.
Q. What kind of Borrower qualifies for a mortgage loan modification?
A. Each lender has its own policies, but the general requirement is that you have a job and be able to prove a financial hardship. This tells your lender two things:
1. Falling behind in your monthly payments wasn’t entirely your fault
2. Modifying your loan can really help you back on your feet.
Q. What is a good example of a modifiable loan?
A. Anyone in financial trouble may be helped, but certain conditions can make our job easier. Ideal clients are those who:
- behind in payments or are already in foreclosure
- have received a notice of default
- have an adjustable-rate mortgage that has already increased
- have negative amortization loans
- are experiencing financial hardships due to bad or predatory lending, income reduction or illness or other “hardship”
- steady source of income to pay the modified payment
The “Text Book” file is a mortgage holder that has an adjustable rate mortgage (ARM) and is having trouble making payments after the adjustment or foresees a problem after the adjustment happens. All types of loans can be modified: ARM’s, negative amortizing loans, interest only loans, investment or commercial property.
Q. Can unemployed homeowners be helped?
A. No. You need a source of income to qualify for mortgage loan modification.
Q. Do you count the income of people who are living in the home but are not on the title?
A. Yes. The total income of the household is considered, not just the homeowner’s income.
Q. I need financial help paying the mortgage payments that are behind. What are my options?
A. Many people think they need to pay off their debts before they can try anything else. That’s simply not the case. Mortgage modifications can be very powerful and very flexible. During a modification, it’s possible to eliminate back payments you owe in addition to lowering your monthly bill.
Q. Do I need to be delinquent or behind in my mortgage?
A. No, but it will make things easier. Loan modification is meant to help people in financial hardship, and banks are more willing to help borrowers in trouble and that typically means you are behind in your payments.
Q. I’m already behind on my mortgage payments, is there anything I can do?
A. There are always options. If you’re behind on your mortgage, you may be a perfect candidate for a loan modification. It can help save you money by lowering your mortgage payments and stop foreclosure process that may be threatening your home.
Q. Is it too late to help clients who are in foreclosure?
A. Definitely not! Foreclosure can be prevented up to a few days before the actual transfer sale date. However, if you are thinking of getting help, please don’t wait until you have received a notice of sale. It’s important to take action.
Q. Can you help me stop foreclosure?
A. In most cases, help to starve off foreclosure is achieved by negotiating with your lender or servicer. Remember they do not want to own your home. That is a lose-lose situation. A hold can generally be put on your foreclosure status, but you’ll need to act quickly. The sooner you begin working on this issue, the easier it will be to stop the foreclosure process - even if you’ve been in the foreclosure process for a while.
Call 904-757-0880 for more information and to see if you qualify for mortgage loan modification.
The credit crunch is in full swing, and everyone is feeling the pressure. Workers and businesses are experiencing the impact because banks aren’t loaning money. Financial institutions aren’t even lending to each other, and you can feel the tension in the air.
The passage of the $700 billion bailout by Congress was supposed to ease fears on Wall Street, but we all watched the stock market tumble over the last week. Now, everyday Americans are wondering how this bailout will affect them, but only time will tell. In the meantime, consumers without great credit aren’t getting any loans.
The real question we should be asking ourselves is how this mess was started. We can all blame both the Republicans for deregulation and the Democrats for trying to give everyone a home. Since no one is solely to blame, we must look at the true cause – subprime mortgages.
From 2001 to 2006, subprime mortgages ran rampant through our country. Greedy banks and foolish borrowers started the economic roller coaster we are all on today. Instead of doing traditional underwriting, such as looking at job history and current debt, banks focused only on credit scores and used the lack of regulation in Washington to sign up uninformed consumers. These financial institutions gave away 105 percent mortgages to people who had no ability to repay the debt, and then sold these mortgages in bundles to Wall Street.
The construction industry fed on these easy mortgages, and the real estate market skyrocketed. Housing prices raced toward their peak. People were buying investment properties left and right because they were excited about the prospect of cashing out in the hot market. But that was the problem -- many of these home loans were given to people with credit histories that wouldn’t have allowed them to get a loan 10 years ago.
Then the real estate market came to a halt, and it started to readjust. Here in Florida the real estate market has been hit hard during the past year. Sales have slowed and prices are falling. The lower prices have left many people owing their lenders more than their homes are worth, meaning the owners can't refinance or sell their homes without paying the difference between their mortgage balances and what the homes are now worth.
Many of our clients are concerned about their own adjustable-rate mortgages and they are looking for answers. Unfortunately, we don’t know when or if we will feel any relief from the Washington bailout. Until then, I encourage you to instruct your clients to follow the basic tips below to help ease their own fears while also preparing for the worst.
1. Reduce unnecessary spending.
2. Have three to six months worth of income in a secure savings account.
3. Pay down credit card debt.
4. Make extra mortgage payments to pay down the principal.
5. Call lenders before a mortgage adjusts to see if they will help.
Douglas Muir, CEO
One major factor in the current foreclosure trend are those people who flipped properties from 2003 to 2006. Many people believe that speculative buying was the biggest cause of the foreclosure boom we are experiencing today.
Many of us heard about people who made tons of money in just weeks by flipping real estate. Flipping is when a person buys property and then sells it for a profit a short time later without ever living in the house or condo in question.
Those tales lured more people into flipping, and in turn drove up real estate prices even higher. An examination of federal mortgage data says speculative buying in the country ran rampant between 2003 and 2006, peaking in 2005.
Now we are experiencing unprecedented foreclosure rates. In Jacksonville, Fla., alone, there are more than 8,700 homes for sale, 4,700 of which are under pre-foreclosure and more than 2,000 of which are bank-owned.
According to the Mortgage Bankers Association (MBA), one out of every 200 homes in America will be foreclosed upon. The MBA also says that every three months, 250,000 new families enter into foreclosure.
These foreclosures are rippling through the economy, and banks have stopped lending money. Even with the government bailout, it may be some time before we see a slowing in foreclosures. We need to instruct our clients to make sure they have the best credit score possible in case they are forced to refinance. Remind your clients of the following tips to help prepare them for refinancing so that they don’t lose their homes.
1. Make extra mortgage payments to pay down the principal
2. Reduce unnecessary spending
3. Review your credit report every six months to ensure that the information is accurate and up-to-date
4. Limit your credit to mortgages, auto loans and only a few major credit cards
5. Pay credit cards and mortgages on time
6. Develop a plan to pay down your debt to less than 40 percent of available credit
7. Stay at your job for longer than one year
8. Systematically pay off your loans starting with the highest interest rate loans
9. Keep telephone and utilities in your name
10. Don’t needlessly open new accounts
Douglas Muir, CEO
For example, if the credit repair company only sends out five letters a month, this process could take one to two years to increase the clients’ scores, resulting in nearly $2,000 in fees.
The other problem with the large Internet credit-repair companies is that The Fair Credit Reporting Act states that any third party sending out dispute letters on behalf of its client can be considered frivolous and therefore discarded by the credit bureaus. The Internet companies do not have their clients send the letters, and instead they send the letters for their clients. Due to the FCRA law, the credit companies can just ignore the letters.
The law further states that if a consumer disputes the accuracy of his credit report it must be investigated or deleted within 30 days. If the repair company is sending out letters on its client’s behalf, and the credit bureaus can ignore claims made by third parties, then the repair companies’ attempts most likely will not be successful. What good does that do the consumer?
That is why consumers need a company like Credit Justice Services (CJS). Employees at CJS help consumers fight negative information in a timely and direct manner.
The reason CJS has a high success rate is because it’s open and transparent about the credit repair process. It provides clients with a clear-cut timeline, which ensures the consumer isn’t wasting time or money.
CJS is also successful because it has a detailed and proven process for disputing the negative items. By having our clients review and sign each letter, we can make certain that the credit bureaus take disputes seriously. It our proven approach that has helped more than 18,000 people since 2004.
Douglas Muir, CEO
view all blog entries...
Mar 2010
FAQ on Mortgage Modification Program
Te purpose of a mortgage loan modification is to simply help the home owner remain in their home with monthly payments that they can afford. Recent government incentives make mortgage loan modification a win/win situation for both the home owner and lender.
by valeria on Mon Mar 01, 2010 7:11 pm
Q. What kind of Borrower qualifies for a mortgage loan modification?
A. Each lender has its own policies, but the general requirement is that you have a job and be able to prove a financial hardship. This tells your lender two things:
1. Falling behind in your monthly payments wasn’t entirely your fault
2. Modifying your loan can really help you back on your feet.
Q. What is a good example of a modifiable loan?
A. Anyone in financial trouble may be helped, but certain conditions can make our job easier. Ideal clients are those who:
- behind in payments or are already in foreclosure
- have received a notice of default
- have an adjustable-rate mortgage that has already increased
- have negative amortization loans
- are experiencing financial hardships due to bad or predatory lending, income reduction or illness or other “hardship”
- steady source of income to pay the modified payment
The “Text Book” file is a mortgage holder that has an adjustable rate mortgage (ARM) and is having trouble making payments after the adjustment or foresees a problem after the adjustment happens. All types of loans can be modified: ARM’s, negative amortizing loans, interest only loans, investment or commercial property.
Q. Can unemployed homeowners be helped?
A. No. You need a source of income to qualify for mortgage loan modification.
Q. Do you count the income of people who are living in the home but are not on the title?
A. Yes. The total income of the household is considered, not just the homeowner’s income.
Q. I need financial help paying the mortgage payments that are behind. What are my options?
A. Many people think they need to pay off their debts before they can try anything else. That’s simply not the case. Mortgage modifications can be very powerful and very flexible. During a modification, it’s possible to eliminate back payments you owe in addition to lowering your monthly bill.
Q. Do I need to be delinquent or behind in my mortgage?
A. No, but it will make things easier. Loan modification is meant to help people in financial hardship, and banks are more willing to help borrowers in trouble and that typically means you are behind in your payments.
Q. I’m already behind on my mortgage payments, is there anything I can do?
A. There are always options. If you’re behind on your mortgage, you may be a perfect candidate for a loan modification. It can help save you money by lowering your mortgage payments and stop foreclosure process that may be threatening your home.
Q. Is it too late to help clients who are in foreclosure?
A. Definitely not! Foreclosure can be prevented up to a few days before the actual transfer sale date. However, if you are thinking of getting help, please don’t wait until you have received a notice of sale. It’s important to take action.
Q. Can you help me stop foreclosure?
A. In most cases, help to starve off foreclosure is achieved by negotiating with your lender or servicer. Remember they do not want to own your home. That is a lose-lose situation. A hold can generally be put on your foreclosure status, but you’ll need to act quickly. The sooner you begin working on this issue, the easier it will be to stop the foreclosure process - even if you’ve been in the foreclosure process for a while.
Call 904-757-0880 for more information and to see if you qualify for mortgage loan modification.
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Don’t be scared – be prepared
Consumers need to take personal action to protect themselves
by valeria on Mon Mar 08, 2010 6:24 pm
The credit crunch is in full swing, and everyone is feeling the pressure. Workers and businesses are experiencing the impact because banks aren’t loaning money. Financial institutions aren’t even lending to each other, and you can feel the tension in the air.
The passage of the $700 billion bailout by Congress was supposed to ease fears on Wall Street, but we all watched the stock market tumble over the last week. Now, everyday Americans are wondering how this bailout will affect them, but only time will tell. In the meantime, consumers without great credit aren’t getting any loans.
The real question we should be asking ourselves is how this mess was started. We can all blame both the Republicans for deregulation and the Democrats for trying to give everyone a home. Since no one is solely to blame, we must look at the true cause – subprime mortgages.
From 2001 to 2006, subprime mortgages ran rampant through our country. Greedy banks and foolish borrowers started the economic roller coaster we are all on today. Instead of doing traditional underwriting, such as looking at job history and current debt, banks focused only on credit scores and used the lack of regulation in Washington to sign up uninformed consumers. These financial institutions gave away 105 percent mortgages to people who had no ability to repay the debt, and then sold these mortgages in bundles to Wall Street.
The construction industry fed on these easy mortgages, and the real estate market skyrocketed. Housing prices raced toward their peak. People were buying investment properties left and right because they were excited about the prospect of cashing out in the hot market. But that was the problem -- many of these home loans were given to people with credit histories that wouldn’t have allowed them to get a loan 10 years ago.
Then the real estate market came to a halt, and it started to readjust. Here in Florida the real estate market has been hit hard during the past year. Sales have slowed and prices are falling. The lower prices have left many people owing their lenders more than their homes are worth, meaning the owners can't refinance or sell their homes without paying the difference between their mortgage balances and what the homes are now worth.
Many of our clients are concerned about their own adjustable-rate mortgages and they are looking for answers. Unfortunately, we don’t know when or if we will feel any relief from the Washington bailout. Until then, I encourage you to instruct your clients to follow the basic tips below to help ease their own fears while also preparing for the worst.
1. Reduce unnecessary spending.
2. Have three to six months worth of income in a secure savings account.
3. Pay down credit card debt.
4. Make extra mortgage payments to pay down the principal.
5. Call lenders before a mortgage adjusts to see if they will help.
Douglas Muir, CEO
Who else is there to blame?
Understanding how flippers affected the market.
by valeria on Mon Mar 15, 2010 6:27 pm
One major factor in the current foreclosure trend are those people who flipped properties from 2003 to 2006. Many people believe that speculative buying was the biggest cause of the foreclosure boom we are experiencing today.
Many of us heard about people who made tons of money in just weeks by flipping real estate. Flipping is when a person buys property and then sells it for a profit a short time later without ever living in the house or condo in question.
Those tales lured more people into flipping, and in turn drove up real estate prices even higher. An examination of federal mortgage data says speculative buying in the country ran rampant between 2003 and 2006, peaking in 2005.
Now we are experiencing unprecedented foreclosure rates. In Jacksonville, Fla., alone, there are more than 8,700 homes for sale, 4,700 of which are under pre-foreclosure and more than 2,000 of which are bank-owned.
According to the Mortgage Bankers Association (MBA), one out of every 200 homes in America will be foreclosed upon. The MBA also says that every three months, 250,000 new families enter into foreclosure.
These foreclosures are rippling through the economy, and banks have stopped lending money. Even with the government bailout, it may be some time before we see a slowing in foreclosures. We need to instruct our clients to make sure they have the best credit score possible in case they are forced to refinance. Remind your clients of the following tips to help prepare them for refinancing so that they don’t lose their homes.
1. Make extra mortgage payments to pay down the principal
2. Reduce unnecessary spending
3. Review your credit report every six months to ensure that the information is accurate and up-to-date
4. Limit your credit to mortgages, auto loans and only a few major credit cards
5. Pay credit cards and mortgages on time
6. Develop a plan to pay down your debt to less than 40 percent of available credit
7. Stay at your job for longer than one year
8. Systematically pay off your loans starting with the highest interest rate loans
9. Keep telephone and utilities in your name
10. Don’t needlessly open new accounts
Douglas Muir, CEO
Good and bad credit repair companies
Over the years, the credit repair industry has come under a negative light. Many companies that promise to improve their clients’ credit have charged exorbitant fees and delivered few results. Internet-based repair companies usually charge clients $79.95 a month without ensuring a specific end date, and it is in their interest to extend the credit repair process. This ends up costing the consumer a lot of money and taking months and months to complete.
by valeria on Mon Mar 22, 2010 4:33 pm
For example, if the credit repair company only sends out five letters a month, this process could take one to two years to increase the clients’ scores, resulting in nearly $2,000 in fees.
The other problem with the large Internet credit-repair companies is that The Fair Credit Reporting Act states that any third party sending out dispute letters on behalf of its client can be considered frivolous and therefore discarded by the credit bureaus. The Internet companies do not have their clients send the letters, and instead they send the letters for their clients. Due to the FCRA law, the credit companies can just ignore the letters.
The law further states that if a consumer disputes the accuracy of his credit report it must be investigated or deleted within 30 days. If the repair company is sending out letters on its client’s behalf, and the credit bureaus can ignore claims made by third parties, then the repair companies’ attempts most likely will not be successful. What good does that do the consumer?
That is why consumers need a company like Credit Justice Services (CJS). Employees at CJS help consumers fight negative information in a timely and direct manner.
The reason CJS has a high success rate is because it’s open and transparent about the credit repair process. It provides clients with a clear-cut timeline, which ensures the consumer isn’t wasting time or money.
CJS is also successful because it has a detailed and proven process for disputing the negative items. By having our clients review and sign each letter, we can make certain that the credit bureaus take disputes seriously. It our proven approach that has helped more than 18,000 people since 2004.
Douglas Muir, CEO
