Ok, this is creepy. Finally signed off for the night around 2:15am,(yes it is 6:15am now, don't ask). Received this email at 2:28am about mortgage modifications. I had to laugh because the article explains that the video has been put together by "Private Mortgage Insurance" companies. Ironically what my last post was about. These companies are getting hit hard with claims and it is nearly impossible for them to track the lenders they insure as to their dealings with the homeowner. The lenders are taking the path of least resistance and just not dealing with the homeowner and taking the insurance claim. The PMI companies can not hold the lenders accountable until everyone speaks up and notifies them of what their lender is doing. Ok, I beat a dead horse. Out......
and be safe tonight. please dont drink and drive.
http://realtytimes.com/rtpages/20091231_mod.htm
Thursday, December 31, 2009
Short Sales and Loan Modifications
If individuals are having issues with modifying their loans or getting a response from their lender(s) during a short sale, they need to be asking their lenders if they are carrying private mortgage insurance. Many homeowners are completely unaware that just because they put 20% down or did some type of hybrid loan (80/10/10 or 80/20) to avoid having to pay the extra mortgage insurance (otherwise known as PMI or MIP depending on type of loan) that the lenders can still take out an insurance policy after the fact to cover themselves. If your lender(s) are not cooperating, there is a good chance your loan is insured by one of the private mortgage insurers. The lenders are all about making money. There is nothing ethical or moral about their decisions except for the bottom line. If they foreclose on your home, they file a claim for their loss and get your bad loan off the books. Why should they modify it? There is no incentive for them to do so. Your home is considered a toxic asset (oxymoron) and frankly the banks want you to foreclosure so they can get it out of their portfolio.
Most modifications consists of interest rates adjustments only. Very rarely does it involve principal reduction. So in a sense, you will still be "renting" your home until the value goes back up. Factor in the average 5-6% appreciation when the economy improves and you could be "renting" your home for a very long time. The principal balance owed will be upside for sometime continuing to drag down the lenders portfolio values. You must keep records of every conversation especially all phone operators id numbers. Keep in mind that the private mortgage insurance can be taken out at any time by your lender. If your loan is not Fannie or Freddie, that means a private investor(s) are holding the note and there is a strong possibility your loan will have this hidden insurance without your knowledge.
First step: Find out if your loan has private mortgage insurance paid for by the lender themselves. Call your lender 3 separate times to make sure you get the same answer at least twice. Most lenders have call centers of people who get yelled at all day. Call early in the morning for best answer before they have been abused. Many lenders are on East Coast Time.
Second step:
If Yes, take your issue to a higher source. I will indicate resources to file a complaint in a subsequent post. Get the name of the private mortgage insurer and make them aware that your lender is not co operating with you. Many of these mortgage insurers are now coming after the lenders for their losses when they find out the lenders had an opportunity to prevent the foreclosure and did nothing about it.
If No, good luck, although this is highly not advisable but a known fact in the industry, "Why fix what aint broke?" As long as you are making payments they have no incentive to work with you. No one will ever tell you to stop making payments, but why do the lenders only pay attention to the files that are at least 3 months behind in payments?
One organization that has an 80% success ratio in getting loans modified is http://www.naca.com/. Went to one of their presentations to educate myself after a newscast about them. (I dont always believe or trust what I hear on the news). Very legite and the people truly have a passion for stoping foreclosures. They are bullying the banks to modify and they have the connections to do so.
Step 3: Wait. Loan modifications can take from 60 days (smaller banks) to over a year with larger banks (such as Aurora Loan Services).
It is truly horrible what has come of our corporate industry ethics. It is not even human anymore. A cancer has infected the whole industry starting with Wall Street and spreading like wildfire throughout corporate america. There is much more happening behind what the morning news is told to report to the faceless unknowning minds that observe. All of the Obama plans have been made optional for the lenders to participate in and since his administration has apparently been unaware of this private mortgage scheme going on, all of his attempts to help have been bust. I think the last statistic I heard was that less than 10% of eligible loans had actually benefited from his plans. Why is that? (Hint, BECAUSE THE BANKS ARE GETTING PAID TO FORECLOSE ON YOUR HOME)
But who am I? Just a little unknown Realtor in Buckeye Arizona trying to keep my neighborhood and yours from declining more in property value by these infected tumors.
peace.
Most modifications consists of interest rates adjustments only. Very rarely does it involve principal reduction. So in a sense, you will still be "renting" your home until the value goes back up. Factor in the average 5-6% appreciation when the economy improves and you could be "renting" your home for a very long time. The principal balance owed will be upside for sometime continuing to drag down the lenders portfolio values. You must keep records of every conversation especially all phone operators id numbers. Keep in mind that the private mortgage insurance can be taken out at any time by your lender. If your loan is not Fannie or Freddie, that means a private investor(s) are holding the note and there is a strong possibility your loan will have this hidden insurance without your knowledge.
First step: Find out if your loan has private mortgage insurance paid for by the lender themselves. Call your lender 3 separate times to make sure you get the same answer at least twice. Most lenders have call centers of people who get yelled at all day. Call early in the morning for best answer before they have been abused. Many lenders are on East Coast Time.
Second step:
If Yes, take your issue to a higher source. I will indicate resources to file a complaint in a subsequent post. Get the name of the private mortgage insurer and make them aware that your lender is not co operating with you. Many of these mortgage insurers are now coming after the lenders for their losses when they find out the lenders had an opportunity to prevent the foreclosure and did nothing about it.
If No, good luck, although this is highly not advisable but a known fact in the industry, "Why fix what aint broke?" As long as you are making payments they have no incentive to work with you. No one will ever tell you to stop making payments, but why do the lenders only pay attention to the files that are at least 3 months behind in payments?
One organization that has an 80% success ratio in getting loans modified is http://www.naca.com/. Went to one of their presentations to educate myself after a newscast about them. (I dont always believe or trust what I hear on the news). Very legite and the people truly have a passion for stoping foreclosures. They are bullying the banks to modify and they have the connections to do so.
Step 3: Wait. Loan modifications can take from 60 days (smaller banks) to over a year with larger banks (such as Aurora Loan Services).
It is truly horrible what has come of our corporate industry ethics. It is not even human anymore. A cancer has infected the whole industry starting with Wall Street and spreading like wildfire throughout corporate america. There is much more happening behind what the morning news is told to report to the faceless unknowning minds that observe. All of the Obama plans have been made optional for the lenders to participate in and since his administration has apparently been unaware of this private mortgage scheme going on, all of his attempts to help have been bust. I think the last statistic I heard was that less than 10% of eligible loans had actually benefited from his plans. Why is that? (Hint, BECAUSE THE BANKS ARE GETTING PAID TO FORECLOSE ON YOUR HOME)
But who am I? Just a little unknown Realtor in Buckeye Arizona trying to keep my neighborhood and yours from declining more in property value by these infected tumors.
peace.
Monday, December 28, 2009
Qoute of the Day
"Maturity is achieved when a person postpones immediate pleasures for long-term values." Joshua L. Liebman
Saturday, December 26, 2009
Love is.........
If I speak in the tongues of men and of angels, but have not love, I am only a resounding gong or a clanging cymbal. If I have the gift of prophecy and can fathom all mysteries and all knowledge, and if I have a faith that can move mountains, but have not love, I am nothing. If I give all I possess to the poor and surrender my body to the flames, but have not love, I gain nothing.
Love is patient, love is kind. It does not envy, it does not boast, it is not proud. It is not rude, it is not self-seeking, it is not easily angered, it keeps no record of wrongs. Love does not delight in evil but rejoices with the truth. It always protects, always trusts, always hopes, always perseveres.
Love never fails....And now these three remain: faith, hope and love. But the greatest of these is love.
GOD
Love is patient, love is kind. It does not envy, it does not boast, it is not proud. It is not rude, it is not self-seeking, it is not easily angered, it keeps no record of wrongs. Love does not delight in evil but rejoices with the truth. It always protects, always trusts, always hopes, always perseveres.
Love never fails....And now these three remain: faith, hope and love. But the greatest of these is love.
GOD
Friday, December 25, 2009
November Birthday Meaning According to Facebook :)
NOVEMBER BIRTHDAYS: Unique and brilliant. Has a lot of ideas. Difficult to fathom. Thinks forward. Extraordinary ideas. Sharp thinking. Fine and strong clairvoyance. Can become good doctors. Dynamic in personality. Secretive. Inquisitive. Knows how to dig secrets. Always thinking. Less talkative but amiable. Brave and generous. Patient. Stubborn and hard-hearted. If there is a will, there is a way. Determined. Never give up. Hardly becomes angry unless provoked. Loves to be alone. Thinks differently from others. Sharp-minded. Motivates oneself. Does not appreciate praises. High-spirited. Well-built and tough. Deep love and emotions. Romantic. Uncertain in relationships. Homely. Hardworking. High abilities. Trustworthy. Honest and keeps secrets. Not able to control emotions. Unpredictable.
Friday, December 18, 2009
Qoute of the Day
"Many things in life will catch your eye but few will catch your heart... Pursue those." - Author Unknown -
Thursday, December 17, 2009
Trans Siberian Orchestra - Carol of the Bells
There is nothing like the spirit of Christmas through the eyes of a child.....especially a precious little baby girl
I dedicate this to my beautiful daughter - may she never lose that spirit
http://www.youtube.com/watch?v=alIcwofkrS8&feature=player_embedded
I dedicate this to my beautiful daughter - may she never lose that spirit
http://www.youtube.com/watch?v=alIcwofkrS8&feature=player_embedded
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