Below is one of the most well written articles on “How to Get a Successful Loan Modification that I have ever read. It was authored by a good friend and one of the greatest people I know, Peter Miller of OurBroker.com and ReatyTimes.com. Great job Peter!
By Peter Miller
Steps To Take
As you look at loan modification options you can see that loan owners logically do not want to make such arrangements if they can be avoided and they are not required to modify loans. Thus, if you want a loan modification, if you want to avoid foreclosure, YOU must make the first move.
What should you do? The first step is to analyze your financial situation,
- What percentage of your gross income (your income before tax deductions) is now devoted to housing costs, meaning mortgage principal, interest, taxes and insurance — PITI.
- How much could you pay each month if PITI was limited to 38 percent of your gross income?
- How much could you pay each month if PITI was limited to 31 percent of your gross income? This is an important question because the FDIC has been using a 31-percent benchmark when modifying loans made by IndyMac, the lender taken over by the FDIC in 2008. The 31-percent standard may well spread to other programs.
- What are your assets? Include such items as savings accounts, IRAs, other retirement accounts, certificates of deposit, stock, bonds, vehicles, other real estate. Be sure to include account numbers, the date when valued, contact information for the account holder such as a brokerage or bank, balances and required payments.
Please read more from Peter Miller from OurBroker.com
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