Loan Modifications 
There are currently 9 blog entries related to this category.
Impact of Loan Modification on Credit Scores
Wednesday, September 9th, 2009 at 4:04am. 922 Views, 0 Comments.
With the introduction of the Home Affordable Modification Program (HAMP) many homeowners that are not currently behind on their mortgages are being faced with a situation where they are being offered potential relief.
Obviously their first reaction would be to accept this relief but the government had done something smart (yes, give credit where credit is due). They made it mandatory for loan servicers to report derogatory history to the credit bureaus for all borrowers who participate. The creators of HAMP did this to weed out the people that can afford their payments but want a modification of their loan terms on the taxpayer dollar.
Those in true financial need won't mind, they are most likely already behind on their payments and their credit…
Attorney General unveils new Loan Modification website for California consumers
Thursday, August 13th, 2009 at 3:14am. 115 Views, 0 Comments.
California Attorney General Jerry Brown unveiled a new website aimed at ending abusive practices in the loan mod industry
Overall this is a good thing, I think consumers should make sure that they are dealing with a licensed person/company when attempting a loan modification. If things don't work out their should be an accountable individual or entity to deal with for the consumer. Getting a signed advanced fee agreement is a must. I'm still not completely convinced that homeowners get the best modifications when representing themselves though...
Also debatable is whether certain homeowners will ever face reality. The homeowner that choose the 1% option arm over the 5.75% 30 year fixed against the advice of more conservative voices because they…
SB94 - New Loan Modification Legislation for state of California
Friday, July 24th, 2009 at 6:02pm. 149 Views, 0 Comments.
As I said in my last blog SB94 will have an effect on how consumers handle their mortgages SB94 has already passed the Senate and the community and now goes to the assembly there are many reasons to think this will help as well as many reason to think it would not, the bill it self is as follows
DESCRIPTION
This bill would prohibit persons from charging advance fees to
borrowers in connection with a loan modification, and require
those who wish to charge a fee for loan modification services
(after performing them) to provide a specified notice to
borrowers regarding other options available to the borrower.
The violation of those…
No Free Lunch when it comes to Loan Modifications
Friday, May 22nd, 2009 at 6:57pm. 610 Views, 4 Comments.
A lot of Direct Lenders, Banks, Government Agencies and Non-profit organizations are inundating homeowners with messages that Third Party Loan Modification Companies are "scammers" and that borrowers should use extreme caution when doing business with these companies. They tell homeowners that they will do their loan modification for free.
!FREE Loan Mod! That sounds great! I'll take it!
Unfortunately as the old saying goes, there is no free lunch...especially when it comes to loan modifications.
I'll give you an example of what I mean. I just called Chase Bank to check status of a Loan Modification sent in on 5/18/09. The first representative told me I needed to wait 6 weeks before I could confirm receipt of the package. I knew that had to be…
Bear-ack Obama's Mortgage & Modification Plan, or lack thereof
Friday, April 17th, 2009 at 3:52pm. 94 Views, 1 Comments.
I am adamant in my opinion that Obama’s mortgage plan will be a bust. It seems difficult for people to understand that:
In related news, don't…
Do I have to pay taxes after my Short Sale/Foreclosure/Loan Modification/Short Pay Refi/Principal Reduction?
Sunday, April 12th, 2009 at 8:12pm. 1021 Views, 0 Comments.
For liability reasons it "wouldn't be prudent" for us to give you direct advice on this topic but here are some excellent sources of information for you to review with either your CPA or Tax Lawyer.
IRS Links:
IRS FAQ re: The Mortgage Forgiveness Debt Relief Act and Debt Cancellation
IRS News Update: Mortgage Workouts, Now Tax-Free for Many Homeowners; Claim Relief on Newly-Revised IRS Form
IRS Publication 4681 re: Canceled, Debts, Foreclosures and Abandonments
IRS Form 982
Mortgage Broker vs Attorney :: Who can I trust to modify my loan?
Friday, March 20th, 2009 at 8:54pm. 1640 Views, 1 Comments.
Lots of lawyers or "Law Groups" are spending lots of money trying to convince consumers Mortgage Brokers and Real Estate Agents are bad and Lawyers are good. To me this is like a fox offering a Chicken a "safe haven" in its den from a Cat its running for its life from.
Here are some issues a homeowner should be aware of before choosing any person or company to modify their loan:
- Who is telling me what type of loan modification results I'm likely to get? A salesperson on commission for getting my check? or someone with experience negotiating with different lenders' Loss Mitigation Departments?
- Who will be negotiating with my lender? An actual attorney, or an out of work, unlicensed, former sub-prime mortgage flunkee who is doing loan mods now? …
Loan Modification Ideas
Thursday, March 19th, 2009 at 3:03am. 80 Views, 0 Comments.
Just wanted to start this thread to get some ideas out there. I think too much negative energy is being spent on figuring out who to blame for our Economic problems and not enough positive focus on coming up with creative solutions. These rough draft ideas are my humble attempt to put something out there to change that...
1)
Principal Reduction: Homeowners want it, Banks don't. I believe there is a way to give principal reduction that would be less pain for banks than continuing with their current loss mitigation strategies.
In many areas of the country there is big gap between current market value and amount owed against the property. A foreclosure forces a lender to realize the loss immediately on books. Why not reduce principal but create a…
FHA "Hope For Home Owners" Program Update - As of Febuary 2009 25 Households Helped...Nationwide!!!
Thursday, February 19th, 2009 at 7:25pm. 241 Views, 0 Comments.
Interesting article, it says that only 25 people in the whole country have qualified for the "Hope for Homeowners" program...25 in the whole country... with the guidelines setup as they were though I'm surprised its even that high. Despite its name this program has not exactly been what I would call a "light at the end of the tunnel" for US Households.
http://www.businessweek.com//bwdaily/dnflash/content/feb2009/db20090218_423745.htm?chan=top+news_top+news+index+-+temp_news+%2B+analysis
I do think there will be some major changes in lender willingness to do loan mods between now and end of 2009, especially with regard to their willingness to reduce principal balances, stay tuned...
Update 3/24/09: Here is a new article from Inman News with some…
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