If you are struggling with your monthly mortgage payments, you have probably been paying special attention to the news about the loan modifications available through the 2009 Stimulus Package, the Making Home Affordable Program. Millions of homeowners are getting assistance in avoiding foreclosure, but does your bank or lender have a mortgage modification plan?

Click here to learn how you can get approved for a loan modification today!

The Making Home Affordable Program has various guidelines for qualification, but the first and foremost one is whether your lender is on the approved lender list. If not, then a loan modification through this government-sponsored program is not possible for you. It is easy to determine your bank’s participation by accessing the list at the government website. A local HUD office, or Department of Housing and Urban Development office, can also help you with this important information.

Even if your lender is not participating in the government program or you don’t qualify, this does not mean you still could not work out a loan modification to keep you in your home. The truth is that banks do not like to do foreclosures, and this is more true than ever in this current economic downturn. They cost them much in time and money.

If you find yourself in that situation, you should not give up on the possibility of a reworked mortgage. The lender’s website is a good place to start, with “Loss Mitigation” or “Hardship Help” being two headings to look for in the menu. So, you should find out today if your lender has a mortgage modification plan.

For must know facts about how you can get approved for a loan modification, visit our blog at http://1MortgageModifications.com/ to get help today.

I am a loan modification expert. I have written hundreds of articles on loan modification. I enjoy helping my readers modify their loan.
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They are hard to find but the answer is YES. There is a home loan refinance program that can dramatically reduce the amount a homeowner owes on the balance of their home loan(s) – as long as the homeowner meets a few criteria discussed at the end of this article. This is NOT a loan modification that simply offers a temporary reduction in the interest rate and monthly payment. Using a Note Repurchase Program or Loan Balance Reduction Program, homeowners who find themselves owing more than their home is worth can literally shave up to hundreds of thousands of dollars off their existing loan(s) balance which results in a small instant equity position and a large monthly savings from lower mortgage payments. As if this wasn’t enough good news, the homeowners credit score is NOT negatively affected by this program.

Here is how it works. The company that is handling the Loan Balance Reduction, usually a team of lawyers and real estate professionals, will group a portfolio of existing notes of their clients from a particular lender, Bank ABC, and present the bank with an all-cash, take it or leave it, offer to purchase the entire portfolio of notes at a significant discount to current market value. If accepted, and I’ll explain why the banks are often willing to do this, the investor then turns around and underwrites a loan back to the original homeowner at 90% of CURRENT APPRAISED value. The homeowner has now repurchased their home for under present market value, saving a bunch of money from a lower mortgage amount AND monthly payment!

Now why would any bank in their right mind take so much less than what is owed to them? The answer is simple. Liquidity. Banks today need cash to lend (this is their business) and are required to have certain cash reserve levels by The Federal Reserve to stay in business. By removing a non-performing asset from their books it frees up cash that the bank can immediately turn around and use in their business activities. Rather than risk the increasing probability of having to foreclose and own these non-performing assets in a year or two, many banks are willing to take the immediate cash infusion.

Who qualifies for this program? In order to take advantage of this program a homeowner (including investment properties 1-4 units) must have a Loan-to-Value ratio of AT LEAST 125%. Meaning the total amount owed for all loans on the property must exceed the present value of the home by 25% or more. Secondly, the homeowner must have an income source and a debt-to-income ratio of 50% or less (based on the new lower mortgage payment!). The process takes approximately 2-3 months to complete and ALL credit quality qualifies, you can even be in the Notice of Default or Trustee Sale phase and be able to take advantage of this program.

If you meet the criteria listed above and would like more information about a Loan Balance Reduction Program, please visit me online at http://www.PrincipalReduction.us

Charlie Kartchner, Lic Broker, Principal Reduction Specialist http://www.PrincipalReduction.us
 
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In order to successfully modify a loan for your client (or for yourself), you will need to write a good hardship letter to send to the lender along with the rest of the modification package documentation. Make sure to include the borrower’s name(s), the property address, the lender name, and the loan number at the top. In the body, state what kind of modification the borrower would like, the reason they fell behind, and why their situation is stabilized or better now.

Make the letter short and sweet. If the letter is too long, it will begin to sound like a sob story and could get skimmed or even ignored by the overworked people in the lender’s loss mitigation department. Also, for an extra personal touch, keep the voice in first person for the borrower (i.e. I, me, and we), and always have them sign it personally. Have them write it by hand on a blank sheet of paper even, as it will seem less likely to have come from you or a template (which it did), and more like it came from the heart.

Below is a sample template you can use with my permission. Just cut and paste the text into a Word document, fill in the blanks, and tailor it to your own borrower’s specific situation. You may even want to tweak the verbiage a bit, as the lenders will likely have seen many identical copies of just about every hardship letter you can find online.

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Date
Client’s name
Property address:
Lender Name
Loan number: 99999999999

To Whom It May Concern:

This letter explains the unfortunate circumstances under which I fell behind on my mortgage. I’ve done everything I can to stay ahead, but I still fell behind. I would like to be considered for a loan modification to decrease my payments and interest rate to keep this from happening again, give me a fixed rate to prevent the payments from increasing down the road, and to recapitalize the delinquent payments. My number one goal is to keep this property for the long term.

I work as a (job) for (employer). In (month and year), I hit hard times financially because (hardship reason). Since that time, (reason hardship is over or at least stabilized). My income is now (back to normal, lower than before, whatever).

Despite my recent hardship and reduction in income, it is my full intention to pay what I owe. Now that (reason hardship is over), I would appreciate if you can work with me to lower or recapitalize the delinquent amount owed, lower my payments, and fix the rate for 30 years so that I can afford to keep this home for the long term and make amends with (lender name).

I pray you will work with me on this. I’d like to get it settled so we can both move forward without problems ever again.

Sincerely,

(Client signature)

(Client Name, typed)

If you’d like to learn more about starting a loan modification business, or if you want to access all the necessary forms, spreadsheets, and templates, click here:

http://StartALoanModBiz.com

Matt Sparks is a successful entrepreneur, both offline and on. He is also a licensed mortgage broker, employing real estate broker, and Realtor. He has written books, articles, and blogs about small business, real estate, finance, New Urbanism, and sustainable cities.
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The most part of your time spent being a homeowner will go towards maintaining the home and making your dreams come true. But just because you get the home and make it look like a million bucks, does not mean that you may not have any other problems.

The home come with big mortgage payments, along with making for a hard time to get them paid. Falling behind on your home loan can mean the possibility of facing a foreclosure.

Natalia Osorio Editor of the “Stop Foreclosure Loans” website — http://www.StopForeclosureLoans.org — pointed out;

“…If you are one the millions of American’s facing foreclosure then you should make sure to try to take care of the situation as soon as possible. One false move or not doing anything to remedy the situation could mean disaster. If you take the time to take the proper steps, then foreclosure can be adverted and you can get back to living a good life in your dearly loved home…”

There are some steps that one should take if there home is on risk of foreclosure. If you fall behind on your mortgage and can afford to have a loan modification done, then by all means do so. A loan modification allows the homeowners to refinance their current loan and maybe even extend the term of the loan. The amount that you are past due is typically added back to the loan, so you will have to pay that amount and the interest along with fees. You may be able to get your lender to accept monthly mortgage payments that are within your financial reach, and the lender will check to make sure you are capable of paying the loan.

To qualify for a loan modification, you are going to have to either persuade your lender or prove to them that you can make the monthly payment and that your money problems are only temporary along with proving that you are doing something about it.

“…You should never go at trying to do a loan modification on your own. There are many things that you may not understand and with the help of experts, your loan modification can be done quicker. The moment that you receive the past due notice on your home is the moment that you should contact a legal representative to fix the situation. As a homeowner it is up to you to make sure to take all the necessary steps to make sure you can save your house from foreclosure. Be sure to contact your lending institution the minute you start to experience problems as they are often very eager to work with you to fix the problem…” N. Osorio added.

Further information about how to get professional assistance with a mortgage loan modification by http://www.StopForeclosureLoans.org

Hector Milla runs his corporate website at http://www.OpsRegs.com where you can see all his articles and press releases.
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