Bank of America remodified mortgages

Bank of America announced today they have modified more than 600,000 mortgages since January, 2008. The numbers represent $215 Billion to help refinance these mortgages. The total’s include those they purchased in the Countrywide Home Mortgage acquisition.

But they represent a failure.

These are some pretty powerful numbers but they are a bit disappointing. Why, because back in January Bank of America promised to modify 630,000 to avoid foreclosure. Reading the comments of the post I did back then shows a great deal of incompetence and neglect.

Add to that the disappointment for families that were told the company was going to rework many more mortgages than they actually did you can see the frustration emanating from their customers.

So Bank of America. Congratulations for solving 600,000 poor delivered mortgages. Now step up and fulfill your promises made to your customers.

The renegotiated loans were done through its own programs and the government’s Home Affordable Modification Program, the bank said.

Bank of America has concluded more than 450,000 loan modifications since January 2008 under its own programs. That includes about 225,000 modifications so far this year.

Through the government program and others, Bank of America said it has provided $215 billion to refinance existing mortgages. via the AJC

Understanding Options for Homeowners.

• Refinance: If you have enough equity in your home, your new mortgage could pay off the old loan along with any late fees and attorney fees. If you decide to pursue a refinance, remember to shop around for the best terms and compare the Annual Percentage Rate (APR).
• Reinstatement: Your lender may agree to let you pay the total amount you are behind, in a lump sum payment and by a specific date. This is often combined with forbearance when you can show that funds from a bonus, tax refund, or other source will become available at a specific time in the future. Be aware that there may be late fees and other costs associated with a reinstatement plan.
• Forbearance: Your lender may offer a temporary reduction or suspension of your mortgage payments while you get back on your feet. Forbearance is often combined with a reinstatement or a repayment plan to pay off the missed or reduced mortgage payments.
• Repayment Plan: This is an agreement that gives you a fixed amount of time to repay the amount you are behind by combining a portion of what is past due with your regular monthly payment. At the end of the repayment period you have gradually paid back the amount of your mortgage that was delinquent.
• Loan modification: This is a written agreement between you and your mortgage company that permanently changes one or more of the original terms of your note to make the payments more affordable. The President's plan also offers loan modification.
• Best bet is to call your mortgage company and keep the communication open. The last thing you need is to go into foreclosure on your home. I am a Certified Distressed Property Expert, there is a solution for you. Call 630-464-2633. Beth
  

This is a Buyers delight.

Consider the following…

1. The world markets got the crap scared out of them when Dubai essentially defaulted on a very high number of loans… telling their lenders that they would not be making interest payments for at least 6 months. The result of this default has driven risk-averse companies and individuals into traditional safe havens, and one of those safe-havens is US Treasuries. Specifically, the ten (10) year Treasury note. The effect of spooked investors moving to “safe” havens has been to drive down residential mortgage interest rates.
2. Since mortgage rates are at their historic lows, as of this writing they were at 4.78%, the “affordability” index moved, such that more homeowners can now afford higher priced homes; or for many first-time home owners they now can qualify to make the payment on a loan.
3. The Home Buyers Tax Credit has just been extended and expanded. This continues the window of opportunity (through April 30th 2010) for real estate investors to purchase, renovate and sell homes to buyers looking to take advantage of this credit.
4. The continued high rate of foreclosures continues to provide a great number of quality deals to real estate buyers and I predict that this trend will continue for the foreseeable future.

Come See Villa Taj......

f you’ve ever wanted to take a closer look at the Gold Jerusalem stone, 4,000-pound grand entrance doors to the home at 6501 County Line Road, Burr Ridge, all you need is a ticket.

The home, called the Villa Taj due to its size and 4.5-acre setting, is part of the 2009 Holiday Home Tour sponsored by the Hinsdale Center for the Arts. Tickets are $35.

One of the nonprofit organization’s prime fundraisers, the tour is scheduled for 1 to 5 p.m. Dec. 6 and includes four Hinsdale area homes that will be open to hundreds of visitors.

“We are really excited about the four homes that will be showcased,” said Beth Waldo, one of the event planners. “The home at 6501 County Line Road, we call it Silk Road, has drawn a lot of interest from people who have seen it being built, and we are thrilled to have it on our tour this year.”

Each year, the Hinsdale Center for the Arts reaches out to homeowners of unique homes to include on the holiday tour, which Waldo said will draw more than 500 visitors.

Joe and Anita Bauer, owners of the Gothic Revival-style home at 304 S. Lincoln St., Hinsdale, agreed to showcasing their home to help the center.

“It is certainly a worthy cause,” said Joe Bauer. “We were approached last year and declined, but said yes this year.

“Anita began decorating after Halloween, and we hope people will enjoy our ‘Christmas years ago’ decorating style.”

Various sponsors, from interior decorators and florists, work with a team captain assigned to each house to come up with a unique decorating scheme.

“What we try to do is come up with a plan that complements, embellishes the vision of the individual home owner,” Waldo said. “We try to stay true to their holiday decorating ideas.”

Tour sponsors will visit the homes about a week beforehand to put the finishing touches on existing holiday decorating, Waldo said.

Choirs will be at each home to provide musical entertainment.

Patrons can purchase tickets at a number of locations in Hinsdale and surrounding communities, as well as the Hinsdale Center for the Arts, 5903 S. County Line Road.

Tickets can be purchased the day of the event at one location only: 28 E. First St., Hinsdale, the site of the HCA’s 2009 Adornments display.

For a complete listing go on line at hinsdalearts.og.

Oak Brook New Housing Developement in Forclosure

(Crain’s) — Bridgeview Bank Group has filed to foreclose on Brittwood Creek, an exclusive 56-acre development of posh single-family homes in Oak Brook by longtime suburban homebuilder Callaghan Associates Inc., another reminder of the nearly dormant market for new high-priced homes.

After paying $21.3 million for the site in late 2006, a Callaghan-controlled venture has apparently sold just one of the 30 lots in the subdivision, at State Route 83 and 35th Street in the western suburb.

The wooded development site, which includes a winding creek, is about 2 miles south of the bustling Oakbrook Center shopping mall. Roads, sewers and other infrastructure have been constructed.

Callaghan financed the purchase and other development costs with a $24.7-million construction loan from Bridgeview, based in the southwest suburb.

But in September, the Callaghan venture began missing monthly loan payments, according to a complaint Bridgeview filed Oct. 29 in DuPage County Circuit Court Court. The total amount due is a little more than $23 million, the complaint says.

A lawyer for the bank, John J. Pcolinski Jr. of Wheaton law firm Guerard Kalina & Butkus, says, "It is appropriate for the parties to continue negotiations. We're hopeful it will be resolved satisfactorily for all parties."

Daniel Callaghan, president of Westmont-based Callaghan, did not return calls requesting comment. His father and the founder of the company, David Callaghan, died in July at age 80.

David Callaghan began his development career in 1954 building houses in Oak Lawn for first-time home buyers, eventually expanding the company to include multi-million-dollar mansions, according to an obituary in the Chicago Tribune.

In recent years, Callaghan Associates focused on developments targeting empty-nesters, such as the 78-home Forest Gate subdivision in Oak Brook, which is nearly complete, and the Savoy Club, a planned 52-unit project in Burr Ridge

Happy Thanksgiving Day

May you and your family have a wonderful day. I will be celebrating with my family out of town for the day. Will be posting next week. Beth

What is "As Is" buying a home.

Banks are selling their properties, “As is” but what does, “as is”, really mean?

• Does it mean that once I make an offer I have to accept the present condition of the house?
• Does it mean that when I take a look at this house I have to sneak around and check everything before I make an offer?

This is what “As is” means:

“It means that you are purchasing this home in it’s present physical condition. The seller (bank) is selling you the house without any warranties or guarantees of its condition whatsoever. The seller (bank) will not repair or improve on anything, period.”

But does this mean that you have to purchase your prospective home blindly? The answer is NO.

Even though you are purchasing a property “As Is” you still need to know what “As is” is. Do you follow me?

This is why you should always elect to do a home inspection especially on a bank owned property where no one knew how the home was cared for and no one knows what happened right before the past owners left the property. They could have done some things that made the property unsafe or could have done damage that wiped out any profit you had calculated into the deal.

You need to ask for this home inspection period so you can find out what the “As is” condition is of the property. Once you are satisfied with the present condition is when you proceed with the purchase. If not, cancel!

Yes, you lose out on the cost of the home inspection but that is the price you pay for taking this on.

The cost of the home inspection is well worth it considering the headache you would have had in the future trying to make the house livable.