We recently were given a loan modification.  However, due to family medical circumstances we can not afford the payment.  We are now doing a short sale.  We have never been late on our payments; we have one late payment due to the loan modification.  The short sale will be done without any late payments.

How will this show on the credit report? Will we have to wait 2 yrs before we can purchase a new home?

Tammy (more…)

Blessed [are] those servants, whom the lord when he cometh shall find watching: verily I say unto you, that he shall gird himself, and make them to sit down to meat, and will come forth and serve them.

And if he shall come in the second watch, or come in the third watch, and find [them] so, blessed are those servants.

And this know, that if the goodman of the house had known what hour the thief would come, he would have watched, and not have suffered his house to be broken through.

Be ye therefore ready also: for the Son of man cometh at an hour when ye think not.

Then Peter said unto him, Lord, speakest thou this parable unto us, or even to all?

And the Lord said, Who then is that faithful and wise steward, whom [his] lord shall make ruler over his household, to give [them their] portion of meat in due season?

Blessed [is] that servant, whom his lord when he cometh shall find so doing.

Of a truth I say unto you, that he will make him ruler over all that he hath.

But and if that servant say in his heart, My lord delayeth his coming; and shall begin to beat the menservants and maidens, and to eat and drink, and to be drunken;

The lord of that servant will come in a day when he looketh not for [him], and at an hour when he is not aware, and will cut him in sunder, and will appoint him his portion with the unbelievers.

And that servant, which knew his lord’s will, and prepared not [himself], neither did according to his will, shall be beaten with many [stripes].

But he that knew not, and did commit things worthy of stripes, shall be beaten with few [stripes]. For unto whomsoever much is given, of him shall be much required: and to whom men have committed much, of him they will ask the more.

Luke 12:37-48

The Oregon Department of Consumer and Business Services announced that it has revoked the registration of a Gresham collection agency for receiving funds from debtors then failing to forward the proceeds to its customers.

The state also issued two cease-and-desist orders against All Debt Recovery LLC, and levied fines against the company and its former owners, Roger E. Eisal and Vickie J. Peterson.

Among other sanctions, the orders permanently bar Peterson and Eisal from owning or managing a collection agency in Oregon.

All Debt operated a collection agency in Gresham from 2005 to 2007. The department, through its Division of Finance and Corporate Securities, began investigating All Debt after receiving complaints filed on behalf of several Oregon businesses alleging that All Debt collected funds from debtors, then failed to forward the proceeds to its customers, and failed to report the status of accounts placed for collection.

Source – Oregon Department of Consumer & Business Services

NCLC Reports “Debt Collection and Repossessions Edition” (Vol 26, June 2008) notes: “there is often a fine line between exemption planning (converting nonexempt assets into exempt assets or transferring assets to others) and fraudulent transfers”.  The article provides the following information with regards to Property Seizures: (more…)

You have already helped me in the past with a student loan problem. Your response helped greatly and it improved my credit, so I thank you for that. But unfortunately I’m faced with another dilema.

I purchased a home last year with my soon to be wife. I payed 230k for the house. Well the market dropped very rapidly and me and fiance broke up. The house is now only worth around 100k. I am renting it out at the moment but I can barely afford the payment, plus all of my other credit cards. The credit cards would be no problem to continue making payments but the mortgage payment is killing me. I just wanted to know your opinion. Basically, even when the market turns, I could have saved more money just investing less money than I’m covering on the mortgage in a high interest money market account or CD. My question is, should I consider letting the house go into foreclosure, or should I just stick it out. I really care about my credit and would like to know what you think.

Jon (more…)

The Undisputed Heavyweight Champion of the Credit Repair World!

44 Proven Deletions in Round One

Hello Paul,

I have a house, which is valued at about $380,000 at the moment but I am caught in the upside position like most people owing the bank $475,000 in mortgage (single mortgage.) Two years ago my house was appraised for $600.000 to say the least. Faced with an ARM rate that is scheduled to reset higher by the end of this year, I took the initiative to contact the bank explaining my situation and that if they don’t modify my loan I will not be able to keep making my payment with a higher rate and with no option for refinancing my home since I owe more than the house is worth.

To make the story short they declined my letter but amazingly after the housing bill of 2008 was passed. I got an offer to modify my loan. The offer seems good to me had this housing bill not been out yet. The offer had lowered my monthly PMT and my rate to 3% (40 years amortization) for the first year while increasing further every year thereafter till the fifth year where my rate will stay fixed at 5.9% till the maturity date of my old contract.

I have to accept their offer within a week and need to pay them some loan modification fees of about $750. My loan principle will increase by almost $4000 for some fees and interest that they mentioned.

Now I am in a dilemma of accepting this offer, which most likely will not affect my credit history or forgo the offer for a better government backed FHA loan at 90% of my house value if the bank agrees to it!!! I believe the last solution may involve a negative credit history statement such as settled for less than full. What would you do if you were in my place?

Thanks a lot

Al (more…)

IndyMac Federal Bank, FSB (“Indymac Federal”) will implement a new program to systematically modify troubled mortgages. The program is designed to achieve affordable and sustainable mortgage payments for borrowers and increase the value of distressed mortgages by rehabilitating them into performing loans. This in turn will maximize value for the FDIC, as well as improve returns to the creditors of the former IndyMac Bank and to investors in those mortgages. The new program will help IndyMac Federal improve its mortgage portfolio and servicing by modifying troubled mortgages, where appropriate, into performing mortgages.

Below are some questions and answers regarding the program: (more…)

Hello Paul,

I have been trying to sell my home taking a huge loss of coming out even…meaning the $250K i downed is gone with me not owing anything to the 2 lenders or them to me.  However, no one is buying my home even at this crazy low price for me to get out without owing the banks.  now i feel like i have to resort to foreclosure/bankruptcy measures if i have to lower it again?
 
I am sorry i have to ask lots of questions.

My question is more specific to virginia’s law on bankruptcy and foreclosure.

1) should i file for bankruptcy first or go through with foreclosure first to have it be included in ch.7?

2) i have a 1st trust and 2nd trust on my home. I hope to include this into my chapter 7.  Would both trusts be able to be included or would the 2nd lender be able to sue me to pay them back?

3) Will foreclosure be reported on my credit along with bankruptcy?  is there a way i can avoid it and just have the chapter 7 only reported?

4)  will I still have to wait the 5 yrs to buy the home even though the foreclosure is included in the chapter 7?

thank you so much for any advise you can offer.

LV (more…)

I recently received a copy of the Lis Pendens filed against me in Florida. Along with the Lis Pendens was a request to the court for a new Promissary Note, stating that the original had been lost.  I did not find a copy of an executed Note in my closing package. 

Can I dispute the loan altogether if the Lender does not produce the original or certified copy? Would this be a claim against the Title Company that closed the loan? 

Thanks,
Deb (more…)