Foreclosure and Short Sales News

Posts Tagged ‘mortgage loan modifications’

Foreclosures and defaults continue to break records. A record nearly 12 percent, or 5.4 million American homeowners with a mortgage, were at least one month late or in foreclosure at the end of last year. Nearly half of homeowners with a risky subprime adjustable-rate mortgage were in trouble.

“The main message we want to send today is there are 7 to 9 million people across the country who right now could be taking advantage of lower mortgage rates,” Obama said in a photo opportunity in the Roosevelt Room. “That is money in their pocket.”

The Obama administration launched a new plan in March to provide $75 billion in incentives for the mortgage industry to modify loans to help borrowers avoid foreclosure.

To find out if you are eligible for Home Affordable Refinancing or Home Affordable Modification
and see how you can get help, visit the government website — http://www.makinghomeaffordable.gov.

Note that if you are still unable to make your mortgage payments after the refinance or modification, you may qualify for other programs, such as a short sale, to prevent foreclosure. To learn more about that, visit Short Sale Holdings.

Portions of article provided by Yahoo! Finance

The Home Saver Report is a Step By Step Guide for Home Owners to Prevent Foreclosure.

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Homeowners are desperate to prevent foreclosure on their homes, but very few homeowners know exactly what to do. There are over 40 different options to choose from when it comes to saving your home. Most homeowners know of one or two. However, you do not need to be an foreclosure expert and know every option.

You simply need to know what to do, what type of documentation is necessary, who to call and you need to know how to get results. You are about to learn how to modify your rate, payments, and more with no refinance costs, using our Free Loan Modification Report!

You will have access to a top company for refinances, who can discount your mortgage; sale lease backs to gain equity and lower your payments; loan modifications that clients in foreclosure have used to negotiate fixed rates as low as 5%.

Did you know that…

• You can have your adjustable rate mortgage converted to a fixed rate without refinancing or paying any refinance costs?
• You can get your lender to suspend your payments for several months so you can get caught up?
• You can get your back payments spread over the life of your loan, making a repayment plan actually affordable?
• You can actually get your payments and/or your interest rate lowered?
• There is even a special government program that will give you a second mortgage for all of your back payments, interest, and legal fees?
• You can sell your home for less than you actually owe on it?

Everything You Thought You Knew About Foreclosure is Probably Wrong

With a Loan Modification, your foreclosure is stopped immediately and you have a monthly payment that is actually affordable. The more options you know about, the better your chances are that you can save your home.

Also includes a Loan Modification Report, 101 Credit Repair Tips and a 2,000 Page Grant Guide. This same company has written training manuals for nationwide companies.

You need the Home Saver Report! Go get it…

When dealing with loan modifications to prevent foreclosure, a common misconception is that “What works for one, works for all”. Each case is different and must not be compared to any other situation. There are hundreds of companies out there promising the moon; the home owners will be the victim of them.

Lenders are calling home owners that are about to adjust and telling them they can POSSIBLY reduce their rate. These are telemarketers from the lenders who just make the calls, gather info and pass it along. It does not mean that the home owner has been offered any type of modification.

If the loan was obtained within one year ago, it is not usually possible to do a modification. A lender wants to see close to two years or more (depending on lender) with some good history. If a home owner had a bad paying record in this time frame, the lender will not be as willing to go towards a modification.

If a home owner has a thirty year fixed loan at 7.75% and tells you they want their rate lowered because they cannot afford it, a lender is not going to adjust an interest rate just because the homeowner over-extended themselves with other debt or signing for a loan they knew they could not afford.

The mortgage payment must be the hardship in regards to a rate reduction. If the home owner has $1,500 in monthly credit card payments, this would not be a hardship that the lender would accept towards lowering their payment. The home mortgage must be the issue.

If the home owner signed a mortgage at a very high interest rate knowing they cannot afford the payment, this is not an issue for the lender. They are not going to automatically lower the home owner’s rate. They must have good payment history with lender first. It does not matter what their mortgage broker or their Realtor told them. This is not a reason for a rate reduction.

If the home owner has a fixed rate loan with a high interest rate, but has had the loan two years or more with GOOD paying history, their lender may work on getting the interest rate and payments lowered.
Jim Hutchinson
Certified Loss Mitigation Consultant
Freedom Foreclosure Prevention Services