The media and press are oh-so fond of telling us what a miserable failure the Home Affordable Mortgage Plan, or HAMP, has been. It sells to highlight the hapless distressed mortgage owner who was denied a mortgage modification because of a treacherous and careless lender, or the crook that took their money and didn’t do anything to modify their mortgage.

The plain fact is that the law works. It is the enforcement that has failed. Very quietly the U. S. Treasury Dept. in conjunction with Fannie Mae and Freddie Mac, admitted that enforcement of HAMP is too big for them. I can go into more detail about that if anyone cares to call me; I’ll write about it in the future.

The banks are absolutely thrilled with any negative press about mortgage modifications and effective short sales. It has been proven that they make more money on foreclosures. Talk about giggling in the back room……..

Those rare individuals out there who have not been affected by this economic downturn (or THINK they have been unaffected), tend to dismiss the HAMP effort as assisting reckless and irresponsible homeowners who should be punished for their behavior. It rarely works to try to explain how one foreclosure affects five other surrounding homes and their values; and ultimately the community to these people.

Here, for those willing to consider the facts, is an article from the venerable Wall Street Journal that shows that even the dismal accomplishments of HAMP have had a beneficial effect on the overall housng market in the U. S.

By slowing the flow of foreclosed homes to the market, it has helped prop up housing prices, at least for now. The administration’s Home Affordable Modification Program, or HAMP, and other state and federal efforts to avert foreclosures have helped “buy time” for the housing market, preventing steeper home-price declines. This from Barclay’s Capital in New York.  Housing analysts at UBS Securities in New York, in a report last week, described HAMP as “a vehicle to delay the timing of new foreclosures hitting the market.”

Many analysts believe that a large share of the people who get modifications will default again within a year or two. I say again the banks want the distressed homeowner to fail. They make no effort to really ensure the mortgage modification applicants can complete all of the application requirements.

Treasury officials acknowledge the broader effect on home prices: “I think it has had quite a strong stabilizing influence” on the housing market, Treasury Assistant Secretary Michael Barr said in a briefing Friday. Admittedly, he has to say that. HAMP was his idea. Please take a moment to consider the positive effects if 5 percent of elegible mortgage modifications were approved. How about ten percent? Fifteen percent.

This article says, “Because of HAMP, banks feel heavy political pressure to carefully screen borrowers to see which ones might qualify for loan modifications before proceeding with foreclosures. That has extended the time it takes to decide whether to force through a foreclosure, creating a huge backlog of unresolved cases.” I personally can’t imagine how heavy the pressure is at the published one percent success rate.

Because the banks are avoiding the mortgage modification process, they are the ones “kicking the can down the road.” There is no excuse for ‘trial modifications.’ A trial modification is not a permanent modification. It is an excuse for your lender to find a way to deny a permanent mortgage modification.

One CEO is quoted as saying that HAMP has shamed lenders into assisting distressed homeowners. Again, I don’t see one percent as much effect. The software that I use to qualify a mortgage modification is approved by the U. S. Dept. of Justice. The shame is that more people dare to take advantage of the free counseling information. HAMP is not dragging out the housing recovery. HAMP does not even suggest trial modifications. The banks invented the tactic.

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tags: do it yourself mortgage loan modification, do-it-yourself short sale, mortgage loan modification, mortgage lender fraud, mass joinder lawsuit, mortgage loan modification colorado, mortgage loan modification nevada, mortgage loan modification arizona, mortgage loan modification new mexico, hamp, home affordable mortgage plan,

Originally posted 2010-01-20 22:21:01. Republished by Blog Post Promoter

Periodically I see an article that laments the spectre of a mortgage loan modification damaging a borrower’s credit score. Invariably, the reporter gets it half right. Unfortunately , the administrators at the big three credit bureaus are recalcitrant and unavailable for comment. The credit score biz is not much more than a computer. If you want real credit score answers, you have to deal with Hal. Everyone should know how that turned out.

The REST Report calculates an unbiased Net Present Value, or NPV that your mortgage investor (as distinguished from your mortgage servicer) uses to see if mortgage modification or short sale is the best solution to your distressed mortgage. Your mortgage servicer has assuredly already calculated that a foreclosure is most beneficial to them. That’s why they drag their feet and lose your file so as to get your house for free.

By getting and submitting the REST Report with your mortgage modification or short sale, you bypass the mortgage servicer and the discussion is just between you and your mortgage investor (as many as eight different investors may have their hand in your mortgage).

There are lenders out there that are advising borrowers to miss mortgage payments. The magic phrase here is “demonstrate imminent default” from published HAMP guidelines. Looking at the situation from the mortgage investor’s point of view, why grant a mortgage modification if all mortgage payments are current? Each lender interprets this phrase differently, and they may change their definition daily.

Here is the bottom line: If you miss payments or make partial payments on the terms of your current mortgage, as in the infamous three month HAMP trial period, your partial, or lack of payments, will be reported to the credit bureaus as just that. What this ultimately means is that the sooner the homeowner starts mortgage modification negotiations, the better for their credit score. It is not necessary to miss any payments to demonstrate imminent default. This is blatant treachery on the part of the mortgage servicer.

Once your modification is accepted, the new terms will be reported to the bureaus. There is no excuse for your lender not reporting new terms. A modification does not in and of itself reflect your payment history. Only your adherence to whatever current terms can be reported.

Pay your new mortgage terms on time and any damage to your credit history will recover. It certainly is better than losing your home, isn’t it? The credit bureaus have special entry notations for permanent mortgage modifications. I advise all my customers to call Transunion 45 days after their first permanent mortgage modification payment and dispute their mortgage entry. That will trigger a legal letter to your mortgage servicer demanding an update. Since November of 2010, the credit bureaus have a special, much less damaging credit entry for permanent mortgage modifications.

A year from now, as all those successful modifications start seasoning themselves in the computer-formerly-known-as-Hal, the nation’s scores will recover. There is a paragraph that more or less reflects this in the referenced article.

A foreclosure is absolutley the worst choice of action. Do a short sale instead. Short sale transaction reports can be ameliorated by a competent short sale investor. (I know several of them, too.) The referenced article correctly states that the secret is getting lenders to report a short sale to the credit bureaus as “paid as agreed.”

Bankruptcies have proven to almost never solve the problem. They just stall the wolf at the door, Granny got eaten anyway.

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tags: mortgage modification credit score, short sale credit score, 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 2009-10-21 23:55:33. Republished by Blog Post Promoter

Once again I wish to point out, your personal banker is not going to modify your loan. An underwriter with a dim light under the stairs is going to CONSIDER your modification. Who do they work for? They have the calculators and the rule book. Yours is one of a mountain of application files on their desk. These files are not time stamped. The lender gets to order their workload any way they want.

They do however get paid a bonus for every distressed mortgage they settle. The easier you make it for them, the faster you get attention.

I spent all of March hitting myself over my head about how unfair all this is. The currently distressed homeowner can do the same thing tonight after watching the NewsHour with Jim Lehrer. The country can fuss and fume all they want about how unfair all this is. Isn’t going to change any reality. If you count on the 50 states Attorneys General to sort out the Foreclosuregate scandal you can go to Helen Wait. You can count on the current U. S. Senate Banking Committee hearings to run around in circles interminably.

The Federal Trade Commission, in adopting their MARS Rule, has effectively eliminated any profit motivation for any third party mortgage modification negotiator. Mortgage modification is a do it yourself project.

No honest marketer of mortgage modifications will advise you to miss a monthly payment. But, a crucial qualification of any mortgage modification depends on proof of ‘imminent default.’ What better way to demonstrate imminent default than to miss a mortgage payment? If you’re current on your mortgage, what motivation does your mortgage investor have to negotiate with you? You might consider that any missed payments get put on the end of your loan anyway. Further, consider that many lenders insist that you be two months behind anyway!

It was reported that 235,000 modifications were “approved” since March (4 months@ 9%) and that the US Treasury goal was to put pressure on lenders to get 250,000 by November (4 months @ 13%) What part of “I can’t see the change” can’t anyone see? In fact, the nations lenders have shown that they are impervious to any federal pressure or responsibility in this mortgage mess.

I remember waiting my turn in the lunch line in school. We all do. But that was when we all trusted our elders to enforce civility. What about all those foreclosures that PBS referred to? Go get your calculator and do the math.

The REST Report calculates Net Present Value, or NPV, according to the bank’s own rules. That ensures that every foreclosure court will hold them to their own calculations. Every judge has backed up the REST Report calculations so far. The results have been spectacular, both in and out of court.

I am a proud vendor of the REST Report. 4000 successes out of 4000 submissions. I also have the best hardship letter template anywhere. It has proven results.

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tags: do it yourself loan modification, do-it-yourself short sale, loan modification, mortgage lender fraud, mass joinder lawsuit, loan modification colorado, loan modification nevada, loan modification arizona, loan modification new mexico, hamp, home affordable mortgage plan,

Originally posted 2009-08-07 02:16:36. Republished by Blog Post Promoter

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