loanmodificationsandiego.info

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.

Publisher- Michael Kench Uncategorized Adjustable Rate Loans, Best Interest, Borrowers, California Foreclosures, California Homeowners, Foreclosure Loan, Home Borrower, Home Loan Mortgage, Loan Interest, Loan Payment, Loss Mitigation Department, Mortgage Backed Securities, Mortgage Banks, Mortgage Brokers, Mortgage Foreclosure, Mortgage Home Loan, Mortgage Loan, Mortgage Loan Modification, Mortgage Refinance, Pay Stubs, Rate Loan, San Diego, San Diego Ca, San Diego Ca Mortgage, San Diego County

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.

Publisher- Michael Kench Uncategorized Applicable Criteria, Avoiding Foreclosure, Board Of Governors, Board Of Governors Of The Federal Reserve, Board Of Governors Of The Federal Reserve System, California Homeowners, Comptroller Of The Currency, Comptroller Of The Currency Office, Currency Board, Department Of The Treasury, Deposit Insurance Corporation, Facing Foreclosure, Fannie Mae, Fannie Mae And Freddie Mac, Federal Deposit Insurance, Federal Deposit Insurance Corporation, Federal Reserve System, Foreclosure California, Foreclosure Loan, Foreclosure Prevention, Interim Final Rule, Loan Modification, loan-modification-san-diego, Mortgage Loans, Office Of The Comptroller Of The Currency, Office Of Thrift Supervision, Risk Weight, San Diego Ca

5 Reasons California Loan Modifications Are Going Bad Again

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.

Publisher- Michael Kench Uncategorized American Dream, Avoiding Foreclosure, Best Interest, Borrowers, California Loan, Consumer Credit Cards, Example California, Facing Foreclosure, First Time Homeowners, Foreclosure Loan, Foreclosure Prevention, Gold Rush, Home Appreciation, Home Loan Mortgage, Interest Only Loans, Loan Modification, loan-modification-san-diego, Loss Mitigation, Luxury Items, Modification Request, Mortgage Payment, Ownerships, Owning A Home, Personal Loans, Real Estate Values, Underwater Effect

Foreclosure Alternatives Program (FAP)

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

Publisher- Michael Kench Uncategorized Association Of Realtors, Avoiding Foreclosure, Borrowers, Complexity, Contractual Agreements, Deed In Lieu, Deed In Lieu Of Foreclosure, Financial Incentives, Foreclosure California, Foreclosure Loan, Foreclosure Prevention, Junior Lien, Lien Holders, Loan Modification, loan-modification-san-diego, Minimum Eligibility Requirements, Modification Request, National Association Of Realtors, Offer Acceptance Letter, Property Valuation, Relocation Expenses, Shortsale, Target, Treasury Department, Trial Period, Uniform Procedures

Home Prices Decline Beyond Expectation including major California Cities
The latest S&P/Case-Shiller index reports huge decline of 19.1% for the first quarter of 2009 home prices.  Foreclosures and short sales have caused real estate prices to decline in all major real estate markets.  This has all lead to 20% decrease in home prices and for most homeowners who are distressed and upside down in their mortgage are trying to make the more difficult choice should I try and modify my mortgage thru a loan modification San Diego program, or sell my home thru a short sale or as a last result loose my home to a foreclosure.

The following was the real estate home value decreases for the first quarter of 2009:    
 
S&P/Case-Shiller 20-city home price index, a National real estate barometer recorded the following.
Metro area 1-year change (%)
Phoenix -36.0%
Las Vegas -31.2%
San Francisco -30.1%
Miami -28.7%
Detroit -25.7%
Minneapolis -23.3%
Tampa -22.4%
Los Angeles -22.3%
San Diego -22.0%
Chicago -18.6%
Washington -18.4%
Seattle -16.4%
Atlanta -15.7%
Portland -15.3%
New York -11.8%
Charlotte -9.3%
Cleveland -9.0%
Boston -8.0%
Dallas -5.6%
Denver -5.5%

Composite-20 -18.7%
 
Source:S&P/Case-Shiller

This index dropped 18.7% year-over-year and it fell 18.5% during the last three months of 2008. The index has fallen 32 staright months in a row. 

The big problem now is that Apprasiers have ignored foreclosures in the past when evaluating home prices.  However, when markets with foreclosures out number non foreclosed properties, now the foreclosures have to be used in the market comparable pricing models which lead to more homeowners in need of a lower rate to lower their monthly payment are unable to qualify based on new property valuations which will lead more homeowners to seek a loan modification San Diego program on their home loan. 

Cities with the largest year over year declines were Phoenix down 36%, Las Vegas 31.2% and San Francisco down 30.1%.  Phoenix is down 50%, and Las Vegas is down 50% from their August 2006 highs. It was reported from Economist Mark Zandi, the founder of Moody’s Economy.com, he is optimistic that the market will stop falling sometime this summer or fall. “We need to focus on the mortgage modification program,” he said. “If that plan doesn’t work or only works as well as the other modification programs have, we’ve got a problem.”

Source: reported in Money.cnn May 26, 2009

On a further note: Existing Home Sales were reported at 4.68 Million which was actually
higher than industry expectations of 4.65 Million. The unsold inventory of homes rose to a
10.2 month level from April’s reading of 9.6, below the 11
month reading of November 2008. There still is a large supply of
homes above $750,000, which now stands at a 40-month supply. The government has done very little in providing availability of jumbo loans to help these home owners with refinancing programs.

If you are having trouble refinancing and you are considering a loan modification San Diego program on your home mortgage, it would be advisable to start the process now rather than later.  The loan modification process can take on an average of 90 days to complete the process.

Publisher- Michael Kench Uncategorized Area 1, Barometer, California Cities, Case Shiller Index, Decline, Declines, Expectation, First Quarter, Foreclosed Properties, Foreclosure, Foreclosure California, Foreclosure Loan, Foreclosure Prevention, Foreclosures, Home Price Index, Home Value, Index Reports, Last Result, Loan Modification, loan-modification-san-diego, Metro Area, Payment Options, Pricing Models, Property Valuations, San Diego Ca, Staright