US HOUSING RELIEF

Author

Bill Franks

Loan Modification Counselor

February 23, 2010

Life is unpredictable and circumstances often arise that can prevent you from making your mortgage payments.

I would like to take this opportunity to tell you a little about options available to help.  My mission is to inform homeowners of their options and exit strategies when faced with foreclosure. I would like to preserve the American dream of home ownership, but statistics have shown that homeowners facing foreclosure will wait until the end of the proceedings to take any course of action, unfortunately it maybe too late! Some   Homeowners have had more than their fair share of difficulties through this real depression. The true killer is the adjustable rate mortgage (ARM). Maybe this is all a big mistake and the payments you’ve been sending were rerouted or lost do to the fact your mortgage was sold unbeknown st to you. Whatever your dilemma the Investor that is the true Mortgage holder do not care what it feels like to choose between a mortgage payment or groceries. The Investor is interested in only one thing- money! Most of which is collected on a predatory note the Investor purchased from a Mortgage Broker Warehouse or Bank which are now serviced by a servicing company. These Indemnities are one thing and one thing only- Debt Collectors. I understand what it’s like to have continual phone calls from a Debt Collector, calls at home, calls at work and letters in the mailbox.  You want to save your home, you need to save your home but your lender is asking for money that you can’t come up with in the time allotted. You’re not asking for them to forgive the loan but you need help creating a payment plan that you can handle.  You just need someone on your side.

To view this entire article please click on the header above
Pathway to Loan Modification

How to stop Foreclosure with Loss Mitigation Program

Loss mitigation programs were established by the federal government and the mortgage industry in order to stop home foreclosures.  They help foreclosure victims in default on their mortgage, to find alternatives to home foreclosure.  Every homeowner’s situation is unique and each lender has their own policies regarding the use of these programs to stop foreclosure.  US Housing Relief’s extensive experience and solid working relationships with mortgage lenders, allows us to help you avoid the common pitfalls that many homeowners encounter while trying to work things out directly with their lender. After performing a thorough assessment of your personal finances and analyzing your lender’s loss mitigation policies, our professional loss mitigation’s will negotiate with your lender to you the best possible solution to your home foreclosure problem.  We can help you save your home and credit history through a variety of loss mitigation options.

 1. LOAN MODIFICATION

 (FDIC Banks) (Mortgage servicing companies) (Government insured loans, FHA, VA, and Fannie Mae-Freddie Mac underwritten loans) (Participating Credit Unions)(Participating finance companies)  

A loan modification is the restructuring of a current mortgage note. With a loan modification you must apply with your loan servicing company, this may take weeks or months for the Investor to make any kind of proposal. The process is much less detailed than a true mortgage or refinance but the overall process is much similar minus some of the underlying factors such as an appraisal of the property. A modification can be

Underwritten in many different ways some include rate and balance reductions.  

2. VA LOAN MODIFICATION/REFUNDING

(Available of VA loans only) (Need at least 30 days to process)

A refunding is when the VA buys your loan from the lender.  Refunding may give VA the flexibility to consider options to help you save your home that your current lender either could not or would not consider.  When the VA refunds a loan under 38 U.S.C. 36.4318, the delinquency is added to the principal balance and the loan is re-amortized. Your new loan will be non-transferable without prior approval from the Secretary.  If your interest rate was lowered and an assumption is approved, the interest rate will be adjusted back to the previous rate.

3. SHORT SALE-SHORT PAYOFF

(Short sale) (Pre-foreclosure sale) (Compromise of sale)

If you have suffered a long term financial hardship and are unable to maintain your loan or if you need to sell the property to avoid a default loss on the on the property, it is possible that the lender may be able to accommodate you with a short payoff. A qualified buyer is required. If this is an option you wish to pursue, you must inform the loss mitigation specialist assisting you immediately.  There may be tax ramifications associated with any short payoff or foreclosure; therefore, we recommend you contact your tax advisor for details.  Some states permit lenders to seed a deficiency judgment for the amount the payoff was discounted.  See your state’s foreclosure law for more information.  Check with an attorney for advice on your personal situation.

 4. DEED-IN-LIEU OF FORECLOSURE

If you have incurred a long term financial hardship and your house has been on the market (at fair market value) for at least 90 days, you may be eligible for a deed-in-lieu of foreclosure.  To be considered for this option, you must complete a financial package and provide a copy of your recent active listing agreement. There cannot be any additional clams or liens (other the mortgage) against the property.  If you are approved for a deed-in-lieu, you will be giving up all rights to the property and the property will be conveyed to your investor.  In exchange for the deed-in-lieu, the lender may waiver all deficiency judgment rights. You may be asked to participate in a Short Payoff program before a deed-in-lieu of foreclosure is accepted.

 5. REPAYMENT PLAN

 If you have incurred a short term financial hardship and your loan is two or more months past due, your loss mitigation specialist will also consider submitting a request for a payment plan to your lender for approval.  Only after reviewing your financial situation will this option be considered.  All clients must be able to show that they can afford this plan in order to be eligible.

 6. SPECIAL FORBEARANCE

(FHA loans only) (Type I & II)

If you have incurred a short term financial hardship and your loan is 90 to 365 days past due, the loss mitigation specialist will also consider submitting a request for a special forbearance.  A special forbearance is designed to provide you with more relief than is possible with a regular repayment plan. Typical approval can result in spreading the repayment over 12 to 18 months.  Type II can be utilized in an unemployment situation whereby the promise of future employment is present.  We have done VA loans that resulted 27 month repayment plans.

 7.  PARTIAL CLAIM

(FHA mortgages only) (Some Freddie Mac & Fannie Mae investor loans)

 The loss mitigation specialist may assist in requesting a partial claim if you qualify.  You may be eligible if your loan is 120 to 365 days past due. A partial claim results in placing your past due payments into a subordinate mortgage (2^nd mortgage) between you and the Secretary of Housing Urban Development.  The partial claim note will require you to start making payments when you pay off the first mortgage. There is no interest.  The partial claim can be for no more than 12 months of past due payments.

There is Help Free options

 Here are some of the places to educate yourself, learn from others who already have dealt through the trails and tribulations when faced with a house payment they could not a afford. Most blogs written by Homeowners have detailed solutions to the hurdles they faced in restructuring their mortgage loan.  Visit these site and learn from others who have encounter the arena you are about to enter.

_{www.loansafe.org}  -is a great place visit to obtain vital information.

www.ushousingrelief.org -Professional help available. Specializing in hard case work such as Business Owners and Homeowners who were declined when they applied.

http://www.financialstability.gov -Road to Stability-Impact-The latest news Reports & more.

 www.disasterhousing.gov -US Department of Housing and Urban Development-Talk to a Foreclosure avoidance Counselor-Contact HOPE NOW and more.

 www.makinghomeaffordable.gov  

ITEMS INVESTOR’S – BANKS – CREDIT UNIONS –

MORTGAGE COMPANY’S WILL NEED TO START THE PROCESS:

Application to apply

Qualifying hardship letter

Thirty day detailed expense list

2 current pay stubs

2 current checking account statements

Fix income award letter declaring benefits paid

Other income documentation

2007 & 2008 W2 (If Self Employed 2 Years 1009)

2007 & 2008 Tax Returns all pages (signed and dated)

4056T tax form

Three month Profit loss statement (If Self employed)

Homeowners Insurance Information

Property tax statement

remember the underwriting guidelines to qualify for a loan modification are not revealed by any mortgage company. The stats show only 1 out 10 people who apply receive a true loan modification. To increase your over result it is recommended that you hire a qualified professional to prepare your application  prior to any submission of financial information to your mortgage company this way if ratio correction are required to qualify or other areas of concern need to be addressed they are corrected prior to submission. Most homeowners think HUD or the mortgage company is there to help them qualify? WELL THEY ARE NOT, Free agency’s and Mortgage company’s  just help you submit your application and required verifications and if  the application does not meet the underwriting guidelines you receive a decline. If your application rates poorly then the rate reduction may not happen or may have been reduced to lessor amount.  The end result is does the investor foreclose and reinvest outside the mortgage market or does the investor consider the home owner a good credit risk and keep them on the books? You are applying for a mortgage loan how does someone outside of  mortgage loans know how to originate a mortgage loan that will meet the underwriting guidelines? How would you? The truth to matter is even experienced loan officers only learn the modification business through countless submissions, They are not easy the system is so unfair and structured for the Banks not the homeowners in need of  real assistance. What happened to the bail out it my opinion it never happened!  The original Obama proposal was once again rewritten by the legislation system. Like the Senator of Indiana said the banks own this town. Enough rambling .  This is the money on the line do it right the first time and for those who now know this to be true because you tried to apply yourself and got declined you may have options . 

 Money on the Line 

$100 reduction in the monthly mortgage  is $36,000 savings over the term, $500 reduction in the monthly mortgage is $180,000 savings over the term.

Principle balance reduction reduces what you owe.

Getting denied is 0 savings over the term.

Qualifying for a forbearance saves your home.

Short sale avoids a nasty foreclosure on your credit and having to repay the deficiency.

Other exit strategies by time to get back on your feet.

Need my assistance ?  

 visit www.ushousingrelief.org

or email bIll@ushousingrelief.org

1-888-838-1678

Categories: Latest News

RSS 2.0 | Respond | Trackback < |