Comments on: Loan Modification Myths and Facts http://loanworkout.org/2008/07/loan-modification-myths-and-facts/ Loan Modification & Home Loan News Fri, 20 Nov 2009 12:55:43 -0700 http://wordpress.org/?v=2.8.6 hourly 1 By: Mr. Sharaf http://loanworkout.org/2008/07/loan-modification-myths-and-facts/#comment-17506 Mr. Sharaf Mon, 19 Oct 2009 06:27:33 +0000 http://loanworkout.org/?p=611#comment-17506 Exceptional feedback CJL and this is largely what we have determined to be accurate when dealing with the lenders or servicers. Thank you for the verification and we'll remain open to additional nuggets of wisdom that you may share. Best regards, Mr. Sharaf Exceptional feedback CJL and this is largely what we have determined to be accurate when dealing with the lenders or servicers. Thank you for the verification and we’ll remain open to additional nuggets of wisdom that you may share.

Best regards,

Mr. Sharaf

]]> By: cjl http://loanworkout.org/2008/07/loan-modification-myths-and-facts/#comment-17490 cjl Sat, 17 Oct 2009 20:50:12 +0000 http://loanworkout.org/?p=611#comment-17490 I do loss mitigation case processing/underwriting for a living. Most lenders have forms on their websites along with lists of the documents they require to assess the situation. It is extremely important to get everything they request into them in one financial package. Until the lender has all the information it requests the case will not be assigned to an analyst to assess. So if you get a letter requesting missing documents get them in ASAP because your file is not moving until you do. This is often why it takes so long to see results. Gather everything the lender asks for and get it to them as quickly as possible. Your home depends on it! Send all documents by a trackable delivery method such as FedEx UPS, or Certified mail. You want a signature from someone at the lenders when they recieve the package. Likewise if you send any money send it in a verifiable form such as Western Union Quick Collect. It's a $12.99 flat fee and you can track it. I've had lenders deny receiving agreements or funds by the due dates and all I had to do was go online and verify that the agreement was recieved, what day, what time, and who accepted it. You call the lender with that information to see if maybe they cooperate a little better then. They are waiting for you to make a mistake so they have a reason to deny you so you have to stay on top of what is going on. In most states 4 months is the point where the lender considers the loan far enough in default to file for a foreclsure hearing. At this point they will no longer accept any payments from you. This when you start saving as much as you can because a down payment is going to be required to stop a sale date if it comes to that. Sale dates can be put on the house anytime after if goes into foreclosure. Each state has their own time frame. In Texas, homes in foreclosure are auctioned off the first Tuesday of each month. In California and New York I've seen people live in homes for as many as 30 months before a Trustee Sale Date is set. Depending on how much you are in default, the down payment or "contribution" amount could be from 1 full mortgage payment to 30-50% of what is owed. Once you reach the one year mark the lenders generally want 50%. The lender will not stop with the collections efforts until they have some money from you, so don't answer the phone, but do read your mail. That way you won't have to deal with the collections Rep's. You have enough stress in your life and these people can be brutal as they get a commission for each person that they harass into making a payment. It's much easier to read what they have to say and then add it to the pile of paperwork that you are saving during this whole ordeal, than it is to take the kind of obuse collections is going to dish out. As a third party I make sure that the documents get faxed into the lender. Then 3-5 business days later I call to verify that the fax was recieved and that they got all the pages. Then I call weekly to biweekly to get updates and see if there is anything else that they need to keep the process moving. I keep all faxed documents, fax cover sheets and fax confirmation sheets clipped together. I keep written notes along with all corespondence from the lender. Your third party should be taking care of all this for you and keeping you up to date with what is going on but sometimes third parties don't want you to know some things because if you could do it yourself you wouldn't be paying them to do it for you. But they should be earning whatever you are paying them. I do this work because I need to make a living somehow but I really do enjoy helping people. So hope this helped you. I do loss mitigation case processing/underwriting for a living. Most lenders have forms on their websites along with lists of the documents they require to assess the situation.
It is extremely important to get everything they request into them in one financial package. Until the lender has all the information it requests the case will not be assigned to an analyst to assess. So if you get a letter requesting missing documents get them in ASAP because your file is not moving until you do. This is often why it takes so long to see results.
Gather everything the lender asks for and get it to them as quickly as possible. Your home depends on it!
Send all documents by a trackable delivery method such as FedEx UPS, or Certified mail. You want a signature from someone at the lenders when they recieve the package. Likewise if you send any money send it in a verifiable form such as Western Union Quick Collect. It’s a $12.99 flat fee and you can track it. I’ve had lenders deny receiving agreements or funds by the due dates and all I had to do was go online and verify that the agreement was recieved, what day, what time, and who accepted it. You call the lender with that information to see if maybe they cooperate a little better then. They are waiting for you to make a mistake so they have a reason to deny you so you have to stay on top of what is going on.
In most states 4 months is the point where the lender considers the loan far enough in default to file for a foreclsure hearing. At this point they will no longer accept any payments from you. This when you start saving as much as you can because a down payment is going to be required to stop a sale date if it comes to that.
Sale dates can be put on the house anytime after if goes into foreclosure. Each state has their own time frame. In Texas, homes in foreclosure are auctioned off the first Tuesday of each month. In California and New York I’ve seen people live in homes for as many as 30 months before a Trustee Sale Date is set.
Depending on how much you are in default, the down payment or “contribution” amount could be from 1 full mortgage payment to 30-50% of what is owed. Once you reach the one year mark the lenders generally want 50%.
The lender will not stop with the collections efforts until they have some money from you, so don’t answer the phone, but do read your mail. That way you won’t have to deal with the collections Rep’s. You have enough stress in your life and these people can be brutal as they get a commission for each person that they harass into making a payment. It’s much easier to read what they have to say and then add it to the pile of paperwork that you are saving during this whole ordeal, than it is to take the kind of obuse collections is going to dish out.
As a third party I make sure that the documents get faxed into the lender. Then 3-5 business days later I call to verify that the fax was recieved and that they got all the pages. Then I call weekly to biweekly to get updates and see if there is anything else that they need to keep the process moving. I keep all faxed documents, fax cover sheets and fax confirmation sheets clipped together. I keep written notes along with all corespondence from the lender.
Your third party should be taking care of all this for you and keeping you up to date with what is going on but sometimes third parties don’t want you to know some things because if you could do it yourself you wouldn’t be paying them to do it for you. But they should be earning whatever you are paying them.
I do this work because I need to make a living somehow but I really do enjoy helping people. So hope this helped you.

]]> By: Lis http://loanworkout.org/2008/07/loan-modification-myths-and-facts/#comment-17474 Lis Sat, 17 Oct 2009 01:00:51 +0000 http://loanworkout.org/?p=611#comment-17474 Hello, we are in the process of applying for a home load modification. Its been 4 mths since we have defaulted on our load and this week we received a letter from WAMU/CHASE stating if the payments are not received by 11/4, our house can be foreclosed. We have submitted requested documents repeatedly to WAMU/CHASE via a 3rd party, but to very little avail. Ive been told its is normal to receive foreclosed letters during this process. Is this true? We are very scared of losing our home, can someone suggest what we should do next? Thanks Hello, we are in the process of applying for a home load modification. Its been 4 mths since we have defaulted on our load and this week we received a letter from WAMU/CHASE stating if the payments are not received by 11/4, our house can be foreclosed. We have submitted requested documents repeatedly to WAMU/CHASE via a 3rd party, but to very little avail. Ive been told its is normal to receive foreclosed letters during this process. Is this true? We are very scared of losing our home, can someone suggest what we should do next? Thanks

]]> By: carolyn berrian http://loanworkout.org/2008/07/loan-modification-myths-and-facts/#comment-17426 carolyn berrian Tue, 13 Oct 2009 20:48:11 +0000 http://loanworkout.org/?p=611#comment-17426 I HAVE EXPERIENCED BEING DRIVEN IN CIRCLES BY CHASE REPS. GIVEN MANY NUMBERS THAT ALL LEAD YOU BACK TO ONE PLACE, COLLECTIONS. I GOT SO FRUSTRATED THAT I ALMOST GAVE UP. I FINALLY GOT A TRIAL MODIFICTION FOR 3MONTHS, BUT NO WORD ON WHETHER IT WILL BE PERMANANT. I HAVE BEEN TOLD TO FAX INFO IN, INWHICH LATER TOLD TO REFAX OVER AND OVER BECAUSE THEY STILL DON'T HAVE ALL DOCUMENTS, EVEN WHEN THEY WERE ALSO SENT CERTIFIED AND SIGNED FOR. I'M NOW BEING TOLD TO FAX AGAIN THE SAME REQUIRED DOCUMENTS THAT THEY STILL DON'T HAVE. I GOT ALL 3 MONTHS PAID BY THE 1ST BY THE SKIN OF MY TEETH, BECAUSE I ARRANGED THEM TO BE DEBITED FROM MY ACCOUNT ON THE 1ST. SOMEONE IN THE COMPANY WAS CANCELLING THE SCHEDULED DEBITS. I HAD TO CALL EACH MONTH AND PHONE PAYMENTS TO ASSURE THE PAYMENTS WERE RECEIVED.THIS IS THE 4TH MONTH OF TRIAL AND MOD PAYMENT WAS MADE. I FEEL I WAS SET UP TO FAIL. NOW THEY SAY THEY ARE GIVING ME AN EXTENTION BECAUSE OF OBAMA AND ARE GIVING ME ANOTHER CHANCE TO GET ALL DOUMENTS IN. IF NOT RECEIVED BY END OF EXTENTION, I WOULD NOT BE CONSIDERED FOR PERMANENT MOD. ALL THE WHILE LATE FEES ARE ADDING UP ON STATEMENTS THE AMOUNT OWED IS INCREASING AND BEING REPORTED TO CREDIT BUREAU. I FEAR THEY ARE JUST STALLING TO APPEAR IN COMPLIANCE WITH THE HOME AFFORDABLE PLAN. I FEEL I'M BEING SET UP TO FAIL. I FEAR THEY WILL TAKE MY HOUSE ANYWAY. WHAT ELSE IS THERE FOR ME TO DO? I HAVE EXPERIENCED BEING DRIVEN IN CIRCLES BY CHASE REPS. GIVEN MANY NUMBERS THAT ALL LEAD YOU BACK TO ONE PLACE, COLLECTIONS. I GOT SO FRUSTRATED THAT I ALMOST GAVE UP. I FINALLY GOT A TRIAL MODIFICTION FOR 3MONTHS, BUT NO WORD ON WHETHER IT WILL BE PERMANANT. I HAVE BEEN TOLD TO FAX INFO IN, INWHICH LATER TOLD TO REFAX OVER AND OVER BECAUSE THEY STILL DON’T HAVE ALL DOCUMENTS, EVEN WHEN THEY WERE ALSO SENT CERTIFIED AND SIGNED FOR. I’M NOW BEING TOLD TO FAX AGAIN THE SAME REQUIRED DOCUMENTS THAT THEY STILL DON’T HAVE. I GOT ALL 3 MONTHS PAID BY THE 1ST BY THE SKIN OF MY TEETH, BECAUSE I ARRANGED THEM TO BE DEBITED FROM MY ACCOUNT ON THE 1ST. SOMEONE IN THE COMPANY WAS CANCELLING THE SCHEDULED DEBITS. I HAD TO CALL EACH MONTH AND PHONE PAYMENTS TO ASSURE THE PAYMENTS WERE RECEIVED.THIS IS THE 4TH MONTH OF TRIAL AND MOD PAYMENT WAS MADE. I FEEL I WAS SET UP TO FAIL. NOW THEY SAY THEY ARE GIVING ME AN EXTENTION BECAUSE OF OBAMA AND ARE GIVING ME ANOTHER CHANCE TO GET ALL DOUMENTS IN. IF NOT RECEIVED BY END OF EXTENTION, I WOULD NOT BE CONSIDERED FOR PERMANENT MOD. ALL THE WHILE LATE FEES ARE ADDING UP ON STATEMENTS THE AMOUNT OWED IS INCREASING AND BEING REPORTED TO CREDIT BUREAU. I FEAR THEY ARE JUST STALLING TO APPEAR IN COMPLIANCE WITH THE HOME AFFORDABLE PLAN. I FEEL I’M BEING SET UP TO FAIL. I FEAR THEY WILL TAKE MY HOUSE ANYWAY. WHAT ELSE IS THERE FOR ME TO DO?

]]> By: adrienne http://loanworkout.org/2008/07/loan-modification-myths-and-facts/#comment-17410 adrienne Tue, 13 Oct 2009 09:35:46 +0000 http://loanworkout.org/?p=611#comment-17410 we are trying to get a modification on our loan and we have been since june.our mtg. company is citi financial and they keep telling us thay are waiting on our arm rate to be able to make this decision.what should we do while we are waiting for there respons??? we are trying to get a modification on our loan and we have been since
june.our mtg. company is citi financial and they keep telling us thay are waiting on our arm rate to be able to make this decision.what should we do while we are waiting for there respons???

]]> By: Mii Gwiich http://loanworkout.org/2008/07/loan-modification-myths-and-facts/#comment-17253 Mii Gwiich Tue, 06 Oct 2009 00:35:46 +0000 http://loanworkout.org/?p=611#comment-17253 Come on now Captain Petrov, let's place the blame directly on the shoulders of the people that caused this meltdown..... The governement! Cheap and easy money issued by the Fed, regulations that made giving "no-doc" or "liar loans" to people who could not pay them back, lender fears of being burried in investigations for alleged "red-lining", Fanny and Freddie buying up every piece of junk paper they can find, those same Fanny and Freddie loans being packaged and sold as mortgage backed securities (I buy into a investment guaranteed by the American tax payer to give a return too if had the money), etc. etc. The Fed Government made the rules and you want to blame the lenders for playing by them? Did you expect the lenders to take the moral high ground and say, "Sorry Mr Dodd, sorry Mr. Frank, but we are not going to make the loans that you expect us to. Accuse us of red-lining and shut us down if you must, but we cannot, in good conscience, make loans to people that do not have the ability to pay them back. It would not be fair to the American people whos tax dollars are insuring those loans."? Get real. If the government would never have gotten into the mtg business, this would never have happened. Lenders would NEVER have made such horrible loans if the government hadn't been preasuring them to do so. So let's stop whining about the "evil lenders" and start talking about how to get government out of our economic lives and let the free market regulate the activities of all sectors. Come on now Captain Petrov, let’s place the blame directly on the shoulders of the people that caused this meltdown….. The governement! Cheap and easy money issued by the Fed, regulations that made giving “no-doc” or “liar loans” to people who could not pay them back, lender fears of being burried in investigations for alleged “red-lining”, Fanny and Freddie buying up every piece of junk paper they can find, those same Fanny and Freddie loans being packaged and sold as mortgage backed securities (I buy into a investment guaranteed by the American tax payer to give a return too if had the money), etc. etc. The Fed Government made the rules and you want to blame the lenders for playing by them? Did you expect the lenders to take the moral high ground and say, “Sorry Mr Dodd, sorry Mr. Frank, but we are not going to make the loans that you expect us to. Accuse us of red-lining and shut us down if you must, but we cannot, in good conscience, make loans to people that do not have the ability to pay them back. It would not be fair to the American people whos tax dollars are insuring those loans.”? Get real. If the government would never have gotten into the mtg business, this would never have happened. Lenders would NEVER have made such horrible loans if the government hadn’t been preasuring them to do so. So let’s stop whining about the “evil lenders” and start talking about how to get government out of our economic lives and let the free market regulate the activities of all sectors.

]]> By: none of your business http://loanworkout.org/2008/07/loan-modification-myths-and-facts/#comment-17224 none of your business Sun, 04 Oct 2009 17:18:16 +0000 http://loanworkout.org/?p=611#comment-17224 all i have to say is that there is a lot of helpful info on this website, but some of the things that are said are just wrong. this is a numbers game, if your financials can suppport a MOD then you have a chance, but who ever reads this needs to understand, that the loan servicer and the customer are not the main parties, the loan servicer will obtain the borrowers info, and they will then go to the investor of who they are servicing for and present them with a off on behalf of the borrower, and unforntunately there are some investors that do not do MOD or have extremely strick guidlines that the serivcer has to follow, and no loan expert can force investors to do anything with there money(home loan)....... so who ever reads this just know that none of these thrid parties or attorney's can promise a MOD. and they are wrong for giving that as a guaranty. all i have to say is that there is a lot of helpful info on this website, but some of the things that are said are just wrong. this is a numbers game, if your financials can suppport a MOD then you have a chance, but who ever reads this needs to understand, that the loan servicer and the customer are not the main parties, the loan servicer will obtain the borrowers info, and they will then go to the investor of who they are servicing for and present them with a off on behalf of the borrower, and unforntunately there are some investors that do not do MOD or have extremely strick guidlines that the serivcer has to follow, and no loan expert can force investors to do anything with there money(home loan)……. so who ever reads this just know that none of these thrid parties or attorney’s can promise a MOD. and they are wrong for giving that as a guaranty.

]]> By: Franco http://loanworkout.org/2008/07/loan-modification-myths-and-facts/#comment-17133 Franco Thu, 01 Oct 2009 22:17:02 +0000 http://loanworkout.org/?p=611#comment-17133 Can anyone comment on Platinum Mortgage Services in California? Are they legit? Can anyone comment on Platinum Mortgage Services in California? Are they legit?

]]> By: Albit Caban VP- Pinnacle Morgage Solutions http://loanworkout.org/2008/07/loan-modification-myths-and-facts/#comment-17108 Albit Caban VP- Pinnacle Morgage Solutions Wed, 30 Sep 2009 18:20:29 +0000 http://loanworkout.org/?p=611#comment-17108 The common perception of the average consumer is that my lender does not want to take the loss by foreclosing on my property and that they want to work with me if I need financial help in modifying my loan. In most cases, nothing could be further from the truth! Most lenders, despite taking TARP money, have little interest in helping the average consumer and have hired an army of minions in their loss mitigation departments who will block you at every step and lose your paperwork in a focused attempt to dissuade all but the most tenacious and astute borrower. Additionally, they will push you to take your financial information so they may record and document it, mainly in an effort to disqualify you from a loan modification. To qualify for a loan modification, your financial situation (assets vs. liabilities) must fit into a narrowly defined box for your lender to consider you for a modification. You must have just enough income, but not too much. Your debt to income ratios must fit within certain guidelines, and these guidelines vary be lender and change all the time based on the Investors guidelines (the person or entity that actually owns your Mortgage Note as the bank is just the servicer in most cases). Your housing costs vs. your net income must be within certain limits as well. Giving your financials incorrectly or not within guidelines may permanently disqualify you for a loan modification, ending your chances for financial relief. It is in properly preparing your financials where Loan Modification companies in part earn their money! Beware! There are many non-qualified companies including debt settlement companies and former mortgage companies vying for your money, all claiming to help you with a loan modification. They promise you anything and tell you what you want to hear in regards to the outcome of your case without taking any financial information or doing any analysis of your situation. A reputable company will turn down close to 40% of the people seeking help as they will not fit within the lenders modification guidelines. A loan modification by definition is designed as temporary financial relief to help a borrower get through a documentable financial hardship such as job loss, income loss, divorce, medical issues, etc. It is not as give-away program just because you want a lower payment. A proposed payment to your lender is typically calculated by taking your net income and trying to fit it within the upper limits of your lenders underwriting guidelines. If you are being promised a new interest rate or a principal write down by a company, they are likely scamming you. Make sure the company takes a full financial profile before determining if they can help you. Make sure they are proposing a new payment within the lenders underwriting guidelines. In summary, never pay for loan modification services unless you are retaining an attorney who has at the very least taken your full financial profile before determining if they will take your case. If they are not interested enough to see if you qualify, they have little regard for the outcome of your case. Remember, it is still a negotiation process and ultimately it is up to the lender to decide if they will modify your loan. If you don’t fit within the financial guidelines of your lender, your chances of a successful outcome are slim. The common perception of the average consumer is that my lender does not want to take the loss by foreclosing on my property and that they want to work with me if I need financial help in modifying my loan. In most cases, nothing could be further from the truth! Most lenders, despite taking TARP money, have little interest in helping the average consumer and have hired an army of minions in their loss mitigation departments who will block you at every step and lose your paperwork in a focused attempt to dissuade all but the most tenacious and astute borrower. Additionally, they will push you to take your financial information so they may record and document it, mainly in an effort to disqualify you from a loan modification.
To qualify for a loan modification, your financial situation (assets vs. liabilities) must fit into a narrowly defined box for your lender to consider you for a modification. You must have just enough income, but not too much. Your debt to income ratios must fit within certain guidelines, and these guidelines vary be lender and change all the time based on the Investors guidelines (the person or entity that actually owns your Mortgage Note as the bank is just the servicer in most cases). Your housing costs vs. your net income must be within certain limits as well. Giving your financials incorrectly or not within guidelines may permanently disqualify you for a loan modification, ending your chances for financial relief. It is in properly preparing your financials where Loan Modification companies in part earn their money!

Beware! There are many non-qualified companies including debt settlement companies and former mortgage companies vying for your money, all claiming to help you with a loan modification. They promise you anything and tell you what you want to hear in regards to the outcome of your case without taking any financial information or doing any analysis of your situation. A reputable company will turn down close to 40% of the people seeking help as they will not fit within the lenders modification guidelines.
A loan modification by definition is designed as temporary financial relief to help a borrower get through a documentable financial hardship such as job loss, income loss, divorce, medical issues, etc. It is not as give-away program just because you want a lower payment. A proposed payment to your lender is typically calculated by taking your net income and trying to fit it within the upper limits of your lenders underwriting guidelines. If you are being promised a new interest rate or a principal write down by a company, they are likely scamming you. Make sure the company takes a full financial profile before determining if they can help you. Make sure they are proposing a new payment within the lenders underwriting guidelines.

In summary, never pay for loan modification services unless you are retaining an attorney who has at the very least taken your full financial profile before determining if they will take your case. If they are not interested enough to see if you qualify, they have little regard for the outcome of your case. Remember, it is still a negotiation process and ultimately it is up to the lender to decide if they will modify your loan. If you don’t fit within the financial guidelines of your lender, your chances of a successful outcome are slim.

]]> By: Barbara Jones http://loanworkout.org/2008/07/loan-modification-myths-and-facts/#comment-17024 Barbara Jones Mon, 28 Sep 2009 03:52:54 +0000 http://loanworkout.org/?p=611#comment-17024 I am in bad shape ,behind in mortgage,taxes and insurance. How did this happen to me ? tenants paying late everymonth since June.My property has a second that is automatically withdrawn from my checking account but the first is 2 months delinquent . Can i apply for HAMP ? I am in bad shape ,behind in mortgage,taxes and insurance. How did this happen to me ? tenants paying late everymonth since June.My property has a second that is automatically withdrawn from my checking account but the first is 2 months delinquent . Can i apply for HAMP ?

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