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’ »
Posts tagged ‘Loan Modification’
Anyone who’s even remotely interested in shopping for a Loan modification has probably paid attention to all those commercials on TV touting the ease of using any of a variety of Internet services to compare Loan Modification offers from the comfort of your home. You may even have tried a couple of them yourself. But you need to watch out when trying to use the Internet to do the heavy lifting for you.
Sometimes, these Internet services might work fairly well for certain people. But the one-size-fits-all approach they offer is going to leave a lot of people with loans that aren’t the best for them, or even worse, they may be shut out of the process altogether. Continue reading ‘What You Need to Know About Shopping for a Loan Modification Company Online’ »
Q: What is a Loan Modification?
A loan modification is the negotiation between a borrower and a lender for new rates and terms which will result in more affordable mortgage payment to prevent foreclosure.
Q: Can I qualify for a Loan Modification if I am not late on my mortgage payments?
Yes, a few months ago, lenders wouldn’t even consider giving a loan modification to someone that wasn’t late on their mortgage, but not today. In many cases, this is easier because you have maintained your good credit with your lender. Recent updates with the Making Home Affordable plan may allow for up to 9 million Americans to modify their current mortgage if they meet certain criteria.
Q: If I attempted A Loan Modification On My Own and Got Denied, Can A Loan Modification Company Help?
It depends of the reason for the denial, but an experienced Loan Modification Company can review your situation and let you know whether or not you actually qualify for a Loan Modification. An experienced Loan Modification Company can be a great resource as they have direct lines of communication and established relationships with most banks and lenders. This allows quicker access to information. Continue reading ‘Loan Modification Frequently Asked Questions’ »
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’ »
Home- Loan-Lender-Violations-attorney’s-help-lower-payments
Get the facts & info you need to save your home!
What I’d like to share with you is that at least 2 or more million mortgages that were funded between 2000-2007, many of these loans were funded unlawfully. During that period, bankers, lenders, mortgage brokers, appraisers and others in the industry have been known to enjoy the benefits of a very prosperous time.
Many of these people performed their jobs well and honestly, but others performed their duties illegally. Prosecutions are on the rise as these predatory lending violators are being brought to trial. Continue reading ‘Home- Loan-Lender-Violations-attorney's-help-lower-payments’ »
Shortly after the government urged them to step up their loan modifications, mortgage loan modification servicers are finding it hard to keep up with requests and inquiries from thousands of struggling borrowers. Borrowers, on the other hand, are beginning to get frustrated at the long waits.
A performance report by the Treasury Department showed that response times varied widely from one Mortgage Company to another. Many borrowers who try to get loan modifications either have to wait several months, get evasive excuses, or get no response at all.
The report also showed that only a small fraction of troubled homeowners have benefited from the government’s loan modification program. Only 9% of borrowers who meet the loan modification requirements had been given lower monthly payments as of July. Continue reading ‘Loan Modifications Slow Down as Servicers Get Swamped’ »
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?’ »
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’ »
All of the major lenders are really getting up to speed with the Making Home Affordable (MHA) loan modification program. This is essentially a “Cash for Clunkers” program for distressed homeowners. If you think that you may qualify to trade in that clunker subprime loan or perhaps are facing future interest rate adjustments on a prime loan then the time to act is now. This is an incredibly generous government program that can help homeowners adjust their mortgage payments to their financial situation rather than market conditions. Continue reading ‘How to get your mortgage modified’ »
Is your current mortgage payment (Including property tax and insurance) more than 31% of your income? The governments “Making Home Affordable” program is incredibly generous, the home equivalent of the “Cash for Clunkers” program. We have achieved mortgage payment reductions of over 50% for clients that were never late on their mortgage- they had just experienced or were about to experience a reduction in income. This includes clients that had their new mortgage payments calculated and reset based on their impending pension income rather than current employed income! There are 37 lenders participating in the “Making Home Affordable” program and working with them makes predicting an outcome easier however, we have also achieved mortgage modification for Non-participating lenders (Including West Suburban Bank and Key Bank). Continue reading ‘Mortgage Modification-Crunch the Numbers!’ »