Strategic Default Monitor – How To Strategically Default

Thursday, May 26, 2016

NYS States Mortgage Assistance Program


The New York State Mortgage Assistance Program (NYS-MAP) provides home-saving loans to families who are at risk of foreclosure. By averting foreclosure, the program also protects surrounding property values and preserves neighborhood stability.

Program Overview

NYS-MAP is a foreclosure-prevention loan fund that helps homeowners who are unable to get assistance from other sources.

Tuesday, May 3, 2016

Latest Foreclosure News 5-3-2016

Ocwen responds to National Mortgage Settlement foreclosure holds 4-28-2016
Early Thursday morning, Joseph Smith, the monitor of the National Mortgage Settlement, announced that Ocwen Financial was not in compliance with one of the performance metrics of the National Mortgage Settlement and prohibited the nonbank from taking foreclosure actions on more than 17,000 loans. According to Smith’s office, Ocwen “was delayed” in implementing its Corrective Action Plan for the failure of Metric 31, which relates to the mortgage servicer sending a loan denial motivation to a borrower, because of “difficulties in resolving the technical issues that led to the original fail.” Smith’s office said that because of those issues Ocwen must place 17,496 loans that "could have been affected" by this issue on foreclosure hold... Read More at the Housing Wire

Ocwen foreclosures frozen after National Mortgage Settlement compliance failure 4-28-2016
Less than one day after posting a massive loss for the first quarter of 2016, the nonbank has run afoul of the terms of the National Mortgage Settlement and is now forbidden from taking foreclosure actions on more than 17,000 loans. According to Joseph Smith, the monitor of the National Mortgage Settlement, Ocwen is not yet back in compliance with one of the performance metrics of the National Mortgage Settlement that it failed in the second half of 2014. Smith’s office announced in October that Ocwen failed metric 31, which tests whether the mortgage servicer, Ocwen in this case, sent a loan modification denial notification to a borrower that included the reason for the denial, the factual information considered by the servicer in making its decision and a timeframe by which the borrower can provide evidence that the decision was made in error... Read More at the Housing Wire

Friday, April 8, 2016

Greece Economic Crisis : Pros and Cons of Debt Forgiveness

A recent Bloomberg article provided, in my opinion, the most succinct analysis of the pros and cons of debt forgiveness.

Bloomberg reported on the economic plight of Greece. Greece basically "strategically defaulted" on its debt due to it's inability to pay its creditors. Greece fell victim to Europe's debt crisis when Wall Street imploded in 2008. All of the risky investments finally caught up to Greece like so many other countries, companies, and individuals. A group of European countries tried to help Greece (to keep it from destroying the European Union) by providing several bailouts to Greece totalling, at least, $264 billion. At the same time, the International Monetary Fund (as a condition to lending money) has been pushing for the forgiveness of Greece's debts by its creditors.

The article briefly outlined the benefits of debt forgiveness as follows:

Wednesday, January 13, 2016

Strategic Default Alert

2 factors driving the trend toward strategic defaults for student loans 1-13-2016
The term “strategic default” was added to the financial glossary during the housing crisis of 2007-08. It meant homeowners made deliberate decisions not to keep making mortgage payments because they believed foreclosure would ultimately cost less than continued ownership of underwater homes. Now, the trend is gaining ground among recent college graduates with student loans--but it is impacting certain types of students and schools far more than others. Nationally, about 14 percent of all federal student loans default within three years after students leave college. A default generally is declared when a student fails to make timely payments for 270 days, and the consequences are severe including wage garnishment, loss of Social Security benefits, and confiscation of federal tax refunds. Read More at BenefitsPro

Short sale tax break on verge of being extended until 2017 12-18-2015
Homeowners who had short sales in 2015 are about to get big break on their taxes, thanks for a massive federal spending bill that’s about to be signed into law by President Obama. The Mortgage Debt Forgiveness Act was set to expire at the end of 2015, and without an extension, any mortgage forgiveness achieved in a short sale would have been counted as income for homeowners whom banks allowed to sell their homes for less than the amount of their mortgage during 2015. But an extension to the Mortgage Debt Forgiveness Act was included in the fiscal 2016 federal appropriations and tax relief bill, which passed both the House of Representatives and the Senate on Friday. Read More at the Housing Wire

Thursday, December 10, 2015

How to Prevent Loan Modification Denial

Strategies to Prevent Loan Modification Denial:

As the borrower, you must be involved in the loan modification process at every stage of the process. The #1 reason for a loan modification denial is the lenders claiming that you did not send complete and accurate documentation in a timely fashion. You must keep detailed and organized records of all communications to and from the lender to prove you provided the lender with all of the documents required for a loan modification application. You must always keep in mind the following strategies to prevent a loan modification denial.

Sunday, November 8, 2015

Using a Mind Map

I began using mind mapping software in 1998. A mind map is a visual outline of my thoughts...of my ideas on any subject matter. The mind mapping software provides tools to help connect and to help organize my brainstorms. The underlying premise of mind mapping software is simple. It is a graphical outlining tool. A mind map project always begins with the main concept. The software allows me to create an icon of my main concept. I can then create "branches" of additional ideas that "grow" from the main concept. For example, I am working on an online tool that can assist homeowners with applying for a loan modification. The name of my project is "Loan Mods Made EZ". This is how the mind map may start out: 

As you can see from the Loan Mods Made EZ icon I created connecting branches of elements of what I believed to be necessary to move the project forward. Most important, I efficiently captured my thought process. There is no limit to how large a mind map can grow. The mind mapping software allows me to connect files, videos, web pages, and pictures. Most mind mapping software contain useful tools that allow one to create, connect, and organize all of the information needed to develop an idea or concept. I have been using visual mind since 1998 however there are many great mind mapping products to choose from.  
Needless to say that using mind mapping software does not necessarily equate to launching a successful business. I have a few mind maps that...let's say...have been sitting on my hard drive waiting to be re-opened.
The tool has allowed me to better organize my priorities. My many mind maps act as reminders of my desired objectives. The maps keep me focused on the purpose of my daily grind. The maps have helped me maintain perspective during some of the most difficult times in my life. The maps have contributed to my successes. A mind map is simple to create yet a powerful boost for growing your empire.   

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).