Loan Modification Directory


C.A.R. Offers First Time Homeowners Peace of Mind with New Mortgage Protection Program

By Loan Modification Directory | April 2, 2009

CAR Offers New Homeowners Relief

To help provide first-time home buyers with peace of mind when purchasing a home, the C.A.R. Housing Affordability Fund (C.A.R.H.A.F.) is offering a new mortgage protection program to first-time home buyers.Through the Housing Affordability Fund’s Mortgage Protection Program, first-time home buyers who lose their jobs due to layoffs may be eligible to receive up to $1,500 per month for up to six months to help make their mortgage payments. A qualified co-buyer also can participate in the program, for a monthly benefit of $750 per month for up to six months. Program benefits also include coverage for accidental disability and a $10,000 death benefit. C.A.R.’s Housing Affordability Fund is dedicating $1 million toward its Mortgage Protection Program this year, and estimates that up to 3,000 families will benefit from the program throughout 2009.

To qualify for the Mortgage Protection Program, applicants must:
. Be a first-time home buyer - someone who has not owned a home in the last three years
. Open escrow April 2, 2009, or later, and close on or before Dec. 31, 2009
. Use a California REALTOR® in the transaction
. Purchase the property in California
. Be a W-2 employee (cannot be self-employed or military personnel)

First-time home buyers must request an application for the H.A.F. Mortgage Protection Program from their REALTOR®. Visit the C.A.R Web Site for applications and other information on this exciting new program.  You can Find a California REALTOR® at HouseRebate.com along with a huge selection of REO’s, Foreclosures and New Home Listings on the MLS!

President Obama Offers Up $75 Billion Foreclosure Bail Out

By Loan Modification Directory | February 20, 2009

3292196714_ecaf2faccbPresident Obama announced Wednesday that he will be making $75 Billion available to help some 9 million homeowners who are facing foreclosure.  Obama declared the need for drastic action in the face of the growing economic crisis and stated that the funding will help to keep the housing crisis from wreaking further havoc on our already fragile economy.

The government is also backing Mortgage Giants Fannie Mae and Freddi Mac with over $400 Billion in an effort to encourage them to start re-financing loans that are upside down, that is homes whose market value has sunk below the amount left on the loan.

Success from the life line is far from certain even though the administration is loosening refinancing restrictions for many borrowers and providing incentives for lenders in hopes that the two sides will work together to modify loans. But no one is required to participate.

Complicating matters, investors in complex mortgage-linked securities, who make money based on interest payments, could still balk, especially those who hold second mortgages or home equity loans. Their approval would be needed to prevent many foreclosures.

The ultimate goal is to lower homeowners mortgage payments to less than 31% of their total income, but that depends on lenders who are already leery of extending new loans in the current unstable market.

President Obama is also supporting legislation that will allow bankruptcy judges to chage the terms of mortgages, a measure that is currently opposed by major lenders and the banking industry.

If you are looking for help negotiating with your lender contact MBA Commercial or call Toll Free, 800-958-1952 and listen to our recorded message available 24 hours a day.

Nation’s Major Banks Offering Loan Modification Packages

By Loan Modification Directory | January 28, 2009

Banks Offering Loan Modification PackagesMajor national lenders  have announced they are aggressively reworking mortgage loans to help homeowners remain in their homes.  The Federal Housing Finance Agency, which oversees Fannie Mae and Freddie Mac loans, along with the HOPE NOW alliance of lenders, launched a “Streamlined Modification Plan” in December.

IndyMac Federal Bank also announced a systematic and streamlined loan modification program implemented by the Federal Deposit Insurance Corporation (FDIC). As of November IndyMac had sent out over 23,000 modification letters to eligible borrowers and had completed 5,300 loan modifications.

Some other major lenders intend to take proactive steps to modify loans for distressed homeowners. Bank of America publicized that, under an $8.4 billion class action settlement agreement, it would modify an estimated 400,000 loans held by newly acquired Countrywide Financial Corp.  JPMorgan Chase & Co. announced that it would modify an estimated $70 billion in loans for 400,000 Washington Mutual customers. Citigroup announced it would make $20 billion in mass-market modifications by preemptively reaching out to 500,000 at-risk homeowners.

For more information about the loan modification programs of the above-mentioned lenders or to find out if your bank may consider a loan modification, visit MBA Commercial and get your own free loan modification kit, or call 800-958-1952  any time to liste to our recorded message explaining loan modifications.

Pitfalls to Avoid during the Loan Modification Process

By Loan Modification Directory | January 22, 2009

Loan Modification PitfallsA Loan Modification is a valuable tool in helping homeowners get back on track with their loans and protect their homes from foreclosure, but often even after a loan modification people end up right back where they were, and sometimes even worse.  In fact, more than half (55%) of loans modified in the first nine months of 2008 were 30 days or more late within six months.

The problem? Even as lenders have become more willing to modify borrowers’ loans in the past year, many aren’t offering deals that borrowers can afford over the long term.

How can you make sure that your loan modification actually works for you and helps keep you on track for the duration of your loan. 

We have some tips to make sure that your loan modification doesn’t fail and you stay away from foreclosure for the life of your loan.

Don’t Let Your Modified Loan Create a Higher Balance Than What You Started With

Some Loan Modifications fail because the modified loan carries a higher balance than the original loan…

Because many lenders add unpaid interest and fees to the loan balance, homeowners often walk away with more mortgage debt than they originally incurred. A study found that an average of $10,800 was added to mortgages when they underwent a modification. The average such mortgage was $210,000.

Unfortunately, servicers that reduce loan principal are few and far between.

That may change should Congress pass pending legislation that will allow bankruptcy judges to reduce loan principal for homeowners in Chapter 13 bankruptcy protection. Such a move will provide an incentive for loan servicers to start reducing principal themselves.

Don’t Let Your Loan Modification Increase Your Monthly Payment

Some lenders are reluctant to lower rates or waive fees so some homeowners are actually negotiating loan modifications with higher monthly payments than they had before.

It should come as little surprise that with few lenders reducing principal - and most tacking on fees to the loan balance - nearly half of loan modifications (45%) actually resulted in increasing a borrower’s monthly payment, according to White’s study.

When negotiating for a loan modification discuss with your lender all the possibilities so that you can be sure your monthly payment at least stays the same, but don’t accept a higher monthly payment.

What Happens When You Are Still Upside Down On Your Loan

Even after the loan modification some homeowners are still upside down on their loans.

Borrowers who owe more on their homes than they are worth have little incentive to stay there, even if their payments are lower.

Borrowers seeking a loan modification often fail to ask their lender to lower the principle on their loans.  This is a big mistake that can make it difficult for homeowners to really catch up.

Don’t Accept Un-Affordable Terms

Desperate to keep their homes, many homeowners accept modification offers they can’t afford.

Remember to stay calm and counter un acceptable offers.  This is a negotiation and you need to watch out for your interests. 

Don’t let the process intimidate you, but keep your cool and don’t accept any offers that will leave you in a worse situation that you started in.

Don’t Let The Process Overwhelm You

Even though customer services reps are typically the first people homeowners get on the phone, they aren’t authorized to modify a loan.  Homeowners often get lost in the maze of management and customer service and will give up on the process.

Many homeowners seek help from loan-modification brokers you must choose your representative carefully.  Remember there are people out there looking to make a quick buck off your misfortune.   Don’t fall victim, go with a reputable loan modification firm that get’s results.

The best advice to make sure your loan modification works for you is to seek reputable professional help in securing a fair and workable loan modification.  Visit MBACommercial for your free loan modification kit, and access to our loan modification experts.

Your Bank and Your Hardships

By Loan Modification Directory | January 20, 2009

Loan Modification HardshipBanks Don’t want to foreclose on your house! When a mortgage company forecloses on a property more often than not they lose money, and they lose even more when they have to take ownership of that property. The good news is that there are alternatives to foreclosure that benefit both the borrower and lender.

The bad news is that most borrowers are only a number, one of millions of other numbers, to their mortgage company. The truth is that most mortgage companies don’t need to or want to specifically help individual borrowers. Even though their financial success really relies on keeping borrowers out of foreclosure often their need to meet their numbers makes it hard for them to recognize the value of working with individual borrowers. Even though mortgage companies financial success depends on keeping borrowers out of foreclosure, mortgage companies are the largest owners of real estate in the world due to foreclosures.

Hardships are the Key to Getting A Lender’s Attention

Hardships are a borrowers best tool in convincing the lender that a loan modification or workout plan is in order. Here are some of the hardships that lenders will consider:

  • Adjustable Rate Mortgage Reset- Payment Shock (uncommon, but more lenders will accept this in the future)
  • Illness
  • Loss of Job
  • Reduced Income
  • Failed Business
  • Job Relocation
  • Death
  • Incarceration
  • Divorce
  • Marital Separation
  • Military Duty
  • Medical Bills
  • Damage to Property (natural disaster or unnatural)

 

A free do-it-yourself modification kit is available at MBA Commercial .

 

A  free 24 hour recorded message explaining  loan modifications is available at 800-958-1952 .

San Diego Foreclosure Numbers Decrease Partly Due To Loan Modifications

By Loan Modification Directory |

2008 Foreclosure Numbers and Loan ModificationSan Diego continues to have a large foreclosure inventory, giving potential San Diego homebuyers and investors great buying opportunities. There are currently 3,596 San Diego bank-owned properties as of January 14th, 2009. Buyers have been taking advantage of low prices and distressed properties-the current number of 3,596 has been decreasing over the last few months. Homebuyers are taking advantage of the excellent pricing and lower interest rates. With over 1,850 San Diego foreclosure properties actively for sale on the San Diego Multiple Listing Service (MLS), the remaining 1,512 bank-owned properties are being processed to be available for sale or are currently in escrow.

As proof of these buying trends, the number of San Diego foreclosure properties for sale in the next 90 days has dropped: 4,041 San Diego foreclosure properties are scheduled for auction in the next 90 days. Currently, there are approximately 5,507 San Diego homes and properties in the pre-foreclosure phase, down from more than 7,000 at the end of October 2008. Owners of San Diego real estate properties that are in pre-foreclosure have received a Notice of Default to alert them that a foreclosure auction is pending. Overall, however, San Diego bank-owned properties are decreasing as investors are picking up many of the foreclosure properties. In addition, the decrease in the number of foreclosures is partly due to the loan modifications offered by banks to troubled home owners.

HouseRebate.com, a member of the National Association of Realtors®, is a full-service value real estate company that maintains a seasoned staff of agents. They provide all the services that traditional real estate offices offer at discount prices, with reduced commissions on sale, and rebates of 33 percent on commissions of purchases. HouseRebate.com features a virtual foreclosure tour bus that shows currently available San Diego foreclosure properties.

Take Notes And Review Everything Carefully

By San Diego Loan Modification Directory | December 17, 2008

Take Notes And Check Everything Always Be Prepared
In this stressful situation with so much information being exchanged, it is easy to forget things or miss the details. Don’t rely on your memory, it can fail you. Make sure you have everything written out in front of you. Never make a call without first reviewing your notes, and having a strategy already in place.

Review the Agreement Carefully
Once you get a written Loan Modification or Forbearance Agreement look over it carefully and make sure everything you have negotiated has been included in the document. Don’t assume anything spoken will be honored, make sure all of the agreed upon terms are in the written agreement.

- REVIEW IT CAREFULLY -

Pay close attention to these terms in your written agreement:
1. Interest rate and payment calculation
2. Provisions for the mortgage holder’s recovery of delinquent interest and accrued fees. Review both the method of recovery/repayment and the calculation of the total amount to be recovered.
3. Penalties that take effect if the loan is not kept current. In some cases the lender will attempt to keep the foreclosure door open, thereby allowing for an accelerated foreclosure if the loan becomes delinquent again.

If you find a discrepancy kindly bring it up to your lender, as most omissions or mistakes are simply that, and nothing more sinister, and can very easily be corrected.

Get Legal Advice
Before signing anything run the documents by a qualified attorney, and have them look for any thing you may have overlooked. Keep in mind that your agreement is more than just a modification of your terms, but it is an attempt to collect a debt. The agreements may ask you to waive certain legal rights that you are entitled to and perhaps contain provisions that you may not understand. If you do work with an attorney make sure you provide him with all the notes you have taken to help give him some insight into the development of the agreement over the course of your negotiations.

A free do-it-yourself modification kit is available at MBA Commercial .

A free 24 hour recorded message explaining loan modifications is available at 800-958-1952 .

Free Home Loan Modification Kit Available To Distressed Home Owners

By San Diego Loan Modification Directory | December 12, 2008

Do It Yourself Loan Modification Kit available at MBACommercial.com/loanmodA free home loan modification kit available to distressed homeowners so they can stay in their homes. Many banks are now offering loan modifications to their existing lenders. You can reduce your loan payments by 25% or more and save your home.

Homeowners who are behind on their payments can take advantage of a free Do-It-Yourself loan modification kit. MBA Commercial, Inc. is offering this kit at loan modification kit to help the public.

This indispensable tool includes tips for successfully negotiating a settlement with your lender, advice on how to write a hardship letter, an explanation of the difference between a forbearance agreement and a loan modification, plus a glossary of loan terms. A free 24-hour recorded message (800-958-1952) explaining the loan modification process is now available for homeowners facing foreclosure.

As the Treasury Department and Federal Reserve pump billions of dollars into the nation’s lenders to assist with distressed loans via the bailout plan, many banks and lenders have loan modification departments ready to help consumers. Banks would rather work with borrowers on loan workouts than have more foreclosed homes on their books to sell.

The benefits of a loan modification are that you can stay in your home and preserve your credit. While every lender offers different options, typical loan modifications can lower payments by an average of 25% from a period of three years to the life of the loan. Homeowners can enjoy greater security and the benefits of staying in their property to reap the rewards of future appreciation in their home’s value, while avoiding the cost of moving and the devastating effects of foreclosure.

Generally, to qualify for a loan modification, you must be experiencing a financial hardship. Examples include divorce or separation, illness or medical expenses, job loss, reduced income or business failure, property damage, military duty, incarceration or a death in the family.

To access MBA Commercial’s free Loan Modification Kit, just complete the loan modification kit request form.

MBA Commercial is a full service real estate company. 888-248-6222.

Loan Modification Directory

By San Diego Loan Modification Directory | November 17, 2008

With the continuous crisis in national housing as well as the unending mortgage breakdown, more and more homeowners are now facing the risks of foreclosures.

One way to solve this problem is through loan modification.

Loan modification is a type of agreement between a borrower and a lender to change or modify the existing terms of the current loan. This process is basically designed to help the borrower settle the loan at more affordable rates. This may include options such as increasing the loan terms, lowering of interest rates, forgiveness of fees, or reducing the loan’s principal balance.

The good thing about loan modification is that it benefits both parties. The borrower avoids foreclosure and keeps the home; while the lender is relieved of financial burden brought by loss mitigation. This means that both parties receive their end of the bargain, thus making this process a viable solution.

There are now numerous loss mitigation companies that are ready to assist borrowers with their mortgage dilemmas. They can simply choose from a list of professionals dedicated to help their loan modification.

Both borrowers and lenders can check the Internet or their local listing to help them find the right loan modification professional.