Simple, effective monthly newsletter for your Tenants
this issue emphasizes Cold Weather Tips
In the real world, it’s not if you will be asked, but when you will be asked for some kind of personal loan from your great employee(s) or contractors.
Sure it would be easy to announce ‘NEVER Do That!”
but, most investors I know, have a huge heart and truly enjoy helping people.
Here is a proper way to “help your people” and cover your butt.
FYI, you should NOT do this like a Pay Day Cash Advance business. This should be, at most, allowed once every year or two. If you allow this to be “common practice,” you will get beat up and you will LOSE BIG TIME.
This is a very frustrating and pain in the butt activity, and it should be avoided as your first rule.
The Treasury Department will triple payments to mortgage investors for reducing borrower principal through an expanded Home Affordable Modification Program announced Friday.
Officials announced several critical changes to HAMP, including an enrollment extension to Dec. 31, 2013, from its original expiration date at the end of this year.
The Treasury will also require servicers to factor in second liens and other obligations in the debt-to-income ratio calculation. Previously, if a borrower’s first-lien mortgage monthly payment was below 31% of the income, the borrower was deemed ineligible. Factoring other debts to the DTI evaluation will expand the pool of borrowers who could receive the assistance.
To combat blight,
officials said they would also
expand HAMP to investors who are renting properties to tenants.
Since HAMP launched in March 2010, more than 900,000 permanent modifications have been conducted. The Treasury originally estimated the program to reach between 3 million to 4 million borrowers. As of Dec. 1, less than 1 million were estimated to be eligible for the program under past rules.
Of the modifications already given, roughly 36,400 resulted in reduced principal as of Dec. 1. The Treasury paid between six and 21 cents to the investors for each dollar forgiven under HAMP, but that will grow to between 18 and 63 cents, under the rule changes.
In a conference call Friday, Treasury Assistant Secretary Tim Massad would not estimate how many borrowers would be eligible after the changes, but he did say mortgage servicers were signaled some expansion, even for principal reduction.
“We have previewed the changes with the servicers,” Massad said. “We got a very positive initial reaction.”
Department of Housing and Urban Development Secretary Shaun Donovan said in the conference call Friday that the Treasury would make these payments to Fannie Mae and Freddie Mac if they participate in the principal reduction program.
To date, the GSEs have not committed to such a program.
Both GSEs owe the Treasury $151 billion in bailouts, and their regulator the Federal Housing Finance Agency said a wide-scale principal reduction program would cost Fannie and Freddie $100 billion.
Of the $29.9 billion allocated for HAMP and other housing programs, the Treasury has spent only $2.3 billion. The Treasury still owes another $9 billion to $10 billion for the modifications already done, Massad said.
Donovan renewed calls for servicers to ramp up principal reductions, and reiterated that they would be a main tool in crackdowns stemming from the ongoing foreclosure settlement talks and the securitization investigations launched this week.
“These changes aren’t going to solve all the problems in the housing market, but they shouldn’t have to wait for the market to hit bottom before getting some relief,” Donovan said.
article received from Jon Prior
“Losers live in the past.
Winners learn from the past and enjoy
working in the present toward the future.”
— Denis Waitley
Copyright MMXVII AskMikeButler.com • 4012 Dupont Circle, Suite 203 • Louisville, KY 40207
DISCLAIMER: Per the current FTC guidelines, AskMikeButler.com and MikeButler.com are in the process of collecting results data in order to be able to define the "typical" or "average" experience of our clients. While we collect this data, we are sharing of potential results based on theoretical numbers for illustrative purposes only and should not be considered income claims. None of these stories in any way represent the "average" or "typical" experience. In fact, as with any product or service, we know some members purchase our system but never use it, and therefore get no results whatsoever. Therefore, the client stories and testimonials neither represent nor guarantee the current or future experience of other past, current, or future 5mWebinars.com clients. Rather, their stories and testimonials represent what is possible with trainings and products. Each of these unique stories and/or testimonials, and any and all results reported by individuals, are the culmination of numerous variables, many of which AskMikeButler.com and our clients cannot control, including pricing, target market conditions, product/service quality, offer, customer service, personal initiative, and countless other tangible and intangible factors. The information provided on AskMikeButler.com has been prepared with our best efforts, but cannot be warranted for effectiveness in every situation or against change.