2122 S. El Camino Real, Suite 201
Oceanside, CA 92054
Direct: (760) 754-2121
Fax: (760) 754-1831
Foreclosure Prevention Seminar
January 18, 2011
By Michael Gaddis, Esq.
Syllabus of Discussion Topics
1. Options Available for Distressed Homeowners
2. How Does the Foreclosure Process Work?
3. What is a Short Refinance?
4. What is a Loan Modification? What is the Loan Modification Process?
5. Entities that Assist with Loan Modifications?
6. What is HAMP & MHA Plan?
7. Do All Lenders and Investors Participate in HAMP?
8. Hardships and Imminent Default
9. Principal Reductions: Fact and Fantasy
10. What is Net Present Value?
11. Serviced Loans v. Portfolio Loans
12. How is Credit Affected by a Loan Modification/Short Sale?
13. Forensic Analysis of Loan Documents
14. Litigation: Does it Work?
15. Recourse Loans v. Non-Recourse Loans
16. 1099 Tax Liability for Debt Forgiveness
17. Mortgage Debt Relief Act of 2007
18. What is HAFA?
19. Deed in Lieu of Foreclosure
20. Does Filing a Bankruptcy Help Save Your House?
21. Beware of Foreclosure Rescue Scams
On October 1, 2011 the Federal Housing Administration (FHA) loan limits changed for the remainder of the 2011 year. The implemented change lowered the FHA loan threshold in San Diego County from $697,500 to $546,250. In Riverside County the drop was from $500,000 to $417,000 and in Orange County the drop was from $729,750 to $625,500. If the value of your home is below the new FHA loan limit the drop will probably not have an impact on the value of your home. However, if the value of your home is above the new FHA loan limit the pool of potential buyers for homes like yours has been drastically reduced. In the real estate world, as in every market, housing prices are dictated by what a buyer is willing AND ABLE to pay. Since most real estate transactions involve a loan of some sort, the lowering of the FHA loan limits seriously hurts the pool of potential buyers. Obviously, if there are fewer buyers and if the supply of housing increases as much as is projected by foreclosure analysts prices will drop accordingly. The law of Supply and Demand is in full effect. Organizations such as the California Association of Realtors and the National Association of Mortgage Brokers continue to lobby to have the limits raised again. In the meantime, if the value of your house is currently affect by the FHA loan limit changes; expect some fluctuation in the value of your home in the near future.
The number of notices of default (“NOD”) filings rose by 33% in the month of August. In California, NODs are the beginning stages of the foreclosure Process. Once a NOD is filed the lender has to wait 90 days until it can file a notice of trustee sale (“NOT”). Once a NOT is filed the sale date can take place no sooner that 21 days from the date of filing of the NOT. It is important to note that while a NOD filing is very serious, there may still be time to resolve the housing issue through a loan modification, short sale, reinstating the loan by bringing the loan current or a deed in lieu of foreclosure.
Jenny Winford July 23rd, 2017
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