oan modifications are designed to help homeowners facing a hardship save their homes from foreclosure by offering lower monthly mortgage payments. The loan terms are changed by lowering the interest rate, extending the loan term, possibly some mortgage forgiveness or changing the loan from an ARM to a fixed rate loan. If you are facing a hardship and interested in a loan modification you may feel overwhelmed with the thought of negotiating a loan modification agreement on your own. You may think you need expert advice. There are lots of loan modification companies these days that are willing to assist you, but it can costs thousands of dollars. Most homeowners who are struggling to meet their monthly mortgage payments don’t have that kind of money available. Don’t panic. If you can’t afford to hire a loan modification company you can negotiate your own loan modification by contacting your lender directly. Here are a few tips to help you get started.
Tip #1 The secret to a successful do it yourself loan modification is knowledge
If you take the time to become knowledgeable about the loan modification process you will greatly increase you chances of having your loan modification approved. Take time to research loan modifications and understand what your lenders criteria and guidelines are before applying for a loan modification.
Tip #2 It is critical that you prepare an accurate and compelling loan modification application
Your loan modification application will make or break your chances of getting your loan modification application approved. You must submit an accurate, complete and compelling application to get your loan modification approved. Don’t worry though, your lender will provide a checklist of everything that needs to be provided. If you have taken your time to understand the loan modification process and your lender’s guidelines your next step is to fill out the application forms and provide the supporting documents that your lender requests. You will need to prove that you are facing a financial hardship and that you will have the financial means to meet your monthly payments on time under the modified loan agreement.
Tip #3 There are more options and incentives for loan modifications available than ever.
The federal government’s new $75 billion Homeowner Affordability and Stability plan recently introduced by the Obama administration is providing incentives to lenders to offer loan modifications to their borrowers. Borrowers will also receive incentives for making their payments on time. This should give you even more confidence that you can successfully negotiate your own loan modification agreement.
If you can’t afford the help of a loan modification company to negotiate a loan modification, don’t despair. Take the time to become knowledgeable with the loan modification process and be sure to submit a solid application and you will have an excellent chance of succeeding.
Loan Modification, Mortgage, Uncategorized
loan modifications
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
Freddie Mac on Friday plans to announce a first-of-a-kind plan that lets homeowners and tenants temporarily stay in homes in foreclosure by renting them back, an effort to stop many of the sudden evictions that have come along with the housing crisis.
The program will let thousands of qualified former homeowners, as well as families renting from landlords, enter into a monthly lease on their homes after they have been acquired by Freddie Mac through foreclosure.
Freddie Mac officials expect the program to help about 8,600 families in 2009.
The program gives homeowners and renters more time to find a new place to live and also keeps homes occupied. That’s a plus for neighborhoods where numerous foreclosures have led to empty, unmaintained, vandalized properties.
Click here to read the article
Loan Modification, Mortgage, Uncategorized
foreclosure, freddie mac, renters
If you didn’t think that the deserved to be bankrupt AIG’s abuse of taxpayer money was enough, now Citi joins them in the land of could they be any dumber.
The New York Post is reporting that Citi has in fact followed in the footsteps of AIG and well, spent taxpayer money on a unnecessary luxury.
Even though the bank’s stock is as cheap as a gallon of gas and it’s burning through a $45 billion taxpayer-funded rescue, the airhead execs pushed through the purchase of a new Dassault Falcon 7X, according to a source familiar with the deal.
The French-made luxury jet seats up to 12 in a plush interior with leather seats, sofas and a customizable entertainment center, according to Dassault’s sales literature. It can cruise 5,950 miles before refueling and has a top speed of 559 mph.
There are just nine of these top-of-the-line models in the United States, with Dassault’s European factory churning out three to four 7Xs a month.
Click here to read the nypost article
Uncategorized
abuse, AIG, Citi, taxpayer
The Press-Enterprise is reporting a 122 percent surge in default notices that begin the foreclosure process following a three month decline. Between the years 07 and 09, there was over a 300% increase in “Foreclosure-related notices” in Riverside county alone.
Between November and December, California saw a 122 percent surge in default notices that begin the foreclosure process, following a three-month decline, RealtyTrac reported Wednesday.
It was hoped that the law, which took effect in September, would provide time for the lender and homeowner to find an alternative to foreclosure.
Riverside County saw notices of default plunge by more than half in September, stay low for three months and then jump 126 percent to 4,729 in December. San Bernardino County saw the number of default notices increase 92 percent between November and December to 4,247, after falling as low as 1,500 in September.
Read the full article over at pe.com
Mortgage, Uncategorized
foreclosure increase, inland empire, riverside
As politicians and economists continue to forecast doom and grasp at inventive solutions to improve the financial quality of life for the average American and the large multi-national corporations that rely on the consumers, Alamosa County has seen little impact in the housing market.
The numbers of foreclosures in Alamosa County do not show much of an increase regardless of the economic recession. While 2008’s numbers are not finalized, it is clear that there is not much variation from 2007 or 2006.
In 2006, 41 new foreclosures were filed, 15 of which were withdrawn; 2007 saw 62 foreclosures and 28 withdrawals; 2008 ended with 57 foreclosures and 17 withdrawals. According to Lois Widhalm, Alamosa County Treasurer and Public Trustee, “The numbers say we’re down 5 [foreclosures], but we didn’t have as many withdrawn. The numbers did not change drastically.”
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Uncategorized
The flames of the foreclosure wildfire leaped higher in December, with Notices of Default rebounding from the stall caused by a California law (Senate Bill 1137), which temporarily slowed foreclosures by imposing new requirements on lenders, according to a report by ForeclosureRadar Inc. of Discovery Bay, which says it tracks every California foreclosure with daily auction updates.
With 42,421 filings in December, Notices of Default are back to the record levels reached in the second quarter of 2008, nearly doubling the 21,557 Notices of Default recorded in November.
Notice of Trustee Sale filings were relatively flat month-over-month. However, Notices of Trustee Sale are filed an average 116 days after the Notice of Default so a rebound in the coming months is likely, says the report.
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Uncategorized
foreclosure, NOD
