Sunday, July 5, 2009

Commercial Loan Modification's Coming

I'm re-posting this from CommercialPropertyRescue.com, since short refinances also are necessary (or becoming necessary) in the commercial lending world. Take a look at this link, and you can see some of the challenges that need to be addressed in the commercial lending world as well.

I re-posted this, because it's a good article. However, it's also important to recognize that the situation represents a great opportunity for those who have the ability to execute. With deals being "stalled", most developers and/or property owners are desperate for help. Take a look at how Commercialpropertyrescue.com may be able to help your stalled or fractured project. They also have a way for you to earn affiliate dollars for referring projects to them as well.

Friday, February 27, 2009

The Mortgage Relief Plan - What We Know So Far

There has been much talk about the provisions of President Obama's Mortgage Relief Plan that is due to take effect March 4th. Because the bill is being enacted in a very expedited manner, many of the details are still unfolding. However, some of the details are beginning to come out. Given the fact that ShortRefiServices is involved with loan modifications, we are very interested in what is transpiring with the Relief Plan. Here are some of the things we think we know (I say that somewhat facetiously, since the plan seems to be still "in process"). I'll start with the good news:

Homebuyer Credit: If you are a first time homebuyer (generally this means not having owned a home in the last 3 years), you are eligible for an $8,000 tax credit (not deduction) if you buy a home. Under the last mortgage relief bill under the previous legislation regarding the tax credit, the tax credit wasn't really a tax credit: it was an interest free loan. I'll vent when I say it's pretty sad when our "leaders" lie to us about the provisions like they did before. The new tax credit is really a tax credit - they are not kidding this time!

Bankruptcy: This does not appear to be part of the provisions that are coming out March 4th, but it appears imminent. Under pending legislation, it appears that bankruptcy courts will be able to impose new mortgage payments for the borrowers, and the lenders will be required to accept these terms from the court. The legislation is not final yet, but it appears that there will be some provisions for this under certain guidelines. You can bet that lenders will fight to overturn or water this down.

Refinance: The government will now allow a borrower to refinance an existing, owner-occupied, FNMA or FHLMC loan when guidelines may not allow for it currently at current market rates. The guidelines are pretty narrow. First of all, the guidelines only allow for FNMA or FHLMC loans. Most of the loans that are problematic are not FNMA or FHLMC: they are owned by private investors. Worse than the aforementioned, the borrower will not get the refinance if the loan to value is more than 105% of the current market value. The 105% includes the cost of obtaining the refinance. For those of you in California, Nevada, Florida, New York, and other areas, you just got precluded from relief under this provision. Don't forget to thank your politicians for this at the next election!

Modifications: This is still a little murky, but here is what we know so far. Under the Homeowner Stability Initiative, borrowers may be able to obtain modification from their lender/servicer if they are still living in the home (no investor or rental properties). The lenders will be able to lower the rate and/or the principal balance, so that the borrowers monthly housing obligation will be no more than 38% of their gross monthly income. Furthermore, the government will step in to subsidize the payment to lower it to 31% of the gross monthly obligation for 5 years. The cost of this scenario has to be less expensive than the cost of a foreclosure (probably not much of a stretch on that one). The rate the borrower can obtain can be no lower than 2% (this may necessitate a large principal write down for some lenders when the home is extremely "under water".

These are the highlights that we have been able to determine so far. Although I am somebody who works in the modification industry (I'm sure I'm perceived as biased), I think the plan is extremely flawed. The politicians appear to still be "fiddling" while "homes burn". FNMA or FHLMC are not the target for relief, but, since the government in effect owns them, they are the easiest to attack. In effect, the politicians are saying: "look we are dealing with the problem".

The problem is much greater than FNMA and FHLMC. Many of the problem loans are in very expensive areas like California and New York. For the most part, the government has done nothing to help solve the problems here since FNMA or FHLMC loans were not the loans used to buy homes in the "high cost areas". Furthermore, in many of those areas, 105% LTV's are not even close. Sub-prime and "Alt A" loans are not really addressed, since the government doesn't own these loans. The problem still lies with the aforementioned types of loans, and the government isn't (and probably can't unless through bankruptcy - it could get real ugly) able to adress these loans.

While I know many are hoping for relief from the Mortgage Relief Plan, I don't think the government truly addressed the problem: they just continued to "shuffle the chairs while the boat sinks".

Refinancing Solutions for your Home

Short Refi Services is a service company in every sense of the word. Homeownership has long been the American Dream. However, because of a number of factors, homeownership has become a nightmare. We help struggling homeowners preserve their home. Our services include help in loan modifications, short refinances, forebearances, and other options that may allow you to avoid foreclosure.

Thursday, February 12, 2009

How I started Agents Paying Forward and Short Refi Services

Sunday, February 1, 2009

ShortRefiService - Service Is Key

You may have read the landing page regarding ShortRefiServices.com, and the point that we made about being "of service". Our intention is to help those who have trouble with their finances, and/or on their mortgage debt. In some instances, we may not be the resource to help you. However, we still want to help. Below is some information from Chris Leichus of Blue Sky Capital. Blue Sky Capital is a resource for business capital, and they may be able to help you where others may not. You can reach Chris at (916) 601-8583 or chris@blueskybusinesscapital.com should you wish to discuss your situation.


Where to find Capital in today's economy?

In today's economy, with banks tightening their credit criteria, and home values decreasing, where can a business find the capital for expansion, new equipment, or to simply weather this economic cycle?
Blue Sky Business Capital has a variety of programs that may be able to help businesses survive and even thrive!
We have programs for:
*Equipment Leasing-heavy equipment, medical equipment, restaurant equipment and office equipment-almost any kind of equipment. Leasing equipment can save capital and may also provide tax advantages.
*Accounts Receivable Financing-Obtain capital today for future invoices
*Credit Card Receivable Lending-Capital today based on your company's credit card business.
*Working Capital Loans
*Private Party/Used Equipment Financing
Call today to see if we can help (916) 601-8583

Wednesday, January 21, 2009

What is Short refi Services?

Short Refi Services is a service company in every sense of the word. Homeownership has long been the American Dream. However, because of a number of factors, homeownership has become a nightmare. We help struggling homeowners preserve their home. Our services include help in loan modifications, short refinances, forebearances, and other options that may allow you to avoid foreclosure.

You can get a sense of our services by clicking on the following link:


We have incorporated a “referral program” in order to help real estate professionals, and also past and present clients. We want to help as many people as we can, and our reach can be expanded through the help of other professionals as well.

Our belief is that referrals should be rewarded, and you can be rewarded for your efforts (subject to legal restrictions of course). Take a look at the short presentation included (see link). It’s about 5 minutes, and it may allow us to help more people – but also lead to income for you! See the presentation by clicking on the following link:


America has a rich history of charity, generosity, and innovation. We want to continue that tradition. Here at Short Refi Services, we realize that you may be struggling with loss of income, burdensome debt, or fear of how you are going to make it. We will not, and cannot, guarantee the result most people desire, but we want to try.

Email me at rkershaw@shortrefiservices.com, or contact us at 800-890-7228 for more information. For more information or to download an application, you can go to our website at www.ShortRefiServices.com

 

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