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San Diego Homeowners-How To Prevent Foreclosure

Being involved in a foreclosure is not a pleasant experience for anyone. However, with the right knowledge you will be better prepared to protect your interests and save your home from the foreclosure process. I must also emphasize that I am not an attorney and any advice or information that is provided from this blog should not be construed, relied upon as legal advice.  Foreclosure attorneys charge on average $150-$200 dollars per hour and it may be the best money you could spend.Now that the disclaimer is out of the way. We should take a look at the various types of foreclosures there are and depending upon your state and the type of foreclosure you may face.
The first type of foreclosure is a Judicial Foreclosure-

When you purchase a home you are signing a security instrument.  This legal document is between you and your lender.  If you default on this type of agreement, the lender will have to appear before a judge.  The judge will order your home sold, unless you can convince the judge that your home should not be sold. One way would be that you could show the judge that a loan modification San Diego homeowners program would allow you a means to make good with your current loan and that you could afford the new loan workout payment program.

The second type of foreclosure is a Non-Judicial Foreclosure-

The security instrument in this type of foreclosure is usually a deed of trust.  A trust consists of 3 parties, the trustor is the borrower, the trustee is the third party who looks after the lenders interests of the bank, and the beneficiary is the lender.  The trustee handles the entire foreclosure process, or they use a substitute trustee to handle the process on a county or state level.

After the foreclosure process has concluded a number of states allow:

“Redemption.”  The redemption period allows you to pay all past due payments, penalties, legal fees to re acquire your home.  Check your local and state laws for the time allowed to redem your home.

If your home sells in after the foreclosure and the home sales proceeds are for less than what was owed on the original mortgage or loan.  The lender can sue you for a deficiency judgement for lenders loss-the difference of what was owed and the funds received from the sale. The judgement will be recorded in your county’s public records .  You will have difficulty purchasing another home until this judgement is paid off or settled.

Do you have ANY idea what to do next?

Being in foreclosure is scary ordeal for anyone to go through.  If you would like a free report that will guide you with how- to-stop-the-foreclosure process  you can click here to get it:  Free Guide To Prevent Foreclosure.

Publisher- Michael Kench Uncategorized loan-modification-san-diego

Are Banks Telling The Whole Truth?

tionBanks May not offer you a loan modification on your home loan.  The main reason is that the bank that holds your loan will try to offer you other options on your loan versus performing a loan modification San Diego homeowners program.  The main reason is that banks are in business to make a profit.  If a bank has to lower your interest rate on your loan it effects their profits.  Another reason may be that your loan is not insured by Fannie Mae or freddie Mac so there are no lender incentives for them to do a loan modification. So what are some of these banks offering in lieu of a home loan mortgage modification program to their mortgage borrowers?

Some Banks are offering loan strategies that are not exactly what is a loan modification on your existing home loan mortgage.  The  banks are using a foreclosure stall tactic called Forbearance.

Forbearance should not be confused with loan forgiveness. During the forbearance process the lender will allow you a number of months before you get back on track making regular monthly payments on your loan. Some banks will want you to make up the back payments by adding the outstanding balance to your existing monthly payments until you are caught up.  Another option would be to add the missed payments onto the back of your loan and of course you will have to pay interest on the forbearance balance.

So remember when you negotiate a loan modification San Diego program on your loan.  Beware, that the lender will try to resort to this before addressing the real problem, adjusting the loan terms for the immediate and long term solution to make your mortgage payments more affordable to you over the entire term of the loan. The Banker is looking out for the banker, you have to be looking out for your self and make sure you get a program that is going to work for you today and tomorrow.

Publisher- Michael Kench Uncategorized loan-modification-san-diego

Investors are not happy with Obama’s new mortgage rescue plan.

Investors are asking the government to amend the $75 Billion Housing Plan. Investors are protesting that the new plan violates their rights to sue against loan servicers who collect on these loans and also perform the mortgage modifications on these loans. Loan modification San Diego homeowners may be affected.

The investors have a lot at stake.  They currently hold billions of securities backed by home loan mortgages.  They are concerned that stipulated rights in their contracts will not be enforced under the governments new loan modification programs.

Investors have met with Treasury officials to resolve these issues and are not happy with the results of these talks. The government is working on a resolution to satisfy the investors.

The main problem here is that there are approximately 1.9 trillion in mortgages that were bundled into securities and sold to investors worldwide. The mortgage servicers that manage these loans would be more willing to do a mortgage modification on these loans before they would be willing to modify the loans they own outright.

What this means if you are looking to do a loan modification San Diego homeowners program on your own home mortgage loan.  You may have a lender that would rather offer a loan modification to mortgage borrowers who’s loan is owned by one of these investors.  So, in other words it may be difficult to negotiate a loan mortgage modification on your own loan if your mortgage servicer also owns your mortgage outright.

The program was designed to help 4 million homeowners through the loan modification process, unfortunately if the government does come up with some resolutions it may not be possible for some unfortunate homeowners to get their loans modified.

Publisher- Michael Kench Uncategorized loan-modification-san-diego

Fannie Mae has released the guidelines for the Home Affordable Modification Program

There will be a uniform loan modification process to all eligible
borrowers.  The main objective is to provide borrowers  with sustainable monthly payments.

The following are a list of the guidelines for the loan modification San Diego Homeowners program:

To be eligible, it covers one- to four-unit owner-occupied properties securing
Fannie Mae portfolio mortgages and MBS pool mortgages guaranteed by Fannie Mae.
The new loan modification program will expire on December 31, 2012.

The mortgage loan and Jumbo-conforming loans are eligible is a first lien Fannie Mae conventional mortgage loan originated on or before January 1, 2009.

The mortgage loan has not been previously modified unde the home affordable modification program.

The mortgage loan is delinquent or default is reasonably foreseeable; loans that are currently in foreclosure are eligible.

The mortgage loan is secured by a one- to four-unit property, one unit of which is the borrower’s principal residence.

Co-op’s share mortgages and mortgage loans secured by one-unit condominiums and manufactured homes are eligible for the Home Affordable Modification.

The property securing the mortgage loan must be occupied.
 
The borrower must show a financial hardship by completing a Home Affordable Modification Program Hardship Affidavit.

Borrower must provide income documentation, and documentation must not be older than 90 days old.

A borrower in foreclosure is eligible for the Home Affordable Modification-loan modification San Diego homeowners program.

 A borrower in a bankruptcy is eligible at the servicers discretion.

Borrowers who have received a Chapter 7 bankruptcy may also be eligible for a  Affordable Modification Workout Plan and Home Affordable Modification Agreement

Borrower must agree to set up an impound  escrow account for taxes and insurance.

Federal government agency (FHA, HUD, VA, and Rural Development loans are not eligible.

The Home Affordable Modification-loan modification San Diego Workout Plan expires on December 31, 2012.

The loan modification program includes a new Home Saver Forbearance™ foreclosure prevention
option. The HomeSaver Forbearance provides an additional foreclosure prevention option for borrowers who are NOT eligible for the mortgage modification program

Publisher- Michael Kench Uncategorized loan-modification-san-diego

Cities To Benefit From Obama’s Housing Plan, How about San Diego?
The 75 Billion slated for the Homeowner Stability program was constructed to stop foreclosures and rescue the overall housing market.
 
The reality is it will only help a few cities.  The cities that will benefit the most will be cities that did not have the big run up in prices like Los Angeles, Ca., San Diego, Ca., Las Vegas, NV.,Phoenix, AZ. to mention a few.If you did not reside in one of the boom and bust cities you may be able to refinance your home under more favorable terms if your current mortgage is through Fannie Mae, or Freddie Mac.  If your home value has not decreased to much, in other words your home value can not be under water more than 105% of your existing loan to qualify for the refinance initiative.  If you do not fall into this category then a loan modification San Diego program may be a fit for you.

The cities that are most likely to benefit from the refinance initiative are listed below.  The data is from First American Core Logic and the National association of Realtors:

Jacksonville, FL
Cleveland, OH
Memphis, TN
Minneapolis St. Paul, MN
Providence, RI

The plan can help the some homeowners and in some real estate markets it could help the market to establish a bottom.  It may help homeowners to remain ion their homes by offering a lower payment option, and it may stop or reduce foreclosures in some cases.  The other portion of the program can assist San Diego borrowers who do not qualify under the refinance plan to qualify under the loan modification San Diego program.  This would allow homeowners who are upside down with their home values to modify the terms to a more affordable payment, reduce the principal in some instances, increase the term of their loans and help the homeowners to stay in their homes.

The government will in my opinion have to develop additional programs to assist homeowners that do not fall into the above categories to stop the decline in housing prices, make loan payments more affordable, or make it easier with fewer restrictions to refinance their loans at a more favorable interest rate

Publisher- Michael Kench Uncategorized loan-modification-san-diego