A RECENT NEVADA SUPREME COURT DECISION THAT ALLOWS HOMEOWNERS ASSOCIATIONS TO TRUMP MORTGAGE LENDERS IN FORECLOSING ON HOMES SENT A SHOCK WAVE THROUGH THE MORTGAGE INUDSTRY LAST WEEK.  THE RULING IN ESSENCE ALLOWS HOMEOWNERS ASSOCIATIONS TO SELL A PROPERTY TO THE HIGHEST BIDDER, FOR EXAMPLE $3,000, $4,000 OR $5,000 AND EXTINGUISH THE DEBT A MORTGAGE LIEN HOLDER HAS, WHICH IN THE NEVADA CASE WAS $885,000.00

THE NEVADA CASE CENTERED AROUND A $6,000 DEBT OWED TO THE HOA.  THE BANK WAS OWED $885,000.00 HOWEVER, AFTER SELLING AT AUCTION FOR $6,000.00, THE COURT RULED THAT THE SUPER PRIORITY LIENS HELD BY HOA’S FOR UNPAID ASSESSMENTS TAKE PRECEDENCE OVER FIRST TRUST DEEDS HELD BY BANKS OR OTHER MORTGAGE LENDERS.  THE NEVADA COURT FURTHER HELD THAT HOA’S DO NOT NEED TO GO THROUGH THE COURT SYSTEM TO SEIZE THE PROPERTY.   THE RULING ALLOWS HOA’S TO LEGALLY FORECLOSE ON THE PROPERTY BY SELLING THE PROPERTY AND EXTINGUISHING THE DEBT.

WHILE THE LAW COMPELS HOMEOWNERS TO PAY THEIR DUES AND ASSESSMENTS TIMELY TO THE HOA, THIS LEAVES THE BANK’S HOLDING MORTGAGES HIGH AND DRY TO FORECLOSE THE PROPERTY TO SATISFY THE DEBT. LENDERS VIEW THE DECISION AS A RECIPE FOR DISASTER, SINCE IT WILL SET THE PRECEDENT FOR OTHER STATES TO DO SAME.

IF FLORIDA WERE TO FOLLOW SUIT,  HOMEOWNER ASSOCIATIONS THAT HAVE DELINQUENT MAINTENANCE AND ASSESSMENTS AND NEEDED TO COLLECT, COULD SIMPLY SELL THE PROPERTY TO SATISFY THE LIEN AMOUNTS DUE THEM, AND MORTGAGE DEEDS OF TRUST WOULD BE EXTINGUISHED.

THE  NEW LAW GIVES THIRD-PARTY INVESTORS A HUGE WINDFALL SINCE PURCHASING PROPERITES FROM AN HOA WITH MORTGAGES, SOMETIMES TWO MORTGAGES, IS A SHORT TERM WIN.  ONCE THE MORTGAGE WAS AUCTIONED IN FORECLOSURE, THAT LIEN BEING CONSIDERED SUPERIOR IN FLORIDA COURTS, TRUMPED THE CERTIFICATE OF TITLE TO THE INVESTOR, CAUSING THEM TO LOSE THEIR INVESTMENT.

IT REMAINS TO BE SEEN THE LONG TERM EFFECTS THIS WILL HAVE FOR NEVADA HOA LIENS AND FORECLOSURE LAW AND WHETHER FLORIDA AND OTHER STATES WILL FOLLOW SUIT.

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If your first mortgage was modified or in the process of being modified, and you have  a second mortgage on the property, either HELOC or other type of loan, the Obama Administration has created numerous programs to assist with eliminating the debt on these second mortgages.  Often, a homeowner is upside down and the options are limited, however under the Second Lien Modification Program relief exists.

• Second Lien Modification Program (2MP)  –  This allows eligible homeowners who are upside down on their mortgage, and owe more on the property then the home is worth, to reduce the mortgage debt to the 2nd mortgage under the HAMP program.

• Treasury/FHA Second Lien Program –  This program is for homeowners with second mortgages whose first mortgage servicers agrees to participate in the FHA Short Refinance- to reduce or eliminate the second mortgage all together.  The total amount of mortgage debts after the refinance can not exceed 115% of the homes current value.

• PRA or Principal Reduction Program – Another program designed to help homeowners whose homes are worth less then they owe, to reduce the balance owed.

• Home Affordable Unemployment Program (UP)   – This program was designed for homeowners that have lost their jobs and became unemployed and unable to make mortgage payments.  UP provides temporary reduction or suspension of mortgage payments, at least 12 months, while the homeowner is seeking reemployment.

• HAFA – Lastly, the program for homeowners who do not wish or simply can not keep their homes. This is the short sale under the Making Home Affordable that can offer relocation assistance to homeowners and extinguish the debt on a first and/or second mortgage.

At the Law Offices of Jacqueline Salcines, PA, we can help you navigate through the maze of homeownership.  Knowing what you qualify for, the type of mortgage you have, the servicer participation in the program and the fair market value of your home, is the first step.

The first consultation is always free of charge and can determine, after careful examination of the above details, provide options available to you.   Call today.

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Bidding on a foreclosure auction?   Buying a property through a homeowner association or condominium association auction?

A preliminary title report run by an attorney, which is an examination of title and liens, can spot trouble ahead for a  foreclosure auction bidder, to help make an educated and informed decision as to the future investment potential of the property.

Nobody likes to assume they are getting a bargain, to only find out the property has a second mortgage, association lien, or other liens that attach to the property and are not eliminated at the auction.  A successful bidder must therefore do their homework prior to bidding.

A preliminary title report involves researching title, public records, property history, tax deeds, wills, trust, divorce decrees, bankruptcy filings and tax records to provide accurate and sound advice PRIOR to bidding on the property.

This title commitment or “commitment of title” provides peace of mind for the bidder before proceeding with the sale.

Call us today to see how we can help you obtain peace of mind.  The first consult is always free of charge.

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MORE AND MORE LATELY, I MEET WITH CLIENTS THAT HAVE HAD AN ATTORNEY HANDLING THEIR FORECLOUSRE CASE, HAVE PAID THEM A MONTHLY FEE FOR SUCH SERVICES, THE ATTORNEY NEVER REVIEWS THE FOUR CORNERS OF THEIR FORECLOSURE COMPLAINT, TRIAL COMES ALONG.  NO FIGHT IS MADE. RATHER, THEY SCARE THE CLIENT INTO A CONSENT JUDGMENT ADVISING THEM THERE IS NO OTHER SOLUTION AND THEN THE HOUSE GOES INTO FORECLOSURE SALE AUCTION AND SELLS.  OR WORSE, AFTER ALL THOSE FEES, THE CLIENT IS NOW TOLD THE ONLY REMEDY IS A BANKRUPTCY.  WE CALL THIS FORECLOSURE DEFENSE WITHOUT A PURPOSE.

AT THE LAW OFFICES OF JACQUELINE A. SALCINES, EVERY FORECLOSURE DEFENSE CONSULTATION STARTS WITH THE QUESTION:  WHAT DO YOU WANT TO DO WITH YOUR PROPERTY? AND DEPENDING ON THE ANSWER, ADVICE IS PROVIDED ON HOW TO MAKE THE CLIENTS WISHES A REALITY.

THAT SAID, MANY CLIENTS MAY WANT A LOAN MODIFICATION HOWEVER, MAY NOT HAVE THE NECESSARY INCOME IN PLACE TO SUSTAIN ONE UNDER THE MAKING HOMES AFFORDABLE.  OTHERS MAY HAVE TOO MUCH INCOME AND NOT QUALIFY UNDER HAMP.

DURING THE INITIAL CONSULT, IF THE INTENTION IS TO SAVE THE HOME, WE MUST QUALIFY THE CLIENT RUN THE NUMBERS TO MAKE SURE THE FINANCIALS QUALIFY.  TO ASSIST US IN THIS, WE HAVE A STATE OF THE ART COMPUTER PROGRAM THAT RUNS ALL THE FINANCIALS AND DETERMINES WHETHER HAMP IS POSSIBLE, AND WHAT THE NEW PAYMENT IF HAMP IS GIVEN, WOULD BE.

IF A SHORT SALE IS THE PREFERRED ROUTE, WE QUALIFY THE BORROWER FOR THE SHORT SALE. WE ALSO WORK WITH REALTORS TO LIST THE PROPERTIES AND OBTAIN INVESTORS TO PURCHASE.

ALL SHORT SALES ARE NEGOTIATED IN HOUSE WITH A FULL SERVICE SHORT SALE TEAM OF KNOWLEDGABLE AND TRAINED PARALEGALS AND LEGAL ASSISTANTS TO GET THE FILES APPROVED IN RECORD TIME.

AND WE NEVER CHARGE MONTHY THE WAY MOST ATTORNEYS DO.  WE ARE HERE TO HELP THE BORROWER AND CONSUMER WITH THEIR FINANCAL  NEEDS. WE BELIEVE THE BEST WAY TO DO SO IS TO MAKE SURE THE BORROWER HAS ENOUGH MONEY TO LIVE AND GET BY.

AS AN ACCOUNTANT AND ATTORNEY, I AM ALSO AVAILABLE TO PROVIDE TAX ADVICE INCLUDING 1099-C INFORMATOIN THAT MAY AFFECT BORROWERS WHOSE LOANS WERE FORGIVEN, SINCE AS OF THE WRITING OF THIS ARTICLE, THE MORTGAGE DEBT RELIEF ACT HAS NOT BEEN EXTENDED TO 2014, MAKING FORGIVEN OR CANCELLED DEBT TAXABLE TO THE IRS.

CALL US TODAY FOR A FREE CONSULTATION TO SEE HOW WE CAN GO TO WORK FOR Y OU

THE FIRST CONSULT IS ALWAYS FREE

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According to data released from  HOPE NOW, approximately 421,000 homeowners used non-foreclosure solutions from mortgage servicers in the second quarter of 2014. Non-foreclosure solutions take the form of loan modifications, short sales, deed in lieu of foreclosures and other loss mitigation options. The number of non-foreclosure solutions in 2014 Q2 was almost quadruple the number of foreclosure sales for the same period.

The most popular loan foreclosure solution is of court the loan modification, which approximately 116,000 borrowers utilized.  Short sales accounted for 33,000 and deeds in lieu of foreclosure  7,561.

Banks are more than eager to work with borrowers to workout mortgage defaults and get the borrowers back on track.  A loan modification under HAMP, the Making Homes Affordable Program, typically take between 90 to 105 days to process and obtain a trial period.  The most important factor of submitting a HAMP request is to make sure the numbers qualify the borrower for a modification.

Submitting packages blindly, without qualifying the borrower is a huge injustice to the homeowner that wants to keep their home.  There are often the modifications that take 6 to 9 months to process, since the packages may be missing financial information or the ratios under HAMP were not correct.

Another important consideration is knowing whether your loan is Fannie Mae or Freddie Mac backed, which will determine whether you are eligible for principal reduction.

Short sales on the other hand, specially under HAFA, also have strict guidelines that if the borrower is not qualified before submitting, could turn into a 9 to 12 month order with no end in sight.  Lenders quickly deny short sales where financials are missing or contracts have incorrect information.  The scope of knowledge by the preparer and negotiator is so important to determining the final decision for the lender, on whether to approve or deny a loss mitigation request.

At the Law Offices of Jacqueline A. Salcines, P.A. we never submit loan modification or short sale requests blindly. Rather, our firm has a HAMP designed program that allows us to run your numbers beforehand and advise what you qualify for.

While the lender always has the final word, you will know prior to submitting whether a mortgage modification payment is affordable.

Call us today to set up a free consult to see what non-foreclosure solution is right for you.

TRUST  |  COMMITMENT  |  RESULTS