Ilyce Glink published an easy to read, if disconnected article on getting a mortgage loan modification negotiated successfully. She starts out with a sample letter received from a subscriber. I get the indication it’s representative of many, many letters. Further on, she re-states the tired, old advice to call a free HUD counselor: They “may” have other ideas. The fact is: they’re swamped and don’t have any more clout than the homeowners themselves. What has changed since the original publication is that the banks have figured out that they can sandbag attorneys just as much as the individual distressed homeowner.
Ilyce reports two previously reported facts: “about 9 percent of eligible homeowners have had their loans modified on a temporary basis, and an even tinier percentage have has those temporary loan modifications made permanent.”
Just now surfacing in the media are reports that many lenders are rescinding those ‘trial modifications,” for no apparent reason.
Ilyce also dances around another nefarious practice of the lenders: telling them to miss a few payments and call back then. This is the bank’s answer to demonstrating ‘imminent default.’ The problem is, the Foreclosure Dept’ at that same bank then initiates foreclosure proceedings. You can’t win.
The biggest complaint by the long-suffering would-be modifier is that it takes too many months. The fact is that your house is their asset too. They can take as long as they want to to get it to performing asset status. What you can do is prevent illegal foreclosure; which happens when you’re in the middle of a mortgage modification negotiation.
One last item that Ilyce almost clarifies; negotiating a loan modification and stopping a foreclosure are two separate processes. Any homeowner SHOULD be able to accomplish that also. Simply call your county Trustee and check the auction calendar every month.
Reading between the lines here, I believe that Ilyce knows most, if not all of this. Ilyce just doesn’t quite have the authority to confront that elephant. Financial reporters talk to banks and are beholden to them.
The REST Report is accepted by the nation’s courts as the ultimate authority of unbiased calculations to decide if mortgage modification or short sale is best for a distressed property. Either strategy is better for distressed homeowner and mortgage investor. It is not the most advantageous for mortgage servicer, which is why those same servicers are so quick to foreclose. 4000 successes out of 4000 submissions is a pretty good record.
I am a proud vendor of the REST Report. I also have the best Hardship letter template anywhere.
This YouTube video says it all. Go here: How to Get A Beneficial Mortgage Modification Now
I have a web submission form at the bottom of this home page. Talk to me.
I read every comment. Please use the Comment box below and tell me what you think.
Read the article here
tags: do it yourself mortgage loan modification, avoid foreclosure,foreclosure alternatives,stop foreclosure, prevent foreclosure,mortgage loan modification colorado, mortgage loan modification nevada, mortgage loan modification arizona, mortgage loan modification new mexico, mortgage loan modification california, mortgage loan modification georgia, rest report,
Originally posted 2009-08-22 21:18:28. Republished by Blog Post Promoter
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It is advised to receive help from a professional when it comes to modifying the terms with your lender. An attorney can significantly lower your monthly payments.
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FHA Flipping Waiver for 2010
As of Friday, January 15, 2010 the FHA has suspended its 90-day anti-flipping rule. For 1 year, this will allow FHA buyers to obtain loans on properties that have been recently purchased by investors. The suspension expires Feb 1, 2011. Specifically this requirement is 24 CFR 203.37a(b)(2).
Combined with the extension of the $8000 tax credit for first time home buyers and this promises to move a long list of distressed properties to new home ownership and avoid the growing number of vacant and therefore at-risk properties. The effect of this waiver will be to bring distressed property rehabbers back into market. It will benefit Real-Estate-Owned (REO), or bank-owned properties the most.
If the resale price is 20% higher than the investor’s purchase price, the investor will have to demonstrate proof to an independent appraiser that renovations and repairs justify the higher price. This will assuredly trigger two appraisals. New property appraisal rules make this possible.
Basically Freddie Mac financing will benefit. Fannie Mae will hold off and check the progress of this development. When they see the anticipated significant benefit, they’ll be along directly.
FHA buyers pay retail price usually because of their less-than-prime credit. The refusal of mortgage financing by conventional lenders is well-known. This should move a lot of property to occupancy and performing asset status, as well as allow rehabbers to comfortably return distressed properties to excellent condition.
The new seller/owner/investor must hold title to the property. This will prevent the same-day double close so prized by the real estate flipping investor. It’s estimated that it will take two weeks or more for the investor to enable title work to be filed and recorded. Still, two weeks is much better than the 90 days that investors have had to endure for decades.
Buyers and sellers in what is referred to as an A-B, B-C transaction (B representing the investor) must be at ‘arms-length, or no relation. There can be no financial advantage to the original seller. On the other hand, the investor is not required to reveal their profit to the original lender.
The property cannot show a history of ‘flipping’.
Assignments of Contract for Sale will trigger a red flag.
The seller must be Owner of Record.
Entities such as LLCs, corporations, and trusts must be properly established and operating in accordance with applicable state and federal law.
There are minimum inspection requirements for the property. Investors will be encouraged to include as many closing costs as possible in the A-B transaction.
As someone who has watched the lenders do everything they can to avoid mortgage modification, short sale and REO sales for the last year; take that, Bank of America. Your turn is coming.
Current FHA qualifications are a minimum FICO score of 580 for a 3.5% interest rate. 3% down payment. Below 580 needs minimum of 10% down. Seller contributions will be limited to 3% summer of 2010, down from 6%. a day late and a dollar short
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