Mortgage Loan Modifications

Posted on January 11th, 2011 by

What should owners of homes know about dealing with today’s economy? The new words of “Short Sale”, “short refi”, “Loan Mods” and “Loan Mortgage Modification” are new terms that homeowners never thought they would need to hear or understand what they mean in order to possibly save their homes or their credit. No one planned for such a drop in home values and such a rise in costs.

With all the new terms and with all the sever changes in this economy, it is no wonder that homeowners fear doing anything when they are faced with financial hardship. Homeowners need not longer fear these terms and more importantly understand why loan modifications and short sale refinancing may make the difference between a homeowner keeping their home, avoiding bankruptcy and saving their credit.

We all heard about the great “bailout” of 2008 which congress passed that was to help control the foreclosure problem while encouraging new lending of home loans by banks and mortgage providers. We all heard both the pros and the cons with our government bailing out several banks, insurance companies, financial institutions and etc. However, the biggest pro for homeowners will come from this bailout. The pro is that mortgage companies are now starting to stop foreclosure sales, short sales and going back to the owners to modify their loans so to allow them to keep their home irrespective of their failure to pay their mortgage payments. Therefore, debtors will begin to see an order of process for homeowners to fight to keep their homes in these unprecedented times of financial suffering.

A loan modification will be likely the first step for homeowners to consider. A loan modification is simply a homeowner asking the mortgage company to modify the current terms of their mortgage. Homeowners will ask a mortgage company to modify their mortgage because of being late on payments, variable interest rates, too high of monthly mortgage payments and etc. Homeowners can seek this relief on their own directly with the mortgage company. However, the process is very time consuming and often frustrating for a homeowner. It recommended that you hire a law firm to help get you through the process.

If a homeowner cannot pay the loan modification that was negotiated with the mortgage company, a Short Sale may be the next option. A Short Sale is simply the sale of a home for less than the value of the mortgage owed on the property. It is no secret that most home values are much less than homeowners purchased their homes. Short Sales are a good option if the homeowner simply does not want to save their home and needs to get out from underneath the debt of the mortgage. The best part of a Short Sale for the homeowner is that any amount due owing to the mortgage due to the shortness of the sale the homeowner is released from liability coupled with a release of tax liability pursuant to the 2007 mortgage forgiveness relief act.

One very important point is that mortgage companies today are requiring that loan modifications be conducted first and attempted by the homeowner before they will even consider a Short Sale.

What is the gist of the forgoing? If you are struggling with debt; if you are inundated with creditors calling; if your home is in jeopardy of foreclosure, or simply feel overwhelmed by your financial responsibilities, there are a number of potential debt relief solutions at your fingertips.

As always, all situations relative to a strategy for bankruptcy and lien stripping should be discussed in detail with a bankruptcy attorney to understand all your avenues open to you.

Michael Goldstein, Esq.

Consider Renegotiating to Stop Home Foreclosure!

Posted on January 11th, 2011 by

I just spoke to a small business man who found one of my “we buy houses” ads.  He wants me to step in to stop home foreclosure and take his house.  I discussed it with this gentleman for little bit.  He has got a similar story to most of the folks I talked to who are in a pre-foreclosure state.  He’s not yet behind on his payments, but he will be soon unless he gets some relief from his mortgage.  He needs some kind of bailout plan. He wonders, if the big companies all got a bailout, why don’t I get one?  Not knowing what to do he calls me and asked me to buy his house.  He gives me the opportunity to buy his house for no money down.

His house is in a small, working class town.  The payment is quite reasonable, if not a small payment for somebody who’s in business.  The payment principal interest taxes and insurance is just over $1100.  He did have some equity in it when the market was up but now that the market is down is about even with his mortgage.  How do we bail this guy out of his mortgage?   His initial thought was, “I’ll sell my house to Mark.  I get out of the house, and then I don’t have to worry about that foreclosure issue.   If we do it pretty quickly, I won’t fall behind in ruin my credit”. 

I continued  asking the standard questions , the ones about, how large is the house,  How many bedrooms, how many baths, what’s the size of the lot, how old is the house, how old is the roof, tell me about the plumbing.  Then I get into some other questions, the ones that you need to consider if you’d like to stay in your house, and you’d like to figure out how to bail out the mortgage or get the bank to stop home foreclosure now. 

The next question I asked him was, “where are you going to move?”  He told me he was going to need to rent something and I asked him how much rent would cost him in the new location.  He felt $700-$800 a month to rent a house of the appropriate size.  Since he’s a small business person, just any old house won’t do!  He needs to have a place to park his truck and a garage to store his equipment. Without a large enough garage and room for the truck, he will have to rent space for that, negating his savings.

Then I asked him if he refinanced in the last three years.  This is a critical distinction because a homeowner may have certain rights that expire three years after refinance.  This is a major tool we can use to stop home foreclosure.  As it happens, he had refinanced a year ago with GMAC.  Now we are getting somewhere.

I want to know if he would stay in the house if he could afford it.  It may seem like a silly question, but some folks have already given up by the time they call me and the only thing left is for me to do is buy the house.  In the case of this gentleman, he would stay. 

Now I want to know how much he can afford to pay monthly for his housing.   He tells me that he could afford the $800 mentioned above, moreover; if he can suspend payment altogether until March 1st, he will be able to afford the whole thing!  He knows that his business will turn around in the spring, not only because it is his busy season but, he has contracts already sold and scheduled to begin then.

The next question is the coup de gras. “Mr. Seller,” I ask. “Have you tried to RENEGOTIATE your mortgage?”  He responds, “I can do that?” Well, in a word, yes!  It amazes me how many people in the USA need to stop home foreclosure and never think of renegotiating.

It is clear from the conversation with this gentleman that he may not need me. At least, not yet. 

Mark Elkins

How to Stop Foreclosure in our Senior Years and Stay in Your Home for Life

Posted on January 11th, 2011 by

How to stop foreclosure in our Senior Years

 

The fact that foreclosure are in massive proportions throughout the United States is a huge problem. The biggest problem is that a large portion of them are seniors over the age of 62.

 

With seniors it is a big problem, simply because they do not have the time to rebuild themselves over years. They cannot go out and get a new career like someone in their thirties or forties. They are stuck in trying to figure out where they are going to get the money to payoff their mortgage.

 

But let’s take a look at how we got where we are with seniors have mortgages that in most cases are over valued in the first place.

 

Take Jim and Mary Sue they are 68 and 72 respectively, in 2004 Jim had health issues he needed a double bypass and also was told he had cancer. They have supplemental health insurance and medicare. Medicare unfortunately is designated as their secondary insurance.

 

When Jim went into the hospital and had the life saving surgeries they thought their insurance would cover them for the entire bill. But as soon as Jim cam home to recover they started getting bills that their insurance did not cover. The amounts that they received was more then they had in the little savings and certainly more then their small pension and Social Security they were receiving. (So what were they going to do?) All they had was their home, which was paid off.

 

Since the mortgage industry in 2004 was very liberal and they had great credit they call a mortgage company and applied for a $150,000 mortgage and they were approved. They went to closing and received the money and were able to payoff the bills. (Sound perfect all of the medical bills were paid)

 

A few months went by and they were paying the mortgage payments out of the money they had set aside after paying the bills. But one day they got a letter in the mail; that told them that the pension they were receiving was in trouble since they had invested in the company that Jim had worked for the 35 years. Jim called the pension fund and they told him that he was loosing over 75% of the monies that he had been receiving.

 

Now they only had a little over $1,800 per month coming in from all sources. The mortgage interest was now adjusting and the payment was going to go up to $1,500.00 per month. What were they going to do with only $300.00 per month of spendable income?

 

So now that Jim was on medication totally over $300.00 per month outside of the insurance and Mary was also on medications for around $150.00 per month. The money that they had in the savings was going faster then their electric meter.

 

Jim and Mary Sue heard a TV commercial talking about Reverse Mortgages, so they called the number and received the information. They thought our home is worth more then the $150,000 with owe, we can get a Reverse Mortgage and that will free up more money.

 

Here is where the problem really got worse, they Reverse Mortgage specialist came out to the house and went over the program in detail. All the time they were thinking this is our salvation, we will be ok, and this will put another $1,500 per month in our hands. The problem which they were not aware of is that it is now 2006 and values are starting to go down in their town.

 

The Reverse Mortgage Specialist had done a brief search of value and the home that Jim and Mary Sue had worked their entire life for was not worth only $125,000. As the specialist look at the information he found that the loan officer had, had the house over appraised back in 2004, just to get the loan approved. (Not uncommon for the times) So now we have a real problem, we have a loan of $150,000 and a home only worth $125,000. What can be done to help them in the hour of need! At this point Jim and Mary Sue are three months behind on their mortgage payments and they are receiving foreclosure notices. Jim is having heart palpitations and they are not sleeping at night.

 

Since they are now in trouble they really though since the loan officer who did the mortgage for them had only given them a loan for about 60% of the value that they could go and get an equity loan, but they were told they did not qualify. (Mortgage Industry had changed over the last two years)

 

They were now sitting at the table with the Reverse Mortgage Specialist and he was telling them that they did not have enough equity in their home to even get a Reverse Mortgage. This was because the home had been over values back in 2004 and now it was not even worth what the owed. Now here is the good news!

 

Fortunately; they are now sitting with someone who is an expert in Reverse Mortgages and is dedicated to helping seniors. Not to mention that this person has the experience to work out a problem.

 

What was the plan that would get them out of their problem?

 

The specialists plan was to speak with Jim and Mary Sues Mortgage Company and try to work out a bailout. He explained the situation to the bank and also offered them a market analysis from 2004 showing them that they had over valued the home at that time. In addition; he also had a current appraisal completed. In showing the bank that they in fact did not act on good faith back in 2004 that in less they wanted to have to spend a lot of money and time to foreclose on the property, not to mention throwing two Senior Citizens out in the street, they would have to work out a short payoff. The specialist showed the bank what Jim and Mary Sue where trying to do with a Reverse Mortgage.

 

Since the value of the home had dropped so significantly, the specialist was able to get the bank to except the amount available from the Reverse Mortgage as full payment. Jim and Mary Sue were able to save their home from the Sheriff Action sale.

 

This is not to say that this is going to happen each and every time, but the fact is having a specialist who understands the situation and markets, can figure out a solutions that is best and work to help provide a solution in many cases.

 

If a senior is in this type of situation; they need to seek out the right advice they Revere Mortgage is more they a source of additional monies, it can be a home saver.

Tim Robbins

$500 Stop Austin Foreclosure 512.318.2640.[

Posted on January 11th, 2011 by

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Stop Foreclosure Saratoga – www.518WeBuyHouses.com

Posted on January 11th, 2011 by

www.518WeBuyHouses.com – Need to Stop Foreclosure We buy houses anywhere, any condition, any situation for cash. We are NOT realtors, just local investors in the New York capital region of Albany, Schenectady, Saratoga, and Troy…We pay closing costs!

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Stop Foreclosure Wilmington, NC | 910.538.3663

Posted on January 11th, 2011 by

http://www.sellhousesnc.com. Stop Foreclosure in Wilmington, NC. 910.538.3663. Are you behind on your payments? We have extensive experience in Loss Mitigation and short sales in North Carolina. Give us a call for a FREE, No Obligation consulatation.

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Stop Foreclosure Dayton Ohio-www.HurryStopMyForeclosure.com

Posted on January 11th, 2011 by

Stop Foreclosure Dayton Ohio-www.HurryStopMyForeclosure.com – 937-754-1111. Are you behind on your Mortgage Payments? If so we can work with your bank to negotiate your debt and perform a short sale…

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Stop Foreclosure York PA

Posted on January 11th, 2011 by

Stop Foreclosure York PA – Mikk Sachar of http://9daysOut.com Reveals in FREE Report How to stop foreclosure and sell your house fast. Get immediate results now!

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Unfair Loan Practices: Where can I join a Class Action against US Bank & Wells Fargo Trust?

Posted on January 9th, 2011 by

Downey failed and was bought by US Bank. US Bank states that Downy sold my loan to a “Secondary Market Investor” after the loan was originated, which turns out to be Wells Fargo Trust. It was sold into “Scrutinized Trusts.” US Bank is the Servicer, Wells Fargo is the Master Servicer. They are telling me although I qualify for the HAMP loan modification which is a Making Home Affordable program, they have to deny me help because the loan was sold and the agreement with the new owners of the loan is to offer no loan modification to me under any circumstances. — I feel this is just their way of burying the bad paperwork and getting the house out of my hands and into a new package with someone new so I will go away and the bad paperwork won’t have to be dealt with. — I found in my County’s Recorders office no other paperwork has been filed with the County to show a new owner, which apparently is the Wells Fargo Trust. Only the original Downey Note Claim from 2005. Since then, the loan was sold and assigned to Wells Fargo Trust & US Bank. There are no records from either bank with my County’s Records office. So if US Bank and Wells Fargo Bank tried to Foreclose on my house, well, are they really the Owners? Do they have the right? Did they even have the right to sell my loan to a Trust? I’ve owned this house for 10 years. I did a refi in 2005. Now this. – I am a victim of The Banks being greedy and giving so many loans in 2005, 2006, 2007 during the boom and to lessens their processing load, they sold my loan like a poker chip for less than it’s worth to a Scrutinized Trust. These banks don’t want to help people with these sold Trust loans because the Banks make MORE money off foreclosing a home rather than helping the “owner”/Loan Bearer into a more affordable loan. They get Reimbursement money off of their Insurance Policy that they Hold in case the borrow defaults on their loan. That is another reason why they deny Short Sales by the way, because they make Insurance Money off Defaults and Foreclosures. They won’t even offer a forbearance. The greedy banks caused this economy problem in the US. They affected the Companies and companies had to lay off people. Well I am in HR – Staffing Manager and Senior Recruiter and was laid off during this economy crash, they caused me to loose my job in a RIF with half of my company. When there are no jobs, who needs a Staffing recruiter? I was out of work for over a year. I spent my whole savings trying to pay my bills and save this house. Now I have had a job for 6 months making Half of what I made before in my job of 3 years that they caused me to loose. Now that I can pay and keep this house, they are denying me help! This is absurd! So I would like to find a Class Action suit I can join to try to stop this Foreclosure and have my Loan Payment plan be adjusted permanently or temporarily so I can be helped. Please advise me to the contact the right people! I want my old life back! If I can’t get it, then at least help me get the help the US Government set up and asked the banks to promote, which is a HAMP Loan Modification under the making Home Affordable Program. Shame on you Downey, US Bank and Wells Fargo Trust! —- Any direction, contacts, web sites that you can suggest to me to help would be so appreciated! (P.S. I have sent a QWR and other docs recently… so I have that in process. Loansafe.org has been somewhat helpful in info) I need to find a lawyer to help me get leverage over the banks to leverage them in to granting me my HAMP Assistance! Thanks!!!!

I feel your pain, I talk to people in situations similar to yours much more than I would like.

The problem with HAMP is that it is voluntary for the lenders, they are under no obligation to participate.

The horses are already out of the barn, we bailed out the banks and they in turn are not under much scrutiny or requirement to help keep people in their homes.

Yes, they can sell your loan. They do it all the time.

I do not know of a solid lawyer or firm that is taking up this charge. Why? Because there is very little they can do. What the banks are doing is wrong, but it is not illegal.

I would suggest you keep hammering on your lender for a modification.

The Truth About Stopping Foreclosure in Salt Lake City, Utah

Posted on January 2nd, 2011 by

If you want a solution to your foreclosure problem, and you want to stop foreclosure in Salt Lake City Utah, then you need to watch this short video and download the free report on How to stop foreclosure in Salt Lake City Utah.

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