Provided By North American Title Company
Source Economic Focus
There are many circumstances that could lead to an unavoidable default, job loss and illness head the list. One might categorize these as involuntary defaults. In years past these defaults were infrequent and lenders were prepared to absorb the losses.
Today, lenders are having to grappling with an on slot of "strategic defaults" in addition to involuntary foreclosures and REO inventory
The "strategic default" is a voluntary action taken by borrowers who do not wish to continue paying their mortgages and the lender will not take a "deed-in-lieu of foreclosure."*
Scenario 1
Wing it and hope the lender lets property go through foreclosure without repercussions, except for the credit dings.
Scenario 2
Borrowers who have placed seconds on their properties may find themselves in a real fix. Many, seconds contain options for deficiencies judgments should the borrowers elect to default on their first and second. The borrower may be liable for the shortfall between the amount of the original loan(s) plus cost and the proceeds from the foreclosure or REO sale, likely sold at a fire sale price. In some jurisdiction this is perfected by the lender through a "deficiency judgment."
Scenario 3
In recent years many well intended borrowers obtained financing with a "stated income" loan application. This type of loan did not require verification of income or assets. The borrower's representation was taken at face value. If one needed a little more income to qualify the temptation was great to fudge the figures.
The catch is, if a borrower fudged on the facts the lender may have the option to claim misrepresentation of material facts (fraud) and take the borrower to court. While this is time protracted and expensive, lenders have been known to take this course if the borrower has sufficient assets available.
A Word of Caution
Scenario 1 is going to take some skin off one�s credit worthiness, scenarios 2 & 3 spell trouble. Measure the consequences carefully before electing the �Strategic Default� course, the waters are getting rough.
*Deed-in-lieu is a deed given by a mortgagor (borrower) to the mortgagee (lender) to satisfy a debt and avoid a foreclosure. It is also called a voluntary conveyance.
Thursday, July 1, 2010
Tuesday, June 29, 2010
Automating Your Updates
Written By Joseph Bridges
Provided By Susan Holt, Old Republic Home Protection
Consistently updating your social networking with interest-piquing posts is a sure-fire way to grow your network with motivated clients who want to do business.
Far too often, as we get busy with daily activities from meeting new customers to putting out fires, it can be a challenge to consistently update your network with valuable information.
Keeping your social network growing and craving information is essential to success. The best way to do this is by automating your updates.
With automation you can stay in the conversation even while you are at an office meeting, broker tour, or at a listing appointment. One of the most powerful tools for automating your status updates is the free tool of FutureTweets (http://www.futuretweets.com/). With this program you can schedule out all of your updates for the month in minutes.
We invite you to consider the following key methods when automating your updates to get the most value from FutureTweets.
Time of Updates - Don't schedule all of your updates to be released at the same time. Put some variety in place by having some be released at 8:32 a.m., 8:15 a.m., etc., as the point is for it to appear that you are doing the updates yourself.
Ask Questions in Your Updates - When you ask questions in your updates your network will feel compelled to respond. Questions will get the most active people in your network to engage in conversation.
Schedule out at least a week - The point of automating your updates is to give you leverage. Scheduling out a minimum of one week at a time will free your time up from daily updates and let you see your network grow.
Automating your network is one of the easiest and most efficient ways to get more from your social networking activities.
Provided By Susan Holt, Old Republic Home Protection
Consistently updating your social networking with interest-piquing posts is a sure-fire way to grow your network with motivated clients who want to do business.
Far too often, as we get busy with daily activities from meeting new customers to putting out fires, it can be a challenge to consistently update your network with valuable information.
Keeping your social network growing and craving information is essential to success. The best way to do this is by automating your updates.
With automation you can stay in the conversation even while you are at an office meeting, broker tour, or at a listing appointment. One of the most powerful tools for automating your status updates is the free tool of FutureTweets (http://www.futuretweets.com/). With this program you can schedule out all of your updates for the month in minutes.
We invite you to consider the following key methods when automating your updates to get the most value from FutureTweets.
Time of Updates - Don't schedule all of your updates to be released at the same time. Put some variety in place by having some be released at 8:32 a.m., 8:15 a.m., etc., as the point is for it to appear that you are doing the updates yourself.
Ask Questions in Your Updates - When you ask questions in your updates your network will feel compelled to respond. Questions will get the most active people in your network to engage in conversation.
Schedule out at least a week - The point of automating your updates is to give you leverage. Scheduling out a minimum of one week at a time will free your time up from daily updates and let you see your network grow.
Automating your network is one of the easiest and most efficient ways to get more from your social networking activities.
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