I was reading an article yesterday and wanted to share some of the key factors with you.  I thought this was very interesting!

Before, loan modifications would not include the second mortgages, however, now they can include them!  This is great news!   Many folks were turned down before when they applied to do loan modifications because of the second trust deed, but now, they should reapply and try it again.  This includes lines of credit and equity lines as well against your home.

As far as the second mortgage goes, the government says they can give the banks a payment that basically will make the second go away.  I am a bit concerned about that one with our economy the way that it is right now and with California giving us all IOU'S on everything!

This is, of course, if your lender will participate in this program.  You will have to check with your lender.  There are many banks that do some of them are, Wells Fargo, Bank of America, Citibank, Countrywide, Chase and others. 

You must be living in your home (it cannot have been used as a rental), you must also have taken the loan out before January 1, 2009; and not owe more than $729,750 on it, must also prove you cannot afford your mortgage because of loss of job, change of income (many folks have been reduced to working 4 days a week) and there are several other factors that must qualify as well. 


As far as short sales are concerned, lenders can receive a $1,000 payment from our U.S. Treasury, and basically then the lender would treat it as full repayment instead of a short sale.  The Treasury will also pay the second lenders up to $1,000 so they don't stop the deal from happening like they so often do.  Then, the short sale does not go through which is very frustrating.

There are many other new options out there, check with your bank and see if you can now do a loan modification which would be best overall.  Also, check with your tax professional as to the new laws and how this can affect you.

Make it a great day!

Joan Patterson, B.A., A.S.P., G.R.I., Realtor, License # 0141647
Keller Williams Realty
8250 White Oak Avenue, Ste 102
Rancho Cucamonga, Ca 91730
951-204-1864
www.calljoan4homes.com
calljoan4homes@aol.com