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Mortgage Modification Plan

Question: Anyone else worried about their mortgage?

What if one doesn't qualify for president new "mortgage relief plan" or if the banks are unwilling to do a loan modification?

Anyone have creative ways to not lose their property?

Answer: Those that do not qualify likely need too much help in terms of payment reductions. The Obama Plan as many call it caps the amount based on a formula of mortgage payments to income. Ther are alot of disqualifying factors such as no provable income, a 2nd mortgage, investment properties and second homes to name a few. These factors eliminate a majority of those seeking modification.
Also remember that unless you have a Fannie Mae or Freddie Mac loan the plan is VOLUNTARY and lenders can choose not to participate unless they accept TARP funds.
Under Obama's Plan the modification is figured only using the mortgage payment to income formula and leaves out other monthly expenses. Most families have a large monthly budget and have as much or more of their income going out as they have coming in. These ratios are a huge factor used in determining a homeowner's need for modification but left out of the Obama Plan. His Plan instead uses the 31% mortgage payment to income rule. This leaves out a huge number of those seeking modification.
Most people will attempt to modify themselves only to be handed off from person to person, disconnected, lost files, ect. See the Congress Woman Maxine Waters : http://abcnews.go.com/Video/playerIndex?id=6704983 as she tries to help 3 constituents modify their loans only to face the same problems. Unfortunately by the time they figure out that they cannot get it done on their own it's too late to hire a professional.
His plan also offers only a temporary fix to the problem. The mortgage is fixed for 5 years then adjusts to the going rate at the time. Isn't this what got us in the mess to begin with....adjustable rates?
The best thing to do is to have professionals handle the modification for you. Research the company. Look them up in the BBB and ask for references. A good modification company will offer a 100% money back guarantee and hold your fee in escrow. They have experienced professionals to negotiate the terms on your behalf. Always use an attorney based company that can perform a Forensic Audit and give you the best chance of getting results. These companies will get a long term fix with a fixed rate and not a forebearance agreement or short term fixed rate that will adjust later. They have formulas, experience and attorneys on your side. Using Obama's Plan is an option but only for select cases. Fortunately, with professional help you do not have to fit into his plan. Lenders are willing to modify under almost any situation but getting through the red tape is something better left to those that do it everyday.
Watch the video above and understand the process. Contact a professional for a free evaluation and let their trained legal professionals see if a modification is a fit for you.
Here's another video about Obama's plan : http://www.cbsnews.com/video/watch/?id=4851716n
Hope this helps.

Mortgage Modification Plan: Reducing Foreclosures

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