Upside Down Mortgage

Archive for April, 2008

Loan Modification Time Frame

Question: Loan Modification - California (IE)?

Has anyone had they loan remodified? Our lender Aurora is giving us the run around, telling us to find a FHA lender and have them do the apprraisal and have draw up the agreement and then they can do it. We need to know if the is a time frame to do it because it is too late for us to do it? Thanks

Answer: There are a number of criteria that must be met before a qualified loan remodification or workout plan is implemented. You will have to qualify for the loan and the lender will have to requalify you as though you are getting a new loan. In other words, if you can't make your payments based on your current income, your loan will not be modified.

Some lenders are using caution because the money they are supposed to get from the government for loan remodification purposes may not have become available to them, yet, and some lenders are still trying to understand the program.

Based on what you are saying, your lender may not be in a position to underwrite your loan as it is now. Did you get your initial loan through Aurora or did they buy your loan from another company? Is your loan an FHA loan? If it is an FHA loan, Aurora may not be set up to do FHA loans and it may have to be rewritten by an FHA approved lender.

At this point, you may have to do what Aurora is telling you to do, but they should give you more specifics. Call Aurora and ask to speak to a manager who works in the loan remodification department. The person who answers the phone at Aurora may not be up to speed on answering your concerns, so ask for a manager. Ask the manager to be specific on what you need to do because appraisals and other expenses will be out of your pocket expenses.

* The Loan Modification Act prohibits the causing of a negative amortization of the loan.
* It prohibits the requiring of the borrower to pay additional points or fees.
* It must improve the ability of the borrower to avoid foreclosure.
* The agreement must also provide a regular scheduled payment that is reasonable for that borrower.

If you are under the threat of foreclosure or bankruptcy, it is a very serious matter and your lender should treat it as such. There are companies that specialize in loan remodifications, but they charge a fee and you should make sure that they are legitimate because there is a lot of fraud being perpetuated on people who are under pressure with their home loans.

How much time before my home forcloses? (Part 2 of 2)

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Loan Modification Loans

Question: Can anyone refer a reliable person for mortgage loan modification?

Too many sources claiming to know how, but many turn out to be scammers. I need one who is reliable and actually know how to help process loan modification . Scammers, please stay out!

Answer: you can do loan modification yourself.............contact your mortgage lender........he guide you..!

i know one mortgage lender where you can try http://www.iloanshop.com/loan_modification_stop_foreclosure.php here.

Good Luck.......!

Home Loan Modification: How Home Loans Modification Work

Home Mortgage Modification Act

Question: We are trying to get a loan modification on our home due to my husbands hours cut at work?

Anyway we went to a agency that will act as a go between us and the mortgage company. The advice he had was do not send anything until he speaks with them. That he will have to offer some cash in hand. And if we send something now they will just want more.

I just do not feel right with holding on when the money and more is due now. Does this seem right?

Answer: No i think the best bet is to go and talk with the mortgage company. In these times I think they will work with you. They know times are tough and i think if you can still make a decent amount of your payment they will be happy. If that doesnt work then use that agency.

Rep. Tauscher Fights for Families Threatened by Home Foreclosure