The Krisko Korner
 

Okay, let's start with an introduction and the reason of this thread. First off, I am starting this thread because the Pointless thread was on topic for the most part, but then we'd start talking about EVO related things which I don't really see as something being pointless. Sure it's not technically "off topic" per say, but it no longer has the thrive or hilarious drive that it use to.

Also, I feel that although we all share one common thing (Driving an AWD Turbocharged Lancer of some sort or use to), most people would like to get things out there about themselves that they just never do when we are in person. Again, it's not a requirement. However, think about those times you went to meets and the only thing you talked about was how awesome your new rotors were when eventually you would have loved to talk about something cool that happened at work or a hobby of yours that you felt someone else would have loved chime in on too because it's a similar interest. Therefore, I am creating the Krisko's Korner chat thread.

Here, the rules are simple (ofcourse as long as it's within EvoM's rules), post things that have happened you found interesting during your day and your opinions about it, things that happened around the world or in your own life. Also, post something beneficial to all our lives in your line of work or from your hobbies and interests NOT CAR RELATED, Bambi told me so many things involving insurance that I would have never known in a million life times. Do NOT post links about a car part or something AMS just did on their Alpha package. I will mainly host lots of things the best I can due to my current job to get this started. Biggest rule, for possible legal reasons, don't list full names, ID numbers or anything of the sort that would hurt you or your business you own or work for. I will post things since my job involves lots of things going on through the united states so if you wish to chime in or have an opinion about it, please do post. I know you all know what an EVO/RA is and how to drive one, but is that all you know? Keep in mind, this thread is also to teach you things if you have questions about particular things, although we are all car enthusiasts, why not be a family of some sort too? Also, this thread will give us ALOT more to talk about in person other than a new car part you got last week and how its working out for you. I hate that dead silence we get at car meets because we ran out of stuff to talk about cars. DONT POST ANYTHING YOU FEEL OTHERS WILL BE UNCONFORMABLE WITH

Introduction since I will post a lot of my day here, both personal and job related-

I work for a main global bank in the mortgage department. I won't state its name for security reasons. My job is to assist and deal with underwriting and negotiating loans (I will explain the process later). Basically, I deal with all of the borrowers who are going through serious or self-claimed hardships. 70% of the time its self-claimed hardships. My department is a government mandated one which all banks were forced to put into place because borrowers were sick and tired of the left hand never knowing what the right hand was doing at banks, and we all know this is a super common thing with most huge companies. The idea was have a single point of contact during your entire loss mitigation process regardless what you did or didn't qualify for until a process was found to help avoid foreclosure. Although I don't know why it took until 2011 for banks to start doing this, it worked, and now countless borrowers are getting the assistance they need (for the most part) and foreclosure ratings have slightly lowered depending on who the investor of the property is.

As a person, I am what you called an almost 25 year old mixed guy with the ability to fit in just about anywhere because I would rather spend more time enjoying life than judging people for my own entertainment. Yes, I do have my opinions about things, but I state them based not off mere fluid prejudice, but from the insane amount of things I've experienced in these almost 25 years. I wouldn't say I know everything, but learning is one of my biggest joys in life, therefore, I stay open to everything. I do have a bit of confidence that from time to time gets in the way of this, but life wouldn't be fun if it didn't. I'm actually from St Louis and I've been here for 3 years. I love Dallas, just having a hard time with its people (I'll explain later as well).

~Now, on with the show, next post is all about information, the more you know, the better. Anytime someone post something information related, the next post will be filled with it, and its gonna get mighty big.~

Saved for information

Forgive the spelling errors or grammar, I'll correct eventually

Foreclosure Alternatives

First off, if you go into foreclosure, that does not mean you lost your home. Until the sale date has been reached, you have all of that time to be reviewed for foreclosure alternatives even while you are not in foreclosure. What makes being viewed for these options sometimes so difficult as you all may hear is that certain major bank investors like Fannie Mae and Freddie Mac require you to be 60+ days past due before they will even attempt to help you with anytime, for that is the initial way they believe you need assistance. So yes, your credit will have to be destroyed if your mortgage is with these investors before they even lend a hand. Most banks that are not not these two major banks (Chase, Citi, BoA, etc) are actually okay with you being current to be viewed for anything form of assistance. Also, once you go into foreclosure, the only way to cure the loan without any of the below plans is to reinstate the loan. This means paying the full balance included foreclosure and attorney fees and costs which can sometimes be as high as $5000. ONLY way to stop a foreclosure sale today is to be approved for any of these programs by underwriters or negotiators. Back then all you had to do was just apply for it. People played the "modification game" back then, and it allowed people to stay in their home for as high as 2000 days. How so? Stop making payments, go into foreclosure, when a foreclosure sale date is set apply for a modification, get approved by an underwriter and start your trial/probation period, make just one payment, stop, then start all over again. Most borrowers who did this lived rent free of course, and when we checked their bank accounts we saw alot of people who managed to save over $50-100k in just what should have been their mortgage payments. Banks have found ways to stop this, but, there are still ways.

Modification

A modification is not like a refinance and it's not just some interest rate reduction like people tell you. It is actually an extension of the terms of the loan and if you qualify, you may receive an interest rate reduction, but for the most part you do. How does this work? Example - If you have paid 5 amount of years on your 30 year fixed mortgage, they would take the remaining 25 years and extend anywhere between 30-40 years along with an interest rate reduction that may be fixed or a step rate. Yes your principle and interest will go down, but your account will now be escrowed (including taxes and insurance if it already wasn't) so the reduction won't look so much if it wasn't already escrowed. Modifications are not something you want to pursue if you have equity in your home, instead, do a refinance if you are dealing with a hardship you feel is long term.

The presidents modification, Homeowner Affordability Modification (HAM) is what you hear about on TV and this is how it works -

- Must be your main property, can't be one of your rental properties or getaway homes

- Your House to Gross Income (HTI) must be over 31%

- This is a once in a lifetime modification only, you screw this up, you can NEVER get it again

- Have made at least 12 consecutive payments on your last mod

- Must be going through a hardship (decreased income, unexpected expenses, overextended)

The thing about this modification is all they mainly look at is your HTI. Example - If your gross monthly income is $10,000 and your mortgage is $2000 a month, you don't qualify for it. If your mortgage is $5000 then you are qualified for review because its more than 31% of $10,000. This also means the government could care less about any of your other bills since its house to income based. With this $10,000 income, even if you pay $2000 a month in credit cards and $1000 for tuition or school bills, $2000 in groceries and utilities and have a $1000 car payment it doesn't matter one bit. The president's modification is to make your home affordable, not your lifestyle.

If you don't qualify for the president's HAM due to any reason above, you'll be run for the investor modification, which are more debt to income ratio (DTI) based. These actually look at your lifestyle somewhat, and can even be done on your rental or private homes. These mods are awesome.

What happens to the delinquent amount if you are past due? It will either be put back into the principle balance or sent to the end of the loan drawing no interest. If it is sent to the end of the loan, once your loan is paid in full, there will be a huge balloon payment for that amount.

PROS

- Decrease in monthly payments
- Account is now escrowed (its a pro and a con to some)
- Account is out of foreclosure status if it was ever in it
- Account is now current

CONS

- You are now paying on interest all over again for a must longer period
- Your credit score gets a constant negative reporting if you are past due, even during the probation period
- You will receive a "modification" on your credit report. Unlike most things that last for 3-9 years on your credit report, this one last during the entire time you own this loan. Even if its 40 years.
- If you go behind within 12 months of your previous modification, you can't get another one.

SHORT SALE

A huge percentage of homes were greatly effected by the current economy situation, and therefore selling your home for what you put into it is close to impossible sometimes. Unlike a normal sale of your home which you do at appraisal value, a shortsale is liquidating the home for fair market value. This means you're selling the home based off the area, foreclosure rate and current property assessment. These are not measured by appraisals but by something called Broker Price of Opinion (BPO). This is like an appraisal, but much cheaper and is done by the banks, who ofcourse charge it to your mortgage principle ($60). All they do is take drive-by pictures and leave in most cases, sometimes they'll just do an interior BPO, but still all they do is snap photos and leave. It saves time and money for the banks. Anyways, this must be done by a realtor you hired and not yourself. Now, selling the home for fair market value is like this, although you may have got the home at $120k, your realtors BPO says your home is worth $70k right now, so you'll have to sale your home based off that. Keep in mind, your realtor BPO and the BPO done by the bank isn't always the same, so the offer you receive from a buyer is just something you have to throw at the bank and see if the fish takes the bait. If not, they'll kick it back. Banks will never tell you their BPO because they want net or reduce losses as much as possible. Although your realtor feels the property is worth $70k but the banks BPO says its worth $40k and you get a 60k offer, the bank potentially is going to net $20k somewhere, but this isn't always the case. Most of the time the banks take a hit, but no where near as much as a foreclosure. If a bank foreclosure on a property with equity, banks will actually come out winners cause they pocket your equity and move on. Banks also have something called HAFA (Home Affordable Foreclosure Alternatives) in which they will pay you money to do the shortsale, but it's only on 1st mortgages. The average offer is $3000, and this is money to help you move and pay the rent for a while at your new place. Banks DO NOT mention this option most of the time and it's something you may have to request and constantly bring up.

PROS

- Your liquidating the home and avoiding foreclosure
- You're not responsible for the difference in the principle balance and the amount the home sold for as you are in a foreclosure
- HAFA is awesome

CONS

- The difference in the principle balance and the amount the home sold for is something you will have to do a 1099 on your taxes. Meaning if your household income was $100,000 and the difference in your shortsale and principle balance was $80,000, its going to look like you made $180,000 for the year and that is what you will be taxed off for the year
- Your credit report will read "Debt partially paid in full". This is not as bad as a Foreclosure report, but it still hurts
- You don't get to keep the equity in your home

SETTLEMENTS

Have a 2nd mortgage or HELOC (Home Equity Line of Credit) and you don't want it anymore? Just do a settlement. Offer the bank a minimum of 10% of what you owe on it and poof, its gone. Yep, its that simple.

PROS
- Who wants a 2nd mortgage anyways?

CONS
- Your credit report will read "Debt partially paid in full". This is not as bad as a Foreclosure report, but it still hurts

DEED IN LIEU

Ever heard those people say "I'm gonna do the cash for keys" thing? Not all banks due that, only one does if I remember correctly. If you don't want the property anymore, don't want to do a shortsale or just can't find a buyer, do a Deed In Lieu. This is giving the property back to the bank with no obligations in return financially. Also, what's cool is you can get WAY more money from HAFA (Home Affordable Foreclosure Alternative) doing this. Some borrower's get $7k-13k back from the banks to help assist with their relocation doing this option. Some investors like Freddie Mac require that you attempt a shortsale for 6 months first, while others do not. I highly advise you make this a last option to avoid foreclosure, see CONS for why. Also, you can't have any 2nd mortgages, liens or HELOCs against the property, those must all be settled before you can view this option. Also, the property must be 120% clean swept, no damages and you can't even leave that swing set you bought in the back yard. Must go with you.

PROS
- You are no longer legally liable for the debt
- HAFA

CONS
- You will have to do a 1099 tax form on the ENTIRE principle balance since the difference is zero dollars from a sale that never happened. So again, if you make $100k a year and the principle balance is $240k, you will be taxed on a $340k income for that year.
- The credit reporting is almost as bad as a foreclosure, good luck finding a new place to live if you haven't

DEED OF LEASE

This option is never mentioned and not even many people within banks know about it. This option is similar to a deed in lieu, except you can stay in the property up to a year after the deed in lieu takes place rent free until you find a new place. Your only obligation is to pay the monthly escrow of the taxes and insurance that is due unless advised differently from the negotiator. Great option, just same down falls as a deed in lieu. Sad part, HAFA is not offered for this option.

PROS
- You are no longer legally liable for the debt
- Live rent free for up to a year

CONS
- You will have to do a 1099 tax form on the ENTIRE principle balance since the difference is zero dollars from a sale that never happened. So again, if you make $100k a year and the principle balance is $240k, you will be taxed on a $340k income for that year.
- The credit reporting is almost as bad as a foreclosure, good luck finding a new place to live if you haven't
- NO HAFA

FORECLOSURE PROCEEDINGS

Based on certain state guidelines, when a property goes so fair delinquent, foreclosure proceedings will start. This is both bad and good, but more bad. Its good because certain investors will actually start to look at your hardship and assist you. Bad because now you can no longer make payments, why, because payments will change the initial money amounts of the foreclosure proceedings and attorneys will have to start all over again because the bank took your payment, which is good for you but bad for banks. Things like this allow you to live in your home rent free for a lot longer if that's your aim. Also, now you owe foreclosure fees and costs to the attorneys office, and if you want to reinstate (fully pay all that is behind) the loan, you'll have to pay the past due balance and the attorney fees. With most of the above programs, these fees are paid off in the completion of each one. Loss mitigation options can be done during this time even if a sale date has been set. If you are approved for any program during this time, the sale date will either be canceled or pushed back depending on the state you live in. In Texas, they just hold the sale date. Texas doesn't play with foreclosures, you go behind, be prepared to lose your home fairly quickly. No real PROS or CONS

FORECLOSURE SALE

- Know anyone who says they are just going to walk away from their house? Bad idea. The cons are so terrible based off what state you're in that everything you imagined a nightmare to be is going to come true. Wonder why bankruptcy always follows a foreclosure sale date? Because in most states banks can still come after you for the difference. No 1099 tax form is done. That money that's different from the principle balance and the foreclosure sale at auction you still owe. Banks will garish wages, siege your assets, and use EVERY mean necessary to get their money. This is not in all states.

PROS
- None

CONS
- Good luck finding a new home. No creditor will even consider you so find you a good significant other and hope they have good credit.
- The difference in the foreclosure sale amount and the principle balance the borrower can still be held responsible for

GOOD THINGS TO KNOW

- If you have to fill out a 1099 on anything for something like this talk with a tax consultant, they can reduce or even waive the amount.

- Filed a chapter 7 bankruptcy to avoid a foreclosure sale and now another foreclosure sale date is coming up? File Chapter 13 if you have to in a terrible situation. Multiple different bankruptcies can be filed in the same year.

- Chapter 7 > Chapter 13 if you don't have money. If you don't have much money in a Chapter 7, all unsecured debts are typically written off. If you do have money they will use those funds to pay off some of each debt. Secured debts are not written off. With a Chapter 13, its pretty much a repayment plan of all your debts.

Oh, this is gonna be good.....I'll grab the popcorn.

Information post updated

tl;dr

:thumbup:

Very informative post man. That's crazy. It makes me want to buy a house.

-Acree

Sorry for the late reply. My computer caught a virus from the infinite amount of porn my brother downloaded and looked up. He lacks the ability to do virus scans or delete viral cookies so I lose. So Bambi was right, I need to stop talking to idiot women. If one moregirl steps on my sideskirts its gonna be a b!itch slap buffet in this muther****er. They all complain about the seats taking their ass virginity and a few were like "zomg your car has a 180 speedometer its faster than a Lambo i bet". Sometimes i dont know if this is some horrible attempt to impress me or just pure idiocy at its finest. So now what I've decided to do is to is attend any and all car meets in the DFW area. This way i can not only network, meet new people, learn about all other kinds of cars but I can also find what kind of women attend these meets. Met tons of cool ones, but ofcourse they were either married or dating. Regardless, I now know where to find women who understand what "dont step on my sideskirt" without having to remind them each and every time they get in and out of my car.

Just not looking for women who find heavy interest in reality shows, music videos, dance shows and who not only wants to think outside of the box but tear it up too. Most people find heavy interest or "love" in others because they always fall victim to what I like to call the 3 Common Interest Law. This is the interest of liking people because the like to Eat, watch TV or Movies, and have Sex. People are famous for starting relationships based off these 3 things but when it gets down to hobbies or wanting to share them, thats when you really start to learn about someone and quickly learn how much they suck. I just love it when women tell me "omg I love video games" and Im like "holy **** really!?" only to receive the reply "yeah do you got Mario or Sonic???" Mario and Sonic are not video games, as I have told many, these are requirements to pass kindergarten. Then when they feel the relationship is about to end they attempt to learn video games and play with you ONLY to ask you what the X, triangle, square and circle stands for ( sorry guys the Playstation 3 > X Box 180) or why does the controller have so many buttons. Zzzzzzzz...

Wow. Tell us how you really feel, Krisko. :D

Also, car meets are not the place to pick up women. The chicks that go to those are bad news, trust. :lol:

While we're ranting, I guess, I'd just like to throw this out there. For the love of all that is good and holy, this "negging" bullcrap has got to freaking stop. Like, right now.

^ you know for a girl that likes video games so much your kind of attractive

Ahahahaha! :lol:

I used to tease the girls who would sometimes find their way into my group by asking "Hey, just out of curiosity...are you a typical gamer-girl...or are you hot?

That's telling, right there. I'm just going to go ahead and assume they didn't stay long.

Naah. Most were in on the joke. The ones that weren't were not really part of our main group.

It's just like how I used to tease my best friend's wife by standing in his living room and telling him "Dude, look. Just go to your wife, tell her to get back in the kitchen and get started on the housework, and you and yo' boy are gonna go hang and that's it." (Pause for effect) "She's behind me, isn't she?"