In 2008 Private National Mortgage Acceptance Company was started by former executives of Countrywide Financial. This company has been nicknamed Penny Mac. Its focus is troubled loans. In May of 2009 the company filed a plan to raise $750 million through a public stock offering with the Securities and Exchange Commission. the company's game plan is to buy troubled loans at a deep discount from the nation's banks. They will then contact the people facing foreclosure and offer to modify their loans to make them more affordable.
If you are unable to make the three payments on time, you are not eligible to continue in the program. You revert back to the status before you sought to be included in this program. You may be eligible for other options to prevent foreclosure on your home that your mortgage company has. This is not desirable. Those options are probably not going to be as favorable as a modification under this program. If you make the three payments on time, your mortgage company will offer to make your modification permanent. At this point you will sign an agreement with them legalizing the modification. This modification takes effect on the first day of the month following the date on which the agreement is signed.
Your mortgage company is required to set up an escrow account for your real estate taxes and home owner's insurance. Your monthly payment will include 1/12 of your estimated annual real estate taxes and insurance premium. They will pay your real estate taxes and the premium for your home owners insurance for you from that point forward. Your mortgage company will encourage you to participate in a counseling program with a housing counselor approved by the Department of Housing and Urban Development. They will also furnish you with a list of approved counselors in your area. You can make an appointment with the counselor of your choice. That counselor will review your finances with you. They will help you understand all of your financial options. They will also work with you to create a workable budget.
Most likely they will be inclined to tell everyone they know how great this new company is. This company's program is just starting. Mortgage companies and financial investors will be monitoring closely to see how successful they are. If they are successful, other companies will follow their model and start to do the same thing. As more companies start to do similar modifications, the number of foreclosures should drop. This approach as well as the Making Home Affordable Modification Program should go a long way to eliminate the foreclosure crisis in the United States.
Tip 3: Point Out Any Downsides- Remember Mr. Drysdale, the banker in charge of Jed Clampett's money in the TV show The Beverly Hillbillies? Remember how he'd pass out anytime he thought he was going to lose some of it? Think of that with this next tactic. Remind your lender you're doing everything you can do to help them too. It costs the average lender in the US from $24,000 - $54,000 (or even higher) to go completely through the foreclosure process, depending on the state they're in. It never hurts to bring that into the conversation if you reach a sticking point.
If you are unable to make the three payments on time, you are not eligible to continue in the program. You revert back to the status before you sought to be included in this program. You may be eligible for other options to prevent foreclosure on your home that your mortgage company has. This is not desirable. Those options are probably not going to be as favorable as a modification under this program. If you make the three payments on time, your mortgage company will offer to make your modification permanent. At this point you will sign an agreement with them legalizing the modification. This modification takes effect on the first day of the month following the date on which the agreement is signed.
Your mortgage company is required to set up an escrow account for your real estate taxes and home owner's insurance. Your monthly payment will include 1/12 of your estimated annual real estate taxes and insurance premium. They will pay your real estate taxes and the premium for your home owners insurance for you from that point forward. Your mortgage company will encourage you to participate in a counseling program with a housing counselor approved by the Department of Housing and Urban Development. They will also furnish you with a list of approved counselors in your area. You can make an appointment with the counselor of your choice. That counselor will review your finances with you. They will help you understand all of your financial options. They will also work with you to create a workable budget.
Most likely they will be inclined to tell everyone they know how great this new company is. This company's program is just starting. Mortgage companies and financial investors will be monitoring closely to see how successful they are. If they are successful, other companies will follow their model and start to do the same thing. As more companies start to do similar modifications, the number of foreclosures should drop. This approach as well as the Making Home Affordable Modification Program should go a long way to eliminate the foreclosure crisis in the United States.
Tip 3: Point Out Any Downsides- Remember Mr. Drysdale, the banker in charge of Jed Clampett's money in the TV show The Beverly Hillbillies? Remember how he'd pass out anytime he thought he was going to lose some of it? Think of that with this next tactic. Remind your lender you're doing everything you can do to help them too. It costs the average lender in the US from $24,000 - $54,000 (or even higher) to go completely through the foreclosure process, depending on the state they're in. It never hurts to bring that into the conversation if you reach a sticking point.
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