Loan Deals: News

LoanModNews on blogspot.com has a good article about ARM Mortgage Modification’s. From the article:

Lenders and the federal government have responded to this crisis and loan modifications are now an option for many holding an adjustable rate mortgage. A loan modification changes the terms of the loan so that the monthly payments are more affordable. This can be accomplished through lowering the interest rate, lengthening the payment term on the loan, partial principal forgiveness or changing a loan from an ARM to a fixed rate mortgage.

The federal government is encouraging lenders to offer loan modifications, particularly ARM mortgage loan modifications. The new Homeowner Affordability and Stability program even gives lenders a $1000 per loan modification to provide incentives for lenders to help troubled borrowers to help stabilize the mortgage industry and financial markets.

Loan Modification, Mortgage, Uncategorized

From the article:

“Question 1 What is a loan modification?

A loan modification involves changing the terms on a mortgage to make the monthly payments more affordable.  This may include lowering the interest rate on the loan, extending the length of the loan, or in some cases principle forgiveness.  The goal is to help make the monthly mortgage payments more affordable for a homeowner facing financial hardship.

Question 2 How do I know if I am eligible for a loan modification?

The main thing you will need to demonstrate to your lender is that you have the ability to make the new modified payments according to the terms of a loan modification.  You will need to provide proof of your income and a financial statement that outlines your income and expenses that shows that you will be able to meet the revised monthly mortgage payments.”"

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Loan Modification, Mortgage, Uncategorized Loan Modification, modification questions

San Bernardino, California - Attorney General Edmund G. Brown Jr. announced that three individuals have pled guilty to loan modification fraud against hundreds of “desperate California homeowners” and were sentenced to as much as 6 years of prison.

“While doing nothing to help and pocketing all the money, these individuals ripped off desperate California homeowners who paid thousands of dollars to stop the foreclosure of their homes,” Attorney General Brown said.

The defendants sentenced were part of a foreclosure scam engineered by the First Gov company, which was based in San Bernardino, California.

* Rosa Conrado, 51, of San Bernardino, was sentenced today to six years, four months of prison for 6 counts of grand theft.

* Alejandrina Maldonado, 33, of St. Lucie, Florida, was sentenced on February 26, 2009, to a three year prison term for one count of grand theft.

* Martin Jesus Flores, 33, of Baldwin Park, was given three years of probation today based on his limited participation in the scheme.

* David Giron, 44, of Ontario, and Saul Amador, 23, of West Covina are scheduled for a preliminary hearing on March 19, 2009, for theft, money laundering, and conspiracy.

* Three other members of the ring - Juan Jose Perez, 48, of Grand Terrace, Isuara Hernandez, 33, of La Habra, and Antonia Gonzalez, 66, of San Bernardino - are believed to have fled the jurisdiction and may be out of the country.

Read more…

Mortgage

Don’t Make These Do It Yourself Loan Modification Mistakes

A loan modification can really help if you are a suffering a financial hardship and having a hard time meeting your monthly mortgage payments.  You can successfully negotiate a loan modification yourself by dealing directly with your lender, but you do need to have the proper knowledge and present a compelling case for yourself.  Here are 7 do it yourself loan modification mistakes that you need to avoid in order to be successful at getting your loan modification approved.

Mistake #1 Contacting your lender about a loan modification without understanding how the process works or what your lender’s requirements are.

You need to become familiar with the loan modification process itself and also what your lender’s requirements are before you ever contact them.  Do some upfront research on loan modifications and also see if you can find any particulars about your lender’s criteria before contacting them.

Mistake #2 Hiring an expensive loan modification service

You can do a loan modification yourself so there is no need to pay huge fees to a loan modification company.  If you do decide to hire a service, make sure you thoroughly research a loan modification company’s background and credentials before paying any fees.

Mistake #3 Talking to your lender’s collection department

If the collections department contacts you, they are not the ones that can help you with a loan modification.  You need to speak with your lender’s loss mitigation department.  They are the ones that handle loan modifications.  The collections department simply wants to collect on a debt. They are not equipped to help you with a loan modification.

Mistake #4 Not writing an effective hardship letter

Your hardship letter needs to be concise and compelling.  It needs to describe your financial hardship and convince your lender that the reason you are behind on your mortgage payments are because the payments are too high given your financial situation.

Mistake #5 Preparing loan modification applications that contain errors or omit information

It is imperative that you submit an accurate and thorough loan modification application that contains all the information your lender has requested.  Mistakes can delay and even cause your application to be rejected.

Mistake #6 Requesting an unrealistic loan modification

If you propose a loan modification that doesn’t meet the criteria of your lender your request for a loan modification will most likely be rejected.

Mistake #7 Not submitting a complete loan modification application

If you are missing forms or proof of income requested by your lender your application could be rejected.  With so many requests for loan modifications these days, you need to be sure you submit an accurate and complete loan modification application.

Do it yourself loan modification is possible.  Do your upfront research, propose a realistic loan modification request that is in line with your lender’s criteria, and submit an accurate, complete, and compelling loan modification application.

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Good question. Many people try to avoid the costs of hiring a loan modification company; however, when they try to do their own modification they find themselves in uncharted territory of the mortgage and financial world. Attempting a loan modification without any knowledge of the process and lender requirements is risky and will likely result in a failed attempt. Once you have been denied a loan modification there is at least a ninety day waiting period before you can apply again.

There are a number of sources where you can access information about doing your own loan modification, such as the Department of Housing and Urban Development, on the web or using a loan modification manual. Your Basic Guide to Do-it-Yourself Loan Modification is a very useful tool to have when preparing your own loan modification package. This manual outlines the general format for which a loan modification should be presented. It is important to gather information on the loan modification process of your specific lender because each company has slightly different policies. After you have obtained this information start to get your documents in order.

Your Basic Guide to Do-it-Yourself Loan Modification provides you with a laundry list of all the documents that will be required by the lender. In addition, you must be able to demonstrate that you have experienced either and economic hardship, personal hardship or both.  This manual guides you through the process. Remember to be patient and calm when speaking with loan modification customer service representatives they ultimately hold the fate of your home in their hands.

Mortgage

President Obama is expected to unveil a $50 billion foreclosure prevention program tomorrow and new standards for modifying home loans. Frank Komornik just hopes it comes in time.

He is caught in what one non-profit called an “epidemic” of bad mortgage modification offers.
With two jobs and $6,000 in credit card debt, Komornik admits he probably should not have bought the house in East Meadow, Long Island. But the price was good and the broker offered a $10,000 signing bonus.
The bonus never arrived. Then he lost his night job. The mortgage was scheduled to reach $6,000, so when a mortgage broker offered to modify his loan for a $900 upfront fee, Komornik jumped at the chance.
The deal fell through. The broker said sorry and told him to try ACORN, a nonprofit housing group. The $400 refund check he was sent bounced, and now he can’t reach the broker, he said.
“I’m trying to work this out before it explodes in my face,” he said.
Similar horror stories have flooded South Brooklyn Legal Services and other nonprofits that offer free help to homeowners, said SBLS attorney Rebekah Cook-Mack.
“It’s an epidemic,” she said.

Mortgage

In an effort to aid struggling homeowners, Chase bank on Friday said it plans to open five counseling centers in Florida where advisors will meet face-to-face with borrowers to help them avoid foreclosure.

The Homeownership Centers will open later this month at yet-to-be determined locations in Miami, Aventura, Fort Myers, Orlando and Tampa, the bank said.

Once open, trained advisors will meet with borrowers who have mortgages serviced by Chase, Washington Mutual or EMC, which are all now part of JP Morgan Chase.

On Thursday, the company announced the opening of four such centers in California, along with plans to open 24 additional centers around the country by the end of March.

In late 2008, Chase announced efforts to modify the terms on more than $110 billion worth of residential mortgages. It expects to help more than 650,000 families.

On Friday, JP Morgan Chase and Citigroup said they would hold off on initiating new foreclosures until the Obama administration can design a wide-scale loan modification plan to keep millions of borrowers in their homes.

Mortgage

Financial Management Advisors, a loan-modification company, charges up-front fees of up to $2,500 to troubled homeowners looking for help escaping foreclosure. The problem is that state law bars companies from charging the fees, and the company isn’t providing the services it promises, a complaint states.

Company attorney Luis Gonzalez says the company helps people and has never committed fraud.

“They’re barking up the wrong tree when it comes to FMA,” Gonzalez said.

The company — which also claims to be connected with major mortgage lenders, including Fannie Mae, Countrywide Financial and Lending Tree — has no documentation to support its claim, according to the state’s complaint.

Read the full article here

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