Posts Tagged ‘Banks’

How Do I Get Foreclosure Advice In California That is Helpful?

January 25th, 2010

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Foreclosures, needless to say, are not pleasant. There are countless foreclosures taking place in the US as the economy continues to implode. In California, the situation is particularly bad, with foreclosing continuing at an unprecedented rate.

This situation can make preventing foreclosure very difficult. Finding good advice in these difficult times is essential. Knowing where to find it is another matter. Everyone attempting to stop foreclosure needs to find reliable advice that they can trust, and knowing where to turn can mean the difference between paying off your mortgage and loosing your home. There are many different possible sources, ranging from law firms, which will help you navigate the red tape of foreclosures, to the banks themselves.

Natalia Osorio Editor of the “Loan Modification Foreclosure” website — — pointed out;

“…Legal advice can be helpful, but it is sometimes difficult to find a good lawyer. First and foremost, shop around when looking for legal advice. There are many lawyers who specialize in foreclosure laws that can offer good advice and help you prevent the bank from foreclosing. Be sure to read reviews of any legal service that you plan on using. There are many scams, so if you cannot find an objective review of a business, it is better to move on and look for someone else…”

Counterintuitive though it may be, the banks can often be a source of advice, too. Although the banks are the institutions that threaten foreclosures in the first place, they do not benefit as much as one might expect. Banks sometimes loose money due to foreclosures. The money they gain from selling a repossessed house is often less than they might make from simply receiving the mortgage. Sometimes, the banks will work with you to refinance your mortgage, and convert it to a plan that will enable you to make payments on time, saving your house and saving the bank’s money in the process.

“…The best solution is to work with both legal advice and seek advice from your bank. If you have advice about dealing with the legal aspects, and can get advice from your bank about how to refinance, then you stand a much better chance of preventing foreclosure. Stopping the bank from foreclosing is essential, so do not waste time in getting advice…” N. Osorio added.

Further information about how to get professional assistance with a mortgage loan modification by

Hector Milla runs his corporate website at where you can see all his articles and press releases.

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Dealing with Foreclosure

January 23rd, 2010

With the economy in state that it is currently in, many people are dealing with the threat of foreclosure. From personal experience I can tell you that nothing is more gut-wrenching and nausea inducing then the possibility of losing your home. Their is is no magic bullet solution to avoiding foreclosure; just your rights within the law, and the actions that you take as a homeowner to deal with, and prevent the process.

Step 1: Communicate.

The bank does not want your house; they want your money. A house might be a valuable asset, but to bank, it is a lose of liquidity and a hassle. This means that if you communicate with your lender as soon as you realize you might not be able to make a payment, they will be willing to work something out with you. Though they are perfectly willing to begin the process and take your home, banks would rather work out some sort of plan that will you in your home, and your cash in their pocket.

Step 2: Educate Yourself.

Though many foreclosure laws are universal on a national level, each state has specific laws governing the exact procedures surrounding the process. The only way in which you are helpless is if you do nothing. Contact local government counselors who will offer free, effective strategies for dealing with foreclosure. They will also inform you of your legally mandated rights, and what the bank can and cannot do to you during the foreclosure process.

Step 3: Be Proactive.

Stop feeling sorry for yourself and do something about your situation. Help is available to you if you are willing to step up and seize the situation. Yes, the situation is frightening and rustrating. Yes, you feel helpless, but that is a state of mind that you chose. The government will help you; your bank will work with you, but you have to educate yourself and become active. You are your greatest ally.

If you have questions about the foreclosure process look here for additional specific information.
help here.

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Can A Deed In Lieu Of Foreclosure Be Shown As Foreclosed On A Credit Report?

January 20th, 2010

A deed in lieu of foreclosure is exactly what the name implies. It is a process that occurs in lieu of foreclosure. After the processes have ended, a full foreclosure should not be reflected on an individual’s credit history.

The mortgage account should reflect a deed in lieu, which is better than a full blown foreclosure, but not by much. Anything helps, however, when an individual is attempting to rebuild credit.

Natalia Osorio Editor of the “Loan Modification Foreclosure” website — — pointed out;

“…Choosing a deed in lieu of foreclosure should be done only as a last resort to stop foreclosure. To do this, you voluntarily return the property to the lien holder. This does not save your home, and does not save your credit. However, a deed in lieu of foreclosure does less overall damage to your credit than a foreclosure, albeit by a very small step. This is a last resort for individuals who are for some reason unable to refinance or sell, and who do not qualify for a repayment or mitigation plan…”

Another major benefit to a deed in lieu is that it provides final closure and does not allow for deficiency judgments after foreclosure. After the long, rigorous process of foreclosure and losing the house, weary homeowners are often sued by the mortgage holder for the amount they still owe on the loan after the proceeds from the sheriff’s sale are deducted. Banks are also at liberty to increase the amount due with tens of thousands of dollars in fees. With the current economy, most properties have declined in value and are unlikely to fetch the balance due on the loan when sold at auction.

A deed in lieu stops the foreclosure process immediately. This provides relief for a tired homeowner who has decided it is no longer worth his or her time and effort to fight the bank in an attempt to retain the property. When a person has no option that does not include losing the home, ending the foreclosure process becomes the next priority.

“…Individuals who wish to quickly move on after this failed financial investment can help themselves by opting for a deed in lieu. A long string of late mortgage payments does more damage to a homeowner’s credit. Every month a payment is late it is reported to the credit bureaus. A homeowner can begin establishing credit again quickly after a deed in lieu transaction–without the terrible burden of a foreclosure hanging over their heads…” N. Osorio added.

Further information about how to get professional assistance with a mortgage loan modification by

Hector Milla runs his corporate website at where you can see all his articles and press releases.

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SBA Business Financing, General Advice

January 19th, 2010


Below is some real world advice on SBA business financing in this market.  Specifically, advice on getting your loan closed. 

SBA financing and general banking industry is what it is.  You, nor I, can do anything about that.  What you have to focus on is doing everything in your control to increase your chances of closing your SBA loan.

And it has never been more important to prepare yourself and your loan request for the realities of current small business loan climate.  What this normally means is being totally upfront and dealing with your loans weaknesses head on.  You have to build your argument of why your business is credit worthy – and most specifically dealing with the issues that have or likely will get you declined if you don’t deal with them. 

SBA Financing, Rule #1

Never, leave your issues to chance or ignore them hoping that the underwriters will not notice.  They will notice!  They will discover the issues and you will lose.  Let me give you an example. 

We recently where engaged by a small business in Rhode Island to refinance his existing conventional loan (i.e. a local bank mortgage).  The borrower how is a great guy and an impressive 30 year veteran entrepreneur was facing a ballooning loan.  It was due 10 weeks from the time that he initially contacted us.  Though I was concerned about the timing and knew we couldn’t make any mistakes, I was confident that we could get the loan closed in the required time frame.  In addition, it is not uncommon for the existing bank to extend the loan if you can prove to them that you have a viable new loan on the table. 

The weaknesses of the file where that the business gross sales had declined for the last three years and fell more even more rapidity year to date.  This in itself is a huge issue.  Banks and their underwriters want to know and want you to prove that you have fit “bottom” and that the situation has been turned around. 

However, and this is a big however, the borrower had done a good job on eliminating his fixed costs and diversifying into other businesses.  He was still very much in the black and his cash flow, despite the huge drop in gross sales had only dipped slightly.  So my job and our argument to the underwriters was to highlight this.  I.e. that despite the declining sales the borrower was in a solid position as he was still making great income. 

Despite the well thought out and detail Letter of explanation that we put together the borrower failed to tell us the whole story – that he was served a foreclosure notice a week before he contacted us and that he stopped making payments on the loan, as the existing bank stopped sending him payment coupons. 

Bad move.  We had 45 days into the transition when we finally discover this.  It was a bad situation for us, as we wasted almost 2 months, but he ended up losing his property and app. $600,000 in equity. 

Jeff Rauth is President of Commercial Finance Advisors, Inc. They close SBA and other commercial real estate loans between $400,000 – $5,000,000 nationwide. Reach him at 248 885-8797 or at SBA 7a Loans or SBA Business Loan or SBA Financing

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Re-Mortgaging in Spain in 2010? Five Things to Consider Before You Try

January 14th, 2010

The Barcelona Real Estate market was out of control in 2007. Absolutely everything which was sold made a profit, and the average price per square metre was at 3800 Euros. Fast forward to December 2009, and you can quite easily slash 500 Euros from that price, which although might not seem like much, if you’re buying a one hundred square metre apartment in the city, you’ll already be saving 50,000 Euros. Taking into account the number of brand new properties which are lying unsold as well as those people looking to upgrade or simply those who haven’t been able to afford the constant rise of their mortgage repayments, and it really is a buyers market at the moment, and many people are getting some fantastic deals.


It’s important to note first of all that before you start looking to invest in Barcelona, like many areas in Spain and indeed Europe at the moment, then your financial situation should be absolutely water-tight. Many of the lenders and financial institutions in 2010 are offering a fraction of the services and completing a tiny amount of operations and loans in comparison to years gone by. While it’s true that banks are launching advertising campaigns to attract customers in with never-before seen offers and the lowest interest rates in the history of the Bank of Spain, the requirements to qualify for those rates are equally as un-reachable. Here are five things you need to know.


Firstly if you’re an investor, forget about it. The exceptional interest rates and terms only apply to the habitual living space – i.e. your own home, and banks and building societies are not interested in second homes, investment opportunities or summer chalets.


Another huge shift in the mix which may come to a surprise is the percentage that financial entities expect you to be able to cover in respect to the repayments that the new loan will offer. That sounds more complicated that it is. What it means if that a couple of years ago, lenders would see how much you and a partner earn (or you alone) and then only offer a mortgage if the month repayments did not exceed around 60-65% of that amount. So in plain English if you earn 1000 Euros a month, the mortgage repayments cannot be above 600-650 Euros. In 2010 this figure has dropped to a tiny 40%. Which means for the same property, with a repayment of 600 Euros, you need to be earning 50% more than a couple of years ago.


A third thing to be aware of is the risk seems to have increased. Thinking about it logically, if you’re going to a bank to re-arrange your mortgage it means you’re unhappy with the repayments and want to see if they can offer a better deal. This means that as long as you’re managing to keep up with the current re-payments, then the new deal on offer should be absolutely no problem.


Number four on your list of things to check is the type of interest you’ll be offered. Most financial entities opt for one of two indexes; Irph or Euribor. Without going into too much boring detail, the Euribor is the European interest rate and you will be charged a percentage on top which is the bank’s profit. The IRPH index is a combination of the previous few months Euribor to create an average, supposedly more stable, although this is not the case.


Finally, remember that there is no such thing as a tracker mortgage in Spain, so your rate will be fixed for one year, and each payment will be the same. In one way this is good, as you know the same amount you’ll need to raise at the end of each month for your home loan, but don’t expect the repayments to fall if there’s a drop in the indexes, similar to what happened over 2008 to 2009 in Spain and Europe as a whole.

David Brydon has been living in Barcelona, Spain for 10 years and writes for Barcelona Real Estate Agents Modus Vivendi. Their Barcelona Real Estate Guidelines are a must-read for anyone serious about investing in the property market.

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