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A Common Loan Mod Mistake

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Fair oaks CA – The Stop Foreclosure Institute recently received a question from a person attempting a loan modification on their home. Here was their question.

“I have a first mortgage for $197,000. That was my original loan from when I bought my home. I borrowed $250,000 on a second mortgage for a remodel.

My house has dropped dramatically in value. It used to be worth over $500,000, but not the value is more like $250,000.

With the recent decrease in value, I would like to get a modification on my second mortgage. I would like to get that reduced to $250,000.”

Get my Free, Step By Step Loan Modification Guide by clicking here.

We talked to this fellow and found out some other information. He mentioned that he was having a hard time paying the second mortgage.

He did mention that he was saving up $7,000 to settle a $25,000 debt on a credit card. That was the shocker. Why would you pay $7,000 to a credit card rather than paying your mortgage?

That will cover his second mortgage payments for almost a year. He thought it was the best opportunity he would ever have to avoid repaying the $25,000.

This was when I told him about a client we helped with a short sale. This seller had been chased down by a credit card judgment for over 3 years. However, they couldn’t levy her bank account or garnish her wages. Why not?

She found a state law that forbids garnishments when a person is a head of household. This is good news for the guy who wants to pay $7,000 to the unsecured credit card.

How does that impact his loan modification? It doesn’t. He still has to go thru the excitement of negotiating that. But, it does free up his finances dramatically.

Here is the bottom line. You don’t always have to choose between keeping your house and getting your wages garnished. If you are considering a loan modification, then first look at what other debts you can stop paying. Thinking about a loan modification?

Our Fair oaks loan modification guide will show you how to reduce your mortgage payment, keep your home, and get back on your feet. Send me an e-mail at shortsales@sacArea.com to request a Free Copy.

When we talk, I will explain how the process works in detail and answer any questions you may have. Or, if you prefer, you can call me at (916) 852-9000

Discover how other sellers successfully completed a short sale and request a free consultation by clicking here.

Thanks for reading this, Reginald “Brannon” Velten.

Reginald “Brannon” is a Real Estate Agent at RE/MAX Gold . Fair oaks Short Sales Realtor:

Phone: (916) 852-9000. shortsales@sacArea.com.

View My homes for sale at .

Reginald Velten specializes in loan modification assistance and short sales in Folsom California. Folsom Loan Modification Help, Folsom Short Sales. Folsom Short Sale Realtor Fair oaks CA Short Sales. Fair oaks Realtor.

Copyright 2011 SFI Marketing Institute, LLC. All Rights Reserved.

Important Notice

Reginald “Brannon” Velten, RE/MAX Gold , and the Stop Foreclosure Institute are not affiliated in any way, shape, or form with the government. Our services have not been reviewed or endorse by the government or your lender. Most lenders willingly work with agents on short sales. Why?

Because most short sales are beneficial to a lender. If you accept our offer to help you on a short sale, your lender may not agree to a short sale or to modify your loan. We do offer a loan modification kit.

However, the likelihood of negotiating a modification is like everything else in life. It takes work and persistence to convince your lender to modify your loan. No matter what you or we do, your lender may not approve a loan modification.

We do not recommend that you stop paying your mortgage, because this will cause damage to your credit and could cause you to lose your home. Because we know avoiding foreclosure is so important to any homeowner, we recommend that you speak with the appropriate legal or tax advisor before making any decision.

This is not intended as legal, technical, or tax advice. Please speak with a licensed professional before making any decision. Information is deemed reliable but not guaranteed as of the date of writing.

You have the option to reject a short sale or loan modification from your lender if it does not meet your approval. If you decide not to go thru with the short sale, then you do not have to pay us our fee. We normally make a real estate sales commission for helping you on a short sale.

The views expressed here are Reginald “Brannon”‘s personal views and do not reflect the views of RE/MAX Gold .

This information on A Common Fair oaks Loan Mod Mistake is provided as a courtesy to our viewers to help them make informed decisions.

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Folsom CA – Another agent asked me about a short sale. His seller owed 270k. The house was selling as a short sale for 170k. The lender had two opinions of the house value. They said the house was worth 220k. However, the agent thinks those are incorrect because the house has been on the open market for several months. In addition, similar homes has been selling for around 180k.

Discover how other sellers successfully did a short sale and request a free consultation by clicking here.

The biggest reason lenders turn down a short sale is because they think the house is worth more. They have people give them an opinion of value for a nominal fee. Because these people may profit if the lender forecloses on the house, they often turn in high values.

If you are selling your house as a short sale, this might happen. Here is how your agent can handle the problem. First off, they will need to “escalate” the file. This means they appeal to the lender and ask them to reconsider. They will then need to show why they think the house is worth less.

This is fairly simple. I send the lender a Comparable Market Analysis, also known as a CMA. This is where I show three other similar homes that have recently sold. I compare them to the subject property and give an opinion of value based on those comparisons.

I have found it best to use a price per square foot comparison. After all, it is hard to argue that a house is worth X, when all the other homes are selling for the same price per square foot. Your agent will then request the lender order a new opinion of value. Most lenders will usually do that if there is a big discrepancy.

Another option is to hire an appraiser. Have the lender review the appraisal. It’s hard for a lender in a far away city to argue with an appraisal done by an appraiser familiar with the local marketplace.

Discover how other sellers successfully did a short sale and request a free consultation by clicking here.

Our Folsom loan modification kit has the instructions you will need to get a loan modification approved. Info is available here.

Thanks for reading this, R B Velten.

Reginald is a real estate agent at RE/MAX Gold.

Phone: (916) 852-9000. shortsales@sacarea.com.

R B Velten specializes in loan modification assistance and short sales in Folsom California. Folsom Loan Modification Help, Folsom Short Sales.

Folsom CA – I heard about a guy who got ripped off by a debt collector. The debt collector asked if he could pay them $500. He wanted to do the right thing. So he agreed to pay the $500. The debt collector sent him a form to make the payment thru his checking account. He filled out the form and signed off on it. The debt collector proceeded to completely drain his bank account.

They sucked out $1,800. This caused major financial problems for this guy. He couldn’t afford gas to get to work. The reason that the debt collector was able to get the extra $1,300 was the fine print on the bottom of their form. The moral of the story? Never give any of your financial information to a debt collector or anyone.

If you do settle with a debt collector, only send them a payment where they can’t track you. Use a money order. Money orders keep all of your bank account information private. You can buy one with cash or a debit card. The debt collector will never get your account information.

Never give any of your financial information to a debt collector. Do not send them info on your checking account, savings account, IRA, 401k, or any other financial account you have. Many state and federal laws often give a debt collector permission to take money out of your accounts, with or without your permission.

Unless you are a lawyer, you won’t know if or when they can take money. So you are simply better off never giving them your info. The debt collection company that I mentioned above is based out of Colorado. I don’t remember their name. They tried to collect from another person I know. They were very pushy. They only wanted his checking account info.

They wouldn’t accept any other payment method. It appears they use that tactic on everyone they call. Hope this helps you in your situation. Would you like to discuss your situation with me? You can call e-mail me at shortsales@sacarea.com or call me at (916) 852-9000.

Our Folsom loan modification kit has the instructions you will need to get a loan modification approved. We show you how to prove to your lender that they will make more money by accepting your loan modification versus foreclosing on the house. They’re in the business of making money, right?

That is why this strategy works. Get more info on this strategy and the tools you need for a successful loan modification by clicking here.

Discover how other sellers successfully did a short sale and request a free consultation by clicking here.

Thanks for reading this, R B Velten.

Reginald is a real estate agent at RE/MAX Gold.

Phone: (916) 852-9000. shortsales@sacarea.com.

R B Velten specializes in loan modification assistance and short sales in Folsom California. Folsom Loan Modification Help, Folsom Short Sales.

Folsom CA – A forbearance is when you catch up all your back payments and continue paying your original mortgage payment. This is a good option for many. However, it doesn’t reduce your payment as much as a loan modification does.

Discover how to negotiate a loan modification here.

Most lenders are glad to negotiate a forbearance. The one advantage is that the process is much shorter. You avoid the lengthy and troublesome loan modification process. A forbearance can normally be approved in two weeks to a month. Contrast this with the one to six month process associated with loan modifications.

The big drawback with a forbearance is that it doesn’t reduce your payments. In fact, the first 12 months are tough. Here is why. You are re-paying the back payments during those 12 months.

This means your monthly payment actually increases. If you were paying $800 a month before, you are paying $1,150 during the forbearance. Many homeowners accept a forbearance only to default because they can’t afford the higher payments.

A good loan modification is what they really need. However, the lender will be reluctant to approve it. Why? Because they already defaulted on the forbearance. This is why I recommend you only ask for a forbearance if you can afford the higher payment.

Was the original reason you defaulted because you could not afford the payment? In this case, a loan modification is a better option. Our Folsom loan modification kit has the instructions you will need to get a loan modification approved.

We show you how to prove to your lender that they will make more money by accepting your loan modification versus foreclosing on the house. They’re in the business of making money, right? That is why this strategy works. Get more info on this strategy and the tools you need for a successful loan modification by clicking here.

Discover how other sellers successfully did a short sale and request a free consultation by clicking here.

Thanks for reading this, R B Velten.

Reginald is a real estate agent at RE/MAX Gold.

Phone: (916) 852-9000.

R B Velten specializes in loan modification assistance and short sales in Folsom California. Folsom Loan Modification Help, Folsom Short Sales.

Folsom CA – It takes a lender months to foreclose on your house. I have seen some lenders take 2-3 years to foreclose on a house. There are two reasons this is happening. First, there are a lot of people unable to make their payments. Second, the court system is backed up.

This gives you plenty of time to negotiate a loan modification. Discover how to negotiate a loan modification here.

Here are a few examples. I have seen many lenders wait up to a year to file for foreclosure. The homeowner stopped making their payments in January. Their lender didn’t file for foreclosure until October or November that year. In many situations, the lenders are waiting even longer than that. Obviously it all depends on the lender.

Here is an example of how the court system is backed up. Many lenders will file for foreclosure. In some situations, it takes a judge two to three months to respond to a request. The court system is only designed to handle so many cases.

There are simply too many cases being shoved into the system. Once a judge is overloaded, it takes longer for them to respond. The other thing is that the lawyers for the lenders are overloaded. Many of these law firms reduced staff during the last economic boom. Now they are having to crank up production. It is taking time for them to hire on and train new staff.

What does that mean to you? They are slow to file the foreclosure case. They don’t “push” the case to foreclose faster. I have heard of foreclosure cases in some states that would sit dormant for 1-2 years. The foreclosure lawyers simply weren’t filing the necessary paperwork. If you are facing this is good news.

You can stay in your home rent free for a long time. I saw one person move out of their house a couple of months after the foreclosure started. He couldn’t afford rent at his new house and was evicted. However, it took his lender over two years to foreclose on his house. He could have lived in his original house for free during those two years.

Hope this helps you in your situation. Would you like to discuss your situation with me? You can call e-mail me at shortsales@sacarea.com or call me at (916) 852-9000. Our Folsom loan modification kit has the instructions you will need to get a loan modification approved.

We show you how to prove to your lender that they will make more money by accepting your loan modification versus foreclosing on the house. They’re in the business of making money, right? That is why this strategy works. Get more info on this strategy and the tools you need for a successful loan modification by clicking here.

Discover how other sellers successfully did a short sale and request a free consultation by clicking here.

Thanks for reading this, R B Velten.

Reginald is a real estate agent at RE/MAX Gold.

Phone: (916) 852-9000. shortsales@sacarea.com.

R B Velten specializes in loan modification assistance and short sales in Folsom California. Folsom Loan Modification Help, Folsom Short Sales.

The re-default rate of loans modified in the first quarter of 2009 was 51.5 percent by the end of the year, according to the Office of the Comptroller of the Currency and the Office of Thrift Supervision.

Assistant Treasury Secretary, Herb Allison gave his opinion. “Borrowers were more likely to re-default when their monthly payments aren’t reduced enough in modifications to make staying in a home affordable. Our data show that when you reduce payments by 20 percent or more you have a tendency for lower re-default rates,” he said.

This is bad news. If you are looking for Folsom Loan Modification Help, don’t become a statistic. Here is why this is happening. Many homeowners get desperate and accept a loan mod they can’t afford.

Are you negotiating with your lender to reduce your monthly payment? Before you start, run your budget. Figure out what you can afford to pay each month. Decide on the highest monthly payment you will accept. Draw a line in the sand. If you can only afford $800 a month, then don’t accept a $1,200 payment.

The second loan modification is much harder to obtain. Lenders are reluctant to reduce your payment a second time, because they think you will default a third time around.

Review all your options to avoid foreclosure. Research your local housing market. Many people have been able to rent a house for much less than their mortgage payment. Here is one example. A couple owned a house with a $1,400 monthly mortgage payment. The home’s value had dropped by 50%. Their lender wouldn’t reduce their payment.

They found a nicer house to rent for $850 a month. This is one option. If you want to keep your home, you need to negotiate for a payment you can afford. Do not let your lender push you into an unaffordable payment.

Not being able to afford your home is tough. You are stressed out. You and your spouse might argue over money. You might think about your problems when you are at work, which might affect your ability to do your job. You then risk getting let go. Where will your lender be at that point? This is why it is in the lender’s best interest to reduce your payment where you can afford it.

Our Folsom loan modification kit has the information on how to make the argument. We show them that they will make more money by accepting your loan modification versus foreclosing on the house. They’re in the business of making money, right? That is why this strategy works. Get more info on this strategy and the tools you need for a successful loan modification by clicking here.

Thanks for reading this, R B Velten.

Reginald is a real estate agent at RE/MAX Gold.

Phone: (916) 852-9000.

Discover how other sellers successfully did a short sale and request a free consultation by clicking here.

R B Velten specializes in loan modification assistance and short sales in Folsom California. Folsom Loan Modification Help, Folsom Short Sales.

Many people think you will have a better opportunity of getting a loan modification if you pay up some of your back payments. It all depends on who you are talking to at your lender. When you first get behind on your payments, you will be dealing with the collections department. In my opinion, these people will tell you anything, just to get you to pay a dime. Let me explain.

Their job is to collect as much money as possible. It’s in the lender’s best interest to get you to pay them anything. They don’t want to approve a loan modification until they absolutely have to. Loan modifications mean they have to hire on more employees. That costs money. Not good for the balance sheet.

They want everyone behind on payments to catch up. If they can do that without a loan modification, then great. They just want to get payments coming in. “Just get people to pay anything. The more the better”, the managers say.

Most lenders take a month or longer to even look at your loan modification file. They can’t approve a loan modification until someone processes the file. In the meantime, the collection people are still calling. Those collections people want to get paid. But, they are trying to get money before your loan modification even has a chance of getting looked at. This is why you have a better chance of getting a solid loan modification when you are behind on payments.

Our Folsom loan modification kit has the information on how to make the argument. We show them that they will make more money by accepting your loan modification versus foreclosing on the house. They’re in the business of making money, right? That is why this strategy works. Get more info on this strategy and the tools you need for a successful loan modification by clicking here.

Thanks for reading this, R B Velten.

Reginald is a real estate agent at RE/MAX Gold.

Phone: (916) 852-9000.

Discover how other sellers successfully did a short sale and request a free consultation by clicking here.

R B Velten specializes in loan modification assistance and short sales in Folsom California. Folsom Loan Modification Help, Folsom Short Sales.

If you can’t afford your house payment, or are in foreclosure, then you should ask your lender for a loan modification. Many Folsom Homeowners are getting their loan modifications approved. However, it takes a lot of work.

You may qualify for a loan modification if you are at risk of near default. Has your income recently been reduced? Or, is your interest rate about to re-set to a level you cannot afford? In these cases, you probably qualify for a loan modification. This is true even if you are not yet behind on your payments. Are you looking for Folsom Loan Modification Help?

We have a loan modification kit that you can use to negotiate a loan modification on your own. Some people pay thousands of dollars upfront to have someone do it for them. But, who is going to push harder for an approval? The person who risks losing their house (you), or someone else who already got paid upfront?

To start the process, gather up all the necessary documents. You will need income documentation, all your mortgage documents, and copies of your monthly bills. You will need to present the lender a case on why they should accept your loan modification.

You generally qualify for a payment reduction if the house is your primary residence and your payment is more than 31% of your monthly income. Many lenders are accepting loan modifications. Here is the key. You must show your lender how it is beneficial to them to accept your loan modification.

Our loan modification kit has the information on how to make the argument. We show them that they will make more money by accepting your loan modification versus foreclosing on the house. They’re in the business of making money, right? That is why this strategy works. Get more info on this strategy and the tools you need for a successful loan modification by clicking here.

Thanks for reading this, R B Velten.

Reginald is a real estate agent at RE/MAX Gold.

Phone: (916) 852-9000.

Discover how other sellers successfully did a short sale and request a free consultation by clicking here.

R B Velten specializes in loan modification assistance and short sales in Folsom California. Folsom Loan Modification Help, Folsom Short Sales.

I am following up on an answer to the following question we received about short sale deficiencies. “We have a first mortgage with EMC. Just got an approval letter on a short sale. NO language in letter that says ”satisfied in full” or words to that effect.

It only says “conditions for EMC’s acceptance of this discounted payoff are X.” Will they sell the note to a collection company and then hound us for years to come?

In part one and two we detailed the types of loans where, in my opinion, you would not owe a deficiency on a short sale. There are a few types of loans that commonly ask for a promissory note. Here are the types of loans that often ask for a promissory note.

They are loans that are owned by the lender you originally got the loan from. A good example is a credit union loan, or a small community bank. Another common type are loans that were granted with Private Mortgage Insurance. In our experience, these companies are very demanding. They negotiate hard and say they will not approve a short sale without a promissory. However, that is not always the case.

Prove to them that you don’t have any assets, nor any extra monthly income. Your agent will show them that they are better off accepting the short sale. Most of the time they will waive the promissory note and accept what they can get. After all, something is better than nothing. Make sense?

If you are considering a short sale and are worried about the deficiency, then give me a call at (916) 852-9000. When you contact me, I will research the type of loan you have. Based on that research I can give you my opinion on the deficiency.

When you contact me, I will research the type of loan you have. Based on that research I can give you my opinion on the deficiency.

The above is my opinion. It is not legal or accounting advice. Please contact a competent attorney or other professional because the circumstances vary, depending upon your situation.

Thanks for reading this, R B Velten.

Reginald is a real estate agent at RE/MAX Gold.

Phone: (916) 852-9000.

Get the tools you need for a successful loan modification by clicking here.

Discover how other sellers successfully did a short sale and request a free consultation by clicking here.

R B Velten specializes in loan modification assistance and short sales in Folsom California. Folsom Loan Modification Help, Folsom Short Sales.