested or initiated.” I am certainly not suggesting the attorneys named here follow these practices, nor knocking the ones that do. Everyone has to make a living and the attorneys that charge monthly are certainly not forcing borrower clients to pay. They do so because they feel they are getting value for their buck. But many attorneys withdraw from the client foreclosure cases after thousands are paid by the client, either because they want more monies or because they tell the borrower that “time has run out” and there is nothing else they can do. Now the homeowner is left without a home and with a judgment against them.
On a daily basis, clients sit across from me in my office, and tell me that they have paid $20,000.00 in legal fees to a foreclosure attorney, have never once met with the attorney (just the support staff) and their case is set for trial or has a sale date and the attorney is dropping them, having done nothing to save the home. I find this practice unacceptable.
Why are foreclosure defense attorneys not finding viable solutions for their clients? And often times, by the time they are in to see me, it is too late. They are 3 or 4 years in arrears and the unpaid balance is just too high that the bank will not even consider a modification. Other times, the short sale could have been negotiated with a cash incentive to the borrower/seller but the incentive was not preserved or requested by the attorney.
We are here to help.
At the Law Offices of Jacqueline A. Salcines, PA, every effort is made to protect the homeowner and find the program that is right for them, before they are faced with a final judgment hearing or foreclosure sale date. Every potential client sits with attorney Jacqueline A. Salcines, PA and she alone, as both attorney and accountant, analyzes the financial information provide by the client and home values, to determine what options exist.
Thereafter, simultaneous with the foreclosure defense, WHICH IS CHARGED AT A FLAT FEE AND NOTHING IS PAID MONTHLY, the loss mitigation solution is sought. Be it loan modification, short sale, deed in lieu or short payoff, we fight for you and your rights.
Call us today for a free, no obligation consultation.
Visit our Website at WWW. SALCINESLAW.COM.
VISIT US ON AVVO.COM AND see what other satisfied clients are saying.
https://jaspa1.wpengine.com/wp-content/uploads/2018/07/logo_final_dark1.png00jaspa1https://jaspa1.wpengine.com/wp-content/uploads/2018/07/logo_final_dark1.pngjaspa12013-06-20 19:13:222022-12-20 13:59:39WHY PAY A FORECLOSURE ATTORNEY MONTHLY TO DEFEND YOU
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):
Be behind on their mortgage by at least 90 days but no more than 2 years;
Market to Market loan to value ratio must be greater than or equal to 80 percent (we figure this out for you).
The mortgage must have originated at least 12 months prior to the date applying for the modification
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.
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This is the first of an informational series to provide Seller and Buyers alike with the necessary tools and know-how to make their sale or purchase of real estate a smooth transaction. I hear it often from clients. This real estate business is so stressful. Should you sell now with property values rising? Should the Contract for Sale and Purchase be reviewed by a real estate attorney before or after it is signed? What if you sign and then something needs to be changed? Are you bound by the terms? Is there a three day recission period? All valid questions.
And while we know that selling and buying real estate can be a daunting task, we at The Law Offices of Jacqueline A. Salcinesdedicate our practice to REAL ESTATE LAW. We are here to take the stress out of the transaction for you so that you can rest, relax, close and get on with your life.
Sellers for the most part have it easy. You name your price. Sign up with a realtor. Sign a contract. Wait for closing. Show up. Sign. Get paid!.
Well…NOT SO FAST! Many sellers don’t know that they can obtain the services of their own real estate attorney to represent them in the sale. Although the buyer usually says Oh… don’t worry. My attorney or my title company will prepare your documents, SELLER BEWARE! When the buyers title company represents the buyer, it is doing just that, only guarding the buyers interests. The buyers title company will prepare and examine title for the buyer and though the seller will be charged regardless for their services, they DO NOT REPRESENT THE SELLER. Yes. You heard correctly. You will get charged a fee but the DO NOT REPRESENT YOU. Their interests and loyalty lies with the buyer. Therefore, I don’t know about you, but when you are selling what may be the largest investment of your life, this is a big deal, I want someone in my corner looking out for and protecting my interests.
Sellers are not aware that while the title company should order a lien search to see whether there are any open code violations, or liens, if the title company does not order one, or orders one but does not review it properly, the transaction may close but the seller is on the hook… even 10 years later. If the buyers title company does a shoddy job, then the seller may buy itself a lawsuit. And good luck finding that title company ten years later.
Secondly, many sellers don’t know that under the contract, there are certain costs that the buyer is required to pick up. Many a time, I have seen HUD-1 Settlement Statements on transactions that have closed wherein the seller was charged with a title search or other costs, that the buyer should have paid. Remember, the title company is looking out for the buyer. And quite frankly, with nobody in the seller’s corner, how do they know the difference.
Usual seller costs as closing consist of the following:
Documentary stamp taxes on the deed (.60 cents for every $100.00 sale price in Dade and .70 cents in Broward)
Lien Search/Lien Letters
Wire Fee
Title Search (a discount is usually provided when the prior policy is provided. Again, something that is not told).
Estoppel fees for any Homeowner or Condo Assn.
Prorated taxes from January 1st to date of closing
Past due HOA or Condo Dues
While many Sellers don’t know how to read a HUD, the title company may overcharge or charge items to the seller that do not pertain to the seller. Or, they may undercharge for taxes. How do you know if the right number was used for the proration. Any error may result in less money paid to the Seller at the time of closing.
Sellers are also required to provide a payoff statement of their mortgage. This is something that again, the title company for the buyer may request but WILL NOT review. So if your lender is overcharging you or not providing adequate credit for payments made, they will not alert you. You are on your own.
For these reasons, and many more, it makes sense to hire the services of a professional real estate lawyer.
A real estate lawyer will protect your interests, make sure that once you close, you are really done with the transaction. Not leave anything open that may result in the file being reopened or a lawsuit against you. And will make sure that the figures on the HUD are correct and you get monies that are rightfully yours.
For a small fee, usually less than the title company is charging you to prepare your seller documents, you can have the expertise and experience of a real estate attorney in your corner. For what is usually the larges purchase or sale one ever makes in their life, it makes no sense to go it alone.
Trust the Law Offices of Jacqueline A. Salcines, PA to protect you and your largest asset.
https://jaspa1.wpengine.com/wp-content/uploads/2018/07/logo_final_dark1.png00jaspa1https://jaspa1.wpengine.com/wp-content/uploads/2018/07/logo_final_dark1.pngjaspa12013-05-22 19:42:132022-12-20 13:59:40WHY HIRE AN ATTORNEY WHEN SELLING PROPERTY
If you are like many out there that are struggling to make your mortgage payments and have an FHA loan, there is good news. The government has rolled out a new program that Pre-Approves Short Sale prices for homes where the loans are backed by FHA. In order to qualify, you will first need to make sure that your loan is an FHA loan. This is easily determined by either looking at your mortgage statement or your closing statement. If you are charged and pay PMI mortgage insurance, then you have an FHA loan. Otherwise, you can call your lender or servicer and they will indicate whether it is an FHA loan.
ELIGIBITLY
The difference between this Pre-Approved FHA SHORT SALE and a traditional short sale, is that the borrower is not required to have a contract for Sale and Purchase in order for the lender to start working the file. Rather, the borrower can contact us to apply for the short sale, we will request from the borrower and submit financial documents to substantiate the financial hardship. Once the lender has the borrower’s financial information, they will order an appraisal by and FHA certified appraiser that will determine price. Once the fair market value is determine and the lender further determines what they need to net from the short sale, an approval letter is sent out to us with the listing price, or minimum they will accept. ITS THAT EASY!
TIMELINE
From beginning to end, the process is taking between 30 to 40 days and is hassle free. Moreover, it takes the work away from the realtors of having to play with the numbers and comparables, since the bank will advise what number they need to net from the short sale closing.
MONEY GIVEN TO BORROWER
And even greater news is that the borrowers usually obtain a $1,000.00 incentive check for their own moving expenses.
There are other qualifications that are required of the borrowers. We invite you to call our office to discuss your options and allow us to negotiate your short sale for you.
The Law Offices of Jacqueline A. Salcines, PA,
706 South Dixie Highway, Second Floor, Coral Gables, FL 33146
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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.
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CoreLogic reports that in the 4th Quarter of 2012, over 200,000 properties came up from being “underwater” and a total of 1.7 Million homes in all of 2012. Source: DS News.com To read the full article go to www.dsnews.com/articles/corelogic-17m-homes-moved-into-positive-territoy-in-2012.
What does this mean for those selling… that it is once again a sellers market. That asking price once again retrieves dozens of contracts, over asking price, many from cash buyers.
What does this mean for those buying… that the market is once again competetive and will weed out those looking for distressed bargains.
What does this mean for those looking to modify… that the lenders will most likely make less and less principal reductions, as appraisals show that mortgages are once again not so far apart from fair market value and will not pass the NPV test. Many that refinanced or took out second mortgages or HELOC’s may still experience negative equity, but it may be harder and harder to modify. Proper, uninflated values must be closely calculated and provided to the lenders.
What does this mean for those short selling… that once a BPO is ordered, a bank may likely counteroffer on price as the buyers are coming in too low for fair market value sustained prices.
Whether you are looking to sell or buy, now is the time to once again use increased scrutiny when placing an offer or accepting an offer. It appears that we are once again riding another bubble that may likely burst if inventory is set loose.
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Many things need to be considered when buying a property, regardless of whether your plans are to live in it or whether it is an investment. 2013 marked a year of many changes in the tax code by the Internal Revenue Service, including changes as to how mortgage interest income can be deducted and reported on tax returns, as well as Capital Gains taxes and limits, and numerous others are planned and will take effect upon property purchased in 2013.
If the property you are considering purchasing is distressed, you will have a wide array of considerations. For instance, if the seller purchased in a foreclosure auction or as an REO, was the foreclosure accurately handled and/or dismissed. As a buyer, you will need to make sure that the title is clean and that no other interest holders have rights, that may haunt you after you have signed on the dotted line. This is the important, often overlooked role of the real estate attorney/title agent who will make sure that all this is reviewed prior to closing. Moreover, whether the property and the loans associated with it are being audited by the Department of Justice is also a huge impacting consideration, as it may force titles that were issued to property owners and bona fide purchasers to be reversed, causing siginificant economic damages.
Real estate taxes also have a huge impact on whether a property should be considered or not. In the advent of another real estate bubble, and with home values increasing by dramatic amounts, October may cause us to witness increased assessed values by the Property Appraiser causing once lower valued property taxes to double.
Return on Investmentis also a big consideration. If the property you are purchasing will be improved for rental, the rental values permitted in the particular market need to be assessed. What amounts will you be paying yearly in maintenance, insurance, taxes versus what the market will allow you to charge in rent. Attorney Jacqueline A. Salcines states: “At my firm, we use state of the art realty programs and tools that allow us to calculate up to the minute rental values for the most accurate assessment of what our client can rent the properties they are considering purchasing for. This allows our investors to calculate their return on investment and make a sound decision as to whether to embark on the investment or walk away.” There are countless other considerations that must be evaluated before you sign on the dotted line.
For many, buying a home is the single most costliest investment ever made. It makes sense to have the right professionals by your side to guide you every step of the way.
At The Law Offices of Jacqueline A. Salcines, P.A., attorney Jacqueline A. Salcines is not only a real estate attorney and title agent with Attorney’s Title Insurance Fund, Inc. and Old Republic National Title Insurance, but also an Accountant and Realtor. Of equal importance, our firm has partnered up with Tax Accountants and real estate professionals to provide the best guidance and advice to make sure your decision is a sound one.
Dont got it alone. Hire the services of a professional to assist in making that one decision that may affect the rest of your life.
We are located in Coral Gables and the first consultation is always at no charge.
https://jaspa1.wpengine.com/wp-content/uploads/2018/07/logo_final_dark1.png00jaspa1https://jaspa1.wpengine.com/wp-content/uploads/2018/07/logo_final_dark1.pngjaspa12013-03-19 10:35:132022-12-20 13:59:41WHAT YOU NEED TO KNOW BEFORE BUYING A PROPERTY
Deciding to purchase a home, for many, is the single most costly decision of their lives. Immediately followed by financing our children’s college education, perhaps? Therefore, such a decision is not one to take lightly. While we all know when it is time to buy (either you have outgrown your current home, looking to relocate, better neighborhood, growing family, change in employment) it is not a decision to be made without careful consideration of all factors. Rather, some things to be taken into consideration include:
Is the property priced right. Hiring a real estate professional in this arena can be the single most important decision you make to determine value. A realtor and real estate attorney as myself can run comps and look at closed sales, or determine a High, Low and Median price per square foot. We are currently in a Seller’s market in South Florida and experiencing higher than normal asking/sales prices due to low inventory. Therefore, the Seller may take this into consideration and price the house higher than market sustains. While today it may not matter as prices continue to rise, tomororw, if the bubble bursts again, this may not allow you to recuperate your paying price.
Do your research on the neighborhood.If you have young children, are there other young children nearby? Are the nearby residents owners that will maintain their properties or tenants that may not? What schools pertain to the property? Is there a Homeowner’s Association? If so, what are the rules and regulations you will be required to adhere to? Take trips to the property during different hours so you can get a feel for the neighborhood and neighbors. Going only while it is staged will not give an acucrate depiction of what life will be like after you close. There is nothing worse than buying a property without researching these items and then finding out that your dream home may not be a dream after all.
Ask for a Property Disclosure and perform proper inspections. What looks great on the outside, may turn out to be not so great on the inside. Perhaps your dream home needs a new roof that will put you back thousands of dollars. Or there are wood destroying organishms, or Chinese drywall or mold, that will cause health issues. What other underlying issues are present in the home that the seller knows of? Your realtor or the seller’s realtor must have them prepare and sign a Seller Disclousre that will reveal any known defects or issues with the home that you should take into consideration before putting an offer in.
Are the owners in foreclosure or other liens that can effect the property. While hiring the right attorney will clear any title issues, you may be in a time crunch to move and any home purchased with either a foreclosure or in a short sale, may be time consuming. Clearing any tax liens or making sure foreclosures appeal periods have lapsed, can affect your closing deadline and they are important issues to know before putting an offer on a home.
These and countless other issues arise during the course of a real estate deal.
By having the right real estate lawyer and realtor by your side, you have already conquered half the battle. While it may seem daunting to a homebuyer, these are issues we deal with on a daily basis and can handle like clockwork.
Don’t go it alone. Hire an experienced real estate attorney to protect your rights.
https://jaspa1.wpengine.com/wp-content/uploads/2018/07/logo_final_dark1.png00Jacqueline Salcineshttps://jaspa1.wpengine.com/wp-content/uploads/2018/07/logo_final_dark1.pngJacqueline Salcines2013-03-01 14:46:112022-12-20 13:58:40WHAT YOU SHOULD KNOW BEFORE BUYING A HOUSE
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-borrowers
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.
https://jaspa1.wpengine.com/wp-content/uploads/2018/07/logo_final_dark1.png00Jacqueline Salcineshttps://jaspa1.wpengine.com/wp-content/uploads/2018/07/logo_final_dark1.pngJacqueline Salcines2013-02-27 22:05:122022-12-20 13:59:37HOMEOWNERS HAVE EQUITY AGAIN
