What is a loan modification? A loan modification is when your mortgage terms, rate and payments are modified to reach an affordable monthly payment. You must meet certain criteria to qualify for the most popular loan modification program provided by the government which is called HAMP or Home Affordable Modification Program.
There are various reasons why homeowners are trying to get a loan modification. One of the main reasons is due to a job loss which becomes a financial hardship. And the question is ‘Can I do my own loan modification?’. The answer is YES. If you, the homeowner, is willing to spend time on the phone and do some paperwork, then you can do it.
The first thing a homeowner should do is call their lender (mortgage company), request for the loss mitigation department and ask for a loan modification package. This will let them know that you are willing to work with them on getting your loan back on track. They will give you a list of items that they want. These items can include proof of income, hardship letter which states why you can’t pay the current mortgage, bank statements, and so on. Be honest and provide what they are asking for and let them know your situation. The lenders do not want to hear sob stories but just the facts and a summary of your ability to repay your loan.
If the lender doesn’t respond quickly, be patient. There is a process and many homeowners, like you, have submitted their requests, too. At the same time, keep detailed records of all your calls. Once contact is made, write down the name of the person with whom you spoke, his or her identification number, the date and time of your conversation and a summary of what was said. Also make copies of all your correspondence and other paperwork. Lenders tend to lose things.
Avoid SCAMS from companies who offer services to do your loan modification for a fee. That is illegal. Only pay for services rendered, if any. The main thing is keep informed, keep pushing and stay in communication with your lenders. Nothing will kill your chances of modifying your loan than not communicating your situation to them and waiting until the last minute to work something out.
According to the Wall Street Journal, affordable home prices and historically low interest rates have created an ideal situation for many qualified first-time home buyers to purchase a house. Despite this opportunity, some buyers may be overconfident and make mistakes during the home-buying process.
MAKING SENSE OF THE STORY FOR CONSUMERS
-
Some first-time buyers are unaware of the vast amount of paperwork and negotiations that go into purchasing a home. As a result, buyers may think they can save money by forgoing the use of a REALTOR®. However, managing the nuances of offers, inspections, financing, and other pivotal steps when buying a home often causes confusion and anxiety for buyers. Working with a REALTOR®–who is obligated to put the buyer’s best interests first–will help to alleviate buyer concerns during this process.
-
Online mortgage calculators can help buyers estimate the amount of house they can afford, but calculators should not be the sole source for mortgage-approval information. Buyers are advised to meet with a mortgage broker or banker prior to beginning the home search to help determine the loan amount for which they are most likely to be approved.
-
Although there is a large selection of homes available for sale, home buyers should not assume they can make low offers or unreasonable demands. Even in hard-hit housing markets, homes in desirable neighborhoods are receiving multiple offers.
To read the full story, please click here.
The Wall Street Journal
What home sellers don’t tell buyers
As buyers ease back into the battered real-estate market, they’re often hitting a stumbling block: Fibbing by home sellers. Buyers should do their own due diligence and not rely on agents and sellers.
To read the full story, please click here.
Daily Breeze
State and national foreclosure filings continue to rise
Even as the economy and real estate market show signs of stabilizing, foreclosure filings continued to grow in California and nationwide last year.
To read the full story, please click here.
According to the California Association of Realtors, Fannie Mae and Freddie Mac are offering financing incentives for buyers of foreclosed homes owned by Fannie and Freddie. Home buyers have until Oct. 30 to apply for Freddie Mac’s SmartBuy program, which started in July, and offers up to 3.5 percent of a home’s sale price to help cover closing costs.
To qualify, the home must be a principal residence and must be selected from Freddie Mac’s HomeSteps Web site (www.homesteps.com/homeshoppers.htm) for its foreclosed properties. Loans must close by year’s end. The HomeSteps properties also include two-year warranties on major appliances and electrical, plumbing, and air-conditioning and heating systems.
Fannie Mae’s HomePath program (www.homepath.com) is an ongoing program and offers more incentives than Freddie Mac’s. Through participating lenders, Fannie will offer mortgages to buyers who make a down payment of 3 percent. The buyers do not have to secure private mortgage insurance, a common practice with nearly all lenders. Home buyers also can negotiate for Fannie Mae to offer closing-cost assistance. Unlike Freddie Mac’s program, Fannie’s assistance level is not capped. Under the HomePath program, the average participating homeowner has received payments equivalent to 3.75 percent of the loan’s value.
To read the full story, please click here:
http://www.nytimes.com/2009/10/11/realestate/11mort.html?_r=1&ref=realestate
On February 1, 2009, I listed the model home (previously sales office), and leased by John Laing Developer. Every week-end, 30-40 homebuyers, came asking about the status of the John Laing builder. Because the home I listed is owned by a private owner, I did not have any information about the builder’s status.
Therefore, I called the John Laing Headquarters in February and I was told that they are not going to continue building or complete the Villa d’este community in Fremont. It’s up to their lender to decide on the future of this community in the Ardenwood area.
However, since this is the only floorplan and home available, there is no competition. Unfortunately, the asking price is not attractive to home buyers and timing is wrong, due to the current economic trend. The owner bought the model home for $1,400,000. It is currently listed for $1,275,000 which is still a loss for the seller. The property does have over $200,000 of upgrades with high end appliances.
Recent article about the John Laing company, please click here.
Article on Timeline of John Laing’s pathway to Bankruptcy, please click here.
Los Angeles Times
Independent home inspections are crucial for would-be buyers
A crucial part of the home-buying process is the home inspection, but many home buyers do not pay enough attention to this important step. According to the president of the American Society of Home Inspectors, many of the items that independent home inspectors find during the inspection are results of neglect. Most homeowners do not provide regular maintenance, such as changing filters in the furnaces and air conditioners, fixing leaky faucets and repairing doors and windows.
MAKING SENSE OF THE STORY FOR CONSUMERS
· During the home inspection, home buyers should turn on the water faucets to gauge the water pressure. If the water drips or there are noises, it could mean there is a problem with older galvanized piping or inadequate piping. Sections of piping may need to be replaced, or a completely new plumbing system may be needed.
· While vertical cracks in the foundation are normal and often are caused by the house settling, horizontal cracks are not, and generally result from hydrostatic pressure against the home’s foundation. This can be corrected by excavation and drainage and repairs to the wall itself. If horizontal cracks are evident, home buyers should consult with several structural engineers to determine corrective measures.
· Stains on walls and ceilings should be further evaluated to determine the cause and extent of any possible hidden damage. Home inspectors also should search for the cause and test the stain using a moisture meter to determine whether or not it is active.
To read the full story, please click here
