Foreclosures Rise First Quarter 2009: Loan Modification Is A Solution!
Below is an article talking about how the foreclosure rate has surged in the first quarter of 2009. The temporary foreclosure halt of most major lenders, as well as Fannie and Freddie Mac at the end of last year is now over. More and more foreclosures are being filed and every homeowner in trouble of paying their mortgage payment is wanting to know whether or not the Obama “Making Homes Affordable” plan is going to help save their home! The stressful situation they are in is not uncommon and even though the government preaches to call the lender and work out a modification yourself sounds like the politically correct thing to say, it is not that easy to navigate the maze of automated phone systems and outsourced customer service centers that your lenders utilize. Getting professional help is a great option that way you can focus on making more money and spending time with your family and not worrying about negotiating with your lender(s)!
The Loan Modification Experts at adjustmyloan.com have negotiated hundreds of loan modifications and short sales for homeowners over the last few years. We are highly educated, loss mitigation specialists that have the training, systems, and energy to go after your lenders to get you the best loan terms possible. Trust, integrity, and honor are the core beliefs of our company and every one of our employees puts the customer’s needs first which is easy to see from the first conversation you have with our experts. We invite you to call us at 1-800-557-7573 and get a FREE LOAN MODIFICATION CONSULTATION from one of our loan mod consultants today.
The Following Article Was Taken From MSNBC.MSN.COM
Foreclosure actions surge in the first quarter
Upcoming big unknown: Will Obama mortgage relief help reverse trend?
WASHINGTON - The number of American households threatened with losing their homes grew 24 percent in the first three months of this year and is poised to rise further as major lenders restart foreclosures after a temporary break, according to data released Thursday.
The big unknown for the coming months, however, is President Barack Obama’s plan to help up to 9 million borrowers avoid foreclosure through refinanced mortgages or modified loans. The Obama administration expects its plans to make a big dent in the foreclosure crisis. But it remains to be seen whether the lending industry will fully embrace it, despite $75 billion in incentive payments.
The faltering economy is causing the housing crisis to spread. Nationwide, nearly 804,000 homes received at least one foreclosure-related notice from January through March, up from about 650,000 in the same time period a year earlier, according to RealtyTrac Inc., a foreclosure listing firm.
In March, more than 340,000 properties were affected, up 17 percent from February and 46 percent from a year earlier.
Foreclosures “came back with a vengeance” last month and are likely to keep rising, said Rick Sharga, RealtyTrac’s senior vice president for marketing.
Nearly 191,000 properties completed the foreclosure process and were repossessed by banks in the quarter. While the number was down 13 percent from the fourth quarter of last year, it is expected to rise through the summer and then possibly taper off.
Fannie Mae and Freddie Mac, the big mortgage finance companies, together with many banks had temporarily halted foreclosures in advance of Obama’s plan. Now armed with the details about which borrowers can qualify, the mortgage industry has begun foreclosing on ineligible borrowers.
The Treasury Department has signed contracts with six big loan servicing companies - including Citgroup, Wells Fargo and JPMorgan Chase. Many have already started processing loans as part of the government’s “Making Home Affordable” plan.
“We need to get the long-term solutions for these folks,” Shaun Donovan, Obama’s housing secretary, said in an interview.
In the coming months, Donovan said, there are still likely to be increased foreclosures, especially from vacant houses, second homes and those owned by speculators. None of those properties will qualify for a loan modification. However, he remained optimistic that overall foreclosures could start to decrease this summer.
But even industry executives who emphatically support the plan emphasize that it’s success isn’t guaranteed.
“The effectiveness of the plan overall obviously is going to depend on the level of industry participation,” said Paul Koches, general counsel of Ocwen Financial, which collects loan payments on subprime loans.
Many borrowers and consumer groups claim the modifications offered by the lending industry don’t do enough to help cash-strapped homeowners, despite more than a year of public prodding from regulators. Fewer than half of loan modifications made at the end of last year actually reduced borrowers’ payments by more than 10 percent, data released last month show.
Plus, the lending industry has been swamped by the unprecedented wave of calls from distressed borrowers. “You can’t wave a magic wand and make the loans suddenly modified,” Sharga said. “They’re all individual transactions.”
In RealtyTrac’s report, Nevada, Arizona, California and Florida had the nation’s top foreclosure rates. In Nevada, one in every 27 homes received a foreclosure filing, while the number was one in every 54 in Arizona. Rounding out the top 10 were Illinois, Michigan, Georgia, Idaho, Utah and Oregon.
President Obama In Mesa, Arizona To Unveil His Administrations Foreclosure Plan
President Obama was in Mesa, Arizona on Wednesday to discuss an aggressive “Stop Foreclosure Plan” his administration plans to put in place over the next few weeks. The plan essentially was broken down into two major parts with the finer details to be disclosed within two weeks.
The first program is to help 4-5 million struggling home owners with loans owned or guaranteed by Fannie Mae or Freddie Mac to help them refinance. AdjustMyLoan.com interpreted this as a way for upside down homeowners why were “playing by the rules” as Obama mentioned to get a guaranteed refinance to a set interest rate.
Does this mean homeowners who qualify for this solution will not need an appraisal? Are they going to refinance these homeowners to todays values or just reset the interest rate? Also, who is to set the interest rate? A government agency?
The second program is a Loan Modification Plan with government subsidies to lenders to reduce their monthly interest payments. Finally someone is speaking our language! Below are some bullet point how the plan will work:
Lenders who participate will be responsible for bringing down interest rates or doing principal balance reductions so the monthly mortgage payment is no more than 38% of pre-tax income.
After that the government would match the amount reduced by the lender to bring the payments down to 31% of their pre-tax income.
$1000 incentive for servicing agents (who collect fees for refinanced or delinquent mortgages) to work with qualified borrowers to modify loans. They will get $1000 for each loan they modify plus another $1000 per year for each year that homeowner remains current on their modified loan!
Homeowners who recieve this Loan Modification will recieve $1000 a year for five years off of the principal amount owed as long as they stay current! (HUGE)
Government money will be used to help homeowners avoid default all together by giving a $500 incentive to lenders and $1500 incentive to homeowners if a loan gets modified before the homeowner goes into default.
The final part of the plan would allow bankruptcy judges to “Cram Down” primary residences and complete forced loan modifications if a homeowners qualifies for bankruptcy protection. This would allow judges to lower interest rates, extend out the length of the loan, and reduce the principal amount owed (cram down) on the mortgage! (HUGE)
Currently homeowners who owe more than 80% of their homes worth have a difficulty refinancing or selling in today’s market. This plan should help about 9 million homeowners nationwide and cost about $75 billion dollars but will be well worth it if implemented correctly.
AdjustMyLoan.com is a national Loan Modification Company based out of Phoenix, Arizona that specializes in loan modifications and forbearance agreements. Our loan modification experts audit, package, propose, and negotiate loan modifications on our clients behalf. We offer FREE LOAN MODIFICATION CONSULTATIONS and never charge an upfront fee for our service! Call the loan modification experts at AdjustMyLoan.com today and get the professional help you deserve.
PROFESSIONAL LOAN MODIFICATION COMPANY ADJUSTMYLOAN.COM ADDS BILLBOARD ADVERTISING TO ITS MARKETING PORTFOLIO!
From Radio (KFNN tuesdays from 12-1pm), online video’s, AdjustMyLoan.com website’s, to LOAN MODIFICATION Billboards, AdjustMyLoan.com is truly a PROFESSIONAL LOAN MODIFICATION COMPANY that wants to earn your business. We spend thousands of dollars each month to spread the word that LOAN MODIFICATIONS can help you lower your monthly mortgage payment, AVOID FORECLOSURE, and keep you in your home! Our LOAN MODIFICATION EXPERTS can audit, package, propose, and negotiate a LOAN MODIFICATION on your behalf…AND WE DO NOT CHARGE YOU ANY EXPENSIVE UPFRONT RETAINER FEE’S!!!
BEWARE: THERE ARE MANY “FLY-BY-NIGHT” LOAN MODIFICATION FIRMS POPPING UP ALL OVER ARIZONA TRYING TO CHARGE YOU HUGE UPFRONT RETAINER FEE’S. THESE COMPANIES ARE NOTHING MORE THAN AMBULANCE CHASING ATTORNEY’S OR EX-LOAN OFFICERS THAT CANNOT HACK IT IN TODAYS REAL ESTATE MARKET! DO NOT GET STUCK PAYING THESE HUGE UPFRONT FEE’S WHEN YOU COULD CALL ADJUSTMYLOAN.COM AND GET BETTER SERVICE WITH NO UPFRONT FEES!
For a FREE LOAN MODIFICATION CONSUTLATION call 1-800-557-7573 (toll free) or 480-968-5626 (local).
Loan Modification Company AdjustMyLoan.com Investigates The 10 Ways To Stop Foreclosure!
In this post we are going to take a look at the different ways to Stop Foreclosure. We explain these options in order to give you a better understanding of your situation and show you how a Loan Modification by a qualified Loan Modification Company like AdjustMyLoan.com can help you Stop Foreclosure and stay in your home. Pay special attention to the first five options because these are your choices if you are trying to save your house. Understanding available solutions will help you formulate your plan giving you the best chance for a successful outcome. Remember, we are not giving you legal or tax advice and recommend you contact a professional to verify our information.
1. FORBEARANCE
“Forbearance” is an agreement with your bank/lender to Stop the Foreclosurein exchange for paying the overdue amount (called “arrearages”). The arrearagesare paid in either one lump sum, or a schedule of payments over a period of time (typically 6‐12 months). In some cases, your lender may even allow you to pay reduced monthly payments until you get back on your feet. More than likely, they will INCREASE your monthly payments to cover your owed arrears. Of course, your lender will only agree to forbearance if you can afford to resume your monthly payments. For example, if you got behind on your monthly payments because you lost your job, but were recently rehired, your lender might consider forbearance. Unfortunately, most homeowners Facing Foreclosure cannot come up with the money to make up back payments, nor can they afford higher monthly payments.
Bottom Line: To take advantage of this solution, you must be able to:
1. Pay the arrearages in a lump sum and be able to resume your monthly payments, or
2. Afford higher monthly payments (i.e. your original monthly mortgage payment plus a portion of the arrearages) until the arrears are paid off.
2. LOAN MODIFICATION
“Loan Modification” means changing the terms of your mortgage. (Also called “recasting” the mortgage.) For example, lowering the interest rate, increasing the loan amount, extending the amount of time you have to repay the loan, and/or other changes that your lender agrees to. A lender will typically consider a Loan Modification if you will be able to make your new mortgage payments after the change. For example, if you lost your job and got a lower paying job, your lender may lower your monthly payments, but increase the number of years you must pay your mortgage. There are temporary and permanent loan modifications and each lender will try and put you in a loan modification program that is in their best interest! Hiring a company like www.AdjustMyLoan.com will give you the professional representation you deserve so you receive the BEST LOAN MODIFICATION TERMS possible!
Bottom Line: To take advantage of this solution, you must be able to show your lender that you can afford the new monthly payments once the loan is modified.
ADJUSTMYLOAN.COM is a NATIONAL LOSS MITIGATION COMPANY based out of Phoenix, Arizona that specializes in LOAN MODIFICATIONS and forebearance agreements. Our professional staff is ready to help audit, package, propose, and negotiate a loan modification on your behalf. We offer FREE LOAN MODIFICATION CONSULTATIONS and DO NOT CHARGE ANY UPFRONT FEES for our LOAN MODIFICATION SERVICE. Call 1-800-557-7573 today and get the professional help you deserve.
3. FHA “Partial Claim” LOAN
If you have an FHA‐insured (Federal Housing Administration) loan, you may qualify for a one‐time “partial claim” loan. To qualify, our mortgage must be delinquent 4‐12 months and you must be able to resume full mortgage payments. When your lender files a “partial claim”, FHA/HUD (Housing and Urban Development) pays your mortgage current. However, in exchange for the “partial claim” loan, FHA/HUD puts a lien on your home and gives you an interest‐free loan that is due when your mortgage is pain in full (for example, after a refinance or when you sell your house). In other words, you have to eventually pay FHA/HUD back for the amount of money they paid your lender, but you don’t have to pay them back until you pay off your mortgage or sell your house. Visit www.hud.for more information.gov
Bottom Line: To take advantage of this solution, you must:
1. Have an FHA‐insured mortgage.
2. Not already have a “partial claim” loan from FHA/HUD.
3. Be delinquent at least 4 months, and no more than 12 months.
4. Show that you can afford to make the monthly payments in the future.
5. Remember that, sooner or later, you will have to pay back the amount of the “partial claim” loan.
4. REFINANCING YOUR MORTGAGE
“Refinancing” is when a lender (either your current lender or a new lender) gives you a new mortgage to replace your current mortgage. Of course, the new mortgage will likely be more than your current mortgage because the points, late payments, and other fees will be added to it. Unfortunately, most homeowners Facing Foreclosure cannot refinance because they do not have good credit or enough equity in their house. “Equity” is the difference between what your house is worth and the amount of the loans against it. For example, if your house is worth $300,000 and you owe $250,000 on a 1st mortgage and $15,000 on a 2nd mortgage, you have $35,000 in equity because $300,000 house value, less $250,000 representing the mortgage less $15,000 second mortgage = $35,000 equity.
Bottom Line: To take advantage of this solution, you must:
1. Have good credit and /or enough income to qualify for a new loan, and/or
2. Have a substantial amount of equity in your home; sufficient to meet the lender’s guidelines.
5. ANOTHER LOAN (i.e. 2nd mortgage, 3rd mortgage, etc.)
This is a new mortgage in addition to the mortgage(s) you already have on your house. The money from this loan is used to bring your mortgage current and stop the foreclosure. Unfortunately, the new loan will have a high interest rate (similar to most credit cards) and cost 5‐10 points. A “point” is 1% of the borrowed amount. For example, if you borrow $10,000, 10 points =$1,000. Also, since it’s another loan, keep in mind that you’ll have higher monthly payments. Beware of this trap, because if you cannot afford your current monthly payment(s), how will you afford higher monthly payments?
Bottom Line: To take advantage of this solution, you must:
1. Have a lot of equity in your house, and
2. Be able to afford the additional payment each month.
6. DEED‐IN‐LIEU OF FORECLOSURE (DIF)
A “Deed In Lieu Of Foreclosure” is when you voluntarily give your house back to your lender and move out. In exchange, the lender Stops the Foreclosure and agrees not to sue you for more money if the house is sold for less than the amount you owed. Since a DIF does not wipe out junior liens (i.e. 2nd mortgage or other liens), banks will usually not accept a DIF because they do not want to inherit the junior liens against the house. Also, you will not receive any money for your house when you use a DIF.
Bottom Line: In general, to take advantage of this solution, you must only have one mortgage. If you have a 2nd mortgage, 3rd mortgage, etc, most banks will not accept a DIF.
7. SELL YOUR HOUSE TO A REGULAR HOME BUYER
Unless your financial situation has improved, selling your house is one of the best -and in most cases, the only- way to stop the foreclosure. Although you probably want to stay in your house, the truth is that selling your house and moving is a lot less painful than Losing Your House To Foreclosure and having to move anyway. At least if you sell your home, it will be on your terms - not the lender’s -and your have a better chance of getting some cash out of your house. Plus, you’ll Stop the Foreclosure and save your credit. If you decide to sell your house to a regular home buyer, you can either try to sell it yourself or use a real estate agent. If you sell your house yourself, you’ll save money on real estate agent commissions. However, it will probably take longer to sell…time you don’t have. You will also have to spend time and money advertising andshowing the house to potential buyer. You will also have to understand how to write up a contract and where to go to complete the transaction (title agency). If you sell your house through a real estate agent, you’ll probably sell your house a lot quicker and probably at a higher price. But you’ll have to pay a commission to the agent (typically 6% which, on a $300,000 home is $18,000).
Bottom line: To take advantage of this solution, you must:
1. Have enough time (typically 3 ‐ 6 months, or more considering current market conditions) to find a qualified buyer and close escrow before the foreclosure auction.
2. Have enough equity to pay the real estate agent’s commissions (if you use an agent), and
3. Have enough time and money to perform all necessary repairs or you can sell the property as is for a lesser price.
8. SELL YOUR HOUSE TO AN INVESTOR
If you don’t have enough time to sell your house to a regular home buyer, don’t have enough equity to pay a real estate agent’s commissions, and/or don’t have the time or money to perform repairs, then selling to an investor is probably your best bet. An investor won’t pay full price for your house, but he/she can close quickly, pay you all cash, and buy your house in “as‐is” condition. This allows you to stop the foreclosure, save your credit, and get cash to move and/or pay other expenses and bills.
Warning: There are a lot of beginning investors out there who are not as experienced in this sort of situation. They may have good intentions but often will create a bigger disaster for your situation when time is of the essence is handling your matter. What you need now is an experienced team of professionals so if you choose this option, please call 602‐626‐3598.
Warning #2: Whatever you do, don’t let anyone talk you into paying for help without first verifying the person’s company and expertise! It is not likely that a paid, so‐called professional will be able to help you with your situation. Get all of the facts and check the Better Business Bureau before you do anything.
Bottom Line: To sell your property to an investor you must sell our house at a discount because the investor will have costs to fix your home to resell it. Just be sure to find a reputable company or investor that you know you can trust!
9. A SHORT SALE
A “Short Sale” is an agreement with your lender to accept less money than they’re owed as full payment for your loan. This solution often makes sense when you owe more than the property is worth. For example, if you owe $500,000 but your property is only worth $420,000, a short sale may be your only option. Rather than trying to negotiate a short sale yourself, call a professional who is experienced in negotiating with lenders. A short sale requires selling your property to an end buyer who will live there, or an investor who will Negotiate With Your Lender on your behalf. There are no guarantees that the lender will accept the short sale. Keep in mind that your bank does not want your house back! It is considered a non‐performing asset and they cannot have too many on their books! They want to work something out with you. As part of the short sale agreement, the lender prohibits you from receiving any proceeds from the sale. In other words, the investor cannot give you any money for your house.
Bottom Line: To take advantage of this solution, you should talk to an experienced Short Sale Negotiator. AdjustMyLoan.com has such professionals on its staff that can help you, however we only do Arizona Short Sales! Ask us for more information about your lender’s recourse on short sales. We have an informational report we can give you when we meet called How Property Owners in Foreclosure / Short Sale can avoid paying Taxes on 1099.
10. BANKRUPTCY
It is very important you understand how bankruptcy works and we suggest you meet with a bankruptcy attorney before considering this option. Many people use bankruptcy as a scare tactic. There are several different “chapters” of bankruptcy. Some are work‐out others are wipe‐out, but here is the general idea. When someone files bankruptcy it’s almost like someone builds a “bullet‐proof” barrier around the house. No one can touch you! However, you are not free of all responsibility and most people do not understand that. We are not bankruptcy attorneys, but you need to know the difference between a Chapter 7 and a Chapter 13 bankruptcy so you know what happens. Like we mentioned earlier, some bankruptcies are “work out” others are “wipe out“. The two that we will focus on are the Chapter 7 and Chapter 13. These are the most common in your situation. Chapter 7 is the “wipe out” and Chapter 13 is the “work out”. Bankruptcy is a federal court action designed to help individuals repays their debts or eliminate their debts depending on their circumstances. Chapter 13 bankruptcies are designed to reorganize debts in an effort to repay all debt. Chapter 7 bankruptcies are geared more towards liquidation of assets. Both Chapter 7 and Chapter 13 immediately stop the foreclosure process and any creditors from taking further action against you.
Here is how Chapter 7 works. When someone files a Chapter 7 bankruptcy, all assets and creditor collections are technically frozen which is called an automatic stay. The person filing bankruptcy cannot buy or sell anything, nor can they give away their property. If they try to sell their home, the court could order the receiving party to return it to the custody of the court appointed Trustee. Unsecured debts such as credit cards, unsecured loans, etc. are typically eliminated, although you should confer with your attorney on the rules regarding this. Then the trustee or attorney who represents the court and the creditors will look at all the assets (house, car, furniture, and equipment) a thing of value and decide what must be liquidated to pay some of the debt that was wiped out. The statute provides that there are some minimal assets a person filing bankruptcy may keep. If the homeowners are involved in a pending foreclosure, a Chapter 7 will Stop The Foreclosure Process temporarily. Usually, your lender will request the court appointed Trustee to release the property from the automatic stay so they may continue with the foreclosure process. Once the property has been released from the bankruptcy, the foreclosure process starts up again.
Chapter 13 is a little different. When someone files a Chapter 13, they usually keep their assets and repay their debts in a debt consolidation plan. Whatever amount is agreed upon has to be paid to the Bankruptcy Court every month for the next 3‐5 years. The homeowner usually keeps their house, car, and other assets. The homeowner is required to stay current with the mortgage payments and pays the amount agreed upon. If any payments are missed, the trustee will dismiss the bankruptcy and the foreclosure process will begin again. Bankruptcy is usually a last resort and should not be used to stop foreclosure unless you have no other option or else you need the protection of a bankruptcy due to other circumstances. If you feel this may be your best option, please seek legal advice.
Bottom Line: To take advantage of this solution you should consult an experienced bankruptcy attorney. We are not in the business of giving legal advice and in no way are we bankruptcy experts. This information is deemed reliable but no guarantees or warranties are expressed or implied!
WE CURRENTLY ARE CONDUCTING LOAN MODIFICATIONS IN THE FOLLOWING STATES:
ARIZONA LOAN MODIFICATION, ARIZONA LOAN MODIFICATIONS, LOAN MODIFICATION ARIZONA, CALIFORNIA LOAN MODIFICATION, CALIFORNIA LOAN MODIFICATIONS, FLORIDA LOAN MODIFICATION, FLORIDA LOAN MODIFICATIONS, NEVADA LOAN MODIFICATION, NEVADA LOAN MODIFICATIONS, NEW MEXICO LOAN MODIFICATION, NEW MEXICO LOAN MODIFICATIONS, OREGON LOAN MODIFICATION, OREGON LOAN MODIFICATIONS, WASHINGTON LOAN MODIFICATIONS, WASHINGTON LOAN MODIFICATIONS, NEW YORK LOAN MODIFICATIONS, NEW YORK LOAN MODIFICATIONS, MASSACHUSETTS LOAN MODIFICATION, MASSACHUSETTS LOAN MODIFICATIONS, MICHIGAN LOAN MODIFICATION, MICHIGAN LOAN MODIFICATIONS, OHIO LOAN MODIFICATION, OHIO LOAN MODIFICATIONS, GEORGIA LOAN MODIFICATION, GEORGIA LOAN MODIFICATIONS, MARYLAND LOAN MODIFICATION, MARYLAND LOAN MODIFICATIONS, COLORADO LOAN MODIFICATION, COLORADO LOAN MODIFICATIONS
If you are a homeowner facing foreclosure an searching for a solution to save your home, there are options available to you. A loan modification is a way to renegotiate your current loan terms, adjusting your interest rate, principal amount owed, or length of loan in order to lower your monthly payments. A lender is willing to do a LOAN MODIFICATION because it is a cheaper alternative than foreclosure.
As great of a solution a loan modification is, there are many “fly by night foreclosure rescue” companies out there looking to take advantage of your situation! BEWARE OF THE FOLLOWING LOAN MODIFICATION SCAM.
LARGE UPFRONT FEE SCAM:
These scams typically start by either a phone call, or an “official” looking document that uses scare tactics to get the homeowner all worked up about losing their home. Then, they offer a loan modification stating that it takes anywhere from 2-10 weeks to complete. They then charge a large upfront fee (typically $3000 - $7000) and promise to have a 98% success rate. They state that they have been helping homeowners for years and only they can help you. They offer a 100% money back guarantee if your not satisfied. This sounds good so you decide that you will do anything to save your home and pay. Once your money is collected upfront, in many instances you loan never gets modified. After some time the homeowner gets curious as to why they have not heard from the company or individual with an update. They start investigating and realize that the company does not have a physical address, nor will return their phone calls or money. The company or individual uses excuses such as “the homeowner never provided all the documentation needed” to get away with not doing any work. At the end of the day, the homeowner looses their home to foreclosure because it is typically too late by the time the realize they were scammed!
WHAT YOU NEED TO DO TO PROTECT YOURSELF:
MAKE SURE THE PERSON YOU ARE DEALING WITH HAS A PHYSICAL BUSINESS ADDRESS AND BUSINESS PHONE NUMBER.
MAKE SURE THE COMPANY YOU ARE DEALING WITH IS A MEMBER OF THE BBB
DO NOT PAY A LARGE UPFRONT FEE…A SMALL FEE IS OKAY BUT YOU SHOULD NOT HAVE TO PAY UNLESS THE LOAN MODIFICATION IS SUCCESSFULL.
MAKE SURE THE COMPANY YOU ARE USING HAS AN ONLINE TRACKING SYSTEM SO YOU CAN SEE THE PROGRESS OF YOUR LOAN MODIFICATION AT ALL TIMES
MAKE SURE YOU MEET THE COMPANY AT THEIR OFFICE AND SEE THAT THEY ARE CONDUCTING BUSINESS (GET TO KNOW THE COMPANY)
GET REFERRALS AND TESTIMONIALS TO VERIFY COMPANIES HISTORY
GET COPIES OF ALL PAPERWORK THAT OUTLINES THE BUSINESS RELATIONSHIP
Our “Worry Free Guarantee” provides you peace of mind when you need it most. WE ARE NOT A FORECLOSURE BAILOUT COMPANY! We are an PROFESSIONAL LOAN MODIFICATION COMPANY that specializes in loan modifications and short sales. Our expert loan modification negotiators will pre-qualify, package, propose, and negotiate a LOAN MODIFICATION on your behalf! We pride ourselves on being members of the BBB and in good standing. That we put all of our promises and guarantees in writing and have a 3 day rescission period in case you change your mind. That we have many referrals and testimonials. That we are located in downtown Phoenix, Arizona in a state of the art building that we own! THAT WE CHARGE NO UPFRONT FEE’S FOR OUR LOAN MODIFICATION SERVICE! Lastly, that we have an online tracking system that updates you on your loan modifications progress. We have spent hundreds of thousands of dollars building our company and advertising so we can help as many homeowners avoid foreclosure and stay in their homes. Our commitment to getting the job done and conducting business with honor and integrity is displayed to you from the second that you call! LOAN MODIFICATION INFORMATION
NATIONAL FORECLOSURE TIMETABLE AND HOW IT AFFECTS A LOAN MODIFICATION.
Each states foreclosure timetable is different and there is no strict industry standard. Your lender(s) can, at their own discretion, file for foreclosure at any time once you start missing your mortgage payments. You can in theory conduct a loan modification when you are current on your mortgage payments. It is difficult to do because your lender has little reason to take a loss on income when you are able to make your monthly payments. Most homeowners get the best loan modifications once they miss a payment or two but if you wait too long, and a foreclosure auction date is set, it becomes much more difficult to complete a loan modification with your lender(s). If you have already received a Notice of Default, immediately hire an Attorney Based Loan Modification Company such as www.AdjustMyLoan.com to conduct a Forensic Loan Audit and professionally negotiate your loan modification.
Below is a chart from Realtytrac.com displaying the approximate time it takes after NOD is filed for the home to go to the foreclosure auction. Remember that the Notice of Default (NOD) is generally filed 90-120 days after the account becomes delinquent. (These numbers are an estimate and are subject to change without notice. Information deemed reliable but does not claim 100% accuracy).
State
Judicial
Non‐ Judicial
Process Period (Days)
Sale Publication (Days)
Redemption Period (Days)
Sale/NTS
Alabama
•
•
49‐74
21
365
Trustee
Alaska
•
•
105
65
365*
Trustee
Arizona
•
•
90+
41
30‐180*
Trustee
Arkansas
•
•
70
30
365*
Trustee
California
•
•
117
21
365*
Trustee
Colorado
•
•
145
60
None
Trustee
Connecticut
•
•
62
NA
Court Decides
Court
Delaware
•
•
170‐210
60‐90
None
Sheriff
District of Columbia
•
•
47
18
None
Trustee
Florida
•
•
135
NA
None
Court
Georgia
•
•
37
32
None
Trustee
Hawaii
•
•
220
60
None
Trustee
Idaho
•
•
150
45
365
Trustee
Illinois
•
•
300
NA
90
Court
Indiana
•
•
261
120
None
Sheriff
Iowa
•
•
160
30
20
Sheriff
Kansas
•
•
130
21
365
Sheriff
Kentucky
•
•
147
NA
365
Court
Louisiana
•
•
180
NA
None
Sheriff
Maine
•
•
240
30
90
Court
Maryland
•
•
46
30
Court Decides
Court
Massachusetts
•
•
75
41
None
Court
Michigan
•
•
60
30
30‐365
Sheriff
Minnesota
•
•
90‐100
7
1825
Sheriff
Mississippi
•
•
90
30
None
Trustee
Missouri
•
•
60
10
365
Trustee
Montana
•
•
150
50
None
Trustee
Nebraska
•
•
142
NA
None
Sheriff
Nevada
•
•
116
80
None
Trustee
New Hampshire
•
•
59
24
None
Trustee
New Jersey
•
•
270
NA
10
Sheriff
New Mexico
•
•
180
NA
30‐270
Court
New York
•
•
445
NA
None
Court
North Carolina
•
•
110
25
None
Sheriff
North Dakota
•
•
150
NA
180‐365
Sheriff
Ohio
•
•
217
NA
None
Sheriff
Oklahoma
•
•
186
NA
None
Sheriff
Oregon
•
•
150
30
180
Trustee
Pennsylvania
•
•
270
NA
None
Sheriff
Rhode Island
•
•
62
21
None
Trustee
South Carolina
•
•
150
NA
None
Court
South Dakota
•
•
150
23
30‐365
Sheriff
Tennessee
•
•
40‐45
20‐25
730
Trustee
Texas
•
•
27
NA
None
Trustee
Utah
•
•
142
NA
Court Decides
Trustee
Vermont
•
•
95
NA
180‐365
Court
Virginia
•
•
45
14‐28
None
Trustee
Washington
•
•
135
90
None
Trustee
West Virginia
•
•
60‐90
30‐60
None
Trustee
Wisconsin
•
•
290
NA
365
Sheriff
Wyoming
•
•
60
25
90‐365
Sheriff
ARIZONA’S FORECLOSURE TIMELINE
Since we are from Arizona and specialize in Arizona Loan Modifications, we will highlight Arizona’s foreclosure timeline in a little more detail. Arizona’s foreclosure timetable is typically 6‐8 months in length. In most cases, the delinquency period lasts 90‐120 days and a Notice Of Default (NOD) is filed. This paperwork instructs your trustee to begin the foreclosure process. From the date that this paperwork is filed until the day you lose your home at auction is exactly 91 days. After your foreclosure auction, there is no redemption period like there is in some states. A sheriff, or the new homeowner that purchased your home at the auction will evict you from the home and it is legally theirs! The chart below gives you a good visual of how Arizona’s foreclosure process works:
You Lender(s) Rationale During The Foreclosure Process
First A Quick Disclaimer…no one is instructing a homeowner to miss their mortgage payments. In fact, if you are able to make your mortgage payments, then you should not be reading this eBook. Each borrower signed a notarized document promising to repay their loan within the agreed upon terms and should honor such a commitment if they can. A loan modification is designed to help homeowners who cannot afford their mortgage payment. Also, each bank is different. This section is designed to give you a general understanding of the rational from the banks point of view. With each passing day, rules, standards, and guidelines are changing.
Homeowner Is Less Than 30 Days Late:
While in theory it can be done, in most cases a bank will offer a loan modification during this period due to the fact that if you can pay your mortgage, why should they take a loss. The exception of this is if there was some predatory lending violation in their loan documents. Having an attorney conduct a Forensic Loan Document Review can uncover any RESPA and/or TILA and/or HOEPA violations and then threaten your lender with a lawsuit. This will typically expedite the loan modification process and get things done even when you are not behind on payments. Obviously this can get real expensive real quick!
Homeowner Is 30-90 Days Late:
We call this the panic period. As you begin to miss your payments, the bank slowly switches from customer service mode to debt collector mode. Depending on your lender, this period can be frustrating and confusing. Whenever a mortgage goes into default, it gets transferred to a department called loss mitigation. This department’s sole responsibility is to collect a debt, or at least minimize that particular lenders loss. Remember, they are not there to be your friend or your coach. They are working solely for themselves so keep this in mind when they are telling you what options are available. They will try and lead you in a direction that they want you to go. Also, at first you will not be dealing with the real decision maker so keep this in mind when you are pleading your case. More than likely you will have to submit some initial paperwork (your loan modification proposal) and have it reviewed before anyone offers you any solutions. Don’t be concerned if your bank sends you letters threatening foreclosure. USE THE THREAT OF FORECLOSURE TO YOUR ADVANTAGE WHEN NEGOTIATING. What we mean by this is if the bank feels like you have given up and are not emotionally tied to the house anymore, they will be less likely to use scare tactics to bully you around. Lastly, don’t be surprised when your lender(s) tell you one thing on the phone and then send you a letter threatening you further. This is common and you should not worry yet. In Arizona, the foreclosure process generally takes 6-7 months so you still have plenty of time…check your states foreclosure timeline to see where in the process you currently are! If you decide to hire a loan modification negotiation company, they will supply your bank with a letter of authorization giving them permission to negotiate on your behalf…this will generally stop the harassing phone calls from bothering you!
The 30-90 days late phase marks the beginning of the negotiation period and you could complete your LOAN MODIFICATION within this timeframe if you are well prepared and a good negotiator. Typically your bank will start you off offering some sort of forbearance agreement. A forbearance agreement is a short term (typically 2-4 months) suspension of your mortgage payments to help you get caught up on other bills. The principal and interest that accrue (called your arrears) will generally be added to the back side of your loan or spread out over the next 12 month period (raising your monthly payment). Sometimes a temporary interest rate drop is offered (for 1-5 years). This is considered a “temporary loan modification” and may sound like a good plan at first, but realize that this is a temporary fix that you will have to deal with again in the future. Once your forbearance period is over, the bank will expect to get paid all of those missed payments, plus interest, plus fees! Make sure that if you take this solution you get the temporary interest rate reduction along with it.
NOTE: A well developed proposal with proven income and a reasonable modification can be approved in this time period, but do not be surprised if the bank does not pay much attention to you yet. The point of a loan modification is to avoid foreclosure and since you are just entering into the negotiations, there is little sense of urgency from the banks point of view.
Homeowner Is 91-150 Days Late:
This is the period to get things done. Since you are doing this yourself, your chance for a successful loan modification is greatest during this timeframe. Somewhere during this phase a NOD will be filed and your lender(s) will become more desperate to come up with a solution. By now you should have your proposal completed and submitted to your lender(s) and your negotiating hat on. Your main focus should be a permanent interest rate adjustment, lengthening of your loan terms, a principal balance reduction to readjust your loan back down to current market values, or some combination of the three. This may not be possible for every homeowner, but should be attempted. Do not wait too long to agree on a loan modification…your bank may request a “good faith” payment and more paperwork which you want to avoid. If they request a few payments just to confirm you ability to pay, make sure they put it in writing that if you make the payments, the modification will be accepted and complete.
NOTE: Don’t panic if you loan modification is taking longer than expected. Many lenders will postpone filling the NOD if you are in the middle of a loan modification negotiation. The key is to start the process immediately after missing your first payment and continually pressuring your lender(s) for an acceptable resolution.
Homeowners Is 150+ Days Late:
Your ability to negotiate a loan modification is not over until the home has been sold at auction however if you are in this period, you should be contacting an Professional Loan Modification company like www.AdjustMyLoan.com. If you have not done so yet, you have very little time to submit your loan modification proposal to the bank. At this point, your ability to prove stable income at a level that is acceptable to the bank is your only hope for a loan modification acceptance. At this point, you should be considering a real estate short sale as a backup plan. A real estate short sale is the process where you can sell your house for less than what you currently owe. If you are located in the state of Arizona, and you want to learn more about a real estate short sale, go to www.ForeclosureCounseling.com/arizonashortsale.html.
NOTE: Loan modification guidelines change weekly and if you were denied a loan modification in the past, it might not be a bad idea to re-attempt it again, especially if your expenses or income has changed. Also, keep in mind that the bank will try to modify your loan to fit your exact monthly budget. Remember to include all of your hard and soft expenses and do not leave anything out. Many homeowners try and show the bank that they cut costs (which are a good idea when writing your hardship letter but not good for your INCOME / EXPENSE worksheet). Get rid of luxury items such as ATV’s and boats, but it is okay to have high soft expenses such as gas and food each month. Our end goal is to get your final mortgage payment affordable to you and this is achieved by being generous with expenses.
STOP…DON’T TRY AND DO A LOAN MODIFICATION ON YOUR OWN!
ALTHOUGH YOU COULD DO A LOAN MODIFICATION ON YOUR OWN, WE ALL KNOW THAT YOU BANK IS NOT GOING TO JUST OFFER YOU A LOAN MODIFICATION THAT IS IN YOUR BEST INTEREST! AT WWW.ADJUSTMYLOAN.COM, WE SPECIALIZE IN LOAN MODIFICATIONS WHERE OUR PROFESSIONAL LOAN MODIFICATION NEGOTIATORS PACKAGE, PROPOSE, AND NEGOTIATE A LOAN MODIFICATION ON YOUR BEHALF. WE UTILIZE A TRAINED REAL ESTATE ATTORNEY TO AUDIT YOUR ORIGINAL LOAN DOCUMENTATION (FORENSIC LOAN AUDIT) TO UNCOVER ANY PREDATATORY LENDING VIOLATIONS THAT MAY HAVE OCCURED DURRING LOAN ORIGINATION. IF ANY VIOLATIONS ARE FOUND, WE WILL HAVE MORE NEGOTIATING POWER TO GET YOU THE BEST LOAN TERMS POSSIBLE. DON’T LEAVE ANY TERMS ON THE TABLE. IF YOU WANT A PRINCIPAL BALANCE REDUCTION, OR A MASSIVE DROP IN YOUR MONTHLY PAYMENTS, HIRE ADJUSTMYLOAN.COM FOR YOUR FORENSIC LOAN AUDIT AND LOAN MODIFICATION NEGOTIATION NEEDS!
