If you’re falling behind on your mortgage and cannot qualify for a refinance or an alternative payment plan, it is time you negotiate for a loan modification (mortgage modification). This is where you can work with the lender and get your loan terms and conditions modified so that you pay off the loan comfortably. The lender may either lower your mortgage rate thereby reducing your monthly payments or extend the loan term and make sure your dues are added to the loan balance.

The very first step in loan modification is to contact your lender or the current mortgage servicer to whom your lender has conveyed the servicing rights. But prior to contacting the lender or servicer, make yourself aware of the 3 things that decide whether you will qualify for loan modification. These are:

1. Your affordability: Lenders want to make sure that borrowers are not taking advantage of loan modification, that is, they are not applying for it even though they can still pay. This is why you need to prove that you simply cannot keep up with the payments. So, you need to explain your exact financial situation and provide data on your property value and how much you can afford to pay on your home. Here’s what you will need to have with you.

1. Monthly income and source

2. Paystubs

3. Monthly expenses in detail

4. Bank statements

5. Loan agreements

What you need to do here is, prove that you cannot afford the payments and it is certainly going to help your situation if you opt for a loan modification.

2. Your home equity: This is an important factor based on which the lender may or may not modify your loan. If you have enough equity in your home to pay off mortgage dues and foreclosure expenses, then the lender is likely to consider foreclosure as a low-cost solution.

However, there are some lenders who inflate your home appraised value when home prices are on a decline. But if you’re aware of property values or recent home sale trends in your area, you can get an idea of your home equity and thus avoid inflated appraisals.

3. Modification costs: Lenders prefer to minimize the costs when it comes to modifying one’s loan. However, mortgage modification is carried out by experts and lenders have no other option but to spend more when it comes to expanding their number. This is why some lenders do not respond quickly when they receive a loan modification request. So, here’s where you need to be active and negotiate in the best possible way.

With loan modification you can avoid a loan default as your payments become affordable. However, make sure you understand the modified terms and conditions in order to avoid further problems in your mortgage.

About the Author:

Jessica Bennet is an experienced financial writer associated with Mortgagefit Community. She has been guiding the Community through her writings and suggestions in our Community forums.

Article Source: ArticlesBase.com - 3 Things To Know Before You Go For Loan Modification

Principal Loan Reduction Made Easy!

Loan Modification Appraisal is a post from: Upside Down Mortgage

Question: Are you willing to pay higher interest and higher taxes to save your neighbors home?

Mortgage Modifications in Bankruptcy Would Undermine Homeownership, Would not Prevent Foreclosures

http://www.heritage.org/Research/LegalIssues/bg2242.cfm

ACTION POLL: (Cast Your Vote by Sending a Message)
Remember - it's not what the opinion polls say, but what Congress hears. (19,950 messages thus far)

28% Say Allow Bankruptcy Judges to Change Mortgages
72% Say Don't Allow Bankruptcy Judges to Change Mortgages

http://www.congress.org/congressorg/issues/alert/?alertid=12756331&type=ML

Answer: Nope...

Mortgage Modification Types is a post from: Upside Down Mortgage

Question: Has anyone had any success with a loan modification?

Initially we hired a company, total rip off, got 100 percent refund after threatening legal action. Our mortgage company doesn't seem to know what they're doing, we get assurances over the phone but also unsigned computer general threatening letters in the mail! Does this really work? Or are we destined to lose our home?

Answer: Karen, depending on your circumstances you probably need an attorney. Yes, most of the solicitations out there are a complete rip-off. Attorneys cost money but this is your house and your credit, not to mention a possible deficiency judgment.

The banks are getting a little better (and a little less indignant over the phone) because the underlying assets (the homes) are getting harder and harder for them to dispose of. That said, they have the upper hand. You're going thru one of these. They've gone thru, and are going thru, thousands.

Spend a few bucks on a real estate attorney that knows what they're doing. The bank's attitude and level of service will literally change overnight.

Hope this helps.

Loan Modification Success is a post from: Upside Down Mortgage

Question: pacific loan soloutions of riverside scammed me for 6,000 how can I get money back besides small claim court?

Pacific Loan Soloutions of Riverside Ca, scammed me for almost 7,000. I have filed a small claims case and contacted the Ca Dept pf Real Estate and the Riverside District Attorneys Office of special prosecutions, is there anything else I can do to shut them down ? They never produced a loan modification and are doing this to many many other people I have seen in their office.

Answer: If you paid $7K then you paid way too much. You can also contact the BBB. I'm not an attorney, but it seems to me that if they tried to get the modification and just weren't successful you probably don't have a leg to stand on unless they guaranteed a modification.

Real Estate Loan Modifications

Loan Modification Real Estate is a post from: Upside Down Mortgage

Obtaining a mortgage modification may seem a daunting task. This article will help prepare you with the process of modifying your mortgage. Here are some things to keep in mind:

Find out your lender's expectations in regards to the application of a mortgage modification. Find these by calling your lender or researching them online. Know what your lender is looking for when they are considering the modification of a mortgage loan.

Every lender is different as to what they will need from you. Here are some things that most look for:

* The present value of your property

* The original value of your property

* Your debt to income ratio

* Your payment history

* All past bankruptcies

* Your employment history

Filling in your application:

Do not falsify information on your application, you will be rejected. If you believe that your current finanical situation isn't bad enough to obtain a loan modification, do not worry, lenders are willing to help homeowners who are facing potential financial hardships. Whatever the reasons are for your requesting a loan modification, lying will not get you the %?j|ears/p>

Writing a letter of hardship:

Your letter should be brief. This letter must be honest and represent facts clearly. Share only the information that shows your lender the necessity of a modification. Make sure your lender knows that you will work with them to avoid foreclosure. To accelerate this process, send the application and the hardship letter together. If you send them separately, you will decelerate the process. For online applications, print and send the application and letter instead of sending it online.

Some other considerations: start by determining the sum of your monthly income from all sources. If you have taken the mortgage to purchase a home, then you can consider the monthly household income. From this, you need to deduct the average monthly expenses determined from the expenses of last six months. Some of the expenses may be superfluous. You can check which of these can be avoided altogether. These can be reduced for arriving at the average monthly expenses. A nominal percentage of these can be added to the average monthly expenses as provision towards any contingencies. This total can then be deducted from the monthly income to arrive at the amount that you can really spare every month towards mortgage installments. You may not really be an expert in such things. So taking the help of any non-profit organization for such ?Xearn is a good idea.

After having determined how much the maximum that can be spared is to cover any equated monthly installments, you need to develop a cash flow plan such that the lender is not required to absorb any losses. If the repayment period is likely to extend much too far into future, then you should consider liquidating some other deposit, and bringing down the principal. Alternately, you can look for alternate ways of earning, and establish a couple of month's record showing steady earnings from such new source, for example online earnings. Even these cash flows and projections can be shown to the non-profit organization for debt counseling. They will review it and let you know whether or not you are walking on thin ice. If you are confident that this phase is only temporary, then you can come up with a suggestion that all the installments that are due or will become due be added back to the principal for some time. This increased principal can then be repaid over several years in the future with interest rates applicable on a specific day. Effectively, the installments in future will be higher. Similarly, you can request the lender to consider changing from adjustable rate mortgage to fixed interest bearing mortgage.

At times, it may be necessary to extend the term and also reduce the interest rates. Your credit score is another factor that c±=Vp-318ence the lender's decision. If you have a good credit score, the lender may consider your proposal, as the lender would have greater confidence in your tendency to be honest and prompt in repayment. If the lenders find your proposal fair enough, then the lender would be agreeable to any such terms including delay in payment of EMIs, or forbearance. Therefore, knowing how to obtain a mortgage modification and what can affect such negotiations is important for every borrower who has taken on mortgage loans.

About the Author:

For detailed information on How to Obtain a Wells Fargo, Chase, Bank of America, or Countrywide Loan Modification, visit MortgagemodificationTips.com

Article Source: ArticlesBase.com - Mortgage Modification Tips - Obtaining a Mortgage Modification

Wells Fargo Loan Modification Reviews is a post from: Upside Down Mortgage

It is increasingly common for homeowners to finish up in a situation where they require an ARM Loan modification plan. House owners and banks are familiar with the problems associated in repaying this kind of loan and, as such, it might be the place you least predicted to get the help where you do find it! The elemental aim for both homeowners and banks is to avoid repossessions using the most suited money plan. As quickly as you are conscious of issues within your personal circumstances, you need to carry on to finding the most fitting solution for you.

An ARM Loan Modification aims to exterminate some of the strain related to high monthly mortgage payments and make sure that you do not need to fret so much about this actual outgoing. Mortgages are enormous financial commitments and, as such, can become too much in times of financial transition of difficulty. Luckily , there are a number of methods you can now approach to reduce the standard payment.

The aim of refinancing any kind of loan is to strip down and take some of the pressure off your fiscal concerns.

A 2nd choice is to lower your rate of interest. This does, naturally, depend much on whether your bank will adhere to such a choice. One thing you should usually remember with this possibility as well, is that it involves a variable rate, which means the rate can fluctuate up and down and thus, could lead to some monetary shocks in the longer term. This is something that all parties involved have to fastidiously consider before proceeding. Naturally, subject to your bank's agreement, this potential pitfall can be avoided by changing the particulars of the loan later on . But once again such a move depends on the cooperation of your lender.

And variable rate mortgage, although ( as with any plan ) it comes with its pitfalls and possible issues, can be a very feasible and efficient option. If issues arise later on along the line and you have the cooperation of your bank, a new plan can always be debated as issues arise.
.

About the Author:

Find out how to use Loan Modification to help you overcome your mortgage payments.

Article Source: ArticlesBase.com - ARM Loan Modification - How Does It Help You?

Mortgage Modification Pitfalls is a post from: Upside Down Mortgage

Let's not beat around the bush. The recent economic crisis has hit many of us hard. Many Florida homeowners are struggling to keep up with their monthly home payments and are looking at the possibility of losing their homes to foreclosure. The foreclosure crisis has affected some of the larger cities in Florida.

According to RealtyTrac.com, Florida ranked number 3 in foreclosures in 2008. The hardest hit areas in Florida were Cape Coral, Ft Myers, Orlando, Kissimmee, Miami, Ft Lauderdale, and Pompano Beach. Many homeowners have opted to contact their lender in order to get a loan modification to bring down the monthly payments on their mortgage to make their homes more affordable.

Some say that it is difficult to get the lenders to budge on an existing modification. That may be the case some of the time but if you can find a good loan modification company that can negotiate with the lender and show them that you have a hardship then you may be able to get the terms of your home loan modified. A hardship can include a death in the family, reduction in your work hours, and illness in the family. Also, keep one other thing in mind...the lenders do not want to foreclose on your home. The foreclosure process is very costly to the banks. They may end up paying upwards of $50,000-$60,000 to foreclose on your home so it would be in their best interest to keep you in your home because in the long run they will profit more even if you have had the terms of your home mortgage renegotiated.

One other thing to keep in mind, as a Florida Loan Modification company will also tell you, is to remember that besides proving that you've had a hardship, you also need to prove to the lenders that you will be able to keep up with the new terms on your mortgage. Also remember that while you can negotiate with your mortgage company on your own it may be in your best interest to seek a good loan modification company to negotiate on your behalf. It is similar to someone seeking a lawyer for legal representation.

About the Author:

The author Angel Aramboles is a passionate Florida homeowner looking to help out fellow Floridian's in these tough economic times. Angel Aramboles also writes about credit repair and debt issues. If you are a Florida homeonwer and would like to find out if you qualify for a loan modification or to speak with a loan modification expert to find out what your options are with your home please visit http://www.legalloanmodification.info

Article Source: ArticlesBase.com - Florida Loan Modification Help - What you need to know

Wesoloski Carlson, P.A. Attorneys at Law in Miami, Florida

Loan Modification Miami Florida is a post from: Upside Down Mortgage

Loan modification is the most requested solution to prevent foreclosure in this disturbed economy. Loan modification is the process of altering the original terms of a loan the borrower is finding difficulty in paying, changing them into ones more affordable to the borrower. The homeowner’s full effort, however is vital to the success of any loan modification.

The homeowner has to know all he can about loan modification. Provided below are seven helpful stuff a homeowner wanting to take loan modification should remember about how loan modification works.

1. Review Your Financial Status

Prepare your set financial statements including as they are the most viable reference of your current financial condition. Don’t forget to include a detailed list of your expenses like food, gas, credit cards and other financial obligations and input them in s spreadsheet and compute the average cost you incur on each item monthly and quarterly. Such is important not only for knowing your own financial position but it will also help you in answering the lenders questions on initial negotiations for your loan modification.

2. Hardship Letter

Ready a hardship letter of one or two pages wherein you will state clearly the reasons why you can no longer sustain making the payments based on the original terms of the loan and how a loan modification will help both you and the lender. Make sure you can prove whatever claim you put on the hardship letter.

3. Collect Necessary Documents

Gather all documents the lender may possibly require in reviewing your eligibility for loan modification. Such documents are but not limited to the following: paystubs and bank statements for past the 2 months;  W-2 Form for last 2 years for the employed; Form 1040 for last 2 years if you're self employed; Rental Agreement if the loan is not on your primary home; most recent mortgage statement; and property tax statements.

4. Contact Your Lender

Call your lender and inform him of your current situation and your desire of getting a loan modification and paying up your loan. Borrowers a few months behind payments are preferred but even those who are not yet late on their payments can qualify for loan modification provided that they can prove a probable future financial difficulty.

5. Fill Out Paperwork

Once your request for loan modification is recognized, your lender will send you an information packet and a financial worksheet you can use to compute for your expenses. Attach the documents you have gathered to serve as proof. All these are necessary for your lender to be able to assess your financial situation and determine whether you are eligible for loan modification and if your are indeed eligible, come up with the loan modification scheme that suits you. Just remember that the paperwork should be able to prove that you will be able to make your payments on time after loan modification.

6. Written Agreement

Once review of your paperwork is complete, your lender will inform you whether a loan modification will be granted to you or not. If it will be granted, he will send you a document explaining the details of his loan modification offer and then you are required to answer whether you approve of it or not.

7. Stop Gap Repayment Plan

Once you accept your lenders loan modification offer you will be asked to start off a gap repayment plan and keep doing such until the loan modification goes through. The stop gap repayment plan may go on up to a maximum of 60 days during which your lender reviews your status, financial statement and documents to be able to ascertain the risks involved in modifying your loan.

While in the stop gap period, you should be able to provide proof that you will be able to afford the modified payments along with the other expenses incidental to loan modification. Only after completing such task do you have a chance of finally getting a real loan modification.

24VIPINC will assist you in your loan modification attempts and CallComLeads will supply you with high quality loan modification leads.

About the Author:

Who am I?
I am who I am..

24VIPINC Loan Modification

CallComLeads Loan Modification Leads

Article Source: ArticlesBase.com - Seven Things to Loan Modification

Case Study: *Loan Modification* Success with 46% *Payment Reduction*

Loan Modification Successes is a post from: Upside Down Mortgage

Question: Has anyone successfully completed a Mortgage Modification under the new Making Home Affordable Act?

Just curious if anyone has actually been able to speak to a real person at their Mortgage lender and been successful in completing a loan modification under this new plan. Our loan is serviced by Citi and I never get to speak to an actual person.

Answer: Unfortunately not. My loan is serviced through First Horizon and every couple of weeks that I call referring to it, they say that they don't have any details and their still working on it! This has been going on since March.

How to get the most out of your loan modification by doing it yourself - or with an expert lawyer

Loan Modification Act is a post from: Upside Down Mortgage

Question: Can a mortgage lender add to the principal balance during a modification?

I recently modified my mortgage and my lender added an additional $5,000 to the principal balance. When I asked about this, I was told that they were legal fees however I paid legal fees for 4 months during the "pre mod stage" because my home was in foreclosure. My payments are lower but I am concerned about the additional balance that was added. I pulled my credit report and it indicates my balance on a $124,000 loan is $129,000 which most like has affected my credit. So my debt to income is worse now than what it was before.

Answer: There were fees involved with doing the remodification (a form of refinancing). Since these weren't part of the interest, the only place they go could--since you didn't have the cash--was on the balance.

Mortgage Modification Lower Payments Stop Foreclosure Now

How Does Mortgage Modification Affect Credit is a post from: Upside Down Mortgage

Question: MORTGAGE CRISIS SOLUTIONS?

THIS COMPANY IS DOING NOTHING BUT CONNING HOMEOWNERS AND EMPLOYEES ALIKE. THE COMPANY IS RAN BY DONALD ROBERT GILLETTE WHO HAS RAN SEVERAL SCAMS OUT OF THE SAME BUILDING. MR GILLETTE IS A CRIMINAL. BEFORE HE GOT INTO CONNING HOMEOWNERS HE WAS CONNING PEOPLE THROUGH A BOGAS POSTAL JOB SCAM. YOU CAN SEE A COPY OF THE INDICTMENT IF YOU GOOGLE DONALD ROBERT GILLETTE

IF YOU ARE AN EMPLOYEE YOU WILL BE ROBBED JUST LIKE I WAS. IF YOU QUIT, MAKE SURE HE DOESNT OWE YOU MONEY WHEN YOU QUIT. IF YOU ARE A HOMEOWNER IN HIS PROGRAM PAYING HIM MONTHLY PAYMENTS, BELIEVE ME YOU WILL NOT GET A LOAN MODIFICATION THROUGH PROPERTY SOLUTIONS SPECIALISTS .YOU ARE MUCH BETTER OFF WITHDRAWING FROM THE PROGRAM IMMEDIATELY AND DONT PAY HIM ANOTHER DIME, BECAUSE YOU WILL NEVER RECIEVE ANYTHING FOR YOUR MONEY .HIS FORMER CRIMINAL RECORD SPEAKS FOR ITSELF

http://myfloridalegal.com/webfiles.nsf/WF/MRAY-6TTKYB/$file/FCI_Complaint.pdf

JJ
miami, Florida
U.S.A.

Answer: Thanks for the Warning.

How To Choose A Florida Loan Modification Company

Loan Modification Companies In Florida is a post from: Upside Down Mortgage

Sub-prime lending is a type of credit given to homeowners who do not meet the criteria for regular (“prime”) loans. A typical sub-prime borrower has a poor or limited credit history and a FICO score of less than 620. These factors make them a risky investment for regular lenders, which keeps them from taking out loans. To compensate for the risk, sub-prime lenders impose higher costs on their contracts. For credit cards, this is usually a higher fee for over-the-limit spending or late fees. Sub-prime mortgages usually have higher interest rates and stricter terms.

Contrary to popular belief, sub-prime lending is a perfectly legal business. But like many new industries, it has been tainted by lenders who don’t play by industry standards. From 2003 to 2007, shady companies have turned up offering terms ranging from unfair to downright illegal. This, along with the economic slowdown, has contributed a great deal to the real estate crisis that forced many homeowners into foreclosure.

Are all sub-prime loans bad?

No. There are actually some sub-prime companies who give you good value for your money. If you find a good lender and stay current, sub-prime lending can have its benefits.For example, many people use sub-prime loans as a means of credit repair. Basically, it gives you a chance to rebuild your credit history and improve your scores. By keeping up a good record on sub-prime loans, you can eventually refinance to better terms and get back on your feet.

How do I know when a loan is sub-prime?

The first thing you should look at is the cost of the loan. Sub-prime loans have a higher overall cost (including interest, origination and closing fees) compared to prime loans. Although the basic formula is the same for both types, the pricing for sub-prime loans is more noticeably risk-based. A low credit score, small down payment, and other negative factors can greatly increase the cost of a sub-prime loan.

Another common feature is the prepayment penalty. Prepayment is when you pay more than the minimum monthly amount, or pay off the loan ahead of schedule. The penalty is to make up for lost interest on the lender’s part. Because you’re getting off early, the lender stops earning regular interest—and naturally, they charge you for it.

Many sub-prime mortgages follow the 2/28 structure. This means that you pay a fixed interest rate for the first two years, after which the loan switches to an adjustable rate where your payments are determined by market indicators. Often, the introductory rate is higher than the current index and the margin is applied once the loan shifts. For example, a lender can give you an intro rate of 8% while the index is currently at 4%, with a margin set at 6%. Assuming the index stays the same; your rate can jump to 10% when your two years is over.

What can I do if I’m in a sub-prime loan?

Fortunately, there are laws in place to protect borrowers in any loan, prime or sub-prime. For instance, the Real Estate Settlement Procedures Act (RESPA) requires all lenders to give you a good faith estimate of the total cost of the loan before closing any deals. This prevents any third party, such as mortgage brokers, from making any kickbacks at your expense.

All mortgages are also covered by the Truth in Lending Act (TILA). This law gives you the right to know the full lending terms and loan costs in any credit transaction, including credit cards. The TILA allows you to opt out of a transaction within a reasonable time if you don’t agree with some of the terms.

If a sub-prime mortgage has put you in financial difficulty, another thing you can do is apply for Loan Modification or in this case Sub Prime Loan Modification refers to an agreement between you and your lender to change the terms of your loan on account of your financial situation. This way you can modify your loan terms to a more affordable level. The Sub Prime Mortgage Loan Modification is a lengthy and time consuming process. However a competent loan modification attorney can expertly handle your case and expedite the loan modification process. A loan modification attorney will expertly present your case and use the above mentioned lending laws as leverage to get you more reasonable rates. If you’re already in foreclosure, this will also stop the process while you work out better terms with your lender.

About the Author:

The Loan Modification Department is composed of a team of attorneys, mortgage and real estate professionals, and hardship analysts. Lead by Expert Loan Modification Attorney, Marc R. Tow, Loan Modification Department has helped thousands of American Home Owners save their Homes and decrease their loan payments. For more information just Call 800-738-1170 or Visit our website http://www.cdloanmod.com/

Article Source: ArticlesBase.com - Sub Prime Loan Modification

Mortgage Behind Debt Rescue Secrets

Loan Modification Monthly Expenses is a post from: Upside Down Mortgage

As of June 16th 2009, California’s Foreclosure Prevention law took effect.  This law says a bank can’t foreclose on a mortgage without trying to renegotiate the terms of the loan or giving three months notice to the homeowner.

This bill was passed in February, and is very much like President Obama’s HAMP (Home Affordable Modification Program) plan which began in March.  HAMP is a $75 billion home loan modification initiative making it easier for homeowners to qualify for a home loan modification.  Both of these are designed to encourage banks to work with homeowners using payment plans or home loan modification.

“California is ground zero for foreclosures. We’re getting about 80 to 90,000 foreclosure filings every month. That’s one every 30 seconds, so until we start mitigating the number of foreclosures, our economic recovery is going to be hampered,” –Assemblyman Ted Lieu.  Author of the California Foreclosure Prevention law

What this means is that banks are going to need to attempt to work with homeowners through home loan modification.

Home loan Modification is when the bank agrees to a change in the terms of the mortgage.  These changes can include lowering the interest rate, and/or changing the rate from variable to fixed.  A lowering of initial principal of the loan, and an extension of the duration of the loan are also possible with a home loan modification.

If the lender doesn’t renegotiate the borrower still has 90 days until the bank can step in and seize the house.  This will allow the borrower a little time to think of an alternative such as negotiating a short sale with the bank, or consulting a professional home loan modification specialist.

A short sale is when the homeowner sells the house for less than its value, and the bank accepts the money and erases the rest of the debt.  Banks will sometimes do this because it is preferable to them owning a house it may take months to sell under in the current housing market.  (A market they helped to create incidentally, but that is another story.)

A home loan modification specialist is just what the name suggests.  A person or group who specializes in home loan modifications, and the laws and regulations surrounding them; who can help the homeowner  navigate their way though a home loan modification process.

Whatever approach you take to solving your foreclosure problem, it is important to act quickly.  Each day you delay is a day closer to losing your home, and no one wins in that situation.

To learn more about home loan modification visit Legal Loan Bailout.

About the Author:

Dustin Rohde is an article contributor to Legal Loan Bailout. Legal Loan Bailout connects you with lenders that can help you avoid foreclosure using home loan modification. Depending on your specific situation (the Property State, your mortgage lender, your mortgage history, your hardship, and any other unique situation you might be in), we will negotiate a loan modification that will help you keep your home. Visit

Article Source: ArticlesBase.com - California and Nationwide Laws to Encourage Home Loan Modification

California SB1137 Great News for Homeowners

Loan Modification California Bill is a post from: Upside Down Mortgage

Question: Does anyone know a really good and legitimate real estate lawyer who specializes in loan modifications?

We sent all our information to our mortgage company 6 months ago and we have been getting the run around since then. HELP!

Answer: You need to be working thru the lender. Pretty much every modification firm is a scam.

Try a manager

Loan Modifications is a post from: Upside Down Mortgage

Question: Is it possible to do a loan modification through a different lender than what I have?

I have Citimortgage and they are not moving forward with my loan modification for the "Making Home Afrodable" program that my loan qualifies for through the government. They've been stalling for months and I'm about to go bust. Can I for example take my loan to Wells Fargo or another lender for them to do it?

Answer: NOPE
Citi has your mortgage and only they can modify it. A modification says you are keeping your loan and ONLY changing the interest rate, which also slightly lowers your payment.
To go elsewhere you are doing a refi.
Call them, keep calling, ask if there is anything else you need to submit, ask if you can talk to anyone else if you're not getting anywhere.

Loan Modification Programs Citimortgage is a post from: Upside Down Mortgage

When the first stages of discussions and talks got underway on Obama's loan modification program, many people responded with good cheer and a healthy dose of curiosity. Many politicians were uncomfortable in their division of their stance against, and with Obama's loan modification plan, that would provide incentives for lenders to help homeowners keep or modify their mortgages on their homes. There of course, are stipulations for the handing out and the usage of these loans. This includes a lending company to stimulate the housing economy by loan modifications to a homeowner deemed eligible to receive the loan. Each year the recipeints could receive up to a thousand dollars for up to five years in the maintenance of their mortgage.

Within the early stages of this loan modification plan, many people were already bailing out of their mortgages by the thousands and leaving lenders with a bad taste for helping America's homeowner at all. On the other side, with money already being given to these large corporate banks, holding companies and investment companies, most American's were already losing their faith in the companies who handle, negotiate, process and finalize their loans.

This seemed to be a standoff at first with politicians heating up the talk radio shows, firing rounds at the President from their political podiums, and hounding the House and Senate representatives with fervor over the government bailouts. This was not something that suddenly sounded just and fair for the average American, because once again, the Federal government was bailing out the bad guys.

The reports of the housing industry's downfall, came on the heels of homeowners being served with eviction notices, while still other people were ultimately defaulting on loans that had sky-rocketed to momentous proportions. This grand scheme of Obama's loan modification program came into the light as a way to use federal money, up to the tune of 9 million dollars to help lenders adjust and modify their client's home mortgages. How sad to see the Federal government bailing out these same companies that were looking for their own skins to be saved, while still closing down on the necks of the American people they were set upon to make loans to.

This was just one of Obama's first ventures into helping America get back onto its feet, and it comes hot on the heels of the occupancy of the oval office. With the promise of the American dream held in the hands of the federal government, one wonders just what the loan modification will eventually do for the American homeowner.
About the Author:

For essential tips and facts about how to get approved for a Loan Modification, Visit our simple, no nonsense loan modification guide and resource: http://MortgageModificationLoan.net/

Article Source: ArticlesBase.com - The Early Stages of Obama's Loan Modification Program

Short Sale Genius: "Do you need to be delinquent to do a short sale?"

Loan Modification Division is a post from: Upside Down Mortgage

Are you in need of a mortgage loan modification and have questions about loan modification companies? Let's take a closer look at the services these companies provide and whether or not they can really help you stay in your home.

Loan modification companies have been coming out of the woodwork since the housing crisis erupted in 2007. The role of such a company is to serve as a liaison between the borrower and the lender and aid the borrower in obtaining a new set of more comfortable loan terms on a mortgage loan. The Loan Modification company should work as an advocate for the borrower. Their service is worthwhile only if they get the consumer a better deal than they could get on their own. Historically the niche has been filled by attorneys or groups of attorneys who are highly skilled and knowledgeable in the rules and regulations surrounding loan workouts. The dangerous thing about the recent proliferation of new loan modification companies is that now you have a lot of folks jumping into this industry with no prior knowledge of the subject matter - and they are learning on your dime. Even worse, there have been countless incidents of people being scammed by loan modification companies asking for large amounts of money upfront and then either disappearing entirely or claiming to be unable to modify the loan in question.

With the rollout of the federal program aimed at helping consumers modify their loans (The Making Home Affordable program), there is now a uniform set of guidelines and expectations governing loan modifications. If your lender is participating in the Making Home Affordable program then you should be able to work with them directly to get your loan modified and bypass all 3rd party loan modification companies and attorneys. Even if your lender is not participating in the federal program you should be able to work with them directly. Start by putting together a comprehensive list of your income and expenses and make sure you have a firm grasp on what size payment you can afford - once you know this number don't settle for anything higher. When you're ready to contact your lender you will need to speak with a loss mitigation specialist (see the list of phone numbers at the bottom of this article).

If you have tried to work directly with your lender, and are getting nowhere despite your best effort, it may be necessary to enlist the help of an attorney or loan modification company. You need to proceed with the understanding that a lot of people have been scammed by loan modification companies and you will have to be extremely careful when choosing your service provider. The ideal scenario is to use an attorney or group of attorneys who have been in the loan modification industry for many years. Avoid using a firm that has been in the industry for less than 2-3 years. As stated earlier, it is largely the new entrants into this field that have been causing problems. That's not to say that all new loan modification companies are bad - it's just a much safer bet to go with a company that was in the business long before the recent housing crisis. Choosing a firm that has been around for a long time does not ensure that you won't get taken for a ride. You will need to ask for references of satisfied clients that you can contact. You should also avoid all but the most basic upfront fees. There are plenty of companies that will be content to get paid the majority of their money after your loan is successfully modified.

Another point to consider is that a skilled and reputable attorney or loan modification company may be able to get you a better deal on your loan modification than what you can get on your own. If you have tried dealing with your lender directly and are not able to come up with new loan terms that are comfortable then you should seek help. Remember, it will almost always cost your lender far less to modify your loan than it will cost to foreclose on it. It is in their best interest to keep you in your home. With home prices plummeting and homes sitting on the market for months and months - your lender is not interested in owning your home. Loan modification can be a win for both the consumer and lender in a lot of cases.

Are you ready to start the loan modification process? Here are the numbers for the loss mitigation departments that handle loan modification services for several of the nation's largest lenders:

Mortgage Company Contact Info Ameriquest (800)-211-6926

Bank of America (800)-846-2222

Chase Mortgage (877)-838-1882 ext. 52195

Countrywide (800)-262-4218

Ditech (800)-852-0656

Fifth Third Bank (800)-375-1745 option 3

GMAC Mortgage (800)-850-4622

HSBC Mortgage (800)-338-6441

Indymac Bank (877)-736-5556

WAMU (866)-WAMU-YES

Wells Fargo (877)-216-8448

About the Author:

For more information regarding loan modification and many other personal finance topics, please visit our web site at consumer finance report. We feature a large and constantly growing article library covering a wide range of consumer finance issues. Our unique, proprietary content is specifically designed to inform, educate, and provide guidance to consumers facing financial problems.

Article Source: ArticlesBase.com - Questions About Loan Modification Companies

Hsbc Loan Modification Number is a post from: Upside Down Mortgage

Two bills designed to address some of the problems resulting from the economic crisis have been signed by President Obama. The first deals with mortgage fraud and the other with helping families who are involved in a foreclosure situation save their homes.

Look out rip-off artists, enforcers of the new mortgage fraud bill means serious business. Almost half a billion federal dollars has been authorized to spend on targeting charges of mortgage fraud. Agencies the likes of the Secret Service, U.S. Postal Service and HUD are all getting additional funding to increase their security measures.

The Fraud Enforcement and Recovery Act now sanctions the government to go after companies or individuals currently out of reach. Currently, an incidence of mortgage fraud can result in investigation, prosecution, civil penalties and prison time at a federal level, opposed to the prior gentler state penalties previously enforced. This new Act applies to all types of mortgage fraud, no matter how minor the offence.

In the past, these schemes defrauded home owners, realtors, lenders and builders out of billions of dollars each year. The FBI intends to send a message that mortgage fraud will not be tolerated and it is expected that offenders will receive stiff penalties in order to set an example to others.

The second bill, simply entitled, "Helping Families Save Their Homes Act," is intended to simplify the process for homeowners to receive foreclosure financing and modifications to existing loans. It also makes it easier for the lender to offer these types of options and hopefully prevent an impending foreclosure.

The new law also offers protection for renters who find themselves living in a home whose owners are facing foreclosure. Under the old rules, tenants would have to move immediately following foreclosure, now they have the option to continue renting for a term negotiated with the lender. This makes sense on so many levels. Now hundreds of families who otherwise would have found themselves on the street, still have homes. Lenders no longer have to deal with the problems associated with the upkeep of an empty home. Hopefully this will reduce occurrences of complete neighborhoods of foreclosed houses sitting vacant and facing ill repair and vandalism. In many cases, reliable tenants are happy to stay on and maintain the property.

The law provides additional homeless relief, makes better use of local organizations in this role, and allows them more latitude when allocating federal funds for assistance.

Part of the reason that mortgage fraud became so widespread was attributed to the lack of a single watchdog affiliation to oversee the the sketchy subprime loan offerings, underwriting and lending schemes. Instead there were a number of small agencies, each only seeing part of the problem, but no single unit had the power to actually deal with the issue as a whole. Currently, the Obama administration has a plan in the works to establish a single federal agency designed to watch over everyone involved; from the small brokers to the major lenders.

About the Author:

Search Sandy Springs GA condos at TinaFountain.com, the home of Sandy Springs real estate experts.

Article Source: ArticlesBase.com - Mortgage Fraud Bill Signed, Sealed & Delivered

Loan Modification Watchdog is a post from: Upside Down Mortgage

The Obama administration generated a simplified loan modification program that aims to reduce homeowner's monthly mortgage payments based on their monthly gross income. There are two types of programs under Obama's plan: The Home Affordable Modification Program and Home Affordable Refinance Program for mortgage refinancing.

How will Obama's Loan Modification Plan Work?

• Servicer will reduce monthly mortgage payments of the borrower to not more than 38% of borrower's monthly gross income.
• The government will assume part of the principal amount and manage other cutbacks to hit threshold of 31% on the borrower's monthly gross income.
• When 31% is achieved, the borrower enters trial period for 3 months.
• If the borrower succeeded in paying timely mortgage payments during the trial period, a new fixed rate will take effect for the new modified loan that will run for 5 years.
• Benefits such as cash incentives are thrown in to lure lenders/investors, servicers to join, and for borrowers to pay on time from trial period until the term ends (5 years).

Who can qualify for Obama's Home Affordable Modification Program?

• Only owner-occupied homes are eligible.
• Applicant must satisfy the Front-End Debt to Income (DTI) ratio of 31% to the monthly gross income set by the program. Total PITIA (principal, interest, taxes, insurance) and HOA (excluding mortgage insurance premiums) must hit this threshold.
• Applicant must satisfy the Back-End Debt to Income ratio of less than 55% to the monthly gross income which is the monthly total debt payable (eg, credit cards, car payments, student loans, etc.).
• Homeowners that have limited liquid assets and serious substantial income loss.
• Loan initiated on or before January 1, 2009.

Home-owners with unpaid principal mortgage balance equal to the following:

• 1 Unit: $729,750
• 2 Units: $934,200
• 3 Units: $1,129,250
• 4 Units: $1,403,400

Take note that the mortgage applied can be modified under this program only once. Your untimely records of delinquent balances will also be waived. If faced with foreclosure, proceedings will be temporarily suspended while undergoing the trial period. Should the applicant fail, foreclosure measures will resume. This is a charge-free program. New borrowers will be accepted until Dec. 31, 2012. Timely mortgage payers are automatically disqualified from this program.

What To Prepare If You Qualify For Obama's Mortgage Plan And How?

• If employed, you must present substantial documents to validate income loss, such as, recent pay slips and income tax return.
• If self-employed, third party documents for profit and loss statement must be provided.
• Substantial information of assets.
• Account balances on all monthly payments and monthly housing expenses, such as, credit cards, student loans, second mortgage, insurance and taxes, etc.
• HUD-counselor approved document that states counseling commitment must be submitted. Only then shall the loan modification take effect.

It is advisable to collect and present all these to the loan servicers for initial assessment. They can help you determine early if you can be considered for a loan modification.

What Are The Benefits Of Obama's Loan Modification Program?

If you qualified for Obama's loan modification modification, the following benefits will take effect:

• Servicer Incentive Payment of $1,000 is paid to the servicer for every eligible loan modified.
• Pay for Success fee of $1,000 additional payout each year for three years to the servicer if the borrower pays timely from trial period of three-months until term ends. A fixed rate for five years will take effect after trial period.
• Pay-for-Performance Success Payment of $1,000 is given to the borrower each year for 5 years which will be redirected to the principal amount provided that borrower follows program guidelines.
• For every successful modification, a one-time incentive of $1,500 and $500 shall be given to lenders/investors and servicers, respectively. A successful loan modification means that the borrower completely made timely mortgage payments during programs term.

Who can qualify for Obama's Home Affordable Refinancing Program?

• Home being refinanced must be a primary residence.
• Current loan must be secured by Fannie Mae or Freddie Mac. Contact them at 1-800-7FANNIE, or 1-800-FREDDIE to inquire or log on online at http://www.fanniemae.com/homeaffordable.
• Applicants must have current and timely mortgage payments for the last 12 months.
• First mortgage payable must not exceed 105% of your home value.
• Must have a stable income.

Note that, mortgage refinancing will be at fixed rate for 15 or 30 years. The interest rate is based on the market rate upon closing. No prepayment penalties will be charged but, applicant will pay for fees related to the mortgage refinancing.

If you are financially incapacitated while indebted to a home of diminishing value, you probably will not qualify for Obama's loan modification programs.

About the Author:

Get your Free Do It Yourself Loan Modification Kit. loan modification kit includes everything you need to complete a loan modification on your own. It will teach you how to negotiate with your lender and most importantly what NOT to say to your lender. The secret to a successful loan modification is how you present your case to the lender. This DIY loan mod kit will explain the loan modification negotiation process in explicit detail.

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Source:  - Obama's Loan Modification Plans 101

Home Loan Modification / Loss Mitigation Program

Mortgage Modification Plan Guidelines is a post from: Upside Down Mortgage

Question: Will a loan modification, on my 1st mortgage, effect credit bureau?

I am applying for a loan modification. If I decide later to sell my home, will this loan modification effect my credit report, so I am unable to purchase a new home?

Answer: As long as your credit is not terrible already from missing mortgage payments, A loan modification will usually not affect your credit score as long as you stay current.

Important things to know before you get Trade Lines on Credit Report! 25-75 Points!

Loan Modification Credit Report is a post from: Upside Down Mortgage