Upside Down Mortgage

Archive for July, 2008

Loan Modification Issues

Question: a loan on a house in shambles?

I am a first time buyer looking to get a relatively inexpensive home in Florida. I found a nice home in town that is in pre-foreclosure (meaning the previous owner has no money for repairs on the home). I am working with FHA to find out my loan qualifications before i shell out an escrow, however the home has some major problems that must be sorted out first. First off, it has a flat roof over the rear sunroom that is shingled (not to code) and the overhang above the carport is sagging. It is safe to say that it will need some major roof modification and that I will most definitely have issues finding a way to insure the house in its present state... My question is whether or not i can find a loan that this particular house would qualify for. There is no way to set contingencies with the owner on getting things fixed as he has no money and wouldn't be able to afford any repairs. Is there any way to beat the system... I really like this house!!

Answer: Offer a price that has the cost of repairs factored into it if the owner won't fix anything. Beware though--if the house has these obvious problems just how many other problems are there that are not obvious and will only become apparent after you have moved in and lived there awhile? I would bet there are a few and the owner will not be forthcoming and tell you about them.

Dean O'Dell Discusses Loan Modification: Real Estate Watch

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Loan Modification Meaning

Question: Loan MOdification??????????????????????????

Has anyone here already done a loan modification and what were your results, meaning how much $ did your bank lower out of your previous mortgage? I'm trying to get one done now but the bank only wants to reduce the mortgage payment by $100 which is meaningless in our situation. Thank you in advance for your input.

Answer: I recently helped a client with a loan modification and they lowered the interest rate to 5.25% which lowered their monthly payment by about $700 a month. If your lender is not able to work with you then you may want to ask about a short sale so that you can get out of the house and rent for a while.

Fred Solomon announcing low interest rates, affordable refinance, Obama plan helps

Loan Modification Experts

Question: I would like to remodify my home loan. Should I use a company or should I work with the lender myself?

I live in So. Cal and I am barely making my monthly home payments. So before I have to consider a short sale or a foreclosure, I want to try to modify my loan. I looked into companies that are offering help, but they are charging between $5K-$7K. These companies say that I need their expertise and that if I try to work with the Lender myself, I will get screwed. Should I work with the lender myself, or should I shell out the $7K and use a Home Modification expert?

Answer: There are LOTS of scams out there. In fact the Better Business Bureau has yet to find a single modification company that is not a scam. If they can't find one I seriously doubt you can.

Just work directly with the lender. Ask them to send you their modification package (it will be similar to applying for a loan). I have completed 2 so far for family members and I have a third almost finished. I at least have their foreclosure stopped, their principle halved, but will not have a new interest rate until next month. They were paying 8%, so I am sure I will beat it. This takes a few weeks and many many calls, and just about as many faxes, but it can be done. I am not a pro, I just helped my father....but then he started spreading the word and other family members are asking me to help them.

You need to be able to do 3 things, one, prove that you need help, two, prove you can not refinance, and three, prove that you can handle things after obtaining help.

Loan Modification Expert - The Truth About Loan Modification