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.
In understanding the market value of your property, we must deal with some factors that we have no control over. These factors are physical qualities of your property and the competition.
* Physical qualities:
- Location
- Age
- Size of House and Lot
- Floor plan and design style
* The Competition:
- The number of similar properties for sale
- Their prices and financing terms
- Physical Condition
Then there are some factors that have no effect on the current value of your property. These factors are original price and opinions of others.
* Original Price:
- What you originally paid for your house
- Credits or closing costs
- Down Payment
- The actual Sale Price
* Opinions
- What people say your property is worth
- Websites that contain comparable sales
Yes, but no need to rush. According to the Wall Street Journal, many housing economists have said that for borrowers with stable incomes, good credit history, and FICO scores of at least 620, now is an opportune time to purchase a home. Although inventory rates are below the long-run average, there still are plenty of options available for buyers of high-end homes. Things to think about are as follows:
Closely-watched indices, including the Standard & Poor’s/Case Shiller Index, indicate that the high end of the market didn’t experience the same dramatic price appreciation as the low end. Home prices in this segment have not declined as steeply as homes in the mid- to low-end of the market. Additionally, many discretionary sellers in the high end—those who do not have to sell their homes—are opting to wait until home prices rise before listing their homes for sale.
The high end of the market also is facing challenges with buyers qualifying for financing. During the height of the market, many high-end home purchases were fueled by exotic mortgage products. Now that those mortgages are no longer readily available, many lenders are requiring borrowers to provide proof of income, such as W-2s and recent paystubs, as well as demonstrate their ability to meet the monthly mortgage obligation.
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.
Thank you for visiting ZaidaPatel.com. As one of the premier real estate services in the San Francisco bay area, we offer valuable real estate information and news to buyers and sellers in all areas related to real estate with a particular emphasis on the east bay communities of Fremont, Union City, Newark, Hayward, Dublin, Pleasanton and San Ramon.
The SF bay area Ca real estate is changing rapidly. We know it is important for buyers and sellers to stay informed on home values. I specialize in reporting current market information and news concerning Fremont, Union City, Newark, Hayward, Dublin, Pleasanton and San Ramon real estate.
- I won’t waste your time – when an offer is made, I’ll require acceptance or a counter offer within 24 to 48 hours.
- You’ll have the advantage of personal, one-on-one attention, as well as my dynamic web and e-mail resources.
Feel free to call my cell phone (510-676-2236) or send me an e-mail (zpatel@rwnetwork.com).
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