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 First American Consulitng Group |
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November 26, 2008
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Save your Home for The Holidays Special Edition
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In This Issue
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1. No relief in site
2. What is a Modification
3. Can you Modify yourself
4. How to qualify for a Modification |
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No Relief in Site
As I have written in the past, there just doesn’t seem to be any relief in the near future for home owners
struggling to save their homes. Being in the mortgage modification industry, I hear hundreds of stories on a weekly basis from average people who work hard and for one of a many reason gets behind on their mortgage or just can’t keep up on their excising ARM. I have seen on the news, numerous stories about how the banks are now helping people modify their loans yet I still have hundreds of clients going into foreclosure or getting a notice of default.
Here is the reality of what we are all facing in the coming months and years.
Credit Suisse predicts an astounding 6.5 million loans -- 2.7 million of them subprime -- will enter foreclosure by 2012, evicting 12.7% of all U.S. homeowners. The Swiss bank expects U.S. home prices to register a 10% drop this year, then 5% next year.
I have decided to let everyone who reads this blog in on an industry secret and why First American Consulting Group is so successful at modifying home loans and saving people from foreclosure.
Written by:
Steve Schneider
Vice President
First American Consulting
www.fac5.com for relief today or call 800.678.1150 ask for Steve
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In these market conditions, the banks and lenders have been mandated by the president to do everything they can to work out a payment plan with their borrowers. This is a great thing for today's borrowers, especially for those who are running late on their payments or are having trouble making them on time.
The banks and lenders would rather take less money and keep you in your home making a payment that you can afford, rather thango through the expense of foreclosing on the home, hiring a listing agent, rehabilitating the home, and letting it sit empty on the market for months, only to lose thousands in the process.
We currently work with most every major bank and lender to secure a loan modification in order to help them help you. In many cases we actually have taught smaller banks and lenders how to go about completing a loan
modification.
Written by:
Scott Schneider
Sr. Analyst
First American Consulting
www.fac5.com for relief today or call 800.678.1150 ask for Scott
A Loan Modification is a negotiation between a lender and a borrower whereas the loan terms are restructured without refinancing. The rate and terms of your loan are restructured to fit your current financial situation. |
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In short, yes you can. You can contact your lender or your bank and see about going through the process of loan modification. But, keep in mind that your bank has their best interest at heart. They neither have the time nor the inclination to hear about what troubles you might be experiencing.
What usually ends up happening, is that the bank will negotiate an agreement that helps them but still leaves you with only a temporary solution. This also takes many hours of communication and back and forth information exchanges in order to accomplish. It is not easy to complete on your own and the outcome may not be favorable to you.
When you contact the bank they will ask for a "hardship letter" from you. When they receive that letter, they will usually tell you that they will get back to you in about 8 weeks. By the time you get back with them, or if you are lucky enough to get a call from them, you're already in worse shape than when you first started negotiation.
Written by:
Nathan Head
President
First American Consulting
www.fac5.com for relief today or call 800.678.1150 ask for Nathan
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Basically, the bigger the hardship you are having, the more negotiating power you have with your lender. Remember, they don't want to foreclose on you. They would rather keep you in your home and create a solution that will be affordable to you rather than go through the cost and expense of foreclosing on your property.
Written by:
Scott Schneider
Sr. Analyst
First American Consulting
www.fac5.com for relief today or call 800.678.1150 ask for Scott
Anyone who can prove they are having a tough time. Especially those who are currently a few months behind, those with negative amortizing loans, those with loans that are about to adjust, those who are upside down on their loan and those who would rather keep their home than do a short sale. |
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First American Consultig
215 SE 102nd Suite 101
Portland Or 97216
800.678.1150 Toll Free
www.fac5.com
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