You are not alone, many home owners are in the same boat as you. The economy, high cost of living, job losses and loan adjustments have forced many home owners to fall behind on their mortgage payments. You do not have to let your home go into foreclosure. Thanks to programs proposed by Fannie Mae many lenders are more willing to offer a Loan Modification from your bank. A Loan modification changes your loan to an affordable payment. The bank may re finance the home at a lower rate making the loan more manageable. They may also extend the term of the loan or add on delinquent payments to the loan principal . Your first step would be to contact your lender tell them you are falling behind & ask if a loan modification is available for you. Please act fast, once foreclosure proceedings start a loan modification may not be available and it will be too late to stop foreclosure. Call me for assistance or read on for info on who to call & what to do. My assistance does not cost you a penny, I believe in the American Dream & want to help you save your home. Contact me or call 774-930-8181 Section 1403 of the new housing bill that was signed into law on July 30, 2008 (HR 3221) requires mortgage services to modify loans for homeowners and help them avoid foreclosure as long as three requirements are met:
1. Default on the mortgage either has already happened or is “reasonably foreseeable” 2. The home owner is living in the property as his or her primary residence 3. The lender is likely to recover more through the loan modification or workout than by forcing the home owner into foreclosure When negotiating a loan modification with your mortgage lender, it is advisable to follow this four step process: 1. Make sure you are dealing with your lender’s loss mitigation and/or work out department 2. Write a hardship letter demonstrating job loss, serious medical condition, balloon payment coming due, adjustable rate reset or some other financial calamity that will make it impossible for you to continue making your mortgage payments as scheduled. Unless you are in imminent danger of default as required by this new law, lenders are not likely to work with you. 3. Send the lender your financial statements, employment records, tax returns and bank statements demonstrating how you would be able to afford the modified loan terms under your present financial circumstances 4. Send the lender a current appraisal of your home or some documentation (CMA) on recent comparable sales in your neighborhood demonstrating the current value of your home. “The key is to demonstrate how the lender is likely to recover less money through foreclosure than they would by working with you in your proposed loan modification plan,” I would be happy to provide a CMA for you at no cost. Here is a sample letter that you can use during your renegotiation: http://www.cmpsinstitute.org/pdf/SampleLoanModificationRequest.pdf If you're struggling to keep up with your payments, contact the Hope Now Alliance at hopenow.com or call 1-888-995-4673 to speak to a counselor. It may be advisable to consult with an attorney - especially if you qualify for a loan modification under the law and your lender still refuses to work with you. Again contact your lender as soon as possible before it is too late. If a loan modification is not available & you find you must sell your home I invite you to give me a call to discuss other options available to you. All inquiries are in the strictest of confidence. You can reach me at (508) 636-3310 or Contact me . Home Owners that must sell, that do not have equity in the home, meaning they owe more than the home is worth, should consider a Short sale. Not every one qualifies for a short sale You have to have a hardship. Examples of hardship are: - Unemployment, Job Loss, Lost Wages
- Divorce or separation
- Medical emergency / sudden illness
- Bankruptcy
- Death
A "Short Sale" will avoid the embarrassment, humiliation and stress of a foreclosure and have less of an impact on your credit. In a Short sale you put your home on the market with your Realtor, at market value. When a buyer is found the paperwork is submitted to your lender, asking your mortgage holder to take less or "short" of what is owed to them. Lenders prefer a short sale because it saves them time & money. As your Realtor I help & handle all aspects of the sale for you, you do not even have to talk to your lender. Benefits of Short sale over Foreclosure. In a Short sale: * negotiate with the bank (s) to pay all fees including real estate agent * seller's credit bruised * no attorney fees * peace of mind, move on with your life * buy again in two years * * liens negotiated, request lender to forgive the debt. Foreclosure * foreclosure notice, auction notice and court settlement advertised in the local newspaper (embarrassing) * A foreclosure is considered one of the most serious defaults possible on a credit history. That could make it difficult to rent an apartment,secure a job, get a line of credit or buy a home. Some insurance companies also charge higher rates for persons with bad credit. A foreclosure could affect your life for years to come. * Bank most likely will file a Deficiency Judgement against you. In addition to the money they lost on the loan amount. All fees will be added. Including the Auction, Hefty attorney fees, taxes, realtor commissions etc. They want you to pay the money they lost back. You are obligated to repay the money. * no peace of mind- Can be put out of the home on short notice by a Sheriff * Cannot buy a home again for 5 years -10 years * all liens exhausted Call me today at ( 774 ) 930-8181 for more information All calls are confidential and you are under absolutely no obligation. Or email me * Disclaimer: This information is provided to give you an idea of your options. I strongly advise you to seek legal, tax and other advice from professionals in those areas . Karen Ann Martin Realtor Re/Max Right Choice Real Estate Fall River MA (508) 636-3310 www.WestportMaHomes.com |