EasyNoPayLoanModification.comDon’t Pay To Do Your Loan Modification

The present financial crisis and collapse of the mortgage industry may lead you to ask the obvious question, “Why are financial institutions even concerned with Loan Modification?” Why don’t we check out the present financial environment.

How Home Foreclosures Impact the Financial Industry

A total of 861,664 families lost their homes to foreclosure last year, according to RealtyTrac’s year-end report . What may be more surprising it the foreclosure filings during 2008 skyrocketed to a 30-year record high with 3.1 million foreclosure filings Depressed, scared, angry? Home prices have fallen over 21% from their peak according to the S&P/Case-Shiller Home Price index. In many areas the decline is much worse with home prices falling more than 40%.However there are many areas across the country that have seen house prices fallen. And adding a flood of foreclosed homes to already slow markets further lowers demand and prices, creating a whirlwind of lower prices and higher foreclosures. As a result, more homeowners who fall behind on their mortgage payments end up losing their homes, according to Jay Brinkman, the chief economist for the Mortgage Bankers Association
What would it be like if you were the lender and that you allowed someone to borrow money from you so they would be able to purchase a home? You and the borrower agreed to some terms for payback of the borrowed money, with one of those terms being that interest would be charged and the borrower would pay some interest with every payment they make.

Doesn’t this seem like the perfect way for you, the lender, to make easy money without working hard for it? However, let’s say the borrower stops making payments and the housing market crashes, so they can’t sell the house to get out of the loan.

Do you want the house, rather than ending up having to take the mortgage property back and then sell it at a very discounted price.

This is the reason WHY loan modifications are of interest to banks and other financial institutions. If they can change the terms of the loan sufficiently that you can afford to keep paying them for many years into the future, they will be happy. They make much better money off a mortgage that is being paid back than they do off a home that they have to go through the trouble of having to repossess.

At this point, it should be clear why a lender would be interested in negotiating your loan and changing some of the terms. The next article will discuss HOW TO GET A LOAN MODIFICATION. Click the links for more information loan modification or Debt Relief

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Homeowners that were not approved for loan workout previously might want to give it another look. They might have been denied last year, but under the new guidelines, it’s a whole new ball game.

Many of the mortgage companies are re-evaluating loan workout applicants that were turned down previously but may be considered viable borrowers under the new guidelines. Part of the motivation for the loan servicers willingness to grant a chance to applicants for mods could be the incentives paid to them over time of up to three to five years for successful mods. Lenders can receive incentive payments just for trying to implement loan modifications so it’s no surprise that they are taking a more flexible stance. With more government funds directed at reducing a borrower’s loan to income ratio to a maximum of thirty one percent, loan servicers are becoming increasingly comfortable with executing loan modifications with homeowners that were considered as high risks nine months ago.

The typical procedure for the second try mortgage modifiations sets up a trial period for the borrower while the loan workouts is being evaluated. During the trial period the mortgage payment can be reduced from $500 to over $1,000 per month, but there is zero tolerance for late payments and other infractions. In fact, during the trial there are no grace periods for late payments at all. They need to ask what the due date is and the exact amount, with the cents.

If a payment during the trial period is received even one day late the borrower will be disqualified from the trial period and be deemed ineligible for the government sponsored loan program. This would be considered a second strike on the borrower, making any successful attempts to modify in the future very doubtful. A returned check will result in the same actions so borrowers are encouraged to send certified funds or make payments by wire transfer or Western Union.
Once the trial period is completed, the borrower can enter a mortgage modifiations process following the guidelines set forth in the Making Home Affordable plan. Depending on the specific conditions facing the borrower, interest rates can be reset to as low as 2%, missed payments can be pushed back to the end of the loan, and there is a possibility that some of the principle on the loan balance can be reduced.
The second chance that the Making Home Affordable plan provides could be the difference between borrowers staying in their homes instead of losing them to foreclosure or filing bankruptcy. While the restrictions are tight, borrowers with the discipline to stay on track through the trial can get a modification which will save thousands of dollars and make their mortgage affordable again.

Don’t be fooled by the banks on these second chance programs as they are a last resort and should not be taken lightly as the trail period does not guarantee a payment reductions at the end. I say “buyers beware” on this program. Do everything you can by hiring an experience professional to get a mortgage workouts first before ever entering into this program.

If you want to get qualified quickly and securely please do so with our online inquiry form now at http://www.callams.com

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Do Nothing - The stress of facing foreclosure can push many homeowners into letting the foreclosure process run its course. Doing nothing may not be the best choice, instead research your options, or find a source that can help you and provide solid direction. One of the options may be doing a attorney loan modification to save your home. There are many options, so investigate the right one for you.

File Bankruptcy – There are new bankruptcy laws sitting in Congress to be voted on that would help the homeowner when it comes to interest rate reduction. These news laws have not been passed, but keep checking back to see if and when they are passed.

Currently, filing for bankruptcy may not relieve you of your obligation to repay your mortgage, the foreclosure may still proceed, and of course there is the negative impact to credit.

Short Sale - A short sale typically is executed to prevent a home foreclosure. It means that you are selling your home for less then what you owe on it. The impact to your credit is less severe then that of a foreclosure showing up on your credit.
Often a bank will choose to allow a short sale if they believe it will result in a smaller financial loss than foreclosing. The downside to a short sale is that it takes time to sell a home even at a bargain in this housing market, but it will also depend on short sale price. Keep in mind that the short sale process with the bank can be lengthy and usually takes 60 days or more for the bank to accept the short sale offer. Also, when the home is listed for sale, you are still responsible for your taxes.

Loan Modification – A loan mod an option that can save your home while putting you in a [mortgage|home loan|home payment|mortgage payment[/spin] you can afford. So how does a Loan Workout work and who is eligible for a California Loan Modification? Below are some helpful tools and resources for you.

The most common Loan Modification are forgiveness of payment defaults & fees. A Loan Workout can help homeowners who can’t refinance or afford their current mortgage payments. Getting an approved loan modification for troubled home loans can help stop the foreclosure process.

Be very leery if your bank sends you a letter in the mail stating they will accept partial payments for three months and then after that period they tell you they MAY offer you a California Loan Modification. This may be a scam by the bank just to collect money to help them. However, this does not help you in that the notice of default clock is still ticking. If the lender is not going to put you directly into a California Loan Modification, call a professional for help immediately. Don’t get caught in their scam as they DO NOT promise the Loan Modification at the end of the three month period. Too many people have lost their homes because the banks did not put them into the California Loan Modification after the three month period and started the notice of trustee sale shortly after that period.

We can offer free foreclosure help to homeowners that want to keep their home. Please use our short form to receive a free foreclosure assistance consultation. Our consultation is FREE. http://www.callalms.com

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Obamas plan to rescue the troubled housing market’s philosophy is based on helping struggling homeowners stay in their homes so that plummeting property values slow, thus forming a bottom. There are many who refute this idea based on the fact that over 50% of fast loan modification in the first quarter of 2008 re-defaulted within six months.

The fact is, these modified loans were based on the homeowner calling into the mortgage company directly and not an Attorney acting on behalf of a homeowner. It is a fact that mortgage company bullied homeowner back into bad loan terms once again as the homeowners didn’t know better and couldn’t fight these large institutions. That is one reason an experienced loan workout Attorney can help homeowners get into a better negotiated plan, as they know what to negotiate and won’t be bullied by these institutions. It is just like trying to complete your taxes on your own. A CPA is better as they know the ropes and can save you more money then if you did it yourself.

Many new details were released on Wednesday about the new restructure plan; let’s see how some of the questions on many homeowners’ minds were answered.

Will I get affordable monthly payments?

In his most recent letter to shareholders, the Oracle of Omaha himself, Warren Buffett, wrote, “Commentary about the current housing crisis often ignores the crucial fact that most foreclosures do not occur because a house is worth less than its mortgage. Rather, foreclosures take place because borrowers can’t pay the monthly payment that they agreed to pay.” Obamas new plan seems to echo this belief and centers on making monthly payments affordable in order to keep people in their homes. Remember not all lender are signing up and supporting The Presidents request! And did I mention, it is our tax money that most of these banks are using to bail us out, I believe that is called TARP – Troubled Asset Relief Program!!

What’s the magic payment number?

Thirty one percent. Obamas plan requires participating loan lender to reduce payments to no more than thirty eight of the homeowners gross monthly income. The government will then put in money in order to lower payments further to no more than thirty one percent of the gross monthly income. Do keep in mind that there are additional programs that are not based on someone’s debt ratio’s and rather look at a household’s cash flow and base it on their ability to pay. Also, not all banks are participating in this program.

What about my interest rate?

The first thing the bank would do is lower the interest rate to as low as 2 percent. If that’s not enough to hit the 31 percent threshold, they would then extend the terms of the loan to up to 40 years. If that’s still not enough, the lender would forebear loan principal at no interest. The plan does not require servicer to reduce mortgage principal, an important point to remember. It is also important to know that not all servicer participate in the program and the ones that do may not go as low as 2%. As a homeowner, do not expect the 2% as it is not a for sure bet, it is only a suggestion. Most homeowners will likely see 3.75% to 5% as a final interest rate. If you are one of the lucky few that receives the 2%, then good for you!

Did someone say incentives?

There are quite a few incentives to both the homeowner and servicer. mortgage company will be paid $1,000 for each modification and an additional $1,000 payout each year for up to three years, as long as the homeowner continues making payments. Homeowners can get up to $1,000 knocked off the principal of their loan each year for up to five years in reward for timely payments. Neither party can partake of these incentives until the modified loan payments have been made for at least three months on time.

Who is eligible?

The Presidents plan is an effort to help responsible homeowners —not speculators. Only owner-occupied, primary residences with outstanding principal balances of up to $729,750 are eligible. Occupancy status will be verified through documents, such as the borrower’s credit report. The program is designed to target homeowners who are undergoing “serious hardships”—such as a loss of income—which have put them at risk of default. Only loans originated on or before Jan. 1, 2009, are eligible.

What if I have a home equity loan?

The details on this are still unclear. While the Presidents plan does address the issue of second liens such as home equity loans by offering incentives to extinguish them, it has not spelled out how it intends to work with second lien holders specifically.

Why would my servicer take part in the new plan?

Net present value: To determine if a particular mortgage will be modified, the servicer will perform a so-called net present value test. The test compares the expected cash flow that the loan would generate if it is modified with the expected cash flow it would generate if it isn’t. If the modified loan is expected to produce more cash flow for the mortgage holder, the mortgage company is to restructure the loan. Howard Glaser, a mortgage industry consultant and a U.S. Department of Housing and Urban Development official during the Clinton administration, called this component of the plan “clever,” arguing that it would work to ensure broad participation. “When you apply the formula, the loans that are modified are the ones that are in the best economic interest of the investors to modify,” Glaser says. “The Presidents subsidy for the payment on the modification…tips the scale toward how loan mod works as a better deal for the investor.”

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Are you late on your payments?
Are you upside down on your house?
Is your rate adjusting?
Have you tried to refinance, but have been declined?
Do you fear foreclosure?

A stop foreclosure is the best tool if you are behind on your mortgage and are headed towards foreclosure. With a loan modification, the mortgage loan is renegotiated to a more affordable payment then what you already have.

Here at http://www.CallALMS.com, our contracted Attorney’s negotiate successful mortgage loan workout on your behalf with your bank to save your house. Our Attorney’s are retained by you and have a 99% success rate in their negotiations, else your money back!
Here are some answers to questions that may help you:

What is a loan mod?

A mortgage modification to an existing loan made by a lender in response to a borrower’s long-term inability to repay the loan. loan workout typically involve a principal reduction. These loan modification sometimes take your arrears and forgive them or add them on to the existing balance of the loan. The key thing to remember is you are brought current and get a fresh new start with a payment that is more affordable. A lender might be open to modifying a loan because the cost of doing so is less than the cost of default.

How can I save my home from foreclosure?

If you and your family can no longer pay the mortgage due to higher interest rates or you can not refinance because you owe more than your house is worth, take action now! We can not only take the stress off your shoulders at a time like this, but also get it done. We have top negotiators and most importantly our Attorney’s know WHO to negotiate with at the servicers.

These three basic things are usually required in order to qualify for a attorney loan modification:
1. Desire to Keep the House
2. Experienced a Financial Hardship
3. Income/Employment - Able to continue making lower payments

The actual attorney loan modification agreement itself will vary from lenders, but the key is getting a payment that is more affordable for you. Work with someone that is experienced that can get the best rate/program for you.

Most loans needing loan workout company are conforming loans put together by popular big banks like; HSBC, CitiMortgage, Wachovia, ASC, HFC, Countrywide, Household, IndyMac, JPMorgan Chase, Wells Fargo, Washington Mutual, Aurora and Bank of America and based on Fannie Mae and Freddie Mac guidelines.

If you are late on your mortgage or even if you’re current but it’s becoming a financial strain… http://www.CallALMS.com can help you! You can qualify online right now using our fast and secure attorney loan workout form.

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As we have always mentioned in this blog, your loan modification should include a well written letter of hardship, and this is a very important part of your application.  But once this is all set and done, what you lender will be looking for is if you will be able to afford the new payments after the loan modification. This is the other very important part for you to be able to get a loan modification approved.
The first thing you need to know is that the manner that lender will calculate your income for a loan modification is usually very different from a traditional income calculation to qualify you for a regular loan.
For a loan modification you can, and actually should use ALL the income resources that you may think of and be able to provide documented proofs for each and every one of them. Income from a second job, income of your spouse and any other income source you may have. The sum of all your household incomes will provide a new qualifying income for you loan modification.

Remember, lenders are not interested in losing you as a homeowner. Their best interest is for you to stay in the house, not to under-sold your house to foreclosure. With this in mind, you will need to do your best to come up with a good strategy in showing all your incomes and prove that you can make your loan modification payments.
Lenders not being very pro-active in the matter though, may sometimes be dragging their feet in getting back to you. Let them know that you are waiting for a response from them, don’t let them forget about your case. Sometimes, all it takes is a friendly reminder. When the lender sends you their proposal, don’t just accept it without reviewing it in all its details. If you don’t agree with all the terms, you don’t have to accept them.  Negotiate further until you come to an agreement.   For more information about loan modification click HERE.

Simple Loan Modification

There are many articles and information out there that want you to believe that doing a simple loan modification request is a hard thing to do.  the truth is that if you know the basics that you need to know which you can find right here on this blog, it is not difficult at all and your chance to get approved right now,  will be very high.

A hardship loan modification may help distressed homeowners avoid foreclosure.  Today,  most mortgage lenders are more then willing to work with homeowners who want to remain in their homes since they are losing a great deal of money when a property is repossessed.

You can make a simple loan modification if you have a valid hardship.  This is the first question you need to ask yourself since your hardship letter will be the center of your loan modification application.

What is a valid hardship?

Lenders will consider a valid hardship if you were laid off, hospitalized, divorced or unable to work.

Your job will be to write a hardship letter which will explain the circumstances surrounding the hardship in detail.  The letter should clearly convey the circumstances that are causing the hardship.

The letter should be to the point, not blaming the lender, but your circumstances.  Lenders are receiving loads of loan modification letters that they have to read one by one, if yours is very clear and to the  point, this will be to your advantage.

Most lenders will also want a detailed description of your accounting which should accompany the hardship letter.  This will include proof of income, tax returns, bank statements and other proof of income or expenses.

If you are a homeowner who is  going through a valid hardship, you should take the necessary steps to negotiate a simple  loan modification. The sooner  the better.

People today are feeling the crunch of higher interest rates, One way or an other most people in America today have been affected by the bad shape of our economy, and many people who had never even had the thought of losing their home are now faced with foreclosure.

Home foreclosure in America today is at an all time high and is affecting many homeowners who had never believe that it could happen to them.

The good news is, however, with these bad economic times which affect ALL or us,  the banks want you to modify your loan because they have also realized that it is definitely NOT their best interest to foreclose on a house .

Each delinquency and foreclosure is costly to administer, with a typical foreclosure estimated at $60,000, or about 20-25 percent of the loan balance with the addition of legal fees of about $4,000 and expected to go higher.

Don’t forget also that the banks already have an overwhelming number of properties in foreclosure and just don’t need any more.

These are the reasons why the best time for Loan Modification is now!

The time has never been better for consumers owning a home to take action and request that their loans be modified towards better terms and a lower interest rate.  If you are going through financial difficulties, a loan modification might be the ONLY way to save your home.

When in financial challenge, spending big money with a loan agency or a lawyer might not be your best interest either.  Because of this people have learned that what the lawyers do is nothing more than gathering the paper work and presenting the package to the lender.  Guess what? With a little of education in the matter you can do that yourself.  The basics are one and the same and if you know what has to be done in order to present a good loan modification application you have all you need to have to be successful and receive a modification on your loan. Check our loan modification FREE report

If there was ever a good time for loan modification is now.

Why you may ask?

Well, at this time banks can no longer afford to keep foreclosing on homes at the rate they are now. They simply can’t do it anymore!

The crisis that you are in right now is affecting your bank as well. Make no mistake and understand that for your own good.

This is YOUR time; this is the time of the buyer, not the seller. Yes, this is the time for loan modification.

Why should you try to modify your loan? Here are the main reasons why people do a loan modification.

1) you can no longer afford your mortgage payments

2) You financial situation has changed

3) You have lost you employment and are in a transitional situation

4) You’ve lost your employment, find another one with a lower salary

What is loan modification anyway?

Loan modification is exactly what it sounds like, a way to modify the terms of your loan so that you wind up with payments you can afford. Loan modification is NOT to be confused with refinancing, where the bank as the control. Loan modification can help YOU cut down interest rates and principals down to some dramatic numbers as high as 50% in some cases.

Can I do a loan modification myself without hiring someone to do it for me?

Yes, you can. Of course every loan modification agency or lawyer would tell you that you can, but shouldn’t. The truth is that it’s how THEY make money, by doing for you. But all they are doing is very simple, and with a little education in the matter you can do it yourself.

Where Do I learn What To Do?

EasyNoPayLoanModification.com will educate you in doing your own loan modification. For starter download the FREE report. It is a quick read of the essentials. If you want more information and get ready to go ahead with your loan modification get our loan modification GUIDE.

Many people are still very confused about what a loan modification is and what it really does for their financial future.  If it’s your case, please read on.

A loan modification will adjust your mortgage payments, according to your present financial condition. This is not to be confused with a forbearance agreement, which is an agreement made by the lender to the borrower to pay back past due amounts prior to being foreclosed.

You don’t need to be on the verge of foreclosure in order to apply for a loan modification.  As a matter of fact you should act much before you get to that point.

Loan modification, really is on your side and it is your duty to introduce it to your lender. Why do we say your duty? Because lenders are NOT proactive in the matter, but if you are, they will most likely accept your proposal as they will not benefit with the foreclosure of your house whatsoever.

What will this do for you?

Once your application is accepted, it will offer you a permanent change on your mortgage payment, save your home from foreclosure, and most of all keep you and your family in the house.

What are the qualifications for a loan modification? They might be many different versions, but the main ones are:

1) Inability to refinance due to loss of equity.

2) Financial hardship due to loss of job or other inability to work.

3) Facing foreclosure due to delinquency.

Important details you need to know before you file.

Lenders like to receive all the paperwork at one time. If you omit something, your application will be backed up and the whole process will be slowed down as well. Make sure you have a checklist of all the required paperwork and your hardship letter.

You should start as soon as possible as it may take from 30 to 90 days for a loan modification to complete.

You don’t have to face the loan modification challenge alone. However, we understand that you don’t have thousands of dollars to give to a lawyer just for filing paperwork that you can file yourself. We have created a quick FREE loan modification report