Upside Down Mortgage

Archive for April, 2007

Mortgage Modification During Bankruptcy

As foreclosures continue to reach all-time highs, many companies have started offering assistance programs to struggling homeowners. One that you’re probably familiar with is mortgage modification—a change in the terms of your loan that makes it more affordable. If you can no longer afford the monthly payments on your mortgage, a mortgage modification may be your best bet.

Qualifying for a mortgage modification

Every lender has its own mortgage modification standards, but the first thing you need is a valid reason. In your hardship letter—one of the primary requirements—you should explain in detail why you fell behind and justify your reasons for getting a loan modification. Maybe you lost your job, or you couldn’t afford the adjustments, or there was a death in the family. Other acceptable reasons for mortgage modification include military service, divorce or separation, and medical emergencies.

Types of mortgage modification

There are several ways a loan can be modified, and it all depends on what makes financial sense both to you and your lender. The most common mortgage modification plans involve a reduction of interest, since most defaults occur when sub-prime adjustable-rate mortgages revert to normal rates. Some lenders may also change your plan to a 30-year fixed-rate mortgage, which is a lot more stable.

The government’s new housing plan also allows principal reduction, or a reduction of the original loan amount. This is offered specifically to homeowners in bankruptcy, provided they can prove that they have sought other options (such as mortgage modification) before filing. A principal reduction is ideal if your home has dropped in value, or you owe more than your home is worth.

Mortgage modification attorneys

Getting a mortgage modification often involves negotiations with your lender’s Loss Mitigation department. But not all of them will be easy to talk to. After all, they’re dealing with borrowers in default who have already caused some losses. That’s why it’s best to work with a mortgage modification attorney—a professional who has connections within the company and can push your paper to the top of the pile.

The main job of a Mortgage Modification attorney is to do the negotiations on your behalf. They can justify your reasons for falling behind and convince the lender that you deserve a Mortgage Loan Modification. Studies have repeatedly shown that people who have lawyers on their side are more likely to get good deals from their lender, even with the same circumstances. While it’s certainly possible to do it on your own, a capable attorney can make it a lot faster, safer, and easier—and they’ll let you take the time you need to get back on your feet.

About the Author:

The Loan Modification Department is composed of a team of Loan Modification Attorneys, Mortgage Loan Modification Professionals, and Hardship Analysts. Lead by Expert , Marc R. Tow, Loan Modification Department has helped thousands of American Home Owners save their Homes and decrease their loan payments.

Article Source: ArticlesBase.com - Mortgage Modification Types | How to Qualify For Mortgage Modification

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Obama Mortgage Help Plan

Question: I have questions about the income requirements on the Obama mortgage restructure plan. Can anyone help?

When my husband and I bought the house, my husband was the only one that signed the mortgage papers. And the only income it asks for in the recalculation is that person. On the other hand it also asks for income tax returns, so I'm not sure what income to use for recalculation purposes.

Answer: Is your husband self employed? If so yes you will need Taex returns. You can always add a co-borrower, if you need to be added due to the requirement of the tax returns and if your on them. You should be ok if tax returns confirm an honest account of your REAL income.

Hope this helps, that is a broad question,

Jason

Balitang America: Mortgage Help

Wells Fargo Loan Modification Blog

How to do loan modification with some top lenders in Nevada?

      In this article, I am suggesting ways and means to talk, handle and finally negotiate a loan modification with your lenders.  These are time tested tricks, and procedure which people who does not want to hire an attorney, can use and be successful. I am not saying that you should not hire a licensed attorney, and by all means should hire a Nevada attorney but I am saying that if you are so hard pressed but otherwise feel capable of doing your own loan modification and like to sail through this troubled tsunami, then have my blessings and read the following pearls of wisdom.

     First with Countrywide, there are some important steps you need to take. Countrywide has made a settlement with State Attorney General of Nevada to do loan modifications. Countrywide, a rule of caution for everyone, is one of the most crooked bank of USA. Yes, close to the savings bank debacle of the 80's. If one institution had single handedly destroyed the American fabric and American Home Dream, this is the one. What does Countrywide Bank need to see from you in order to approve your loan modification application? Here are some of the items you will need to prepare and submit with your application:

• Hardship Letter-a brief explanation detailing the circumstances that caused you to become delinquent, explain how you have tried to remedy the situation and tell the lender about your plan to get back on track and stay there
• Recent Income documents: pay stubs, W2, benefit statements, unemployment
• Bank statements and Tax returns for last 2 years
• Complete & accurate financial statements

     How all of these documents are prepared and presented to Countrywide loss mitigation department can make the difference between getting your loan modified to an affordable payment or being denied. A little up-front knowledge and preparation will give you the fighting chance you need to save your home with a loan workout. Once you know what Countrywide Bank is looking for in an acceptable loan modification application, you will be able to present your case in the best possible light to get an approval.

    First, send them an authorization, if some third party is handling your case like an attorney. Then, wait a few days, and send them a hardship letter. Please see my blog for writing a hardship letter. Then just give them basic financial information about your mortgage, expenses, and income. A rule of caution, don't give them all the details, so in case you need to change down the road, you can do that. Try some intelligence with them. Don't beg them. Tell them that they had done something wrong. Not a single day passes, when Countrywide does not settle with someone the ongoing litigation.

Here are 7 Tips that will help you get your loan modification application approved:

   Tip #1: You should know the lenders guidelines for approval before you even send your documentation.  Wells Fargo is strict about all these guidelines, and your case would be unnecessarily delayed, if some of your documents are missing.

   Tip #2: Make a financial statements which can show all your income and expenses, and that you are trying to cut down your expenses, and in fact, balancing your budget and expenses. Eliminate all the unnecessary expenses like cable tv, cell phone bill, extra car sitting in garage for long time, including of course sending in-laws back to their original home.

   Tip #3: Write a convincing letter explaining your circumstances about your hardship situation. I have given some templates. Use them extensively with some revision. Sooner, I am going to write more about different economic hardship situation.

   Tip #4 Substantiate your economic hardship with supporting documents. Each fact should be corroborated with documentary evidence.

  Tip #5: Calculate your monthly mortgage payment yourself, and prepare yourself, if you can live with it because this is the payment you are going to pay for the next 30 years or so.

  Tip #6: Take your time and complete the required loan modification application forms. Call the lenders to find out if they had received all the papers.

  Tip #7: Submit a complete, accurate and acceptable application that meets the Wells Fargo loan modification program guidelines. Remember, if you are missing on any of these documentation, you are losing valuable time.

When you call the lenders on phone, make sure you plan to stay longer period of time, and also to be very polite with the representatives. Make sure you get their name, and write on your journal with time and date, and the result of the conversation.

About the Author:

Malik Ahmad is a Nevada licensed attorney and counselor at law. He is admitted in all courts in the state of Nevada, including US District Court. He has an extensive experience in real estate, including mortgages, escrow, rela estate and foreclosure. He is a solo proprietor and the principal of a small firm in Las Vegas, Nevada

Article Source: ArticlesBase.com - How To Do Your Own Loan Modification In Nevada?