Across the country home prices are up nearly 7% from the lows in 2009. As Anthony Mason reports, some economists believe the housing market may still be on shaky ground.
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National Home Prices Up 7%
Sub Prime Mess Explained Beautifully!!!
www.GreenRoomStocks.comMortgage Modification: Who qualifies?
(Click “More Info” to see full video script!)
http://www.60MinuteLoanModification visit for a free CD on Mike Rockwood’s experience modifying 5 of his own home loans – and how you can too. Ask Mortgage Modification questions on our forums at http://www.60minuteloanmodification.com/members
Initially, lenders strictly adhered to the seven guidelines explained below when awarding mortgage modifications. Today thats no longer true. Theyre now limiting their analysis to fewer of the original criteria as the crisis deepens and the workload increases. In fact, the range is surprising and somewhat inconsistent. This indicates to me that the rules are being written on the fly.
Virtually all lenders are using cascading calculations, whereby one set of calculation results are used in the subsequent calculation. Therefore, no one criterion is final; rather, qualification depends on a combination of factors.
Ability to pay: This is your ability to meet the obligations of the modified loan. Customary underwriting criteria are used, so take 55% of your gross monthly household income. That is a rough estimate of how much monthly debt payment the lender will allow. This is your target amount after modification.
Debt to Income Ratio is the term that lenders use to describe this underwriting guideline. Its simply your total monthly debt payments, including cars, credit cards, student loans, and others, divided by your Gross Monthly Household Income.
Type of Loan: 100% of Negative Amortizing Adjustable-Rate Mortgages (NegAM) loans will be approved for modification to fixed rate loans. Almost no fixed rate loans with rates lower than 6.0% will be modified. Everything in between is fair game.
Hardship: Six hardships are commonly accepted:
Divorce or separation
Loss of income
Reduction in income
Death of spouse/co-borrower/family member
Illness
Military service.
Lets face it, with the economic downturn there are literally millions of Americans whose ability to meet monthly payments has diminished. So theres no shortage of hardship. The lender simply needs to know personally and specifically what your hardship is.
Occupant: Owner-occupied homes are the easiest. However, even HELOC loans on investment properties are being modified.
Default status: The FDIC Guidelines are that the borrower must not have filed bankruptcy during the life of the loan and a foreclosure sale must not be imminent. The Guides also state that borrowers should be encouraged to apply even if theyre not late on payments.
In reality, applications from borrowers who are current on their loans arent getting good modification offerseven with all the announcements to the contrary.
Age of loan: You can expect that any loan older than 9 months will be considered for a modification.
Balance Sheet strength: Whether you have significant additional assets beyond the property may be an issue, especially if the loan was a refinance with equity taken out or is a Home Equity Line of Credit (HELOC).
The first guideline is most important ability to pay. The modification will be approved by an underwriter who will apply standard qualifying criteria to your application. YOU MUST BE ABLE TO DEMONSTRATE THAT YOU CAN MAKE THE MODIFIED LOAN PAYMENTS. Beyond this, you need to make a strong case for at least one of the other two major guidelines.
I have automated this calculator has been automated! Use it online at www.60MinuteLoanModification.com.
Homeowners who dont qualify are in situations either too bleak (such as too close to foreclosure) or too solid (such as no duress and with good loans).
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Being a puppet: “That’s what I get paid for” BAC recording 6/13/09
A collector of Bank of America is candid in this call.
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The 529 College Savings Plan — A Guide for Parents and Policymakers
In this video SEC-registered investment manager Bill Parish examines 529 College Savings Plans, sharing his views on how to best choose and set up the right plan for these important savings. Also, a look at Oregon’s 529 vendor Oppenheimer’s failure to protect its plan’s most conservative funds from massive losses, while similar funds around the country remained stable.
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Subprime Loans
Subprime Mortgage Lenders are in financial trouble because too many customers are defaulting on their loans. KRON4’s Maureen Kelly finds that one former customer of one subprime lender was talked into a loan she couldn’t afford.
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Mortgage Modification Secrets: Shhh!
(Click “More Info” to see full video script!)
http://www.60MinuteLoanModification visit for a free CD on Mike Rockwood’s experience modifying 5 of his own home loans – and how you can too. Ask Mortgage Modification questions on our forums at http://www.60minuteloanmodification.com/members
For me, the housing market implosion became personal. If youre reading this article its likely that the crisis has become that way for you, too.
So much power and so little accountability! These lenders have dirty secrets that they wish you did not know. Knowing these will help you negotiate a better modification and KEEP YOUR HOME!
There are no rules!
By that I mean that street-smart homeowners should get on the bleeding-edge of this loan mod frenzy. The pioneers are getting extraordinary values. Whenever a big trend overwhelms and industry there is tremendous advantage that goes to the innovative and courageous. For many months I have been advising clients to pursue an aggressive loan mod solution, even when prospects seemed dire. I have been amazed at the results.
So, be brave, be intelligent and be diligent. You will prevailat least for now.
Most fees are bogus.
When you look at the amount a lender claims you owe them, you might be surprised at how large that number is. If you miss 4 payments of $1000 each, why don’t you owe $4000? The answer is late fees and penalties. The problem is that all of these types of fees have to be justifiable, and completely spelled out.
Most loans have RESPA and TILA violations.
Up to 70% of the loans currently in effect have RESPA and TILA violations. This means that the Real Estate Standards and Procedures Act and/or the Truth in Lending Act was violated when your loan was originated. This gives you recourse up to and including the hypothetical invalidation of the loan itself! Talk about leverage when attempting to negotiate!
You have a right to a timely and thorough response to your written inquiries. Banks wish you never heard of a Qualified Written Request.
Under Section 6 of RESPA is a requirement that lenders must acknowledge your inquiry within 20 days and respond thoroughly to your inquiries within 60 days. This request for a modification, there is a way to hold their feet to the fire. By sending a qualified written requestsuch as your hardship letter, request for additional concessions and request for itemization of feesyou force the banks to respond in a timely manner. This gets you priority in an overworked/ understaffed loss mit department.
Principal Reductions Are Possible.
Yes, it is true that principal reductions are the most difficult thing to achieve when negotiating a loan mod. Some banks however, would have you believe that they simply are not possible. That is a lie.
My clients have successfully negotiated principal reductions, even for investment property. The key is to have an intelligent proposal and be bold and persistent.
The first offer is always unacceptable!
Most people attempting to do their own loan modification are uninformed. Most own only one home, and haven’t had a lot of opportunity to hone their skills at modification. The lenders know this. They rely on it.
When you receive your modification offer, you must remember that it is the minimum that the lender is able/willing to do. They are driven to minimize THEIR loss, not yours! Ask for additional concessions in a Qualified Written Request very shortly after getting your mod offer.
For more info visit me at http://www.60MinuteLoanModification.com
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American Mortgage (Blender 2.47)
Foreclosure scams are around the corner.Parody about current mortgage scams in America.
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10 Reasons you should have a Forensic Mortgage Audit
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Richard (Ron) Simpson
770-623-6341
e-Mail: rsimpson@atlantahomesaleshelp.com
My Web site: http://www.atlantahomesaleshelp.com
http://www.1stam.instantlender.com
11285 Elkins Road, Suite J8
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