I live in Phx, Az. I owe more on my current mortgage than my home is worth by at least 50%.I heard from a mortgage broker who said for $1600 he

Asked by Suenicks, 85021 Sun Jan 3, 2010

could negotiate a prinicple reduction. Is this true and won't I have to pay taxes if that is really possible?

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21
Stephanie We…, Agent, Gilbert, AZ
Sun Jan 3, 2010
BEST ANSWER
Suenicks, please check out the website below. It is a website for homeowner assistance. You can find a counselor for free to pre-determine your situation and possibly make a recommendation to your current lender for a loan modification.

Stephanie Weiss
StephanieWeissMoves@gmail.com
0 votes
Stew Keene, Agent, Scottsdale, AZ
Sun Jan 3, 2010
Sue,

I want you to review this article I wrote on my experience so far with my endeavor for a principle reduction on my own personal residence.

http://www.trulia.com/blog/stew_keene/2009/09/investigation_…

The only thing rare about principle reductions is the lack of knowledge on the approach and other Realtors unfamiliar with how to proceed and what they are being told by outside sources.

So far, we have done the forensic audit. Due to RESPA and HERPA violations on the banks side for disclosure and failure of the banks to provide the documents, they are supposed to keep on file in the state of AZ for 5 years (another violation) our attorneys working with the negotiator filed a "Lis Pendens" with the auction attorneys canceling the foreclosure scheduled for Jan 7th. The negotiator is now working on the mortgage mod & principle reduction which looks very promising. They boast a 98% success rate but that is just a verbal presentation that has been made to me.

Although there is still some time involved in getting this accomplished we both feel confident that something will be done.

If you need more information please feel free to reach out. I am a very transparent person and if there is anything I can pass along to you that may help you stay in your home than I feel I have a moral obligation to provide that solution then to solicit you for a short sale of your home to gain a commission from your obvious hardship.

Hopefully my 1st hand experience will be of a benefit to you and anyone else needing assistance.

Sincerely,


Stew Keene - Home Smart Realty
GRI, ABR, CNE, MRE, AHWD, Epro
Scottsdale and North Phoenix Area Specialist
Web Reference:  http://www.stewkeene.com
3 votes
Voices Member, , Benton County, OR
Sun Jan 3, 2010
BTW...Here's a link to their site that actually works...http://stayaftershortsale.com/
1 vote
Francine Ler…, , Phoenix, AZ
Sun Jan 3, 2010
And how will she be able to buy her house back when she has to wait at least 2 years in order to purchase a home again, Mr. Ourcash4homes?
1 vote
Carlos Ramir…, Agent, Mesa, AZ
Sun Jan 3, 2010
That sounds very fishy to me. Principal reductions are very rare, and the first thing you will have to proof is that you are in a distress situation and can not make your payments anymore.

There is nothing he can do that you can not do by yourself. I will advice you to contact the bank directly. Regarding that tax question, you will have to discuss that with a tax professional.

Good luck!

Carlos J. Ramirez, PC, ABR, CNE
Associate Broker/Realtor, HomeSmart -
http://www.SmartAZRealty.com
1 vote
Crescent Gro…, Agent, Orlando, FL
Thu Jan 7, 2010
Wow...you poor thing...not only did your question get "hijacked" as someone else pointed out here but yes sounds like you've got to be careful because of the many scams. I also wanted to share an article with you I read a few days ago about loan modifications success rate. Keep in mind loan resets, especially the 5 year ARMS will still be resetting for several years to come, hence most of us in the valley will have to bear the cost of being "underwater" for a little bit longer. Have you considered other alternatives? Do you need to move or are you happy in your current home and happy to stay put for a number of more years? If you have no desire, need or intention to move then a loan mod may be the best thing for you to pursue indeed but just be careful. Have you tried contacting the banks yourself?

Here's the article http://money.cnn.com/2009/12/10/news/economy/permanent_loan_…

Uzi Husain,
Keller Williams Integrity 1st Realty
480-390-2338
0 votes
The Urban Te…, Agent, Phoenix, AZ
Mon Jan 4, 2010
The Arizona Attorney General's office has lots of info on loan modification and short sale fraud. You may want to read their information. Our blog site has a link to the AG's office and a look at some of the scams.

http://www.urbanlifeblog.com/2009/12/how-to-avoid-loan-modif…
Web Reference:  http://www.urbanteamaz.com
0 votes
, ,
Mon Jan 4, 2010
H Francine,

I do not know Mr OurCash4Homes, but I can say, that as a large, local mortgage bank, we have the resources to qualify a client for a new home after they've gone through a short sale, as long as the homeowner was not late on their mortgage payments & they qualify, as is required for any other client.

All the best,
Ros

Roswell Moore, CMPS
Certified Mortgage Planner
Web Reference:  http://www.ezAZloan.com
0 votes
Dan Chase, Home Buyer, Texas City, TX
Sun Jan 3, 2010
Dunes, just post over 300 blogs. One person did and got a vip3. You are doing it the hard way by answering questions here.

Regarding one of the original questions. They passed a law in 2009, (maybe 2008?) that said the "profit" from a reduction in house mortgage amount did not get taxed. Before that it did. Will it continue into 2010? Probably, but talk to the IRS to find out for sure.
0 votes
Voices Member, , Benton County, OR
Sun Jan 3, 2010
Patrick I've gotten 7 emails from Cash for Homes guy ;)...

I am so a "Trulia Freak"....That why I want my Level3 VIP Badge so badly lol
0 votes
Lucy Edelste…, , Rolling Hills Estates, CA
Sun Jan 3, 2010
Each situation has variances. Based on your question, I would say don't get involved with anyone that ask for upfront fees. Its illegal, which would tell you that you are getting involved with a crook.

There are much better options. I will be happy to talk with you and answer all your questions. I have a degree in Real Estate and have been doing this for 15 years. Contact me at 424-241-3585. (I practice in California and am very aware of the Nevada & Arizona Laws)
0 votes
Mr.P, , Arizona
Sun Jan 3, 2010
Dunes I am not referring to you as a "Trulia freak", I am talking about a second email I received that makes his website look like a parking ticket.
0 votes
Voices Member, , Benton County, OR
Sun Jan 3, 2010
Jay

I would have thought one of the "25 Realtors, 5 Brokers and 4 RE Attorneys" might have noticed that. lol
0 votes
Mr.P, , Arizona
Sun Jan 3, 2010
Dear Mr Our Cash 4 You,

I received your email and listened to your voice mail.

I went to this handy site, http://159.87.254.2/publicdatabase/Default.aspxand looked everything up. it appears you are not a registered salesman under said broker. The address, is also questionable. I could not find your name as a registered real estate agent either.

Now in all fairness, You actually don`t have to be a Realtor to own a Real estate company, however you need to be one to talk about real estate in a public forum, you are representing yourself as a Broker here on Trulia.

Now I am not one for details, I have overlooked a few things on occasion, I myself spend a lot of time out of compliance and mind.

However, Combine that with the "Miriacle worker" you claim to be.................. considering my new years resolution is to be nice to Realtors,( and people who play one on Trulia) I will give you some friendly advice.

No one will ever take you seriously with out a name & brokerage.
Don`t send all those emails, one of these trulia freaks is gonna post them...there I was nice.

Good Luck
0 votes
Voices Member, , Benton County, OR
Sun Jan 3, 2010
Patrick

He's talking about not being able to post this

"OurCash4Homes program in Phoenix Arizona, we are http://www.stayaftershortsale.com, we do what many people need, we give you the Power of Cash and then you use the loan or Cash, to purchase back from us. Why would you do this, we negotiate, for 60 cents on the dollar of CMV, the bank won't do this for you the end purchaser. We have all Cash, our offer is taken first, Cash buyers push aside Loan offers every day. Please, if this falls through, go to our website, fill out the contact form and we schedule an appointment. Yes, Realtors, we are ready for all of you, we currently have over 25 Realtors, 5 Brokers and 4 RE Attorneys, for various RE Needs and Trust Creations. We are 100% licensed and have Attorneys for Special Asset Protection Tools"

as he did before and I called it SPAM...Evidently it's not (according to his email) and is actually a Patriotic assistance Program for the Consumer which Trulias unfair Spam rules stop him from repeating over and over.. If only I'd known that ;)

Dunes
0 votes
Mr.P, , Arizona
Sun Jan 3, 2010
OurCash4Homes-

"Trulia, restricts me from further giving you more information."

Trulia restricts nothing, except foul language, that`s why my reply to you will be short.

Obviously you practice real estate, why don`t you upload your name and brokerage? There`s no restriction on that.
0 votes
Jeffrey Masi…, Agent, Scottsdale, AZ
Sun Jan 3, 2010
Dear Suenicks:

Happy New Year to you. Sorry, to hear about your situation. You are not the only one, so there are proven paths to take right now. Paying a fee like this without considering the other options, could be a mistake.

There a several options to you. Click this link under the sellers section of my website for a review of the options: Financial distress? Homeowner finance options through HOPE NOW, click: http://www.arizonahomesland.com/forsellersorlandlords.html

There is also an excellent free webinar there to guide you through the short sale process if you are considering selling your home for less than the mortgage balance.

The advantages of a short sale?
1. You usually get to live in the home, often rent free during the process that the home is being sold and/or an offer and release of your debt is being negotiated with the bank.
2. Your credit although it will be negatively affected is better off than in a foreclosure. Often, sellers can re-apply in 2-3 years for a new loan if their other credit is kept up to date. The short sale is considered a mutual agreement settlement.
3. The difference between your loan(s) on the home and the amount the bank is shorted is negotiated and put in writing with a full, partial or no write off by the bank usually in a personal note. Depending on the circumstances of your mortgage, Arizona is a "Non-Deficiency" state, meaninng the bank is prohibited by law from pursuing you for the "shorted" amount.

As with any financial transaction of this magnitude you should consult with your accountant and/or legal representative to make sure that the non deficiency status in a short sale will apply to your personal situation..

If you need help getting the short sale process started, with the case opened with escrow, the bank, a negotiator for you and the home listed, feel free to contact me. Would be pleased to help you.

Regards, Jeff

Jeff Masich, Realtor®
Arizona Homes and Land
480-556-0940
jmasich@usa.com
HomeSmart Real Estate
Web Reference:  http://ArizonaHomesLand.com
0 votes
Mr.P, , Arizona
Sun Jan 3, 2010
No don`t give anyone any money, You can call the bank yourself and begin the loan modification process.


Good Luck
0 votes
Francine Ler…, , Phoenix, AZ
Sun Jan 3, 2010
First of all, as everyone has said, do NOT pay this person to help you modify your loan!
It is highly doubtful that the bank would change the principal, and if you don't pay your taxes, who do you think will? That really sounds like it is NOT a possibility.
Call the bank that you make your payments to and ask to speak to someone about a loan modification. You can do it yourself and for FREE. They will ask you to send in documents pertaining to your employment salary, other loans you owe, bank statements, etc. and will help you to see if you meet their qualifications
Good luck!
0 votes
Noel Anderson, Agent, Chandler, AZ
Sun Jan 3, 2010
You don't need to pay anyone to get a loan motification. As a matter of fact, I would be very leary of anyone who offers to charge you to modify your loan. For starters, no one can guarantee you that a bank will modify your loan. Every bank has their own criteria and you must meet theirs before they will agree to a modification.

You can call the bank yourself and negoiate a loan modification. Don't ever pay anyone to do that for you.

Arizona has put out a comprehensive workbook with for people like yourself who have found themselves upside down in their mortage. You can access it from my website for FREE no strings attached at http://itsahouse4u.com/workbook.pdf. Read it before you do anything.
Good Luck.
0 votes
Stan Batters…, , Phoenix, AZ
Sun Jan 3, 2010
Hi Suenicks

I would be very causes about paying someone money to get your mortgage reducesed.
If you need more information
please call me at 602-486-1486
0 votes
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