Loan Modification Programs

How it Works? If you have had an unexpected life event that is, or has, caused you an unforeseen financial hardship, our loan modification programs may works to alleviate some of that financial strain. Our team of financial strategists will work with you to build a full financial analysis. We will analyze your homes current market/appraised, and your current financial situation, and determine whether or not our programs would be a good fit for your particular situation. Once our specialist has determined that you are qualified, and you are comfortable with entering our program, we will work to negotiate the terms of your loan directly with your lender on your behalf. Whether you are merely finding it difficult to meet your monthly obligations, or are in an adjustable rate loan and your payment is set to adjust, or already has adjusted, and the market value of your home has depreciated to the point that it is worth less than that of your principal, we have the skill, knowledge, expertise and contacts to allow you the greatest chance at achieving the result you desire. Lenders are willing to work with us to analyze your current financial situation and make a decision on whether or not it is economically feasible to write down your principal balance and/or your interest rate/term thereby allowing you to stay in your home and avoid foreclosure. “There was a time when lenders didn’t want to work with you if you couldn’t pay. Now they want to avoid foreclosure, lawsuits or repossession almost as much as you do.” With home prices on the decline, every foreclosure now results in an approximate loss of 44% of the original loan amount, up from 29% only a year ago, according to data from LPS Applied Analytics. 1 The bottom line is, mortgagees have never been in a more favorable position to modify the terms of their loans with their lenders! Now is the time to leverage our decades of experience, expertise, and contacts to help you keep your home and avoid foreclosure. FAQ’s Q. Are lenders and banks willing to go through this process? A. Most homeowners don’t realize that lenders and banks DO NOT WANT TO FORECLOSE ON YOUR HOME. In the current market, they will lose money by taking your home and trying to sell it, so the majority of lenders are very open to the Loan Modification process. So consistently tell our clients that Loan Modification is an emerging option to foreclosure that benefits homeowners and lenders alike. Q. I’ve already talked with my lender and they just want all their money. Can you still help me? A. Yes! Most of our clients have experienced this kind of inflexibility from their lenders before calling us. Over the years we have developed positive working relationships with key people in the loss mitigation dept at most banks. Our integrity and professionalism have earned us a reputation that allows us to be heard when no one else can get through the red tape. We will use our experience and connections to your advantage. Q. What is foreclosure? A. Home foreclosure is a process by which a lender regains a property which they have financed. Typically, this is because the borrower or homeowner is behind on house payments and is unable to catch up, often due to circumstances outside of his or her control. When the lender forecloses on the homeowner, the homeowner must move out of the house, therefore, losing all possession of the property and jeopardizing any possible equity that the homeowner may have in the home. There is a legal time frame, which varies from state to state, which determines how long the foreclosure process can take. Q. When is the trustee’s sale complete? A. The sale is final upon the auctioneer saying “sold” and the sale is deemed perfected as of 8am on the day of sale provided the Trustee’s Deed Upon Sale is recorded within 15 days of the actual sale date. Q. How long do I have to act? A. Time is of the essence when you are behind on house payments. Time is definitely not your friend in this situation. Each day that passes makes it that much harder to get a work out agreement with your lender that you can live with. The home foreclosure process can take anywhere from a few weeks to many months, depending on your state law and the method of foreclosure your lender chooses to use. We have encountered many homeowners who did not even know that they had already lost their home! Act NOW! Q. How successful have you been in other cases? A. 98% success rate, we are a Financial Solutions Company with decades of experience dedicated to helping you save your home and your credit. If we think your situation is beyond remedy, we will tell you right away. We know you’re used to getting your hopes up only to be let down later and want to be up-front and honest with you. If we accept your case, we will explore every possibility to save your home and your credit. Q. How does the lender decide the maximum loan amount that I can afford? A. The lender considers your debt-to-income ratio, which is a comparison of your gross (pre-tax) income to housing and non-housing debts. Non-housing expenses include such long-term debts as car or student loan payments, alimony, or child support. Typically, mortgage payments should be no more than 29% of gross income, while the mortgage payment, combined with non-housing expenses, should be no more than 41% of income. The lender also considers your cash available for a down payment and closing costs, credit history, and employment history when determining your maximum loan amount. Q. Do I have enough time to stop my foreclosure? A. Up until the foreclosure sale occurs there is still hope. If a sale date for your house has been set you need to act fast. We have stopped sales set for the next day but this is very risky and some lenders will not agree to it. You’re best option is to take action immediately to stop foreclosure before it goes too far. Q. Should I file for bankruptcy to save my house? A. Maybe. The American Bar Association has reported that 96% of homeowners who declare bankruptcy end up losing their home to foreclosure anyway. Bankruptcy is very unlikely to help you save your home. If you declare bankruptcy you will likely end up with BOTH a bankruptcy and a foreclosure on your credit report. That being said, there certainly are times when bankruptcy is appropriate and we recommend you consult a reputable attorney should you think you need it. Q. What can loss mitigation do for me? A. The goal of loss mitigation is to work out an agreement between the homeowner and the lender that will provide you with terms you can manage. This allows the homeowner to stay in their home and protects their credit history. Q. Several companies have contacted me recently offering to help, what’s different about Startovertoday.com? A. There are many predatory companies who are not what they appear to be. Beware of unscrupulous companies who are actually just interested in buying your house at big discount, attorneys who just want to take you into bankruptcy or companies that collect a consultation fee then do nothing for you. Our success rate speaks for itself. Q. Can Startovertoday.com help me with my government backed (or insured) mortgage(S)? A. Absolutely! Startovertoday.com is experienced in negotiating all kinds of government loans, including FHA or VA owned mortgages and Fannie Mae / Freddie Mac insured mortgages, as well as privately insured mortgages. We are highly proficient in all of the specific rules and regulations governing the acceptable short payoffs / loan modifications of these mortgages types. Loan Mod Facts It is estimated that 1 out of every 33 homeowners will find themselves in foreclosure primarily over the next two years. In some states, the outlook is especially grim; for instance, nearly one in 11 homeowners in California and Nevada is projected to be in foreclosure and one in 18 Arizona homeowners may face the same circumstance over the next two years. It is calculated that approx. 26% of all home loans made in 2005-2006 were sub-prime An estimated 43.5% of all homeowners will likely feel the ripple effects of foreclosures from subprime loans. Affected homeowners are expected to lose an average of $8774 on property values Approx. 36% of all borrowers who fall 30 days late on their mortgage will fall to 60 days late. (this is because it is so hard to catch up in today’s economy) Approx. 61% of all borrowers who fall 60 days late on their mortgage will end up in foreclosure. Most non-profit and government programs formed to help homeowners avoid foreclosure offer little more than temporary fixes to the problem aimed at postponing the problem more than fixing it. These temporary fixes such as forbearance agreements and repayment structures are often misrepresented by Lenders as Loan Modifications. A true Loan Mod needs to supply a long term solution. These types of solutions usually require extensive negotiation. Once you have accepted one of these short sighted solutions you are no longer eligible for a real Loan Modification for a minimum of one year. Our Loan Modification Service only accepts offers that will provide a manageable long term solution to our clients’ home situation.

Loan Modification...Who Is At Risk?

What is a Loan Modification Program and Who Is at Risk? This is the “question of the day” as many homeowners are faced with some very difficult decisions. As a result of a number of financial issues, including sub-prime loans some two to three years ago, some homeowners are now dealing with increased adjustable rate mortgage payments, or a loss of a job by one of the wage-earners, or a change in their personal circumstances that is causing an unexpected move out of their home. What was thought to be a “good deal” a short time ago is now turning into a “nightmare” for some, and they are earnestly seeking ways to resolve their immediate situation. One option is a loan modification program that has been on the national news just this week. What is a Loan Modification Program (LMP)? This is a program that is designed to change the mortgage payment and terms agreement that the homeowner entered into when they took out the loan. How can you change a note, a contract, and an agreement that was agreed upon and signed by all parties, one may ask? Legally, the only way is to change the terms with all parties agreeing, and that is exactly what happens with a LMP. What is the process? It starts with understanding how the original loan was made. In many cases in this area, a homeowner would go to a local lender, such as a bank, a mortgage broker, or a mortgage representative and get a loan. This loan application and approval was handled by the mortgage maker (bank, mortgage company, etc) and after the close of escrow, this loan was “sold” by this lender to a larger “investor”, such as Fannie Mae, Freddie Mac, or one of the many Wall Street money firms, such as Lehman Brothers. This parent group, if you will, then invested the money and all were happy. This process was fine as long as the value of the security (the home) would continue to keep or grow in value. What happened though, starting about four years ago, was that the housing industry on a nationwide scale, thanks to the unprecedented availability of money, starting building homes at an alarming rate, especially in the larger metro areas and suburbs around those areas. The result was a huge increase in the inventory of available homes, and then supply and demand set in. The supply grew faster than the demand, and prices started leveling and in some cases dropping and the result was the value of the home security was reduced. The investor got worried, and decided to sell the security, and this went on for awhile until the basic security dropped even lower in value, making the security harder to sell. Before long the investor had a bad investment. Our economy is based on moving dollars from one arena to another, and this process, in the housing industry, just stopped. Compounding all of this was the adjustable rate mortgage, whereby mortgage payments start increasing after the first year of the loan. As the housing industry slowed down, so did all of the associated industries, such as lumber, flooring materials, plumbing, etc. With a slowdown, comes a loss of jobs, and the resulting income. Many two income earner families saw their incomes drop, but at the same time their mortgage payments were going up. Not a good situation. The immediate effect was that homeowners said, “we cannot afford this home, so let’s sell”. Due to the inventory and dropping prices, the homeowner is eventually faced with not making the payment and walks away from the home and all of the obligations that go with the home. The investor is left with an empty home that is losing value daily with no income at all coming from that investment. Not good. The rest is history, as it becomes a downward spin for all involved. Instead of addressing this situation some two years ago, many lenders, driven by greed and not fully appreciating the magnitude of what was actually happening, refused to negotiate with the homeowner in an effort to “save the deal”. The result was the highest percentage of mortgage foreclosures in our history, and it is still going on. And, here comes the federal government to the rescue, just way too late. The problem is now of huge proportions, for national housing investments have continued to plummet and many of the investor’s securities are almost worthless. After trying to bail out Wall Street, the government decided to try and help the homeowner, and brings up Loan Modification Programs. Again, too late to help such a huge problem, but at least an attempt. The problem is, how does the government decide who to help and how much help to provide, and this is where the federal program will bog down. A few years ago, some foresighted financial folks saw what was happening and decided to address the issue head on, and we saw an increase in the number of debt resolution companies, initially directed toward credit card debt. Some decided, as the housing market declined, to address the mortgage loan issue, and that is where we are today. This Thursday night, November 20, 2008, at 7 PM, at the Redding Main Library, we will be conducting a Mortgage Loan Modification Seminar for all that are at risk or are thinking that they might be at risk in the near future. This is an information dissemination seminar and the various options will be explained by the Largent Team at Keller Williams Realty who will be joined by a national debt resolution firm that has a 97% success rate with loan modification programs. The process outlined above will be explained in more detail, questions will be answered, and hopefully options will be offered that can help homeowners as they deal with the possibility of “losing their homes”. Reservations can be made for the free seminar by calling 530-248-5601.

Loan Modification Seminar in Redding,Ca This Thursday Nove 20

This coming Thursday, November 20, 2008 at the Redding Main Library, we will be holding a seminar on Loan Modification Programs. The public is invited, especially those that think they may be at risk in terms of losing their home due to foreclosure. The following is a synopsis of what will be covered at the seminar. * Loan Modification o Loan Modification - 99% of all “A” type lenders and 70% of sub-prime lenders (with high interest rates) will negotiate a loan modification where most of the delinquent payments and foreclosure fees are either wiped out or added onto the back end of the loan. Payments can remain approximately the same. In most cases the interest rate will be reduced permanently. * Interest Rate / Payment Rate Reduction o With the increase of interest rates on home loans many homeowners with adjustable rate loans are faced with mortgage payments they can no longer afford. Our job is to convince the current lender that it is better to lower the homeowner’s payment by lowering the interest rate or payment rate by creating a payment plan the borrower can afford, than to take the home with a foreclosure sale and lose money on the re-sale. Keep in mind lenders lose money on bank owned properties as it will sell for less than market value, and they must pay a commission to a Realtor; and closing cost plus the cost of holding the property while they wait for a sale in a market that is depreciating. We need to prove to the lender what the maximum payment is that borrower can afford by constructing a financial plan for the homeowner that the lender will approve. Also as the homeowner is often late with their payments and in foreclosure or soon to be in foreclosure, we need to ask the lender to forgive the delinquent payments or put them on the back of the loan. A rate reduction in most cases is the only possibility for a homeowner to retain their home o Note: the success rate on a workout program without a rate reduction is 97%. Note: If we can prove you owe more that the value of the property and there is a second loan, we can convince that second lender to take a major reduction –of 50% to 80% — off the balance of the loan. * Principal Reduction o When a property is upside down and the homeowner is facing foreclosure, the homeowner has more leverage than they may realize against their lender. It is our job to force that leverage upon that lender. In doing so, we are successful in wiping out large portions of principle. Typically 50-80% on seconds. In today’s market, we can also convince the lender of first lien holders to lower the principle amount to the present market value. (ex: a homeowner owes $600,000 on first but the appraised value is $500,000. We can convince the lender to lower the loan amount to $500,000.) That is a $100,000 reduction in principle for the client. For questions on this subject, or if you want input on your mortgage situation, plan on attending the seminar this Thursday at the Main Library in Redding at 7 PM.

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