For almost three years now I have talked about the idea that the American Dream of homeownership was really only a mirage. While policymakers had good intentions, homeownership has in many instances become the American Nightmare for numerous systematic reasons including: greed, lax government regulation and pure fraud. In a wonderful front page analysis in today’s Wall Street Journal, they take us through the process of why renting is now the “New Normal” and the New American Dream.
Posts Tagged ‘bailout’
Oppenheim Law Explains How Short Sales and House Flipping Can Bailout South Florida Homeowners
Tuesday, December 8th, 2009WSJ reporter, James Hagerty, arguably one of the best reporters covering the real estate crisis and with whom I speak with from time-to time wrote a great article this morning concerning professional investors who are going to auction, fixing up the houses and then flipping them for a profit. (Also take the time to look at the slides and related comments).
Unlike the flippers of the past, these folks are true professionals as this IS their business. They are not cops, firemen or teachers by day and flippers by night.
In fact, OppenheimLaw and Weston Title represent a number of these types of professional groups. They are all well funded and clearly taking advantage of the fact that the Banks are drowning in too much stuff and thus many times are clueless to the true value of an asset.
Further, as we have explained before, the Banks would rather get back cold cash now than continue trying to make old loans work through loan modifications, when they know the likelihood of re-default remains high. That is why we at OppenheimLaw and our sister title company, Weston Title, are calling 2010 the “Year of the Short Sale.” Banks actually still do about 20% better according to a recent Federal Reserve study when they allow a short sale to proceed as opposed to the Bank proceeding all the way through the foreclosure process. Of course with millions of homes that have already been foreclosed upon by the Banks, the Banks have to somehow get rid of their unwanted inventory.
One word of caution: if you are thinking of becoming a “professional flipper” do your homework; and do not think for a moment that there is a title company out there that will allow you to use the funds from the final buyer as your source of funds to purchase the property at the courthouse’s steps or in a short sale. That practice is now dead.
Thus, if you are in a position to look at flipping as your way to help bail yourself out from being underwater to treading water with your head up high… call me!
Roy Oppenheim
From the Trenches
Fannie Mae Announces Deed for Lease Program: A New Weapon in Our Foreclosure Defense Arsenal
Thursday, November 12th, 2009As we are always trying to build our arsenal in terms of foreclosure defense strategies, we have constantly said time is on your side and that the cavalry will arrive. So here we have a new government program that may be of interest to all of us by allowing homeowners to stay in their property as a tenant as opposed to a debtor.
Fannie Mae is introducing the Deed-for-Lease Program (D4L), a program designed to minimize family displacement, deterioration of neighborhoods caused by vandalism and theft to vacant homes, and the effect these have on families, communities and home price stabilization.
Here are some of the details regarding the Deed for Lease Program:
- Must be a Fannie Mae loan.
- Cannot be eligible for a loan modification.
- Rent cannot exceed 31% of the household income.
- Provides up to a one year lease- which could possibly become a month to month lease.
- Properties that are eligible for a DIL can possibly qualify for this program. Contingent upon successful DIL.
- Both Primary Residences and Investment properties will qualify for the program.
- Subleasing is prohibited under program.
Other Requirements for Deed for Lease
- The mortgage loan is a first lien mortgage loan secured by a one- to four-unit property. All property types are eligible. Second lien mortgage loans are not eligible.
- The mortgage loan is not guaranteed or insured by a federal agency (FHA, HUD, VA, or Rural Development).
- The borrower resides in the property as a primary residence or has leased the property to a tenant who uses the property as a primary residence. Second homes or vacation homes are not eligible.
- At least three payments have been made since origination or since the last modification.
- At the time of the referral to Fannie Mae for the D4L, the borrower is not 12 or more payments past due on the mortgage loan.
- The borrower is not involved in an active bankruptcy proceeding and is not a party to litigation involving the subject property or the mortgage loan.
- Marketable title is able to be conveyed (a title insurance policy is required).
- If there are subordinate liens secured against the subject, lien releases can be obtained.
- The occupant of the property (i.e., the borrower or the borrower’s tenant) has verifiable income. Occupants with no source of income are not eligible.
- There are no zoning or homeowner’s association (HOA) rental limitations that would prohibit a D4L.
Free Legal Workshop December 3: Fashioning Your Own Bailout
Wednesday, November 11th, 2009Florida Foreclosure Defense Workshop Helps Bailout Homeowners
Roy Oppenheim is a real estate and Florida foreclosure defense attorney who says homeowners who know their legal rights have the power to fashion their own foreclosure bailouts. Free Workshop Thursday, December 3 from 6-7 p.m.
Fort Lauderdale, FL – November 11, 2009 – With South Florida on pace for nearly 100,000 foreclosure filings this year, it’s time homeowners start fashioning their own foreclosure bailouts, according to Florida foreclosure defense attorney and legal blogger Roy Oppenheim. The first step to protecting yourself and your home is understanding your legal rights.
Oppenheim Law’s monthly workshops are designed to assist both homeowners and real estate professionals. During December’s workshop, Roy Oppenheim will not only show homeowners how to fashion their own Florida foreclosure defense bailouts, but will also emphasize the decreasing social stigma attached to the foreclosure process, and provide insight and valuable tips on buying and selling South Florida real estate.
“You have to have your own lifeboat, and you have to do what’s best for your family,” Oppenheim said on the Randi Rhodes Show. “You can’t wait for the Ark to come and pick you up. You’re going to have to build your own Ark and fashion your own bailout.”
What: Fashion Your Own Bailout: Free Real Estate Workshop
When: Thursday, December 3, 2009 – 6:00 to 7:00 PM
Who: Real estate professionals and homeowners facing foreclosure, buyers, and sellers
Where: 2500 Weston Rd Ste 404, Weston, FL 33331
Cost: Free with advanced registration
RSVP: To register email roy@oplaw.net or call 954.384.6114
December’s Foreclosure Bailout Workshop will highlight the following foreclosure defense strategies and real estate tips:
• Learn the process of foreclosure and how to fashion your own bailout
• Learn tips on applying for a mortgage modification and the best time to apply during foreclosure
• Insider information about counterclaims against the banks and deficiency judgments
• How to locate and purchase foreclosed properties substantially below market value
• Tips on finding, buying and selling short sales
• Insight on current Florida home prices and the right times to buy and sell
• Oppenheim will also discuss: deed in lieu, second mortgages, and Chapter 13 bankruptcy
Address: 2500 Weston Rd, Ste 404 in Weston, FL 33331.
Phone: 954.384.6114
Learn: http://www.oppenheimlaw.com
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Close: http://www.westontitle.com
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