Explaining the mortgage modification mess — Part 4

Below is the fourth of four articles in a series published in the Grand Junction Free Press about the mortgage modification mess. All of the information in all four articles can be found elsewhere on this blog; but maybe it’s more convenient in these four chapters.

In the first three parts of this series, I described the recent legal precedence for current mortgage modifications. I defined the difference between a mortgage modification and a refinance. The practical, real world implications of the difficulties in negotiating a mortgage modification and three no-nonsense implications in getting a modification were spelled out. I justified the fees in getting an attorney-negotiated mortgage modification, and how to justify the choice between paying your next mortgage payment and paying an attorney.

FICO credit scores will suffer because of late payments, not because of any mortgage modification per se. If new – reasonable – negotiated payments are made successfully for a year, the credit score will recover. The ultimate goal here is new, permanent, affordable payments. The three major credit bureaus have added a new comment to mitigate a mortgage modification.

A little-known fact is that investment property mortgages can be modified providing that the primary, residential mortgage is in good standing. The implication here is that a multiple property owner should have his primary mortgage and total income evaluated; and then proceed through their investment portfolio to evaluate those mortgages also.

Another little-known fact is that second mortgages can be modified as well. They don’t fit in the HAMP program, but if you’re going to modify the first lien, you might as well negotiate the second as well. Again, the ultimate goal is 31 percent of net income to a negotiated mortgage modification to make the monthly payments affordable.

Like many reporters, observers, and homeowners, I personally spent a long time lamenting how unfair it was that a distressed property owner had to pay for a mortgage modification; especially when they would assuredly be strapped for the monthly payment anyway. The homeowner should know that when the application is submitted as a legal document, the mortgage servicer is not entitled to collect or assess any late fees or attorney fees. All missed payments get put on the end of the loan anyway.
The distressed homeowner has to ask themselves, Who comes first here? The REST Report has proven itself the sure-fire method to assure a mortgage modification or short sale.

I remember waiting my turn in the lunch line in school. We all do. That was when we all had faith we were going to get fed in due course and the line was fair. Today, if you wait your turn, you’ll likely starve. The homeowner that gets to the front of the line wins, typically in less than 60 days. This applies both to mortgage modification or short sale negotiations. (Just imagine buying your way to the front of the school lunch line!)

This YouTube video says it all. Go here: How to Get A Beneficial Mortgage Modification Now

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Originally posted 2009-09-25 22:59:35. Republished by Blog Post Promoter

Tagged as: avoid foreclosure, do it yourself mortgage modification, do it yourself short sale, foreclosure alternatives, loan modification arizona, loan modification colorado, loan modification nevada, loan modification new mexico, prevent foreclosure, rest report, stop foreclosure