With “will” there is a way

A client came to us and asked if we could help her with her short sale. There where two loans on the property. PNC Bank had the first mortgage and National City had the second mortgage. (keep in mind PNC owns National City) Susan had been attempting to close a sale for over 7 months. The first offer was clean and for $152,000. She worked tirelessly for 5 months only to find that National City would not approve the deal without a signed deficiency form stating that they could seek a deficiency on any loss of the sale.

The deal failed and the buyers went elsewhere. Susan kept working and found another offer, this time for significantly less. The second offer was for $135,000 and soon Susan found herself in the same situation with the bank. Not comfortable signing the deficiency form again, she called us for help.

After thoroughly researching the file and going through all of the documents already submitted to the bank, we came up with a strategy. I won’t bore you with all the details and time spent, because it would be a volume of text. I will instead outline the result.

#1 The original negotiator working for Susan for many months had never spoken the appropriate negotiator in charge of making decisions. We got to the right person in the first 3 days.

#2. We wrote a detailed letter to Freddie Mac, and the office of Housing and Urban Development (HUD). In this case once HUD and Freddie Mac were informed about the fact that PNC and National Citi are really the same firm, and should not be able to negotiate against itself, as this is a conflict if interest, the file was immediately escalated for legal reasons. The potential liability for PNC as a result of stalling the first offer for $152,000 was significant and resulted in a personal phone call from Freddie Mac’s lead counsel letting us know that he was now involved.

The Federal Home Loan Mortgage Corporation (FHLMC), known as Freddie Mac (NYSE: FRE), is a government sponsored enterprise (GSE) of the United States federal government. The Financial Institutions Reform, Recovery, and Enforcement Act (“FIRREA”) of 1991 revised and standardized the regulation of both Fannie Mae and Freddie Mac. Prior to this act, Freddie Mac was owned by the Federal Home Loan Bank System and governed by the Federal Home Loan Bank Board, which was reorganized into the Office of Thrift Supervision by the Act. The Act severed Freddie Mac’s ties to the Federal Home Loan Bank System, created an 18-member board of directors, and subjected it to HUD oversight.

In mid July 2008 there was widespread speculation that the US government would move to provide Freddie Mac with additional guarantees of capital, because of widespread instability in the financial markets and public perceptions of looming insolvency. On Sunday July 13 The Secretary of the Treasury announced that the US government would seek legal permission to invest in Freddie Mac, which it later obtained as part of a Congressional housing bill. In addition, the Federal Reserve offered Freddie access to its emergency borrowing facility, the Discount Window (a resource traditionally reserved for banks). While, many are calling this move tantamount to a bailout, the Treasury has not yet invested in Freddie Mac.


Pittsburgh Trust and Savings Company which was founded in Pittsburgh, PA changed its name to First National Bank of Pittsburgh in 1863 after it became the first bank to receive a national charter as part of that years National Banking Act. By 1959, after a series of mergers, the bank had evolved into the Pittsburgh National Corporation. In 1982, Pittsburgh National Corporation and Provident National Corporation merged under the new entity named PNC Financial Corporation. Between 1991 and 1996 PNC purchased over ten smaller banks and financial institutions that broadened its market base from Kentucky to the Greater New York Metro area. In 2005 PNC acquired Washington, D.C. Based Riggs National Corporation. In 2006, PNC announced that it would be acquiring Maryland-based Mercantile Bankshares in 2007. On June 7, 2007, PNC announced the acquisition of Yardville National Bancorp, a small commercial bank centered in central New Jersey and eastern Pennsylvania. On July 19, 2007, PNC announced the acquisition of Sterling Financial Corporation, a commercial and consumer bank with accounts and branches in central Pennsylvania, northeastern Maryland and Delaware. These mergers made PNC the 8th largest bank by deposits in the United States.

If you on anyone you know has questions about Loan Re-structuring or Short Sales, please give us the opportunity to understand your situation. You may have more options than you think.


Be aware this tax season

There are a few things to watch out for this tax season to help protect your hard-earned money.

Hiring unqualified preparer: It’s easy for an accountant or tax preparer to take advantage of you, especially if you’re unfamiliar with the tax code or paperwork involved with filing a return. There are many preparers out there who — to make an extra buck — will skim a portion of a client’s refund, charge more than they should for services and lure taxpayers to their office by promising unattainable refunds.

It’s up to you to be careful when selecting a preparer. In future filing seasons, all paid preparers will be required to register with IRS in order to receive a preparer tax identification number.

Phishing for personal information: Be careful before replying to that e-mail from the IRS notifying you of the thousand dollar refund you’re eligible for this year.

“IRS impersonation schemes flourish during the filing season,” the agency said. “Criminals use the information they get to steal the victim’s identity, access bank accounts, run up credit card charges or apply for loans in the victim’s name.”

These scams can come in the form of e-mails, phone calls, faxes or even texts to your cell phone. If you receive an e-mail from someone claiming to be from the IRS, don’t open any attachments or click on links included in the e-mail. Instead, forward the message to the IRS at phishing@irs.gov.

Filing false or misleading forms: Scam artists are claiming refunds they don’t deserve by filing “false or misleading” returns, said the IRS. Taxpayers are fabricating information returns and claiming made-up withholding credits in an attempt to make a little extra money from the IRS by way of a tax refund.

Some taxpayers carry out this scheme because they are under the belief that the federal government holds secret accounts for each of its citizens, said the IRS. These individuals believe that the funds in these hidden accounts can be accessed simply by issuing a Form 1099-Original Issue Discount, which is a phony information return. There is a person doinginfomercials who makes these claims and has already been issued cease and desist demands by the government for past fraud.

Overstating your charitable donations: While giving to charity is a noble act, don’t reverse it by lying about the amount you donated.

Fishy retirement plans: The IRS is on the hunt for taxpayers who abuse their retirement plan arrangements, including individual retirement accounts (IRAs). Taxpayers who enter transactions that allow them to exceed the contribution limit of an IRA are wanted by the IRS, as are those people who fail to properly report early distributions.

Claiming gas costs: Trying to claim the money you spend on your hour-long commute to work each day? This could cost you a $5,000 fine from the IRS. While taxpayers such as farmers who use fuel off highways as a means of carrying on their trade or business may qualify for the fuel tax credit, you can only claim the credit if it meets specific IRS requirements.

Disguising your company: The IRS is currently working with state authorities to identify corporations and other entities that disguise the ownership of a business. These entities are often disguised through using a third party to request an employer identification number, and the businesses or financial services can be used for the underreporting of income, fictitious deductions, money laundering, financial crimes and even terrorist financing.

Giving yourself a pay cut: In an attempt to lower the amount of taxes owed, some taxpayers are filing phony wage-related information returns instead of the required returns. “Taxpayers should resist any temptation to participate in any of the variations of this scheme,” said the IRS, adding that false filings could result in a $5,000 fine.

Abusing trusts: An increasing number of people are misusing private annuity trusts and foreign trusts to transfer income and deduct personal expenses. “Some promoted transactions promise reduction of income subject to tax, deductions for personal expenses and reduced estate or gift taxes,” said the IRS. “Such trusts rarely deliver the tax benefits promised and are used primarily as a means to avoid income tax liability and to hide assets from creditors, including the IRS.”

Inflating your withholding credit: You could be fined $5,000 this year if you exaggerate your withholding when reporting nontaxable Social Security benefits, which would result in your falsely report zero income to the IRS.

Remember a referral is always the best way to find a good tax preparer. Find out how long the person has been preparing taxes and stick with someone who has been doing it for a long time. We all have to cut our teeth in our craft, but the most experience wins out with tax code as it changes frequently.

Another happy client

We were so happy when this client was approved. They have been through some difficult times. Gabe recently conquered a serious health challenge.  So many people gathered together to support them and pray for healing. While only He can decide our final course, we should never stop praying because it works! For those who know Gabe and Annie they are both nothing short of inspiring!

We are thankful for Annie’s amazing strength, Gabe’s recovery and the banks decision.

“You saved our dream home and made our vision of possibly retiring in this house a reality. We are so happy we will be telling everyone we know about your company. So many people need your help and need to know the level of honor and hard work you provide. Thank you from the bottom of our hearts”.

Annie and Gabriel Bonilla
Phoenix, AZ

File start 11/2009
Success 1/2010
Original Payment $4,103
Re-Negotiated Payment $1,976
Saving per month $2,127
Savings over 10 years $255,240

See our previous posts for some educational content and pass this along to anyone who may have questions or need options.

Another Success File

I cannot find words to properly express my gratitude for the sincere and professional service you provided to our family. We were caught by the circumstances of the falling economy and your organization helped us re-align our priorities and gain the necessary cash flow to mitigate great loss. Humbly, I wish to also thank you for the kind and thoughtful e-mails and phone calls of encouragement you and your staff forwarded to us to keep us on track.

We intend to recommend your services to all our friends and business associates.

Carol L Conway, Mesa, AZ

First Mortgage
File start 11/2009
Success 11/2009
Original Payment $2,112
Re-Negotiated Payment $1,716
Saving per month $396
Savings over 10 years $47,520

Second Mortgage
File start 12/2009
Success 1/2010
Original Payment $1219
Re-Negotiated TEMP Payment $961
Re-Negotiated PERM Payment $892
Saving per month $327
Savings over 10 years $39,240

Recent press on banks delaying “perm” mods

Much of the media has been reporting that homeowners are complaining that their bank is stalling or delaying their permanent loan modification. Some of the facts surrounding mortgage re-structuring is cloudy and few homeowners understand “all” the details involved.

To shed some light on the topic it is important to be aware of the following facts:

1. The lenders and servicers handling the paperwork on your modification are using mathematical ratios.

2. The documents you send to the bank  (if you are doing it yourself) are the key to your success or failure.

3. Your expense to income ratio along with debt to income ratio are factors. Your mortgage payment, the type of mortgage, who owns the “note” and the percentage of your income to your mortgage payment will also largely define your trial payment plan if you are approved.

The trial plans are designed to allow the homeowner to make payments for a set period of time (typically 90 to 120 days) with no grace period. The purpose is to be sure you can maintain a consistent payment history. Between 2008 and 2009 the banks gave out perm mods to homeowners who eventually defaulted . The banks spent money and resources to staff the processors only to end up foreclosing on the home costing them more money. The banks are learning fast, and they now want to be sure the trial period can be maintained before they will issue a perm mod. We are seeing the banks re-issue temp mods to more people before they will commit to a perm mod. This trend will likely increase as more people in America need help saving their home.

The banks will request your updated income statements such as pay stubs throughout the trial period to be sure your income doesn’t change. If you begin to make more money, it could affect the payment of your temp modification and certainly will affect your perm modification. Keep this in mind if you are handling the process yourself. One mistake will cost you the approval. (see our previous Blog on Banks and their affiliated relationships)

Our high success rate is a result of educating our clients and asking all the right questions up front during the Pre-Qualification process. We spend significant time with each homeowner to understand their specific needs. Each persons situation is 100% unique to them, so we must first understand it before we can recommend options. Once we have all the documents necessary, we’ll underwrite the file to be sure it fits with the banks guidelines. Only then, will we retain the client and accept the file for submission.

Be sure to check out all the video tutorials on our website http://www.HowToSaveMoney360.com