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!

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.

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.

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.

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.

Banks Don’t want to foreclose on your house!

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 .

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.

POSTPONEMENT - Trustee Sales may be postponed by the Trustee at the direction of the lien holder. Notice may be given in advance or at the time and location specified for the intended sale.

PRIVATE MORTGAGE INSURANCE (PMI) - A policy of insurance paid for by the borrower to protect the lender in the event the borrower defaults on the mortgage. Typically PMI is required by the mortgage holder when the down payment is less than 20% of the purchase price.

REO - Short for Real Estate Owned. When a mortgage lender acquires a property, typically through foreclosure, it becomes real estate owned or REO.

SHORT SALE - The sale of a home which is completed through negotiation with the existing lender(s) in which the lender(s) agrees to accept less than the full amount owed to satisfy the debt allowing the debt to be “paid off” short.

TRUSTEE (Foreclosure Trustee) - A Foreclosure Trustee is appointed by the mortgage company when a mortgage reaches default status for the purpose of processing the foreclosure.

TRUSTEES DEED - The deed given to the highest bidder at auction or to the foreclosing lender upon completion of the foreclosure.

TRUSTEE SALE - Conducted by the Trustee. The property is sold at auction to the highest bidder or taken back by a foreclosing lender.

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.

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.