I am angry at lenders who will not work with home owners that are making an real effort to pay their mortgage (at a reasonable monthly payment). That is why I specialize in helping people like you, and without any obligation or upfront charges.
Foreclosure is not an option. It ruins your credit, makes it difficult for you to rent, and keeps you from home ownership for an extended period of time. Loan modifications work when you can prove the ability to pay a reasonable payment and short sales are another option, when you do not have the income to make a reasonable payment. Usually, while you are in negotiations with the lender, they will hold off on selling your home in a foreclosure proceeding. That does not mean that they will not file the Notice of Default and set themselves up to sell you home if all negotiations fall apart.
One thing is sure, both loan modifications and short sales can take months to complete. During this time, you live in the home and can save all the money you would normally be paying in mortgage payments. This should help give you some seed money, either for negotiating power with the bank or for moving when you can no longer stay in your home. Either of the above alternatives puts you back in control of your life. Isn't this better than just sitting back and waiting for the marshall to kick you out of your home?
It would be my pleasure to work with you to make sure that you have some control over the outcome of your home. Contact me directly and let's discuss how, working together, we can put you in a better position. You can contact me through my profile or call the phone number listed there. I encourage you, do not give up until you have tried everything. Dare to Dream.
Real Estate Consultant
RE/MAX Palos Verdes Realty
Century 21 My Real Estate Co.
First, you must continue to pay your mortgage payment. Next immediately call your loan servicer and ask for the assets dept., not customer service or the loss mitigation departments, as neither of these departments can make a final disposition. It is the assets department that is responsible for analyzing your situation and determining the final outcome. Once the assets dept. has determined that a modification is in the best interest of all parties, they will submit an approval for loan modification including the new terms along with a case confirmation number directly to the loss mitigation department which will now, with the approval having been submitted to them, draft the new terms and institute the newer loan payment structure. Now it is important to understand that this is still not a guarantee that this will help in your case. You must be firm and you must make the new payments without failure. Note: I am not an attorney, and do not claim to be. I am simply passing on information learned from an experienced source. This information is meant only to offer you a different direction to try, and is not to be construed as legal advice or councel. If you have any legal questions, please consult your attorney. Good luck to you.
You need to see an attorney and file an action before it goes to sale. Herein is a APPROVED GSE letter you need to send to cover yourself.
(I am overwhelmed with responses for assitance and would prefer to post the letters on line here)
Dear Wrongful Servicing
According to Section 1403 of HERA that is effective immediately, you have a legal obligation to
modify the terms of my loan if the net present value you expect to receive (and pass on to your
investors) from the modified loan terms exceeds the value you would expect to receive through
Also, according to the recent IRS revenue procedures listed above, the tax status of your investors (if they are REMICs or REITs) may not be adversely impacted by modifying my loan provided that certain conditions are met (as outlined by the IRS).
According to Fannie Mae Announcement 08-31, you have the authority to modify my loan once I notify you and prove that default is reasonably foreseeable. With these things in mind, I am hereby notifying you and
requesting that you modify the terms of my loan so that I can avoid foreclosure and so that you
can fulfill your fiduciary obligation to your investors.
I have enclosed a hardship letter outlining the details of my present situation and how the current mortgage terms are obviously unaffordable for me. Unless you modify the terms of my mortgage, default and foreclosure will be my only remaining option. Therefore, foreclosure is â€œreasonably foreseeableâ€ as outlined in the wording of Section 1403 of HERA.
I have also enclosed financial statements, tax returns, employment records and bank statements that demonstrate how, under my present financial circumstances, I would be able to afford the following terms:
_____% = Proposed Fixed Interest Rate
$_______________ = Proposed Mortgage Balance
$_______ = Proposed monthly payment based on _______ months to pay off the loan
Further, I have attached supporting appraisals/comparable sales from my neighborhood demonstrating that my home is likely only worth approx. $_______________ and you will probably only recover $_______________ before fees and real estate commissions if you were to foreclose on my home and try to sell it under current market conditions. With these things in mind, I request that you modify the terms of my mortgage loan as required by law. If you fail to comply with this request, I will have no other choice than to pursue all remedies available under the law in order to save my home from foreclosure.
I'm so sorry to hear about your unfortunate situation. You really need to contact your loan company ever day if you want to get any response from them. One or two phone calls just won't do it. They have forgotten about you the minute they hang up. I work with an agent that is very skilled and has alot of knowledge in this field. Please contact me if you would like me to refer her to you.
Good luck to you and I hope everything works out well.
Just to clarify Jeremy's remarks, it's a minimum of almost FOUR MONTHS before your house can be foreclosed and perhaps a little longer due to the law Jeremy wrote about. As soon as a Notice of Default is recorded, you have three months to bring your home current. Then, the lender must advertise the sale three times -- at least one week apart before foreclosure can occur. So if you do the math, you have three months plus three weeks -- or almost four months total.
SB 1137 was passed last year which requires lenders to wait at least 30 days after contacting the borrower to inform them about alternatives to foreclosure (one of which is a loan mod) BEFORE they can record the notice of default.
If a NOD has already been recorded then you can do the math from that recording date and figure out the earliest the bank could foreclose. Once the home is foreclosed, the bank will typically want you out right away, so they can go about their business of getting the house back on the market quickly. So rather than engaging in a lengthy eviction process, they'll usually offer the former owner or tenant a cash incentive (i.e. $1,000-$2,000) to move out immediately (the "cash for keys" that Jeremy wrote about).
Hope that helps answer your question. And good luck!!
Like Shel-lee said below, you do have other avenues you can try. If you are sure you are going to lose your house to foreclosure, you should get packed up soon, so you have the ability to move when you WANT to rather than on a WHIM when the bank forces you too. Also, by looking for a rental now, you will have better credit than in a month or two with the foreclosure on your record. Also, property management companies and landlords are recognizing that there is a qualified pool of renters with a foreclosure on their record now. You will still be able to rent, but may be asked for a bigger deposit.
Most of the agents on Trulia in our area are qualified to discuss all of your options with you. I am happy to answer any questions for you via email, phone, or appointment. Selling your home via the Short Sale process is one of them. I just sold my last listing in Long Beach in 17 Days and have recently set up a short sale team just to handle these transactions.
Good luck to you,
Century 21 Beachside