The San Diego, Ca Foreclosure Loan Modification Solution

The main cause of California foreclosures over the past few years was due to bad lending practices.  Banks and lenders used to allow San Diego home borrower to show  a years worth of pay stubs and around 30 % of the list value of the home as a down payment. When this was combined with huge commissions that were paid out to San Diego, Ca loan mortgage brokers for originating these loans and the Investors on wall street that could not get enough of the mortgage backed securities to sell on walstreet, the result was what we are having to deal with today, the foreclosure crissis.

Home prices have declined drastically.  Mortgage banks have failed due to over leveraging their mortgage backed securities. Adjustable rate loans have taken a toll on the borrowers that were misled or not infromed with what exactly they were signing up for, introductory low rates to qualify for the loan, interest only that ran out and were hit with a large increase that they were unable to make the payments, or were un able to refinance to a lower rate loan because their home was upside down in value.

This is where a San Diego Ca Mortgage home loan Refinance or loan modification program can help you save your home and protect your family.  When a loan modification is done correctly, or negotiated in youir best interest.  Then you will be able to lower your interest rate, extend the terms of your mortgage loan, and reduce your monthly payments to a more affordable home loan payment.

To receive a mortgage loan modification on your home loan you will need to first demonstrate that you have a hardship, loss of job, reduction of income, illness, etc.

Then you will have to prepare a home loan mortgage modification package that will be presented to your lenders loss mitigation department to start the modification process.  This is where most people mess up.  By not putting together a good modification package this will hurt your next step which is the negotiation stage.

During the negotiation stage, if you have not submitted a good modification package then you may be at the lenders mercy.  Your lender may work with you however, you may not obtain the best possible outcome for your situation.  The result may be that you only receive a temporary solution to your problem when a long term solution to a home loan mortgage modification would have been in your best interests.

You can do a loan modification on your own.  However, you may want to seek some assistance on preparing a mortgage modification package, or purchase a kit that will provide you with all the necessay forms, documents check list items so you can modify yor loan the right way.  The money spent could be the best investment you  make prior to requesting a loan modification.

City of Chula Vista
City of Carlsbad
City of Coronado
City of Del Mar
City of Escondido
City of Imperial Beach
City of La Mesa
City of Oceanside
City of Poway
City of San Diego
City of San Marcos
City of Santee

All these cities may benefit from San Diego Ca mortgage refinance or a loan modification on their home mortgage loan.

Has your lender told you that they can not modify your mortgage loan until you are in default?  Don’t let them ruin your credit by falling into this trap..
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Don’t lose your home, fight back and force the bank to Restructure your loan NOW!
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Email Mikekench@gmail.com a National known Loan Modification Educational Specialist

You may be entitled to restructuring your loan through a loan modification San Diego homeowners program if your loan

was subject to any of the following:

1. Miscalculation of Interest
2. Inflated Appraisal
3. Illegal Loan Origination Fees
4. Yield Spread Premium
5. Illegal Kickbacks
6. Non-Disclosure of Loan Terms-Federal and State Requirements
7. Discount Points
8. Undisclosed Pre-Payment Penalties
9. Switching Rates between initial Rates and Closing

Any of these violations may fall under the T.I.L.A “Truth In Lending Act” or under the R.E.S.P.A. “Real Estate

Procedures Act.”

A well qualified attorney who specializes in the “Forensic Loan Audit” process would be able to identify and violations in the law and determine if you are entitled to a Loan restructuring under a loan modification San Diego program and you may entitled to a refund of all points, fees in originating your loan and interest that has been charged on the loan which could result in thousands of dollars in savings to you.  Each case is unique and the outcome may be different, but you do have laws on your side to protect you as a borrower.

It has been estimated that 82% of loans written have some type and form of a violation.  These laws are violated daily by lenders and mortgage brokers who wrote, processed, submitted and approved the loans.

The laws were enacted to protect borrowers but through the greed of some unscrupulous loan agents and brokers have completely disregarded these laws and unfortunately some loan agents and brokers were not aware they were breaking these laws.  Your loan may be an unlawful loan and you may be entitled substantial damages for these violations.  If you suspect you have a violation it would be to your benefit to have a forensic mortgage loan audit on your loan to determine the violations and potential damages or resolutions to a home loan modification San Diego restructuring program on your loan.  If you are behind in payments, in a notice of default or in foreclosure it would be advisable to check it out. Drop me a post and I will recommend a qualified attorney who will provide a forensic mortgage loan audit free of charge.

Unaffordable Loan- You were put into a mortgage and your income is not able to pay the monthly loan payment because your loan payment is adjusting higher.

Making loans based only on the value of the collateral without regard to the borrower’s ability to repay the loan.

Bait And Switch- Were you promised a low interest rate, but then you ended up with a higher rate at closing?

Failure To Disclose Loan Terms- Federal and State laws require creditors disclose the terms of the loan to borrowers, and when those terms are not disclosed or are inaccurately disclosed these terms are in violation of the law.

If you were a victim of any of these predatory lending violations :

Misrepresentation
Fraud
Miscalculation
Mistake
Deception
Non-Disclosure
The T.I.L.A. “Truth In Lending Act”
The Real Estate Settlement Procedures Act
Federal and State Lending Provisions

You may be entitled to get back all of your origination fees “points” plus interest.  Have your loan restructured at no cost to you through a loan modification San Diego homeonwers program.  Obtain a better rate, new loan terms and lower payments.

To determine if you have any violations with your home mortgage loan you should have a qualified attorney who specializes in the loan mortgage audit process also know as a forensic loan audit.  I can offer some great recommendations if you need a loan audit completed on your loan and the attorneys will offer this Free of charge to qualified candidates.  Drop me a post or an email at mikekench@gmail.com for more details.

The best way to determine if you were a victim is by having a Mortgage Audit done on your home loan. Your mortgage lender or broker may have failed to follow the rules under the Truth in Lending Act, the Real Estate Settlement Procedures Act or other federal and state lending regulations  and statutes.  If you were a victim of these home loan mortgage procedures you may be entitled to the return of a portion, or all loan fees and interest and a restructure of your loan under a loan modification San Diego modification program.

If you have  received a “Notice of Default,” or your home is in foreclosure, or you are in a position where your loan is becoming un affordable due to rate and payment increases.  Having a mortgage loan audit by a qualified professional, preferably an attorney who specializes in the mortgage audit process may save your home from foreclosure and may also provide you with a restructered  loan modification San Diego program to lower your payments, loan balance, or loan terms.

Most homeowners are unaware of the Laws that are in place to protect borrowers from violations in the law or Fraud.  And without a professional eye are unaware of these violations in their mortgage loan contracts.

These May Have Happened To You!

Were you charged high closing costs (Points and Fees?)
Did you have to provide proof of Income or did you just “state your income?” or did your loan agent or broker put a number in your application to qualify you?
Were all of your loan documents completely filled out prior to signing, or did you sign any blank documents?
Did your loan have any prepayment penalties?
Did you receive copies of all loan documents upon signing or loan closing?
Did the terms of your loan change at the last minute prior to signing
Were all loan fees or charges disclosed and properly explained to you in a clear, conspicuous and accurate way upon closing?

These are just a few areas that a mortgage loan audit would uncover violations in the law.  More information to follow.

A new announcement outlining the Board of Governors of the Federal Reserve System interim Final Rule for Making Home Affordable Modification Ruling.

Offices represented:
Federal Deposit Insurance Corporation
Office of the Comptroller of the Currency
Office of Thrift Supervision

Released June 26, 2009

 Agencies Issue Interim Final Rule for Mortgage Loans Modified Under the Making Home Affordable Program.  Loan modification San Diego homeowners would be affected by the new ruling.

The federal bank and thrift regulatory agencies today invited public comment on an interim final rule that provides that mortgage loans modified under the U.S. Department of the Treasury’s Making Home Affordable Program (MHAP)will retain the risk weight applicable before modification. On March 4, 2009, the Treasury announced guidelines under the MHAP to promote sustainable loan modifications for homeowners at risk of losing their homes to foreclosure. The interim final rule would provide a common interagency capital treatment for mortgage loans modified under MHAP. For example, mortgage loans risk weighted at 50 percent prior to modification would continue to be risk weighted at 50 percent after modification provided they continue to meet other applicable criteria.

The interim final rule, by the Office of the Comptroller of the Currency, Board of Governors of the Federal Reserve System, Federal Deposit Insurance Corporation, and Office of Thrift Supervision, will take effect upon publication in the Federal Register, which is expected shortly.  Public comments must be submitted within 30 days after publication in the Federal Register. 

The Board Of Governor’s is allowing any public comments to be submitted within thirty days from the date of publication.  The pdf that details the new ruling can be found by clicking here.

The new ruling applies to Fannie Mae and Freddie Mac insured loans.  If you have a loan that is owned by one of these entities and are in need of a loan modification San Diego program these new rulings will provide you with a guideline as to what options your lender has available to you under the new Home Affordable Modification program.  It would be advisable to review this final ruling before you attempt to modify your home mortgage loan.

In 2009 more loan modifications are going bad. Why?  To many borrowers that were at the mercy of their lenders accepted mortgage modifications that were not in the borrowers best interest.  Most home owners when presented with a loan modification San Diego program did not know how to negotiate better terms and accepted the first offer that was presented to them.  The loss mitigation representative who is negotiating the modification is representing the bank and has the lenders interest that they represent and they are trying to achieve a home loan mortgage modification that is in the lenders best interest and not necessarily the borrowers best interest.  So it is important to way all options before you accept a loan modification proposal on your home loan.

There are other factors that are affecting loan modifications to go bad which have caused some borrowers to give up and throw in the towel.  5 of the reasons are as follows

 
5 factors behind the trend:
1. Overextended borrowers: With the ease of credit and negative-amortized, adjustable, pick-a-pay, interest only loans.  Many unknowing borrowers were led into the American Dream of home ownerships, with ease of qualifying, the fear that many first time homeowners would simply miss the boat of owning a home with the rise in real estate values and the speculative gold rush of of home appreciation.  Many borrowers not only fell into the real estate trap, but also overextended their consumer credit cards, personal loans and luxury items. Unfortunately many of these over extended consumers won’t be able to make their payments even in the most generous of loan modification San Diego programs.
2. Underwater effect: IN several parts of the country for example California, housing prices have declined over 50 % in value and borrowers are having a hard time trying to deal with making a mortgage payment on an asset that is not worth nearly what it was when they bought it.  And in most cases even if they were to have they mortgage modified it would not address the negative amount of equity in their homes and know one knows when values will increase again.
3. Housing Market decline: Has the home market reached a bottom yet?  Is the housing market going to continue a decline?  These are questions that troubled homeowners have to deal with in deciding if the loan modification San Diego program they received is worth paying into an investment that will continue to devalue.  Historically speaking real estate prices have increased in value over time.  Unfortunately we do not have a crystal ball that will tell us when home prices will return and home appreciation will become a benefit of home ownership.  One thing most homeowners need to remember is that they will need shelter, and it may be better to own a home in the long run than to rent, taking into account that your home is still one of the only tax write offs you have and that if you get a loan modification that will work for you short term and long term you should focus on paying down and eventually off your mortgage so you can own your home free and clear. Owning a home without out payments and with the benefit of future appreciation.
4. Original loan modification San Diego terms: Some of the modified loans weren’t modified appropriately to make them affordable for troubled borrowers.  The loans could have been adjusted to more in line with the borrowers debt to income ratios to make there loan payments more viable for long term success.

5. Unemployment: This is another major cause of defaults on loan modification programs. Many homeowners who were successful in obtaining a mortgage loan modification were unable to maintain their mortgage payments due to a loss of employment, decrease in income, or other unforeseen events, which made it impossible to keep up with payments or to do another loan modification on their home loan.

The Obama Administration Announces Financial
Incentives and Uniform Process for Short Sales

Responding to the call of the National Association of REALTORS®, on May 14, 2009, the Obama Administration announced incentives and uniform procedures for short sales under its new Foreclosure Alternatives Program (FAP). For borrowers who are unable to retain their home under the Making Home Affordable loan modification San Diego Program, the servicer may consider a shortsale or, if that is not successful, a deed-in-lieu of foreclosure.

Participating servicers must comply with program requirements so long as they do not conflict with contractual agreements with investors. Late July is the Treasury Department’s current target for issuing guidelines and forms necessary to start the program. Borrowers (Homeowners). Borrowers/homeowners qualify under the FAP if they meet minimum eligibility requirements for the Home Affordable Modification program but don’t qualify for a home loan modification San Diego program or do not successfully complete the three month trial period. Before proceeding with a foreclosure, servicers must determine if a short sale is appropriate. Incentives.

The government is providing incentives to lenders who follow the FAP guidelines: Incentives include: (1) $1,000 for servicers for successful completion of a short sale or deed-in-lieu of foreclosure; (2) $1,500 for borrowers/homeowners to help with relocation expenses; and (3) up to $1,000 toward the cost of paying junior lien holders to release their liens (one dollar from the government for every $2 paid by the investors to the second lien holders). Standardized Documents.

The program will include streamlined and standardized documents, including a Short Sale Agreement and an Offer Acceptance Letter. The goal is to minimize complexity and increase use of the short sale option. Property Valuation by Appraisal or BPO. Servicers will independently establish both property value and minimum acceptable net return, in accordance with investor requirements. The price may be determined based on an appraisal or one or more broker price opinions (BPOs), issued no more than 120 days before the date of the short sale agreement.

Timeline:

In the Short Sale Agreement, servicers must give borrowers/homeowners at least 90 days to market and sell the property, or up to one year, depending on market conditions. Property must be listed with a licensed real estate professional with experience in the neighborhood. No foreclosure may take place during the marketing period (at least 90 days) specified in the Short Sale Agreement.

The Short Sale Agreement must specify the reasonable and customary real estate commissions and costs that may be deducted from the sales price. The servicer must agree not to negotiate a lower commission after an offer has been received. No Borrower Fees. Servicers may not charge fees to borrowers/homeowners for participating in the FAP. Program Expiration. The program

is in effect through 2012.

As a last result the lenders who can not provide a home loan modification San Diego program will have the option of accepting a Deed-in-Lieu of Foreclosure Option. Servicers have the option to require the borrower/homeowner to agree to deed the property to the servicer in exchange for a release from the debt if the property does not sell within the time allowed in the Short Sale Agreement (plus any extensions).

Source: National Association of REALTORS® Government Affairs Division
500 New Jersey Avenue, NW, Washington DC, 20001

The governmenst main objective is to assit borrowers of Freddie Mac guaranteed, insured home loans, to keep their homes affordable and reduce foreclosures by keeping payments affordable. Under Freddie Mac’s Home Affordable Refinance program, known as the Relief Refinance Mortgage, the program may be used to reduce the borrower’s loan interest rate, shorten the loan term repayment period or replace an adjustable-rate mortgage, interest-only mortgage or balloon/reset mortgage with a fixed-rate loan.

How to qualify for the new refinance program, first the borrower must have an existing mortgage that is owned or guaranteed by Freddie Mac. To find out whether Freddie Mac owns or guarantees your loan, call (800) 373-3343, call your loan servicer or search for your loan on Freddie Mac’s Web site at Freddie Mac.org.

You should contact your original lender or loan servicer to apply for this program.

The property may be a vacation/second home if the existing mortgage was originated as a second-home loan or the borrower now occupies the home as a principal residence.

The new Freddie Mac Refinance mortgage can be a 15-, 20- or 30-year, fixed-rate loan or an adjustable-rate mortgage  with an initial term of five, seven or 10 years. The loan must be fully amortizing (i.e., not an interest-only or payment-option loan).

If you have an existing fixed-rate mortgage, than the lender can not refinance with an ” ARM”  Adjustable Rate Mortgage.

The loan, may be a so-called “super-conforming” loan limit within the applicable loan limit for the area.

The property may be an investment property if the existing mortgage was originated as an investment property or the borrower now occupies the home as a principal residence.
 
If the original loan is covered by mortgage insurance, the insurer must agree to transfer the insurance to the new loan.

The new loan cannot be used to make a payment on or pay off a second loan.

Lenders are encouraged to use Freddie Mac’s automated valuation model, or AVM, to estimate the property’s current market value. Borrowers should ask whether a new appraisal will be required.

The borrower may be able to finance transaction costs of up to $2,500.
Borrowers whose monthly payment increases 20 percent or more must provide income and employment documentation and have an acceptable credit score and debt-to-income ratio to demonstrate they can afford the new higher payment.

If your loan does not meet these qualifications and you can not qualify for a typical refinance program,  You may want to consider modifying your home loan with a loan modification San Diego mortgage program.  This will allow you to lower your monthly mortgage payments, lower your current interest rate on your mortgage, or possibly reduce the principal balance of your home loan mortgage.

More information can be obtained at the Freddie Mae web site or at the Home affordable modification webs site.

The program applies only to loans that are owned or guaranteed by Fannie Mae or Freddie Mac.  Refinance with little or no equity.  Do you qualify?

The property must be an owner-occupied detached house, condominium, duplex, triplex or four-unit residential property. (Fannie Mae’s and Freddie Mac’s rules may allow exceptions to this rule.)

The borrower must not have made a loan payment more than 30 days late in the last 12 months or missed a payment if the loan was originated fewer than 12 months ago. (If a borrower who was delinquent or have made a payment more than 30 days late during the prior 12 months may qualify for the Home loan modification San Diego program.)

The new mortgage lien cannot exceed 105 percent of the appraised value of the property.

If the borrower has a second loan, that loan isn’t counted toward the 105 percent limit. The second loan must remain subordinate to the new first mortgage.

The interest rate on the new mortgage will be the current listed market rate.

The borrower may be charged fees, points or other refinancing costs.

The new mortgage home loan cannot have a prepayment penalty or balloon payment tacked on to the end of the loan term.

The borrowers income will have to qualify to afford the new mortgage payments

The existing loan balances will not be reduced and may increase by adding on refinance and escrow fees.

If a borrowers has existing private mortgage insurance, or PMI, will be required to continue that insurance on the new loan.

There will be no PMI or private mortgage insurance on news loans.

A list of participating lenders can be found at the Home Affordable website or you can go to http://homeloanrefinanceonline.info

Documents required for the new home affordable refinance mortgage loan program are as follows.

1. Paycheck stubs, alimony, child support or other income-related documents.

2. Recent income tax return including w-2 statements  for all borrowers.

3. Second and Third loan notes and payment coupons secured by the property.

4. Financial statements-Account numbers, balances and monthly minimum payments on credit cards, student loans, car loans, personal loans and other debts.

5. Mortgage coupon of existing loan

6. Copy of Hazard Insurance declaration page

Important reminder the Home Affordable Refinace program will terminate on June 10, 2010.