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: 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
July 3rd, 2008 12:24 am
Why would anyone want to modify their mortgage rate if they are underwater by at least 40% and increasing monthly? The decision has been made for you. You walk unless the bank takes a ” deed in lieu” or a quick short sale. The problem with the banks is they are not quick enough on their feet. Once you stop making payments and they see that comps are drastically below the amount owed, they should make an offer to shorten the process. To do otherwise is not in their benefit. They are still in shock. They’ve been in the driver’s seat so long they don’t know how to mitigate their losses and they are frozen stiff like a deer in the headlights. They offer temporary interest rate reductions when they have no value left in the loan. That is real “chutzpah”!
July 3rd, 2008 12:29 am
Some banks are reappraising and giving you a 90% fixed rate at 5% vs taking the home. It is really incredible what I am seeing.
July 3rd, 2008 12:37 am
Who will pay for all of this ?The taxpayers ? In the end what is it all about ? You combine that wiht the judgement about the cancellations, it means incredible losses. It’s sad for those that didn’t or couldn’t benefit from the measures. And what will be the number of these modifications ?
July 3rd, 2008 1:27 am
Response to Marc A.:
Number of loan modifications? Tens of thousands, if not, hundreds of thousands. We still have a couple more years of this nonsense to go. “Loss Mitigation” is now the operative term these days.
Response to S. Couper:
Better to take a 40% write-down than to take a 60%-65% outright loss. That’s why the lenders will do the “Mods”.
July 3rd, 2008 7:29 am
What if your home is in a negative equity position, but you have cash in the bank / can pay your mortgage? Is it ethical or possible to have the loan modified? Do you need to be unable to afford the loan for them to modify?
Foreclosures all around my condo have made it really dangerous. Of course, I can’t sell because the value is WAY down. If I short sell I’m in a recourse state so they could raid my emergency fund. (I keep 6 months expenses liquid for emergencies like job loss or illness).
Any insight is appreciated
July 3rd, 2008 8:05 am
Mr. MORTGAGE SHOULD NOT BE USING THIS FORUM TO PUSH AN OBVIOUS PERSONAL FINANCIAL INTEREST! GREEN CREDIT SOLUTIONS = MR. MORTGAGE
July 3rd, 2008 8:53 am
“Some banks are reappraising and giving you a 90% fixed rate at 5% vs taking the home. It is really incredible what I am seeing.”
The fools that overpaid and bought a house they couldn’t afford now get their loan written down and new a fixed rate at 5%?? People such as myself that watched the bubble from the sidelines couldn’t get anywhere near that rate right now. As usual, the prudent get punished and the gamblers get bailed out……
July 3rd, 2008 9:07 am
I also operate a lawyer based loan modification firm in Florida and was the only firm to attend the Coalition for Mortgage Industry Solutions in Washington DC. The servicers are wholly unprepared for this crises. Check us out
July 3rd, 2008 9:28 am
can this also work in “non-bubble” states? I have friends I believe have rates that have adjusted this past May, and are just waiting (it seems) to go under.
July 3rd, 2008 10:41 am
What does this mean for the securities based on these mortgages?
July 3rd, 2008 10:48 am
Marc – currently the banks are paying but if this new $300 bb bailout goes through the tax payer is on the hook.
July 3rd, 2008 10:48 am
Evil – yes.
July 3rd, 2008 10:54 am
TYLER: I CLEARLY STATE IN THE VIDEO AND ON THE POST…what I am doing for consumers is better than letting them try to find someone on their own. Many will get burned that way. I bet at least 80% of the people claiming to being doing Mortgage mods are not experienced or will rip people off. Period.
They are an advertiser and for that I appreciate them, that’s for sure. It costs a lot of money and time bringing you guys news that nobody else does FOR FREE.
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
July 3rd, 2008 11:10 am
‘Loss Mitigation’ still generates losses. Can banks or homeowners afford another round of ‘Mods’ every time house prices decline by another 10% or so? How many more losses can technically bankrupt banks absorb? What makes anyone think the new payments will remain ‘affordable’ when more jobs are lost, the cost of living skyrockets and credit cards are maxed out. ‘Loss Mitigation’ is like bailing out water from the Titanic with coffee cups. The ship will SINK! – it’s just a matter of time.
July 3rd, 2008 11:11 am
I agree with Mr. Mortgage! Tyler, MR Mortgage has not violated the trust his readers and viewers have in him. I believe in his ability to vet firms more so than i can do myself. Furthermore, he has a right, and i would say the responsibility to earn a living from his website. He provides a great service. I’m not sure where you get this altruistic view of the world.
July 3rd, 2008 11:28 am
Unless GCS guarantees that the new MM (‘Mods’ Mortgage) will be ‘affordable’ for at least 2 years, their ‘due diligence’ isn’t worth the paper the MM is printed on and will just contribute to soaking the homeowner dry more quickly. Good business for GCS, though! They get another fee each time they ‘help’ to negotiate another MM.
July 3rd, 2008 11:31 am
PS “There’s no business like SHOW business” seems to apply to a lot of businesses!
July 3rd, 2008 11:34 am
PPS Make that ‘desperate homeowner’ in the earlier Comment. It’s always better to do SHOW business with someone who’s desperate!
July 3rd, 2008 11:37 am
Good point Eternal about the two years. But what are the choices. Sometimes if you can buy someone some time, they can get their crap together. Also, if they wait any longer and have to do a mod, they will have to split the upside with the govt. Screw that.
July 3rd, 2008 11:38 am
PPPS Desperate cows have been known to pay good money to anyone who promises to milk them!
July 3rd, 2008 11:45 am
The desperate cows will get ripped off. I am saving them from that. Hey, I told everyone they could go onto loansafe.org and try to do it themselves and also said they can get a good mortgage broker to do it. They will get screwed but they can go that route. I dont have to defend myself fool – this is my house.
July 3rd, 2008 11:49 am
I’m glad to detect a sliver of Optimism in admin!
As they say, “The proof of the pudding is in the eating”. They key to a worth-while MM is in a realistic assessment of the homeowner’s situation/prospects and the bank’s future. I wouldn’t put much faith (or $$$) in any bank’s future. And homeowners are known to be a bunch of wishful thinkers, right? (especially the ones with an ‘upside down’ mortgage). But I agree that ‘buying time’ can be a good investment! 
July 3rd, 2008 11:59 am
admin: The word ‘fool’ was extraneous in your otherwise intelligent Comment. And, I prefer to think that ANY house is only borrowed (rented, to use your terminology) for as long as we occupy it. I believe that you’re a reasonable fella – with a streak of altruism and trying to do the ‘right’ things.
July 3rd, 2008 12:04 pm
‘fool’ is a friendly term to me.
HEY FRENCH DUDES – this is where I draw the line if you know what I mean. Most other languages are accpetable. Translations please.
July 3rd, 2008 12:21 pm
OK, admin – let’s be friends then. Where we’re going (all of us), we need all the friends we can get! Sometimes I’m just a Stirrer – I leave the Shaking to Someone else (888, not 007).
July 3rd, 2008 12:53 pm
I have contacted Green Credit Solutions for my wife’s
bloom loan last night. I told them Mr. Mortgage helped us.
The bank had contacted us many times and try to keep
us from “walking”. The loan will be reset in 2010, but there is no sense to continue the payments now if the equity continue going down and would not come back in a near future.(8 or 10 years?)
many people did not realize how bad the economy is
now. My friend lives in an apartment complex. There are
many tenants are behind rents two or three months. the landlord won’t do a “foreclosure” either.
Mr. Mortgage, what is the advantage using GCS instead by ourselves and deal with the bank directly?
July 3rd, 2008 12:58 pm
What’s all this about proving a hardship before getting a mod.? I don’t want the house. In a non-recourse state (Calif i.e.)and if the mortgages are “purchase money” loans and if there is no fraud and the house value has depreciated 50% – I’m walking. The terms are written right in the purchase contract. If I don’t pay the mortgage the lender gets the house in three to six months. All I want to know is how can I speed up the process?
You call them and you get a recording. They never call back. Are they sticking their head in the sand and pretending that you will just go away?
What the hell is the hold up?
NOD, AUCTION, REO – Game over.
You call me. I’m not calling you again. The place is a ghost town and I’m not sticking around to be the last man standing.
The lenders are unprepared to deal with this scenario because they always protected themselves with a conservative LTV. This shows me the true value of an Ivy-league MBA.
I don’t even know who holds my note any more. They trade them like baseball cards! I just got a notice that they changed mortgage servicer – Again! (old one went belly up?). That adds more time to the process because when that occurs, you get more time to send a payment (or not) to the new servicer (presumably to figure who to send the payment to) before they can start the foreclosure.
Is this crazy or what? At this rate they won’t get a house until mid-2009 when the value has fallen another 15-20%. In the mean time they have another non performing asset. They are acting as if they are still in the driver’s seat. Wake up and smell the Napalm! Rome is burning!
TIAA-CREF Weekly Market monitor http://www.tiaa-cref.org/about/press/publications/market_monitor/2008_06_23.pdf
says we are at the “End of the Beginning” of this fiasco. It could reach a Trillion dollars in losses before it ends. Chilling comments.
July 3rd, 2008 1:02 pm
No more french for me – it hurts my brain (having to try and recall stuff from high school) – but how about we cool the zionist, conspiracy stuff as a compromise? This is a discussion of mortgage and housing issues.. not Zion.
(and now back to your regular programming)
July 3rd, 2008 1:02 pm
Wow, this sounded like one big ad.
Is the person who inflated their income to buy a house they could not afford going to get principal reduced by the lender? Are the banks verifying income when it’s in workout or do they not even want to know the truth?
Are people who bought with no money down or cash back at close going to actually get instant equity by having the loan set at 90% of the newly appraised value? So now they can sell and take their equity and run? I find that disgusting.
And is principal reduction going to affect comps, showing the real price of the house so non-liars can afford the house next door? Doubtful! This keeps prices inflated.
Most people in trouble are in so far over their heads, they’d need a good 40-50% reduction of principal to afford their house. Is that really going to happen? Wow, crime does pay. Great country, this America!
July 3rd, 2008 1:10 pm
I am all for the site making a buck and feel the story is very worthy as a significant solution to the problem. At the same time, I hope that plugs will not be an impediment to recieving the latest breaking news.
July 3rd, 2008 1:12 pm
Linda – By virtue of allowing stated income, no ratio and no docs loans, they were endorsing lying about income. They never wanted the real income. The income used on a 1003 was a function of what the ratios needed to be given all other debt. You know this.
July 3rd, 2008 1:15 pm
Dave – I said in the story to ‘go to loansafe.org’ or call a ‘mortgage broker that is going mods’, but MLI has checked out GCS solutions and they will nto rip you off – they are legit. You guys are looking way too much into this. They are an advertiser and for that I appreciate them, that’s for sure. It costs a lot of money and time bringing you guys news that nobody else does FOR FREE.
July 3rd, 2008 1:27 pm
Why get in a huff about Mr. M promoting something via HIS site? He’s not St. Francis of Assisi from cryin out loud – the dude has a right to make a living.. heck.. even a GOOD living. He’s checked it out and believes its a worthwhile service – so use it.. or don’t..
July 3rd, 2008 1:33 pm
linda, you are a refreshing blast of clean air!
What we are dealing with here is a voracious black hole which will ultimately consume anything within its Event Horizon. That black hole has a bar code of 729 stamped all over it!
Hark! – I hear a great sucking sound of mortgages, houses, neighborhoods, 51 States of the Union, the Constitution, Liberty and countless victims. Before we go down the gurgler, let’s at least take some of those nasty slimeballs (who did it) with us!
July 3rd, 2008 1:39 pm
Hey Mr M – you do work hard, and most here do really appreciate it – like Micheal said (I like the st. francis part
) I have found your site to be most credible.
You have an awesome long weekend, and enjoy your friends and family for a while – given all this crap, I think we all need a break….and I am pretty sure Rome will still be burning just as bright Monday morning (lol).
cheers,
A.
July 3rd, 2008 1:50 pm
Hey! – I just noticed something ‘interesting’ about 729: If you add the middle digit (2) to the other 2 digits (7) and (9), you get 9-11. Weird, huh?!
The occult like to dabble with numbers, I heard! 
July 3rd, 2008 1:50 pm
[...] Editor’s note (7.3.08): MUST READ – Mr. Mortgage on Mortgage Modification [...]
July 3rd, 2008 1:52 pm
Mr. Mortgage,
My loan is serviced by CountryWide, owned by Lehmans – sold to MBS market. My DTI is 60%, my loan amount is $575 and my home is worth around $415K. CW refuses to do anything for me saying they have no power to do anything.
I’d like to keep my home. If I walk “which I might” Lehman loses $200K right off the bat. Add in realtor fees, lost payments, taxes etc. Why can’t I get CW to see the light. I don’t want to leave my home, I am trying to make it work, my expenses are sinking me especially with Healthcare, GAS and Food going up so quickly and my pay isn’t going up.
Any suggestions? besides walking?
Thanks,
Bill
July 3rd, 2008 1:57 pm
Admin, Let me state again that what is happening is great and important news and is a must see for any visitor to your site to get the whole story. This looks to be an effective and creative way to bring some bottom to the market and damage repair to both parties. So it is clear that common sense has entered the picture and bankers have decided to eat a little crow now rather than a flock later.
July 3rd, 2008 4:59 pm
Mr Mortgage is a shill for Green Credit.
Also, where is the equity in not sharing the appreciation with the lender? The lender is losing money through a principal reduction. Shouldn’t they be entitled to get some it back? I think the reason you are urging people to hurry up is to promote Green Credit and rip off more lenders…
July 3rd, 2008 6:56 pm
Mr. M:
Right. But:
Nobody *had* to buy a house.
Plenty of people resisted the temptation, didn’t get blinded by greed, and didn’t act imprudently. I had friends laughing at me, telling me I was paralyzed by fear, because I wasn’t going to sell my soul for a bungalow.
Well, if the chips were allowed to fall where they may, I might be able to buy that bungalow after all. But not if we prop up this house of cards!
And why shouldn’t the lender share in the equity they wrote off?! Should there be no penalty to the imprudent at all?
July 3rd, 2008 7:11 pm
Anyone else getting tire of this Mr. M. guy?
July 3rd, 2008 7:40 pm
Linda,
I completely agree, and I too had people laugh at me, I am not in CA, and our family refused to take “equity” to get the stuff we “wanted” but did not “need”, and now with inflation, I am wondering who will modify my loan? (No one), since we put 40% down, took a boring 30 year fixed, and can still pay, but shoot – with engergy costs where they are….how long can we still pay? does someone want to modify us, reduce my loan, heck, I’ll settle for 15% off, and let’s say, a 4.5% rate for my remaining 20 something years…that sounds about fair…what ever happened to buyer beware? I was taught that in 9th grade “law class”….I am not an advocate for suffering, but if I blew my family’s money for anything else; (drug, sex, gambling, plastic surgery; addiction) do you get a “re-do”….no, not so much….I would still be homeless, and everyone would say, “well geeze she was an ‘addict’ these thing happen, too bad for her family, ‘yeah shame”…” Well what about the addiction for swimming pools, BMW’s, Hummer’s, private schools, and European vacations?….
at the same time, I agree with Micheal’s post, listen, Mr. M is putting out info, use it or not, your choice – if you are a sheep at this web site???? You have to be kidding me? did you sign on for a crappy loan and now you believe anything without doing your own homework….heaven help you! you get what you put in….
I belived in my prudence, and now I feel punished for it.
July 3rd, 2008 8:32 pm
Pat – why the hell are you here? Tell us the truth…you filled out the Green Credit online form didn’t ya.
July 3rd, 2008 9:32 pm
The narket should be allowed to adjust downward, as no one tried to stop the upward move in values.
What should be changed is the credit ratings of those that have lost a home, but can afford a smaller payment.
For someone who was smart enough to buy at the right price, or for those that have rented waiting for a good value, it is not fair to bail out the greedy. Any bailout needs to be equal.
July 3rd, 2008 10:19 pm
I live in South Florida and am a Real Estate Professional. All my clients are not having the slightest luck with any kind of modification. I lost 8 short sale deals and the system is not working. Besides why would anyone in the right mind want to modify a loan when the values are 50% less than what they currently owe? I say run don’t walk away!
July 4th, 2008 4:56 am
Mr. Mortgage did you got some kicks from Green Credit Solution?..you might be kidding me, get a real JOB! go flip hamburger or sells orages under the Freeway. find out the real thing, did you try it yourself?..Have the professional do it, don’t bring any people from the street and lure people to go where you have personal interest ($$), If you homeowners have a problem and you looking for REAL help go to nonprofit organization that works directly thru Hud Fha Secure, Federal Home Loans and the government, they have consultants and can guide you thru your current lender and get a loss mitigator or modification and prevent foreclosure!.depending on your situation, they got lawyers, or try your congressman or congresswoman,Don’t pay these morons..trying to take advantage of the mortgage web side to take advantage of homeowners in distress for their own personal gains!$$$$$!!!
July 4th, 2008 9:58 am
Louise -FHA is nothing more than a subprime dumping ground. You have no clue Lousi. First of all in CA for example who can afford an FHA secure at $700k. Nobody can qualify. Not even at FHA standards.
BEING FORWARD THINKING
There are millions of people who are perfect borrowers, have never missed a payment, are in a negative equity position and who will default or walk away in the future due to it. Due to the new Gov’t bailout for the bad borrowers, these borrowers will lose their home to either the bank or the Gov’t. That isn’t right.
The banks and IB’s messed up badly by getting greedy and and made bad loans to bad borrowers. Good borrowers who put 20% down went full doc and make their payments every month are being destroyed. This is who I am trying to help. Right now they are on their own. The banks should compensate these people, especially if it was because a borrower who never should have been there inthe first place losing their home next door. These people will end up being bailed out in the future no doubt – everyone will. But at the expense of the tax payer. The liars and theives can go to FHA or deal with the new Govt bailout and split their upside for all I care again at the tax payers expense.
NON-PROFIT HELP
Hope Now has help for this and say they ‘helped’ 1.5 million people. I called them to test it out. They told me…
-make a budget
-cut down on spending money for things that are not essential for living
-take shorter showers
-keep the AC/heater off unless it is unsfae to do so
-take public transportation
THIS IS THE HELP NON-PROFITS GIVE. Do your home work buddy and be forward thinking for a change.
July 4th, 2008 10:58 am
take shorter showers? LOLOLOLOLOLOL!!!! uh huh, that will save my home…….that is the most insulting thing I have ever heard!
July 4th, 2008 11:15 am
I think mods are good. The mortgagees might not think so. I say if you can get it done do it. And then do it again and again and again and again. B/C prices are going down in many areas for the next couple years at least! All the estimates have been too optimistic so far.
“get it done now b/c you’ll have to split the appreciation” – What freakin appreciation? When’s that gonna be? You’re too optimistic Mr. Mtg.
And to all these cry babies that didn’t buy and feel they are getting ripped off? Tough luck. You made your bed. Sleep in it. Be thankful you’re not having to go thru hell!
July 4th, 2008 11:17 am
[...] Mr Mortgage on Mortgage Modifications: You May Qualify! [...]
July 4th, 2008 11:29 am
NEW POST UP ON MORTGAGE MODS – YOU ARE WRONG…UNLESS YOU AGREE WITH ME OF COURSE.
http://mrmortgage.ml-implode.com/2008/07/02/mr-mortgage-on-mortgage-modifications-you-may-qualify/
July 4th, 2008 2:50 pm
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
July 4th, 2008 6:24 pm
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.
July 4th, 2008 6:43 pm
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!
July 5th, 2008 1:27 am
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.
July 6th, 2008 12:31 pm
THIS CHAT THREAD HAS BEEN CONTINUED IN A PASSIONATE WAY ON THE ‘PART 2′ STORY LOCATED HERE.
http://mrmortgage.ml-implode.com/2008/07/04/mr-mortgage-mortgage-modifications-part-2-being-forward-thinking/
July 6th, 2008 11:21 pm
[...] Mr Mortgage on Mortgage Modifications: You May Qualify! [...]
July 7th, 2008 1:14 pm
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, SMFCLOANS.com, 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 Mike.Naz@ModifcationServices.com — 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 – http://www.FixedCashFlow.com. 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.
July 8th, 2008 12:31 pm
[...] Mr Mortgage on Mortgage Modifications – You May Qualify! [...]
July 9th, 2008 12:02 am
[...] Mr Mortgage on Mortgage Modifications – You May Qualify! [...]
July 9th, 2008 7:38 pm
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!
July 10th, 2008 1:34 am
[...] Mr Mortgage on Mortgage Modifications: You May Qualify! [...]
July 10th, 2008 5:54 pm
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.
July 10th, 2008 11:27 pm
[...] Mr Mortgage on Mortgage Modifications – You May Qualify! [...]
July 11th, 2008 1:44 am
[...] Mr Mortgage on Mortgage Modifications – You May Qualify! [...]
July 13th, 2008 7:53 pm
[...] Mr Mortgage on Mortgage Modifications – You May Qualify! [...]
July 14th, 2008 2:00 pm
[...] Mr Mortgage on Mortgage Modifications – You May Qualify! [...]
July 15th, 2008 4:42 pm
[...] Mr Mortgage on Mortgage Modifications – You May Qualify! [...]
July 16th, 2008 11:41 am
[...] Mr Mortgage on Mortgage Modifications – You May Qualify! [...]
July 16th, 2008 12:51 pm
[...] Mr Mortgage on Mortgage Modifications – You May Qualify! [...]
July 18th, 2008 3:36 pm
[...] Mr Mortgage on Mortgage Modifications – You May Qualify! [...]
July 19th, 2008 11:34 pm
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 outreachhousing.org 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.
July 20th, 2008 12:23 pm
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.
July 20th, 2008 12:59 pm
how do I get a reply?
July 20th, 2008 2:49 pm
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.
July 22nd, 2008 9:00 pm
[...] Mr Mortgage on Mortgage Modifications – You May Qualify! [...]
July 23rd, 2008 3:20 pm
[...] Mr Mortgage on Mortgage Modifications – YOU MAY QUALIFY! [...]
July 23rd, 2008 4:37 pm
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
July 24th, 2008 11:23 am
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.
July 31st, 2008 1:53 pm
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?
August 7th, 2008 12:01 pm
[...] Mr Mortgage on Mortgage Modifications: You May Qualify! [...]
August 7th, 2008 8:05 pm
[...] Mr Mortgage on Mortgage Modifications: You May Qualify! [...]
August 12th, 2008 1:00 pm
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.
August 16th, 2008 11:55 am
[...] Mr Mortgage on Mortgage Modifications: You May Qualify [...]
August 16th, 2008 11:59 am
[...] 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 [...]
September 3rd, 2008 1:53 pm
[...] Mr Mortgage on Mortgage Modifications: You May Qualify! (86) Posted on July 2, 2008 9:22 PM [...]
September 15th, 2008 7:55 pm
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.
October 2nd, 2008 5:31 pm
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
October 27th, 2008 9:37 pm
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
November 11th, 2008 7:20 pm
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?
Thanks,
Piro
November 19th, 2008 5:08 am
Is South Carolina one of the states qualifying for the call out.
November 19th, 2008 5:10 am
Is South Carolina one of the states qualifying for the bail out? How can I find the answer to this question. Thank You
January 11th, 2009 6:09 pm
Can anyone refer me to a reputable mortgage modification company that is 100% reputable as I looked up Green Credit online at http://www.onlinebusinessbureau.com 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.
January 20th, 2009 4:55 am
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.
http://activerain.com/loanmodexpert