When will we see a recovery in the Real Estate market?

Over the last number of years, I’ve been asked this question countless times.  As such, I wanted to create a blog to get the word out to as many of you as possible.  In our industry, this news is a “game changer”, so please read on. You may have heard of HARP 2 by now; a government program that is aimed at helping homeowners that are backward on their mortgages.  It’s been the talk for months amongst us mortgage bankers.  This special program gives homeowners who have been unable to refinance due to negative equity the ability to refinance at today’s low mortgage rates. We are very proud to be able to add this program to our already large arsenal of mortgage programs.

We can now refinance your property regardless of LTV or Credit Score

• There is no longer a  loan to value limit.  Your home’s current value is irrelevant. If you owe $400,000 and your property is only worth $200,000, we can refinance you.
• Credit Score is  virtually irrelevant.  For this  program we will disregard credit scores.
• You can have up to two mortgage  late payments on your mortgage within the last 12 months.
• No points or fees  available.  We’ll discuss all  options with you.
• If you have a loan  without PMI, then the new loan will NOT have PMI.
• Underwriting has loosened up …especially when it comes to debt-to-income ratios.
• NO APPRAISAL REQUIRED.

The most important thing that I’ve ever been taught in my life was to be the absolute best at what I do.

I know that there are a lot of choices out there in the mortgage industry, but we’ve worked hard to offer you the best possible situation when qualifying for a mortgage.  I also realize that the decision to commit to any particular lender can be a difficult one.  With so many options available and so many programs to choose from, which one is the best for you?  This choice can be further complicated due to the less than favorable lending environment that we’re currently being faced with.

With that said, please know that I feel that Watermark Home Loans offers the best rates and programs available today.  Not only do we have the experience necessary to succeed in this enviroment, but we also have the technology, support, and experience.  Having seen the positive results that we have created in our client’s lives is a great feeling.  I’m pasionate about what I do, and I feel that my work ethic and past success proves this.  My background and degree are in finance.  My team and I have closed well over 1000 loans over the last ten years, and we strive to offer the most competitive rates, while giving the best service possible.

More than ever, people need sound, strategic, dependable advice.  The lending environment has changed radically in the last 5 years, and so have the rules of trying to maintain solvency during this tumultuous time.  Most don’t realize that we’re playing in a new economic landscape and are still playing with yesterdays’ rules.  I’d like to share with you as much knowledge as possible about mortgages and finance to show you how to succeed where many are failing.  The landscape is changing constantly right now, so you have to be able to ascertain reliable information, assimilate it, and move on it.  That’s what we’re here for.

I’m focused on being the absolute best at what we do.  In doing so, I know that we’ll achieve the best results possible for our clients.  I want to personally assure you that our programs, pricing, speed, and dependability are the best that the industry has to offer right now.  If you come on board with us, your chances for success multiply exponentially.

I want to guarantee you our promise to do the very best job possible.  We have an A+ rating with the BBB.  And it’s important to me that we maintain that rating.  If you’re not happy, we’re not happy.  I’ve looked at well over 100 companies and examined the important factors of each.  I’ve looked at banks, brokers, and warehouse lines, and I know I’ve found the best organization for my clients.

My direct number is 858-217-5363.  My assistant, Stephen or I are always available to answer your calls to address your questions.

Call me nights, weekends, whatever.  Your success is our success.  We appreciate the opportunity.

Nick Vaccaro

I can’t thank you and your team enough!  I have my life back and I am on to the better things that freedom offers in life.

It was 2007 when I found myself in the unemployment line.  After riding the wave of real estate success I had debts that were typical of someone spending money to make money.  I also had the debts of someone that was spending money because they were enjoying the fruits making money.  To make things worse I went through a bitter divorce that cost more than I had left.  I watched my debt pile up as I lost everything; houses, cars, toys, stuff.  Worse yet, I watched as my dignity slipped away as well.  I was
truly living the country song.

The counsel you provided and the service your team backed me with in a really tough time was invaluable.

Helping someone recover  from tens of thousands of dollars of debt is a good service you provide, and you earn every penny.  Giving someone a life strategy, a gleam of hope, and dignity is priceless…and you never sent a bill.

Pure gratitude,

D. Y.

California

By Stephen Smith

I want to address a simple concept before I begin my article.  The reason you work for a living is to make money so in turn you can pay your bills, buy food, keep a roof over your head and hopefully enjoy life.  Therefore, it’s somewhat illogical to believe that ANY company with the word “Non-Profit” in their name would not have the same goals as to why you work for a living.

Credit Counseling is a viable debt relief option for those consumers that are having minor issues with their debt.  However, if a consumer is having real financial issues, then the option of Credit Counseling falls short of a debt settlement program because it is based on paying back the full amount of debt owed plus additional fees.  More times than not, this doesn’t afford the individual enough payment relief to keep them out of a very bad situation.  In fact, recently I spoke to a bankruptcy attorney who told me that many of his clients had been involved in a credit couseling program prior to filing bankruptcy.  Unfortunate.

A debt settlement program is focused on settling the debt for less than what is owed.  If ever a consumer finds themselves in real need of assistance with their debt, then reducing an interest rate is not going to help because the monthly payment will still be too high to manage. A debt settlement program is going to give the consumer the lowest possible monthly payment because it is based on settling the debt at a much lower percentage of what is owed.  Instead of paying multiples of your debt due to compounding interest, a reputable company can settle your debt for under 30-40 cents on the dollar.

How do these programs affect your credit score?  Any program you choose is going to have some type of affect on your credit.  Credit Counseling will not necessarily affect the actual score, but that does not mean it has no affect on your credit report.  While in a Credit Counseling program you will not be able to use the cards and it will show up on your credit report as a third party paying your debts.  This is an immediate red flag to the banks and the consumer will most certainly be denied a loan or credit.  After you have finished the Credit Counseling program there will still be a code on those debts that were in the program.  Debt settlement does affect your credit score
because you will be missing payments, but as the debts are paid off the score will gradually move back up.  Furthermore, debt settlement is improving your overall financial position by paying these debts off, saving you money and increasing your Debt-to-Income Ratio. (Please understand that a credit score is not the only thing that determines a great financial position with banks or in life.)

“I am the biggest proponent of having a great credit score, but you can have my credit score if it means I can save money, time and now have the ability to replenish my emergency fund or retirement account.” “A credit score does not buy food or keep a roof over my head… Cash is King and you can never have enough of it on hand.” In addition, banks are willing to loan to a consumer with a lower credit score if that means they have a better Debt-to-Income Ratio and other contributing factors.

Facts about Credit Counseling:  Credit Counseling is supported financially by the credit card companies themselves. While the idea of a “non-profit” helping people in financial need sounds good and gives you a warm fuzzy feeling inside, the facts are these organizations are subsidized by credit card companies and serve their purposes first, not consumers.  So when a consumer is speaking with a Credit Counseling Company whose interest are they really serving? This financial kickback is known in the industry as “Fairshare” and the compensation percentage ranges from 3% to 6% on each debt brought into the program.  The good news is that it has come down from the original amount of  12% to 15% compensation.  However, since the percentage has come down the Credit Counseling companies need to put more clients into their programs to maintain business when the consumer actually needs a debt settlement program or bankruptcy.

One of the biggest issues with credit counseling from a lenders standpoint is that it becomes virtually impossible to qualify for a home loan, once you’ve been through this type of a program.  Buyer BEWARE!

This is how you end up with a situation where only 21% to 25% of people who use Credit Counseling ever successfully complete the program.  Moreover, most consumers that enroll in a Credit Counseling program will end up filing for bankruptcy after just 6 months…why?  Usually the reason is that it’s too little help for their debt situation and it becomes too late to do anything else.  Therefore, these “non-profits” are giving the majority of people they counsel the worst possible advice, and the advice they are giving is exactly in line with the interests of the group who subsidizes them… the big credit card companies.

I understand that Credit Counseling is less drastic and may not have the same immediate effect on your credit than debt settlement or bankruptcy, but statistics show us that it is a false sense of reality because most consumers never complete the Credit Counseling program.

As I mentioned before, if you have a lot of savings and a significant amount of disposable income then credit counseling could be a good choice for you because your situation is in need of just minor relief.   This also means you will probably be one of 21% to 25% who actually finish the program.  However, if you do not have those things and you find yourself struggling to make minimum payments, not seeing yourself getting ahead or missing payments then I suggest looking at the alternatives of debt settlement or bankruptcy.  A lot of people do not want to file or can’t file bankruptcy.  Debt settlement is the last option before bankruptcy.

Any reputable company will give you many options to look at.  Unfortunately, the credit couseling industry as well as the debt settlement industry have been inundated by companies that may not  present you with your best options.

If you’re looking at a debt settlement company,

1.  Find a company that doesn’t charge any up-front fees.

2.  Find a company that only gets paid after they settle your debt.

3.  Find a company that doesn’t have ANY cancellation fees.

This way, as a client, you always know the company you’re working with isn’t taking any debt they can, and IF they take your debt, then they know they’ll be able to settle it for you.  Remember:  credit counseling doesn’t take all debt, AND you have to be approved for it.

Thanks for reading,

Stephen Smith

858-668-7345

ssmith@watermarkhomeloans.com

Information was based on The Philadelphia Federal Reserve 2005 report by Robert Hunt “Whither
Consumer Credit Counseling”

http://www.philadelphiafed.org/research-and-data/publications/business-review/2005/q4/Q4_05_ConsumerCounsel.pdf

How To Avoid a Debt Settlement Scam

If you’re thinking about using a debt settlement company, read this first.

By Stephen Smith

How do you know that the debt settlement company you are speaking with can actually perform the job you hire them to do for you?  This is the million dollar question that you will ask yourself when talking to a debt settlement company.  Most likely, you’re already in a tough situation with your creditors and the last thing you want to do is compound the issue with a debt settlement company that can’t accomplish the job or even worse, it’s a scam.

Hiring a debt settlement company should be like hiring any other professional service.  It is important to do your homework and research before making a commitment.

Would you hire an attorney to represent you without first feeling comfortable with his knowledge of the law?

Before I begin with my tips on how to avoid a potential bad debt settlement company, I wanted to address a few things.  First, the government has implemented regulations for debt settlement companies to follow as of October 2010.  This has done a lot to clean up the industry and get rid of the bad seeds.  To date, an estimated 85% of Debt Settlement businesses have left since this time last year.  However, this does not mean there are no longer any bad seeds in the industry.  The problem now is that some of these companies cannot adequately represent their clients because they lack experience and knowledge.  Second, people need to understand that it probably took years to build up their debt.  Therefore, it will take time to pay off the debt.  How can you expect a company to just snap their fingers and magically make it disappear?  We have all heard horror stories about what happen to people that were working with debt settlement companies.

“If someone says they were “ripped off” or “scammed” I believe they didn’t fully understand how the process works or didn’t

take the time to think about their decision before jumping into the program.”

A good company will take the time to understand your situation and they certainly should not be pushing you into anything.  If you do feel pressure from the consultant then I would choose another company to handle your debt settlement.  All, credit card and collection companies will settle for less than owed.  The reason they initially say they don’t is so that everybody does not come to them requesting to settle for less (If somebody owed you money, you’re not going to immediately give in and take less money are you?)  On the other hand, there does come a point in time that you would be willing take less if that meant not getting zero…right?  The trick is to get the best settlement possible.  Some companies are able to accomplish this, while others are just out to make a buck.

Please understand that settling your debts for less than owed is a lot different from credit counseling, debt consolidation, and making your minimum monthly payment to the debt.  It is by far the most aggressive way to save money, time; avoid bankruptcy and improving your financial position.  It is the most effective alternative out of the three ways available if you ever do find yourself in need of assistance with your debt.

Any good debt settlement consultant should take the time to educate their clients and explain everything involved with a debt settlement program.  I am always saying “The more information I can provide my client, the easier it will be for them to complete the program and for us to finish the job we were hired to do.”  In other words “Knowledge” is power.

Here are my 5 tips to help educate a person thinking about getting help with their debt and hopefully avoid getting ripped off by a debt settlement company:

1) Ask if they have references, testimonies or Tangible proof they can settle your debt.  Unfortunately, this is a topic that a lot of people don’t want to talk about, but it’s always good to ask for a reference.  If they don’t have references or settlement letters, make sure to ask for testimonies or proof of past work.

2) Read everything and don’t sign or agree to anything until you have prepared a list of questions to ask your consultant.  Remember that the debt going into the program is yours, not the companies and if anything goes wrong you are responsible, not the company.  If the consultant did his or her job there really should only be a few questions to address before signing.

3) Don’t be afraid to ask questions, there is no bad question; accept the one that is not asked.  If your debt consultant avoids a question, then they are probably hiding something (a good debt settlement consultant should want their client to be completely informed about the program and how it works).  I tell all my clients that we have to work together to resolve these debts.  We will do our part as long as you do your part.  In addition, my company and I want to remain a reputable company so we do have something at stake with each and every one of our clients.

4) The three Bs when choosing any professional company is to check the Better Business Bureau and it’s always a plus if the company is accredited with them as well.  If they do have complaints and it’s not a lot, then that should be okay.  Just make sure to check and see if they were they resolved.

5) There is no get rich solutions or quick fixes.  A good debt settlement company will be able to help you with your debt by saving you money, time and most important improving your financial position.  Make sure the consultant displays a genuine concern about your current position and not just about closing the deal.  Also, it’s a good thing to check their financial intellect level.

It is important to do your “homework” and follow my tips above.  This should help reduce the chance of getting taking advantage of by a debt settlement company.  Ultimately you’re looking for financial help and finding the right company can be tough, but the right company will have you debt free and smiling again.

Settling your credit card debt is a legal and aggressive strategy.  The more you know, the more you will feel comfortable with your decision.  I Hope these tips will help you when choosing the right debt settlement company.

Stephen Smith

stephen@americanfpg.com