Foreclosure in Sacramento>Question Details

Nismodude05, Home Buyer in Sacramento, CA

I'm also close to 90K upside down on my house. My situation is that my ARM doesn't hit for another 3 years.

Asked by Nismodude05, Sacramento, CA Tue Dec 2, 2008

I still can't seem to afford my current payment. I'm piling up my credit card debt with Property Tax, Home and Auto Insurance, because I don't have anything left after paying the MTG. I've already contacted my lender and since I'm current on my payments, they don't want to help me. Couple more months my credit cards will max out and I won't be able to keep up. There are some Loan-Mod companies out there, but I hear 90% of them are scams. I'm working with one service out here, but they seem to want $2500 up front and if it's a scam, I can't afford to lose that kind of money. I can't short sell/foreclose either because I hear nowdays they want a hefty chunk for a new house as a down payment...Any suggestions anyone?

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I work as a "home retention" consultant... thats a new one even for me!
2 votes Thank Flag Link Tue Dec 2, 2008
Look up under Titanium Solutions. It's Banks hire licensed realtors to contact their clients when clients have not answered phone calls and letters in order to try to work out a solution. As an HRC (home retention consultant) you receive a small stipend ($50-100 depending if a BPO is required). You exhaust all avenues before suggesting they short sale their home. If they decide to short sale it, and list through you, then you pay a referral fee when it closes. But you have a direct negotiator already on board from the bank before you even start the process.

They are always looking for more people to help so please consider it. We need to help these people who are in financial distress and not just offer to short sale their homes. So for my personal clients, I follow the same procedures as I do while under contract for Titanium Solutions. My objective is to facilitate a 'warm transfer' to their lender, with them prepared on what information the lender may need. I do not collect any personal financial information from them in my possession.

Yes, Home Retention Consultant is an actual service and you're welcomed to help too! (this may not relate to this question but David asked....)
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1 vote Thank Flag Link Tue Dec 2, 2008
Reality check.. Buying a house wont be for another few years. There are only 13 companies that are approved by the DRE to do loan mods. I would suggest finding one of those. You need to establish a hardship with your current lender in order to start the short sale process.

If you can, rent a room or 2 out for the added income. Can you rent your current place out at your mortgage payment or close to it? Renting it out while you rent a more affordable place might be the best suggestion I have.

Ease up on credit card use.. because that will be your next headache.
1 vote Thank Flag Link Tue Dec 2, 2008
I work as a home retention consultant, as well as a realtor, and can discuss with you what your options might be. I don't recommend working with the loan mod companies either, when they charge the up front fees. ESPECIALLY ATTORNEYS. While some may be effective, I'm not seeing ANY RECOURSE when they don't perform....sure would like some more regulations on that.

The wrong solution is to be maxing out your credit cards. You're working your way to a bankruptcy.

Each lender has different policies, and some require that you're late before they will negotiate with you. Some don't. Preparing your paperwork correctly to speak with your lender is required whether you use a service or not to request a loan mod. And if the lender says no the first time, they may say yes when asked repeatedly. ...and you may WANT to be late on a payment. It's too early for you to decide...

What you need is to understand your financial situation clearly. That may take a credit counseling service to help you understand them. You may have to cut back on some expenses, you may have to look at discovering how to make more income....all of that is things to consider. It's always about money in and money out to see how to make it all work.

The point is that it's painful to look at the real story, but necessary to not only handle the current situation but to see where you want to be in the future.

So if you want to talk about the whole landscape I can give you the method to do that. It will involve relying on some expertise of possibly your tax advisor, legal counsel as well as financial counseling. None of those people are me. But I can help get your plan in place on how to resolve it. I do this for my clients in order to see if a short sale really is their best option, or whether we can save their home if that's what they want.
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0 votes Thank Flag Link Sun Apr 26, 2009
Don't pay for a loan mod! Contact me thru my website and I will send you loan mod docs and info.
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0 votes Thank Flag Link Sun Apr 26, 2009
The Hagley G…, Real Estate Pro in Pleasanton, CA
No company should charge you money upfront for a service they haven't performed. You need to find a company that will work based on the results you want and need. However if you can't afford the payments you might want to consider other options.
0 votes Thank Flag Link Sun Apr 26, 2009
Get a grip on the predatory options available to you. Ask the loan Mod company the following:

Does the Pass through investment filed under SEC Blue Sky laws state the secondary investor can modify a loan?
Does the modifcation require a repurchase by teh originator "Depositor"/
What is there tracking method for compliance of CC 2923.5 ammended Code?
What is the back up for an eventual threat of trustees sale?
0 votes Thank Flag Link Sat Apr 4, 2009
I also work with Titanium Solutions in the Milwaukee Wisconsin area and also am able to help homeowners without charging an up front fee. We try to work out a solution to the homeowners situation and if I am not able to find a better solution we do list the home and short sale it out. I would check into this company. See if they have an agent in your area that will be able to work with you. Good luck. We do not charge an up front fee. For more information about short sales check out my web site at
0 votes Thank Flag Link Sun Dec 28, 2008
Stop doing what you're doing. And don't rent out your house. Don't pay a loan mod company.

Get educated.

Each lender is handling their clients that are distressed in different ways- different policies... But almost all have different departments who's objectives are different. Customer Service are the ones who call you and threaten you when you're late in a payment. Loss mitigation want to work with you to understand the current situation. They will normally want to refer you to their refinance, or loan modification department. Sometimes they have other departments called asset preservation or another name like that. Then there's the REO department.

You need to be talking to the loss mitigation department first. You need to prepare a package that includes a hardship letter. financial statement, bank statements, etc. Some banks require that you be late on a payment before they talk to you. Some require you to have your house listed before they talk to you. (Some of their policies don't always make sense). Most do not negotiate on non owner occupied (which is why I say don't rent the whole house out unless you know your bank's policy)

I work as a home retention consultant, as well as a realtor. My responsibility is to provide the forms that a bank would require completed. Explain some of the options, and have the client talk directly to the lender. I do not negotiate on your behalf. if you want to understand how to prepare the documentation your bank will require, just call me. There's no charge. I also make a great cheerleader for you because it's scary...

But there is a solution, and ways to get some sleep at night.

Just remember everyone. Just because someone says no once, does not mean they'll say no the next time you call. It takes perserverance and organization. If we address this problem that is so prevalent head on, with education, and good communication, we can reduce the anxiety of everyone and come up with the best solution possible in a bad situation. Banks want to solve this too. But they have to do the analysis on what is the best resolution for their business and not just be giving away free rides either.

Stay strong Nismodude05. There's a way to solve this. Call me if I can help you develop a plan.
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0 votes Thank Flag Link Tue Dec 2, 2008
Hi Nismodude05,

I am sorry to hear about your current situation, which unfortunately is all too common these days. What mortgage company are you working with? It may be that you are dealing with the wrong department to negotiate your loan modification. I get a couple inquiries per week regarding doing short sales, and if they want to stay in their house, I direct them to attempt to do a modification first. You want to be NOT to deal with the customer service department when you do this, and sometimes they act as a roadblock. You need to talk to the Loss Mitigation department, Workout Department, Hope Department (called different things at different mortgage companies).

Several of the people who have come to me for help have been able to successfully get a loan modification without professional assistance. If you like, shoot me an email with the name of the lender you are with, and if I have contact info for their loss mitigation department, I will provide it to you. Most loan modifications consist of fixing your interest rate, possibly adding years to the duration of your mortgage to lower your payment, etc.

If you do want to go the short sale route, Elizabeth and I are both very good at getting them closed, and either one of us is able to help you there. They are pretty complicated if you do decide to do that, be sure to work with an experienced short sale agent.

As far as any future home purchase, with current underwriting guidelines, you will be a couple years away from that if you successfully complete a short sale. If you go the foreclosure route, with current underwriting guidelines, you will have a longer wait (several years). There is one lender I know of who will lend to someone as soon as 6 months post foreclosure if the rest of your credit picture is acceptable, and you have 20% or more down.

Good luck to you...

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0 votes Thank Flag Link Tue Dec 2, 2008
Erin Stumpf…, Real Estate Pro in Sacramento, CA
You sound as though you wont have much of choice work direct with lenders many are happy to work with you, they dont want a foreclosure. If not you will need to have lender authorize a short sale, which will effect your credit score. If your home is short sale or foreclosure lease a property till you can get back on your feet.
Sorry to hear all.
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0 votes Thank Flag Link Tue Dec 2, 2008
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