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  • Simon

    Simon 11:11 am on February 23, 2010 Permalink | Reply
    Tags: Motivation   

    Are you Carrots, Eggs or Coffee? 

    I got a question to ask you.

    Are you: Carrots, Eggs or Coffee?

    A carrot, an egg, and a cup of coffee…You will never look at a cup of coffee the same way again.

    A young woman went to her mother and told her about her life and how things were so hard for her. She did not know how she was going to make it and wanted to give up, She was tired of fighting and struggling. It seemed as one problem was solved, a new one arose.

    Her mother took her to the kitchen. She filled three pots with water and placed each on a high fire. Soon the pots came to boil. In the first she placed carrots, in the second she placed eggs, and in the last she placed ground coffee beans. She let them sit and boil; without saying a word.

    In about twenty minutes she turned off the burners.. She fished the carrots out and placed them in a bowl. She pulled the eggs out and placed them in a bowl. Then she ladled the coffee out and placed it in a bowl. Turning to her daughter, she asked, ‘ Tell me what you see.’

    ‘Carrots, eggs, and coffee,’ she replied.

    Her mother brought her closer and asked her to feel the carrots. She did and noted that they were soft. The mother then asked the daughter to take an egg and break it. After pulling off the shell, she observed the hardboiled egg

    Finally, the mother asked the daughter to sip the coffee. The daughter smiled as she tasted its rich aroma. The daughter then asked, ‘What does it mean, mother?’

    Her mother explained that each of these objects had faced the same adversity: boiling water. Each reacted differently. The carrot went in strong, hard, and unrelenting. However, after being subjected to the boiling water, it softened and became weak The egg had been fragile. Its thin outer shell had protected its liquid interior, but after sitting through the boiling water, its inside became hardened. The ground coffee beans were unique, however. After they were in the boiling water, they had changed the water.

    ‘Which are you?’ she asked her daughter. ‘When adversity knocks on your door, how do you respond? Are you a carrot, an egg or a coffee bean?

    Think of this: Which am I? Am I the carrot that seems strong, but with pain and adversity do I wilt and become soft and lose my strength?

    Am I the egg that starts with a malleable heart, but changes with the heat? Did I have a fluid spirit, but after a death, a breakup, a financial hardship or some other trial, have I become hardened and stiff? Does my shell look the same, but on the inside am I bitter and tough with a stiff spirit and hardened heart?

    Or am I like the coffee bean? The bean actually changes the hot water, the very circumstance that brings the pain. When the water gets hot, it releases the fragrance and flavor. If you are like the bean, when things are at their worst, you get better and change the situation around you. When the hour is the darkest and trials are their greatest do you elevate yourself to another level? How do you handle adversity? Are you a carrot, an egg or a coffee bean?

    May you have enough happiness to make you sweet, enough trials to make you strong, enough sorrow to keep you human and enough hope to make you happy.

    The happiest of people don’t necessarily have the best of everything; they just make the most of everything that comes along their way. The brightest future will always be based on a forgotten past; you can’t go forward in life until you let go of your past failures and heartaches.

    When you were born, you were crying and everyone around you was smiling.

    Live your life so at the end, you’re the one who is smiling and everyone around you is crying.

    You might want to send this message to those people who mean something to you (I JUST DID); to those who have touched your life in one way or another; to those who make you smile when you really need it; to those who make you see the brighter side of things when you are really down; to those whose friendship you appreciate; to those who are so meaningful in your life.

    If you don’t send it, you will just miss out on the opportunity to brighten someone’s day with this message!

    May we all be COFFEE!!!!!!!

     
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  • Simon

    Simon 9:22 am on February 5, 2010 Permalink | Reply  

    WHAT IS A FOREBEARANCE AGREEMENT? 

    A Forbearance Agreement is a written agreement that comes from your mortgage company in which there are negotiated terms you agree with to keep your home. The agreement usually includes two parts.

    1. A borrower’s promise to remain current on the mortgage going forward

    2. An agreed plan for making up the delinquent interest and other charges which may consist of making additional payments to the mortgage company or the delinquent amount could be added to the loan to be paid later.

    Learn more about Forbearance Agreements here.

    http://www.mortgageqna.com/mortgage-payment-problems/what-is-a-forbearance-agreement.html

    Forbearance Definitions:

    http://en.wikipedia.org/wiki/Forbearance

    http://definitions.uslegal.com/f/forbearance-agreement/

     
  • Simon

    Simon 9:22 am on February 5, 2010 Permalink | Reply  

    IF MY HOUSE NEEDS LOTS OF REPAIRS, WILL THE BANK STILL CONSIDER A SHORT SALE? 

    Often “Yes”. In fact, many banks are more motivated to do a short sale on a property that needs repairs than one that doesn’t. The bank fully understands the risk of loss goes up if they pursue a foreclosure on a property that needs a lot of work. It is probably the easiest way to get a discount approved for a short sale when you can justify lots of repair work needed to bring the property back up to a marketable condition to be resold.

    Besides, the banks are in the loan business NOT the repair or handyman one.

    It really doesn’t matter the type of house or condition it’s in, all mortgages can be discounted. Some specific loan types like FHA and VA have set rules in place, but nearly all banks will accept short sales. The very best types of properties to perform short sales on are houses that need repair work because the bank will often allow a bigger discount for it. Property that is overleveraged (owing more on the house than market value) often make good candidates.

    In-experienced, rookie or uneducated real estate investors who see a house that has more loans against it than market value may walk away from it. However experienced or seasoned real estate professional investors see quite the opposite. The experienced short sale investor understands properties with large second or junior liens against it can be gold waited to be found. Why? Because the junior lien holders will accept pennies on the dollar to fully settle their position. They know if the property goes to foreclosure, they will be wiped out at the foreclosure auction. These types of lenders with big second and third mortgage positions would much rather have something than nothing.

     
  • Simon

    Simon 9:21 am on February 5, 2010 Permalink | Reply  

    WHAT IF I HAVE TWO LOANS, WILL THE BANK STILL CONSIDER A SHORT SALE? 

    “Yes”. Sometimes the bank holds both the first and second loan positions. You can get the bank to work with you to discount both loans depending on the balance you owe and the value of the home. Often it is much easier to short sale a house with two loans even if the first and second loans are owed by two different lenders. Any position behind the first loan will often be in a negative equity position. This is due to the subprime loans that allowed people to borrow more against the house then what it was worth. This combined with the severe depreciation in values of homes can create a great opportunity to short sale both the first and second loans and even any liens or judgments against the property. Any junior lien holder (any loan that is behind the first position) will usually take pennies on the dollar to settle the loan amount. This is also a great way to create equity out of thin air depending on the real value of the home. At the end of the day, no lien holder would prefer the property to go through a tedious and expensive foreclosure process unless there is significant equity to justify their loan position.

     
  • Simon

    Simon 9:21 am on February 5, 2010 Permalink | Reply  

    CAN I DEED MY PROPERTY TO ANOTHER PERSON TO SAVE IT? 

    You don’t want to deed your property to someone that you don’t know or that doesn’t have experience dealing with real estate matters. You have to remember, the bank still considers you as the primary person responsible for making payments on the loan. If you don’t make payments on the loan, or if the bank starts a foreclosure process, your credit if probably going to be negatively affected. It’s also important to understand that when you deed your property to someone else, you give up control of the property. You still owe the bank and responsible, yet the asset (your house) is not in control of another person. The person on the deed controls the property hence they maintain an equitable interest.

    It is not recommended that you deed your property to someone without paying off the loan unless you have spent some time understanding the ramifications. It is always best to consult a real estate attorney on matters like these.

     
    • Simon 8:07 am on May 9, 2010 Permalink | Reply

      Loved writing this!

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  • Simon

    Simon 9:21 am on February 5, 2010 Permalink | Reply  

    WHAT WILL IT COST ME TO SHORT SALE MY HOUSE? 

    Possibly nothing… In some cases, borrowers pay no sales costs if the lender approves the Short Sale. All commissions, title and escrow fees, and even most repair expenses may be paid by the lender as part of a Short Sale approval.

    “The agreement is subject to existing lender for purpose of a short sale at no cost to the Seller. No funds will be required by seller to close escrow”

    Keep in mind, the bank’s approve Short Sales and accept the resulting loss in an effort to avoid bigger losses through foreclosure.

     
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  • Simon

    Simon 9:21 am on February 5, 2010 Permalink | Reply  

    CAN I SHORT SALE MY OWN HOUSE? 

    That is certainly a bit of a “grey” area. The answer is “maybe”. Some banks will accept a short sale even if the homeowner is not yet delinquent on their mortgage. However the homeowner must prove to the bank the hardship they are experiencing is NOT going to get any better. Hence the bank has an opportunity now to mitigate their loss before hiring attorneys to handle the start of a foreclosure. You can certainly find out if the bank is willing to work with you for a short sale by contacting them and asking them for the Loss Mitigation or Foreclosure department. Many banks have their own special department names for property liquidation needs.

     
  • Simon

    Simon 9:20 am on February 5, 2010 Permalink | Reply  

    WHY WOULD A BANK ACCEPT A SHORT SALE? 

    There are several reasons why banks accept short sales. The main one is banks don’t like to have what is called “non-performing” assets on their books. It looks bad for their financial backers and stock holders. If they think quickly liquidating a property from their inventory without taking a huge loss, they will agree to it. Secondly, lenders know they could lose a lot more money if the property goes to auction. The cost of foreclosure is expensive. You have to consider there are so many fees involved if the property actually goes to auction, the bank would be better off taking a discount beforehand and be finished with the hassle of the property all together.

    Here are some more specific reasons:

    * Wall Street – Banks rely heavily on the ability to package and sell bundles of loans to investors on the secondary mortgage market. They must sell the bundles of loans in order to put the funds back to work by loaning the money out again and collecting loan fees. If banks mortgages perform poorly after they are sold it could impact the lender’s ability to sell their loans on the secondary market. A short sale is a liquidation strategy to get the loan paid off quickly.
    * Growing Legal Concerns – Banks Mortgage lenders deal with legal pressure to work with borrowers to equitably resolve situations where the borrowers are unable to meet their mortgage obligation, and particularly when the borrower makes effort to arrive at a compromised solution. We live in a litigious society and lawyers aren’t cheap to hire to work
    for you.

    * Reserve Requirement- Delinquent and non-performing assets place another burden on mortgage lenders. For all delinquent and non-performing loans lenders must set aside funds in reserve to deal with potential losses. These funds cannot be put to work generating new loan fees until the bad loans are resolved. When a bank accepts a short sale, the lender can put more money to work.

    * Asset Management Expenses- When a lender acquires a property through foreclosure, the property will be managed until it is repaired and resold. It is expensive to manage real property assets – homes – that are spread throughout United States. Keeping properties maintained, managing their utilities, making repairs and the administrative costs attached to these activities are all costs the bank would prefer to avoid. When a bank accepts a shorts sale all of these fees are eliminated from their end.

    Foreclosures are at an all time high. This is great news for real estate investors because more banks will agree to short sale more properties out from under their “bad/delinquent debt” inventory. Banks need investors to help liquidate more properties.

     
  • Simon

    Simon 9:20 am on February 5, 2010 Permalink | Reply  

    DO ALL BANKS APPROVE SHORT SALES? 

    Generally “Yes”… but on occasion “no”. This is yet another reason why it’s imperative you work with someone that has experience dealing with banks to get your short sale approved. Banks
    are bottle necked and congested from the mountain of foreclosures happening everyday in the United States. Expect the process to take some time (about 60-90 days). Most banks will work with you, but others will give you the run-around.

     
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  • Simon

    Simon 9:19 am on February 5, 2010 Permalink | Reply  

    WHEN IS THE BEST TIME TO DO A SHORT SALE? 

    The most commonly identifiable time to do a short sale is when the property is in what is called a “Pre-foreclosure” status. This means the property is not yet been foreclosed upon and the bank is working with the attorneys and the homeowner to come to some resolve to get the property back in a “performing” status.

    There are two stages of Pre-foreclosure

    1. Behind on Payments Only: This stage the homeowner is behind on payments, but the bank hasn’t hired and attorney and filed a LisPendens or foreclosure suit to start the process for foreclosure.

    2. Behind on Payments with Notice of Default (N.O.D.) Filed: This is the stage where the bank is more motivated to consider a short sale because the only other option is taking the property through the auction for foreclosure. At this stage the homeowner has usually missed 3 or more mortgage payments.

    If you want to get more short sales completed faster, you will want to target homeowners that are in the second stage of Pre-foreclosure. This also means the homeowner has missed more than 3 mortgage payments. One the Notice of Default (N.O.D.) has been filed and recorded, banks will get much more motivated to liquidate the property. This where you can get heavily discounted properties because every day the bank is losing money against the property.

    You can get banks to do what is referred as “forced mitigation” where some rare cases, bank will push through a short sale request because it is determined the homeowner can no longer make payments and their hardship situation is on-going. An example of this would be a military relocation situation where the homeowner is transferred to another country for a few years and can no longer afford to make the mortgage payments.

     
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