loanmodificationca.net

Fannie Mae And Freddie Mac to the rescue.

They have both agreed to provide $25 Billion dollars for the $75 Billion mortgage modification program. Loan modification Ca homeowners will benefit from the additional cash infusion. Obama is committing the other $50 Billion dollars.

These fund will be designated to assist troubled borrowers who are in foreclosure or may be facing foreclosure in the future.  (There were 2.3 million foreclosures last year alone.) The money will be focused on lowering payments for millions of homeowners that have faced higher payments through high interest rate loans, adjustable rate loans etc. This is a two part program.  The first part will benefit California homeowners who need to Refinance to a Lower Rate.  The second part will benefit loan modification Ca homeowners

First the homeowners who have diligently keep up with their loan payments however, have not been able to refinance because the value of their homes were worth less than what they were when they originally purchased their home.  Or their loan limits would not allow them to refinance at a lower rate will have the opportunity to refinance at a lower rate which will lower their monthly payments. 4-5 Miilion homeowners will benefit from this program.

Second type of Califrnia homeowner would be classified as a loan modification Ca homeowner candidate. This would be for homeowners who are in a distress situation.  Either in a foreclosure situation or approaching one in the near future through possible job loss, possesing a  loan that may adjust upwards in the future, or they me be in a hardship situation and unable to make the required loan payments. The Government has set aside $50 Billion dollars for this modification agreement. Loan modification Ca homeowners will get a big piece of this cash infusion.  In all,  3-4 million distressed homeowners are expected to benefit from this program.

Most of the major lenders and Thrifts have agreed to halt foreclosures and offer a home loan mortgage modification to work with distressed homeowners. CNN reported.

I would caution a distressed homeowner to seek a professional to assist with a loan mortgage modification program to ensure that you get the best rate for you and not the rate that the bank thinks is the best rate for you. Dont short change yourself with this one option for a loan modification Ca homeowner program.

See Bair FDIC Chairwoman video FDIC 

Publisher- Michael Kench Uncategorized loan-modification-ca

Why should you consider a loan modification Ca homeowners program and modify your loan?

If you are having financial difficulties that are no fault of your own, such as a loss of income, job loss, illness, or maybe you were sold a bad loan, or you are facing foreclosure.  Then you should consider what your best options are  when it comes to a loan modification Ca redo on your exiting home loan.

Modifying your loan is nothing more than a negotiation between you and your lender without refinancing.  The prime purpose is to negotiate new loan terms to match your current financial situation. The end result is more commonly called a loan mortgage modification.  

The following are ways to modify your California mortgage loan terms:

1. To lower your interest rate on your home loan
2. Change an adjustable rate to a fixed rate loan
3. Reduce your principal balance
4. Extend your loan term, to lower your payments
5. Eliminate missed payments, penalties and fees

A common misconception is that you have to be behind in payments to qualify.  That is not always the case.  However, if you are behind in payments it does create some urgency on the lenders part to work with you on a loan modification Ca loan redo. The key is take some action and get some professional help or try it on your own.

Reasons Why Your’ Lender Would Qualify You For A  California Mortgage Modification Agreement.

1. To Stop Foreclosure on your home
2. Your mortgage payment is to high
3. Your interest rate just adjusted or is about to adjust
4. You are behind in your payments
5. You have an Option-Arm loan also know as “Pick a Pay” loan
6. You are experiencing a hard ship-loss of income, job loss
7. You need temporary assistance

All the above are the most common reasons for a loan modification Ca homeowners redo of your existing loan terms.  If you fall into any of the above categories you should take some action and get help protecting your family and your home which someday may become your biggest asset when home prices make a comeback.

Publisher- Michael Kench Uncategorized loan-modification-ca

California Attorney Based loan Modification Process

You can represent yourself in a court of law, if the trial is of a serious nature it is best to have a professional represent your interests. By utilizing a 3rd party you are accessing their expertise in a loan modification Ca program.

The first document that needs to be sent to the lender is the authorization form. This form notifies the lender that an Attorney is working on your behalf. After the authorization is acknowledged, the loan modification package is ready to be submitted. Each and every package that an attorney-backed company sends will be accompanied with a demand letter. This letter is demanding action on the file within 60 days. Included in the package: Mortgage statement, insurance declarations page, 30 days pay stubs, W2s, full tax returns, bank statements, other supporting financial documentation. Last but certainly not least is  the hardship letter. This is the borrower’s one chance to address the lender and tell their side of the story. It  is important for you the client to pour out your heart and let whoever is reading your hardship letter can feel the emotional pain to coincide with the hard facts that the attorney is providing.

Level 1

Once the package is received and uploaded into their internal system, it will go to initial review (Level 1). Level 1 is generally a front line employee in an underwriting department. They are looking  for major red flags that would immediately disqualify you for a loan modification Ca homeowners program. Low fixed rates or substantial monthly surplus/deficit are two of the reasons you may be disqualified. If you are using a quality loan modification processing company, you should never have a mortgage modification denied at this stage. Most companies would catch a major red flag  prior to submission. Generally, those who don’t know what they are doing get a level 1 denial. Ultimately it is a waste of everyone’s time, most importantly the borrower.

Level 2

After Level 1 review the file moves to Level 2. Level 2 is generally someone who has the authority to sign-off on a loan modification Ca agreement. This is sometimes a management or supervisor level position. The level 2 reviewer is now ‘underwriting’the file. They are going over financials and supporting documentationto ensure that they match up with the borrower’s and processing company’s statements. Often, they will come back to the processing company asking for clarification or additional information. This step is the longest of all the steps as the lender wants to ensure that if they give you a loan modification program that you the borrower will in fact be able to handle the new terms and that the lender is not giving up too much ground on the loan modification Ca  modification agreement. After the review process is over, it is time to be assigned to a negotiator.

Level 3- The Negotiation Level

When the level 2 reviewer assigns the file to a negotiator, the client has in fact been approved for a  modification loan agreement. Now, we are to find out the terms to be set. Once it is with a negotiator it can take some time before an offer will come. The negotiation is the third level and the end of the process. Many negotiators will take the review from level two and crunch the numbers to find a reasonable solution that protects the lender but also helps the borrower. If there is an investor on the loan, the negotiator will also go to the investor for a sign off on final terms so that an offer can  be made. At this stage is where the attorney can use their negotiating skills and tactics to achieve the best results for you the client. When the negotiator decides on the loan modification Ca agreement offer, the offer will be sent directly to you the client. It is a very exciting time, but the processing company needs to review the offer to make sure it makes sense for all parties. It is possible to go back and re-negotiate a new offer. Once the offer is signed and return, the home loan modification agreement  is complete. However, there are instances that the borrower is not happy with the terms. Most companies will try to renegotiate but this will drag out the process and/or make the first offer null and void. Most times, the offer is the ‘first and final’ offer.  So you want to make sure you negotiate the best deal the first time.

One final note There are, of course, many different ways to approach a loan modification Ca agreement. Some believe in the litigation route and others believe in the hardship route. Both have their pluses and minuses. In the end, both will have to provide a compelling argument and a full and complete package to procure a loan modification for their clients.

Publisher- Michael Kench Uncategorized loan-modification-ca

Loan Modification Misconceptions

There are many misconceptions concerning modifications and loan modification Ca homeowners and a lot of inexperienced  people providing misinformation. The first thing any homeowner should know is that they can  try to modify their own loan. Loan modification processing companies are still considered a  luxury. However, just as you can represent yourself in a court of law, if the trial is of a  serious nature it is best to have a professional represent your interests. By utilizing a 3rd party you are accessing their expertise in loan modification and relying on their objectivity in what can be an emotional negotiation. But, how does a loan modification Ca program work, and what are the steps?

A loan modification is a private negotiation between the client/borrower and the lender.  Title and escrow are never involved. However, the steps are very similar to a refinance. First, you need to find out if you qualify for a loan modification agreement. The homeowner is going to have to provide full financial details of their personal situation and, if self-employed, their business’ financials, as well. When looking to do a loan modification you should be looking for not only do you have a ‘bad’ loan but is also in a bad situation.  Just because you have a rate above 7% does not necessarily make you a great candidate of a loan modification Ca program. However, if you have  a decrease or loss of income, medical hardship or their rate is adjusting upward in a month then you become an excellent candidate. The hardship, whether financial, medical or personal, is the difference between a qualified home loan modification candidate and someone who is just unhappy with their loan.

Once you identify yourself as a good candidate for a loan modification Ca agreement. You will have to gather your financial documentation and prepare to submit a loan modification package to the lender. Instead of using a debt-to-income ratio like you would use in traditional financing, you use a personal profit & loss statement”Income & Expense Profile” to show both the financial hardship and to have the lender see that if you were to provide a loan modification Ca program on your loan that it would take you from a poor situation to one that you can better handle. This is the goal and intent of a loan mortgage modification

Publisher- Michael Kench Uncategorized loan-modification-ca

Refinancing Initiative:
Under current rules, those families who own less than 20% equity in their homes have a difficult time refinancing and taking advantage of the historically low interest rates. Therefore, the refinancing initiative in the new plan provides refinancing help for homeowners with less than 20% equity in their homes or who owe more than their home is worth. This will reduce the need for a loan modification. Loan modification Ca Homeowners to benefit. This initiative is open to homeowners who have conforming loans which are guaranteed by Fannie Mae and Freddie Mac. who owe up to 5  more than their home is worth.

According to the plan, it offer assistance to as many as 7 to 9 million homeowners making a good-faith effort to stay current on their mortgage payments “creditworthy” or “responsible” homeowners can refinance their mortgage into a 30- or 15-year, fixed-rate loan based on current market rates. The refinanced loan, however, cannot include prepayment penalties or balloon payments. This will benefit homeowners from resorting to a loan modification for assistance. For many families, including loan modification Ca homeowners this low-cost refinancing may help their mortgage payments by up to thousands of dollars per year.   Homeowner Affordability and Stability Plan will support a recovery in the housing market and ensure that these workers can continue paying off their mortgages.

The Plan:

1. A  Loan ModificationProgram To Reach 3 to 4 Million  Homeowners 
2. Shared Effort with Lenders to Reduce Interest Payments.
3. Incentives to Servicers and Borrowers.
4. Required Participation By Financial Stability Plan Participant.
5. Modifications of Home Loan Modification During Bankruptcy.
6. Support Low Mortgage Rates by Strengthening Confidence in Fannie Mae and Freddie Mac.
7. Provide Access to Low-Cost Refinancing for Responsible Homeowners Suffering From Falling Home Prices.
8. Clear and Consistent Guidelines for a Loan Modification Program .
9. Support Local Communities and Help Displaced Renters.

These will benefit all loan modification Ca homeowners, renters and local communities. An occupied home is good for everyone in the communitie.

Mortgage rates are at 40 year lows. Under the program more homeowners will be able to refinance their homes at a more affordable rate, lowering their monthly mortgage payment. “For many families, a low-cost refinancing could reduce mortgage payments by thousands of dollars per year. For example, consider a family that took a 30-year fixed rate mortgage of $207,000 with an interest rate of 6.50% on a house worth $260,000 at the time. Today, that family has $200,000 remaining on their mortgage, but the value of that home has fallen 15 percent to $221,000 – making them ineligible for today’s low interest rates that generally require the borrower to have 20 percent home equity. Under this refinancing plan, that family could refinance to a rate near 5.16% – reducing their annual payments by over $2,300.”

As with the rest of the plan, including loan modification Ca applications about this initiative will be released at a future date on March 4, 2009—including what, if any, credit score requirements will be included.

Full details can be found here: U.S Treasury-  Full Article

Publisher- Michael Kench Uncategorized loan-modification-ca