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OPEN HOUSES OPEN HOUSES Sunday, January 6, 2013 OPEN HOUSES OPEN HOUSES Everything you need to find, finance and buy the house of your dreams January 3, 2013 Getting Home Above Water by Zoe Murphy 4101 Duplin Court, Sedgefield 11, Greensboro 5 BR- 4 ½ Baths: Priced Below Tax Value! Seller will consider lease purchase with acceptable time frame. tunning Transitional! ML MBR suite. Open and nuetral floor plan w/ multiple ceiling hts. In Ground Pool. 2 sided Fire Place. Finished Walk Out Basement with game room, sauna, 5th B/R and full Bath. Granite tops in open airy Kitchen, built-in speakers, multi level deck, sprinkler system, built in furniture and shelving, and much more! $494,900. From High Point Road, turn S. on Scotland, Rt. on Sprucewood, Rt. on Postbridge, Left on Gaston,Rt. on Duplin. OR North on Rockingham Road, Right on Gaston, Left on Duplin Court. Bobbie Maynard, 336-215-8017 The Waterfalls New community off Huffman Mill Rd, Burlington. Single Family Homes from the $160’s, Up to 2,957 sq. ft., Optional 3 car garage available, 10 Yr Quality Builders Warranty. New Model Home Open Daily. For exciting Fall incentives Call Scott Goodson 336-270-5230. Weatherstone – Community located in Kernersville. Single Family homes priced from the $140’s and Townhomes priced from the upper $120’s, 10 Yr Quality Builders Warranty. Decorated Model Open Daily. Call Sarah Draughn for exciting new incentives at 336-529-5507 Meadow Valley New community off of Skeet Club Rd. in High Point, Homes from the $160’s, Up to 3,054 sq. ft., Optional 3 car garage available, 10 Yr Quality Builders Warranty. Model Home Open Daily. Call Linda Weaver 336-886-7804 for exciting new specials! Stone Ridge - New community off Gibsonville-Ossipee Rd., Single Family Homes in the $130’s and One Level Townhomes from the $120’s, Community Pool, 10 Yr Quality Builders Warranty. Decorated Model Open Daily. Call Jenny Blythe for exciting new incentives at 336-4467465 While foreclosure activity in the US has dropped every quarter of the past two years, according to market researcher RealtyTrac, there are still homeowners who are underwater in their mortgage and looking for a solution. MFG Capital Group is stepping in across the country, including in the triad, to help. The company, in business for 20 years, specializes in loans for people that have mortgages that are greater than the appraisal value of their home, otherwise known as being “underwater.” Company representative Mel Jewell described MFG Capital Group as “a bridge loan specialty finance company providing short-term loans collateralized by real estate or other quick-sale collateral.” He explained that the bridge loans are designed as an interim solution prior to the client obtaining long-term financing. Jewell and MFG Capital Group are targeting the purchase and restructure of both residential loans and commercial loans. The company is focused on homeowners who want to keep their home, who have a loan of more than $417,000 and who are current on their payments. “When a homeowner is heading toward foreclosure, it can take anywhere from six to 18 months to get through the process before the bank takes the loan over,” Jewell said. What MFG Capital Group does is go in, buy the mortgage from the bank or mortgage company and help get the situation under control. “We help get the property below the appraisal price so if the homeowners want to sell the house, they are in a position where they can,” he explained. Jewell stressed that MFG is not interested in owning the underwater properties, however. “We want the people living there, or if it’s a commercial property the people who have rented the location, we want them to keep the property,” he said. The company can assist property owners whose loans are anywhere from 10 to 30 percent more than the For property owners who are current with their payments but with mortgages that are greater than the home’s value, MFG Capital Group can help. The company can renegotiate loans of more than $417,000 to below the property value, allowing owners to then remain in their houses or be in the position to sell it. property’s appraisal value. Jewell said he finds that it is still tough for people to qualify for mortgage loans with many banks. “It’s not like it was six or eight years ago,” he said. “We go in and negotiate with the bank or mortgage company and try to buy those loans. Most of the time we’re successful, and we get 60 to 70 cents on the dollar for the appraised price.” MFG Capital Group’s goal is to modify the property owner’s loan so they are now paying the property’s current appraised price and not the previous loan’s value. He cited one of MFG Capital Group’s case studies in Raleigh. “The owner had a total outstanding debt of $3,850,000, but the current market value of the property was only $2,643,000,” Jewell said. MFG Capital Group negotiated to purchase the loan for $1,665,000. They then worked to modify the owner’s debt from the original $3,850,000 to $1,850,000. This saved the owner $2 million on the principal. “The owner then carried a ninemonth bridge loan at 15 percent interest,” he said. “After which time, the owner obtained a refinance loan at 70 percent LTV [loan to value] for $1,850,000 at 7.25 percent interest, a 20 year amortization with a 10-year balloon.” Another example where MFG Capital Group was able to step in and help involved a property in Birmingham, Michigan. Jewell said in that instance, the owner wasn’t in default and had an excellent credit score, but while the property loan was for $1.2 million, the property was only valued at $1,050,000. “We negotiated with the bank and purchased the loan for $700,000,” said Jewell. This reduced the owner’s debt to only $800,000. MFG Capital then assisted the property owner with refinancing at 80 percent LTV in only 14 days. MFG Capital Group is able to offer underwater homeowners a fast turnaround as well. “We can negotiate with the bank normally in one to three weeks,” Jewell said. Homeowners are responsible for only two expenses – the property’s appraisal fee and the fee for the attorney who does the paperwork on MFG Capital Group’s purchase of the loan from the bank. Last year, according to Jewell, MFG Capital Group looked into more than 100 properties that were underwater. These residential and commercial (Continued on page 37)


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