The Loan Modification Expert

Why credit is important???????

The stock market falling 352+ points yesterday should make YOU nervous even if you do not have any money invested. The fall (it will continue) shows that we as consumers are not in control of our finances as we think. In addtion, with the housing market in a "freefall" and price of everything going up it is time to take a stand.

NEWS FLASH!!!!!! Your credit is NOT as inportant as you think. If you still believe this you probably think O.J is not guilty. I deal with clients everyday who want to modify their loan but dont want to "hurt" their credit. Hellow "Mcfly" (back to the future) it is like asking to go swimming and not to getting wet.

There are lenders who will put the lates on hold until the modification process is in place. For those of you who want a lower payment without any credit "issue", go try to refinance and after your 750+ FICO gets you turned down call me.

I only bring this up to make you think outside the box. The credit system as we know it will be reconstructed using different factors. With mortgage and credit companies cancelling "credit lines", without YOU missing or being deliquent should send a message, YOUR CREDIT MEANS NOTHING TO THE COMPANIES PULLING THE STRINGS!

Enough of beating up these poor banks that extend credit at these fair rates.

Make sure you check your credit card statements for increases in the rate even if you are not late etc. The credit card companies are increasing rates because of the increase of defaults in the mortgage industry. (so much for not doing a modification) What is interesting, when you call to ask why the rate increase you get some off the wall answer. Unless you are going to payoff and cancel the credit card be prepared to pay your new higher rate with a smile every month.

The bottom line is your credit is not as important as YOU think. If this is holding you back from doing a loan modification, keep paying your credit cards and explain to your wife why you have to move because of a higher house payment. (but we have good credit honey)

Mortgage lender sued.

Hang onto your mortgage "hat". Countrywide is being sued over misleading advertising and unfair business practices. This means one thing, I hope the rest of the lenders are ready for the "ripple effect". Makes you wonder why BofA would purchase this liability.

Seems to me if you are in a Countrywide loan you should be using this opportunity to get them to modify your deal. There are various ways to accomplish this, starting with your loan documents. 75% of all signing packages (any lender) contain errors. These errors are a violation of RESPA and TILA and carry a hugh fine. In some this cases allow the borrower to "resend" the loan.

Think about that for a moment. You have the ability to challange the process in court or at a minimum use it to obtain a reasonable "modification" deal. Be aware the lenders are not going to "roll over". But it will allow you to get by the first layer of "there is nothing we can do" responses.

Make sure you have a copy of your purchase or refinance "package" from the lender. This will contain the errors. If not, request one before they (the lender) cant find it.

Regardless of all of the political "talking heads" it is your responsibility to make it happen. Believe me, by the time you see relief from the government you will have lost your home.

Just begun

Did you read CNN yesterday. A predicted drop of housing prices in parts of the US expected to be 50% or more. However, the "good" news is that the population growth will continue to increase in these same areas. I guess they (CNN) forgot about these same people will not be able to afford a loan. Funny how the news is "spun".

So back to reality. There seems to be a movement to have a reduction of balances as a way out of this mess. Surprise, the movement is not by the government but by you and me. Make it a point to send a letter and a family picture to your local legislator to "drive" the point home that this housing problem is not just a "cycle" caused by a few "sub-prime" borrowers.

Helpful hint when trying to talk to your lender about a restructure of your loan. Don't take it personal. Their hourly job is to tell you NO. Remember these are people who probably do not own a home and are using their new job title to learn the modification program with your house.

Most of the modification departments are staffed by, ready LOAN OFFICERS!!!!! The same ones who jammed you into your exsiting problem. You really want that type of "expertise" helping YOU to get a better deal? I have a better idea, let your 9 year old call for you so they can "relate".

Just a thought for the day.

It's not too late

The latest "save" was Friday. We were able to "save" the house in Temecula before the auction at 9:00 a.m. pst. At 8:57 a.m. (same day) we notified the trustee company to stop the sale, with 3 minutes to spare.

There seems to be some confusion about how to "stop" a sale. There are three basic reasons:

1) Investor feels there are other financial options.

2) Legal reasons, B.K. etc.

3) Selling "bid" not high enough.

As crazy as it seems, it is not to late to save your home right up to auction. It is in your best YOUR interest consult a "loan modification'' professional to enusre you have been advisted of all the options. If action is taken early enough the modification process is very effective.