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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Originally posted 2009-10-21 23:55:33. Republished by Blog Post Promoter

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.
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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

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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