Saturday, August 1, 2009

Mortgage Modification Question & Answer

Question:

Cool, good read, mortgage {on the} modification. It is for relief of
the borrower. Due to trying to work I lost my private pay disability. My current mortgage rate is 7% and I applied in May at Chase for a modification program that is still sitting on someone’s desk. I need relief, my income is now less and the program is fully
underwritten. The banks are sitting on the cash making money while I
bob in an ocean of debt with no help. Do you know a way I can expedite this process.

Regards.
Anonymous


Answer:

I am going to make two assumptions not having the complete situations.

Assumption 1.) You have applied for the modification but they haven't sent you the final documents.

If this is the case then it may not necessarily be a bad thing. If the modification is still being processed, that means no payment for you in the meantime. Believe it or not, modification attorney's use many stall tactics to drag the modification process out. While I know that you are anxious, take this time to save money and of course do you’re due diligence and follow up with them weekly.

Assumption 2.) That you have applied for a modification, but what they have approved you for is forbearance. In this situation, it is likely that you had to send them a down payment and then a monthly-agreed amount (usually 75% of your regular monthly payment). Additionally, they tell you that they have some time to actually approve you at the end of the three-month trial.

If this is the situation then all you can do is call, call, and call. If it were me, I would send a certified letter, request a signature, and copy the letter to the regulatory agencies. The more attention you draw to the matter, i.e. newspaper, media outlets, online publications, local congress and representatives and regulatory agencies, the quicker the bank will respond. Don't be nasty; simply state the facts and what additional hardship the delay is causing you and your family. The banks look bad enough, they do not want any negative PR right now.

One last thought. In the modification process, you have a designated "worker". The number you have goes straight to them. Another possible "trick" is to dial the number and then play with other extensions on your telephone keypad or numbers such as 0 to reach the operator. It is possible that if you speak to someone other than your caseworker, you may get somewhere a little quicker. Let the person who you eventually stumble upon know your situation. If this didn't answer your question or I made the wrong assumptions, feel free to email me.

Thank you for reading my blog and I truly hope that you, along with the rest of my readers, get the help they deserve.

Regards,
Shannon Anderson
mortgagemodificationguide.info

Friday, July 31, 2009

Mortgage Modifications and the Current State of Real Estate

The mortgage and banking industry has taken a hit, but in my opinion, the homeowners are the ones left with the short end of the stick. The mortgage companies, banks and brokers knew for years that home values were being inflated on the front line for second mortgages, equity lines and refinancing. They turned their heads. Preferred appraisers asked "what do you need it to come in at", rather than offer an honest appraisal for the company and homeowner. Of course the homeowner wasn't going to dispute the amount, they were happy. The inflated value meant that they could take out more money from the bank. Additionally, they felt their investment had made them money. The brokers and bankers on the front line wouldn't dare make a noise; doing so would have lost them the deal. Banks and underwriters knew that there was little reason to send it back other than a hunch. All of the documents matched. Throwing up red flags would just lose their bank or mortgage company money as the homeowners would just go to the next company that would put it through; they were available by the dozens.

So, here we are. We are sitting on homes, that in many cases, are worth less than what we owe. Some have been valued for over two thirds less than the mortgaged amount. The home owners can't sell their houses traditionally. If they want to move, or need to move, due to a job opportunity, they can't without walking away, foreclosing or placing their homes in a short sale. Either choice leaves the homeowner with bad credit. Banks have tightened down as they should on credit scores and loan to value ratio's but now, it may not be because the homeowner wants to foreclose or ignore their bills.

Big banks and mortgage companies are getting federal bail outs. The homeowners aren't recieving the same help. Some mortgage companies have offered to work with the homeowners, but few loans have recieved a principle reduction, which brings us back to our original point; the homeowner is stuck.

I will be writing daily on steps you can take to save your home and when it makes sense to even go through a modification. In some instances, unfortunately, it may be better to simply walk away. We will go over items such as what the banks will look for in the modification process, what types of modifications are still available and actions you should take. This is a blog that I would suggest subscribing to as the rules, laws and regulations are rapidly changing. This will be a blog that can truly help the people. Let me know if you have any specific questions; I will be happy to answer them.