Just announced today HAMP's new guidelines comming out by June 2012.
Rental properties will now be covered as long as it is a rental not a vacant second home.Â
If a home owner pas previously denied for excessive forebearance or Negative NPV the servicers will not be able to reduce the debt to income (POTENTIALLY) Â DOWN TO 25% OF GROSS INCOME!!!
Previously, if you defaulted on a loan modification payment you were not eligable to re-apply. Â No, you may be able to.Â
PRINCIPAL REDUCTION ALTERNATIVE LOAN MODIFICATION.
If your home is underwater by 115% or more you (MAY) Â qualify for a principal reduction or forbearance.
This is excellent news
Our firm has gotten several principal reductions approved.
You need to start off knowing what your net present value is.
For a free consultation, please call
925 699 5041
We are not affiliated with your lender nor are we affiliated with the government. Â .Â
Home owners who are facing a financial hardship may already have enough stress.
Important things to do when your faced with a foreclosure or financial hardship.
Just as you would balance your check book each month. Â Or every so often, to make sure:
1: Â Your balance is correct
2: Â You are not being charged for something you didnt buy, etc
You should also send your lender a QWR, Qualified Written Request, Dispute of balance and potentially dispute of unauthorized charges to your account.
You may think this is too much hassle. Â However, there are home owners who are doing modifications on their own and signing with out reading or verifiying their loan balance. Â Why would you do this??
A QWR is sent to the lender for a number of things, I found in one recent clients Loan History the lender actually charged the client for principal and interest when they were only supposed to charge interest. Â What this does is then the principla will accrue, not only unpaid interest. Â this is a negam loan. Â Which gives rise potentially, to a Breach of Contract issue... Â Â
You want to get the life of loan transaction history go thru it as much as you can. Â
You want to ask the lender for your Note and Deed of trust with Proper legal assignments and endorsements. Â Simply asking for the note alone is easy for the lender to provide but means NOTHING IF IT IS NOT ENDORSED AND ASSIGNED PROPERLY!!. Â
If you insist on doing your own modification you should at least do these two things.
If your looking for an Attorney do do your modification make sure they send a QWR, and go thru life of loan history.Â
Not all attorneys are the same. Â Some attorneys do loan mods very simply, however why would you want to do a loan mod and agree to terms you are not legally responsible for??
Example, Â servicers continually add charges to escrow balances that are not allowed. Â These need to be verified that they were paid, who was paid and what the services were for.
You have this right with consumer protections laws.
One last thing, Â if your trying to modify your loan and you continually received letters from realtors or other investors who state, Â You have a sale date at this time and this day , without addind a disclosure that they themselves have not verified this information TURN THEM IN!!!
I believe this to be a scare tactic that some realtors use to get you to short sale your home. Â if they do not also include informaiton on a modification they "MAY" not be performing their fiduciary duty.
My clients get these letters and I ask them to keep them and send them to me. Â Typically the letter has and Outdated and unverified sale date highlighted and they send a letter to the home owner or actually knock on thier door. Â My clients are instructed to ask for their card, this sent a realtor away from the home and hopefully he will think about this practice. Â If we have Fair Debt Collection Practices that prevent debt collectors from knocking on our door or sending us POST CARDS Â we should be given the same protections agains realtors or investors or even attorneys who are trying to scare us into using them.
I called a company last week, and the rep actually twisted two entirely differnt things together. Â He said attorneys representing homeowners for modifications are illegally singing documents.Â
Obviously is it attorneys representing SERVICERS!!! Â Some people will use what ever scare tactic they can to sell and make a commission.Â
NOT INTENDED AS LEGAL ADVICE.
IN MY OPINION YOU SHOULD SEEK THE ADVICE OF AN ATTORNEY WHEN SEEKING A LOAN MODIFICATION OR SHORT SALE FOR YOUR LEGAL PROTECITON.
925 699 5041
With so much confusion every where I want to let home owners know that lenders do modify loans.
Some lender will do principal reductions or forberances of the amount over what you owe.Â
Our Law Firm recently got a modification for our client a 3.5% interest rate fixed for the life of her loan and a principal reduction to the current market value.
She was current!!
She had a negative amortization loan.
She had income.
Her home was underwater.
She was payinging more than 31% of her income to her FIRST mortgage, principal interest taxes and insurance..
Loan Modifications do happen. Â
If you want to keep your home and you have income, (even reduced income) Â please consult with with myself or any attorney who specializes in loan modificaitons and who does not charge an up front fee. Â In California SB94 no advanced fees for Loan Modifications. Â
If you are being told that you can only short sale, think about the sorce. Â Will they benefit from your short sale???
Our Principal Reduction Program: Â first we will work on a Loan Mod, or settlement or short refi, if we are not able to accomplish one of those then we will short sale your home only after extinguishing all efforts. Â If we short sale your home we will try to negotiate Cash for Keys. Â Depending on the lender and the scenario you may get between $2,500 to $7,500 to surrender your keys for moving expenses. Â
Please call JoAnna Jensen
Volo Law Group
925 699 5041