A New York Mortgae Planners View:

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