REAL Talk with ROBERT ALDANA

Rates & terms we are getting for our client's loan modifications

Ever wonder what type of rates and terms lenders have agreed to for loan modifications? Well, we have the stats. And more importantly, we did not buy or research somewhere on the Internet for these stats, we have these stats based on REAL CLOSINGS that we have been able to negotiate. Here are a few:

Excellent Article on Loan Modifications & what Lenders are (not) doing....

By Pete Carey

Posted: 07/08/2009 07:01:15 PM PDT

Despite efforts by the federal government and banks to stop the home foreclosure disaster, frustrated borrowers are still battling red tape and delays in their attempts to negotiate lower payments, even as hundreds of thousands of them lose their homes every month.

The TRUTH About Foreclosures - Why Families are being locked out of this opportunity

Today, foreclosures are on the rise and more people will lose their home this year and for a few more years to come if lenders keep giving band-aid loan modifications of 1-2 years.

This brings up another issue; Homes that are being foreclosed on are selling at tremendous prices which means a lot of opportunity is out there, yet it is not reaching those who should be able to take advantage of these opportunities. Why? Because they are being sold to investors who are coming in and paying cash or buying with large down-payments and turning these properties into rentals which eventually drives property values down. What's even sadder is all the families who want to be homeowners but can't because they can't compete with investors who have big pockets. But these big pockets are not getting lenders more dollars, they are just closing quicker and getting the loans off the lender's books faster. It is common knowledge in the industry that investors can buy a property for much less than a family who wants to buy a property as a primary residence because they have cash or large downpayments.

Think that lenders care about you? Think again. There has to be a solution for this by putting a limit on how many REO properties can be sold to investors. This would mean that lenders still get true value for their properties, only these properties are now going to proud homeowners who will care for and maintain their home while realizing the American Dream and maintaining property values which helps everyone in the long run.

OK, could it get any better? How about THIS one?!

Yesterday we just signed off on a client who came in about 2 months ago struggling to make their payment of $2,799 plus taxes and insurance. Their rate was 7.5%. So guess what we did?!

Business Week Makes Their Real Estate Predictions

A somewhat interesting story and BOLD predictions by Business Week Magazine. Some good points, but overall I have to differ with this article. I believe, and the real life stats are telling us that we may be close to the bottom in many markets and already AT the bottom in others. I am not kidding and I am not being a real estate agent saying, "duh, it's a great time to buy a house".

Oh, My.... How about this one?

OK, here is one for the ages. Client has a four-plex with a loan of $599,181 and a monthly payment of $5,186. They are receiving $4,788 per month in rents so they have a negative of $398 which isn't bad, except with these tough times every dollar is tight.

We just negotiated a principle reduction of $119,422 and a new payment of $2,050. So with the monthly rent they receive of $4,788 per month, they are now making $2,738 by keeping their property. This is an investment property with no late payments. Almost to good to believe, huh? Well, believe it!

When members of the police department visit us to help them with their modifications and members of the real estate industry do the same and send us their clients, that HAS to say something.

I love my job! Not always, because sometimes it can be tough, but at the end of the day I LOVE my job!

WCR - Still one of the best organizations in real estate

I just finished speaking at the WCR Meeting at SCCAOR and I have to tell you, WCR still is one of the best real estate organizations out there. It was great to speak to such a wonderful group. Glad to see real estate is alive and well! This market is turning, just take a look at the inventory of Pending Sales versus Active listings. Many areas are 50-80% Pending. Watch the market, things are changing and happening right before our eyes.... Exciting....

Another beautiful loan mod!

Gosh, I just love it when this happens. Client has been unable to make payments for 10 months and finally received a modification with almost $2,000 of monthly savings, 20% principle reduction and property taxes that were late paid by lender without adding it to their loan amount. YEAH!

New foreclosure rules to start Monday

Here is an article worth reading that addresses the efforts being made by Government to curb the foreclosure mess we are in, click here to read it.

It all sounds good, but will this one work? I applaud the Government for wanting to do something, because I know that they want this to end, but doesn't it seem like every month a new Government program is coming out to help with this crisis that starts with a lot of excitement and anticipation only to lead to another failure with banks really not participating?

Time to play hardball. Plain and simple, lenders have to be more accountable. They need to stop giving everyone lip service and start really being part of the solution. Right now they continue to be part of the problem and this has to stop.

Come Join Me for Lunch & Let's Talk About Short Sales & Mods

This coming week, on Wednesday, June 17th, 11am-1pm I will be speaking for one of my favorite organizations, The Women's Council of REALTORS in San Jose at the Santa Clara County Association of REALTORS' Training Room on the topics of Short Sales and Loan Modifications. Should be a good one! If you are interested in attending, please contact the following individuals:

I LOVE Wachovia!

If anyone out there knows anything about handling short sales and loan modifications, it is Wachovia. They could/should teach a class on how to handle them efficiently, smoothly and professionally. You get the feeling that you are working with a real person making logical decisions and not some kid who takes pleasure in playing video games that focus on hurting other people. If you have done a short sale or loan modification, you would understand what I mean!

Hats off to you Wachovia for raising the bar. Here is to hoping the rest of the industry follows you closely!

Pic of the day....

Baby Madi looking happy & posing for the camera....

2 MORE Awesome Mods, great way to start the week!

JUST IN TODAY, 2 MORE - Just got a mod approval with $1,500 monthly savings and almost $100,000 principle reduction AND another one with about a $2,500 monthly savings! To date we have saved families approximately $1,500,000 in payment savings alone. Find me another company that does HALF as many loan modification approvals than HRCS in Northern California....

Gotta love it!

2 more AWESOME MOD APPROVALS

2 New MOD Approvals:

1. Chavez Family - Savings of over $1,800 per month and 20% reduction in principle reduction.
   
2. Avala Family - Savings of almost $2,000 per month and 20% principle reduction.

The best part is when the families come in jumping up and down and crying because they get to keep their home at an affordable payment. Now over $1,400,000 in payment savings alone for our clients - Now THAT'S what I'm talking about!!!!

OK, time for accountability on EVERYONE'S part

OK, it is time for EVERYONE to be accountable. This includes consumers. Here is one for the ages.

A few months ago a client came to us for a loan modification. After a couple of months or so we negotiated a good loan modification and like all loan mods, the lender was to send the documents straight to the client for signatures. Well, once the mod was approved, we called the client to let them know that the documentation was on its way in the mail but for some reason, the client would not return our call.

Perfect Example of how much of a mess lenders are....

Here is a perfect example of how much of a mess that lenders are:

About 30 days ago we started doing a loan modification for one of our clients who had a loan with Washington Mutual, WAMU. After about 2 weeks into the process, they received a letter from WAMU acknowledging that HRCS (my company) had contacted them and was attempting to negotiate a loan modification and just wanted to make sure that the client knew about it.

Is it a good time to buy? How can I know if the market has hit rock bottom?

The question everyone is asking, when will prices hit rock bottom? Read my report on "The State of Real Estate" to find out by clicking here....

Who's Scamming Who?!

In this market there are a lot of desperate people seeking help and just as much scammers coming out of the woods looking for someone to take advantage of. I thought I had seen it all, but unfortunately everyday I see and hear about something lower than the latest scam as if there was a contest to see who can scam who the fastest and easiest?

The latest scam involves the actual lenders themselves who contact borrowers....

A pic for today

Spent the day at home with this....