Earlier this week President Obama rolled out the Housing Recovery Plan. The main focus of the plan is for refinancing current mortgages and modification of mortgages with Fannie Mae and Freddie Mac. The two initiatives are designed to significantly expand the numbers of borrowers who can refinance or modify their mortgages to a payment that is affordable now and into the future. Making Home Affordable Refinance includes new refinancing flexibilities for homeowners whose loans are owned by Fannie and Freddie. Key features include:
You and I both know that you have got to do something if you plan on staying in your home for many years to come. For starters, if you are not angry, you should be and I don't mean Angry at yourself. You should be angry with the fact that the Banks got bailed out and are still raking in tons of money all at your expense. You should be angry at the fact you have not be helped with a loan product that probably should have been outlawed by the powers that be long before you got it.
Doesn't the government have a program where I can get help with my mortgage? Answer: Yes, there are several programs under the umbrella of The Obama Administration's "Making Home Affordable Program" The most common is the modification program known as "(HAMP)". However, there are other programs that a homeowner might be eligible for like the Unemployment Program, 2nd Lien Modification Program, Refinance Program, and Foreclosure Alternatives Program. The two main criteria are 1. The property must be an Owner Occupied and 2. The loan must be owned or guaranteed by Fannie Mae or Freddie Mac. The main site of the government program page Making Home Affordable website can give you more detailed information on each program along with eligibility. In addition, HUD offers assistance through their office and holds occasional community events. A reputable and seasoned real estate agent can also give free advice on the different HUD options. Make sure that you do not pay for this advice since there are many good people willing to help you for free.
How can I tell if a Loan Modification is right for me? Answer: Ultimately it is the lender or investor who will decide if you fit their criteria. It is important to note that each investor has different programs. Just because your loan is with the same servicer as someone else that you know, it doesn't mean that you have the same investor. Each situation is different and should be evaluated by a professional who is well seasoned in distressed property resolution. With a quick calculation they should be able to tell you right away if a modification is a good option that will improve your situation. Ask them to show you how they are calculating your estimated payments so that they are not just saying what you want to hear. Another good tool is a simple mortgage calculator online. If you have been paying on an interest only mortgage for example, and you want to know what your payment will be on a modification to a fixed rate...just plug in your principle balance and number of years left on your mortgage. It will tell you the estimated payment so you can see if the fixed payment is something you can afford. It should be this simple for a loan modification "expert" to help you with. Therefore, if they can't do it in front of you or over the phone...run...they don't know what they are doing.
I keep hearing about people filing bankruptcy to stop a foreclosure. Is that true? Answer: It depends; I know it sounds like a lawyer answer. But it's true. Unfortunately, there are many attorneys out there that are filing bankruptcies without informing their client of facts and legal implications. Although technically filing a bankruptcy will stop the foreclosure, it is only for a short amount of time. Eventually in about 30 days the client will have to continue to move forward with the bankruptcy. If the client only wanted to stop the foreclosure and doesn't have enough grounds to continue with the bankruptcy, then the lender will end up taking the house either way. A good bankruptcy attorney will conduct a full analysis of your entire financial situation. They will not only be interested in stopping the trustee sale, but they will also be interested in your financial future and explain your options thoroughly. Ultimately, the short answer is, filing a bankruptcy for no other reason than to stop a trustee sale is more than likely not your best option. After a foreclosure you normally have at least 30 days which is about the same amount of time a frivolous bankruptcy filing will give you.
You and I both know that you have got to do something if you plan on staying in your home for many years to come. For starters, if you are not angry, you should be and I don't mean Angry at yourself. You should be angry with the fact that the Banks got bailed out and are still raking in tons of money all at your expense. You should be angry at the fact you have not be helped with a loan product that probably should have been outlawed by the powers that be long before you got it.
Doesn't the government have a program where I can get help with my mortgage? Answer: Yes, there are several programs under the umbrella of The Obama Administration's "Making Home Affordable Program" The most common is the modification program known as "(HAMP)". However, there are other programs that a homeowner might be eligible for like the Unemployment Program, 2nd Lien Modification Program, Refinance Program, and Foreclosure Alternatives Program. The two main criteria are 1. The property must be an Owner Occupied and 2. The loan must be owned or guaranteed by Fannie Mae or Freddie Mac. The main site of the government program page Making Home Affordable website can give you more detailed information on each program along with eligibility. In addition, HUD offers assistance through their office and holds occasional community events. A reputable and seasoned real estate agent can also give free advice on the different HUD options. Make sure that you do not pay for this advice since there are many good people willing to help you for free.
How can I tell if a Loan Modification is right for me? Answer: Ultimately it is the lender or investor who will decide if you fit their criteria. It is important to note that each investor has different programs. Just because your loan is with the same servicer as someone else that you know, it doesn't mean that you have the same investor. Each situation is different and should be evaluated by a professional who is well seasoned in distressed property resolution. With a quick calculation they should be able to tell you right away if a modification is a good option that will improve your situation. Ask them to show you how they are calculating your estimated payments so that they are not just saying what you want to hear. Another good tool is a simple mortgage calculator online. If you have been paying on an interest only mortgage for example, and you want to know what your payment will be on a modification to a fixed rate...just plug in your principle balance and number of years left on your mortgage. It will tell you the estimated payment so you can see if the fixed payment is something you can afford. It should be this simple for a loan modification "expert" to help you with. Therefore, if they can't do it in front of you or over the phone...run...they don't know what they are doing.
I keep hearing about people filing bankruptcy to stop a foreclosure. Is that true? Answer: It depends; I know it sounds like a lawyer answer. But it's true. Unfortunately, there are many attorneys out there that are filing bankruptcies without informing their client of facts and legal implications. Although technically filing a bankruptcy will stop the foreclosure, it is only for a short amount of time. Eventually in about 30 days the client will have to continue to move forward with the bankruptcy. If the client only wanted to stop the foreclosure and doesn't have enough grounds to continue with the bankruptcy, then the lender will end up taking the house either way. A good bankruptcy attorney will conduct a full analysis of your entire financial situation. They will not only be interested in stopping the trustee sale, but they will also be interested in your financial future and explain your options thoroughly. Ultimately, the short answer is, filing a bankruptcy for no other reason than to stop a trustee sale is more than likely not your best option. After a foreclosure you normally have at least 30 days which is about the same amount of time a frivolous bankruptcy filing will give you.
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