Why the 2020 COVID-19 crisis isn’t like 2008

Will this year’s recession be as bad as — or worse than — the Great Recession? To understand the answer, we have to look at some key differences.

The future is always unknown. However, many of us are looking to the recent past — or more specifically, the Great Recession — for a sign of what’s to come. With unemployment rates projected to climb 30 percent or more, this year’s crisis might feel even worse than what happened in 2008. However, the truth is that today’s situation is much different, especially for us in the real estate industry. 

1. This is a medical crisis that has created an economic crisis

Let’s be honest, the Great Recession was created out of a few things — the American dream, greed and too much optimism. Real estate was right in the middle of where those three combined to create unsafe lending practices that lead to the Great Recession. Today is very different. This crisis is a medical one. Humanity did nothing consciously to create this, and the economy is being shut down for health reasons. This will make for a much quicker recovery.

2. There will be fewer foreclosures

As a result of the Great Recession, the number of foreclosures skyrocketed, which pushed prices down in the entire market. We simply won’t see those high foreclosure rates because we have been much more careful in the decade following the Great Recession with our lending standards.

As the saying goes, “Fool me once, shame on you; fool me twice, shame on me.” We took that into account this time around. We didn’t make the same mistakes. Fewer foreclosures means less downward pressure on pricing.

3. We don’t have a liquidity crisis

In 2008, we saw a major liquidity crisis. There was no money to lend. Household banks were closing, and so were the big banks. It was bad. The government tried to keep the money moving, but since the recession was centered in the market, they were simply not able to help enough.

Today, we don’t have that same problem. Banks have plenty of cash, and the federal government is working to keep money flowing. The largest sector that helps our industry is the federal government, which buys mortgage-backed securities. Keeping that money flowing will make it easier for everyone from first-time homeowners to large corporations to continue to borrow money.

4. We are saving small businesses

Whether you agree or disagree with the large stimulus bill, one thing is very clear — the government wants to save small businesses. According to the most recent data by the U.S. Census Bureau, about 46.8 percent of workers are employed by a small business (which is defined as a firm with fewer than 500 employees). 

The Paycheck Protection Program (PPP) is essentially covering the largest portion of expenses for all small businesses for two months. If, for some reason, this crisis extends longer, they may even extend the program. This is unprecedented, but it shows that we support small businesses. This will help half of the workers to get back to work.

5. Employment will bounce back

The news media likes to get our attention with predictions about unemployment reaching 30 percent. The Great Depression only hit 25 percent — and this is going to be worse, right? Well, the Great Depression had very different causes, and we didn’t have the safeguards we do now back then.

Unemployment benefits will kick in quickly for these workers. Some may even get a pay raise, maintaining their buying power. With this being a medical crisis, when it passes, their employers will be calling them back. Most people know that. Some employers will not lay off their employees in the first place because of the PPP program.

No matter how it plays out with each employer, most will hire back quickly. The one exception is the travel industry, where unemployment may drag on for a year or two. We have been teetering on the edge of a recession for a couple of years. It may have come at a bad time of the year for our industry, but this is the best kind of recession — a quick one.

The market needed to reset, and we have pushed that reset button. When this is over, there will be demand from sellers and buyers. It will honestly be very busy.

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Are you under a mortgage crunch, because of COVID-19

COVID-19 has placed millions of homeowners at risk of losing their homes. Here’s what you we can do to help homeowners survive their mortgage crunch, avoid foreclosure and keep their homes. 

If you know of anyone who is facing a mortgage crunch due to COVID-19, time is of the essence. The sooner they take definitive action to address their situation, the more likely they will be to successfully navigate through this difficult time. 

Failure to act quickly can have dire consequences including:   

  • Loss of any equity the owner may have in the property.
  • A substantial drop in their credit score resulting in higher fees and interest rates on any credit they do obtain.  
  • Higher costs and less availability of other products, the most notable of which is auto insurance. 

Help is available

When homeowners are facing a possible foreclosure, they seldom know what to do. There is help available for those currently struggling to make their mortgage payments. We have helped hundreds of homeowners work through the great recession and have the experience to help you and work with your bank of needed. Our information is free and you should not have to be charged for assistance.

Foreclosure avoidance strategies from the Great Recession

We were selling real estate during the Great Recession remembers all the foreclosures, short sales and bankruptcies that occurred. Nevertheless, here are some options that other distressed homeowners used to weather previous downturns. 

  • Reduce costs by doubling up with other family members who may be currently renting.  
  • For those who have a spare bedroom and bath, consider finding a roommate. 
  • Rent out their current home and move into a rental. In many cases, the rent covers a substantial proportion of the owner’s carrying costs. 
  • If the person owns two properties and is living in the one that has higher carrying costs, rent the more expensive property, and move into the property with the lower carrying costs. 

Lender solutions

Lenders can provide a wide variety of options to those facing a mortgage crunch, but getting that help can be challenging. What’s unusual about today’s situation is that many lenders have voluntarily agreed to help distressed homeowners find a workable solution. 

When a homeowner contacts a lender, it’s usually smart to bypass the customer service department and ask for loan workout department instead. 

Forbearance

Forbearance is designed to help homeowners with hardships such as losing their job, health care costs or damage from natural disasters. The lender allows the homeowner to temporarily stop paying their mortgage or allows them to pay back the mortgage with a lower payment. The homeowner will have to repay any missed or reduced payments. Some types of forbearance are listed below: 

1. Pause with a balloon payment

Avoid any option that allows delayed payments for a period of time but requires a balloon payment at the end for the full amount.

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2. Mortgage payment reduction option

Assume the homeowner has a $1,000 monthly mortgage payment, and the lender agrees to reduce the payment to $500 for three months.

Starting in the fourth month, the homeowner would increase their payments to $1,125 for the next 12 months to payback the $1,500 they didn’t pay. ($1,000 + $1500/12 = $1,125 per month for the next 12 months).

3. Paused payment option paid back at the end of the mortgage

For someone who may be temporarily unemployed due to COVID-19, this can be an excellent option. Homeowners can request to pause their payments for six months.

They can repay that amount by either adding it to the end of their mortgage or by taking out a separate loan to cover it. Interest continues to accrue on the missed payments.

4. Loan extension or permanent interest rate reduction

Homeowners may be able to extend the time it takes to pay off their loan or obtain a change in their interest rate. While this may sound attractive, they will have even more requirements and hurdles to jump than obtaining a refinance or a new loan. This process typically takes much longer to close as well. 

5. Step rate loan modification

The interest rate is adjusted instead of the term length to make the monthly payments more affordable. A step rate drops the interest rate by up to 3 percent for the first year and then increases 1 percent per year until it returns to the original interest rate. This program provides temporary relief and is very popular with lenders.

How to locate a forbearance program

Hope Now, which is a part of the Consumer Financial Protection Bureau (CFPB), is a nonprofit dedicated to home preservation. Formed in 2007 by the U.S. Department of the Treasury and the U.S. Department of Housing and Urban Development (HUD), the alliance brought together diverse stakeholders to address housing challenges in local markets and to create collaborations to solve problems. 

During the Great Recession, the Hope Now alliance was a tremendous resource for distressed property owners. Today, it’s helping distressed homeowners reach their mortgage servicers about beginning the forbearance process. Here are the steps to take: 

  • Visit the nonprofit’s website, and click on COVID-19 tab. 
  • A drop-down menu will appear. Locate the company that services their mortgage.
  • Click on the name of the lender/service provider. 
  • Complete the online application to begin the forbearance process. 
  • For any homeowner seeking forbearance or any other type of loan modification, keep in mind that any error in the submission package will result in a denial. 
  • The lender may also charge fees for this service including a drive-by appraisal, title, escrow and recording fees. Borrowers may be able to roll these fees into existing loan balance.

To obtain an objective assessment about the lender’s solution to the homeowner’s situation, visit the CFPB’s “Find a Counselor” tool to obtain a list of counseling agencies approved by the HUD. 

Two caveats

Any time a homeowner is considering changing the terms of their mortgage, the possible tax ramifications should be evaluated by their tax professional.

Second, before signing your final loan documents, always obtain an agreement in writing about how this change will be reported on their credit report. If the lender reports their credit status incorrectly, the homeowner can give the credit bureau a copy of the letter. The homeowner also should contact the lender to advise them they have made a reporting error on their credit report. 

We are here to help struggling homeowners obtain the help they need to work through their mortgage issues and keep their homes. 

Feel free to reach out to us for assistance 951-506-5744

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California Guide to Evictions, Rent and Foreclosures

California has had one of the more robust and far-reaching responses to the coronavirus. At the state level, Gov. Gavin Newsom signed an order that allows local jurisdictions to pause evictions. Newsom also brokered a deal with major banks that will give mortgage holders a grace period in the event that they can’t make their payments.

Numerous local jurisdictions have also enacted their own policies. In Los Angeles, Mayor Eric Garcetti signed an order barring evictions, and issued a rent freeze on the city’s hundreds of thousands of rent-controlled units.

San Francisco Mayor London Breed also issued a moratorium on residential evictions.

Numerous other communities in California — including Ventura County, San Diego, San Bernardino and others — have also either adopted eviction moratoriums or are considering them.

Additional resources: The California Apartment Association has a resource page on the coronavirus.

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Banks agree to mortgage grace period in California

Gov. Gavin Newsom announced Wednesday that Wells Fargo, Citibank, JP Morgan and U.S. Bank would give homeowners a 90-day grace period

As millions of Americans face the prospect of declining wages and layoffs amid the coronavirus pandemic, California Gov. Gavin Newsom announced Wednesday that his state struck a deal with several major banks to give people a break on their mortgage payments.

Newsom touted the deal in a tweet Wednesday afternoon, saying that “families should not lose their homes because of COVID-19.” The deal gives homeowners a 90-day grace period and includes Wells Fargo, Citibank, JP Morgan and U.S. Bank, according Newsom.

Bank of America also agreed to provide a 30-day grace period.

Asked how the grace period works for customers, U.S. Bank said that it has a nationwide program that “provides for a minimum 90-day forbearance program with no late fees.”

“If, at the end of the hardship, customers are unable to pay their installments in full, options such as extending the assistance plan, repayment plans, or a loan modification may be available,” a bank spokesperson told Inman in an email.

Wells Fargo told Inman that it is still encouraging people to pay their mortgages, but is “granting an immediate 90-day payment suspension for any Wells Fargo Home Lending mortgage or home equity customer who requests assistance.”

The other banks did not respond to Inman’s request for comment.

However, the deal comes amid major economic upheaval due to the pandemic. The stock market has seen repeated plunges in recent days, and some real estate industry leaders have warned that the U.S. is entering an “economic standstill.” One of the primary reasons for the chaos is that “social distancing” — which has been widely advocated by political and health leaders — has left multitudes of people in service, travel, food, real estate and other industries without work or income.

According to the Centers for Disease Control, there have been 54,453 cases of the illness, and 737 deaths, in the U.S. as of Wednesday. And while areas such as Washington and New York have so far been the hardest hit, Newsom’s state had 2,724 cases as of Wednesday.

Newsom also said during a news conference Wednesday that more than 1 million Californians have applied for unemployment benefits this March.

The deal with the banks follows a growing push to give both homeowners and renters relief as they face increasingly dim financial prospects. Among the relief plans, just days ago Fannie Mae and Freddie Mac announced that would let some homeowners reduce or pause their mortgage payments for up to a year.

Landlords and elected officials have also halted evictions and frozen rent in a bid to give renters some relief.

Additionally, lawmakers on Tuesday passed a $2 trillion economic stimulus package that is meant to further give Americans some relief.

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Are Short Sales Dead?

I’ve been hearing throughout the industry that short sales are dead and lenders are not giving approvals. I’m not seeing that necessarily as I just received a Wells Fargo short sale approval. Just in the past there has to be a valid hardship for the lender to approve a short sale. The time to process is relatively quick at least it is with Wells Fargo short sales. Complete approval time took less then 30 days and that included a lender counter on the sales price and a buyer counter of the counter. Not everyone has recovered completely from the market crash of 2008.

If you know someone struggling and they do not want a foreclosure on their credit report please forward this blog post to them and have them talk to me.

At Team Olsewski, we’re dedicated to providing you with valuable information and insights in the changing mortgage environment. For more about other resources to help you manage and grow your business, please contact us.

Coldwell Banker 32675 Temecula Parkway Ste A Temecula, CA 92592
Selling your home? Contact us! (951) 506-5744
Looking for a great home? You can search homes by licking your desired location:
Adelines Farm | Alta Vista | Arbor Glen | Bear Creek | Canyon Lake | Central Park | Chardonnay Hills | Copper Canyon | Corona | Creekside Village | Crowne Hill | De Luz | Four Seasons | French Valley | Glenoak Hills | Greer Ranch | Harveston Temecula | Hemet | La Cresta Murrieta | Lake Elsinore | Lantana | Los Ranchitos | Mapleton | Meadow View | Menifee | Moreno Valley | Morgan Hill Temecula | Murrieta | North Star Ranch | Nuevo | Old School House | Paloma Del Sol | Paseo Del Sol | Perris | Rancho Bella Vista | Rancho Highlands | Red Hawk Temecula | Riverside | Roripaugh Hills | San Jacinto | Santiago Ranches | Serena Hills | Spencers Crossing | Temecula | Temeku Hills | The Colony | The Knolls | The Vineyard | Vail Ranch | Vintage Hills | Wildomar | Winchester | Winchester Creek | Wine Country, Temecula | |Wolf Creek Temecula |
Team Olsewski can also be found through these media:

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Obama Administration Extends Deadline for Making Home Affordable Program

Extension through December 2015 Will Provide Struggling Homeowners Additional Time to Access Sustainable Mortgage Relief and Align End Dates for Key Assistance Programs

WASHINGTON – The U.S. Department of the Treasury and the U.S. Department of Housing and Urban Development today announced an extension of the Obama Administration’s Making Home Affordable Program through December 31, 2015. The new deadline was determined in coordination with the Federal Housing Finance Agency (FHFA) to align with extended deadlines for the Home Affordable Refinance Program (HARP) and the Streamlined Modification Initiative for homeowners with loans owned or guaranteed by Fannie Mae and Freddie Mac. The Making Home Affordable Program has been a critical part of the Obama Administration’s comprehensive efforts to provide relief to families at risk of foreclosure and help the housing market recover from a historic housing crisis. The program deadline was previously December 31, 2013.

“The housing market is gaining steam, but many homeowners are still struggling,” said Treasury Secretary Jacob J. Lew. “Helping responsible homeowners avoid foreclosure is part of our wide-ranging efforts to strengthen the middle class, and Making Home Affordable offers homeowners some of the deepest and most dependable assistance available to prevent foreclosure. Extending the program for two years will benefit many additional families while maintaining clear standards and accountability for an important part of the mortgage industry.”

“The Making Home Affordable Program has provided help and hope to America’s homeowners,” said HUD Secretary Shaun Donovan. “Families across the country have used its tools to reduce their principal, modify their mortgages, fight off foreclosure and stay in their homes – helping further stimulate our housing market recovery. And with this extension, we ensure that the program keeps supporting communities for years to come.”

Since its launch in March 2009, about 1.6 million actions have been taken through the program to provide relief to homeowners and nearly 1.3 million homeowners have been helped directly by the program. The Making Home Affordable Program includes the Home Affordable Modification Program or HAMP, which modifies the terms of a homeowner’s mortgage to reduce their monthly payment to prevent foreclosure. As of March 2013, more than 1.1 million homeowners have received a permanent modification of their mortgage through HAMP, with a median savings of $546 every month – or 38 percent of their previous payment. Data from the Office of the Comptroller of the Currency (OCC) shows that the median savings for homeowners in HAMP is higher than the median savings for homeowners in private industry modifications, which has helped homeowners in HAMP sustain their mortgage payments at higher rates. As a result, HAMP modifications continue to exhibit lower delinquency and re-default rates than industry modifications.

The Making Home Affordable Program has also put into place important protections for homeowners that have helped inform efforts to create standards for the mortgage servicing industry. This includes requirements for mortgage servicers regarding clear and timely communications with homeowners and protections to ensure that homeowners are evaluated for assistance before being referred to foreclosure. The Administration has issued reports on the program every month since July 2009, which provide the most detailed information available about individual servicer efforts to assist homeowners. As part of this report, Treasury issues a quarterly assessment for each of the largest servicers in the program to highlight their compliance with program requirements.

Homeowners seeking assistance with their mortgage payments should remember that there is never a fee to apply to the Making Home Affordable Program. Homeowners can work with a HUD-approved housing counseling agency free-of-charge to understand their options and apply for help. Homeowners should visit MakingHomeAffordable.gov for more information about free resources for assistance or call 1-951-506-5744.

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IRS and California Franchise Tax Board Declare California Distressed Home Sellers Not Liable for Federal or State Income Tax on Short Sales, C.A.R. Announces

Here is a link to some exciting news about the tax ramifications for a short sale in California.

At Team Olsewski, we’re dedicated to providing you with valuable information and insights in the changing mortgage environment. For more about other resources to help you manage and grow your business, please contact us.

Coldwell Banker 32675 Temecula Parkway Ste A Temecula, CA 92592
Selling your home? Contact us! (951) 506-5744
Looking for a great home? You can search homes by licking your desired location:
Adelines Farm | Alta Vista | Arbor Glen | Bear Creek | Canyon Lake | Central Park | Chardonnay Hills | Copper Canyon | Corona | Creekside Village | Crowne Hill | De Luz | Four Seasons | French Valley | Glenoak Hills | Greer Ranch | Harveston Temecula | Hemet | La Cresta Murrieta | Lake Elsinore | Lantana | Los Ranchitos | Mapleton | Meadow View | Menifee | Moreno Valley | Morgan Hill Temecula | Murrieta | North Star Ranch | Nuevo | Old School House | Paloma Del Sol | Paseo Del Sol | Perris | Rancho Bella Vista | Rancho Highlands | Red Hawk Temecula | Riverside | Roripaugh Hills | San Jacinto | Santiago Ranches | Serena Hills | Spencers Crossing | Temecula | Temeku Hills | The Colony | The Knolls | The Vineyard | Vail Ranch | Vintage Hills | Wildomar | Winchester | Winchester Creek | Wine Country, Temecula | |Wolf Creek Temecula |
Team Olsewski can also be found through these media:

Posted in Buying a home after a short sale., Making Home afforable Program, Tax Ramifications of a short sale | Tagged , | Leave a comment

Short Sales vs Foreclosures on a Credit Report

It may surprise you to know that a short sale will typically appear no different on a credit report than a foreclosure. For someone looking to qualify for a home loan, this can be a major issue.

It looks like help is on the way. Watch the brief video below for more information. Contact our office if you have questions and please pass this information along to anyone in this unfortunate situation.

 

At Team Olsewski, we’re dedicated to providing you with valuable information and insights in the changing mortgage environment. For more about other resources to help you manage and grow your business, please contact us.

Keller Williams Realty 27290 Madison Ave. #200 Temecula, CA 92590
Selling your home? Contact us! (951) 506-5744
Looking for a great home? You can search homes by licking your desired location:
Adelines Farm | Alta Vista | Arbor Glen | Bear Creek | Canyon Lake | Central Park | Chardonnay Hills | Copper Canyon | Corona | Creekside Village | Crowne Hill | De Luz | Four Seasons | French Valley | Glenoak Hills | Greer Ranch | Harveston Temecula | Hemet | La Cresta Murrieta | Lake Elsinore | Lantana | Los Ranchitos | Mapleton | Meadow View | Menifee | Moreno Valley | Morgan Hill Temecula | Murrieta | North Star Ranch | Nuevo | Old School House | Paloma Del Sol | Paseo Del Sol | Perris | Rancho Bella Vista | Rancho Highlands | Red Hawk Temecula | Riverside | Roripaugh Hills | San Jacinto | Santiago Ranches | Serena Hills | Spencers Crossing | Temecula | Temeku Hills | The Colony | The Knolls | The Vineyard | Vail Ranch | Vintage Hills | Wildomar | Winchester | Winchester Creek | Wine Country, Temecula | |Wolf Creek Temecula |
Team Olsewski can also be found through these media:

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Buying A Home After A Short Sale

Another home sold by Team OlsewskiRiverside County homeowners are feeling a lot better today.  Point your ear out your front door and listen: you may hear a sigh of relief!  Prices are rising – like crazy in some places – and fewer homeowners are upside down on their mortgages.  The average sale price in Riverside County in June, 2012 was about $219,567.  Twelve months later it was $290,211! So, today’s local real estate market is no longer about ‘how much am I losing?’ but rather about ‘how much equity am I building?’  Almost anyone who bought a home in the past year is probably grinning from ear to ear!

But what about those who didn’t make it through the downturn?  What about those who lost their equity, found themselves upside down and, suddenly, needing to sell?  They pretty much had four options:

  • Move and let the home go to Foreclosure
  • Negotiate a Short Sale with the lender
  • Forget about selling and rent the house
  • Sell and write a check at closing to the lender for the shortfall

Thankfully, not too many people opted for that last option – though it did happen in situations where the shortfall was small and the need to sell great.  And those who successfully rented their property are probably enjoying a nice increase in value now.  People who chose Short Sale or went to Foreclosure, however, have the same question:  how long before I can buy again?

First, understand that the answer is a moving target:  it has shifted over time and probably will continue to shift.  There are also no hard and fast answers as different lenders have different policies and some lenders will bend a bit if interest rates and discount points are high enough.  However, today, the following is typical:

To get a Conventional Loan after a Short Sale:

  • Two-year wait with a 20 percent down payment
  • Four-year wait with a 10 percent down payment
  • Seven-year wait with less than 10 percent down payment
  • Conventional lenders usually look for a FICO score in the 680 range after a Short Sale

 To get an FHA Loan after a Short Sale:

  • Three-year waiting period from the Short Sale closing date
  • Home buyers can get a mortgage with as little as 3.5 percent down

Eligible Veterans can get a VA Loan after a Short Sale:

  • Two -year wait from the Short Sale closing date
  • Can still get in with no money down

There is one snafu that seems to be occurring regularly as homeowners who had to Short Sale apply for new mortgages.  Sometimes the Short Sale lender reports the sale incorrectly to the credit bureaus as a Foreclosure.  This can be a big problem as most borrowers with a Foreclosure on their credit reports must wait seven years before becoming eligible for Conventional Mortgages.

If your last sale was a Short Sale, it is important to keep all of your paperwork from that transaction handy in case you have to prove that it wasn’t a Foreclosure.  It’s also not a bad idea to access your credit report before you begin the buying process to see how the Short Sale was reported.

At Team Olsewski with Keller Williams Temecula, we are experienced at helping buyers with previous short sales get back into the housing market.  And this is not the time to hesitate!  Waiting now may leave you priced out of the market.  Even if you don’t fit the profiles presented above, contact us to learn what it will take to get you back into a house today. Every situation is different so give us a call.

At Team Olsewski, we’re dedicated to providing you with valuable information and insights in the changing Real Estate and Mortgage environment. For more about other resources to help you manage and grow your business, please contact us.

Keller Williams Realty 27290 Madison Ave. #200 Temecula, CA 92590
Selling your home? Contact us! (951) 506-5744
Looking for a great home? You can search homes by licking your desired location:
Adelines Farm | Alta Vista | Arbor Glen | Bear Creek | Canyon Lake | Central Park | Chardonnay Hills | Copper Canyon | Corona | Creekside Village | Crowne Hill | De Luz | Four Seasons | French Valley | Glenoak Hills | Greer Ranch | Harveston Temecula | Hemet | La Cresta Murrieta | Lake Elsinore | Lantana | Los Ranchitos | Mapleton | Meadow View | Menifee | Moreno Valley | Morgan Hill Temecula | Murrieta | North Star Ranch | Nuevo | Old School House | Paloma Del Sol | Paseo Del Sol | Perris | Rancho Bella Vista | Rancho Highlands | Red Hawk Temecula | Riverside | Roripaugh Hills | San Jacinto | Santiago Ranches | Serena Hills | Spencers Crossing | Temecula | Temeku Hills | The Colony | The Knolls | The Vineyard | Vail Ranch | Vintage Hills | Wildomar | Winchester | Winchester Creek | Wine Country, Temecula | |Wolf Creek Temecula |
Team Olsewski can also be found through these media:

Posted in Buying a home after a short sale., Credit Challenges, Foreclosure, Making Home afforable Program, Pre Foreclosure, Short Sales | Tagged , , , , , , , | Leave a comment

Bank of America Exposed.

Bank of America has recently been exposed by a former worker. After years of being stalled by Bank of America about lost faxes, and being told the short is being reviewed the truth comes out. Bank of America and other servicers get paid by servicing loans. If a loan goes away so does their servicing fees they collect.

http://www.huffingtonpost.com/2013/06/14/bank-of-america-lied_n_3444014.html?1371247614&utm_hp_ref=business

The former employees, who worked at Bank of America centers throughout the United States, said the bank rewarded customer service representatives who foreclosed on homes with cash bonuses and gift cards to retail stores such as Target Corp and Bed Bath & Beyond Inc.

For example, an employee who placed 10 or more accounts into foreclosure a month could get a $500 bonus. At the same time, the bank punished those who did not make the numbers or objected to its tactics with discipline, including firing.

About twice a month, the bank cleaned out its HAMP backlog in an operation called “blitz,” where it declined thousands of loan modification requests just because the documents were more than 60 months old, the court documents say.

The testimony from the former employees also alleges the bank falsified information it gave the government, saying it had given out HAMP loan modifications when it had not.

At Team Olsewski, we’re dedicated to providing you with valuable information and insights in the changing mortgage environment. For more about other resources to help you manage and grow your business, please contact us.

Keller Williams Realty 27290 Madison Ave. #200 Temecula, CA 92590
Selling your home? Contact us! (951) 506-5744
Looking for a great home?
You can search homes by licking your desired location:
Adelines Farm | Alta Vista | Arbor Glen | Bear Creek | Canyon Lake | Central Park |
Chardonnay Hills | Copper Canyon | Corona | Creekside Village | Crowne Hill | De Luz |
Four Seasons | French Valley | Glenoak Hills | Greer Ranch | Harveston Temecula |
Hemet | La Cresta Murrieta | Lake Elsinore | Lantana | Los Ranchitos | Mapleton |
Meadow View | Menifee | Moreno Valley | Morgan Hill Temecula | Murrieta |
North Star Ranch | Nuevo | Old School House | Paloma Del Sol | Paseo Del Sol |
Perris | Rancho Bella Vista | Rancho Highlands | Red Hawk Temecula | Riverside |
Roripaugh Hills | San Jacinto | Santiago Ranches | Serena Hills | Spencers Crossing |
Temecula | Temeku Hills | The Colony | The Knolls | The Vineyard | Vail Ranch |
Vintage Hills | Wildomar | Winchester | Winchester Creek |
Wine Country, Temecula | |Wolf Creek Temecula |
Team Olsewski can also be found through these media:

Posted in Bank of America Short Sales, Foreclosure, Loan Modifications | Tagged , , , , , , , , , | Leave a comment