A New York Mortgae Planners View:

New York According to Deutche bank half of all mortgages to be underwater by 2012.

The headline of this article poses the following questions,

•1.  What is that underwater mean? We know that an iceberg is mostly underwater and can do great damage. Obviously that underwater doesn't make it worthless.

•2.  If it is underwater whose problem is it the banks or the consumers.

Underwater mortgages means, that you owe more on the house then its value. In other words the collateral is not enough of a security to the bank, which leads me into the answer for the second question,

Whose problem is an underwater mortgage, and the answer is the banks /lenders. When a consumer buys a piece of property if it is for the long term which means 7-10 years time the consumer already profited.  1) Tax deduction on mortgage interest, depreciation on value regardless if it does in fact depreciate or not. 2) By owning property they hedged against inflation and the erosion of the dollar 3) appreciation and most of the time tax free.

The only who stands to lose in an underwater mortgage situation is the lender, because the lender has to factor in collateral and security for their money, and an underwater mortgage or a declining economy offers no security for them the recoup their money quickly. But don't worry for the bank they got other ways and techniques to stay in business most likely they will make it up in rates and upfront fees.

In summary my message is, don't let the headlines scare you, it is merely an estimate that lenders need to make for themselves and not yours the consumer. As long as your plan for real estate is long term which it should be, and you are working with a Certified Mortgage Planning Specialist who is capable of advising you on the most recent cutting edge financing techniques you're in good hand and continue to buy real estate because it will make you wealthy.

For a consultation you can contact

Joel Silberstein
Certified Mortgage Planning Specialist, CMP
www.mortgageplannerview.com

Brooklyn, NY Building for Sale Fulton Street Mall 573 Fulton Street. 11201

 Price: $6,800,000 MLS#/Listing: 342752 Property type: Commercial Square feet: 30,000 Year built: 1915

This Brooklyn, NY Building for sale in Fulton Street Mall  is a 5 story brick building and Includes a total buildable 30,000 sq feet. Zoned as a CS-4-5. And sits right in the middle of the busiest commercial location in Downtown Brooklyn.

Price reduction from $8,000,000 down to $6,800,000. This is a give away price!!

Click here for a list of incentives to relocated your business to downtown Brooklyn.

Downtown Brooklyn is a neighborhood located in Brooklyn bordering Brooklyn Heights and Clinton Hill.

Home to the third largest central business district in New York City, Downtown Brooklyn is a predominantly commercial and residential neighborhood known for its soaring office buildings and impressive skyline. Borough Hall, the Kings County New York State courthouse, Fulton Mall and the Brooklyn Academy of Music are just a few of the many cultural, commercial and municipal institutions found in the area.

The New York City Department of City Planning has approved a significant rezoning for portions of Downtown Brooklyn, including the Fulton Mall area, which may result in significant expansion of office space and ground-floor retail. The rezoning consists of "zoning map and zoning text changes, new public open spaces, pedestrian and transit improvements.

Transportation

Downtown Brooklynis connected with Manhattan by the Brooklyn and Manhattan Bridges. The neighborhood has extensive public transportation accessibility; it is served by the New York City Subway by the 2, 3, 4, 5, A, B, C, D, F, G, M, N, Q and R lines, many one stop from Manhattan. The Long Island Rail Road stops at the Atlantic Terminal, located at the intersection of Atlantic and Flatbush Avenues.

For a list of Downtown Brooklyn events click here.

For a lit of Shopping In downtown Brooklyn click here.

Listing Agent: David J. Weiner (718) 207-2403 DaveW05@davidjweiner.net 
Call today and present all approved funding to Schedule an appointment.

To discuss Financing options on this property
Contact Joel Silberstein
Certified Mortgage Planning Specialist
The Silberstein Group
917-660-3630
We are located in Brooklyn NYAlready Sold

Check out this info below if you want to plan to avoid forclosure.

The key is to know the consecuence and not to look for someone to blame.

FAQ by client's in today's market.

• Will signing a 4506 trigger an audit: No! A 4506 is a document order from to get a transcript of your taxes from the IRS system. it is not a reporting form, and every lender is pulling transcripts from the IRS to substantiate that your tax documents are real.

• Does it make sense to wait until rates come down?I don't think so because it is not a given that rates will come down. if there is the Slightest scare of inflation rates tend to go up. if there is more bad numbers from the Mortgage Bankers Association regarding default's rates might go up since it is more risk. Therefor don't wait if it is good now go for it refinance purchase or whatever it is you need to do.

•  What do I do with the savings from the mortgage is there where to invest these days? Oh please, if you look at the market it is going to rebound maybe not today maybe not tomorrow but it will have to regain at least 80% of where it is currently at, that puts you in a wining position. keep in mind wealth keeps on flowing from stocks into housing and from housing into stock if it gets stuck at any pint in time at in any of the ssector's it stand the chance to loose its value.
• Should I Modify my loan even if I am able to make my payments? NO why would you? didn'tyou sign the document that you are going to pay back this amount each andevery month? If you lost your Job or have a difficult situation, the first thing you ought to do is to look for a new job and rain in a cash flow. If you cannot meet you monthly liability's then call your lender and try negotiating with them to drop the rate temporarily until you catch up and then you will pay the difference later once you have the cash or at the sale of the house.

• My lender told me that they will not modify the loan should I default on my loan so they'll take me more serious?It is highly unethical to stop making payment to lender just because you want a break from the payments. if it really an issue most lenders will settle with you even before you default on the payments. Sometimes when your income is low that despite the modification it will still be above your capability then the lender will refuse to modify disregarding the fact if you are in default or not. A great solution would be you short sale the house to a friend or relative and you lease back from your friend with an option to buy in few years. So your friend can make money off real estate you save your house and might even buy it back for less then original price. keep in mind though that if you modify you might need to wait 4 years to be able to get a new mortgage on your name.

• I recently opened a business and am making 4,000 a month should i tell my lender about it when they are asking fir a hardship letter when trying to modify the loan?.  Tel them but mention to them that according to current underwriting guidelines self employment income needs to be averaged over 2 years. and if you just opened a business's they cannot count the full income as qualifying income.

• Should I consider Chater7 Bankruptcy if i have so much debt? Without rendering legal advice i can render practical advice there is a limit to how many times you can go bankrupt in a 10 year period of time. ttherefore make sure you exhaust other option before so you can reserve this tool for when all other options are not feasible.

 There is allot of pain in the market because we are coming form the past if we can think about the future things always look brighter!

So lets go out there and make a bright future for ourselves.

Sincerely

Joel Silberstein
www.joelsilberstein.com

It Seems like everyone is considering to modify there loan these days. Especially that Sheila Bair who is the Chairman of the Federal Deposit Insurance Corporation (FDIC) said, "We will very aggressively pursue loan-modification strategies for unaffordable loans to make them affordable on a long-term, sustainable basis." therefore I feel the need to clarify the option that an individual has and the ramifications it might have.

First of all it is not ethical to modify unless you are really in need and cannot survive otherwise. Just because you can and the bank will agree is thievery. Its not the lenders fault that you made a bad investment, Man up and take responsibility.

To cut to the chase, If it is a Primary residence, and the balance of the loan is less then a 2 Million dollars before forgiving, it makes scenes to modify or trying to get the lender to forgive a portion of the loan since there will not be a tax problem for you on the portion forgiven.

However if the loan you are trying to get a portion of it waived is on an investment property or if the loan portion forgiven is more then 2 million dollars the lender will send you a 1099C in the end of the year and you will have to pay on the forgiven part income tax on top of the money that you earned this year, a real problem in some cases.

 Things to look out for

1. Primary residence only.
2. Original loan you got when you bought the house, Sorry no cash-out refinance allowed.
3. loan balance before forgiveness was less then 2 million or 1 million if you are single or file separate.

If you criteria doesn't fit then don't do it you will have to pay tax on the forgiven part.

True Story

Jack did a modification on a 3,000,000 dollar loan and he did not ask his mortgage planner or his CPA beforehand. He negotiated the loan down to $1,000,000 and saved $10,000 dollar a month by doing so. At the end of the month Jack got a 1099 from the lender in the amount of $2,000,000.

Jack called his accountant and the accountant said he will have to pay taxes on the 2,000,000 which he was forgiven an amount of $700,000 and he will have to file for bankruptcy in order to get out of the bill.

Don't be like jack black contact professionals and don't rely solely on your Loss mitigator, ask your accountant and your CMP, CMPS before you make a move.

Sincerely

Joel Silberstein
Certified Mortgage Planner, CMPS

 Please check out what are your option of you cannot continue to pay your mortgage. click here.

In the You Magazine issue of November which I distribute to my database monthly there is a link to a powerful simple truth video. I was moved to tears with the positive message reinforcements while looking at beautiful scenic picture and listening to beautiful music just a few words flash onto the screen . The power of that is amazing. its a real science of mind programing that most people don't know about. A story can be told with great detail but it will not move you deep inside. However reading the same story, on a PowerPoint slide-show with scenic pictures of the sun and nature with a combination of music can be really power-full and it can move your behaviour in the direction of the content.

Transformational Idea, Look at such a power-full slide show everyday for 10 minutes before your start the day and it will invigorate you.

To Test the theory for your self click here.

For more of such content for your mind and body and financial health, please subscribe to this on-line magazine free to you it will be delivered right into your email evrey month.

For a Sample of this months You Magazine Issue please click here

To subscribe click here

Sincerely

Joel Silberstein
Certified Mortgage planner, CMPS

Many people ask why if the fed cuts interest rates why did mortgage rates go up???

Another one, Why if the EU cut its interest rate why did the US dollar get stronger against the Euro and the Canadian and Against the yen etc.

Another question, why did the global stock markets gain yesterday when Australia cut its interest rate with 3/4, more then expected?

Here it is. I hate to break it to you but the truth is that the Fed's mission is not to provide low mortgage rates.

Copied from the Federal Reserve site itself and here it is,

"Today, the Federal Reserve's duties fall into four general areas:

• conducting the nation's monetary policy by influencing the monetary and credit conditions in the economy in pursuit of maximum employment, stable prices, and moderate long-term interest rates
• supervising and regulating banking institutions to ensure the safety and soundness of the nation's banking and financial system and to protect the credit rights of consumers
• maintaining the stability of the financial system and containing systemic risk that may arise in financial markets
• providing financial services to depository institutions, the U.S. government, and foreign official institutions, including playing a major role in operating the nation's payments system"

Reading through their mission statement in their own words did you see anywhere the word mortgages?

Here is the real story, we live in a world economy and we compete in a world economy, the players are the common people and the governments of the world. As in matter of fact there is a World bank where the big boys like USA federal reserve, and The bank of England, and the European Union etc. have accounts and pay membership dues.

 The US has income just like we all are trying to have. The US income Consist of,

• Interest rates that it gets from Banks who borrow from them.
• The tresury bonds.
• Consumers and business taxes.
• Customs taxes.

Now if the US would to cut its interest it charges the banks who they lend to, would that limit the income for the US? Of course it will and if the US has less income they are perceived as weaker.

But if all your competition all cut their interest rates at the same time, the you are as strong as your competition! therefore when the EU cuts its rate, Australia cut its rates the US dollar strengthens.

Of course the interest rate cuts is intended to stimulate the US economy and it is a wise investment of the governments part, the short term is still a major factor and investors play by it daily.

Now back to the first question, Why when the fed cuts the Interest rates it does not reflect in mortgage rates?

And the answer is it that the fed does not directly control that!  eventually it will reach a point where the mortgage rates are influenced and will follow the US interest rate trend, but it has no real correlation.

I hope I clears it up a little and if you have question or comments please do so and lets get educated.

Sincerely

Joel Silberstein
Certified Mortgage Planner,CMPS

Consumer Aleret on the Federal Reserve Website

Release Date: November 4, 2008

For immediate release

 BEAWARE: FEDERAL RESERVE WILL NEVER SOLICIT YOU!

The Federal Reserve Board on Tuesday alerted the public to instances of questionable solicitations directed at consumers. These solicitations promise consumers access to personal loans through a nonexistent Federal Reserve lending program.

Under this fraudulent scheme, targeted individuals are told that that they can work through a broker to access a Federal Reserve program that extends sizable secured loans to consumers. Consumers are encouraged to deposit large sums of money into a bank account, under the guise of a security deposit, in order to receive the purported loan.

The Federal Reserve is advising consumers that it has no involvement in these solicitations and does not directly sponsor consumer lending programs. The matter has been referred to the appropriate authorities for action.

Consumers are strongly urged to verify the legitimacy of potential service providers before entering into a business transaction. Individuals seeking personal finance options are encouraged to do business only with reputable lenders and to shop around for the most favorable loan terms.

Consumers with questions about solicitations that they suspect may be fraudulent are encouraged to contact the Federal Reserve Board Consumer Help Center at http://www.federalreserveconsumerhelp.gov or by calling 1-888-851-1920.

Spread to your Database they Will forever be grateful!

Well you sure heard about inflation right? that's when prices rise and the dollar looses its buying power due to fast growing demand.

Deflation is the exact opposite of that. that's when demand falls so short that prices will have to come down to move products off the shelf. So whats the problem you might ask?

Well 2 fold:

1.  First of all for existing loans. existing loans which will be paid back in an deflationary environment will be paid back with more expensive dollars then the dollar borrowed, real bad for consumers.
2. It will further push economy in a stand still almost stone age like, because nobody wants anything so why would anybody pay you for anything?

A Little bit trivial but not as much as you would like.  with talks of economic recession on the horizon and company's cutting back, with interest that low and a tight credit market there is actuial a possibility of deflation.

Idea to capitalize on : Stock up on money and lend it during a deflationary ENVIRONMENT YOU WILL GET BACK DOUBLE ITS WORTH.

You always need money when things go well, and when things do not. When all goes well you want to have asses to cash to capitalize on it. When things do not go so well you need it for security reasons!

Make sure you make the right choice with yours!

Joel Silberstein
Certified Mortgage Planner, CMPS
917.660.3630
joel@joelsilberstein.com

Hindsight is always 20/02 But the problem is you can only see what you understand. in example looking at struggling businessman coming out shining through a rough market, the person who does not understand business principles does not how he pulled it through. Versus a business knowledgeable person does know and can identify the principles that this struggling business person cling-ed to that help him through the rough market.

I just heard today about a 59 year old executive in the jewelery manufacturing business expressing fear that he will loose his job. He never bought a house because he was always afraid that if he might looses his job, where is he going to pay the mortgage from.

He never invested in real estate due to lack of knowledge of the real estate business.

He never invested in the stock marketdue to his lack of knowledge of the stock market.

You see the theme? He was always holding to his job and being good at what he was doing, but he wasn't growing,which brings us to the following financial principles.

1. Buy assets (Real estate or Stocks Bonds etc)that will go up in value.
2. Educate your self about these assets.
3. Change is inevitable, growth is a choice so the choose to grow and change will be easy!

Rich dad says: the difference between the poor and the rich is, The poor buy liability's, and the rich buy assets.

Owning your House is vital to your total financial picture the time to buy is now!

For Real estate financing advice please call me at 917.660.3630

or send me an email to Joel@joelsilberstein.com

Sincerely

Joel Silberstein
Certified Mortgage Planner, CMPS

The Silberstein Group
Brooklyn NY 11219