Mr Mortgage on Mortgage Modifications: You May Qualify!

Posted on July 2nd, 2008 in Daily Mortgage/Housing News - The Real Story, Mr Mortgage's Personal Opinions/Research

‘Mr Mortgage on Mortgage Modifications’ video…Banks are being very generous and time may be of the essence: . 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

95 Responses to “Mr Mortgage on Mortgage Modifications: You May Qualify!”

  1. […] Mr Mortgage on Mortgage Modifications: You May Qualify! […]


  3. Your all a bunch of bickering idiots. He shouldnt of bought,they deserve it BS comments from some of you idiots. Billy bob in the cornbelt saying Californias take European vacations, buy BMW’s etc is such BS. HOW ABOUT SOMEBODY JUST WANTED TO GET OUT OF AN APARTMENT BECAUSE THEY HAVE A FAMILY AND TRYING TO BUY A HOME TO LIVE IN!!!!!! BANKS RAN UP THE PRICES WITH NONSENSE LOANS IN THEIR PONZI FINANCING.

    FOR ALL YOU IDIOTS let me ask you a simple question, but first pull your head out. If I bought a home in CA 3 years ago for $400K “i know thats a lot for most of you hillbillies in the midwest” why would the price nosedive? I can understand homes in Detroit nosediving if the automakers ahve trouble etc. But statewide and nationwide why would home prices ever nosedive to this degree. There is higher demand for homes than ever because the population keeps growing which makes sense but nobody is qualifying to buy a home now because people make $60K or so on avg. so they need a home that costs about $180K. Full doc, 20% down. WE NEED A REGULATED MORTGAGE INDUSTRY TO KEEP THE GREED and SLIME FROM SCREWING UP SOCIETY

  4. Oh my god! Regulation ? You will give a heart attack to neo-cons and the right wing ultra consevatives that believe in no regulation. You must be a big bad liberal. 🙂 Regulate the bums.

    Regulate them. You should re-regulate the scumbags called lobbyist. The greed and the slime sits in the “Con”gress and they ain’t listening to you. Goldman Sachs calls the shots, and I do not think that it will change, not with Mc”Cocacaine” and not with Oba”mamma”. It’s reflate the bubble or die at all costs. Who cared in the first place about affordable houses ? Who ? Nobody.

  5. I just watched the YouTube and heard something quite shocking: that an unnamed GSE took back 15,000 homes last month (June?) and then sent a memo to top management saying no more foreclosures, figure out a way to keep people in their homes.

    That to me is just shocking, and I can’t think of a reason why that memo should be kept secret! Please let the cat out of the bag!

  6. I know someone in risk mgmt at that GSE and last month they took back 15k homes. They are bleeding from the eyes. Its either Fannie or Freddie. Take your pick. They are both still great shorts so whichever you chose you can’t lose.


  8. […] Mr Mortgage on Mortgage Modifications: You May Qualify! […]

  9. Here is an example that I will share, as a dedicated mortgage banker who thrived on the originate to securitize model who has worked for Accredited Home Lenders and Countrywide Bank and now for a lender,, a law firm and Modification Services, Inc. I always believed in the “Price to Earnings” or its inverse the “Cap Rate” of any property as a good measure on how to define value – in relative terms compared to rental rates in the area of comparable properties. Is it cheaper to rent or own? Banks totally ignored this since 2002 and the beginning of cheap money. I am now funding loans under the most conservative guidelines in the history of modern mortgages, full doc mostly and the occasional stated income loan at 65%LTV. If I can’t do it conventionally, because of negative equity, credit or hardship, my partners and I work with the existing lender, the client’s attorney and my bank to reduce interest rate, and now principal when justified by a Broker Price Opinion or Appraisal. I have worked or am working with Loss Mitigation at EMC, Wilshire, Indymac, Countrywide, Option One, Litton Loan Servicing, Ocwen Servicing, AHM, GMAC and WAMU. The banks will always reduce interest rates first and then reduce principal if they absolutely have to (30-50% loss or greater). I have a client offered a $132,000 principal reduction from one of the lenders above- but they can’t qualify through a conventional refinance and short payoff. Their credit is shot. The lender may just allow them to stay in home under lowered payment for 6 months, to make it a performing loan, then try to refinance it themselves on FHA once the credit is FHA worthy, and then forgive the overage. The loan amount is $412,000, current lender ordered BPO is $152,000-210,000. They naturally want to reduce down only to $210,000, when the BPO shows $152,000. 619.847.3555 or — My Personal Website that explains more of the P/E and Cap rate and how this necessarily defines the bottom line price at any given time point is at – We are all in this mess in the first place because the banks all use the Sales Comparison Approach to determining value in a flat to declining sales market, because that is how it has always been done for owner occupied properties. They did this in an appreciating market in order to make larger loans to meet their quarterly projections and bonuses, with no regard to comparable rental rates in the vicinity for comparable properties, and are were not nimble enough to change the practice in mid 2007 when markets started to decline. Bottom line is this – Is it cheaper to rent or to own? If you stayed in your home, how much would it get if you rented it out? would you stay at that rental payment? if so – email me and let’s get started.

  10. […] Mr Mortgage on Mortgage Modifications – You May Qualify! […]

  11. […] Mr Mortgage on Mortgage Modifications – You May Qualify! […]

  12. I have a question for you Mr. Mortgage:

    Realizing that the banks are willing to negotiate and that there are 4.25 years worth of inventory left to burn through, is it worth it to wait a little while before negotiating with the bank?

    I’m in Riverside County, owe $382,500 on a house that is presently worth about $250,000. I’m convinced that my house will decline even further. I’m scheduled to adjust from an 8.1% interest rate in November.

    From your experience, how soon do you think it will be before legislation makes it down the pike into law. I spoke to Green Credit Solutions and am planning to utilize their services.

    Thanks for the great site!

  13. […] Mr Mortgage on Mortgage Modifications: You May Qualify! […]

  14. There’s a variety of legitimate free services, non-profits that will help you complete a loan modification. One of them is the Los Angeles Neighborhood Housing Services, who has been around for 25 years helping first time buyers, but now helping people stay in their homes. In speaking with them, they indicate banks are willing to do loan modifications when: 1) There’s a visible need. For instance, you had medical expenses that put you in financial bind. Perhaps you had a momentary drop in income and you’re trying to recover from that period. 2) The mortgagor can pay the modification. In other words, if you’re unemployed they will not modify your loan. Although losing a job qualifies as “need” it cancels your ability to pay the modification. 3) Substantiation: In order to qualify for a loan modification you need to do a full doc application. You have to show your bank statements, pay stubs, last 2 years income tax returns, and a half dozen other documents, including your “hardship” letter. The bank wants to make sure you don’t have a $100,000 CD hidden somewhere. 4) You get priority if you’ve been late or have missed payments. There’s a difference between a loan modification (which typically includes a lower interest rate or adding the outstanding payments to your principal)to recasting the loan which changes the balance due. Lenders will recast the loan only when there’s the treat of a law suit or they know they are guilty of fraud and fear being sued. If you’re part of the growing number of families disaffected with their home value plunging and you’re just looking for a hand out, well let’s just say that your turn hasn’t come up yet.

  15. […] Mr Mortgage on Mortgage Modifications – You May Qualify! […]

  16. […] Mr Mortgage on Mortgage Modifications – You May Qualify! […]

  17. […] Mr Mortgage on Mortgage Modifications – You May Qualify! […]

  18. […] Mr Mortgage on Mortgage Modifications – You May Qualify! […]

  19. […] Mr Mortgage on Mortgage Modifications – You May Qualify! […]

  20. […] Mr Mortgage on Mortgage Modifications – You May Qualify! […]

  21. […] Mr Mortgage on Mortgage Modifications – You May Qualify! […]

  22. […] Mr Mortgage on Mortgage Modifications – You May Qualify! […]

  23. I think it is a great service you do with refering a “legit” company..Here in Fl, already known for being #1 for mortgage fraud..companies like are ripping people off. They are taking a “monthly” fee for foreclosure help and have people posing as “attorneys” in their office. Very scary to see the stuff going on out there…(the owner use to be a subprime mortgage broker.) My friend went there for help and was concerned about them taking money from her when she already couldn’t pay her mortgage. I will tell her to contact green instead.

  24. I owe my lender $509,000. My house is worth $600,000. My interest rate from day one is 12.75 and 9.75%. My mortgage is $4,300. I stopped paying my mortgage in June. I’ve invested over $90,000 in interest in 22 months. What should I do? My house is currently on the market. In April 2007, my home appraised at $715,000. My lender Chase made several mistakes on my loan preventing me from re-financing at a time where banks were still doing stated-income loans, I had sufficient funds in the bank, and I had 20% equity. Please give advise.

  25. how do I get a reply?

  26. I stumbled onto this site while looking for an avenue to warn people about the prevalent modification scams. I have been a loan processor for over 20 years in California and like most others am struggling to find a new career. Looking for a part time job to support myself while in school I have run across many ads from escrow, brokers, lending institutions who are hiring for modification sales agents. In the last 8 weeks I have worked for 4 of them and quit. They are selling the modifications to desperate people without the ability to preform. It’s like an after thought to them, lets get this going and collect peoples money and figure out how to get it done later. “I WAS OUTRAGED” All four companies were bringing in over 30K per week without being set up to help any of these people. The last company I went to work with brokered the Green Credit Solutions modifications. The transactions submitted to Green were handled professionally and the homeowners were contacted with ligament options. The homeowners who wanted to proceed signed a retainer agreement with an attorney and the process of the modification started. I thought I had finally found a way to use my industry knowledge working with a ligament company who set themselves up to modify loans. On Wednesday of last week the company that I started working for decided that they wanted to make more money on the modification so they stopped using Green credit and started there own modification process.They typed up some forms and started selling. They have no experience requesting a modification, dealing with the banks and have two processors with little or no mortgage experience. They hired 25 new employees from Craigslist and obtained 24 modifications in one week. At 3500.00 a piece that is 84K in one week or I like to put it as 24 victims that are already in a bad place in life and it just got worse for them, not better. Mr. Mortgage is right, there are and will be even more scams regarding modifications. PLEASE BE CAREFULL, we all want to think that there is still good out there and we let our guards down when we are most vulnerable. I would say Green Credit did the groundwork and has the facilities,staff and connection to legitimately modify loans. I am sure there may be others but if anyone says they have been doing modification for over a year, they are lying, if they say the have a 95% success rate they are lying. They have to say no guarantees and no implying. They need to provide a sound request from an attorney for the best interest of the bank and the homeowner by making a legitimate request to modify the loans so they stay preforming and keep the homeowner in the home.

  27. […] Mr Mortgage on Mortgage Modifications – You May Qualify! […]

  28. […] Mr Mortgage on Mortgage Modifications – YOU MAY QUALIFY! […]

  29. We bought 6 acres and a doublewide mobile home 6 and 1/2 years ago for $123,000. 11.78% intrest and payments of 1200. a month. WAMU is modifying our loan. They said they would drop our intrest to 10.13, and payments by 100. a month. Our tax value on our place is 80,000. Is this modification a fair one. We live outside of Austin Texas.

    thank you
    Tereasa Morales

  30. My husband lost his job for 6 months last year. We have 3 kids. He travels, I work as a Hospice Nurse. I love helping people. Fidelity and Trust bank put us in a home…predators. We rec’d 11 good faith estimates and had to wire the company an additional $3000.00 the day of closing to get into the house or be homeless-we were already living in a hotel because they kept moving the close date back x 2 weeks. Anyway, we are now in foreclosure. We started the “modification” process after missing 3 payments. Our rate went up to 10%! We’ve been here for 2.5years. We are first time home buyers and have gotten screwed so many times. Our loan has finally settled with Chase. We call twice a week. They keep telling us that our account is with the underwriters. It has been 120 days and no word. I finally talked with a guy Andre today from Chase and he says not to panic. I have been panicing since last year and trying to support my family. No vacations here! Anyway, are we getting put off so that Chase can take possession of our home? We were told not to send in payments by a lady named Marla and now Andre says we were misinformed…we should send in payments. I am too scared to trust anyone…I need to know how to proceed. Our acct is “on hold”….when should we hear something. Who the heck are underwriters? Why can’t we get a “yes” we can refinance you or “no” start looking. We can now afford to make the 2600.00 (10%)payments monthly since hubby has secured a job comparable to the one he lost. We have no savings. I am now trying to get a second job to help out….please help if you can.

  31. My husband wants to modify our current mortgage. Question: if we modify and end up having to walk away, can the bank go after his personel assets? If we dont modify and walk away again, can the bank go after his personel assets? He has lost his job, we are under $150k with the house. He has a large amount of money with a financial advisor (our daughters college fund) if we modify and then walk away can the bank go after this money? Should he move this money into a trust to protect it?

  32. […] Mr Mortgage on Mortgage Modifications: You May Qualify! […]

  33. […] Mr Mortgage on Mortgage Modifications: You May Qualify! […]

  34. Moving funds into a trust at this point in time could be considered fraud. The trust can be disolved and funds taken from that if the bank wins judgement against you. A trust must be in place for quite some time to prove that it is not just a shelter from trying to defraud someone. Now if those funds had been in a trust for 4-10 years, or a the very least a few years before the loan was made yes, that could help you. I am not an attorney and everything varies from state to state.

  35. […] Mr Mortgage on Mortgage Modifications: You May Qualify   […]

  36. […] Guide to the TRUTH! » Mr Mortgage: The Real Estate ‘Quickening’ is Upon Us on Mr Mortgage on Mortgage Modifications: You May Qualify!Mr. Mortgage’s Guide to the TRUTH! » Mr Mortgage: The Real Estate […]

  37. […] Mr Mortgage on Mortgage Modifications: You May Qualify! (86) Posted on July 2, 2008 9:22 PM   […]

  38. We have just modified our mortgage four months ago. We are now paying $1,075.84 per month. Now four months later Accredited is changing the terms of the modification. They are doing this by charging us an additional $345.00 per month because there is not enough escrow coming into the account. Now our payments are $1,422.00 per month. We can’t make these payments and they refuse to work with us. For us foreclosure is on the horizon because there is no way we can make this payment.

  39. Simple Question, I have a fixed mortgage and I am not presently working but am recieving a pension. I am not in default yet but it is getting close,my bills are also overwelming me. I made a mistake and got a HELOC on top of all, in which it just about place me in the neg. It is possible to do modification. This home was purchase in 2005. Thak you

  40. TITO – or anyone else that needs HELP – EVEN if you have already gotten a loan mod.
    We can offer you 3 separate programs to assist and KEEP you IN your home!

    EVEN if you have NO Equity
    EVEN if you CANNOT verify your income

    There is HELP out there!

    Call (866)405-4051

  41. Mr. Mortgage,
    I have tried contacting my lender on this and also asked someone at Experian. Experian stated that Loan Modifications DO NOT affect credit score or rating. However after asking my mortgage lender if it affects my credit they stated that it does show up on Credit score and rating and is derogatory… Can you please give us a definitive answer on whether it does or not and cite where you got this information from please?


  42. Is South Carolina one of the states qualifying for the call out.

  43. Is South Carolina one of the states qualifying for the bail out? How can I find the answer to this question. Thank You

  44. Can anyone refer me to a reputable mortgage modification company that is 100% reputable as I looked up Green Credit online at and checked to see if they are listed with the online bbb & they are NOT and the online BBB stated to beware of this company ???? like everyone else said this is serious business getting a loan modification as there are humdreds of thousands jumping on the band wagon that will steal your money and you lose your home.
    Anyone out there that has actually gotten a loan modification with a good reputable company? please let me know.

  45. I have referred many people to Harris Capital Management of NY. They DON’T accept a fee upfront and you will pay for their services ONLY IF they procure a loan modification that you accept and can afford.

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