Avoid Foreclosure With Moe. Ask Me Any Questions and I will Help For Free!!!

by Moe Bedard on August 3, 2007 · 40 comments

in Loan Workouts

I have been getting a lot of traffic to my new blog and also calls and emails. It feels great that only after less then a month, my message is getting to people who are trying avoid foreclosure and save their home.
I want to keep my website free and open to everyone who needs help. The more question and answers that are revealed here will only help future readers and people that are in your same situation.

I am an expert at loss mitigation and loan workouts and I want to keep this website is free to everyone to help eachother make it through this.

So I would like to make this post all about question and answers. You ask the question and I give you the honest answer.

So please ask?

I will post a few here that I have just answered recently.

8/3/2007 6:40 AM oscar wrote:
Hi!
I have 2 loans for my house (80/20). first loan for $399,000.00 (%6.74)interest only
second for $99,000.00(%10.5)
I’ve had this loan for almost 2 year but on October the interest on the first loan is going to increase. I am going to pay about $750.00 more per month and six months later is going to increase to $1,000.00.
I try to refinance, but since my house has lost value nobody wants to refinance my house.
My 2 loans were sold to HSBC about a year ago. I try to refinance with them but they sent me to another company that is affiliated with HSBC (Beneficial) and they refused to refinance.
I think that my only thing to do is try to work a Loan Modification with them, the problem is that I do not know how to do it.
I’m thinking of hiring a company that could do that for me but I ‘m afraid that they will just take advantage of my situation and I will end up losing money with them and still have to pay the increase of the loan.
If I do it my self I need to find the right way to approach them for them to take me seriously.
I really need some guide.
Do you have any advice or suggestions for me?.
Do you know of a honest company that could negotiate for me?
Or do you think that this is something that I can do my self?
My credit is good (above 720) but that does not seem to be any help at all.
I feel that I’m running out of options.
I might be able to come up with the money to pay the increase of the loan but that will mean that I have to work 6 days a week/12 hrs/day.
Right now I’m working 5 days/12hr shift.
I do not want to loose my house but I also don’t want to loose the time that I have left for my boys (5 and 3.
Please help me!!

Thanks
Reply to this

  1. 8/3/2007 7:05 AM Moe wrote:
    Hello Oscar!First I want to commend you for being proactive and doing something now, before your ARM loan adjusts. That’s the first and most important step. Especially if you see that there will be trouble in avoiding  foreclosure once your payment resets.

    What we need to look at is what your current debt load is and how much documentable income is coming in. Add up all your mortgage payments, credit card, car etc. (anything that would be on your credit report) Next what is your total gross income? Before taxes. Let’s look at this before we go any further, OK?

    Let’s see if we can have you do this on your own Oscar with my help. Are you good on the phone? How is your negotiating skills? Those are important when dealing with these lenders because that’s what they are good at so you need to fight fire with fire.

    Feel free to call me if you like at 951-271-6283 or just respond here and I will do the same.

    I will make sure you do not lose your home and you will make it through this!

  2. 8/2/2007 7:32 AM Betty wrote:
    I called the EMC Mod Squad in May – I was behind. They requested 3 payments be made on time. Payments requested ($3,550/month) were $600 a month higher than my normal payment. After 3 timely payments I would be contacted by the loan modification program and, although they couldn’t promise what the new interest rate would be, loan modifications were currently coming in around 5% and I would get a fixed rate loan. Loan modification department called me this week. No fixed rate, no change in ARM interest rate or adjustment periods. They are just tacking the late fees and past due payments to the end of the loan and raising my payments by $200 a month. After initially talking to 2 individuals at the “Mod Squad,” both of whom indicated I would end up with a fixed-rate loan, I feel I have been fraudulently induced to continue paying on the property with the expectation that if we starved for 90 days things would get better and we could keep our home. My research indicates that loan modifications DO involved changes from adjustable to fixed and changes to interest rates. What should I do? Thank you.
    Reply to this

    1. 8/2/2007 8:17 AM Moe wrote:Hello Betty!Unfortunately when dealing with loss mitigation and in this case “The MOD Squad”, the more you show that you can’t make payments or repayments then they will work with you. I know it’s completely frustrating but remember their job is to protect their investors before you. Sad but true.In my experience when someone can make payments such as you did, they assume you will be able to in the future. If you were to remain late and couldn’t make payments then they probably would have modified it.My question to you is what is your income and how much total debt do you have, including your mortgage? If your debt to income ratios are way off meaning they are above 50%.(debt compared to income) then I think I could help or advise you what to do.

      Is your ARM adjusting yet?

      You can reach me at 951-271-6283. If you would like to talk on the phone and I’ll see what I can do to help.

      Don’t give up and fight back!

      Best Regards,

      Maurice

    2. 8/2/2007 7:32 AM Betty wrote:
      I called the EMC Mod Squad in May – I was behind. They requested 3 payments be made on time. Payments requested ($3,550/month) were $600 a month higher than my normal payment. After 3 timely payments I would be contacted by the loan modification program and, although they couldn’t promise what the new interest rate would be, loan modifications were currently coming in around 5% and I would get a fixed rate loan. Loan modification department called me this week. No fixed rate, no change in ARM interest rate or adjustment periods. They are just tacking the late fees and past due payments to the end of the loan and raising my payments by $200 a month. After initially talking to 2 individuals at the “Mod Squad,” both of whom indicated I would end up with a fixed-rate loan, I feel I have been fraudulently induced to continue paying on the property with the expectation that if we starved for 90 days things would get better and we could keep our home. My research indicates that loan modifications DO involved changes from adjustable to fixed and changes to interest rates. What should I do? Thank you.
      Reply to this

      1. 8/2/2007 8:17 AM Moe wrote:Hello Betty!Unfortunately when dealing with loss mitigation and in this case “The MOD Squad”, the more you show that you can’t make payments or repayments then they will work with you. I know it’s completely frustrating but remember their job is to protect their investors before you. Sad but true.In my experience when someone can make payments such as you did, they assume you will be able to in the future. If you were to remain late and couldn’t make payments then they probably would have modified it.My question to you is what is your income and how much total debt do you have, including your mortgage? If your debt to income ratios are way off meaning they are above 50%.(debt compared to income) then I think I could help or advise you what to do.

        Is your ARM adjusting yet?

        You can reach me at 951-271-6283. If you would like to talk on the phone and I’ll see what I can do to help.

        Don’t give up and fight back!

        Best Regards,

        Maurice

      3. 7/26/2007 12:11 AM Lorre Hopkins wrote:
        My husband called the Hope Line to see what they offered for help to avoid foreclosure and was told he didn’t qualify to refinance our loan because of our payment history. We were instructed to make our payments for a few months and call back and then maybe they could help us. It seems like it would be cheaper to help us refinace our loan than to take it back and try to sell it. I guess they have been in the business of jerking people around for so long that it’s hard to actually offer help now.
        Reply to this

        1. 7/26/2007 7:18 AM Moe wrote:
          Hello Lorre!There seems to be people that work in these departments that sometimes give out information that is not correct and it’s frustrating. That’s why I am trying to get this information to people so they know how to deal with these banks and their loss mitigation departments. In this case it’s Countrywide’s HOPE department which handles loan modifications.

          Is your loan adjusting or did you just have a hardship that caused you to be late on payments?

          Let me know and I can guide you to the best way to handle this and get the “right information” so you can get the help you need.

          Best Regards,

          Moe
          Reply to this

          1. 7/30/2007 11:32 AM Mary wrote:
            hello I really need information for a loan workout. Can you provide this to us thank you
            Reply to this

            1. 7/30/2007 1:22 PM Moe wrote:Hi Mary!I would love to help you in any way I can. I will email you my information and please do the same.Many people are having difficulties in dealing with their lender and sometimes it’s best to have a professional loan workout specialist handle the negotiation, when other attempts have failed.Best Regards,

              Moe

              Reply to this

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Tagged as: Loan Modification, loan modification attorney, loan modification service, Moe Bedard, mortgage modification

{ 40 comments… read them below or add one }

1 Shirl August 5, 2007 at 8:07 pm

Plz. help. I have a client who wants to sell her home. She has a 1st and 2nd with country wide. This home is a rental home, she is not late on any payments. However this may not be the case once the lease is up in a few months. her combined interest rate is about 20%. She has a negative cash flow because she has to make the difference of payment from her pocket. She wants to list the property with me. The CMA doesn’t support what she needs to sell the property for. I was told I can’t call and ask countrywide for a discount value. If I did this now this would be treated as a short sale. She would not qualify because she is not behind in payments. Is it possible I can ask for a loan modification. list her house as owner financing to get cash she needs.

2 Shirl August 5, 2007 at 8:15 pm

Plz. help. I have a client who wants to sell her home. She has a 1st and 2nd with country wide. This home is a rental home, she is not late on any payments. However this may not be the case once the lease is up in a few months. her combined interest rate is about 20%. She has a negative cash flow because she has to make the difference of payment from her pocket. She wants to list the property with me. The CMA doesn’t support what she needs to sell the property for. I was told I can’t call and ask countrywide for a discount value. If I did this now this would be treated as a short sale. She would not qualify because she is not behind in payments. Is it possible I can ask for a loan modification. list her house as owner financing to get cash she needs.

3 Moe August 5, 2007 at 9:24 pm

Hi Shirl!

This would be considered a short sale and most lenders will not consider any type of negotiations until she is late. Short sales and loan modifications are used as part of the loss mitigation process. Right now they would see no reason why they would need to work with someone who “on paper” is fine.

You could sell the property and she can remain on title. This is non as a “Wrap Around Mortgage”. However, if the lender finds out then they can call the loan due.

Your client needs to understand that if she is upside down then there is no cash in the property. She has no equity to tap and she is not in a good position to do anything to be honest.

Good Luck!

4 Catherine August 6, 2007 at 11:22 pm

Hi,
I want to thank you for sharing this information with us. My ARM kicks in next month and no one will refinance me. As I type this, I’m on the phone (on hold) with Country Wide’s workout department. I will try to apply the tips you’ve provided when dealing with the loan negotiators. Thank you again for caring about people like me in this horrible situation.

5 Moe August 7, 2007 at 1:12 am

Hi Catherine!

I’m glad to be of service to you. I wish you the best and please come back and let us know what happened.

Regards,

Moe

6 Steve August 8, 2007 at 7:30 pm

Hello Oscar,

I am in your exact same situation with HSBC. I have been trying to contact them only to get the run-around and have been unsuccessful with trying to reach a live representative to discuss my situation and to try negotiate a solution. Please let me know if you have had any luck with HSBC and what your outcome has been with trying to work a loan modification w/them. Thank you.

Steve

7 Moe August 8, 2007 at 7:37 pm

Thanks for stopping by Steve and letting us know your story!

You definitely need thick skin and patience to deal with HSBC’s loss mitigation department. You need to get a live person on the phone and be as nica as possible. And tell them your situation and ask them if you can at least apply for a loan modification and that you want to work with them. They “HAVE TO” forward you a loan workout package at the very least.

Remember to get names, employees id’s etc. and keep very detailed notes.

Best of Luck to You Steve!

8 CeCe August 12, 2007 at 12:55 am

I received a call from AMC’s Home Retention program. How do I go about handling them when I call them back on Monday? I want to make sure that I can qualify for a loan modification and that they will find it beneficial to allow me to modify the loan instead of foreclosing on my home.

9 Kelly October 14, 2007 at 6:31 pm

Hi Moe-

I thought I was alone is this mortgage battle, our mortage payments have went from 800.00 to 1100.00 we cannot afford that type of mortgage, I tried to work out payment arrangements with AMC but they will not work anything out with me! I found your site and I am learning about Loan Modifications……… this information could not have came at a better time! Kelly

10 Moe October 14, 2007 at 6:52 pm

Great! I’m glad you found it and I hope it helps you. Please be sure to check out my forum also at http://www.LoanSafe.org I wish you the best and let me know if you need any advice or help!

11 Rodger October 22, 2007 at 8:36 pm

In order to get a short sale do you have to be behind in your payments? My ARM keeps adjusting and I’ve kept up with the payments, however, I don’t know how long I can do this. I want to put my house on the market but it won’t sell for full value due to the down turn in the market. All the post I’ve read make it sound like I have to be behind in my payment to be considered for a ’short sale’. Is this accurate??

12 Moe October 22, 2007 at 10:29 pm

You do not have to be late to negotiate a short sale. You just need a good agent to handle it for you that can deal with your lender. Make sure they have a track record doing this.

Good luck!

13 Art October 26, 2007 at 7:10 pm

Moe, why will a lender do this? Aren’t they buried now with those that are delinquent and or in default? It seems to me the borrowers would still have to prove insolvency otherwise how will a “a good agent…handle it…that can deal with your lender”?

14 Moe October 27, 2007 at 4:39 pm

Lenders will cooperate in short sales. The cooperation is hit and miss and there is NO guarantee. There is no uniformity, rhyme or reason with any loss mit department. A good agent can act as a go between to handle the difficult task of negotiating a short sale. However, I feel ALL homeowners should seek proper legal representation before they do anything. Often, the attorney can use the law to assist a homeowner, when an agent might not be able to or be aware of the laws that protect homeowners.

15 David November 9, 2007 at 1:48 am

I own 4 rental properties in Akron, OH all with CITI. My tenants have stopped paying there rents and I can not pay the payments without them paying me. All tenants have had some type of hardship and have just started paying rents. CITI now says that they will not accept a monthly payment unless I pay all payments due. I have had them listed with a Realtor for 4 months now and cant get an offer on any of them. I have worked out a verbal short sail agreement with CITI. What can I do before they go into foreclosure and how can I protect my personal property from being affected with this entire mess.. Please help with some advice of how to deal with the bank….Please email me with any help you may have.

16 Karen December 3, 2007 at 3:30 pm

Hi Moe,

I’m in the opposite boat right now with regard to a short sale. I have been working with Countrywide since April 20th trying to purchase a home as a short sale.

I made a committment to a friend that I would do this because he was walking away from the home. At the time I faxed my offer the auction date on the house was only 10 days away. I thought the situation would resolved in only a matter of a few days or weeks.

Now after two postponed auctions, one cancelled auction, 2 appraisals and seven months, Countrywide is saying they want the full amount owed, (which covers the 1st and 2nd mortgage and attorney fees). The full amount owed is more than $200k above the appraised value of the house.

Should I get an attorney? I thought we were almost there but the counter-offer they want is something no-one will pay.

17 BP December 24, 2007 at 3:04 am

I am a broker and multipe home owner. I have done a short sale and I wouldn’t recommend it for two reasons. The difference between what your home is sold for and what the true balance is …… is taxable income and you will have to pay income tax on it just as you worked for that money, and in today’s market it is usually 50,000 plus which is a HUGE hit!! Also a short sale will still be questioned on future loans when you try to buy a house just as a foreclosure would, and its about the same hit on your credit score as a foreclosure.

18 sean January 9, 2008 at 3:13 pm

That is not necessarily true.

I have helped dozens of borrowers arrange short-sales, all over the country, and it is very rare for a lender to even report it as income to the IRS.

Even if they do report it, there are guidelines set up by the IRS just for this situation, so that you do not have to pay tax on a forgiven debt during an insolvency.

I am not a tax accountant or lawyer, but I have seen this play out many times.

19 PJ January 15, 2008 at 3:18 pm

Does anyone know for certain what effects a short sale has on your credit if you have remained current until the sale and what effect a foreclosure has on your credit

20 Michael January 19, 2008 at 7:16 pm

Actually, I believe the IRS just recently changed the tax laws and you no longer need pay income tax on the deficiency.
As well, I have negotiated 4 short sales in the past 5 months. Two with Countrywide. Each with Countrywide has taken at least 10-12 weeks for approval. Make sure your buys and sellers are prepared for this.

Cheers

21 Michael January 19, 2008 at 7:19 pm

PJ, I don’t know exactly what a short sale looks like on credit however I will in about 30 days or so. I had a client, 778 mid score who just completed a short sale and he has agreed to let me take a look at his credit in a month or so to see the effects. I’ll post my findings if someone hasn’t responded by then.

22 Heather January 21, 2008 at 2:53 pm

PJ – as far as the scoring I’m not sure but the lender code on credit will show up as settled for less than amount owed. It doesn’t show lates or anything and doesn’t report as a collection, but we ( underwriters) know what that is and even though it’s not an actual foreclosure, we still look at is as a loss because the full amount was not recovered…also goes with looking at the borrowers “demonstrating a willingness to pay”. As an underwriter if it reported in the last 3 years ( basic foreclosure rules ) I would most likely find another reason not to do the loan. There isn’t a guideline that I know of that addresses short sales, like there is for foreclosures and forebearance agreements ( which by the way are looked at in the subprime world as BK’s) so the loan couldn’t be turned down for having a short sale showing up on credit. Hope that helps!

23 d January 22, 2008 at 4:29 pm

I have had experience with a short sale ( two in one year, one in Jan 2007 and the other in Aug 2007). Basically, I think the missed payments made a good argument for Short sale request along with the other circumstances (mostly divorce) and market conditions. I had excellent credit 720 (summer 2006) prior to my real estate deboggle and divorce. As of Jan 2008, I have 620 median. All other A1 creditors (Plat AMEX, Citibank, for ex) all continued to be paid on time and in Jan 08 mediam was 640….and I anticipate once credit cards are pd off soon credit score will be 715 by the end of the year, Dec 2008. Countrywide home loans told me i could be approved for another home loan at 18 month, reasonable interest rate (under 7%) , if NO CC bills, with income @ 90,000, 10-20 down, no lates, and a savings cushion—money being put away for atleast 9 months. So, really, I think score goes down about 100 points…but, if everything continues to be pd on time and no inquiries and no accumulation of debts…..things would look very positive. AND BEST OF ALL —NOW NO TAX IMPLICATIONS well until 2010! I hope this helps

24 david January 22, 2008 at 7:46 pm

Anyone have success with HSBC working short sells and having them forgive the balance debt.

25 Allison January 26, 2008 at 12:40 am

I am not sure if this is the best blog to try but I will try anything at this point. My husband and I are both active duty military and being transferred (against our will) to Hawaii. Our house is currently on the market as a short sale, with no offers in this market. Plus I do not think our realtor is doing everything he can to get our house sold. Our issue is not that we cannot make the payment, our issue is that we cannot live in Hawaii and make a house payment here in CA. I have been hearing things about loan modifications to get your payments lower, if you are NOT facing foreclosure will the banks still talk to you about a modification?

26 Tom January 26, 2008 at 1:27 am

Allison,

I’m in the same boat, try the homeowners forum at http://www.loansafe.org

There are plenty of folks there that can help you – read over some of the threads and find a case much like your own, or just post your own story. Much will depend on the terms and type of your loan and how far off you are from covering the mortgage via collected rents. If you’re in about the same position as I am – that isn’t practical. But the mods, etc. are worth looking into if you qualify.

Best of luck to you.

Tom

27 Dan March 17, 2008 at 5:37 pm

I did a short sell on my house back in May of 2006 which the house was financed with a FHA Loan,,now I am trying to purchase another house and the only thing my credit score will qualify me for is a FHA Loan but, FHA has a red tag on my SSN # meaning I cannot be approved for a FHA loan that I will have to let my score build up to a 650-680 to be approved for a 100 percent loan, do anyone know how long FHA will have a alert on me (RED FLAG) for me to later try for another FHA loan. Every lender I have tried turned me down not cause of my credit score but because FHA shows I did a Short Sale…

28 Tom March 17, 2008 at 10:46 pm

Now probably isn’t the best time to get a 100% home loan. If I were a lender, I wouldn’t approve it – just being honest. Not sure of the specific requirement though, you can try the homeowner’s forum at http://www.loansafe.org – you may be able to get some direction from the folks there.

29 d March 18, 2008 at 10:10 am

what gets me is what is the point of doing the short sale if the punishment is same as walking away from the loan (foreclosure). Short sales are not for the faint of heart and they are alot of work.

30 Jack April 15, 2008 at 1:13 am

Can you do a short sale to yourself?

31 d May 14, 2008 at 1:57 pm

you will have to negotiate with the bank to get approved for a short sale.

32 joseph goldstein May 16, 2008 at 2:17 pm

when I found an agent to attempt to represent me on a short sale I was informed that I would have to pay, up front, a non-refundable short sale fee of $275 plus a remodification fee (whatever that means) of $350. This means a layout of $625, non-refundable, for a best-efforts job. Is this an industry standard, or is it reasonable? Obviously this is a lot of money for someone to pay when he is also in a foreclosure situation.

33 Jenna May 19, 2008 at 4:28 pm

I am moving out of state and so our house is up for a short sale. Our realtor who specializes in short sales told us that his fees are paid by the bank, so I wouldn’t trust anyone who makes you pay them. Obviously you are in a hard situation, if you can’t pay your mortgage, how can you pay a company to do a short sale.
Funny part is our lender FREEMONT LOAN AND INVESTMENT knew we were going to do a short sale and they just sold our loan. How easy for them.
Anyways, if we get no offers soon, we are just going to file bankruptcy and put this behind us.

And NO, they can not report the difference between a short sale to the IRS as income. Bush just passed a law this year that prohibts them from doing it. He says you are already going to face a foreclosure or banko how can the federal government hit you now with more fees that you can’t pay. I thnk this was only good until 2009 so better get on it!

34 d May 20, 2008 at 9:31 am

I had a real estate agent, but, I was not changed any fees like the one stated above. I worked out the short sale and the money issues with the two lien holders myself. Then the senior agent on the deal came in at the last minute to influence the deal and finalize all numbers. So, I don’t think you should have to pay for fees to do the short sale.

35 d May 20, 2008 at 9:34 am

ditto…to the note on tax implications. You will not have to pay money on the shorted amount. Yes, you should try to find a real estate agent who specializes in short sales and who is well versed in the area. You can inform yourself by doing your research via internet. Just remember: The BPO drives the banks decision to accept the short sale.

36 Kim June 3, 2008 at 10:34 pm

I was just curious if Michael or anyone had an update on how bad your credit get hurt by doing a short sale when you have not missed any payments and are current up until the sale? Michael blogged about a client that had a 778 score in January and was going to follow up. I was curious. My score is around 790 and I just had a short sale accepted on one of my investment properties and have been told by credit repair specialists I can expect a 10-50 point drop and the bank tells me about a 100-150 point drop. I have no debt, make good money, and no lates ever. Any thoughts?

37 d June 5, 2008 at 10:25 am

Kim:

You can expect about 80-90 point drop. I had two short sales one in Jan 2007 other in August 2007. My mid score was around 690/700 and mid dropped to low 580. Currently mid at 680. Hope this helps. BUT, DURING SHORT NEGOTIATIONS EVERYTHING EXCEPT MORTGAGE WAS PAID ON-TIME.

38 Cynthia Villarreal June 18, 2008 at 9:13 am

Hello, I have been trying to work with country wide for quite sometime now for some sort of help in modifying my first loan. I am in a sub-prime 80/20 loan at this time with my first at the point of adjusting July 2008. They give me the runaround and say value is too low….nothing thay can do. On both of my loans I am current. Someone suggested a short sale. I was told to stop making the payments and start the procedure. My question is: Is it better to stop making payments, or to continue?

39 Carrie June 18, 2008 at 10:35 am

Cynthia,
First & foremost you are NOT alone !!!!
There are many in your same situation, I highly recommend that you check out http://www.loansafe.org
but exactly: http://www.loansafe.org/forum/countrywide-home-loans-tell-us-your-countrywide-story/

These are people like you and me that have dealt with or are dealing with CountryWide.

GOOD LUCK !!!!!!!

40 d June 19, 2008 at 11:27 am

I was not dealing with Countrywide. But, the fact that payments were starting to be late, I think helped my case. Although, I know people say you can broker the deal even with on-time payments, my mortgage company would not listen to anything until payments started to be late and I had a contract in hand. I got really lucky set my own price and got a contract within 7 days after having house on market for 1 year.

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