Loan Modification Success
Posted by Rachel LaMar, J.D. | Currently 1 Comment »
Many homeowners have been hit hard by the recent changes in the housing market. We all know someone who has been threatened with foreclosure or is fearful that they will lose their home due to interest rates resetting, job loss, illness or other factors.
Some homeowners took equity out of their homes in good times and with decreased values they now find that their homes are worth less than what they actually owe. All this fear has lead many to foreclosure, including intentional foreclosure or “walk aways.”
Whether it’s a friend, neighbor, family member or yourself facing this issue the fact is that it effects all of us by bringing down property values. The reality is that there are other options to foreclosure and walking away, including loan modification.
This option is getting a great deal of attention in the media right now due to the lenders’ panic to come up with solutions to foreclosure. The good news is that modifications are easier to get now than before, but you have to understand how to to approach this subject so that you can successfully work with the bank and possibly save your home.
The following information is from my book, Mortgage Walkaway Options. Let’s start with the basics. A loan modification occurs when there is a change in one or more of the terms of a loan, which reduces the loan amount and generally m
akes payments more affordable.
In simple terms, it means refinancing a loan to a lower amount. The lender and borrower must agree in writing to change the terms of the loan. Up until now many lenders didn’t want to speak with borrowers who had not yet defaulted on their loans.
This is because they had a plethora of active files sitting on the desks of their loss mitigation department already, and they were having trouble dealing with the ones who were in default and did not have the manpower to add more files that were not yet considered risky. Luckily that seems to be changing. There are a few recent regulations and announcements that will help you achieve a successful loan modification.
Firstly, if your first loan is with Bank of America or JP Morgan Chase you are in luck. B of A, now one of the largest lenders in the business, announced in October that it was going to begin review of all of its loans that were variable interest rate loans and option ARMs. Upon review, the lender plans to notify homeowners if they qualify for loan modification, and then to work with the homeowners toward resolution. Chase also announce it is putting a hold on foreclosures with the intent to work out modifications with qualified borrowers.
This news is HUGE for several reasons: one, it takes the burden off the homeowner to try for resolution with a lender who often does not have time nor manpower to help.
Two, the bank is actually being proactive in preventing more foreclosures, which will help many stay in their homes and eventually help the real estate market and likely induce other lenders to follow suit.
If your loan is with another lender who has not yet instituted such a policy, you can seek help under the newly enacted government plan, Hope for Homeowners. This legislation took effect October 1, 2008 and allows you to refinance your loan into a new 30-year fixed rate loan if you qualify.
Your loan will be based upon an appraisal of the CURRENT market value of your home, so if prices have gone down since you purchased your new loan payments will be based upon current values, making them much more affordable. 
This program requires you to contact the lender to initiate the process. There are important considerations you need to be aware of in regards to this program. For example, if you sell your home after the modification takes place the new lender will be entitled to a percentage of the gain on the property (appreciation and equity sharing). The amount changes over time.
Also, you will not be able to take out equity on your property after the change unless these second liens are directly related to property maintenance.
To understand fully the ramifications and qualifications under this legislation you can go to the website, www.MortgageWalkawayOptions.com and download my book, or you can feel free to call me and I will be happy to help you. My direct number is (760) 310-9466.
Most importantly, know your options in the face of foreclosure and educate yourself BEFORE taking any action. Right now is a great time to modify a loan, as there is a general consensus among lenders that this option benefits them the most (as does it benefit you, the homeowner).
Take advantage of the programs available to you so that you don’t have to lose your home or worry about an upcoming rate change. Just as important, you need to be in constant contact with your lender–keep a record of all correspondence and communications with your lender and be vigilant–keep calling.
If you are not having luck there are numerous counseling groups that can assist you. My favorite is HopeNow. They can be reached at (866)995-HOPE (4673). Best of luck to you!
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Related Posts: Contracts & Negotiations, Education, Financial news, Foreclosures, Free Foreclosure Lists, Home Loans, Homeowners, Mortgage News, Real Estate News, San Diego, Short Sales
Then Is Now…Part Deux
Posted by Susan "Sully" Sullivan | Currently 1 Comment »
Do you remember one of my previous blog theories titled, “Then Is Now”, meaning, “I wish I would have bought Then”…is Now!
Here is my most recent poignant thought that I would like to share with you… If this is the worst real estate market (for sellers) in recent history, then surely it creates some of the best buying opportunities in a lifetime as well.
Real Estate is not my job…it’s my passion! I don’t just sell real estate, I feel real estate and I am going on record to declare that TODAY/NOW is the time to invest. 
Think about it…With the feds planned interest rate hike coming very soon, combined with lenders tightening the belt on regulations regarding loan requirements, each day that goes by and each incremental interest rate hike, WILL affect your buying power. What is attainable today, in my humble opinion, may very well become out of reach for you tomorrow, and anytime in the future.
Here’s a scenario that has been occurring: You’ve been approved for a home loan and you’ve been waiting for “the bottom to fall out”. On a daily basis loan programs that you may have been approved for are being eliminated, and sometimes without ANY warning. You are now no longer approved and will be unable to purchase the home you have been waiting for when it finally becomes available. NOT FUN!
It is my intention to guide you through all the processes of this confusing time - and that even means using the ‘F’ word…Foreclosures, not my favorite, since there are multiple offers and are not always the best deal when you find unexpected surprises such as tax liens, concrete in the plumbing, AS IS conditions, and expedited contingency and closing time-lines. But I will give you my expert opinions and assistance if this is where you think you want to go. I’m finding that you can have a nice, clean and relaxed transaction in the same price range that the foreclosures end up getting pushed to in the multiple offer frenzy process. Personally, I like to shop when there’s no one else in the store, but that’s just me.
Bottom line: If you are still waiting on the fence, you may miss this opportune time to own a piece of the California Coastline.
IN OTHER WORDS… 
DON’T LET THIS BE YOU!! GET UP, GET OUT THERE, AND MAKE IT HAPPEN!
I look forward to facilitating all of your real estate needs and remain and please feel free to check out my blog on my website: www.sully4realestate.com or www.realestatedeva.com to read how I really feel about things.
Popularity: 19% [?]
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San Diego Home Prices - Get the Facts
Posted by Diane White | Currently 1 Comment »
Want the facts? I have attached the recorded homes sales in San Diego County by zip code for June and May 2008. This is for all home sales, not just the resale’s done through the MLS system facilitated by real estate agents.
Some interesting notes about home prices in San Diego:
- Single Family Detached Home Sales are up over last year in Carmel Valley, Carlsbad 92009, Del Mar, Solana Beach, University City and Rancho Santa Fe.
- Single Family Detached prices are up from May in several communities such as Encinitas, Carmel Valley, Del Mar, Carlsbad 92009, La Mesa, Rancho Penasquitos, and Rancho Bernardo 92128.
- Attached Homes have seen significant price decreases over last year, as everyone knows. However, prices have increased over last month in some areas including Carlsbad 92008, 92009, Encinitas, Penasquitos, Rancho Bernardo West, Mission Valley and Downtown.
To view the reports click on the desired month: May 2008, June 2008
Every home that I have shown recently that is a bank owned or a short sale has had multiple offers…most often they have some that are over the asking price. I have also noticed that investors are coming back into the market and taking advantage of the reduced prices for attached homes.
Here is a very interesting article that you may want to read from Inman News:
As always, please feel free to pass this information on and let me know if there is anything I can do.
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March Into Home Ownership - Why NOW is the time to buy!
Posted by Carole Ferris | Leave A Comment »
When was the last time interest rates were this low while the selection of available homes was the highest in a decade? Historically, the correct answer is Never. By way of example, an interest rate of 8.0% is 45% more expensive than a 5.5% interest rate. Generally speaking, this means that if you qualify for a $400,000 loan today you will only qualify for a $275,000 home when interest rates go to 8.0%.
The new loan limits HUD is rolling out will be good through the end of 2008, interest rates are historic lows and San Diego has an outstanding inventory of homes for sale. These are all indicators that taking advantage of ownership in San Diego real estate is a wise idea. The new maximum FHA loan limit in San Diego County is expected to be $729,500. By law, the new loan limit must be established by the 15th of March, 30 days after the bill was written into law.
Rarely are buyers in control in Southern California, however for many months now they have been. Cyclical housing downturns occur regularly, but they do not last forever. Buyers could not be kept out of the housing market indefinitely, and cycles often result in values going down and then rebounding to even higher levels!
Economic reports about San Diego reveal that the market is still growing, albeit at a more moderate pace. Even after the loss of 89,000 people, the California still had a net gain of over 400,000 people. By 2050, our Golden State is expected to reach a population of 60 million! San Diego County’s population grew by 22,000 last year, bringing it up to nearly 3 million. By 2050 it is expected to grow to 4 million! Bottom line is that all of these people will all need a home in which to live.
The media reminds you that California leads the nation in foreclosures, but fails to mention that it is in part because California also has the greatest number of homes and mortgages in the nation to begin with. Out of the 1,456 zip codes in California, the foreclosure problem only exists, primarily, in 20% (293) of those zip codes. And, the bulk of the foreclosures in the 293 zip codes are in the Inland Empire, the Central Valley and Sacramento region.
With San Diego’s large and diversified economy, its location on the Pacific Rim, and its great climate, doesn’t it make sense to purchase your home when money is so affordable, prices are down, and when there is such a great selection of homes from which to choose?
I say March is a great time to march into home ownership.
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Related Posts: Buyers, Homeowners, Interest Rates, Mortgage News, Real Estate News, San Diego
