Explaining the mortgage modification mess – part 1

On Friday Sept. 4 the GJ Free Press published the first part of what will probably be three or even four of my articles on the Mortgage Modification Mess as it stands currently. Because Google is the way it is, I am posting the entire article here:

The last week of July was full of news reports of how miserable the results of the U.S. Make Home Affordable Plan have been. I’d like to explain all of that.

There are actually three different pieces of U. S. Congressional action that deal with the mortgage economic mess:

* July 30, 2008 ‘Hope For Homeowners’ was passed by the US Congress.

* March 4, 2009 the US Treasury issued Uniform Guidance for President Obama’s “Making Home Affordable” plan which is the Administration’s stimulus strategy to get the housing market corrected.

* May 20, 2009 President Obama signed the ‘Helping Families Save Their Homes Act’, and the ‘Fraud Enforcement and Recovery Act’ (FERA).

There are four ways to attempt a mortgage modification:

1. The homeowner can attempt it themselves. Statistically the success rate was 20% for a homeowner attempting their own loan modification. They typically take 8-9 months. 40% of home-owner negotiated loan modifications have resulted in higher monthly payments. 80% of homeowner loan modifications have gone back into default. The first modification offer from the lender is not necessarily the best for the home-owner. It’s usually the best for the mortgage servicer. Many are being rescinded because the servicer has determined they’re not in their best interest.

2. The federal government has touted their free HUD-approved counselors. As of April 16, both CNN.com and PBS TV reported that the US Government had processed one (count ‘em, one) single mortgage loan modification. The first week of August, PBS again ran interviews with a few of these counselors describing how hard it was to get modifications accomplished. They’re subject to the same run-around as individual home-owners and investors. To make it worse, lenders are issuing three-month trial modifications and rescinding even successful modifications for no apparent reason, other than the servicer decided they didn’t like the initial terms.

3. As 2010 ends, the most effective way of getting a mortgage modification, and even more importantly, preventing foreclosure, is to get the REST Report. The REST Report uses the bank’s own software to calculate mortgage modification terms. If and when you might be called to court, you beat your servicer with their own stick. The REST Report has been sanctioned be every single foreclosure judge who has seen it. We have run 4000 reports with zero failures. Mortgage modification or short sale is ALWAYS the best solution for the mortgage investor. The REST Report becomes a legal document to be submitted to your investor, and your mortgage servicer knows it.

The Federal Trade Commission has issued their MARS Rule which will effectively eliminate almost every third party mortgage modification negotiator. Mortgage modification is now a do it yourself mortgage modification for 2011.

The Better Business Bureau has proven themselves incapable of evaluating any third party mortgage modification firm. I refer the reader to the CBS Sixty Minutes report a few weeks ago.

Click to read more about your Do-it-Yourself Mortgage Modification REST Report

This YouTube video says it all. Go here: How to Get A Beneficial Mortgage Modification Now Please ‘Like’ the video, will you?

Here is the link.

I originally thought I could get the word out in one article, but the effect of the three federal mortgage laws passed is complicated enough that it ballooned into at least two articles.

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Originally posted 2009-09-09 00:37:50. Republished by Blog Post Promoter

Tagged as: calculate hamp net present value, do it yourself loan modification, foreclosure alternatives, mortgage loan modification arizona, mortgage loan modification california, mortgage loan modification colorado, mortgage loan modification georgia, mortgage loan modification nevada, mortgage loan modification new mexico, prevent foreclosure, rest report, stop foreclosure