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.
Sunday, June 7, 2009
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.
Subscribe to:
Posts (Atom)
