If you are one of the over 100,000 American homeowners to receive a Notice of Default last month - well, at least you are not alone! The Notice of D...
If you are one of the over 100,000 American homeowners to receive a Notice of Default last month – well, at least you are not alone! The Notice of Default (NOD) is the official start to the foreclosure process. It probably was not a surprise to you, as it usually takes about 90 days of delinquency before it is issued. But, it’s always a shocker, and never a welcomed event. This foreclosure process that you are now in will protect you even while it humiliates you.
So, don’t resent it. Rather, see it as a great chance to negotiate a workout that will really work. In 2010, to slow the rising tide of foreclosures, the federal government has pressured banks to modify hundreds of thousands of mortgages. Unfortunately, the banks are not doing so and the time and labor involved in getting a mod is onerous, to say the least. And, the majority of trial modifications are not being made permanent. So, don’t settle for anything less than a real fix. Get a mortgage modification arrangement that you can live with. You need a solution that will get you through this economic mess of the next few years.
When the NOD arrives, people ask:
What do I do next?! How can this get any more embarrassing? What are my options? What are others doing? Who can help me?
Those are reasonable. But, you should also be asking:
What are the tax implications of foreclosure? Can I get sued for the shortfall? How can I minimize the damage to my credit score? And, oh, yes…should we even fight to stay in this home or should we just let the bank have it?
You feel like your situation is unique, but there are tons of similarities to what millions of other are going through. So much so, that you will do well to hook-up with an active, knowledgeable and trustworthy lawyer or loan modification consultant to help you succeed. The advice that is suitable for the masses…is just too watered-down to do you any good beyond just “getting in line” with everyone else. You need the advice of someone who is succeeding at modifications every day.
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Are you currently attempting to adjust your existing mortgage loan with a loan modification? Are you wondering specifically what you should tell your lender? Do you wonder whether you should telephone or write a letter? If that’s the case, are you intimidated about what to write in your letter?
Certainly, your hardship should be explained via letter, however it shouldn’t be lengthy and drawn out. Bear in mind, the banks are getting tons of these letters, and they do not have enough time to spend reading lengthy, drawn-out sob stories. Your letter should be a maximum of one page; it must be clearly written; it must be concise and to the point. It must contain your account number, name, street address, and contact info. It must be addressed to your bank. Here’s a sample hardship letter:
To whom it may concern: I, (your name), ask you for a loan modification with a back payment and late fee waiver. As a result of circumstances outside of my control, I am unable to remain current on my mortgage payments to (your mortgage company). I’m requesting your help so that I may resume payments on my home and stop foreclosure.
Since (date the troubles started) I have sustained an increase in bills (describe cause for increase). Since (date problem started) I have experienced a loss in (describe reason for drop in income). In (date you became late on payments) I exhausted all my options and was not able to manage my loan payment. I am seeking your help in saving my house from foreclosure.
(Describe how you think the adjustment will help you in retaining your home. Explain how much time you feel your situation will last, and just how and why you feel it will improve later on.)
I am capable of (express when or how much you can make in payments or how much you are capable of paying in back payments if needed). (Say why you think it’s in yours and their best interest to work together on an agreement.
When folks first wind up in debt, they will usually ponder about foreclosure. Foreclosure is a major issue for people in debt, so it is reasonable they would have a few concerns. You’ll find many common foreclosure questions and answers, and this article will discuss about 2 of the most popular.
What Alternatives Do Individuals Facing Foreclosure Have? – This is one of the most common foreclosure inquiries. Folks want to know if they can prevent foreclosure, and the way to do it. You’ll find many alternatives for people facing bankruptcy. Bankruptcy, debt settlement, and debt consolidation are all excellent options. The most important point is to find out which option is best based on your financial circumstances.
Bankruptcy is the one choice that must be considered very last, however. Bankruptcy destroys credit ratings, making getting back on your feet after debt extremely hard. Debt settlement, however, enables you more flexibility on paying off your loans.
Exactly what Can I Do to Maintain My House? – This is one of the most important foreclosure q and a’s. To maintain your house, you should take action as soon as you get into debt. Most folks choose to ignore debt, since it stresses them out. This is one of the most unfortunate decisions you could do.
Ignoring your debt is not going to make it disappear. It simply makes it continue to build with nothing stopping it. The moment you see you’re in debt, call your financial institution. Explain to them regarding your situation, and work out a deal. In most cases, they will be willing to help you, because they don’t want to lose all the money they’ve let you borrow.
These are 2 of the most often asked foreclosure q and a’s. If you’re experiencing foreclosure, know that you are able to prevent it. If you do something as soon as you get into debt, you have a very good chance of maintaining your house. To begin, visit g.
The economy has pushed many hardworking families paying mortgages underwater gasping under the pressure of a foreclosure. It is the all-powerful weapon that terminates all rights of the homeowner thereby abdicating their property to the lending institution. The basis of inability to pay the mortgage may be varying like losing a job, may be a pay decrease due to the failing economy, high interest rates, sudden medical expense or a death of a bread-winner.
Homeowners losing their homes is not an isolated situation and the latest research points to a whopping 4 million or more this year. The government is trying to pitch in with the Home Affordable Modification program (HAMP).
The question in many homeowner’s mind these days is how to stop foreclosure.
The best available is a loan modification. This helps the homeowner set up a more affordable payment either by lowering the rate of interest or by increasing the term period of the loan. Lenders are not interested in people lose their homes. Lenders make their money by lending money and hence would much rather have mortgage loans paid. Therefore, most lenders are tickled pink to work with homeowners to renegotiate a repayment plan to keep people in their homes if and when possible.
The mortgage modification has the concurrence of both borrower and lender to the loan and generally the lender scrutinizes the background of the borrower before creating a new or better loan term. The circumstances that are looked into include the current pressing problem of the borrower, the ability to pay the loan, the amount that is owed, the equity in the property and if future positioning favors regular payment. There is no doubt that the financial state of the future will be a deciding factor. The borrower would have to demonstrate their mortgage payment history to prove there was a superior earlier record.
Restructuring a mortgage is absolutely possible if the borrower effectively conveys their situation through an application and a succinct supporting letter that entails the reasons of the present financial maelstrom and a plan to rectify the problem. These documents should be strengthened with income statements and or income tax documents of the borrower.
Save yourself from the headache of a foreclosure. Loan modification is the best alternative for the sunk, there is light at the end of the tunnel.
The Law Offices of Janian and Associates is a Real Estate Litigation law firm. As many as 6 million families are expected to face foreclosure in the next several years. The Law Offices of Janian and Associates is a Real Estate Litigation law firm.
For anybody who has a mortgage, understanding how home loan modification programs work nowadays could be important. That’s because the economy, being in the shape it is, is forcing many more people to look at modifying their mortgages than was the case in the past. Fortunately, there are a number of programs, both governmental and private (from lenders), for doing so nowadays.
There’s a mistaken assumption among many people that they won’t be able to qualify for a loan modification from their lender, but that’s generally not the case nowadays. This is because the federal government has stepped in and started up a special modification program aimed at helping people stay in their homes, paying mortgages that have been modified such that they reduce the monthly payment.
The first thing to realize about any sort of modification is that it’s basically asking the lender to rewrite the terms of the home loan. It has to be done such that a lower monthly payment results or there’s no use in applying for it, to tell the truth. At its heart, the lender will be agreeing to write down at least a portion of the home loan in order to ensure a lower payment, in other words.
It’s the case that most lenders wouldn’t normally be amenable to such an action but, with economic circumstances being the way they are, more are coming on board every day. They all understand that it’s better to get at least a little of a home loan than to get nothing at all if it goes into foreclosure, in other words. And, with the government now involved, lenders are a bit more at ease in doing so.
Many lenders have also set up their own private modification programs, which should come as welcome news. If a person holding a mortgage doesn’t qualify for the government version, he might be able to qualify for a private lender version. It might not have as generous a term setup as the government program, but it should still result in a lower payment nonetheless.
It’s always much smarter to contact a lender about a modification at the beginning, when financial hardship first begins to rear its ugly head, than at the end when the loan is so far gone and into default that there’s almost nothing that can be done about it other than foreclosure. Taking care of the issue at the beginning might also result in more favorable new terms than waiting, for what it’s worth.
It should also be understood that no small amount of paperwork is normally involved when it comes to applying for a modification. Even the government will require a hardship letter — in which one lays out why one can’t make the current monthly payment — as well as proof of income sufficient to make the new payment, if the loan is modified.
Because the economy has caused many people to enter into financial hardship to one degree or another there are several home loan modification programs now in existence. Just remember that, to qualify for any of them, there will need to be enough income to show that payment ability exists. As well, contacting a lender well ahead of time may also help.
Need street-smart tips on getting Visit Rockwood’s site about DIY Loan Modification at
Millions of American homeowners had tons of savings, boatloads of equity in real estate and a great high-paying job before the recession and nothing has changed (except their home equity has slipped a bit). This message is for them – congratulations.
Another millions of other American homeowners had not reached such financial heights before the housing market meltdown. Some of them are young, just getting started on wealth-building. Others are less fortunate or not as well-connected. Some are in the midst of personal calamity like a divorce, death in the family or are really sick themselves. Others are working in causes that distract them from wealth-building…things like church, the environment, helping the homeless, AA, etc. And, some just have vocational priorities like teaching or preaching or other fields that don’t pay well.
And, finally, another millions of other American homeowners participated in a horrendous and shameful scam that foolishly, greedily and sometimes fraudulently enabled them to borrow too much money from the banks who borrowed too much from Wall Street who borrowed too much from the world…oh, my!These characters not only used that money to purchase dwellings near and even in “good” neighborhoods way above their class but they had the audacity to actually move their families into them! Wow! Everyone seems to agree that these guys can be dealt with by foreclosure.
There are heroes and villains, struggling with foreclosure, in each group. In my work as a foreclosure consultant I get on the phone and across the table from hundreds of struggling homeowners each month. ‘The vast majority in three groups are heroes – Americans just trying to extend our heritage of restlessness and hope for a better life for our families.
I bristle when I hear the industry pundits pander to smug viewers by attacking the members of the financial lower class. Certainly there are as many housing crisis villains in the wealthy upper-class as in the struggling lower-class.
So, lighten-up on snootiness. Let’s clean-up the mess but be fair. The blame game should be blind to socio-economic class. Because the blame’s all around.
Want street-smart tips on foreclosure help and ways to get Visit Rockwood’s site about DIY Loan Modification at
Does situations in your daily life give you no alternative but to file bankruptcy? These types of tough economic times have pressured lots of people to do the same; if you involved your property in the bankruptcy or maybe if you just need to move to get a new job or get closer to family, or for whatever purpose, you might be wanting to know about securing a home loan soon after bankruptcy. This is the best way to do it:
For starters, allow time to pass before attempting to acquire a new mortgage. Around 2 years is the typically established amount of time for many financial institutions to start considering you for a mortgage once again. Those 2 years provide you and your prospective loan providers time to take stock of your circumstances and indicate that you’ve had sufficient opportunity to bounce back and begin your own personal financial recovery.
Second, make sure to pay all of your bills promptly. Through this tough time period, it may be difficult to assure timely bill payment, despite having the help you obtained from your bankruptcy. Nevertheless, it is extremely crucial.
Also, you’ll need to ensure that anyone who’s receiving payments from you is accurately reporting your good standing to the credit bureaus. Acquire your annual free credit report, or perhaps even fork out a couple of bucks to get one more regularly than that. Should you be paying your bills punctually, but no one can see that, it’s just a good thing wasted.
Last but not least, begin obtaining the resources to offer a down payment. Whenever my credit rating was good, I didn’t require much of a down payment at all; at this point, however, following my bankruptcy discharge, if I need to purchase a house again, I’m going to require a significant amount of cash to pay down. You might, too.
For that reason start conserving as much as you can out of every pay. Pretty soon, you will be in a position to obtain a home mortgage and buy a house of your own.
The re-default rate of loans modified in the first quarter of 2009 was 51.5 percent by the end of the year, according to the Office of the Comptroller of the Currency and the Office of Thrift Supervision.
Assistant Treasury Secretary, Herb Allison gave his opinion. “Borrowers were more likely to re-default when their monthly payments aren’t reduced enough in modifications to make staying in a home affordable. Our data show that when you reduce payments by 20 percent or more you have a tendency for lower re-default rates,” he said.
This is bad news. If you are looking for Jacksonville Loan Modification Help, don’t become a statistic. Here is why this is happening. Many homeowners get desperate and accept a loan mod they can’t afford.
Are you negotiating with your lender to reduce your monthly payment? Before you start, run your budget. Figure out what you can afford to pay each month. Decide on the highest monthly payment you will accept. Draw a line in the sand. If you can only afford $800 a month, then don’t accept a $1,200 payment.
The second loan modification is much harder to obtain. Lenders are reluctant to reduce your payment a second time, because they think you will default a third time around.
Review all your options to avoid foreclosure. Research your local housing market. Many people have been able to rent a house for much less than their mortgage payment. Here is one example. A couple owned a house with a $1,400 monthly mortgage payment. The home’s value had dropped by 50%. Their lender wouldn’t reduce their payment.
They found a nicer house to rent for $850 a month. This is one option. If you want to keep your home, you need to negotiate for a payment you can afford. Do not let your lender push you into an unaffordable payment.
Not being able to afford your home is tough. You are stressed out. You and your spouse might argue over money. You might think about your problems when you are at work, which might affect your ability to do your job. You then risk getting let go. Where will your lender be at that point? This is why it is in the lender’s best interest to reduce your payment where you can afford it.
Our loan modification kit has the information on how to make the argument. We show them that they will make more money by accepting your loan modification versus foreclosing on the house. They’re in the business of making money, right? That is why this strategy works. Get more info at
Thanks for reading this, Chris Curry.
Chris is a real estate agent at Keller Williams Realty.
Phone: (386) 719-2330.
Want to find out more about , then visit Ben Curry’s site on how to choose the best for your needs.
Last year, we spent tons of time with clients to figure if they qualified for a mortgage modification. In 2010 it takes us about 10 minutes and is nearly perfectly accurate. It’s because the banks have become so very standardized and predictable.
Standardized – The Making Homes Affordable Program (MHA) Guidelines have become the standards. Other programs are modeled after the MHA. None of the other programs are as rich and all are harder to get. But the guidelines have become universal.
I say predictable because the sheer numbers of applications has forced the banks to routinize everything – including erroneous rejections – to a point where it is pretty obvious to us veteran loan mod freaks.
You’ll get a mod if 1) you have a typical hardship (income down, expenses upduh!), 2) your loan qualifies (non-jumbo, made before 1/1/09), your ratios are right, 3) you live in the home, and you are in default. That’s not to say that landlords have no hope they just have less likelihood of approval and should have lowered expectations.
Don’t mistake qualifying with getting approved! Thousands of qualified applicants get rejected every day! Being qualified is just the beginning of the journey. You have to know how to navigate this bureaucratic, convoluted, administriviated maze (don’t bother to right-click – I made up that word!). You can’t do that with advice crafted for the masses – advice you get from the banks themselves or from the government. You need to get advice from a source that has actually succeeded in getting throught he maze – time and again.
You should have the advantage of an insider, a street-smart advisor who has been at the game table for a long time. Someone who is unabashadly on your side – not a government entity and certainly not a bank employee or site. If you follow the advice of the government or bank sponsored entities you can only expect to get info tailored for the masses. That’s like going into a street-fight with training in only boxing. You are totally unprepared when the opponant kicks you in the ear! You’ll have to pay for such advice. But, you get what you pay for.
Interested in street-smart tips on Visit Rockwood’s site about DIY Loan Modification at
It’s just part and parcel of the mortgage modification process in 2010 – REJECTION! Lenders can’t deliver performance levels that satisfies anyone in spite of over two years of work and over eighteen months of financial incentives from the President’s Making Homes Affordable Modification Program (HAMP). Even well qualified applicants are getting rejected. Sometimes, more than once.
But, I have come to think that rejection is a very good sign! A review of my files over the past 6 months shows that not one single mortgage modification was granted without a prior rejection. That’s right, every one of the modifications I have completed for clients in 2010 has been rejected before being accepted. Even the ones that began with the encouraging Trial Modification resulted in a rejection of the Permanent Mod before final acceptance. Some of the mortgage modifications I have successfully managed were rejected as many as three times before we achieved the modification. Whew!
The application process alone is daunting. Then, weeks of follow-up is required to keep the application on-track. Now, in addition, homeowners must also become expert at overcoming the rejection objections that lenders throw in their way. That means being able to tactifully escalate problems to supervisors, managers, directors, VPs, and CEOs. That means being able to mobilize local congresspeople, regulatory agencies and even the press! It’s a challenge!
But, hey, quit with the whining! That is the way it is – so cope! You will get rejected for one of about two dozen common reasons. Sometimes I think they are posted as a type of “cheat sheet” on the computer monitors of new Loss Mitigation Agents. Things like “Your loan investor does not participate in modification programs”, “Failed the NPV calculation”, “Income too high”, “Your income is too low”, “You have too many assets”, “Your 4506-T has expired”, “Your Ratios are wrong”, “You did not provide updated docs”, “We need a note from your mommy (O.K., I made this one up!)”, and etc., etc., etc.
All of the reasons above can be valid. Sometimes they are. But, all too often, they are simply erroneous, and are the result of the lender having mismanaged the file or simply untrue statements that slow or end the application process if the borrower does not object. So, when you get rejected, press on. At least you’re not being ignored! Immediately demand (nicely!) an explanation of exactly why you were rejected. Go through several agents and escalate to a supervisor if you must to get the answer. Then, deal with it. Supply the missing document or sign the updated form or correct the data entry error on your income (No, it’s not $85,000 per month. It’s $850!) or do whatever it takes to get them back on track. You can request reconsideration when you submit the information or correction to the agent.If you have submitted a good and accurate application upfront, you will eventually be accepted and get the relief that the mortgage modification programs were intended to provide.
Take heart. What is worse than rejection is the months of total disregard and that most of us get in the mortgage modification process. It’s not likely to change anytime soon. Mortgage modifications will continue to be a great way to throttle the foreclosure rate and they are a great way for homeowners to get some relief. It’s just taking a lot more perseverance and nerve than it should!
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