Strategic Default Monitor – How To Strategically Default

Thursday, September 17, 2015

Preparing for the Loan Modification Process

Steps to a Successful Loan Modification:

  1. Determine your eligibility status before contacting your lender
    • You must have suffered a financial hardship that makes your current. mortgage payment at the current interest rate unaffordable.
    • You must have steady income (other than unemployment benefits) for at least 3 months.
    • Your income must be greater than your expenses (excluding your mortgage).

Monday, September 14, 2015

Debt Defense News Alert

Consumers Will Get $60 Million in Refunds From Debt Collectors 9-12-2015
Two of the nation’s largest debt collectors must refund nearly $60 million to consumers and stop trying to collect on another $128 million in debts, after an action filed by federal regulators Wednesday. San Diego-based Encore Capital Group and Virginia-based Portfolio Recovery Associates are accused of pressuring consumers with false statements and churning out lawsuits using robo-signed court documents by the Consumer Financial Protection Bureau. The two firms and their affiliates purchased a mammoth amount of debt resulting from unpaid bills — together, more than $200 billion in defaulted consumer debts on credit cards, phone bills and other accounts, according to the CFPB. Encore and Portfolio purchase the right to collect on the debts for pennies on the dollar, then attempt to collect the original amount from consumers... Read More at Time Money

Thursday, June 11, 2015

Student Debt Update

Recent news on the student debt movement have brought light to the solutions commonly associated with mortgages and linked them as the potential solution to the growing issue of student debt. Aside from the utilization of the approach of strategic default, increased concern by the government has led to debt forgiveness initiatives targeted to students who had been misled by for-profit colleges across the United States. Check out the link to the Student Debt Monitor page to read more.

Wednesday, May 27, 2015

Got Questions? Get Answers... MD Is Concerned About Her Family's Future And Is Considering Strategic Default

Got Questions?

To Whom it May Concern;

I came across the term 'strategic default' recently while researching the idea of letting my home go into foreclosure. I am not a homeowner struggling to pay my bills, I have excellent credit and not very much credit card debt.  I was looking for a way to avoid bankruptcy if possible.

I purchased my home about 7 years ago.  I was a single mom of 2 young boys and my tiny, 2 bedroom ranch made perfect sense for us at the time.  I planned on making improvements over the years and being able to some day sell my home and make a profit.  However, we are now desperate for a bigger home and unfortunately owe more than I could sell it for.  I have talked to representatives with HARP who say that because I have no trouble paying my mortgage that they can't help me. I have talked to my mortgage servicer and they can't help me either.  I would not qualify for a short sale, deed in leiu or even to refinance.

I struggle with this idea feeling that staying here and paying my mortgage every month is the morally right thing to do but this home no longer suits our needs as a family and is in need of repairs that I simply cannot afford. I met with a "real estate" attorney thinking he could help guide me.  He had never heard of strategic default or the mortgage debt relief act.  He was unable to tell me anything.  He said I was asking a lot of what if type questions he couldn't answer.  He told me because I pay my bills I should simply keep doing that.

I came across your website and it said you offer consultation on such a process and to email you.  So, I would appreciate any information you could provide to help guide me in the path that is right for my family and I.

Thanks for your time.



Get Answers...

Tuesday, April 21, 2015

Latest Foreclosure News 4-16/2015

Freddie and Fannie to Lower Some Fees 4-15-2015
The federal regulator of Fannie Mae and Freddie Mac plans to lower the mortgage fees paid by some borrowers, but the move would amount to only modest help for risky buyers with checkered credit histories. The Federal Housing Finance Agency is expected to announce in coming days changes to fees that Fannie and Freddie charge lenders to guarantee mortgages, according to people briefed on the matter. For those borrowers affected by the changes, the benefits would be tiny, amounting to less than one-tenth of a percentage point. Fannie and Freddie, which back most home loans, will raise fees for other borrowers, like those who buy investment properties, to balance out the cost of the fee reduction. The changes are not expected to have any effect on revenue. Read More at the New York Times

Foreclosure to Home Free, as 5-Year Clock Expires 3-29-2015
The statute of limitations does not halt a foreclosure case that is continuing in court. But in some Florida courts, homeowners’ lawyers have argued that once a foreclosure is dismissed even for technical reasons, the lender cannot refile a new foreclosure to seize the home if the statute of limitations has passed. Still, the lender has some recourse: It can keep a lien on the house that must be paid off if the property is ever sold. The issue is now before the Florida Supreme Court. The lenders’ lawyers have warned in court papers that if the state’s high court sides with the homeowners, “it would spawn a public policy hazard” and dissuade banks from extending mortgages in Florida in the future. Read More at the New York Times

Monday, February 23, 2015

Student Debt Monitor

The Student Debt Monitor page is our newest project dedicated to providing news and information relevant to this rising issue which has been plaguing many young Americans. Aside from the links leading to general articles discussing this topic matter, we will soon be updating with original content which dives into the major concerns, roots of the problem, and the potential solutions surrounding the student debt crisis.

Thursday, October 16, 2014

Latest Foreclosure News 10-16-2014

For thousands of US short-sellers, a big gift 12-26-2014
The Senate’s 11th-hour extension of the Mortgage Forgiveness Debt Relief Act ends on Dec. 31. The federal tax code treats forgiven debt as ordinary income to the borrower, taxable at regular rates. But under an exception that took effect in 2007, qualified home mortgage debt that is canceled by a lender as part of a short sale, loan modification or foreclosure is treated as non-taxable... So how do you know whether your short sale, loan modification or foreclosure is covered by the extension for 2014? The key points you will need to know include: 1. The house securing the mortgage debt must be your principal residence. 2. The maximum amount of debt that qualifies for relief is $2 million ($1 million if you are married filing taxes singly.) 3. Any portion of the mortgage debt forgiven that was used for purposes other than improving or building the house will not qualify for the exclusion and may be taxable. Read More at the Real Deal

Future SHOCK for Older Homeowners: You Won’t Get a HELOC, a Second, or Refi based on your Equity 10-15-2014
The reality is that with the private RMBS securitization market still largely frozen, government lending essentially the only game in town, the prevalent and entirely reasonable fear of “buy backs” among bankers, actions by the Consumer Financial Protection Bureau (CFPB), Dodd-Frank’s impact, new QM rules, and whatever else you’d want to throw in under the category of new and increased pressures on lenders… it should not be a surprise that loans are harder to come by than at any time in recent history. Today, your assets don’t matter when applying for a mortgage… only the amount of income you earn is considered when assessing your ability to repay the loan. That means that today, the fact that you own a home free and clear that’s worth $1 million, by itself, is not going to get you approved for a Home Equity Line of Credit (HELOC), second mortgage or refinance... to get approved for a HELOC, or a second home, not only do you need significant equity, but you’ll also need actual income that’s deemed sufficient to repay the loan… and a glimmering FICO score… like we’re talking 760+… that sort of thing. Read More at Mandelman Matters

Americans face post-foreclosure hell as wages garnished, assets seized 10-14-2014
Many thousands of Americans who lost their homes in the housing bust, but have since begun to rebuild their finances, are suddenly facing a new foreclosure nightmare: debt collectors are chasing them down for the money they still owe by freezing their bank accounts, garnishing their wages and seizing their assets... Using a legal tool known as a "deficiency judgment," lenders can ensure that borrowers are haunted by these zombie-like debts for years, and sometimes decades, to come. Read More at Reuters

Foreclosure Dispute Pits Mortgage Lenders vs. Investors 10-14-2014
Mortgage lenders and housing investors are squaring off in Nevada over a court decision that has allowed thousands of foreclosed homes to be sold for pennies on the dollar, in a case that could have big implications on an already-tight home-loan market across the country. At issue are homeowners associations and the liens they put on properties when a homeowner stops paying dues. Homeowners associations enforce rules in a community and collect dues to maintain common areas and pay for repairs... In a court filing Tuesday, the Mortgage Bankers Association wrote that because of the decision, “mortgage lenders stand to lose millions—perhaps even billions—of dollars in security interests.” Read More at The Wall Street Journal

Fair housing group challenges U.S. Bank over foreclosure upkeep 10-8-2014
On Wednesday, the National Fair Housing Alliance accused the Minneapolis-based bank of racial discrimination in its upkeep of foreclosed properties in Minneapolis, renewing a debate over who is responsible for maintaining foreclosed properties — and to what extent. This was the housing group’s fourth announcement of claims against U.S. Bank, and its complaint now covers neighborhoods in 19 metro areas across the country... The group has been aggressively pursuing charges of racial discrimination in foreclosure upkeep for the past few years. It has filed claims with the U.S. Department of Housing and Urban Development against Bank of America and Wells Fargo. Read More at Star Tribune