Real Estate News

As reported by Globe St.’s Brian K. Miller, Arizona has approved plans to auction its “State Capitol Executive Tower” in a 20 year sale-leaseback. The tower houses the offices of the secretary of state, state treasurer and Governor and has an estimated value of $40 million. Arizona was forced into this predicament because of its current budget shortfall, which currently stands at around $3.2 billion.

However unlikely, this is just one example of a growing trend of government sale-leasebacks. California plans to sell $2 billion (or 62% of Arizona’s budget deficit) worth of government real estate, including the Attorney Generals Office, in a similar sale-leaseback. The City of Alexandria, VA, is considering the same thing with a host of its properties and Chicago has already performed sale-leasebacks with the “Skyway toll road, downtown parking garages and downtown parking meter system” for $3 billion. Sale-leasebacks make sense for governments because they allow them to get cash now to pay off their debts while retaining the option to buy back the property in 20 years or so.

Investors have shown a great deal of interest in these properties because their tenants (the government and in-effect, taxpayers) have strong credit ratings and in some cases will return twice what the investor pays. Not surprisingly, interest goes beyond political boundaries, as it is reported that international investors are heavily intrigued by these sale-leasebacks. This creates a bit of an irony, because in theory, you could have a U.S. State Capitol building owned by China.

Sale-leasebacks are generally structured as net leases, giving strength to a segment, which as Michelle Napoli pointed out, is already one of the most active in this current market.

Loan modifications have grown in popularity over the years because they have been increasingly successful in keeping people in their homes. As a result, the federal government has become a big fan of loan modifications and is getting more involved. The Obama administration is pressing mortgage servicing companies to step up their efforts to modify troubled loans under its housing rescue program. The White House is frustrated with the pace at which homes are being foreclosed on, as well as the pace with which loan modifications are being processed.

The Obama administration has seen a significant “ramp up” of loan modification activity, but it often times does not seem like enough when so many people are hurting. Federal loan modifications have helped some people stay in their homes, but the federal government often cannot give enough attention to all of the people who need help right now. Think about the millions upon millions of homeowners who need assistance with their mortgages and how few government representatives there are helping them. What many people need is a California loan modification attorney working with them, one on one, to keep their homes.

Housing counselors say they are disappointed by the progress made so far under the current Administration’s program, saying they are not getting anywhere near the results they were hoping for. They are saying the services are not up to par, which often means that there are not enough people answering phones for those who are calling. Sometimes, housing counselors have to educate the staff about their own programs, which means the government is not properly educating the people who were hired to help the public. In fact, Maeve Elise Brown of the Housing and Economic Rights Advocates said “Homeowners on their own are not able to navigate the system.”

All of this translates into homeowners needing an advocate who can take the time to listen to their needs, help them with their problem and be their advocate when no one else is helping them. A qualified loan modification attorney can walk you through all of the challenges and headaches that people are dealing with, whether you are considering a foreclosure, short sale or bankruptcy. A loan modification attorney can act on your behalf and aggressively fight for you, your family and your home.

Loan modifications can help you avoid foreclosure and stay in your home by renegotiating your mortgage terms to get your monthly payments much lower. This can be done by lowering your interest rate, getting a fixed rate instead of an adjustable interest rate, getting a principal reduction or some other option. A qualified California loan modification attorney will be able to effectively negotiate with banks and lenders, getting you the best terms possible for your loan modification. These are not easy times we live in, and everyone around you might be facing the most difficult financial circumstances anyone has faced in the last fifty years. However, with a loan modification attorney, you can rest assured that you have someone working on your behalf to help you avoid the storm.

Visit us at http://www.feldmanlawcenter.com or call 800-588-0425

Legal Disclaimer

The information contained herein is provided for general information and advertising purposes only and is not intended to convey a legal option nor legal advice for any particular case or situation. Nothing in this article shall create an attorney-client relationship. Nothing sent to this law office via e-mail shall constitute an attorney-client relationship. Nothing contained in this article shall be construed to be a guarantee or prediction of result. Prior results are provided for general information purposes only and do not guaranty, warranty or predict a similar outcome with respect to any future matter. Results achieved depend on individual circumstances and not everyone will qualify or be successful in restructuring their mortgage loan.

Author: Greg Feldman

President Obama has taken a significant step to make housing affordable to the American public who are in financial distress. Through various schemes like Government Mortgage Help Plan, Americans now have opportunities to modify or refinance their mortgage and make their monthly payments more affordable. Simply put, Government Mortgage Help Plan is designed with an objective to assist homeowners in refinancing their mortgages even if they are in a tight corner. For example, if they owe more than their home’s current value. Primarily, the features of this mortgage help plan is to help responsible borrowers afford a chance to reduce their monthly principal and interest payments and also provide borrowers options to move from their current risky loan structure to a more comfortable and stable product. However, many people seem to have certain queries on this scheme. Here are answers to some frequently asked questions. Do the borrowers have options to obtain the refinance flexibilities from lenders other than their present borrowers?Yes, many lenders do provide refinancing options for different scenarios depending on the borrower’s situation and preference.How do you explain the term movement to a ‘more stable product’?Here a borrower can move from:* A mortgage loan that has interest only feature to a fully amortizing mortgage product. A fully amortizing product is one in which both the principal and the interest is paid fully through scheduled installments by the end of the loan term. * An adjustable rate mortgage (ARM) to a fixed rate mortgage (FRM) product. A fixed rate mortgage product is ideal for someone who feels comfortable paying a guaranteed fixed rate of interest. However, the monthly installment of FRM tends to be higher than that of a product having an adjustable rate mortgage. A borrower, therefore, will need to do his or her homework judiciously before deciding on a switchover. * The existing ARM to a new ARM that has an initial fixed period of five years or more.* A 30 year fixed rate mortgage product to a product having accelerated amortization of principal and building of equity, that is a FRM of 15, 20 or 25 year duration. How will the borrowers and lenders determine which of the refinances or modifications under the Government Mortgage Help Plan is best suited to them?The Government Mortgage Help Plan addresses the problem faced by millions of American homeowners who are in a crisis because their property value has fallen, and hence they are unable to benefit from the low mortgage rates that are available now for refinancing. The borrowers must clearly understand that the loan modification program has an objective to prevent foreclosure for borrowers who are or in danger of default. Each mortgage plan has clear guidelines on qualification. Is there such a condition that the existing mortgage and the new mortgage represent the same occupancy?Fortunately, the Government Mortgage Help Plan does not impose such a requirement. The occupancy of the property in question may have changed by the time the new mortgage has come into force. Home loan modifications presently available have a potential to reduce both the principal and the interest rates. Homeowners must understand this important aspect and do some homework to assess whether they are eligible. Those who procrastinate will lose a wonderful opportunity the Government Mortgage Help Plan presents to bail out of a financial crisis.

The federal government announced the expanded Government Mortgage Help Plan on 26March 2010 at the White House. As this is a follow-up of the previous plans that went in vain, people wonder whether the new plan will prove effective. With this revised plan, the government aims at helping not only the 7 million households that are on their mortgages, but also the 11 million homeowners who owe more on mortgages than the market value of their houses. The Two Target Groups Government mortgage programs always try to help borrowers come out of their debt problem. The newly announced Government Mortgage Help Plan is said to target two groups of the mortgage victims. Borrowers that owe more on their mortgages than their houses are expected to benefit from the plan. As reported by Moody’s Analytics, 15 million+ house owners fall under this category. Among them, around 10 million owe a minimum of 20% more than their household’s market price. As per the plan, their mortgage companies (first-time lenders) get financial incentives so that they can cut the total amount the borrowers have to pay. Those that are still on their mortgages can refinance loans backed by the Federal Housing Administration (FHA).

To avail this assistance, the borrowers need to have a credit score of at least 500 and must meet FHA’s qualifications. Assistance to Unemployed Borrowers is the main focus of the recently released Government Mortgage Help Plan. The plan has given time for jobless borrowers to seek a job. For three to six months, their monthly payment is reduced to 31% of their income or less or dropped completely. If they manage to get a job within the mentioned period, they will be lucky, as they will become eligible for a loan modification program that will permanently minimize their payable amount under the $75 billion loan modification program of the government. To be eligible for unemployment benefits, the borrowers have to meet HAMP eligibility requirements and should be in the first 90 days of delinquency.

At the end of the assistance period, borrowers are evaluated for loan modification alternatives. Will It Work This Time? For the revised Government Mortgage Help Plan to work, it needs cooperation from several parties. The lender must agree to cut the principal balance for a deal to work. Also, the bank that holds the secondary mortgage of the house has to give its acceptance. The only advantage for a first-time lender is a quick escape from a loan that is going to default. Lenders feel a bit bad about the new program. As reported by Yahoo Finance, “Still, analysts said this effort has a better chance of success than past efforts because it would reduce principal for some struggling borrowers — a method more effective at helping homeowners than reducing interest payments or other forms of aid. Laurie Goodman, a widely followed mortgage securities analyst with Amherst Securities Group, called it a huge step forward.” New Government Mortgage Programs are generally introduced to overcome the pitfalls of previous plans. Obama’s expanded mortgage modification effort is one such revised program that will certainly do better to stop the foreclosure crisis. However, some economists still doubt whether the new Government Mortgage Help Plan will do well this time.

At the Government level many new policy initiatives have been taken recently to boost the real estate Property in India . These policy decisions will lend a stimulus and impetus to the industry. It is beyond doubt that the new initiatives will unlock the potential of the sector. Also, along with the stimulus package announced by the Government, the Reserve Bank of India (RBI) has taken a definitive step whereby banks are allowed to devise new schemes beneficial to the property sector.

As part of the Government initiatives to boost real estate boom sector India, RBI has declared concessional schemes for the real estate sector. Such initiatives include:
* Urban Land (Ceiling and Regulation) Act, 1976 (ULCRA) repealed by increasingly larger number of states.
* In case of integrated townships, the minimum area to be developed has been brought down to 25 acres from 100 acres.
* 51 per cent FDI allowed in single-brand retail outlets and 100 per cent in cash-and-carry through the automatic route.
* Full repatriation of original investment after three years.
* Minimum capital investment for wholly-owned subsidiaries and joint ventures stands at US$ 10 million and US$ 5 million, respectively.
* 100 per cent FDI allowed in realty projects through the automatic route.

Further, in its endeavour to initiate new policies to boost the real estate sector in India, the Ministry of Commerce and Industry, Government of India, has taken steps to reduce the time taken to develop special economic zones (SEZs) by simplifying the procedures to get the tax-tree industrial enclaves notified. Now developers can easily get their land classified as an SEZ at the outset itself by producing title deeds to prove their ownership. Again, the Government has announced several concessions in the Budget 2008-2009.

New Government initiatives to boost sector of Real Estate India include granting a tax holiday on profits from initiates in the financial year 2007-2008. In order to enjoy this benefit, the housing projects should be of the affordable housing unit type of 1000 to 1500 square feet. Another condition is that such projects should be completed by March 1, 2012. Further, the Finance Ministry has allocated US$ 207 million to grant 1% interest subsidy on home loans up to US$ 20, 691. In order to avail this benefit, the cost of the home should not be above US$41, 382. It is believed that these initiatives will be add further impetus to the real estate sector in the country.

For many people, a mortgage is the only solution to avoid financial difficulties and impending debts. However, there may be times when even paying the mortgage is a hard thing to accomplish. If you are interested in mortgage help, then you should know that there are some pretty interesting solutions available. We can teach you about existent regulations and how to benefit from government foreclosure help. You just have to listen and put all the given advice into practice.

Foreclosure is one of the words we dread the most, encompassing all the legal proceedings taken by a creditor to recover the money owed by the borrower. Mortgage foreclosure happens rather too often and it’s not for nothing that so many people are interested in foreclosure help. Did you know that if the lender does not respect the existent regulation you might be able to defend yourself against mortgage foreclosure? This is the kind of government foreclosure help you really need. Any violation on behalf of the lender and you might have a case, thus avoiding the foreclosure part completely.

The most important thing that you have to keep in mind is that knowledge is power. If you want to escape the debt situation and report a violation, then you better know the law and learn how to apply it. It is in your best interest to contact a qualified accountant and ask him/her to review the loan records, analyzing all the documents that might be useful to your case. This means all the letters, records of your loans and any monthly bank statements that might prove out to be beneficial to your situation. Who would have thought that you have a chance to annul the mortgage through such means?

The Internet is a perfectly good resource if you want to find out more information about foreclosure help. You can easily go online and find out what are the existing laws regarding loans. Lenders have been known to violate important regulations, including those involving mortgages and credit borrowing. If you know these laws, then you might be able to improve your current financial situation. All you need is a professional to stand by your side and pinpoint how you can benefit from government foreclosure help. Don’t deny yourself that right and pay increased attention to everything that professional has to say.

Before deciding if your lender has violated any laws, try and answer yourself to a few questions. This might prove out to be pretty useful. If you have refinanced a loan several times, if your rate has increased after the new loan was obtained or if the interest rate is incredibly high, then there might be certain violations involved. Foreclosure help is available in all these situations and in many others, including if you had problems with the lending company or the terms of the loan were changed on the spur of the moment. Talk to an auditor about such difficulties and be sure to find out extensive details on government foreclosure help!