Considering a Loan Modification?

A loan modification may be right for you if you are experiencing a hardship or facing foreclosure. A foreclosure can be postponed while working with your lender to find a loan modification solution, once approved your loan is brought current and the foreclosure is halted.

Something you should know is there are 4 main types of loan modifications, when discussing a loan modification with the lender it is important you understand the differences and which modification can give you the greatest benefit and how it will affect you in the short and long run.

First you have what is called the Straight Capitalization Loan Modification; this modification is where delinquent interest is added to your principal balance and is amortized over the existing term and interest rate. This will cause an increase in the homeowner's monthly mortgage payments. The straight Capitalization Loan Modification is not a good option for the homeowner that is facing a long term hardship and is struggling to make their monthly payments. In my opinion this is the worst modification available. The homeowner would have to qualify for this modification proving they would be able to afford the increase in payments.

Second is the Loan Modification with Term Extension; this modification extends the loan terms (the length of the loan). In most cases the delinquent interest is added to your principal balance, the term of the loan is extended a certain amount of months or years thereby reducing your monthly payments and making them more affordable. For example, a homeowner that had a thirty year mortgage and 25 years remaining could extend the term to 40 or more years. There can be many benefits to this type of modification; it can help you achieve the lowest monthly payment, lower payments may protect you in the event of future financial crises. If you become stable and are in the position you can always pay extra towards the principle to lower the balance and providing there is no prepayment penalties shorten the term of the mortgage.

Third is Step Rate Modification; this could be a good fix for a short- term hardship or problem, this modification is where the interest rate on your mortgage is lowered a maximum of 3% temporarily. A typical step rate mortgage reduces the interest rate by one percent for every year of the step rate plan (for a maximum of 3 years and a total of a 3% reduction). After the first year with a 3% reduction the rate begins to rise until it reaches its original rate.

Fourth is a Reduced Rate Loan Modification; this is a permanent reduction in the interest rate of your mortgage to make payments more manageable for the remaining term of your mortgage. Keep in mind the rate reduction can only go so low or it won't make since to the lender.

Another option a lender may consider is a combination of the above modifications. For example extend the term and reduce the interest rate to accommodate an affordable mortgage payment for the homeowner.

There is a lot of controversy surrounding Principle Reduction Loan Modifications; this is where your principal balance of the mortgage is reduced thereby reducing what you owe and lowering your monthly payments. Although lenders are rarely considering this type of modification, depending on your circumstances it may be beneficial to see if you qualify for a Principle Reduction Loan Modifications.

A complete comprehensive loan modification package can make the difference of being approved or denied for a loan modification. Just as thousands of homeowners already have, you can easily and successfully apply for and receive a loan modification on your own. There are many benefits associated when applying for a loan modification on your own; you will save the fees associated of hiring someone to do a modification for you, there is no chance of getting scammed, you are in control, you will not get lost in the crowd of an overwhelmed negotiator, and you will always know where you are in the process at all times.

We estimate at least 90% of denials are due to an incomplete file, the budget was improperly presented, or there were no comparisons to aid the lender in evaluating what was in their best interest a loan modification or foreclosure. Remember you are not alone thousands of homeowners are in the same position as you are in, no matter what you decide to do always keep open communications with your lender.

For information on how you can develop a complete comprehensive bank ready loan modification package in minutes, visit our website http://www.diyforeclosurehelp.com for easy step by step tutorials to an affordable proven online software program that incorporates the same tools and forms as the loss mitigation firms and attorneys use to develop bank ready loan modification package.

I have over 22 years of experience of owning, managing, and operating my own businesses employing anywhere from 1 to 35 employees and subcontractors at one time. I have spent the past 5+ year in the note and mortgage industry specializing in the analysis, structuring, and restructuring, of residential and commercial mortgages and promissory notes nationwide, for the purpose of the procurement, selling or brokering of the note with banks, other institutions, and private investors.

I have strategically aligned myself with experts in the mortgage real estate and mortgage industries taken several courses related to loan modifications and short sales. Seeing the down turn in the economy over the last few years, failing banks, mortgage crisis, and increase in foreclosures I have elected to turn my primary focus using my network and experience bringing solutions to struggling home and business owners to provide valuable alternatives and information to people who are upside-down, struggling to make their payments, behind on payments, or facing foreclosure. Visit our website for more detailed information regarding foreclosure http://www.diyforeclosurehelp.com

What is Loan Modification?

There is a lot of confusion and misinformation out there regarding loan modification and loan modification companies. In February of 2009 President Obama signed into law the Troubled Asset Relief Program or TARP1 legislation. This legislation included 75 billion dollars allocated to loan modification and refinancing. A significant portion of President Obama's stimulus package is focused directly at helping American citizens facing foreclosure. If an American homeowner is facing foreclosure President Obama wants that person to examine loan modification.

The recent housing crisis which has effectively crippled the economy has conversely created a new and fast growing business niche. The business of loan modification, unheard of a scant 13 months ago, has quickly become one of the fastest growing businesses on the web.

Loan modification or mitigation companies by design are meant to help troubled homeowners. These homeowners, facing foreclosure or the financial hardship presented by depreciating asset values and increased monthly obligations are looking for relief. One possible avenue is home loan modification. Loan "modification" is not loan "refinance," but a change to the parameters of the original loan. These changes include (but are not limited to) change of term, lowering interest rate, fixing adjustable interest rates and/or reducing principle amount.

Mitigation companies are intended to act as a "proxy" or "liaison" between the homeowner and the mortgage holder. The mitigation company works with the homeowner in compiling all the pertinent and required paperwork, submitting it to the mortgage holder and negotiating a modification to the loan. This modification, in principal, allows the homeowner to avoid foreclosure and helps to alleviate financial hardship associated with high monthly home payments.

With rapid growth in a new industry, however, comes open opportunity for con artists, scammers or simply disreputable business people. There is a growing cadre of mitigation "companies" that are nothing more then predators. These companies prey upon those facing foreclosure. They exploit those that find themselves in unfortunate circumstances. They take a lot and deliver little in return.

The largest number of complaints to the Better Business Bureau and the state's Attorney Generals offices concern lack of consideration. These complaints have two things in common: large upfront fees and non performance. Examination of complaints against mitigation companies finds that most of these companies simply took the money and ran.

The internet is a perfect haven for these type of predatory modification "companies." The internet allows virtually anyone with a laptop and internet connection to create a loss mitigation "company." A slick website can easily and effectively disguise a high school dropout "working" out of someone's basement into what appears to be a professionally run modification company with office space, multi-racial workforce and government approval.

The government has taken a proactive stance against this type of predatory company and has put out advertisements warning homeowners against using "for profit" mitigation companies. The government has taken the position that homeowners can do mitigation for themselves.

Unfortunately, this is basically an uniformed or "knee jerk" response to reports of disreputable people taking advantage of distressed homeowners. The simple fact is that loan modification is not easy. It is a very time consuming process often taking 60-90 days or more. Home loan institutions are overwhelmed and sometimes simply not able to walk thousands of novices through the steps of the process. Files without the right information or containing incorrectly filled out paperwork go to the bottom of the stack to start over again. A form of triage occurs where correctly compiled packages are given preference and addressed while incorrectly compiled packages are set aside.

Many bank negotiators are hundreds if not thousands of files behind and falling further behind every day. Homeowners are losing sleep worrying about losing their homes. Facing foreclosure is a very emotional time for homeowners. Mitigation companies can act as an emotional buffer between the homeowner and the mortgage holder.

So how does one secure real help? The most prudent first step is to do your own due diligence. If homeowners are considering modification but lack the expertise, confidence, negotiating skills, patience or time to jump in and attempt it themselves then they must consider seeking assistance from a qualified service company.

Posted By: Tyler J Stanford

Sponsored BY: Principal Mitigation Corp

[http://www.pmcloanmodification.com]

Loan Modification Failure - What Your Lender Isn't Telling You About "NPV" And Principal Reductions

Loan modifications have been big news (not all good) over the past few years as the government has fully instituted the Home Affordable Modification Program (HAMP). Although HAMP has thus far been an unmitigated failure, it was originally intended to provide financial incentives for lenders to lower interest rates, extend maturity dates and reduce principal so that financially troubled borrowers could afford their mortgage payments and stay in their homes. What we have seen, however, is that of the very small number of borrowers who actually receive a loan modification, more than 60% re-default within 1 year.

What's the problem?

Traditional modification methods only focus on interest rate reductions and term extensions while almost completely ignoring principal balance reductions (i.e. lowering the amount owed on the loan). This approach simply fails to address the borrower's lack of equity or the long term sustainability of the loan modification. Principal reductions are the key to a successful loan modification, but we know that they are going to be the rare exception to the rule.

Why? Three words: Net Present Value.

A common refrain among borrowers facing default and seeking a loan modification is the following: "Why doesn't my lender just reduce my loan balance to the current market value? They aren't going to get any more than that at a foreclosure sale." While it is absolutely true that a lender can only obtain current market value if it forecloses and sells the property (in fact they will probably get LESS), this argument ignores the complex financial analysis that the servicer (that's the company responsible for collecting payments and reporting to the lender) must complete to make sure they are limiting the loss to the lender. The servicer MUST select the option which provides the highest recovery to the lender by using the NET PRESENT VALUE TEST.

In simple terms, if the lender reduces the loan balance to the current market value, they are stuck with 30 or 40 years of payments based upon that lowered loan balance (and possibly at a much reduced interest rate). However, if they foreclose and sell the home, they get that money (less costs) RIGHT NOW. Lenders understand that receiving a lump sum of money today is far more valuable than receiving that same amount of money over the course of 30 years or more along with the added risk of re-default. In fact, it is possible that a lender could receive LESS THAN current market value through foreclosure but still realize a HIGHER NET PRESENT VALUE by getting that money immediately as compared to taking payments over the life of the mortgage. Therefore, a foreclosure almost always generates a higher NET PRESENT VALUE for the lender as compared to a loan modification with a significant principal reduction.

So, if a servicer is obligated to limit the loss to the lender, they are simply unable to offer a loan modification if a foreclosure would generate a higher Net Present Value for the lender. Therefore, the servicer CAN'T offer, and the lender WON'T accept, a loan modification. The home will be forced through foreclosure.

In Part 2 of this article, I will give a detailed explanation of the TWO PART loan modification test and how NET PRESENT VALUE affects whether your loan modification is approved or rejected.

Derik N. Lewis assists clients (both lenders and borrowers) in resolving troubled real estate loans. his company Lawyers Realty Group advises on real estate workouts involving complex loan restructuring, forbearance, foreclosure, short sale and other recovery and/or disposition options. Derik also has substantial experience representing real estate investors in the purchase and sale of distressed and non-performing loans along with the acquisition of troubled real estate assets.

Prior to becoming an attorney, Derik was a real estate consultant for regional and national real estate companies such as Trammel Crow, Related Companies, and Balcor/American Express. In that capacity, he provided short-term management services for large residential apartment properties that were experiencing management transitions during rehabilitation or renovation or while under contract for sale.

Derik graduated magna cum laude from Boston University School of Law and was named both G. Joseph Tauro Distinguished Scholar and Paul J. Liacos Distinguished Scholar for his academic accomplishments. He is licensed to practice law in the state of California and is also a licensed California real estate broker & Realtor�.

Understand the Process Before You Try to Stop Foreclosure With a Loan Modification

There are many things that need to be considered before you try to stop foreclosure with loan modification, and the quicker you learn about them, the better off you are. Do not forget that you are not the only one facing foreclosure problems. There are many more like all over America who too are facing it. The first and the most important thing that you should keep in mind is avoid approaching your lender. You can be rest assured that they will not help you out with anything more apart from accepting the required forms and submitting them to the government.

Try asking them about the details of any form and they will keep silent. Basically, they will try their level best to see that you are not able to stop foreclosure. The mathematics is simple to understand. These lenders stand to earn a good sum of money by possessing and then selling your home. The global financial crisis is slowly abating and the prices of properties are increasing and this is what the lenders are eying. There is no need for you to worry when you are faced with such a situation.

There are many online sites that are willing to help you out. They employ legal professionals, especially those who are well versed in foreclosure laws, and these professionals will help you to retain the home you have worked so hard to obtain. These professionals will guide you through each and every step required to stop foreclosure with loan modification. In case you are worried about the term 'loan modification', here is a simple explanation of the same. As its name suggests, the process of loan modification reduces the amount you have to pay to the lender to an amount that you can afford.

Once your application has been approved, you no longer need to worry about the lender. You can start paying them the lower amount as calculated by the government. There is one thing that you need to keep an eye out for. Not all online professionals are equally good. You should check up their credentials and if required, request them to provide you with genuine testimonials that you can check out. There is no time to waste, and you should act now to get an upper hand on your lender. Within a few months you can start working peacefully with the knowledge that you have been able to stop foreclosure with loan modification.

A hassle free way to stop foreclosure with loan modification

The Ultimate Loan Modification Guidebook

The Most Comprehensive Loan Mod/stop Foreclosure Guide Online. Complete With Detailed Examples, Forms And Worksheets, And Our Own Proven Expert Pre-qual Method. Now Featuring A Complete Analysis Of The New Obama Guides And A Free 70pg Credit Repair Ebook!

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Loan Modification Hardship Letter Guide - Stop Foreclosure

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Modification Toolkit DVD and Guide

Our 96 page guide and 45 minute DVD will clearly explain our simple 12 Step Plan to help you modify your mortgage. This informative DVD and easy to read guide comes complete with samples of letters, a complete checklist and detailed instructions that tell you exactly what most banks are looking for to help you get a modified mortgage.

SECRETS TO A LOAN MODIFICATION MADE EASY!

Learn the 12 steps to a successful mortgage modification with our Easy-to-use templates. This toolkit includes all you need to become a professional loan negotiator. Together with our informative guide and workbook, we offer easy to use templates to help you negotiate with your lender. From writing the Hardship Letter, creating a Financial Statement and finding the right people to talk with and negotiating the new rate and terms with your lender. You'll see actual examples of loan modifications and learn their stories of success. You can do it!

Get the Facts and Do It Yourself - You don't have to be a law school grad to negotiate new terms for your mortgage. With the Mortgage Toolkit, determination and commitment are all that's required. The plan of action is exactly what this book provides. It's 12-step system that helps you get it all together, complete with models, worksheets, and more.

What you get in the kit.....

1) Step by Step DVD- This informative DVD allows you to sit at home, in the comfort of your living room and learn from the professionals. Designed with the consumer in mind, this DVD is almost 1 hour long and contains all the details that you need to understand, negotiate, prepare and submit a proposal to your lender

2) Guide & Workbook - Pack filled with the specific details, forms, and a workbook to help you be confident that you have all the details to make this effort a true success.. It's the industry's best kept secret.

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Mortgage Loan Modification: A Complete Guide to the Obama Administration's Home Affordable Modification Program

The "credit crunch" and worldwide economic recession has lead to severe financial repercussions for many people and a major concern is likely to be your biggest debt - your mortgage. Unfortunately, ever since the financial crisis started in the mid-2000s, millions of people have been struggling to keep up with their mortgage payments...and this has even led to people losing their homes.

Mortgage Loan Modification is likely to be the perfect solution for many homeowners who are struggling to meet their financial commitments, but we would hazard a guess that the process is extremely confusing to many. Add to this that the vast majority of loan modification attorneys and companies charge anywhere from $2000-$5000 for their services, and we can understand why many of you have no idea where to turn.

This is exact reason why we have produced our Complete Guide to the Obama Administration's Home Affordable Modification Program. This easy to read guide will reveal every single tip, trick and technique you will need to know in order to modify your mortgage...and we will not charge you $2000-$5000 for the pleasure.

Our Complete Guide to the Obama Administration's Home Affordable Modification Program will reveal in detail the Government's mortgage loan modification guidelines, how to write your financial hardship letter, how to communicate with your mortgage lender and an explanation of the initial package and trial period. For anyone who is currently struggling to make their monthly mortgage payments this is a guide that you simply cannot afford to ignore.

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Underwater Home: What Should You Do if You Owe More on Your Home than It's Worth?

Underwater on your home? Don't know what to do? Let one of the the nation's leading experts guide you to the right decision. In Underwater Home, Professor White addresses all your concerns and helps you work through the emotions and practical realities of being underwater on your home. He explains your options and gives you the facts that will empower you to make the best decision for your family, free from guilt or fear, and with clarity, confidence, and peace of mind. Underwater Home is both an emotional and practical guide for the underwater homeowner. Professor White explains when it makes financial sense to stay in your underwater home and when it makes sense to get out. And he offers no-nonsense insight into how to negotiate with your lender. If you're underwater on your home, you can't afford not to read this book. "In a tone that is both conversational and precise... lays out the case for and against walking away from an upside-down mortgage where the home is worth less than the mortgage balance. As is his habit, Mr. White strips away many of the emotional reasons that are often touted to deter walkaways. - Wall Street Journal, Decemeber 7, 2010. "Underwater mortgage? The book banks and Fannie hope you won’t read." Reuters, December 15, 2010 "Law Prof’s Book Helps Underwater Homeowners Decide When to Walk Away" - ABA Journal, December 8, 2010. "A how-to book on strategic mortgage default." - Orlando Sentinel, December 15, 2010 "Brent White, a University of Arizona law professor who has preached the morality double standard that homeowners face while companies default on loans without so much as a second thought, now makes his case in a book that virtually holds homeowners’ hand through the process. He tells them what to consider when deciding whether they should stop paying the mortgage... White even walks homeowners through the math to figure out whether they’re better off staying put and or walking away. - Orlando Sentinel, December 15, 2010

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How to Modify Your Home Loan Yourself

John Ulzheimer's, a Credit Expert formerly with Equifax and FICO, Do-it-yourself Loan Modification Kit. The kit includes a Step By Step instructional DVD, easy to use LoanMODulator Software, Loan Modification Forms and 24/7 Customer Support. To view a trailor of the DVD and commenly asked questions log onto www.LoanModDVD.com.

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Stop Foreclosure - Get a Loan Modification

In today's struggling housing market there are hundreds of people falling behind on their monthly mortgage payment and now possibly facing foreclosure, are you one of them? If so there is a way out from the burden of possibly losing your home to foreclosure, loan modification. Below are some tips that will help stop foreclosure and bring some piece of mind. Knowing what to look for and what to expect is important to stopping the foreclosure of your home.

First of all in order to get approved and use a loan modification you must know what requirements must be met. The requirements that are needed are not difficult to meet and most struggling homeowners meet them. In order to qualify for a home mortgage loan modification you must be using 31% or more of your monthly income towards your mortgage. This 31% includes property taxes, homeowner dues and insurance. Along with using 31% of your monthly income for your mortgage, you must also be suffering some financial hardships. A financial hardship can be anything from sudden loss or decrease of income to medical emergency in order to qualify for a loan modification.

What you must also understand is that a loan modification actually means that you are taking out an entirely new loan. This new loan will have lower interest rates which lead to lower monthly payments that are more manageable. When getting a loan modification lenders will use your monthly budget to insure you will not default and make your monthly payments with no problem. Lowering your payments, lowering your interest rate and possibly extending the length on your loan will help your get back on track and ensure you do not lose your home to foreclosure.

Last thing you should know when thinking about applying for mortgage modification is that you can receive advice from a professional for free. There are many companies out there that will try to change people thousands of dollars for a consultation but this can be done online for free. All you would need to do is complete a form with some basic information and you will get a phone call within a couple of days with helpful advice that will help you stay in your home and not fall a victim to foreclosure.

Facing foreclosure is a homeowner's worst nightmare and the reality of it is that there are hundreds of people in danger of it. It is not to late, look for a lender that will help you keep your home and get back on your feet.

At my site I will teach you how to properly refinance or modify a home mortgage saving you thousands of dollars, or even your home. A lot of Greedy Mortgage Lenders will try to suck you dry if you let them. Learn the right way to refinance or modify your home loan at my site: http://www.refinancingcondo.com

Loan Modification Vs Foreclosure - The Answer May Surprise You

A lot of people are having a great deal of difficulty paying their mortgages these days. If you are one of them, there are two things you can do to help yourself and you need to decide which is best for you: a loan modification or foreclosure. How do you decide what one to pick?

Fortunately you don't have to think about this too long because the answer becomes clear when you know the facts. Foreclosure has many disadvantages and just the mention of its name makes people cringe. No one wants to have their house foreclosed but some people are having a hard time avoiding it. A loan modification can help homeowners avoid this.

Foreclosure has a very negative effect on your credit rating. If you have not yet considered this, a foreclosure will virtually eliminate any possibility of getting another mortgage later. A foreclosure will be on your record forever and future lenders may be wary of dealing with you.

Foreclosure should be your last option and can be avoided with a loan modification, but there are many more reasons to consider a loan modification. A modification has many benefits and if you are able to secure one, you will be happy with this decision.

A foreclosure means you lose your home and there is no way you can get it back. A loan modification lowers the amount you pay each month so you can breath a littler easier. This is possible if you work with a loan specialist who can change the terms of your loan.

In the beginning you might have been able to cover your payments easily. Over time you began to face more difficulties and making your payments got more and more difficult. If this is what has happened to you, you need to get a loan modification. Don't even think about foreclosure if you can change the terms of your loan before things get out of control.

In short, you need to wait and let loan modification specialists deal with your loan. There is much to learn about modifications but in the end the final results are lower payments and less financial stress. You have the option of having your interest rate lowered or you loan extended, but there are some factors that will determine what actually happens.

For essential tips and facts about how to get approved for a Loan Modification, Visit our simple, no nonsense loan modification guide and resource: http://MortgageModificationLoan.net/

Forbearance and Loan Modification

One of the most common worries for the average American is their mortgage payment. It is no wonder that most families prioritize a budget for this money consuming machine. But life is all about surprises. One day, you may walk away from your house because of some unexpected event. A divorce, health problems within the family, loss of job, these could be some of the reasons that budgets are derailed. You wake up one day to a notice of foreclosure.

Fortunately for homeowners, there are options such as LIG Loan Modification Services that can help to stop this scenario from becoming a reality. There are alternatives to a foreclosure and they are within the reach of any homeowner.

One such option is a forbearance agreement. Forbearance is basically a request from the lender to suspend the payment of monthly amortization within a specific period. The borrower can choose, but is not obligated to pay, the interest only during the period of a loan suspension. If he cannot pay that interest, it may be added to the interest in the future payments after the termination of the forbearance. Or it can be added to the principal, thereby, extending the payment period.

Forbearance could be granted for a year. After it is served, the borrower continues with the usual payment. Hopefully, he has recovered from his previous financial constraints. This is a good form of temporary relief of such a heavy financial burden. This is good for those who are in temporary crisis such as temporary loss of job.

But for those who are looking for a long-term solution with their monthly mortgage bills, loan modification proves to be a life saver. Loan modification takes forbearance much further. With loan modification, it is possible not only to suspend your monthly payment, but to also reduce it to a lower one.

This is now the most preferred call to action for most homeowners facing possible foreclosure. Like any other method of anti-foreclosure measures, loan modification seeks approval from the lender. But unlike other measures, in loan modification, homeowners can assert rules in prevailing real estate conditions. If a homeowner found out that the property that they are making mortgage payments on is not worth the amount they are shelling out then loan modification is a way to adjust future payments. If the homeowner finds that their homes are worth every penny that they are actually paying for it, but still don't want to lose it in a foreclosure or short sale, then loan modification gives them a sense of control to their situation.

Also, unlike a short sale, where you need a real estate lawyer, a real estate broker, a real estate agent, and an accountant, in loan modification you only need an expert to accomplish the job for you. A loan modification expert negotiates directly with your lender. He knows what it takes and how to communicate with the decision makers to make necessary adjustments to your mortgage.

© 2008 Tom Brady

Reprint rights available for free.

Tom Brady is a Loss Mitigation Specialist for LIG Loan Modification Services. LIG Loan Modification Services is a loss mitigation company that offers loss mitigation services such as loan modification, short refinance, forbearance, short sale, and deed in lieu of foreclosure. To see how your loan can be modified, visit http://www.LIGloanmods.com or call 1(888)220-9787.

How to Stop Foreclosure - Loan Modification May Be the Answer

In United States, the mortgage foreclosure filings have increased 93% in the last year whereas another 2 million more are in line. These statistics show that you might not be the only one in crisis. The good news is that banks and financial institutions have a heavy load of foreclosures to deal with and they are willing to negotiate a deal, more than ever before.

What to Do?

Don't give up hope just yet. Loan modification may be the answer to your problems. Loan modification is a truly one of the most effective and simple methods to stop foreclosures. In this scenario, the lender and home owner mitigate to work out a new loan payment term which may include modifications in interest rates, length of time and the type of loan. In most cases, lenders make a deal to let off all the previous balances and the late fees. Usually a bank will increase the amortization rate by extending the overall duration to 30 or 40 years. Such an action will certainly cut down on the monthly payments. In face of emerging financial insecurity, some banks are even willing to cut down the principal amount.

Don't be Tamed

While loan modification may just be the answer you seek, remember that it is far better to hire an attorney or a mortgage expert. These professionals will serve double purpose. First, they have the approach to loss mitigation department as well as the decision makers and secondly, they know how to tackle bill collectors while safeguarding your rights. Just talk to an expert and you will certainly have more ideas to stop the impending foreclosure.

Final Tip: By researching and comparing the best loan modification companies in the market, you will be able to determine the one that meets your specific financial situation, plus the cheaper and quicker options available. However, it is advisable going with a trusted and reputable stop foreclosure specialist before making any decision, this way you will save time through specialized advise coming from a seasoned loan mods advisor and money by getting better results in a shorter span of time. Meaning getting your house out of risk as soon as possible.

Hector Milla runs the Best Loan Modification Company website, where you can get immediate assistance from professionals serving your state. We have done all the hard work for you and selected the best 3 rated loan modification services.

Read our full reviews of those companies, plus hundreds of articles and video training about how to stop foreclose and the best way to do a loan modification in order to stop a foreclosing proceeding.

Contemplating Loan Modification? Some Simple Truths

In a June release, Biz Journals reported, "Nationwide, 321,480 foreclosure filings were reported in May, which is six percent lower than April 2009, but about 18 percent higher than May 2008. One in every 398 U.S. homes received a foreclosure notice last month."According to a CNN article published on June 9, 2009, ..."approximately $75 billion of the total $700 billion bailout fund (known as the Troubled Asset Relief Program or TARP1) was allocated to banks specifically to modify loans and help taxpaying homeowners." Interpretation; U.S. Mortgage holders are in trouble and the government wants homeowners to modify their loan instead of falling into foreclosure.

So what is a home loan modification? Home loan modification is the process by which a lender makes a change to an existing home loan. This modification is usually comprised of a reduction in the interest rate, a change in the length of the term, and deferral or forgiveness of past due amounts. Specifically, a loan modification is not a re-finance, but a change to the existing home loan.

Why do lenders modify loans? The answer is simple-Loss prevention. From a monetary standpoint, it is significantly less painful for the bank or lender to modify a loan than have that loan go into foreclosure. The foreclosure process is very tedious and extremely costly for both the lender and the homeowner. A successful modification of a home loan means the lender also stands to receive a portion of TARP's 75 billion dollar bailout.

Main stream media writers have jumped on the loan modification gravy train. These "loan mod" articles are easy to write and sell. Simply repeat and rewrite what someone else previously wrote or said and paste your byline on it. The same mantra is endlessly repeated in differently constructed articles. "It is a time consuming process, and can be costly....hire a lawyer. If you can't afford a lawyer...do it yourself!" The press allocates many column inches toward advocating lawyers or the "do-it-yourself" approach, but the press doesn't do loan modifications. So what, if anything, do they know?

Who does loan modifications? There are many answers to this question and many avenues the homeowner can take. One of the more time consuming and costly ways to modify a home loan is to retain the services of a lawyer. The words Lawyer, inexpensive and expeditious can all be considered mutually exclusive. There are also call centers, companies that hire dozens if not hundreds of "salesman" to acquire your information and then sell it to other entities. Similarly, there are information brokers. These organizations represent themselves as loan modification specialists, but also do nothing more than gather and sell your information to as many companies as they can. The end result of this will be numerous unwanted phone calls and email spam campaigns. On the same note, there are individuals who represent themselves as a legitimate enterprise but are generally no more equipped to handle the modification process then is the kid down the street. These individuals accomplish little in the way of loan modification and jeopardize the security of your information. The "do-it-yourselfer." is, by definition, the homeowner seeking modification on his own. Generally speaking, the simple lack of experience, inability to follow through, and gross time commitment required, coupled with the need for extraordinary patience, and calm collectivity tends to leave the borrower frustrated and dissatisfied. Lastly, there are the non-profit organizations mandated to assist homeowners in foreclosure. Hope Now, a plan Congress endorses, is a government subsidized coalition of regulators, service providers, lenders, and community advocates attempting loan modifications for troubled homeowners. The success ratio of these "not for profit" organizations has been less then exemplary.

There is ample proof as to how complicated and time consuming the whole process of loan modification can be. According to a CNN article released on June 16, 2009, an individual named Kevin Richmond decided to tackle loan modification on his own after being laid off at the beginning of January. Mr Richmond lost $63,000 of annual income. Shortly after acquiring this hardship, Mr. Richmond took it upon himself and called his lender seeking a loan modification. He was denied the application for the modification because, the lender said, he had not yet missed a payment. A back and forth struggle with his lender has dragged on for six months. Mr. Richmond is still, today, in early June, seeking a way to successfully modify his loan to a more affordable monthly payment. What went wrong? Was this individual not prepared for this type of negotiation? Did he not have the time needed to complete the negotiation? Was he not versed enough to know what the lender wanted to see in return for the modification? Where did he go wrong? In reality, there are an infinite number of ways he could have gone wrong, but it can likely be attributed to being "ill-equipped" and "ill-advised" about the loan modification process.

We all choose to hire people based on their expertise; to take care of things in our life which we're unable or unwilling to do for ourselves. This may be due to lack of knowledge, time or patience on our part. Whatever the reason, we trust these service providers will - in a professional manner - give us the service for which we pay. That is WHY we pay for them. Should an individual opt for free child care or pay for the services of a licensed, bonded and insured facility to watch the children. Do we choose the free medical clinic if we are able to go to a trusted family doctor instead? With any item or service we need in our lives, we must decide if it is within our realm of knowledge and ability to acquire or achieve it on our own, or if it behooves us to seek professional assistance. Loan Modification is a very important step toward getting back on financial track. Think carefully about who is going to take care of this process. Should you pay the hefty fees often associated with hiring a lawyer? Should you phone in to a call center or, perhaps, engage the services of an individual running a "business" out of his home. Should you contact a Non-Profit and speak with a volunteer who is ill-trained to take care of your single largest asset? Do you honestly feel you are best equipped to take care of the situation yourself (remember you are the person who signed off on the loan and got yourself into this situation in the first place)? Sometimes people hire a professional because that is exactly what they need. Is a professional needed when trying to save your home from possible foreclosure? That's the easiest question of all.

Written and posted by: Tyler J. Stanford

Proudly Sponsored by: Principal Mitigation Corporation

[http://www.pmcloanmodification.com]

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My Chase Loan Modification Took 18 Months

(USA)

Our Chase loan modification process was literally hell for us. After being told it would take up to 3 months, Chase kept prolonging it due to the fact that they were busy and kept restructuring.

Chase refused our payments yet every month added late fees and additional interest.

I was on the phone to Chase Bank at least every week. We were told at one point that we were near completion, it went to the adjuster and through that process. We did more paperwork and waited for the final response. We were told that we were going into a trial modification and the paperwork would be sent. After a couple of weeks of not receiving anything, I called Chase only to find out that the adjuster had not completed the file and had to restart the process from the beginning as the file was too old.

At this point I got an address to start sending payments, only to find out after three months that Chase isn't even using this address anymore and it took over a month for the payments to be received by them.

Finally after 18 months our loan modification was done. We were told that they would not extend the time period of our loan, instead they slightly decreased our interest rate. No additional fees were to be charged, but by this time, our balance that we were behind had grown to a little over $13,000 and this amount was added to the principle balance increasing our loan to much more than what we paid for the house.

I am not sure if this is correct or legal but to me seems wrong as the outstanding $13,000 is already part of the principle balance so why would it be added to it again? Meanwhile, our credit is screwed, our mortgage payments are only a few dollars cheaper than they were originally and I have no idea if what they did is correct or not...

You still have some options left that may help you fix the modification that you now have. If you have not yet signed a loan modification agreement then make a counter offer with reduced interest (2%) extended mortgage term (up to 40 yrs) and principle forbearance. Run an NPV Test (Net Present Value Test) spreadsheet and play with the variables to see your options on lowering payments that will pass the NPV Test. Make a counter-offer that passes the test. It is easier to fix a bad offer by Chase than getting them to change a modification that has been approved and signed into a new contract. The handlings are basically the same but you may have to wait one year before re-applying for a new loan modification with Chase. But give it a try, you may get Chase to re-consider.

Use the above NPV Test to work out an offer that passes the test that you can afford. This will be your new offer. Now send a Qualified Written Request that your current modification be reviewed and that critical flaws be corrected. Your new offer is the proposed correction to the critical flaws such as the double billing of unpaid principal balance, explain what you want changed.

Follow directions for sending a Qualified Written Request covered here - How To Save My House From Foreclosure - 3 Ways To Stop A Foreclosure Sale. Do send all three written requests.

Contact the HAMP Escalation Team and report the overcharging and failure to cooperate as well as the added time to the process. Ask for help to correct Chase on your loan modification. Follow the directions at Loan Modification Process With Chase Is Taking Too Long.... You can also file complaints at Comptroller of the Currency Administrator of National Banks on-line Complaint Form the FTC on-line complaint form and with your State Attorney General. You should send copies of all complaints to Chase CEO, Legal Dept, Director of HAMP Modification Dept and Public Relations Director.

There are several programs that provide federal funds to re-instate mortgages that in some cases you do not have to pay back. Here are several programs that are currently available to public (funds are available for all states even if a program is not set up), California, Connecticut, Delaware, Idaho, Maryland and Pennsylvania.

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Apply for No-Upfront Fee Hardship Loan Modification
Find out for yourself. Apply for no-upfront fee hardship loan modification even if you do not qualify for the Government Making Home Affordable Modification Program. You may qualify for a No-Upfront Fee Hardship Loan Modification. (Currently available in California, Oregon and Washington)

DIY Loan Modification Kit
Are you looking for a DIY Loan Modification Kit that will walk you through the entire process of modifying you loan? Then read on. Gain the competence you need to submit and negotiate like a PRO - with real insider advice on how to negotiate a modification.

Submit your own Chase Loan Modification Problems and Questions

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What Is Loss Mitigation - Home Loss Mitigation Process-Mortgage Mitigation Help

Before we answer the question What Is Home Loss Mitigation and The Mortgage Mitigation Process? lets clear up what Home Loss Mitigation means. Mitigation comes from Latin meaning to do soft. The modern meaning is to make softer, make less strong or less damaging. So mitigation of loss then means making loss less severe or damaging. When we are talking about home loss mitigation or mortgage mitigation this usually refers to the mortgage loss mitigation process that protects a lender's or mortgage owner's investment.

For the lender this is the action of making the loss on a mortgage less costly or less financially damaging.

For the homeowner this usually involves either hiring a loss mitigation specialist to renegotiate their mortgage or dealing directly with lender to avoid the mortgage foreclosure process.

While dealing with the lender's mortgage loss mitigation department may be free, as the name implies, you are dealing with the lender's employees and they have the lender's best interest at heart.

While your intentions are in your own best interest when dealing with your lender's loan resolution department, you may mistakenly think your best interests are being served best by dealing directly with the lender as it is "free".

Unless your lender is very helpful, you may be taken advantage of if you think this. For this reason here is where you should consider hiring a mortgage loss mitigation specialist who will represent you and your best interests.

Now for the meat and bones of What Is Home Loss Mitigation and The Mortgage Mitigation Process? Mortgage loss mitigation works to renegotiate loan terms between the lender and homeowner to avoid the mortgage foreclosure process.

There are six main methods used in the home loss mitigation process with possible variations and combination.

Your lenders loan workout can benefit you, but you must remember it is not a guarantee you will keep your home.

The intention of Home Loss Mitigation/Mortgage Mitigation Dept is to negotiate a solution for the lender, that owns an at risk loan, to make the mortgage current and avoid the costly mortgage foreclosure process thereby losing the least amount of income on his investment.

If you keep in mind you are presenting a solution that will help the lender financially, you can work out a solution that will also benefit you. If you cannot afford the loan even after a mortgage loan modification, forbearance or short refinance these are not options available to you and you have to use an option that includes giving up your home.

There is a Loan Modification Test Service that will run your mortgage through the same tests using the same databases your lender uses. You can see exactly what mortgage mitigation options make the most financial sense to your investor. You will receive a 12 page report that explains in simple terms exactly what loan modification or forbearance programs you qualify for right now. You will know within two days what home loss mitigation plans you should be submitting for. No mystery of what you qualify, no worrying for months wondering if you will be approved.

Run Your Own Loan Modification Test Here

Yes do try to work out a home loss mitigation option that allows you to stay in your home but recognize when you need to let the house go.

There are times when foreclosure is the best financial solution for the lender. If foreclosure is the best way for a lender to cut his losses then you need to realize you can not keep your home.

So this is the time to negotiate a short sale with your lender, then if you can not sell, negotiate cash for keys with Deed in Lieu of Foreclosure as you last resort. Any of which are better than a foreclosure for both you and your lender.

If you wait to long to negotiate your options the only option left will be a foreclosure sale. You can just do nothing and be evicted from you home even when earlier it was possible to negotiate and keep your home.

There is HOPE For Homeowners

Something Can Be Done About It

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Run A Loan Modification Test To See All Your Mortgage Mitigation Options No mystery, no worrying for months wondering if you will be turned down for a loan modification. Find out now exactly what you qualify for and see a 12 page analysis of each mortgage mitigation option available to you.

Apply for No-Upfront Fee Hardship Loan Modification
Find out for yourself. Apply for no-upfront fee hardship loan modification even if you do not qualify for the Government Making Home Affordable Modification Program. You may qualify for a No-Upfront Fee Hardship Loan Modification. (Currently available in California, Oregon and Washington)

DIY Modification Kit
Are you looking for a DIY Modification Kit that will walk you through the entire process of modifying you loan? Then read on.

The Home Mortgage Loan Modification Blog
The Mortgage Loan Modification Blog - Find out what's new on the site, stay up to date with the latest developments in Residential and Commercial Modifications as well as Government Mortgage Assistance.

How To Save My House From Foreclosure - 3 Ways To Stop A Foreclosure Sale You can save the house from foreclosure. Here are 3 ways to stop a foreclosure sale that provide leverage to force lender to modify your mortgage. Learn how to use a Qualified Written Request to get what you want.

Get Pre-Qualified For A FasTrac Hardship Loan Modification
Pre-qualify for hardship loan modification even if you do not qualify for the Government Making Home Affordable Modification Program. You may qualify for FasTrac Hardship Loan Modification.

Mortgage Loan Modification Myths Exposed
There are many Mortgage Loan Modification myths floating around. Get the facts. More homeowners qualify for a loan modification than lenders are letting on. Are you one of them?

Ask General Loan Modification Questions - Get Answers
Get answers to your own Mortgage Loan Modification questions. See what other visitors have asked and their answers. What do you want to know or need help with? Got a situation you need help with? Just Ask.

Bank of America Loan Modification Problems, Questions And Answers - Get Answers Get answers to your own Bank of America Mortgage Loan Modification problems and questions or just see what other visitors have asked and their answers.

Ask Wells Fargo Mortgage Loan Modification Questions - Get Answers Get answers to your own Wells Fargo Mortgage Loan Modification problems and questions, tell us your Wells Fargo horror story or just see what other visitors have asked and their answers. What do you want to know or need help with? Got a situation you need help with? Just Ask.

Ask Your Chase Loan Modification Questions Or Tell Us About Your Chase Mortgage Modification Experience Go ahead tell us your story about Chase Loan Modification experiences or ask your own questions. Feel free to read others Chase stories, questions and the answers

Find out if you qualify for HOPE For Homeowners, Government Mortgage Assistance or a loan modification from your lender Find out if you qualify for the Making Home Affordable Programs. Whether just curious if you are eligible for Government Mortgage Assistance or you need government help to stop foreclosure right now, complete the form to see what mortgage loan modification you qualify for.

HOPE For Homeowners H4H Government Help To Stop Foreclosure
This Government help to stop foreclosure is a short refinance that includes principal reduction and a new option that makes a short refinance more attractive to lenders/investors

HOPE For Homeowners H4H - Short Refinance
Was The Short Refinance With The Old HOPE For Homeowners - H4H Program A False HOPE?

Mortgage Foreclosure Questions and Fighting Back Effectively
Help for the homeowner who is fighting to save their home from the mortgage foreclosure process. There is HOPE for homeowners. Something can be done about it!

Contact the Loan Modification Expert, Consultant and Author Dan North I always enjoy helping people. You are welcome to send me any questions, concerns or comments about your own Mortgage Loan Modification. You can even contact me if you just want some help.

Loan Modification Home
Get real answers to the real questions on mortgage loan modification, government mortgage assistance, government help to stop foreclosure and other loan modification and foreclosure questions. Do I qualify for a loan modification? Can I save my home?

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Totally Disabled, Partially Paralyzed, Horribly Attacked And CHASE Attackes Me Again!

by ME
(PA)

I worked for a very good company when I bought my condo. I received great salary, profit sharing, bonuses, and overtime. I had a terrible car accident, then a few years later I was severely attacked by a crazy drunk for 45 minutes. I already had a serious brain disorder before any of this, so this was a very difficult recovery. I of course went back to work and, though suffering from pain and depression, continued to try and excel at my job. I got a huge raise and was making up to $50K. When I finally put the criminal in jail, I decided to buy my condo in 2006, to start my life over. I didn't have much to put down on it, so my interest rate was pretty high and my payments for a 168K condo were $1248 plus condo fees making it $1500 a month, plus all else that goes with it. This was my very first home, I had 4 concussions at the time (which I kept telling my chase broker) so I didn't worry because I was making so much money, and I trusted him. I found out later that I was misdiagnosed with the horrible aftermath of the attack and slowly I became worse, and worse. brain damage (actual lesions on my brain), paralysis in my arm, sponylosis, nerve damage from head to toe (literally!) and of course the severe memory loss and PTSD. I worked until I could no more. Medical bills were compounding, market fell, I was immediately granted SSDI and I receive a disability check from my old job as well. I make now $2063 a month (actual $1968). A blessing and a curse. I asked for a modification from chase and went through everything. It was a very stressing time, having only one arm, not being able to bend over, kneel, sit down for more than 10 min, stand for 5 at the time, dizzy all the time. I was sick all the time from treatments I was receiving from my doctor to treat my diseases, as well as dealing with severe PTSD..but I did it. They told me several times it would be better if I missed payments, because I never missed one, "if I just missed a couple I'd have a Sure chance". My instincts told me not to, I was worried about my credit, and the charges on my credit cards for when I first bought my house furniture, and paying for medical bills etc. If I missed payments I would lose my only way to pay for my medication and co-pays and bills etc.

So i did the modification all the way to the home visit and the auditor kept saying it was looking great, I should be approved. He would always take my calls. Then I get a letter from chase stating I was denied for "no loss of income". I had asked if they pulled the other W-2 forms and the kid said it didn't look like it, they usually never do (even though I signed the 4506t form). So all they had was when I was making 30K on ST disab. Not much of a difference from 21K.....big diff from 49k-50k. They said they made a mistake and would look into it. The auditor wouldn't take my calls of course. I did get another denial letter. This time it said "cannot prove permanent hardship". So they say I am not totally disabled.....although with one arm and so depressed I am ready to throw in the towel... I sent them in every personal medical record, doctors report, even went so far as to send in court records and inquirer clippings of my attack and how the guy ran me off the road and tried to kill me on the way to court...and then he got out early and lived 5 miles away and how trapped I was to stay here for my safety because he's not allowed in my county. How degrading, and how personal.....and they decide my hardship.

So now they want me to do it all over again. I think Chase is manipulating, uncaring and just plain evil. I am not asking for anything free, just a lower payment so I don't lose my house. So I can eat, pay for repairs and not lose it. If it is because of my 401K, let me know because I have a lot of bills to pay. They ruined my credit by leaving on my report that I was in a modification agreement with Franny and Freddie for two yrs, when I wasn't....my rating went from 713 to 604. Of course I can't prove it, but it was fine until that was on there, I never missed a payment with anyone. What would you think if you are a cc co and you see your client is in an agreement to make lower payments for two years and they have been making the min payment in your card when she owes 10K? I'd lower her limit and report her...which is what happened to me. I finally got it taken off, but it makes no difference, because I can only make those min payment because of chase. So now I am ruined. They say if I have any money in my 401K, I can't get any help from them....I am only 42 and will need that money for my funeral.....what does that have to do with anything. It isn't a lot of money. I have been using to pay for my medications. I hit my gap in June 1. Please Help.

Wow there is a lot here. First off I will say do not spend your retirement funds on your mortgage and do not report to Chase how much you have in your 401k. Chase can not legally ask or make you spend that money. If Chase asks write down not applicable in the blank.

Do not let Chase start the process over again. In writing ask that the denial be reviewed at the executive level after the information is corrected to match the information submitted. Clearly state what amounts are incorrect and what the correct amounts are.

If you cannot afford the mortgage payment you are going to take a hit on your credit sooner or later. That is the least of your worries and a wrong priority.

You will take about 100 pts hit during the trial period and most of this will recover shortly after the permanent loan modification is in place if you make payments on time. Chase can remove the ding after the modification is in place if you ask for it as part of the negotiation. Just use some basic credit repair actions to bring your score back up.

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How To Save My House From Foreclosure - 3 Ways To Stop A Foreclosure Auction

If you need to know how can I save my house from a mortgagae foreclosure auction after the lender has begun the mortgage foreclosure process you need to act fast. The faster the better.

These three ways to stop a foreclosure sale can show you how to save your house from foreclosure auction even if the mortgage foreclosure process was started simultaneously with your lender's mortgage modification denial.

The lender sending your account to the attorney to begin the mortgage foreclosure process can give quite a scare, but nothing has happened yet that you can not fix.

The first obvious way to save a house from foreclosure auction is when you can afford to make full payment or if you can get the money together to pay off the missed payments.

Only do this if you can afford to continue to make the monthly mortgage payment.

If that is not an option, the next option your lender wants is a repayment plan. That would mean making larger than normal monthly payments until caught up. This is not usually an option or the loan would not have gone delinquent.

If you have not already applied for mortgage loan modification then do so now. This will halt the foreclosure process while being considered for the modification and buy you some time.

If you have already been denied for a modification then request that your denial be escalated to the executive level for review of denial.

Here is a good step by step loan modification guide I highly recommend.

ORDER NOW - Loan Modification Step By Step Guide

Here is the next of the ways to stop a foreclosure sale with Qualified Written Requests which will help force your lender to renegotiate your mortgage terms: Make a Qualified Written Request for a copy of the mortgage note with all endorsements and copies of all mortgage assignments (Simply write Qualified Written Request at the top of the page). It is not likely that they can produce the note and assignments or they will not have the required endorsements showing they own the mortgage and this will usually stop the foreclosure in its tracks. Banks have been hammered on this in the courts when they foreclose and can not produce the required documentation. They have to falsify documents to foreclose if they do not have the note in their possession. Often the lender can not produce the documentation unless it is a very old loan.Also make a Qualified Written Request for the name of the investor and contact data for that investor. (It is best to deal directly with the investor when the mortgage servicer is not cooperating, servicers will try to stone wall that one.) This is a valid request but you may have to go to a title company and pay them to do the search to get the information, if it was properly recorded.

Don't worry if the search does not produce results. This is still information you can use.

Send this letter to your mortgage servicer but modify it to be a Qualified Written Request. Change "Re: My request for a copy of the Promissory Note" to "Re: My Qualified Written Request for a copy of the Promissory Note". This may not seem like a big point but is a consumer protection point that has federal regulation that lenders are required to respond to on exact timelines. Add to the letter "with endorsements" and add "and copies of all mortgage assignments". The line should read "Please produce for my inspection within ten days the Promissory Note which I signed on [date note was signed] , and copies of all mortgage assignments."

If you are in a judicial foreclosure state foreclosure proceedings will be conducted in court and once you have been notified of this you need to file with the court a legal request for the note and mortgage assignments. You will need to modify this letter as well by adding "with endorsements" and "and all copies of mortgage assignments". The line should read "the original Promissory Note with endorsements signed by Defendant on [date you signed the promissory note] and all copies of mortgage assignments."

If the documents are not produced in a reasonable amount of time you now step it up to the next level and file a motion to compel. You will need to change the occurrences of "document" to "documents".

If you are in a non-judicial foreclosure state you will need to send the qualified written request first and if no response then you will need to file suit on the lender to stop the foreclosure challenging the servicer's right to foreclose and will file the above documents with the court as the Plaintiff. You can do it yourself, hire an attorney or go through legal aid. You can ask the court for help on how to do this.

The next strategy to stop a foreclosure sale and save your house from foreclosure is challenging the notary book. This goes along with robo-signing. Notarized signatures have legal issues that must be met to be valid and therefore if challenged can also invalidate documents that are improperly notarized.

This can be your most powerful of ways to save a house from foreclosure sale. You want to be able to communicate directly to the investor when at all possible.

The servicer usually will not willingly help you do this. Servicers are paid so the investor does not have to deal with homeowners.

It is a lot easier for the investor to deny a mortgage loan modification to the servicer without ever seeing a hardship letter or hearing from the homeowner. Getting a hardship letter or phone call directly from the homeowner the investor is about to kick out of their home is a lot harder to do. The homeowner and family become real people the investor now knows, not just an investment to cut losses on.

The easiest way to do this is go to your local Tittle Search Company and pay them to find out who owns your mortgage and how to contact them.

You can try doing it yourself by going to county records. Ask the clerk how to find out who owns your mortgage and they will help you. If they are real busy and not very helpful, tell them you really need their help to save house from foreclosure and ask when would be a good time to come back, so they could help you. They will show you how to look up the information and may even do it for you.

Try to go when they are not busy. Call ahead and ask what is the best time to come as you will need their help to find out who owns your mortgage.

All three ways to save house from foreclosure sale work, but they work best when all three are used together. Any one of the ways to stop a foreclosure sale may totally handle your situation but why hold back.

Put all three of the ways to save house from foreclosure to work for you right away and always try to deal directly with the investor if your servicer is not working with you.

How To Save My House From Foreclosure - 3 Ways To Stop A Foreclosure Auction

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APPLY NOW to California - Oregon or California No-Upfront Fee Hardship Loan Modification Companies
Find out for yourself. Apply for no-upfront fee hardship loan modification even if you do not qualify for the Government Making Home Affordable Modification Programs. You may qualify for a No-Upfront Fee Hardship Loan Modification. (Currently available in California, Oregon and Washington)

DIY Loan Modification Kit
Are you looking for a DIY Loan Modification Kit that will walk you through the entire process of modifying you loan? Then read on.

Upside Down Mortgage Foreclosure Questions and Fighting Back Effectively
Help for the homeowner who is fighting to save their home from the mortgage foreclosure process. There is HOPE for homeowners. Something can be done about it!

The Upsidedown Mortgage Loan Modification Blog
The Upside Down Mortgage Loan Modification Blog - Find out what's new on the site, stay up to date with the latest developments in Residential and Commercial Modifications as well as Government Mortgage Assistance.

Upsidedown Mortgage Modification Myths Exposed
There are many Modification myths floating around. Get the facts. More homeowners qualify than lenders are letting on. Are you one of them?

Ask General Loan Modification Questions - Get Answers
Get answers to your own Upside Down Mortgage Loan Modification questions. See what other visitors have asked and their answers. What do you want to know or need help with? Got a situation you need help with? Just Ask.

Bank of America Loan Modification Problems, Questions And Answers Get answers to your own Bank of America Mortgage Loan Modification problems and questions or just see what other visitors have asked and their answers.

Ask Wells Fargo Mortgage Loan Modification Questions
Get answers to your own Wells Fargo Mortgage Loan Modification questions, tell us your Wells Fargo horror story or just see what other visitors have asked and their answers. What do you want to know or need help with? Got a situation you need help with? Just Ask.

Ask Your Chase Loan Modification Questions Or Tell Us About Your Chase Mortgage Modification Experience Go ahead tell us your story about Chase Loan Modification experiences or ask your own questions. Feel free to read others Chase stories, questions and the answers

What Is Loss Mitigation?
Get answers to Home Loss Mitigation questions - what is home loss mitigation, what is the loan loss mitigation process and how you can benefit from the process.

Modification Answers Home Page
Get real answers to the real questions on mortgage loan modification, government mortgage assistance, government help to stop foreclosure and other loan modification and foreclosure questions. Do I qualify for a loan modification? Can I save my home?

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Modifying My Million Dollar Loan

by Tim

Quick Facts on subject proproperty:
2nd home now rented ($70k net)
$1 million loan balance
Purchased 6 years ago for $1.375 million
worth $650k to $700k today
condo property with no available lenders
5/1 adjustable rate - interest rate today is 3.5%P&I
My DTI is approx 40%
gross monthly income = $25k/month
Divorce and reduction of income
Note is owned by Deutsche bank
I have missed two payments (credit is not important)
I want to modify my loan to a fixed rate and get my DTI under 38%, otherwise it does not make sense to keep it.

Do I have a chance for an in house loan mod with Deutsche?

Income properties are viewed differently when evaluating for modification and most lenders are more pragmatic and will make business decissions.

With that said if $70k net means after debt servicing, Condo Assoc Dues, insurance, taxes plus 12% for maintenance, repair and vacancy then there is no chance for a modification, that is a lot of positive cash flow from the investment.

Now if $70k is negative cash flow after debt servicing, Condo Assoc Dues, insurance, taxes plus 12% for maintenance,repair and vacancy you do have grounds for a modification/forbearance.

3.5% does not leave much room for a reduction but you can propose several options.

This really depends on what your objective is financially. Obviously ideal scene is a positive cash flow and at the minimum stop negative cash flow.

For a modification you can request that the current rate is fixed and the mortgage is extended to 30 or 40 years. There is not usually much benefit past 30 years but if we have the objective of positive cash flow there may be enough benefit and can be attractive to Deutsche Bank.

For a forbearance you can ask for a number of years (ask for a minimum of 5 yrs) of interest only payments which should provide positive cash flow. At the end of that time you can decide to short sell or not based on the current market and market values. Another option is to request principal forebearance of the unpaid principal balance above market value being made into a no-interest balloon payment due on sale or mortgage termination.

You are not likely to see equity before 5 years (it will be a bonus if you do) if then so your goal is positive cash flow and if that cannot be achieved to short sell. That is the way you would propose any modification to Deutsche and then act on that plan.

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