‘Mr Mortgage on Mortgage Modifications’ video…Banks are being very generous and time may be of the essence: http://www.youtube.com/watch?v=pt8MghqnXSg . Send this video to family and friends. You never know who may need help.
Overwhelmingly, the greatest number of emails I receive from readers are about mortgage modifications and ‘when should I buy’. If mortgage modifications are done right, they are one of the most beneficial foreclosure prevention tools available.
I am a big fan of mortgage modifications and have been for quite some time. But the space has been tough to get my arms around because lenders are constantly changing the rules as they go. Also, the space has gotten a bad name because there are many crooks out there who will take your money and not provide you any service. They can actually make your situation worse very easily.
In the past couple of months, however, many big lenders jumped to the same page and are offering unheard of deals. This is likely because they have so much REO coming back they can’t handle any more. They have finally realized that it is cheaper to do an aggressive loan modification and keep people in their homes paying their mortgage like a good borrower than foreclosing.
Factoid: In CA in May, banks took back 26k homes and 74k nationally. Trust me, they do not want your home too. They are eager to work something out if your present mortgage or equity position is presenting a ‘hardship’ and there is a chance you may default or walk.
Time may be of the essence. Why I think it is important to look at modifying now is because at the present time, you do not have to share your future appreciation with anyone. After a modification, you get a fresh start. However, if this new $300 billion bailout goes through you may have to share your future appreciation with the Government and/or bank after you are given a modification.
If you live in CA, NV, AZ, FL or any other ‘bubble state’ and are in a negative equity position, you stand a great chance of being modified. Also, if you have an exotic loan like a Pay Option ARM, 2/28, 3/27, 5/1 ARM or high LTV 2ndmortgage that is now underwater, you stand a great chance. In bubble states, many people can qualify for modifications simply due to how far the value of their home has fallen. Very few know this.
‘Loan Modification’ is fast becoming a buzz word. The fact of the matter is it has been around as long as mortgage and it really is under the umbrella of Loss Mitigation Services. When borrowers have been misled and put into a fraudulent mortgage, an attorney would take recourse in correcting these RESPA and TILA violations.
Today, due to the credit crunch and mortgage and housing implosion, home owners are stuck in situations that may ultimately lead to foreclosure. This is not necessarily because they were mislead; rather due to adjusting rates on exotic loan programs and home values declining the most in the shortest amount of time in history.
Home owners are truly experiencing hardships due to market conditions. Many attorney’s and brokers have started to loss-mitigate these situations trying to find fraud in a loan and leveraging a law suite against a bank to do so. This may work but does not seem ethical for many deals such as stated loans for example, where the borrower may be the one that took advantage of the bank in the first place.
There is hope. There are a few companies out there who specialize in the ‘new’ type of mortgage modification. At ML-Implode we have an advertiser who was thoroughly checked out named Green Credit Solutions . They have developed a business model designed to help you stay in your home and help banks keep a paying asset on the books. It is a win-win and nobody gets sued.
This is why I like these guys… Green Credit Solutions was founded by Mortgage Broker/Lender that was widely known for their superior compliance and efficiency working with the major banks across the country. Those relationships developed a volume work flow that is not only helping people stay in their homes through a loan modification, but helping the banks lose less money and maintain a performing asset on the books. They are also an attorney-backed solution, so they do leverage the law and years of mortgage experience to get the best modification out of the bank possible.
If you are out there looking on your own, It is important to understand that no “modification” company should offer a guarantee, as they are playing with the banks money and it is ultimately the banks decision. There are many crooks out there so be careful.
The market and industry are changing so fast, it is key that Green Credit Solutions has their ear to the ground and can adapt to the bank’s goals in order to service the home owner. If not for the working relationship with the banks, the cost incurred to perform the job would be 10 times as costly.
Having an attorney-backed product is most important as the laws are changing in every state at a rapid rate. The attorney network is constantly staying on top of the laws and researching better ways to help home owners.
Though the process may be hard to comprehend and sometimes a little gray, mortgage modifications done right through firms like Green Credit Solutions are saving homes and facilitating a quicker recovery for our economy.
What is Loan Modification: Working with banks to find an affordable payment based on your total income. This can include a lowered rate, principle balance and extended terms in order to get your monthly payment down and fixed. The burden does not just fall on the bank. Those wanting a modification are required to get their finances in order and sometimes make hard decisions based on monthly expenses.
What is Short Sale: If modification cannot be reached, a negotiation can be made with the bank to sell it for less than you owe and not foreclose.
What is Deed in Lieu: When the bank agrees to not foreclose and accept the house back from the home owner. The bank will give a release date and in some cases help with relocation expenses.
Note: Green Credit Solutions is a paid advertiser with MLI and Mr Mortgage. However, I had to refer readers to somebody or there is a great chance they could get ripped-off. There are many unscrupulous people i n this space. We have done our due-diligence on GSC and believe they are the top company in this space. They do a free full pre-qualification and hour long intro before any money is collected so the home owner is fully aware of their risks and odds of a modification. If a modification is not achieved a partial refund is given. GSC is modifying the majority of applicant. -Best Mr Mortgage