| |
Trustlinkers are saying:
""
- ,
Become a Fan of our Facebook page to stay updated with the latest scams, reviews
and features of our website.
|
|
|
Loan Modification Tips, Links and Resources - April 2010
|
|
4/27/2010
|
Overview
Mortgage modifications are not possible for every homeowner and no one can guarantee that you'll get a modification. Not all lenders signed on to the government plan to encourage modifications, and even those that have give modifications selectively. Modifications
usually require documentation of permanently changed financial circumstances (hardship), and lenders have their own way of defining what constitutes a permanent financial hardship. As a consequence, most modifications or forbearances have been on a trial or
temporary basis, often with the savings tacked onto the end of the loan.
Be prepared to provide to your lender a letter explaining the reasons for your mortgage default or financial hardship, proof of current income, itemized monthly expenses, prior 2 years tax returns*, a copy of a recent utility bill as proof of residence and
proof of paid property taxes and homeowners insurance (if not escrowed with your monthly payment). After 3 months of steady payments and more verifications, the loan mod may become permanent.
State regulators, the FTC, and other federal regulators recommend that homeowners should never pay up-front fees for a loan modification. Effective October, 2009 it’s illegal in California to collect any money in any form for negotiating or attempting to negotiate
a modification of a residential mortgage. All modification services must be fully completed before any money can be collected. It is also illegal to divide fees or services into components for the purpose of avoiding this law. Also, no lawyer can force a lender
to modify a loan and no lawyer can assure anyone that they'll qualify for a modification.
The “forensic loan audit” is another marketing pitch for foreclosure-relief services that preys upon the desperation of homeowners facing foreclosure. Loan mod consultants offering forensic loan audits use inflated and misleading claims to convince homeowners
to pay large upfront fees for a review of their mortgage loan documents to determine if their lender complied with state and federal laws. This audit is pitched to homeowners as a tool they can use to gain leverage and speed up the loan-modification process.
The lending industry is in a state of flux because of all the applications for modifications. The policies at the different lenders vary, sometimes from representative to representative – outcomes have been very unpredictable. Be very skeptical of any claims
from anyone that tells you that they have an inside track into getting a modification.
Rampant loan modification and foreclosure rescue scams exist. We recommend that you first call a HUD approved non-profit housing counselor who will do all this for you at no charge. Call 888-995-4673 to speak with a HUD certified housing counseling agency.
They can evaluate your housing options, open lines of communication with mortgage lenders, negotiate a loan modification, and help you with household budgeting, all at no cost.
Take some time to review the information in the links listed below:
Consumer Resources - An Annotated List
TrustLink is a social networking website that provides: 1) consumer reviews on thousands of companies, 2) free online storefronts for businesses, 3) a quote request service, and 4) a popular “Ask
The Community” public Q & A forum.
The CA Department of Real Estate has excellent resources, support, and guidance for homeowners in financial distress, regardless of what state you live in. Topics cover types of loan modification/foreclosure
rescue scams, red flags to be aware of, current laws governing fees and practices for mortgage brokers, attorneys, and other foreclosure consultants, how to negotiate with your lender yourself, community resources, what to do if you are a victim of fraud,
and more. Go to the “Consumers” tab first.
Info about the requirements for mortgage brokers who want to charge fees in advance for loan modifications and lists of brokers who have been approved.
An additional website set up by the
State of California for homeowners.
Practical tips for working directly with your lender.
Various tips and warnings about loan modification fraud.
The Homeownership Preservation Foundation is the nonprofit arm of the HopeNow Alliance. The HPF is comprised of various HUD certified housing counseling agencies who are well experienced with mortgage delinquency.
The HPF owns and operates the 888-995-HOPE (888-995-4673). Also visit
www.995hope.org.
The HOPE NOW Alliance is a government endorsed group of mortgage industry players, including several nonprofit housing counseling agencies that can help you with a loan modification for free. Their national
toll free number is 888-995-HOPE where you can speak with one of their HUD certified housing counselors.
The official Making Home Affordable website that provides in-depth detail about the government’s loan modification programs.
Federal Trade Commission tips and alerts for homeowners.
NeighborWorks America, a national, nonprofit organization created by Congress to provide financial support, technical assistance and training for community-based revitalization efforts.
http://www.preventloanscams.org - This site was launched in March of 2010 and has a nifty map where you can check your state’s laws that pertain to loan modification.
Attorney General Jerry Brown’s Alert on Forensic Loan Audits (February, 2010)
The official website of the California Housing Finance Agency. The CalHFA will be administering the government’s “Hardest Hit” fund, announced in February 2010 allocating $1.5 billion in funds from the
Troubled Asset Relief Program (TARP) to five states where home prices have fallen more than 20% from their peak: California, Nevada, Arizona, Florida and Michigan. The funding will be used to provide lenders with incentives to write-off some principal of borrowers
who are in a severe negative equity position. Second mortgages or lines of credit may also be reduced or modified.
|
|
|
|
|
|
|
|
|
|
|