Foreclosure Tips

Dear Homeowner/Client:

It’s no secret that the economy has hit every household directly. Incomes are not keeping pace with market costs, mortgage loans continue to accelerate, while property values decrease dramatically. The Federal government did fix the banks’ pending mortgage crisis; however, many people nationwide are up in arms not knowing where to turn for the “homeowners’ bailout.” Daily we get numerous calls and e-mails from clients, asking…”just how do we participate in the mortgage crisis bailout?” Sadly, that was not part of the bailout that was designed to keep the banks stable due to the large number of defaulted mortgage loans.

The only available solution to fixing the mortgage loan problem is attacking each issue and problem one household at a time. There has not yet been created a Congressional plan, and there is no current blanket program, that covers every household. Each problem must be resolved individually, and repaired on a per case basis.

What the Federal Treasury has created as of March 2009, now popularly known as the “Obama Plan,” is a means for responsible homeowners to get some relief on their mortgage loans. Katz & Associates Law Firm has handled several cures under the “Obama Plan” and to date many homeowners are able to see light again. Not every homeowner qualifies. Of the 13-million homes needing loan modification, less than 500,000 have been helped thus far. The reason for the low number in just five months, too many homeowners attempted their own adjustments or sought help from unlicensed and under-qualified loan modification services. Only an attorney can get mortgage rates and terms re-qualified legally and properly. For this purpose alone, banks prefer to deal with the attorneys to lessen the banks’ own liability. Without legal representation, many do-it-yourselfers are immediately denied/turned-down by banks, so not to create banker liability.

Katz & Associates is part of a handful of attorneys in a national program (Default Mortgage Modification, “DMM”) endorsed by the U.S. Treasury’s U.S. Trustee’s Office, and Federal District Court, to work directly with the Nation’s mortgage lender’s top level legal departments and management departments to expedite the slow process of mortgage loan modification. Due to the electronic processing methods utilized in DMM, this has dramatically brought down the costs of legal representation to now make it affordable to all homeowners, to legally aid in curing the individual mortgage problems of many homeowners. Update: In addition to the current popular “Obama Plan” and still widely utilized “Bush 7/2008 Hope for Homeowners”, there are several State programs that are being put into effect ot help homeowners, such as yourself, to keep their homes. The Bar Association Fund (contributed funds from member attorneys) also have some relief and aid programs put into effect that can be tapped into as a valuable resouce to assist many homeowners on a local basis. Legal Aid Society is another valuable resource. Katz & Associates utilizes each and every resource as a benefit to assisting our clients. Contact Katz & Associates for a Free Consultation.

Contact Katz & Associates by reply email to: info@katzassociateslaw.com in order to have your own mortgage loan situation evaluated for representation for modification.

Sincerely,

KATZ & ASSOCIATES LAW FIRM
Katz & Associates, PLLC

 

Short Sales

SHORT SALE TALES

Many clients ask about Short Sale. A Short Sale takes place when your mortgage loan lender pre-approves and qualifies the homeowner (Seller) and the property for a discounted sale. The lender is taking a write down from the original loan or outstanding loan balance to a much lower sale price. It is very important for Clients to be aware that a borrower cannot randomly decide to sell their property, unless the rigorous legal approval process is first approved by your lender. Without that approval process, the sale and transfer may not be legal, as in almost all states. We deal directly with the legal department of the lender source and their supervisory management levels, not with the collection departments. If you want to consider Short Sale, please contact us for a free evaluation and free consultation to understand the qualification process clearly.

Another issue in regard to Short Sale is the tax liability. For almost all Sellers under Short Sale, there is no tax liability. Prior to the end of the Bush Administration, July 2008, the taxation of the bank’s loss in the write down was charged to the Seller. Since 2008 the Federal Taxation is now a non-event in almost all cases; however, some states do have different taxation policies. A Short Seller should always verify their particular taxation exposure.

Other important legal details regarding Short Sale may include further exposure to direct liability in the form of Mortgage Insuror exposure. Unless an attorney reviews, for your own behalf, all required releases in regard to the Short Sale, the Seller may be exposed to a future liability and expense that can lead to a future judgment and lien on other assets.

Katz & Associates is well-versed in all areas of real estate, banking and finance, and stop foreclosure. Call or e-mail our law firm for a free consultation if you are considering Short Sale.

Contact Katz & Associates by reply email to: info@katzassociateslaw.com in order to have your own mortgage loan situation evaluated for representation for modification.

KATZ & ASSOCIATES LAW FIRM
Katz & Associates, PLLC