Where can I buy a copy of Mangled Mortgage?

Right now, the only place to buy it is right here. Email info@mangledmortgage.com and you’ll get a reply with easy payment options.  Books start shipping the week of March 9th.

Someday, you may be able to find it on the big online shops.  Until then, this is the Mangled Mortgage shop.

Mangled Mortgage is a book about foreclosures, short sales, and loan modifications written by someone who lives and breathes mortgage challenges every day.  Jon Sterling works in real estate sales Southern California, where he moved specifically because of the housing crisis.  Working in some of the most challenging markets in the United States, Jon’s team provides a wealth of experience and perspective for today’s real estate market.

Foreclosures are gone for good

Hardly.

Fannie Mae and Freddie Mac have both extended their eviction moratorium to April 1st.  If history is any guide, this will not be the last extension as the government works with the banks to straighten-out the housing mess.

The “freeze” on foreclosures began last fall when Bank of America, Chase, Citigroup, and Wells Fargo all put a halt to their new foreclosure filings.  The plan was two-fold:  The banks were waiting to see if they would be able to recover some of their losses with bailout funds, and they were buying some time to contact their mortgage customers who were in default to see if loan modifications would be a better solution.

From the first round of loan modifications, over half are in default six months later.  It’s safe to assume history will repeat itself here.  Many of the loan modification customers I have encountered are using the loan modification as nothing more than an excuse to stay in their house for free for a few more months.  They had no intention of paying before the modification, and they have no intention of paying now.  Let’s hope that attitude belongs to the minority of loan modification customers.

The big variable this week is the bankruptcy judges’ ability to “write down” the loan amount to make the loan affordable for a homeowner so he/she can avoid bankruptcy.  This is power the judges did not have before this week.  While it may seem like a good idea on the surface, the impact will be far-reaching.  Basically, this gives judges the power to decide the investor for the loans are having their equity in their investments reduced without any input from the investor.

Mangled Mortgage tells you everything you need to know about foreclosures, short sales, and loan modifications.  Order a copy today!

Order a copy of Mangled Mortgage today!

For a copy of Mangled Mortgage:  Everything you need to know about foreclosures, short sales, and loan modifications, the only place to buy it is right here.

Send a message to info@mangledmortgage.com with BOOK in the subject line and I’ll send you a choice of payment options.

This site is designed as an informational place and those order forms are so cheesy looking.  Don’t get me wrong…I still want you to buy the book.  I just want to flirt with you before we get married, so to speak.

-Jon

Tips for the hardship letter

The hardship letter needs to have a few basic elements.   The obvious ones are the loan number, names of the borrowers, and a description of the hardship.  You don’t have to be a literary genius to create your own hardship letter, but there are ways to improve the effectiveness of the letter.

Tip #1

Instead of simply stating the facts of the financial hardship situation, you want to evoke emotion in the reader.  Remember, the reader is the loss mitigator and that person’s job is to make sure the lenders and the investors backing the lenders limit their losses.  If they can feel some sympathy for your situation, you have a much better chance of getting the short sale or loan modification approved.

Tip #2

If the financial situation of the borrower is looking grim and they might be headed toward bankruptcy, mention that.  Any mention of the word “bankruptcy” will create a sense of urgency with the loss mitigator.  If bankruptcy is not a possibility, don’t waste your time trying to bluff.  It isn’t honest and you get into a gray area that includes a crime called  fraud.

Tip #3

Give specific examples of things that have been done to help remedy the hardship situation.  The lender needs to understand that you are experiencing a real hardship, and not just trying to game the system.  The short sale and loan modification processes are complex and thorough to be sure each situation is legitimate.

For more tips and information on the housing mess, check out my book Mangled Mortgage. Email info@mangledmortgage.com.

Foreclosure Moratorium

The country’s largest banks have put a moratorium on new foreclosures…for the next few weeks.

Wow.  A few weeks.  That should stop the flood for sure.

Wells Fargo, Chase, Bank of America (including Countrywide Home Loans), and Citigroup are all waiting to see what the Obama administration will do before they move forward with any more foreclosure filings.

Much like the loan modification efforts, industry professionals and economists believe this is just delaying the inevitable flood of foreclosures.  The programs unveiled so far as a result of the stimulus package are too complex, too little, and too late.

Short Sales

I recently saw a short sale listing being advertised and there was an exterior photo of the house.  Parked in the driveway was a BIG speedboat.  The seller had refinanced the mortgage several times, had no equity (spent on a boat, perhaps?), and needed to sell.

Many people are not even being subtle about abandoning their obligations these days because it is commonplace to do so.  As long as borrowers are allowed to shrug and walk away, there will continue to be major challenges in the housing industry.

There are also people with legitimate hardships.  Those people did not necessarily do anything wrong; they are victims of the situation.  Because of the irresponsible actions of others, these borrowers are feeling the financial pain.  It is a basic economic law:  As supply increases, demand decreases.

As the number of homes on the market increases, the demand for all the homes on the market decreases.  As the demand decreases, prices adjust downward.  With the glut of foreclosures on the market from the over-leveraged homeowners and the “shrug and walk away” people, those who made responsible financing decisions are at risk of suffering the consequences of too much inventory and decreasing home values.

For more information on foreclosures, short sales, and loan modifications, or to order a copy of Mangled Mortgage, send a message to info@mangledmortgage.com.