A retiring Chicago city employee had her home loan with CitiMortgage modified to 2 percent on a 40 year amortization and granted a two month payment holiday to rebuild reserves. Her husband has social security and a small pension but She was facing a large drop in pay as her retirement date of June 30, 2009 was fast approaching. She would be receiving a pension at only 40% of her prior pay and she didn’t have enough social security quarters to draw her own benefit. They had never been late on their mortgage so making a case for not being able to afford it might look opportunistic. I was very reluctant to take on this client because 31% of their future combined income was so low that I just couldn’t imagine CitiMortgage coming through for them so I advised that they try to sell the property while I made their plea for Making Home Affordable (MHA) with CitiMortgage. They had listed their home with a local realtor and weren’t able to get any bites even at what they owed so this was a scary situation all the way around. I have only the highest regards for CitiMortgage loss mitigation department because they were willing to work on preventing a train wreck rather than watch idly by. This was a fairly aggressive loan mod application because our client maintained her perfect credit and headed off future problems by contacting us in advance of her drop in pay. See www.illinoismortgagemods.com to read more typical results. Continue reading ‘Verified loan modification results’ »
Archive for the ‘foreclosure’ Category
FHA insured mortgages offer many benefits and protections that only come with FHA:
Easier to Qualify: Because FHA insures your Florida mortgage, lenders are more willing to give you loan terms that make it easier for you to qualify.
Less than Perfect Credit: You don’t have to have a perfect credit score to get an FHA mortgage. In fact, FHA has No Minimum credit score Requirement even if you have had credit problems, such as a bankruptcy, it’s easier for you to qualify for an Florida FHA loan than a conventional loan.
Low Down Payment: FHA loans have a low 3.5% downpayment and that money can come from a family member, employer or charitable organization as a gift. Other loan programs don’t allow this.
Costs Less: FHA loans have competitive interest rates because the Federal government insures the loans. Always compare an FHA loan with other loan types.
Helps You Keep Your Home: The FHA has been around since 1934 and will continue to be here to protect you. Should you encounter hard times after buying your home, FHA has many options to help you keep you in your Florida home and avoid foreclosure. Continue reading ‘Florida FHA imortgages offer many benefits, ((97% w/No MIn FICO))’ »
Loan Modifications and the Race Against Foreclosures
While there have been recent signs that the economy and real estate markets may be in the early phases of stabilizing, the foreclosure crisis appears to be rolling along unimpeded. The most recent evidence comes from a new study from RealtyTrac, Inc., an Irvine, California based housing research organization which reports that foreclosure filings in the form of default notices, scheduled auctions, and bank repossessions totaled a record 360,149 in July.
The total represents a monthly increase of 7% from June and a 32% rise from July of 2008. The month’s total of foreclosure actions broke the existing record for the third time in five months. Continue reading ‘Loan Modifications and the Race Against Foreclosures’ »
President Obama wants to stop foreclosure. He allocated 75 billion dollars to curtail the all-time high number of foreclosures in the United States. If you are facing foreclosure on your home because the payments have become too difficult, you might qualify for a federal loan modification.
The government is giving financial rewards to banks to encourage them to rework loans for millions of people just like you who are having trouble paying their monthly mortgage payment. The lenders actually rewrite the whole mortgage to lower the payment, possibly lowering interest rates, lengthening loan terms, and reducing principal. Continue reading ‘Obama's Federal Loan Modification – The Government Pulls Out All the Stops to Stop Foreclosures’ »
Obama’s federal loan modification program could be the answer you have been searching for! It is designed to save the homes of nearly five million people who are currently facing the harsh reality of losing their homes. The home loan modification program will be handled by your lending institution, which is required to abide by specific rules set forth in Obama’s home stimulus plan. The end result is expected to stimulate the economy by saving millions of people from foreclosure.
In order to understand the nuts and bolts of this loan modification program, let’s explore exactly what it could do for you, the home owner. It is designed to look at your mortgage, and then lower your interest rate. It could be set as low as 2% depending upon your financial situation. In addition, the home loan modification offers a very unique twist! If your payments are made on time, you could qualify for the Treasury to pay up to $5,000 towards your principle over a 5 year period. This is one of the best motivators for home owners that are seeking relief from Obama’s stimulus plan. Continue reading ‘Understanding Obama's Federal Loan Modification Program’ »
What interest rate should I get with a mortgage modification?
It could be as low as 2% on a 40 year amortization. Your modified payment will depend primarily on your Current Income. Therefore, lower income means lower rates. Interestingly, the traditional risk variables that would ordinarily determine your interest rate when applying for a loan are turned on their head with the Making Home Affordable (MHA) loan modification program. Can you imagine going back a couple years and having a banker say to you, “We could give you a lower rate if you were delinquent or even if you just made less money but it appears that you can afford to pay more than your neighbor so that’s what we are going to charge”. Homeowners that are interested in benefitting from MHA shouldn’t put off applying for the home-equivalent of “Cash-for-Clunkers”. Continue reading ‘What interest rate should I get with a mortgage modification?’ »
Homeowners that have applied for a home loan modification program will be quite relieved to know how to fill loan modification form. This is an important part of the application and if you hire a professional for that you will have to pay quite a handsome amount of money for the purpose. Because of the financial problem that has trapped all the homeowners in America, they want to save their house. This is because they are finding it very difficult to cope up with the heavy interest rate of the home loan, which might result in home foreclosure.
Initially it will look like there is nothing so crucial about filling up a form because a form needs only the concerned details to be filled. But once you will go through the loan modification form, you will understand how complicated this can be. This is mainly because there are legal terms used mostly throughout the form and it becomes difficult to understand them properly for a layman. You can ask your mortgage broker to assist you and as soon as you know what the legal terms mean, you can fill in the required details. Continue reading ‘Tips on How to Complete a Loan Modification Form’ »
HA’s 203K “Buy and Fix” Program
“I couldn’t believe the kitchen was completely torn out,” said Kara Sanders. The house was perfect for her family otherwise. “It’s was the location we’d wanted – but we couldn’t get financing.”
Bad roofs, missing fixtures, holes in walls, all typical for foreclosed properties. Even buyers willing to fix houses have a problem – getting the financing to close, and paying for needed improvements. Continue reading ‘When the Kitchen's Missing: Financing Fixers and Foreclosures’ »
A Saint Charles man sued his lender (First Franklin) for improperly trying to foreclose on his second home. First Franklin agreed to a Short-Sale along with debt forgiveness for the $180,000 loss that First Franklin absorbed at closing. The homeowner also walked away with $20,000 at closing that was disclosed in the sales contract and settlement statement to lender, title company and buyer. The entire credit history of the foreclosure was removed from the homeowners credit history. If there is a problem with your loan there may a surprisingly positive solution available.
A Geneva man received $5,000 “Cash for Keys” to hand over the keys to his home rather than fight foreclosure. The house had been on the market for a long time with no serious offers and was worth far less than the mortgage loan amount. Continue reading ‘Verified Short-Sale and Deed-in-Lieu Results’ »
One of the most difficult companies to get a loan modification from is Wells Fargo, also known as Wachovia. They are very stringent in their rules and unlike other lenders who are very open to modifications under the new federal plans devised by President Obama, they do not allow many modifications. One of the most crucial parts of your application when you apply for modification to Wells Cargo is the hardship letter. This letter is the most important part of your application with any lender but with Wells Fargo, it is almost more important than the application itself. There are a few basic rules which you need to comply with when you type out a hardship letter to any lender and it has to be even more perfect in case of Wells Fargo. Continue reading ‘Wells Fargo Modification Hardship Letter’ »