Loan Modification Directory


Do You Have A Loan With Freddie That Could Use A Workout? Help Is On The Way.

By Loan Modification Directory | February 7, 2009

Freddie Mac Offers Workouts To At Risk Loans

Freddie Mac Is rolling out a new plan to handle the influx of borrowers requesting loan modifications or other workouts.  Freddie will be employing the help of third party servicers to help service Alt A and other types of High Risk Loans.  The new plan will help keep at-risk borrowers in their homes and avoid foreclosures.

Under the new program a select group of high-risk mortgage holders who are at least 60 days behind on their mortgages will be turned over to a specialty servicer for intensive attention.  The service agent will employ the full range of Freddie Mac workout strategies, including Streamlined Loan Modifications developed with the Federal Housing Finance Agency, Fannie Mae and the HOPE Now Alliance

The pilot program will target an estimated 5000 reduced documentation loans from California, Nevada and other states with high delinquency rates which account for about half of Freddie Mac’s Delinquent mortgages.  Freddie Mac will review the new program and determine whether or not they will amplify the program to other loans in the late summer.

For more information about Freddie Mac’s loan modification programs, 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.

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.

Know The Lingo; Judicial Foreclosure-Notice Of Trustee Sale

By San Diego Loan Modification Directory | December 31, 2008

Know The Lingo, J-NJUDICIAL FORECLOSURE - A foreclosure action conducted through the courts instead of through a
foreclosure trustee. Judicial Foreclosures are very uncommon in California, particularly on residential
properties. Should a lender elect to pursue a deficiency judgment, it would be through a Judicial Foreclosure.

JUNIOR LIENS - A lien, usually a mortgage loan, that is subordinate to a Senior Lien, usually a first mortgage. Lien priority is generally established by recordation. NOTE: if you refinance a 1st mortgage on a property with a 2nd mortgage already in place the new 1st mortgage holder will require a subordination agreement from the Junior Lien holders to legally establish the new mortgage holder as 1st or Senior Lien holder.

LIBOR (London Interbank Offered Rate) - The interest rate charged among banks for short-term Eurodollars loans - LIBOR is a very common index for adjustable rate mortgages (ARM).

LOAN MODIFICATION - An adjustment to the terms of a mortgage, usually to assist a homeowner who has gone delinquent on the mortgage, or one for whom mortgage difficulty appears unavoidable. Among the most common modifications are adjustment to payment terms, adjustment to the interest rate or shifting of delinquent amounts for repayment later in the loan term.

LOSS MITIGATION - Home mortgage lenders look to limit losses on delinquent mortgages by working out solutions with borrowers through their Loss Mitigation Department.

NOD - Short for Notice of Default

NOTICE OF TRUSTEE SALE - An official notice that is posted, mailed, published/advertised and recorded by Trustee at the direction of lender indicating lender’s intention to sell the property at public auction. The notice typically includes a specific date, time and location.

 

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.

Know The Lingo; Foreclosure Glossary B-F

By San Diego Loan Modification Directory | December 27, 2008

Know The LingoStudy up and learn the lingo from the following Glossary of Terms:

BENEFICIARY - The beneficiary in a foreclosure context is generally the mortgage lender. Frequently referred to as the “Benny”.

CREDIT COUNSELING - Under the new bankruptcy law which took effect in October of 2005, those wishing to file bankruptcy must complete an approved credit counseling course within the six (6) months prior to filing.

DEED IN LIEU OF FORECLOSURE - The voluntary surrender of property by an owner/borrower to a lien holder that eliminates the need to continue foreclosure action by the lien holder. The lien holder can refuse to accept the Deed in Lieu and file a Notice of Non Acceptance with the County Recorder.

DISCOUNTED PAYOFF - The payoff of a mortgage loan where the lender accepts an amount less that the actual amount owed to payoff the loan.

EQUITY DEFICIENT- A property is Equity Deficient when, if sold, sales proceeds would not fully pay off existing mortgage debt.

FORBEARANCE AGREEMENT - An agreement between a mortgage holder and a borrower that lays out a specific loan payment plan and often puts a stop on the foreclosure action so long as the borrower meets the terms of the agreement. The payment plan includes provisions for repayment to the mortgage holder of all delinquent interest and fees and could include extending the life of the mortgage beyond the original terms. A Forbearance Agreement is a tool that allows the borrower to keep the property.

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.

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.