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Loan Workouts

U.S. Rep. Bill Delahunt is Co-sponsoring Bill to Give Bankruptcy Judges the Right to Modify Mortgages

by Moe Bedard

U.S. Rep. Bill Delahunt  is upset with uncooperative lenders and mortgage servicers and says he is co-sponsoring a bill to give bankruptcy judges the right modify mortgages for homeowners.

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Improving Terms on your Debt: Recent Loan Modification Programs

by Moe Bedard

If you’re having difficulty paying your existing home loan in the context of changes in your income or in the market generally, there are a number of options to consider. You should never assume that your only route out is to lose your home – there are a number of possible solutions to help you [...]

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FDIC’s Sheila Bair Criticizes the Federal Government for Failing to Protect Homeowners

by Moe Bedard

As I have reported here on LoanWorkout.org many times before, the FDIC’s Chairwoman, Sheila Bair, seems to be the only ”caring soul” in Washington that seems to have a true “grasp” of the mortgage and housing realities (nightmares) here on Main Street. 

Over the past year I have reported and complained that these bailouts, bills and so called initiatives have [...]

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FDIC Gives Indymac Pay Option ARM Borrowers Till Next Friday to Seek Mortgage Relief

by Moe Bedard

Paul Kielsel, an attorney and fellow blogger in Los Angeles, Ca. is reporting that the the FDIC is giving Indymac borrowers who have negative ammortization mortgages AKA Pay Option ARM’s till Friday October 24th to seek a loan modification or to take legal action against Indymac.

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Real Estate Short Sales the Right Way with Loan Safe

by Moe Bedard

By Moe Bedard
If you find yourself in a difficult real estate situation where your home and loan is upside-down, don’t fret, a short sale might just be the answer to help cure your mortgage woes. In today’s market, it is imperative that you take a step back from all of the noise to reflect upon [...]

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Bank of America Announces Nationwide Homeownership Retention Program for Countrywide Customers

by Moe Bedard

Nearly 400,000 Countrywide Borrowers Could Benefit After Program Launches December 1
Nearly 400,000 Countrywide Borrowers Could Benefit After Program Launches December 1
CALABASAS, Calif., Oct. 6 /PRNewswire/ — Bank of America today announced the creation of a proactive home retention program that will systematically modify troubled mortgages with up to $8.4 billion in interest rate and principal [...]

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Bailout: What’s in it for homeowners

by Moe Bedard

Sunday’s revised plan calls for the Treasury to work with loan servicers to stem the tide of foreclosures, but how that will happen remains unclear.
NEW YORK (CNNMoney.com) — The revised $700 billion bailout legislation unveiled Sunday calls for the Treasury Secretary to implement a plan to stem foreclosures and to work with servicers to modify [...]

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Provision to Alter Loans Is Sought

by Moe Bedard

A push by Democrats to include in the proposed Wall Street bailout new legislation that would allow U.S. judges to modify mortgages for people in bankruptcy potentially could save hundreds of thousands of homeowners from future foreclosure, judges and other legal experts say.
The provision is being demanded as part of an effort to make the [...]

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Will Congress Give the Courts Power to Modify Mortgages?

by Moe Bedard

Congress voted that primary residences would not be allowed to be modified when they rewrote the bankruptcy laws in 1978. I wonder who swayed that decision (banks maybe)? Bankruptcy judges already have the ability to modify the terms of other debt, including car loans and even 2nd homes, to help consumers with a reasonable payment [...]

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Will the Bailout Help Homeowners on Main Street?

by Moe Bedard

If US Treasury Secretary Paulson and President Bush have it their way, the world’s largest bail out will give the US Treasury what is essentially a blank check to do with it as they please. Meanwhile, the tax payers and the homeowners footing the bill will get nothing, nada, go straight to foreclosure because we’re too busy bailing out [...]

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Statement of Sheila C. Bair Chairman FDIC on A Review of Foreclosure Mitigation Efforts

by Moe Bedard

Applying workout procedures for troubled loans in a failed bank scenario is something the FDIC has been doing since the 1980s. Our experience has been that turning troubled loans into performing loans enhances overall value. In recent years, we have seen troubled loan portfolios yield about 32 percent of book value compared to our sales [...]

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U.S. Holds the Whip Hand in Modifying Mortgages

by Moe Bedard

For much of the last year, Washington officials have been pressing the mortgage industry to modify home loans and avoid foreclosures. Now, the extraordinary government intervention in Fannie Mae, Freddie Mac and a growing number of banks puts federal agencies in the powerful, and awkward, position of deciding which borrowers will receive help and who [...]

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Where’s the Wachovia Loan Modifications?

by Moe Bedard

Where’s the loan modifications Wachovia?
That’s what many homeowners are telling me daily and also your employees who seem readily available to tell us that Wachovia is not offering loan modifications at this time and to literally take a hike.
The San Francisco Gate came out with a story about Wachovia and there unwillingness to assist struggling homeowners today. I [...]

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Loan Modification Program for Distressed Indymac Mortgage Loans

by Moe Bedard

From the FDIC: IndyMac Federal Bank, FSB (“Indymac Federal”) will implement a new program to systematically modify troubled mortgages.
The program is designed to achieve affordable and sustainable mortgage payments for borrowers and increase the value of distressed mortgages by rehabilitating them into performing loans. This in turn will maximize value for the FDIC, as well [...]

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Governor Schwarzenegger Signs Legislation to Help Protect Homeowners from Foreclosure

by Moe Bedard

Governor Arnold Schwarzenegger today signed SB 1137 by Senate President pro Tem Don Perata (D-Oakland) which requires lenders to contact homeowners and explore restructuring options before initiating the foreclosure process. It will also provide tenants with double the amount of time now afforded to them to move from a foreclosed property and prevent California’s neighborhoods [...]

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Inside a Real Investor Discussion About Loan Modifications

by Moe Bedard

This post is courtesy of http://accruedint.blogspot.com . Thanks!

Anyone who follows the market and the complexities of our financial mess should be interested in what investors feel about loan modifications because essentially, it is the investors who have the final say in all of this. This is a behind the scenes look at what they are [...]

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Which is worse: Foreclosure or Bankruptcy?

by Moe Bedard

The single most important question consumers ask themselves during the present economic crisis: Is it better to lose your house to foreclosure or file for bankruptcy protection?
A foreclosure will remain on your credit report for 7 years, while a bankruptcy remains for 10 years. If you ever plan on getting any kind of loan, especially [...]

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Essential Tips When Applying for a Loan Modification

by Moe Bedard

A loan workout or loan modifcation is an agreement that is negotiated with your current lender that changes the terms of your current loan. Lenders are willing to negotiate when borrowers are facing financial difficulties and can’t obtain other financing alternatives. You must show the lender why it would be in the lender’s best interest [...]

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Can You Get a Loan Modification From Your Lender?

by Moe Bedard

The message to troubled homeowners has been: Call your lender. You may be able to work something out. Maybe you’ll get a loan modification? They will work with you, news reports say.
A survey by Moody’s found that most subprime-loan servicers this year had modified only about 1 percent of their adjustable-rate mortgages (ARMs) that had [...]

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House Bill Would Allow Bankruptcy Courts to Modify Mortgages

by Moe Bedard

This Bill right here would stop foreclosure for hundreds of thousands of homeowners and save them from their toxic mortgages that are eating them alive.
Under loan modifications, the lender and loan-servicing company change the mortgage terms to make them more affordable to the borrower. This can include lower interest rates and forgiving a portion of the [...]

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Countrywide to Outsource Loss Mitigation Efforts to India

by Moe Bedard

In another stellar business move by Countrywide, Mr. Mozilo announced as an effort to cut cost and increase the bottom line, they will be outsourcing loss mitigation efforts to call centers in India.
I found this in a LA Times article and have yet to verify if this is in fact true. If it is, then [...]

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The President and Banking Regulators Are Pushing for Loan Modifications

by Moe Bedard

Treasury Secretary Henry Paulson and Housing and Urban Development Secretary Alphonso Jackson were meeting with mortgage service company executives at the Treasury this morning. (My predictions of a massive loan modification campaign do not seem too far away) President Bush and banking regulators are pushing lenders and servicing companies to identify homeowners at risk of ‘reset [...]

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Attention Congress, Mr. President, American Homeowners Need Your Help!

by Moe Bedard

A Washington Post article came out today and arrived in my email inbox this morning. It caught my eye because of the title, “Why We Need a Housing Rescue“, by William H. Gross. The writer is founder and chief investment officer of PIMCO, the world’s largest bond mutual fund. This column was adapted from his September [...]

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Countrywide Hope Department Blues

by Moe Bedard

I would say that 90% of the calls and emails that I receive are from people that are having trouble in dealing with Countrywide’s HOPE Department. All I can say is that I understand exactly where they are coming from. If you need a loan modification, then be ready for a merry go round ride.
Countrywide [...]

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Will Further Rate Cuts or Massive Loan Modifications Fix This Foreclosure Mess?

by Moe Bedard

Ben Bernake, the Federal Reserve Chairman cut 50 basis points (one-half a percentage point) off of its discount rate — the rate it charges banks to borrow federal funds — from 6.25 percent down to 5.75 percent. The Fed has also pumped billions of dollars into the nation’s economy in the past week and is [...]

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Loan Workouts, Not Bailouts!

by Moe Bedard

I just read an article from Paul Krugman of the New York Times and I wanted to share it with my readers. I track all the news coming out daily in regards to the mortgage and housing crisis. Daily, all I hear is reports of forclosures up in Denver, Co., Stockton, Ca., etc. The reports [...]

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ASF Issues Guidelines for Loan Modifications. Is Anyone Listening?

by Moe Bedard

Back in June the American Securitization Forum (ASF) issued a statement of principles, recommendations and guidelines for the modification of subprime residential mortgage loans that are included in a securitization. This statement was put in place to help guide servicers and to establish some sort of structure and protocol of loan modification provisions that are included in securitization governing [...]

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Avoiding Foreclosure With a Short Sale

by Moe Bedard

Avoiding foreclosure with a short sale is starting to become very common. With the surge of delinquencies and defaults coupled with properties that are maxed out on loan to value have left lenders little options. It only makes sense to work with people and not foreclose on them.
A short sale is when the lender will accept [...]

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Avoiding Foreclosure with a Loan Workout

by Moe Bedard

Avoiding foreclosure with a loan workout is the best thing you can do to save your home. Many people do not know that their lender does not want to take their home and they would rather work with you to modify your loan. However, you will still have to qualify for a loan modification based on their loss [...]

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Is it Impossible to Get a Loan Modification and Avoid Foreclosure?

by Moe Bedard

I often get asked if it’s possible to obtain a loan modification and avoid foreclosure? The answer is a definite maybe. It depends on several factors because you have to qualify to do so and it’s not like qualifying for a mortgage. They are qualifying you to see if it’s worth taking your home or [...]

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Facing Foreclosure With Ameriquest

by Moe Bedard

Are you facing foreclosure with Ameriquest? You’re not alone in your plight and it seems like more and more people are in the same boat as you.
You need answers and you need help and I am here to give them to you free.
The first thing you need to do is call there loss mitigation department [...]

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Loan Modification with HSBC

by Moe Bedard

If you are looking for a loan modification or short sale with HSBC to avoid foreclosure, then you may be in luck. Recent reports and new articles indicate that they are taking an active role to help borrowers that are in ARM mortgages that have adjusted and they can no longer afford the payment.
Recently they [...]

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Countrywide Foreclosure

by Moe Bedard

If you are a borrower that is facing a Countrywide Foreclosure, there is help for you. You can try calling the loss mitigation and home retention department, its’ called Countrywide’s HOPE. They will work with borrowers that have had financial hardships or their ARM has adjusted and they can no longer afford the payments.
The best [...]

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What’s a Loan Workout Repayment Plan?

by Moe Bedard

The most common loan workout or loan modification is resolving a loan default is to work out a “Repayment Plan” which will let you pay a percentage down as a good faith (approx. 30-50%) repay part of the late fees each month, along with you regular monthly payment. This is the most widely accepted solution by [...]

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