From Loansafe.org:
I re-read my forbearance; I want to request a short sale
“…one lady was actually given the imfamous “trial payments” and still resided in her home while the other, a 64 year old lady, had a knock at her door on Oct 1st saying her house was foreclosed on and she had to leave. To her understanding she was in a forbearance till Dec….so she had to leave her property. Currently she is fighting to try to get WHATS LEFT of her stuff out of the foreclosed house. When the news crew panned over the looks of the said house the windows had been broken out, clearly vandalized and she had said friends of hers had said they saw stuff that belonged to her for sale on the street!…

…First and foremost I should have trusted my instinct that the young sounding kid on the other end of the line had no idea what he was talking about when I asked him if the dam MHA was even a real program. His response, yes it is we have done thousands….My response well I sent my paperwork 2 times and no one seems to have it! he tells me to resend it again…
…She says get all your docs together fax them to me and i will call you personally to let you know i recieved them…i told her this was my last shot. I faxed them and didnt get a call. No surprise…but she did call on Monday to let me know she got them and would be working the mod. Long story shot it ended up ina forbearance…
…So after last nights news i decided i needed to totally review my papers and saw that it says “Chase home finance LLC is writing in response to your request for a forbearance plan on the above referenced account.” ok number 1!!!! i didnt request a dam forbearance! does that mean that thats what Amaya had been working on for the past 60 days? not the MHA? So i tried to call chase this morning and guess what….as per my account, SSN, and zip code, there is no property that matches that info!. WTF is really goin on?… I wanted to request short sale papers.

With the other property we have, that we havent paid for since OCT 08. Its with countrywide/BofA….we requested short-sale papers at that time and recieved trial payments for 500.00 less then our normal payment….and A lady at my church requested short sale papers and was also offered trial payments instead of short sale papers for 600 less then her normal monthly payment. Again not chase but it seems to be the way to go??? ” (emphasis mine)

Sadly, this is not an uncommon story. If you are going to pursue a loan modification on your own, be prepared to lose all faith in humanity work for it. There was one instance where we had to send a full package in 18 times! We would call to confirm receipt and they would say they are missing a page that is right out of the middle. I can understand if they are missing the first or the last page, but right out of the middle? And if we are missing one page, why do we need to send in the whole package? Easy, if the package is not complete, they have no problem throwing your package in the trash round file cabinet.

Remember, before you sign the paperwork the bank has sent you, read it carefully. If you requested a loan modification, you need to get a loan modification. And it has to be something affordable, not a couple hundred dollars off for the next 6 months. If your payment doesn’t drop 40% it’s not a good loan modification.

If you are working on a loan modification or have received a forbearance instead of a modification, give us a call. We literally do a hundred (or more) of these a month. We can tell you what your chances are of getting a loan modification through. We can also help you plan if a loan modification does not work out. (480) 389-5199

Post from: The Phoenix Real Estate Guide

Phoenix Loan Modifications: Read Your Modification Carefully

From Housingwire.com: “The Making Home Affordable Modification Program (HAMP) adds another layer of uncertainty for private label securitization investors, making it more difficult to predict cash flows, according to a report by analysts at Amherst Securities Group, who added they expect relatively few HAMP workouts to be successful.

Additionally, it’s taking longer for bad mortgages to move from last payment to liquidation, and the pace varies by servicer: “The trial modification period essentially holds the loan in a suspended state for 90 days, making it difficult to assess what is happening with modifications,” the report said …

While HAMP workouts are keeping the pools of real estate owned (REO) property relatively small, Amherst predicts a low percentage of eventual success of HAMP modifications is inevitable.”

Calculated Risk had some notes on the same article:
The trial period has been extended for an additional 60 days – so make it suspended animation for 150 days! See One Company Responsible For Nearly Half Of All Permanent Mortgage Modifications
Treasury and COP note that many of those temporary modifications may be in process of getting paperwork
submitted in order for them to achieve permanent status. Treasury granted a two-month extension — on
top of the three-month trial — for borrowers and servicers to get their documentation ready.

Much depends on the success of HAMP. If many of these modifications don’t become permanent there will be another flood of foreclosures on the market. BofA has already promised a “spike” in foreclosure at the end of this year, see: Delayed Foreclosures Stalk Market
We are going to see a spike from now to the end of the year in foreclosures as we take people out of the
running” for a loan modification or other alternatives, says a Bank of America Corp. spokeswoman.

Here’s my take:
I work with people who are trying to get loan modifications. I see the results that many people get when they do their own modifications.

I have seen a homeowner 3 months behind on their payments, work with the bank for more then 6 months, only to have the bank tell them if they bring in all of the back payments they will lower the mortgage payment $200 bucks for a year. Then it goes back to their normal payment.

I’ve also seen people come in who worked with the bank to get a loan modification only to see their new payment higher then before! How does that help anybody?

I think the issue is that homeowners, trying to do their own modification, don’t push the bank hard enough to get a payment that will substantially save them money. By all means, homeowners can do their own modifications. But unless they know what results they COULD get, they won’t know if they are being screwed over or not.

If you would like to see what a real loan modification looks like, please give me a call. (480) 389-5199 In about an hour, we can run through your situation and see an idea of what we could expect from completing a modification. Sometimes a modification isn’t the right choice. We can help you lay out all of your options. Don’t wait until it’s too late. (480) 389-5199

Post from: The Phoenix Real Estate Guide

Your HAMP Modification Won’t Work. Wanna Bet?

I just saw this eye-opening article from Housingwire.com:
13.9% of Ocwen’s HAMP Modifications Complete Trial Stage
Through HAMP, the US Treasury Department allocates capped incentives to servicers for the modification of distressed loans and adjusts those caps based on performance. According to a report from the Congressional Oversight Panel (COP), HAMP servicers converted 1,711 loans , or 1.26% of the trials, into a permanent modification since the program’s launch in March 2009 to September 2009.

In order for a trial to be converted into a permanent modification, the homeowner has to make 3 consecutive payments at the new payment amount.

“We’re committed to modifications that stick; those are the ones that help homeowners for the long run, mitigate the mortgage crisis and, importantly, generate, incremental revenue for our shareholders.”

If this were true, the part about making the modification stick, don’t you think they could find a way to get more then 13.9% of their modifications stick?

The problem is that many homeowners try to do this on their own. Though everyone has the ability to do their own loan modification, the results clearly are not the same. When we work with you to do a loan modification, we make sure that your new payment is something you can afford. We will guide you through what they offer, and let you know if we feel there is a better offer available.

Bottom line: If you can not afford the new payment, DON”T ACCEPT IT!!!

When you accept these new payments, you are locked in. You will not be able to do another modification for a year. A lot can happen over the next year. Make sure you will be able to afford the payment.

If you are looking to do a loan modification in the Phoenix area, or explore other alternatives to foreclosure, please don’t hesitate to give me a call. We can set up an appointment and walk you through all of your options. (480) 389-5199

Post from: The Phoenix Real Estate Guide

Phoenix Loan Modifications: Results May Vary

AZCentral.com  reports that Job losses are going to hit record numbers this year.

What do you think this means for the homeowners in the next 6 months to a year?

Hopefully, some will be able to find new jobs. But many will use up their savings and then have to do a loan modification or a short sale. Increased short sales means lower prices. And the vicious cycle continues.

“For the second time this year, the Arizona Department of Commerce
has forecast 2009 job losses to be worse than expected.

The department projects record losses of about 178,500 jobs this year, a 6.8 percent drop. That’s about 32,300 more than its last 2009 forecast, issued in April.

“We thought economic conditions would actually be better, but they ended up being worse than we thought,” said Jack York, a department economist.”
Continue reading the article here

If you or someone you know is losing their job, or facing some other hardship, don’t wait until your savings are dried up. Call us today to see if a loan modification or a short sale is right for you. There is no harm in getting educated.
(480) 389-5199

Post from: The Phoenix Real Estate Guide

Phoenix Short Sales: More On The Way

I found this great article from the Miami Herald about successfully completing a loan modification.  Many of the questions are the same no matter what part of the country you live in.  Some of the information is a little different then what we have seen, but it is good information nevertheless.

“Getting a loan modification is no easy task, especially if you go it alone. Banks, swamped with borrowers seeking help, are overwhelmed and understaffed. Homeowners complain of their files getting lost, months and months of waiting, and flat-out rejection, even when they have followed all the rules.

For those who are patient and diligent, the quest for a loan modification can be a highly rewarding endeavor. Loan payments can be reduced by hundreds of dollars each month, truly making them affordable and enabling owners to hold on to their homes.

Below are some tips to help get you started:

Q: Can I get a loan modification if I don’t have a job?

A: Yes. Borrowers who have lost their jobs may still be eligible for help. They need to demonstrate they have some kind of ability to make their payments, be it with savings or unemployment benefits. Maisah Williams, financial literacy coordinator with the Human Services Coalition in Miami-Dade, said lenders will consider the circumstances of your job loss and what the chances are you will be reemployed soon. They may offer you a forebearance plan, in which all or a portion of your monthly

payment is temporarily postponed.

Q: How are most loan modifications structured and how low can my payments go?

A: Payment reductions range from between 20 to 30 percent. Under the federal government’s Making Home Affordable program, a lender will first reduce the interest rate on your loan to no less than 2 percent, then, if necessary, extend the loan term by up to 40 years to bring the monthly payments down to 38 percent of pre-tax income. The Treasury matches, dollar for dollar, further reductions until the payment is no more than 31 percent of your income. The new interest rate is fixed for five years. Then, it ticks up by one percent annually until it reaches the rate on the day your loan was modified.

Q: Do I need to hire someone to help me through the process?

A: No. It is possible to go it alone, but modification counselors warn the process can be time-consuming and complex. Karel Reyes, creator of StepByStepLoanModificationDVD.com, said there is no need for cash-strapped borrowers to pay thousands of dollars to an attorney or private firm, if they learn about the process and are willing to spend the time and effort it requires. Avi Shenkar, president of GMA Modification in Miami Beach, however, said professionals know banks’ inner workings. They ensure an application is moving quickly. He also said a pro may have greater success getting fees and penalties waived. Others said professionals know how to present applications to increase the chance of approval.

If you decide to hire a private company, make sure you check it out. Steer clear of firms that guarantee success or ask for hefty upfront fees.

Q: How do I get the process started?

A: Call your bank and ask for the loss mitigation department. Usually the representative will conduct a screening and ask you about your situation. If you meet basic eligibility criteria, the lender will send you an application package.

Q: What kind of information will I need to provide to the bank?

A: W-2s from your employer, a pay stub, and information about your savings and investments. You’ll be asked to document your debts and expenses. Don’t forget things like the birth of a baby or car insurance. Reyes said borrowers forget the small things that add up. Don’t forget to include all your income, such as rent collected from a roommate or child support. Document as best you can your loss of income or the impact of a divorce. If you owe more on your home than it’s worth, Reyes suggests sending in comparable sales info from your neighborhood. You’ll have to write a letter explaining why you need help. The more detail, the better, Reyes said.

Q: I’m seriously underwater. Will the bank reduce the principal balance of my loan?

A: Probably not. Lenders sometimes make principal reductions, but they are not common. A sharp interest rate reduction, though, will reduce the total amount you owe. Remember, too, that even though the bank lenders won’t reduce the principal, they may allow you to short-sell. That means you can sell the home for less than you owe them. It’s another way to avoid foreclosure.

Q: Does the bank charge a fee?

A: Banks may charge a negligible administrative fee. Other fees and late payment penalties can be waived, if you ask for it.

Q: My house is already scheduled for a foreclosure auction. Is it too late for me?

A: No. Lenders can cancel the foreclosure sale up to the very day of the auction. If you contact your bank at a very late stage in the foreclosure process, make sure the lender cancels the sale. There have been instances where homes have been sold at auction or taken back by the banks even though the home owner is being considered for a modification.

Q: How long does the process take?

A: About three to five months, though it depends on the bank. Some are more responsive than others.

Q: How do you get your application to the top of the pile?

A: Repeated follow-up calls are key. Roy Oppenheim, a foreclosure defense attorney in Weston, said you should call the bank as much as they called you when you fell behind.

Q: What happens to the payments I don’t make while I wait for my modification to be approved?

A: The missed payments are typically folded back into the balance of the loan.

Q: What if I have a second mortgage or a home equity credit line?

A: Under the Home Affordable plan, second mortgages are automatically modified with the first.

Q: Will the lender expect me to spend my savings or tap retirement accounts before approving me?

A: No. IRAs, 401(k)s, life insurance policies and annuities are off limits. Lenders cannot consider them. Oppenheim says lenders can and may consider cash you have in the bank, stocks held in your name or other real estate. If you have too much of that stuff, you could be disqualified. Mainly, though, lenders are interested in your income.

Q: If I overstate my expenses or understate my income, will the lender be more inclined to approve me?

A: Modification counselors say borrowers often undermine their efforts by making themselves appear worse off. If you are too needy, lenders won’t approve you, Shenkar said. Lenders want people who can pay the loan once it has been restructured, or they want to foreclose and quickly resell it to recover their losses.

Q: I’m current on my payments. Can I still get my loan modified?

A: Yes, but it’s tough. Under the federal Making Home Affordable plan, lenders are encouraged to modify loans before borrowers fall behind, but that is not widely practiced. Banks want homeowners to, at least, take a hit to their credit score to avoid the moral hazard of everyone asking for a modification, it is thought. Banks say they must deal with borrowers in danger of losing their homes first. Borrowers who are current should be at risk of falling behind in the very near future.

Q: I can’t cover my mortgage with the rent from an investment property I own. Is there any help available for me?

A: Yes. You won’t get help from the federal government’s modification plan, but most banks have other programs that will consider loan modifications for investment properties. Oppenheim said he frequently handles loan modifications for investors.

Post from: The Phoenix Real Estate Guide

How to Get A Loan Modification In Phoenix

I just read this great article over at the Arizona Republic showing some of the pitfalls of dealing with your bank to get a loan modification. Some of the highlights:

• Overall, about 15 percent of borrowers across the country who are eligible for the program have been offered help from their lender, according to a recent U.S. Treasury Department report. Of those homeowners, 9 percent have participated in a trial loan modification.
• “Except the new contract called for me to pay $150 more than I was paying for my original mortgage payment. My payment went up.”
• “However, her new monthly payment is only $40 lower than her old payment, not enough to help her.”

The examples in this article are not uncommon.  You CAN do a loan modification by yourself.  These are the typical results.  If you want to see real results, you need to get help.

Call us today to see how we have cut homeowners payments by over 40%.  We have clients who’s payments dropped by over $2000.  There are solutions out there.  Give us a call to see.  (480) 389-5199

Post from: The Phoenix Real Estate Guide

Phoenix Loan Modifications: Banks Are Not Playing Ball

Will a Loan Modification Hurt My Credit?
I am asked this question every day. Short answer: Maybe.
Listen, banks care about one thing. Money. They don’t care about your situation unless it means they won’t be getting any money from you. If you fall behind on payments, or are at risk of falling behind on payments, then the bank will do something. Yes, you can complete a loan modification without falling behind on payments. No, you won’t save as much money as if you were behind. Would you rather save $1000 a month and drop 100 points on your credit score or save save $100 a month? I am not exaggerating. That can be the difference. If you can keep up with your payments by all means do it, but not at the expense of your emergency funds, your 401k, your credit cards, your child’s child support, etc.

I spoke with someone the other day who has drained the $30k they had in savings. It took them 6 years to get it in there and just over a year to lose it. All to stay current. Now, if their car breaks down, their child gets sick, whatever, they are screwed.

If you are having trouble making your mortgage payments, please don’t wait to call us. We can help you create a game plan. We can help you figure out if a loan modification or a short sale is best for you. (480) 389-5199

Post from: The Phoenix Real Estate Guide

Phoenix Loan Modifications: Do You Want To Save Your Credit Or Save Your Home?

Like anything else financing related, loan modifications can take a long time. Their time line is similar to a short sale; 4-6 months is what we tell people who inquire. That being said, we just completed one in 32 days from the time we took the contract to the new payment being notarized and approved by the homeowner. That is definitely not typical. You just need to be prepared in case it does.

The longest wait is getting the file assigned. That alone can take up to a month. We always push to get them through quicker, especially if payments are being missed, but unfortunately we are at the mercy of the banks. Sometimes, the bank will acknowledge your package and say “Call us back in 2 months.” Why would the bank do that? The cynic in me believes that they are trying to weed out those that don’t really need a modification. If you are making payments to them, and you can hold off 2 more months before anything happens, they just got another couple of house payments from you.

How do you/we expedite the process? The trick is to know when to push and when to lay off. If you push too hard, the processor (the banks) will get sick of you and there is nothing you can do to stop them from trashing your file or just saying “you don’t qualify.” I wish I could say that isn’t how it goes, but sometimes there is no other explanation for why a file wouldn’t get approved.

The other thing you can do is to make sure ALL of your paperwork is turned in right up front. The bank really does want to see the last 2 years of your tax returns. If we have to file a 4506-T to get them from the IRS, you just added 3-6 weeks on to the process. Whether you are doing it on your own, or having us help you, DO NOT SUBMIT AN INCOMPLETE FILE. This can not be stressed enough. If you do, the bank will simply move it to the bottom of the stack. We will not process loan modifications (or a short sale) until we have a complete file. It is not worth the hassle.

If you are trying to get a loan modification done, or if you have been told you don’t qualify, give us a call. Sometimes you really don’t qualify for a loan modification and a short sale is your best bet. Other times you were lied to. Either way, give us a call and we can check out your file and tell you whats going on.
(480) 389-5199

Post from: The Phoenix Real Estate Guide

Phoenix Loan Modifications: How Long Until It’s Done?

I am worried that a loan modification is going to ruin my credit. Is that true?

No, a loan modification will not affect your credit. What may affect your credit score is if you fall behind on your payments. If you complete a loan modification and never go late, your credit will not be affected. That being said, our clients that were late on their payments saw greater and faster results.

If you are debating if a loan modification is for you, ask how much your credit is worth. If it means draining your 401k and all your savings to stay current, that does not sound like it is worth it. If you end up going late on your payments and can save $75,000 over the next 5 years, is that worth a knock to your credit score? Ask it this way, would you pay $75,000 to maintain your current credit score? Because that is essentially what you are doing.

The cost of using your savings and 401k is more then financial. What happens if you need that money for an emergency? How many more years will you have to work because you use your retirement money today? The choice is up to you alone. What is your credit score worth to you? If you can keep your credit intact (by staying current) and complete a loan modification, by all means, that is a best case scenario. But, do not let your credit score force you to lose everything else. Besides, a foreclosure is much worse then 3 or 4 months of missed payments.

Post from: The Phoenix Real Estate Guide

Phoenix Loan Modification Questions: How Does A Loan Modification Affect My Credit?

How is a loan modification different from a refinance?

A refinance requires equity, and an excellent credit score. If you are in the Phoenix Metro Area, you probably do not have any equity. You would be getting a new loan, so all of the general requirements would apply: Income, credit, etc.

With a loan modification, you are simply renegotiating the terms of your current note. You are not getting a new loan, and you are not changing lenders. You are simply trying to get a new interest rate, term, and principal balance.

If you can not qualify for a refinance, give us a call. A loan modification may be your best bet. We can have a no-cost consultation to see if your situation fits for a loan modification. (480) 389-5199

Post from: The Phoenix Real Estate Guide

Phoenix Loan Modification Questions: Loan Modification vs. Refinance