A Debt Settlement Can Help You Get That Loan Mod!
The great thing about loan modifications and debt settlement is that they go hand in hand. Debt Settlement can be a great tool to qualify a client for a loan modification. It reduces their debt to income ratio, which can sometimes make the difference between a file getting declined or approved.
For More Info, go here: http://destroymydebt.net/matthews
Saturday, October 3, 2009
Thursday, September 10, 2009
What Banks Are Doing To Help...
I just found this article on Moneywatch.com.
Check it out, you’ll be amazed what the banks are doing to people who are trying to do their own loan mods! It's should be a crime!
MoneyWatch.com Article Here
Check it out, you’ll be amazed what the banks are doing to people who are trying to do their own loan mods! It's should be a crime!
MoneyWatch.com Article Here
Wednesday, August 12, 2009
Lucrative fees may deter efforts to alter loans...
"Lucrative fees may deter efforts to alter loans-many mortgage companies are reluctant to help strapped homeowners."
I wanted to share this article with you, it was posted in the New York Times.
It talks about how lenders may be reluctant to help homeowners in financial trouble because they actually collect a TON of fees on homes in foreclosure. Imagine that!
I'm sharing this because:
1. If you're doing any type of loan mods, it provides ammo for you when talking with prospective clients with respect to their lenders.
2. If you're doing short sales, I believe this is great news, because lenders would rather sell the house, as opposed to keeping it at a monthly loss because of a loan mod.
Here's the article:
http://www.msnbc.msn.com/id/32214198/ns/business-the_new_york_times/from/ET
Enjoy!
Sincerely,
Haven Matthews
I wanted to share this article with you, it was posted in the New York Times.
It talks about how lenders may be reluctant to help homeowners in financial trouble because they actually collect a TON of fees on homes in foreclosure. Imagine that!
I'm sharing this because:
1. If you're doing any type of loan mods, it provides ammo for you when talking with prospective clients with respect to their lenders.
2. If you're doing short sales, I believe this is great news, because lenders would rather sell the house, as opposed to keeping it at a monthly loss because of a loan mod.
Here's the article:
http://www.msnbc.msn.com/id/32214198/ns/business-the_new_york_times/from/ET
Enjoy!
Sincerely,
Haven Matthews
Friday, July 17, 2009
How To Get Paid For Making A Difference
I hope you had a chance to see the first couple of videos that David sent out.
There was an incredibleopt in response, and people want to learn HOW to do what David's been talking about.
He's also going to show you how you can get PAID to HELP people!
He's hosting a special webinar this Saturday, and you're invited to see ALL of the details.
Register for the webinar here:
http://bit.ly/NZiMZ
The webinar is Saturday the 18th at:
12PM ET11AM CT10AM MT9AM PT
If you're wondering how you can make a difference, help people that need it, AND get paid for doing so, you do NOT want to miss this webinar.
I know I'M excited to see everything, so i hope you make it!
I know it's Saturday, and we all like to relax on the weekend, but I guess so many people are asking for more info, David's decided to host this special webinar.
This will be excellent, and you'll be glad you took the short time to make it!
Register right away.
http://bit.ly/NZiMZ
There was an incredibleopt in response, and people want to learn HOW to do what David's been talking about.
He's also going to show you how you can get PAID to HELP people!
He's hosting a special webinar this Saturday, and you're invited to see ALL of the details.
Register for the webinar here:
http://bit.ly/NZiMZ
The webinar is Saturday the 18th at:
12PM ET11AM CT10AM MT9AM PT
If you're wondering how you can make a difference, help people that need it, AND get paid for doing so, you do NOT want to miss this webinar.
I know I'M excited to see everything, so i hope you make it!
I know it's Saturday, and we all like to relax on the weekend, but I guess so many people are asking for more info, David's decided to host this special webinar.
This will be excellent, and you'll be glad you took the short time to make it!
Register right away.
http://bit.ly/NZiMZ
Thursday, July 16, 2009
Debt Settlement: Pros & Cons
Debt Settlement: Pros & Cons
The advantages of doing a debt settlement is that you really can cut your unsecured debt and monthly payments dramatically, 50-60% even after you factor in the fees! Depending on the amount of debt, it usually doesn't pay to do it with less than $10,000, you will be debt free by the end of the program. Typically a program will run from 1-4 years, again depending on the amount of debt you have. As each debt is paid off credit repair immediatly begins to restore fico scores faster, not long after the program ends. In most cases it is considered a better alternative to bankruptcy. A debt settlement should not carry any upfront fees, it is the fastest, cheapest way to becoming debt free.
What is the downside to doing a debt settlement? If you're not in default already you will be; you'll be required to stop making payments to your creditors. You will, instead, make pre-determined payments to a special "holding" account. Hence, the settled accounts will be closed down and your credit will be negatively affected through the term of the program and shortly thereafter.
While you can cut your debt in half, make affordable payments and be debt free in a shorter period of time, you probably won't be receiving any credit card invitations and probably should wait to buy that new car or house. The poor credit standing would result in either of these cases, if you were behind in your payments, did a debt consolidation or filed for bankruptcy. The difference between a settlement and a consolidation is how much sooner you will become debt free because your debt has literally been cut in half with a settlement, not so much with a consolidation. For my money, I would go with a debt settlement over the alternatives.
Contact a representative who can assist you with Debt Settlement or Loan Modifications, inquiry at this site: http://www.modifymyloanmatthews.com/
The advantages of doing a debt settlement is that you really can cut your unsecured debt and monthly payments dramatically, 50-60% even after you factor in the fees! Depending on the amount of debt, it usually doesn't pay to do it with less than $10,000, you will be debt free by the end of the program. Typically a program will run from 1-4 years, again depending on the amount of debt you have. As each debt is paid off credit repair immediatly begins to restore fico scores faster, not long after the program ends. In most cases it is considered a better alternative to bankruptcy. A debt settlement should not carry any upfront fees, it is the fastest, cheapest way to becoming debt free.
What is the downside to doing a debt settlement? If you're not in default already you will be; you'll be required to stop making payments to your creditors. You will, instead, make pre-determined payments to a special "holding" account. Hence, the settled accounts will be closed down and your credit will be negatively affected through the term of the program and shortly thereafter.
While you can cut your debt in half, make affordable payments and be debt free in a shorter period of time, you probably won't be receiving any credit card invitations and probably should wait to buy that new car or house. The poor credit standing would result in either of these cases, if you were behind in your payments, did a debt consolidation or filed for bankruptcy. The difference between a settlement and a consolidation is how much sooner you will become debt free because your debt has literally been cut in half with a settlement, not so much with a consolidation. For my money, I would go with a debt settlement over the alternatives.
Contact a representative who can assist you with Debt Settlement or Loan Modifications, inquiry at this site: http://www.modifymyloanmatthews.com/
Mounting Frustrations with Mortgage Lenders
The homeowner featured in this article is not alone.
This scenario with their lender is more common than not. Here's just another reason why it pays to hire professionals to get your loans modified: "Loan modifications a struggle for Treasure Coast homeowners..." http://bit.ly/nQxWf
If you're one who can get the job done you may be able to save some upfront money, but, statistically speaking a real negotiator will probably yield better terms and lower payments for you in the long run. Having said that, there are less expensive options such as a forensic audit, a "do-it yourself" loan mod kit and debt settlement. Let's face it, a lot of people are going to need some help with this and giving them an 800 number for their lender isn't the kind of help they need.
Time is still of the essence, if you are headed for trouble, start dialing for dollars now, it's easier if you act before you receive that "notice of sale". If you are already in default, again, get professional help now. It doesn't cost anything to find out if you're eligible for a loan modification. It's not for everyone and not everyone is eligible, find out what your options are.
For more information, download this FREE ebook on Loan Modifications and other options to foreclosure.
This scenario with their lender is more common than not. Here's just another reason why it pays to hire professionals to get your loans modified: "Loan modifications a struggle for Treasure Coast homeowners..." http://bit.ly/nQxWf
If you're one who can get the job done you may be able to save some upfront money, but, statistically speaking a real negotiator will probably yield better terms and lower payments for you in the long run. Having said that, there are less expensive options such as a forensic audit, a "do-it yourself" loan mod kit and debt settlement. Let's face it, a lot of people are going to need some help with this and giving them an 800 number for their lender isn't the kind of help they need.
Time is still of the essence, if you are headed for trouble, start dialing for dollars now, it's easier if you act before you receive that "notice of sale". If you are already in default, again, get professional help now. It doesn't cost anything to find out if you're eligible for a loan modification. It's not for everyone and not everyone is eligible, find out what your options are.
For more information, download this FREE ebook on Loan Modifications and other options to foreclosure.
Wednesday, July 15, 2009
This Veteran is Making a Difference.
This guy is simply doing some amazing work.
He's a veteran and a prior service firefighter who's been able to make a huge
difference in communities by what he's doing!
Check out this great video:
https://alm.infusionsoft.com/go/alm1/a1069/
It's really quite impressive, and I think you should see it!
He's a veteran and a prior service firefighter who's been able to make a huge
difference in communities by what he's doing!
Check out this great video:
https://alm.infusionsoft.com/go/alm1/a1069/
It's really quite impressive, and I think you should see it!
Wednesday, July 1, 2009
US Credit Card Defaults Rise To Record in May
U.S. credit card defaults rise to record in May
By Juan Lagorio
NEW YORK (Reuters) – U.S. credit card defaults rose to record highs in May, with a steep deterioration of Bank of America Corp's (BAC.N) lending portfolio, in another sign that consumers remain under severe stress.
Delinquency rates -- an indicator of future credit losses -- fell across the industry, but analysts said the decline was due to a seasonal trend, as consumers used tax refunds to pay back debts, and they expect delinquencies to go up again in coming months.
"I find it hard to believe that it is really a trend. You need to see stabilization in unemployment before you see anything else," said Chris Brendler, an analyst at Stifel Nicolaus. "It is too early to see some kind of improvement."
Bank of America Corp -- the largest U.S. bank -- said its default rate, those loans the company does not expect to be paid back, soared to 12.50 percent in May from 10.47 percent in April.
The bank is paying the price of expanding rapidly in recent years and of holding one of the highest concentrations of subprime borrowers among the top card issuers, analysts said.
In addition, American Express Co (AXP.N), which accounts for nearly a quarter of credit and charge card sales volume in the United States, said its default rate rose to 10.4 percent from 9.90, according to a regulatory filing based on the performance of credit card loans that were securitized.
The credit card company also holds a large exposure in California and Florida, two of the states most affected by the housing crisis and unemployment.
Citigroup (C.N) -- the largest issuer of MasterCard branded credit cards -- reported credit card charge-offs rose to 10.50 percent in May from 10.21 percent in April.
"Charge-offs went up to record highs," said Walter Todd, a portfolio manager at Greenwood Capital Associates, referring to the entire U.S. credit industry.
Credit card losses usually follow the trend of unemployment, which rose in May to a 26-year high of 9.4 percent and is expected to peak over 10 percent by the end of 2009.
If credit card losses across the industry surpass 10 percent this year, as analysts and bank executives expect, loan losses could top $70 billion.
"Until lenders show stabilization then trend-bucking improvement over a several-month period, we remain bearish on credit card lenders -- and the U.S. consumer," said John Williams, an analyst at Macquarie Research.
"We continue to believe that macro challenges and credit quality concerns will pressure U.S. card issuers over the next 12 months," he added.
However, some smaller credit card companies such as Capital One Financial Corp (COF.N) and Discover Financial Services (DFS.N) reported defaults rates grew less than expected.
Capital One said its credit card default rate rose to 9.41 percent from 8.56 percent, while Discover said its charge-off rate increased to 8.91 percent from 8.26 percent.
JPMorgan Chase & Co (JPM.N) -- the second-largest U.S. bank and the biggest issuer of Visa-branded credit cards -- said its default rate rose to 8.36 percent in May from 8.07 percent in April, but it still holds the best performance among the largest credit card companies.
LOWER DELINQUENCIES
Among credit card issuers, Citigroup and American Express showed a third straight month of a decline in delinquencies in May. While the data was encouraging, analysts said it was too early to claim victory.
"Past May, seasonally it gets more challenging," said Sanjay Sakhrani, an analyst at KBW, as unemployment will keep rising and the tax refund effect will dissipate.
Credit card lenders are trying to protect themselves by tightening credit limits, raising standards and closing accounts. They have also been slashing rewards, increasing interest rates and boosting fees to cushion against further losses.
But that could come to an end soon. The U.S. government approved a law last month limiting credit card fees and interest rates, which is expected to tighten lending further and ultimately boost defaults as consumers find it harder to refinance their debts.
Bank of America's shares closed 2.8 percent lower at $13.33 on the New York Stock Exchange. JPMorgan was down 3.22 percent at $33.99, and Citigroup retreated 2.9 percent to $3.37.
American Express also surprised investors as it sold some loans that it had already written off, reflecting a partial recovery of such losses. Its stock ended 0.3 percent higher at $25.23 on the New York Stock Exchange.
(Reporting by Juan Lagorio, editing by Matthew Lewis)
By Juan Lagorio
NEW YORK (Reuters) – U.S. credit card defaults rose to record highs in May, with a steep deterioration of Bank of America Corp's (BAC.N) lending portfolio, in another sign that consumers remain under severe stress.
Delinquency rates -- an indicator of future credit losses -- fell across the industry, but analysts said the decline was due to a seasonal trend, as consumers used tax refunds to pay back debts, and they expect delinquencies to go up again in coming months.
"I find it hard to believe that it is really a trend. You need to see stabilization in unemployment before you see anything else," said Chris Brendler, an analyst at Stifel Nicolaus. "It is too early to see some kind of improvement."
Bank of America Corp -- the largest U.S. bank -- said its default rate, those loans the company does not expect to be paid back, soared to 12.50 percent in May from 10.47 percent in April.
The bank is paying the price of expanding rapidly in recent years and of holding one of the highest concentrations of subprime borrowers among the top card issuers, analysts said.
In addition, American Express Co (AXP.N), which accounts for nearly a quarter of credit and charge card sales volume in the United States, said its default rate rose to 10.4 percent from 9.90, according to a regulatory filing based on the performance of credit card loans that were securitized.
The credit card company also holds a large exposure in California and Florida, two of the states most affected by the housing crisis and unemployment.
Citigroup (C.N) -- the largest issuer of MasterCard branded credit cards -- reported credit card charge-offs rose to 10.50 percent in May from 10.21 percent in April.
"Charge-offs went up to record highs," said Walter Todd, a portfolio manager at Greenwood Capital Associates, referring to the entire U.S. credit industry.
Credit card losses usually follow the trend of unemployment, which rose in May to a 26-year high of 9.4 percent and is expected to peak over 10 percent by the end of 2009.
If credit card losses across the industry surpass 10 percent this year, as analysts and bank executives expect, loan losses could top $70 billion.
"Until lenders show stabilization then trend-bucking improvement over a several-month period, we remain bearish on credit card lenders -- and the U.S. consumer," said John Williams, an analyst at Macquarie Research.
"We continue to believe that macro challenges and credit quality concerns will pressure U.S. card issuers over the next 12 months," he added.
However, some smaller credit card companies such as Capital One Financial Corp (COF.N) and Discover Financial Services (DFS.N) reported defaults rates grew less than expected.
Capital One said its credit card default rate rose to 9.41 percent from 8.56 percent, while Discover said its charge-off rate increased to 8.91 percent from 8.26 percent.
JPMorgan Chase & Co (JPM.N) -- the second-largest U.S. bank and the biggest issuer of Visa-branded credit cards -- said its default rate rose to 8.36 percent in May from 8.07 percent in April, but it still holds the best performance among the largest credit card companies.
LOWER DELINQUENCIES
Among credit card issuers, Citigroup and American Express showed a third straight month of a decline in delinquencies in May. While the data was encouraging, analysts said it was too early to claim victory.
"Past May, seasonally it gets more challenging," said Sanjay Sakhrani, an analyst at KBW, as unemployment will keep rising and the tax refund effect will dissipate.
Credit card lenders are trying to protect themselves by tightening credit limits, raising standards and closing accounts. They have also been slashing rewards, increasing interest rates and boosting fees to cushion against further losses.
But that could come to an end soon. The U.S. government approved a law last month limiting credit card fees and interest rates, which is expected to tighten lending further and ultimately boost defaults as consumers find it harder to refinance their debts.
Bank of America's shares closed 2.8 percent lower at $13.33 on the New York Stock Exchange. JPMorgan was down 3.22 percent at $33.99, and Citigroup retreated 2.9 percent to $3.37.
American Express also surprised investors as it sold some loans that it had already written off, reflecting a partial recovery of such losses. Its stock ended 0.3 percent higher at $25.23 on the New York Stock Exchange.
(Reporting by Juan Lagorio, editing by Matthew Lewis)
Sunday, June 7, 2009
How Can You Become A Loan Mod Rep & Why?
I have been an Independant Contractor since 1989. So, working at home, being my own boss, managing my own time, budgeting my own resources, including but not limited to money, is nothing new to me.
I do feel somewhat qualified to recognize an opportunity when I see one. These economic times, will cause many to have to re-structure their lives. Many of my collegues in the real estate field, the mortgage field and my fellow Investors have all felt the pinch. Maybe you're among one of the recent statistics, unemployed, had hours cut or pay adjusted, or just tired of working two or three jobs just so you can maintain. This is an opportunity where you can affect real change, help stop foreclosures and help keep people in their homes. The number of ways and new companies created to stop foreclosures does not indicate that this is going to be a "flash in the pan" industry, but, rather a wave that will last several more years. Out of this need, a new industry has been created not just for Attorneys but for you and me, they need us to help them do their jobs.
Yes, I have real estate experience, yes, I can even describe what the closing docs mean and where to sign but, I could do this without all that and so can you. I may be more confident starting out because it's not unfamiliar ground, but more importantly, there are training videos, live weekly training and a live support team if I run into a brick wall.
I did a little homework before settling down and wound up choosing not just a company that could get the job done for the homeowner but, a company with an outstanding compensation plan for me. I'm pretty sure they are the only one's to offer it. To find out which company I finally chose watch the video intro and submit your request for more information. Learn more about the company, their program and their plan to help keep people in their homes.
I do feel somewhat qualified to recognize an opportunity when I see one. These economic times, will cause many to have to re-structure their lives. Many of my collegues in the real estate field, the mortgage field and my fellow Investors have all felt the pinch. Maybe you're among one of the recent statistics, unemployed, had hours cut or pay adjusted, or just tired of working two or three jobs just so you can maintain. This is an opportunity where you can affect real change, help stop foreclosures and help keep people in their homes. The number of ways and new companies created to stop foreclosures does not indicate that this is going to be a "flash in the pan" industry, but, rather a wave that will last several more years. Out of this need, a new industry has been created not just for Attorneys but for you and me, they need us to help them do their jobs.
Yes, I have real estate experience, yes, I can even describe what the closing docs mean and where to sign but, I could do this without all that and so can you. I may be more confident starting out because it's not unfamiliar ground, but more importantly, there are training videos, live weekly training and a live support team if I run into a brick wall.
I did a little homework before settling down and wound up choosing not just a company that could get the job done for the homeowner but, a company with an outstanding compensation plan for me. I'm pretty sure they are the only one's to offer it. To find out which company I finally chose watch the video intro and submit your request for more information. Learn more about the company, their program and their plan to help keep people in their homes.
How Much Will a Loan Modification Cost?
There is always more than one way to do anything but, with some things, you really do get what you pay for.
How much the loan mod will cost depends on who's doing it. The homeowner can do their own negotiations with their lender for free. There are government agencies that will help the homeowner do a loan mod, again for free. There are also Investors and Realtors willing to do it for a nominal fee and the chance for a short sale opportunity if it doesn't work out. There are also some experts in the mortgage industry that have added loan modifications to their repertoire when a re-fi just won't work. Their fees will vary, but on average expect from $500 to one month's piti, it shouldn't be any more than that, they may be experienced but they are not certified.
Attorneys are going to charge you more, expect anywhere from $2500-$6000 depending on whether the 2nd mortgage is also done.
Regardless of who the homeowner hires, there should be no pre-qualifying fees and there should be a 100% money back guarantee if the lender(s) declines the homeowners' file. There are other more subtle differences that relate to expediency. Some people appreciate the quick qualifying offered online over the full document submission required by most before ascertaining whether or not the homeowner is even a good candidate for a loan mod.
If there is a 1st and 2nd mortgage on the property, for the maximum benefit, it is usually better to combine them in order to reduce the monthly payment instead of just doing one or the other. Many will charge extra to do the second loan; obviously, you can save more by having them both done at the same time for one fixed rate.
Regardless of who winds up with the job, the cost of poor credit, or foreclosure hanging over you for the next seven years is incalculable in terms of how long it will take to recover from it. Add to that your moving expenses such as renting the truck, paying for storage, coming up with security deposits, transferring to new schools, downsizing, or moving in with relatives.
Figure out what it's worth to you and make that call or submit a fast response form and you will be contacted.
How much the loan mod will cost depends on who's doing it. The homeowner can do their own negotiations with their lender for free. There are government agencies that will help the homeowner do a loan mod, again for free. There are also Investors and Realtors willing to do it for a nominal fee and the chance for a short sale opportunity if it doesn't work out. There are also some experts in the mortgage industry that have added loan modifications to their repertoire when a re-fi just won't work. Their fees will vary, but on average expect from $500 to one month's piti, it shouldn't be any more than that, they may be experienced but they are not certified.
Attorneys are going to charge you more, expect anywhere from $2500-$6000 depending on whether the 2nd mortgage is also done.
Regardless of who the homeowner hires, there should be no pre-qualifying fees and there should be a 100% money back guarantee if the lender(s) declines the homeowners' file. There are other more subtle differences that relate to expediency. Some people appreciate the quick qualifying offered online over the full document submission required by most before ascertaining whether or not the homeowner is even a good candidate for a loan mod.
If there is a 1st and 2nd mortgage on the property, for the maximum benefit, it is usually better to combine them in order to reduce the monthly payment instead of just doing one or the other. Many will charge extra to do the second loan; obviously, you can save more by having them both done at the same time for one fixed rate.
Regardless of who winds up with the job, the cost of poor credit, or foreclosure hanging over you for the next seven years is incalculable in terms of how long it will take to recover from it. Add to that your moving expenses such as renting the truck, paying for storage, coming up with security deposits, transferring to new schools, downsizing, or moving in with relatives.
Figure out what it's worth to you and make that call or submit a fast response form and you will be contacted.
Saturday, June 6, 2009
Can I Really Lower My Monthly Mortgage Payments?
Someone I had sold a house to many years ago and occasionally run into around town, called recently out of the blue. Knowing that I've been in real estate for over 20 years and had been a witness signer for many years, she thought I might have an opinion. She had received several postcards offering to "lower your mortgage payments" and was starting to pay attention to the t.v. ads she had also seen. I told her that I had also looked into it and was now a representative with a national company, so I was happy to answer some of her concerns.
I explained that it really was possible to lower your mortgage payments. With all the hype about loan mods on t.v., some people think that all they have to do is contact their lender and ask them to lower their payments. It's really not that simple or fast for anyone even if all the i's are dotted. The important thing to remember is that obtaining a lower payment is not a wish list item, it needs to be a necessity that can be documented. In her case, she was going through a divorce, he had moved out and ofcourse had taken his income with him. She wanted to keep the house and he didn't care if it went into foreclosure. Sounds like she has a legitimate hardship due to the reduction in her household income. She would also have to prove that her income alone would be sufficient if she could just get her payments lowered. In this scenario, however, there is a bitter divorce going on, the house is in both names and he won't cooperate in any way that would allow her to proceed before the divorce is settled. Meanwhile, she is eating away at her credit in order to maintain the payments until such time. For her it is a waiting game, what are you waiting for?
If you can foresee a hardship coming, an interest only loan that's soon to adjust, an eminate pay cut or loss of a second job, this is the perfect time for you to take preventative measures. The lender doesn't really want to foreclose and now there is a government incentive to negotiate a modification with the distressed homeowner. But, the agenda for the lender is to cut their losses not to save the homeowners' home. It would be hard to call it a negotiation when the homeowner is passively waiting for the lender to figure out the new terms. Which is why so many people are seeking the services of Attorneys who specialize in loss mitagation.
If the homeowner is absolutely unable to beg or borrow the attorney fees, then by all means I would recommend that they contact their lender directly and start that ball rolling. The end result will be a reduction, the question will be "is it enough"? If the lender were to answer that honestly, they would say "not my job".
Typical results from an Attorney based Loan Mod company would be to Stop foreclosure, Reduce interest rates, Extend terms, Fix their interest rate and Stop a future rate adjustment. If this sounds like something you could use and you can document your "hardship" and income, you may be eligible for a loan modification. Your credit scores or equity position will not matter.
Visit my site for a FREE Ebook on what options a homeowner facing foreclosure has.
I explained that it really was possible to lower your mortgage payments. With all the hype about loan mods on t.v., some people think that all they have to do is contact their lender and ask them to lower their payments. It's really not that simple or fast for anyone even if all the i's are dotted. The important thing to remember is that obtaining a lower payment is not a wish list item, it needs to be a necessity that can be documented. In her case, she was going through a divorce, he had moved out and ofcourse had taken his income with him. She wanted to keep the house and he didn't care if it went into foreclosure. Sounds like she has a legitimate hardship due to the reduction in her household income. She would also have to prove that her income alone would be sufficient if she could just get her payments lowered. In this scenario, however, there is a bitter divorce going on, the house is in both names and he won't cooperate in any way that would allow her to proceed before the divorce is settled. Meanwhile, she is eating away at her credit in order to maintain the payments until such time. For her it is a waiting game, what are you waiting for?
If you can foresee a hardship coming, an interest only loan that's soon to adjust, an eminate pay cut or loss of a second job, this is the perfect time for you to take preventative measures. The lender doesn't really want to foreclose and now there is a government incentive to negotiate a modification with the distressed homeowner. But, the agenda for the lender is to cut their losses not to save the homeowners' home. It would be hard to call it a negotiation when the homeowner is passively waiting for the lender to figure out the new terms. Which is why so many people are seeking the services of Attorneys who specialize in loss mitagation.
If the homeowner is absolutely unable to beg or borrow the attorney fees, then by all means I would recommend that they contact their lender directly and start that ball rolling. The end result will be a reduction, the question will be "is it enough"? If the lender were to answer that honestly, they would say "not my job".
Typical results from an Attorney based Loan Mod company would be to Stop foreclosure, Reduce interest rates, Extend terms, Fix their interest rate and Stop a future rate adjustment. If this sounds like something you could use and you can document your "hardship" and income, you may be eligible for a loan modification. Your credit scores or equity position will not matter.
Visit my site for a FREE Ebook on what options a homeowner facing foreclosure has.
Wednesday, June 3, 2009
Who Qualifies For A Loan Mod?
First, let's discuss what a loan mod is and what it is not.
A broad interpretation would be a re-structuring of terms, negotiated with the homeowners' original mortgage lender(s). What it's not is a re-finance, which may or may not be with the homeowners' original mortgage lender(s). The difference is in the qualifying, if your income has decreased, or your equity disappeared, you are not going to qualify for a re-fi. A re-fi requires good credit scores and sufficient loan to value. On the other hand, to qualify for a loan mod, the homeowner only has to prove that they have suffered a hardship which may cost them their home. They must also be able to prove that their current income is sufficient to repay a modified loan, in other words, the numbers have to make sense. With a loan mod, credit scores and equity position are not important factors.
There are also different types of "loan mods". If you are a homeowner who is looking for a principle reduction, good luck. That's not to say that principle reductions aren't done, but, they are hard to negotiate. Note that declining home values, creating an upside down equity position, is not reason enough for the reduction or reason enough for any loan modification. You would almost have to prove mortgage fraud! If you suspect that you were "victimized" and coerced into a "bad" loan, then a forensic analysis may be in order.
For our purposes, I'm talking about loan mods that reduce interest rates, consolidate loans, convert ARMS to fixed rates, extend terms, forgive delinquencies and penalties or combinations of such. The results should keep the homeowner in their homes with monthly payments they can afford, given their present circumstances.
So, who is eligible for a loan mod? You are, if you have an ARM, are struggling to make your monthly payments, are behind in your payments or are facing foreclosure.
Remember, you only need two things to qualify: proof of a personal hardship and proof of income. What kind of hardship? Anything causing a loss in income, loss of a job, pay cuts, injury or illness, divorce, stock market decline, higher property taxes, lower rental rates, etc. How will you prove income? They will substantiate what you tell them through your bank statements and deposits, tax returns, pay stubs and cash on hand. You don't have to be on the job for any length of time, it could be a new job, a part time job, and you could include family contributions to household. You want to be honest, mention whatever it is that's holding you back and what's keeping you afloat. An honest, well written hardship letter could make all the difference.
Yes, lenders will negotiate directly with the homeowner for FREE, but it's time consuming, laborous and you're likely to get what you paid for, not what you needed! Likewise, not everyone will qualify under the government subsidized program, “Homeowner Affordability/Stability Prog” (HASP). If you have a 1st and 2nd mortgage, only the 1st is do-able, your rental properties or your second/vacation home are properties that would otherwise not qualify under the government subsidized program. Further, not everyone will want to be at the mercy of their lenders, without representation of their own. Some reports indicate monthly payments were reduced by only 10% on those mods negotiated by the homeowner. Lenders, left to their own, will typically adjust original rates and terms only enough to qualify for their government incentives.
As with any other legal matter, the homeowner would be better served and represented, achieve more favorable terms and have their file fast tracked by their lender if there is an Attorney's name or law firm on that file. There are provisions being written, as we speak, restricting who is certified to actually prepare the file and submit the package to the lenders. Homeowners BEWARE! Your decision should not be determined by who's the cheapest and your trust should not be given to anyone with their own agenda.
Download a FREE Ebook for more information on Loan Mods and other solutions to keep you in your home and STOP foreclosure.
A broad interpretation would be a re-structuring of terms, negotiated with the homeowners' original mortgage lender(s). What it's not is a re-finance, which may or may not be with the homeowners' original mortgage lender(s). The difference is in the qualifying, if your income has decreased, or your equity disappeared, you are not going to qualify for a re-fi. A re-fi requires good credit scores and sufficient loan to value. On the other hand, to qualify for a loan mod, the homeowner only has to prove that they have suffered a hardship which may cost them their home. They must also be able to prove that their current income is sufficient to repay a modified loan, in other words, the numbers have to make sense. With a loan mod, credit scores and equity position are not important factors.
There are also different types of "loan mods". If you are a homeowner who is looking for a principle reduction, good luck. That's not to say that principle reductions aren't done, but, they are hard to negotiate. Note that declining home values, creating an upside down equity position, is not reason enough for the reduction or reason enough for any loan modification. You would almost have to prove mortgage fraud! If you suspect that you were "victimized" and coerced into a "bad" loan, then a forensic analysis may be in order.
For our purposes, I'm talking about loan mods that reduce interest rates, consolidate loans, convert ARMS to fixed rates, extend terms, forgive delinquencies and penalties or combinations of such. The results should keep the homeowner in their homes with monthly payments they can afford, given their present circumstances.
So, who is eligible for a loan mod? You are, if you have an ARM, are struggling to make your monthly payments, are behind in your payments or are facing foreclosure.
Remember, you only need two things to qualify: proof of a personal hardship and proof of income. What kind of hardship? Anything causing a loss in income, loss of a job, pay cuts, injury or illness, divorce, stock market decline, higher property taxes, lower rental rates, etc. How will you prove income? They will substantiate what you tell them through your bank statements and deposits, tax returns, pay stubs and cash on hand. You don't have to be on the job for any length of time, it could be a new job, a part time job, and you could include family contributions to household. You want to be honest, mention whatever it is that's holding you back and what's keeping you afloat. An honest, well written hardship letter could make all the difference.
Yes, lenders will negotiate directly with the homeowner for FREE, but it's time consuming, laborous and you're likely to get what you paid for, not what you needed! Likewise, not everyone will qualify under the government subsidized program, “Homeowner Affordability/Stability Prog” (HASP). If you have a 1st and 2nd mortgage, only the 1st is do-able, your rental properties or your second/vacation home are properties that would otherwise not qualify under the government subsidized program. Further, not everyone will want to be at the mercy of their lenders, without representation of their own. Some reports indicate monthly payments were reduced by only 10% on those mods negotiated by the homeowner. Lenders, left to their own, will typically adjust original rates and terms only enough to qualify for their government incentives.
As with any other legal matter, the homeowner would be better served and represented, achieve more favorable terms and have their file fast tracked by their lender if there is an Attorney's name or law firm on that file. There are provisions being written, as we speak, restricting who is certified to actually prepare the file and submit the package to the lenders. Homeowners BEWARE! Your decision should not be determined by who's the cheapest and your trust should not be given to anyone with their own agenda.
Download a FREE Ebook for more information on Loan Mods and other solutions to keep you in your home and STOP foreclosure.
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