Upside Down Mortgage

Archive for October, 2009

Mortgage Modification Foreclosure

Question: Can someone please answer this mortgage loan modification question?

My application was denied because they said I have to make more than 1.5% of my existing loan balance. My loan balance is over $377,000 and I do not make more than $5,665/month. Is this correct? If I made that much I would afford my loan payments.... This is the Obama Making Home Affordable modification program. So frustrating...was trying to avoid foreclosure.

Answer: You'll need to call your lender and VERIFY why your loan mod was denied. If they give you a difficult time, hang up and call again! Sounds odd, but it usually works! Depending on who your lender is, the customer service number you call is re-directed to different parts of the country. The 1.5% doesn't make any sense so you'll need to get straight answers from them. Lenders, depending on who the underlying investor is, will typically try to modify your loan down to where your debt-to-income ratio (DTI) is around 31% (divide your principal, interest, taxes and insurance (PITI) by your gross income and this will give you your DTI). Re-submit your loan modification package, if necessary and be persistent! Often times the person answering the phone won't be updated or even educated on their employers' loan mod programs.

Unless your lender is giving you the run around or they're a small servicing company, there's very little reason why they wouldn't modify your loan if you have a legitimate financial hardship - which I'm assuming is the case since they accepted your mod application to begin with. If you were trying to do it yourself, consider calling HUD's free loan modification service at (800) 569-4287 and see if they can help you. Once you submit (or re-submit) your loan mod package, call them to confirm receipt of your documents. Once they have your file and it's under review, the foreclosure process will be postponed, pending approval or denial of the mod. Follow up frequently and again be persistent!

Mortgage Modification: Ticking Clock

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Sample Loan Modification Request Letter

Loan modification is a major player in a lot of foreclosure cases these days. They have become popular because millions of foreclosures are happening each year and millions of homeowners who cannot afford their mortgages are asking for home loan modifications to get out of their rut. This process fine tunes the current contract, and adjusts it to the current status of the borrower in order to bring the interest rate and payment down, decrease the principal balance, transform an adjustable rate into a fixed rate, forgive delinquent payments, and even stop auctions and foreclosure actions.

In cases where people find it difficult to process their loan modification, they plan to hire “third-party†negotiators – or lenders -- who will assist them in the process. The best way to find one is of course, through word of mouth. Ask your friends and your family. Remember: If a company is good, then people will talk about them. Better yet, ask people who also underwent the same kind of experience. This can prove to be valuable in case you come across a similar situation like theirs in the future.

When all of your leads grow cold, try to join mortgage and loan modification forums, then look for the alpha members. Usually, you can distinguish them by the wealth of information and knowledge that they give. When you see someone like that in a forum, focus on where they post and try adding some messages of your own. Try to strike a conversation with these members, until you have formed enough familiarity with them to ask your questions. Usually, these members will be willing to help you find the information you need as long as you are polite, friendly and sincere in asking your questions.

Should nothing come out of this, research about your state's official website. Try to look for information regarding foreclosure, especially laws and statutes that might help you in applying for a modification in your area. Usually, these sites include other links to related sites, so check them out, too.

Also, you can try to research about the best loan modification experts on the net. Usually, their websites give information and resources to help you learn more about the loan modification process. What's more, they offer these for free, so you don't have to spend anything.

If you still need more information, go to the website of credit counseling companies. However, be careful – there are a lot of scams involved in this industry. To be safe, inquire about them on the Better Business Bureau. They have good listings of credible companies in many areas of the state.

If all else fails, try visiting the website of the United States Department of Housing and Urban Development. They provide a lot of information and resources about foreclosure companies and the foreclosure process.

You have a vast wealth of information about loan modifications that are available to you everywhere. Make the most of them so you can be sure that your choices will ultimately help you secure the home you’ve worked hard for all your life.

About the Author:

Paul is an advocate for loan modification. He knows that losing a home is one of the worst thing that could happen to an individual and for a family. He recommends to reach out on advocacy groups that will help you stop foreclosure. Give this toll fee number a call 1.888.864.1663 or visit loan modification websites like this one http://www.loanmodifyexpress.com/.

Source - Loan Modification – Where to Find Information About Them

Secrets to a Principle Reduction Loan Modification in New York

Predatory Lending Tactics

Question: Ameriquest Multistate Settlement in PA?

I have been one of the many thousands of individuals that had the misfortune of refinancing my home through Ameriquest Mortage. Due the predatory lending tactics of these scumbags, I was forced to sell my home to avoid foreclosure and futher damage to my credit.

I have received paper work from the State Attorney General's office in Pennsylvania in regards to the restitution payment I am able to receive under the multistate settlement against Ameriquest. The minumum amount I am eligible to receive is $320.62, which certainly does not feel like "restitution" to me.

I am curious as to how many Ameriquest borrowers in the state of PA will participate in the multistate settlement or seek other legal action ? Does anyone know of a law firm in PA that has filed for a class action law suit against Ameriquest ?

Regards,
Chris

Answer: Approximately 15,000.

http://www.ameriquestmultistatesettlement.com/index.htm

Howard Nassiri LLP, Predatory Lending