REAL Talk with ROBERT ALDANA

The Dangers & What You Should Know About Loan Mods & Short Sales

To do a loan mod or a short sale on your home; that is the question. But beware as there are many consequences for either if you do not understand how things work and make the wrong move, which could cost you tens of thousands of dollars and a lot of heartache. In this lengthy article, I will dissect each one and share with you the pros and cons of either doing a loan modification or a short sale.

Bay Area home prices may drop, real estate firm warns

The San Jose Mercury News just came out with an article (click here to read it) stating the following; Bay Area Home Prices May Drop, Again....

Although I would not exactly write whatever Zillow says in stone (some of their stuff is all over the map including values), the firm has spoken and stated the obvious of what I have been saying for several months now, that we should expect another price drop in the Bay Area this year. I personally think it could extend further than that and maybe into the next 2-3 years. Consider the following:

15 banks fail in the first month of 2010. What does that mean to you?

It was reported by CNN Money that this Friday, January 29th, 6 banks failed. That brings it to a whopping total of 15 the amount of banks that have failed in the first month of 2010! Could it be poor decision making by these banks? Hmmm....

Well, try and look at how this can affect you as a consumer and one way it will definitely affect you is the fact that we are not out of the woods yet in this financial crisis, but it is not all bad news. Get your finances in order and get ready to take advantage of some amazing real estate deals this year and maybe in the next couple of years as opportunity is knocking.

While this is astonishing news, it really is not news but more of a formality. Until banks get their act together and start making logical decisions, we will see more of this type of news in 2010.

So lick your chops everyone, blunders on one end equal opportunities on the other end.

Click here to read the story as reported on CNN Money.

Can you believe this? Loan Mod with a rate of 1.7% payment. Believe it!

We just got an approval on a loan modification with Ocwen for a client that already had a good interest rate of 4.75% down to 2%. But it gets better! The lender is only charging him with this interest rate on 85% of his loan which makes it an effective interest rate of 1.7%!

Their payment on a $495,373 loan amount is only $1,282.89. Believe it!

Need a loan modification? Don't pay, go to www.makinghomeaffordable.com and download their application and send it to your lender via certified mail. Contact me if you need any help with it. And, I will not charge you one penny before or after.

Just trying to make a difference in the world one family at a time!

Another loan modification @ 2.625% from 6.25%! Sign of the times?

We just completed another loan modification from Wells Fargo at a rate of 2.625% which is significantly lower than the 6.25% that they were paying in interest rate. Their payment was reduced from a monthly payment of $3,083 down to $1,295 on a $592,000 mortgage. Believe it!

What makes this even more interesting and newsworthy is that this is the 3rd or 4th loan modification from Wells Fargo at that exact rate over the past 10-15 days. Is this a sign of the times that maybe things are getting better at Wells Fargo? I hope so because they have a long way to go in restoring my faith in their bank and lending and loan modification practices.

Remember, do NOT pay anyone for a loan modification! Do it yourself at www.makinghomeaffordable.gov or call us and we will help you get the forms filled out and sent to your lender at no cost.

Turning 'Upside Down Mortgages' Right Side Up

As Featured on AOL this week - Another excellent article by one of the best real estate writers in the country, Broderick Perkins. Mr. Perkins talks about homeowners who are upside on their mortgages and are trying to get a loan modification from their lenders, with a few words and comments from yours truly, Robert Aldana. Click here to read it.

Non-Current Mortgages Hit Record High 13.2%

A new report by DSNews.com has come out stating that 1 in every 7.5 homeowners with a mortgage is now in default or in foreclosure in the United States. That is a record 13.2%. These numbers are staggering and a clear indication that we are not out of the woods yet.

What does this mean to you?

Loan Resets Projected to Cause Mortgage Crisis in 2010

As I have been saying on my radio show for the past almost year, we are in for another mortgage crisis as the problem now hits the sector that is not sub-prime. Read this excellent article on the mortgage crisis that is looming for 2010.

People seem to think that this is just an isolated crisis that is the result of bad lending practices to consumers who should not have been granted the loans that they were given but it is not. Although it very well could be the root of the problem, the crisis caused so much damage in home values that everyone has been affected and those with sterling credit, provable income and assets are about to be hit with mortgage resets on properties that are worth a lot less than they owe. Many will choose to walk away while many others will attempt a loan modification and we all know where that is headed.

The fact is, we are in this for a few more years to come especially given the fact that many lenders are giving 2-5 year loan modifications on homes that are worth half of what they owe. So what will happen, will the homes be worth double in 2-5 years when their loan modification expires? Uuuuuuh, no. We will be right back to where we are today. This is just common sense. Who in their right mind really thinks that their home will double in 2-5 years? Seems to me that lenders are just wanting to collect "rent" for the next 2-5 years while they decide what to do.

FHA allows purchase after short sale - with restrictions of course!

So many of you have been suffering to pay your mortgage for a home that you owe $500,000 and it is worth $250,000, huh? Think that you are stuck with that home at that price, huh? Think again!

So the MHA Loan Mod Program is a DUD huh? According to the Treasury Department....

The Treasury Department recently conceded that the Making Home Affordable Program is a fat big DUD. Click here to read a recent article by the New York Times. Maybe right now it is, but time will tell what type of effect this program really has for troubled homeowners.

What a shame this program along with its "co-conspirators" has been so far.

Shame on Government for not taking tough steps to ensure that the program actually works and holding lenders accountable as they receive billions of our dollars.

Shame on lenders for taking everyone for a multi-billion dollar ride and playing games with homeowners and families desperately in need of assistance.

Shame on us for falling for all the lies that we keep getting and thinking that "this time things will really work". Seriously. Can we be any more gullible? How is it that we are allowing Government to throw our hard earned money at these clowns called the lending industry? What are we thinking?

I believe that a major investigation is needed and it would not shock me to see some of these people running around in pinstripe suits wearing different type of pinstripes.

Updated Loan Modification Application & website could be the "Real Deal"

For those of you who are in need of a loan modification and have been looking around for some assistance, the new application and information at www.makinghomeaffordable.com could be the real deal!

Modify Your Own Home at NO COST - We'll Show You How

Dear Friends,

As you know, I have been in the real estate industry for over 23 years as a licensed real estate agent. Throughout the years I thought that I had seen it all. I have sold homes, assisted families with their mortgages and for the past almost 2 years I was also assisting families in modifying their home mortgages.

Does it make sense to modify your loan or just sell your home? You may be surprised....

In the past couple of years I have studied loan modifications and know how they work. We have had so many successful and some unsuccessful loan modifications for clients that I now have stats and figures on what lenders do, don't do, who qualifies and who does NOT qualify. The loan modification business is a tough one. A thankless job filled with so much anxiety, fear and panic. People do not know who to trust, what to do or what to believe. We have had a lot of success handling loan modifications but it has not been fun or easy.

Recently, I made a decision to no longer offer services of a loan modification company because over the last 2 years I have been through hell and back working with lenders who have made it so difficult for everyone who has tried to get a loan modification. It literally has been like pulling teeth with no local anesthesia. We have been challenged at every step of the way, on every turn and I have spent hours per day every day just protecting my integrity every time a news story came out about a loan modification company closing down or a client who came in telling me that the lender told them that we had never called them or did anything even after we have had our communication log and documentation to prove otherwise. At some point enough is enough, this is a fight that can't be won when you have lenders running to politicians whom they support and contribute to leading to changes in legislation.

The TRUTH About Foreclosures - Why Families are being locked out of this opportunity

Today, foreclosures are on the rise and more people will lose their home this year and for a few more years to come if lenders keep giving band-aid loan modifications of 1-2 years.

This brings up another issue; Homes that are being foreclosed on are selling at tremendous prices which means a lot of opportunity is out there, yet it is not reaching those who should be able to take advantage of these opportunities. Why? Because they are being sold to investors who are coming in and paying cash or buying with large down-payments and turning these properties into rentals which eventually drives property values down. What's even sadder is all the families who want to be homeowners but can't because they can't compete with investors who have big pockets. But these big pockets are not getting lenders more dollars, they are just closing quicker and getting the loans off the lender's books faster. It is common knowledge in the industry that investors can buy a property for much less than a family who wants to buy a property as a primary residence because they have cash or large downpayments.

Think that lenders care about you? Think again. There has to be a solution for this by putting a limit on how many REO properties can be sold to investors. This would mean that lenders still get true value for their properties, only these properties are now going to proud homeowners who will care for and maintain their home while realizing the American Dream and maintaining property values which helps everyone in the long run.

OK, could it get any better? How about THIS one?!

Yesterday we just signed off on a client who came in about 2 months ago struggling to make their payment of $2,799 plus taxes and insurance. Their rate was 7.5%. So guess what we did?!

Business Week Makes Their Real Estate Predictions

A somewhat interesting story and BOLD predictions by Business Week Magazine. Some good points, but overall I have to differ with this article. I believe, and the real life stats are telling us that we may be close to the bottom in many markets and already AT the bottom in others. I am not kidding and I am not being a real estate agent saying, "duh, it's a great time to buy a house".

Oh, My.... How about this one?

OK, here is one for the ages. Client has a four-plex with a loan of $599,181 and a monthly payment of $5,186. They are receiving $4,788 per month in rents so they have a negative of $398 which isn't bad, except with these tough times every dollar is tight.

We just negotiated a principle reduction of $119,422 and a new payment of $2,050. So with the monthly rent they receive of $4,788 per month, they are now making $2,738 by keeping their property. This is an investment property with no late payments. Almost to good to believe, huh? Well, believe it!

When members of the police department visit us to help them with their modifications and members of the real estate industry do the same and send us their clients, that HAS to say something.

I love my job! Not always, because sometimes it can be tough, but at the end of the day I LOVE my job!

New foreclosure rules to start Monday

Here is an article worth reading that addresses the efforts being made by Government to curb the foreclosure mess we are in, click here to read it.

It all sounds good, but will this one work? I applaud the Government for wanting to do something, because I know that they want this to end, but doesn't it seem like every month a new Government program is coming out to help with this crisis that starts with a lot of excitement and anticipation only to lead to another failure with banks really not participating?

Time to play hardball. Plain and simple, lenders have to be more accountable. They need to stop giving everyone lip service and start really being part of the solution. Right now they continue to be part of the problem and this has to stop.

Come Join Me for Lunch & Let's Talk About Short Sales & Mods

This coming week, on Wednesday, June 17th, 11am-1pm I will be speaking for one of my favorite organizations, The Women's Council of REALTORS in San Jose at the Santa Clara County Association of REALTORS' Training Room on the topics of Short Sales and Loan Modifications. Should be a good one! If you are interested in attending, please contact the following individuals:

I LOVE Wachovia!

If anyone out there knows anything about handling short sales and loan modifications, it is Wachovia. They could/should teach a class on how to handle them efficiently, smoothly and professionally. You get the feeling that you are working with a real person making logical decisions and not some kid who takes pleasure in playing video games that focus on hurting other people. If you have done a short sale or loan modification, you would understand what I mean!

Hats off to you Wachovia for raising the bar. Here is to hoping the rest of the industry follows you closely!