So we're going to use a simple example on the savings one can receive under the Making Homes Affordable plan.
For those unaware, it is a plan that President Obama put into action last February. It has allocated tens of billions of dollars to lenders willing to participate to help homeowners keep their homes during this challenging economy.
The basic three questions the Plan asks:
1. have you experienced a hardship in the past year? (loss of income, illness, etc)
2. do you currently have a job/income?
3. do you want to keep your home?
Here is an example of the savings:
Homeowner "Charlie" makes $4000 a month of gross income
His current mortgage payment is: $1850 a month
If you divide 1850/4000= 46%
46% DTI (D= debt T= to I= income)... meaning, he is paying almost HALF of his GROSS income in mortgage payment only. That does not take into account taxes, insurance, utilities.
Under the Obama Plan, the goal is to get the DTI to 31-38%
Meaning, "Charlie" if his mortgage payment was lowered to 31% DTI, his monthly payments would be reduced to: $1240/ month
That's a monthly savings of $610 a month. He will be saving $7320 a year!
While this is the most BASIC of break downs, and many other factors may need to be considered, this is a perfect example of how the average homeowner can save himself and his family those much needed dollars.
Friday, September 18, 2009
Wednesday, September 16, 2009
I've heard back from my lender..... Now what?
We have a client that has not yet started the modification process, but received a letter from her lender. Currently, she is over 6 months behind due to the loss of her spouse's job. Unfortunately, the payment offered to her was actually MORE than what she was to pay before..... so what now?
There are a couple of different options. She could do the obvious, sign the paperwork provided, and hope that she can pay the requested amount, stay in her house and put a stop on her foreclosure.
Rather than sign, and pray for the best, can she counter offer?
By all means, she can counter this offer and does not have to take it. I have seen some people get better offers by doing this. I have also witnessed homeowners who countered the offer on the table, as the current offer expired, only to never receive another loan modification. Sadly, they ended up losing their homes.
If you counter or deny this offer, you run the risk of losing it and maybe all offers in the future. But do not take an unaffordable loan modification because you feel pressured to accept it. If you can’t afford it, then fight for better! Loan modifications are what the industry calls a privilege and are not mandatory. You being an American, you have the right to choose what is best for you and your life.
You can also choose to have companies such as ours, that can assist you in every step of the counter process. We have countered several offers and have had success, please call us today for a free consultation!
There are a couple of different options. She could do the obvious, sign the paperwork provided, and hope that she can pay the requested amount, stay in her house and put a stop on her foreclosure.
Rather than sign, and pray for the best, can she counter offer?
By all means, she can counter this offer and does not have to take it. I have seen some people get better offers by doing this. I have also witnessed homeowners who countered the offer on the table, as the current offer expired, only to never receive another loan modification. Sadly, they ended up losing their homes.
If you counter or deny this offer, you run the risk of losing it and maybe all offers in the future. But do not take an unaffordable loan modification because you feel pressured to accept it. If you can’t afford it, then fight for better! Loan modifications are what the industry calls a privilege and are not mandatory. You being an American, you have the right to choose what is best for you and your life.
You can also choose to have companies such as ours, that can assist you in every step of the counter process. We have countered several offers and have had success, please call us today for a free consultation!
Thursday, September 3, 2009
Foreclosure looming on the horizon?
If you’re facing foreclosure or already in the pre foreclosure process, you need to save yourself and your family. The worst thing that you can do is nothing, and yet so many people still sit around waiting for the bank to come and take their home. That’s only because people are ill informed and don’t think that they have options. Once your home has gotten to the point of being considered for foreclosure, it can seem like nothing you will do will save it. However, if you take the time, you can find many solutions to avoid foreclosure, no matter how deep in the hole you are.
It doesn’t matter if you’re close to foreclosure, already in the process, or two days away from losing your home. You can stop the process and save your home, as long as you’re willing to invest the time and effort to search. If you tell your bank or lender that you’re trying to find a solution, they may give you an extension. They don’t really want your house, anyway. They have enough foreclosed properties on their hands that they can’t afford. Therefore, if they think that you can find a viable solution or a foreclosure loan, they’ll likely give you the time that you need to check out your options.
This is where we come in and can help...... Call us today, we have stopped the foreclosure process for many people, and have helped them save their homes!
It doesn’t matter if you’re close to foreclosure, already in the process, or two days away from losing your home. You can stop the process and save your home, as long as you’re willing to invest the time and effort to search. If you tell your bank or lender that you’re trying to find a solution, they may give you an extension. They don’t really want your house, anyway. They have enough foreclosed properties on their hands that they can’t afford. Therefore, if they think that you can find a viable solution or a foreclosure loan, they’ll likely give you the time that you need to check out your options.
This is where we come in and can help...... Call us today, we have stopped the foreclosure process for many people, and have helped them save their homes!
Tuesday, September 1, 2009
3 Questions you should be asking.....
There is a lot of disparaging information out there right now about loan modification companies. You should always ask these consultants three questions:
1. How many loans have they successfully modified?
2. What is their success rate/percent?
3. Will they provide the borrower with three references of local homeowners they have helped in the past three months?
At the Home Mediation Center, we can answer all three questions, and any others you might have. To meet with us is free, as we are committed to helping home owners keep their homes. Know your options....
1. How many loans have they successfully modified?
2. What is their success rate/percent?
3. Will they provide the borrower with three references of local homeowners they have helped in the past three months?
At the Home Mediation Center, we can answer all three questions, and any others you might have. To meet with us is free, as we are committed to helping home owners keep their homes. Know your options....
Loosing your HOME..feel like there is no HOPE..Please call me!
Here are some ideas of what you can do if you are in the situation of loosing your home to foreclosure 1. Refinance (not likely, but you still need to look at it) 2. Short Sale ( I have real estate agents that I trust and can help) 3. Bankruptcy (extreme, but may be the best option) 4. Restructure Loan (One of the best and first things to look at) 5. Do nothing (about 23% of foreclosures this last year were strategic moves away from bad loans) My office has the experience and integrity to point you in the right direction. No sales pitch, I promise, just honest advice from mortgage professionals Call my office today, don't wait for the bank to tell you to move out...there is hope and Yes I Can help you! The Home Mediation Center
503.616.3905 m-f 9am to 5pm
Thursday, August 27, 2009
Have you recieved a "Notice of Default?"
A notice of Default or a "NOD" is the beginning of your home being taken back by your lender.
If you have a valid source of income, and a good reason why you got behind...you have options.
I have been in the banking industry for about 10 years and specialize in assisting hard working people who are struggling to make ends meet. As a loan officer, I may not be able to get you a loan, but even if you don't qualify, wouldn't you like to know what legitimate options are out there! I promise to give you honest answers, and my expert opinion...Please call me 971.223.2953 or shoot me an e-mail modify.hmc@gmail.com
All the Best
The Home Mediation Center
503.616.3905
hmctoday.blogspot.com
Facebook
If you have a valid source of income, and a good reason why you got behind...you have options.
I have been in the banking industry for about 10 years and specialize in assisting hard working people who are struggling to make ends meet. As a loan officer, I may not be able to get you a loan, but even if you don't qualify, wouldn't you like to know what legitimate options are out there! I promise to give you honest answers, and my expert opinion...Please call me 971.223.2953 or shoot me an e-mail modify.hmc@gmail.com
All the Best
The Home Mediation Center
503.616.3905
hmctoday.blogspot.com
Do you know what your gross income is?
Do you know how to calculate what your gross income is? According to the making homes affordable government mortgage rescue plan, you could reduce your mortgage payment to 31% of your gross income...Give me a call and we will crunch the numbers to see if you qualify.
The Home Mediation Center
Office: 503.616.3905
Tuesday, August 25, 2009
True story about stopping foreclosure!
A person called our office, sobbing, barely able to speak. I asked what I could do to help…they, then described a horrific experience with Hope for Homes (Free HUD counseling) which led to them being 3 days from the auction date of their home. The reason the tears…they were packing all their worldly possessions up in boxes. I was able to get enough information to realize they qualified for the “Making Homes Affordable” government modification plan. I had them authorize me to speak with their lender (Wells Fargo), which doesn’t want another home. Our office called and stopped the foreclosure! The person is now on the road to modifying their Mortgage and looks like will end up cutting their mortgage payment by over 40%.
If we can, and if you qualify, we can do the same for you. We are committed to, first and foremost, helping people! We do charge a small fee for assisting people in packaging their Modification Packages; however, we don’t charge to see if we can stop your bank from taking your home.
Please call us and see if we can help.
The Home Mediation Center
Modify.hmc@gmail.com
O: 503.616.3905
Friday, August 21, 2009
The Home Mediation Center is here to help!
FREE HELP IS AVAILABLE, SAVE YOUR HOME!
We are a locally owned company, and we want to help.
If you answer yes to the below questions...CALL US!
1. Do you have source of income
2. Do you have reason you are struggling with your mortgage
3. Do you want to keep your home
Modifying your loan is easier than you may think.... Please call us today for a free consultation
Call the Home Mediation Center today at: 971-223-2953,
or email us at: modify.hmc@gmail.com
We are a locally owned company, and we want to help.
If you answer yes to the below questions...CALL US!
1. Do you have source of income
2. Do you have reason you are struggling with your mortgage
3. Do you want to keep your home
Modifying your loan is easier than you may think.... Please call us today for a free consultation
Call the Home Mediation Center today at: 971-223-2953,
or email us at: modify.hmc@gmail.com
Steps to Take After Being Denied a Mortgage Loan
It's never fun to be turned down for a loan, but before you think you won't be able to get credit anywhere, there are some steps you can take.
Lenders are required by a federal law, The Equal Credit Opportunity Act, to tell you in writing when you've been turned down for credit. Two important pieces of information must be included in the letter you receive when you are denied credit:
The specific reasons why you were denied credit (or information on how to obtain those reasons); and
If a credit report was used in making that decision, the name and address of the credit reporting agency that supplied it.
If you don't understand the reasons given for turning down your application, ask for more information. Sometimes it can be hard to determine exactly why your application was not approved, because these decisions involve a lot of different factors. Don't be shy about asking, though, since the information you receive may help you improve your credit so you can qualify in the future.
You may be denied credit for various reasons, including not meeting the creditor's minimum income requirement or not being at your address or job for the required amount of time.
If your loan application was rejected because of insufficient income to afford the house you want or you have insufficient funds for closing costs and a down payment, you could consider loan programs for low- to moderate-income borrowers with lower down payment requirements, such as an FHA loan or VA loan.
If you requested the loan amount which is larger than 95 percent of the appraised property value, the chances are that loan will be denied. In this situation:
You can try re-negotiate with the seller for the purchase price to lower the loan amount
Make an additional down payment to cover the difference between the appraised value and purchase price
If you think the appraiser undervalued the property suggest that the lender re-examine the appraisal
If your loan is turned down because of a poor credit report, you are entitled to a free copy of that report. You must request it within 60 days, so don't wait to order it. Read your report carefully to make sure it is accurate and complete.
Once you have a copy of your credit report, you should check for errors and fix any errors by disputing them with the credit report agency. If you believe that mistakes on your report led to the rejection of your application, you can ask the credit bureau to send a corrected copy to the lender. Follow up with the lender to find out if your application can be reevaluated.
Finally, you can try again. All lenders have different approval standards. Just because you didn?t get a loan from one financial institution doesn't mean you can't get one somewhere else. Try again with another company. Just don't apply for more than four or five loans in a six-month period.
Contact us today!
Direct: 503.616.3905
modify.hmc@gmail.com
Lenders are required by a federal law, The Equal Credit Opportunity Act, to tell you in writing when you've been turned down for credit. Two important pieces of information must be included in the letter you receive when you are denied credit:
The specific reasons why you were denied credit (or information on how to obtain those reasons); and
If a credit report was used in making that decision, the name and address of the credit reporting agency that supplied it.
If you don't understand the reasons given for turning down your application, ask for more information. Sometimes it can be hard to determine exactly why your application was not approved, because these decisions involve a lot of different factors. Don't be shy about asking, though, since the information you receive may help you improve your credit so you can qualify in the future.
You may be denied credit for various reasons, including not meeting the creditor's minimum income requirement or not being at your address or job for the required amount of time.
If your loan application was rejected because of insufficient income to afford the house you want or you have insufficient funds for closing costs and a down payment, you could consider loan programs for low- to moderate-income borrowers with lower down payment requirements, such as an FHA loan or VA loan.
If you requested the loan amount which is larger than 95 percent of the appraised property value, the chances are that loan will be denied. In this situation:
You can try re-negotiate with the seller for the purchase price to lower the loan amount
Make an additional down payment to cover the difference between the appraised value and purchase price
If you think the appraiser undervalued the property suggest that the lender re-examine the appraisal
If your loan is turned down because of a poor credit report, you are entitled to a free copy of that report. You must request it within 60 days, so don't wait to order it. Read your report carefully to make sure it is accurate and complete.
Once you have a copy of your credit report, you should check for errors and fix any errors by disputing them with the credit report agency. If you believe that mistakes on your report led to the rejection of your application, you can ask the credit bureau to send a corrected copy to the lender. Follow up with the lender to find out if your application can be reevaluated.
Finally, you can try again. All lenders have different approval standards. Just because you didn?t get a loan from one financial institution doesn't mean you can't get one somewhere else. Try again with another company. Just don't apply for more than four or five loans in a six-month period.
Contact us today!
Direct: 503.616.3905
modify.hmc@gmail.com
Loan Modification Vocabulary
Reinstatement Plan - Where your lender will reinstate the original terms of your loan once you are caught up on your back payments. This means you must pay all past due amounts in one lump sum. A forbearance agreement may accompany this.
Repayment Plan - Where your lender will tack on an extra amount onto each payment for a set period of time until you are completely caught up on your past due amount. This usually means an increased monthly payment.
Loan Modification - Where you negotiate a restructure of your current loan terms without refinancing. (Best Option)
Loan Refinance - Refinancing may be an option if you have the equity and credit required.
Forbearance Agreement - Where your lender negotiates a repayment plan and may force you to list your home for sale.
Short Sale - Where you sell your property for less than you owe but your lender accepts it as payment in full.
Pre-Foreclosure Sale - You agree to sell your property before foreclosure takes place. (requires equity)
Assumption - You agree to allow a qualified buyer to take over your mortgage.
Sale - A forbearance agreement may require that you list your house for sale if you cannot afford to get caught up on the past due amount.
Deed-in-Lieu of Foreclosure - You agree to sign your property back over to your bank and walk away.
Bankruptcy - You have to file bankruptcy to protect yourself, but if you miss one payment, the lender will put you right back into foreclosure
Contact us today!
Direct: 503.616.3905
modify.hmc@gmail.com
Reinstatement Plan - Where your lender will reinstate the original terms of your loan once you are caught up on your back payments. This means you must pay all past due amounts in one lump sum. A forbearance agreement may accompany this.
Repayment Plan - Where your lender will tack on an extra amount onto each payment for a set period of time until you are completely caught up on your past due amount. This usually means an increased monthly payment.
Loan Modification - Where you negotiate a restructure of your current loan terms without refinancing. (Best Option)
Loan Refinance - Refinancing may be an option if you have the equity and credit required.
Forbearance Agreement - Where your lender negotiates a repayment plan and may force you to list your home for sale.
Short Sale - Where you sell your property for less than you owe but your lender accepts it as payment in full.
Pre-Foreclosure Sale - You agree to sell your property before foreclosure takes place. (requires equity)
Assumption - You agree to allow a qualified buyer to take over your mortgage.
Sale - A forbearance agreement may require that you list your house for sale if you cannot afford to get caught up on the past due amount.
Deed-in-Lieu of Foreclosure - You agree to sign your property back over to your bank and walk away.
Bankruptcy - You have to file bankruptcy to protect yourself, but if you miss one payment, the lender will put you right back into foreclosure
Contact us today!
Direct: 503.616.3905
modify.hmc@gmail.com
the facts
Did you know that only 9% of homeowners are granted modification?
Did you know that average time on hold with your lender is over 30 minutes long?
Did you know that that all your financial information is sent in over 3 times before it is even reviewed?
Unfortunately, this is just the begining...... I figured out that I sit on hold an average of 5 hours per file, and that I send in over 50 pages via fax on each file. Not to mention, that it's not uncommon to get completely different answers from the lender. For example, I have been told that a file was in final review, only to call back the next day and be told it was cancelled a week ago. Frustrating is putting it mildly.
The facts are: modifying your loan takes perseverance above anything, time, intricate knowledge of your financial situation, and PATIENCE.
The Home Medation Center
tel: 503.616.3905
Did you know that average time on hold with your lender is over 30 minutes long?
Did you know that that all your financial information is sent in over 3 times before it is even reviewed?
Unfortunately, this is just the begining...... I figured out that I sit on hold an average of 5 hours per file, and that I send in over 50 pages via fax on each file. Not to mention, that it's not uncommon to get completely different answers from the lender. For example, I have been told that a file was in final review, only to call back the next day and be told it was cancelled a week ago. Frustrating is putting it mildly.
The facts are: modifying your loan takes perseverance above anything, time, intricate knowledge of your financial situation, and PATIENCE.
The Home Medation Center
tel: 503.616.3905
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