Gwenn Tanvas - Wisconsin Mortgage Expert - FHA Loans - VA Loans - USDA Rural -

Avoiding Scams When Looking For Mortgage Payment Rescue

Companies that help you stop foreclosures, attorney-facilitated Loan Modification companies, and loss mitigation companies all target people who are in or who are facing foreclosure. Some of these companies may not be legitimate and may try to scam the consumer, making an already bad situation even worse.

Before signing any papers, talk with an attorney or a state regulatory agency. It is important that you speak with someone who is familiar with the governing process of these companies. Also, make sure the business has filed a contract with your state and that they hold a valid state license. One more important thing, make sure they are willing to go through the United States Postal service for pickup and delivery of funds and documents. If not, it could be that they are just trying to skirt issues of mail fraud.

Get educated. Know what your options are. Have several different real estate agents give you a comparative market analysis (CMA) to see what your home would sell for. Seek the advice of an attorney if you want to pursue keeping your home.

Here are some of the common things many "scam" companies will say when you call and ask them if they can help you save your home.

1. "By signing the title of your home over to us, we can salvage your credit". Their reasoning is that when the foreclosure is issued, it will be recorded in their name.

Not So Fast - In truth, a foreclosure is always recorded against the borrower. It doesn't matter whose name is on title. The person who borrowed the funds is responsible. If you fall for this, you now owe money on something you no longer own.

2. "We will help you out of this situation by giving you some money AND paying your delinquent payments. Just sign the title to your house over to us."

Not So Fast- There is a lot of uncertainty here. If interested, proceed with caution and carefully consider this: Are you losing equity you may have built in your home? Can the buyer really cure the default? Will the buyer really make the payments? Do you want to be responsible for a loan on property you no longer own? There are a lot of maybe's and what if's in this scenario, so it's hard to make a call; be careful, and have an attorney on hand to review contracts before you sign them.

3. "Let us buy your home and you can lease it back from us. We'll make sure you can buy it from us later."

Not So Fast- Hypothetically, you sell your house for less than it is worth, rent it back for more than you should and then re-purchase it again later at a higher price. This doesn't sound like much of a bargain, does it? Now you've not only lost money, but you will most likely have a higher loan amount than you did before and probably at a higher interest rate. It will probably be harder to qualify for a loan and the payments will be more. Consider This? Sell the home on the open market or consider a hard equity loan if you have the equity in the property to do so.

4. "We can help you refinance your property and pay off some of your bills."

Not So Fast- Are these people really a loan modification specialists or do they have an ulterior motive and just want to make a buck on re-doing your loan - Remember, refinancing costs money - which is usually rolled into the new loan amount. This not only costs you money, but eats into the equity you have in your home.

If you are considering re-finance as an option, that is great, however keep in mind that when looking at lenders, get a Good Faith Estimate of cost and consider the total amount of the loan and repayment plan - Try not to get stuck on how much the monthly payment is, do your homework. Traditionally, these loans have higher interest rates and more fees.

5. "Foreclosures are my specialty. I know I can get you top dollar and help you out from the strain you've been under."

Not So Fast - There are agents who search the public records looking for people who are in pre-foreclosure. They give these names to investors who make ridiculously low offers, all in the name of "helping." Many times, if the seller had interviewed three agents from the area and gotten comparative market analysis' done on their homes, they would have gotten a better deal. Always do your homework and work with an attorney if possible.

6. "Declare Bankruptcy - Stop the Foreclosure."

Not So Fast - Foreclosures are NOT stopped by declaring bankruptcy; They are merely stalled which will give you a little extra time to organize your finances and put together a game plan. It is wise to contact a local attorney who specializes in bankruptcy and see if this is truly your best option. Wrong or uninformed choices can make the situation worse. Again, please do your homework and choose someone who is trusted and specializes in this area of the law. Don't get stuck with a general practitioner! A few probing questions should reveal their expertise and ask for references. Now is not the time for bargain shopping.

7. "In exchange for paying us to modify your loan, we can arrange to have your mortgage payments frozen for 3 to 5 months.

Not So Fast - Many companies ask for payment in advance for their assistance in stopping foreclosure and make false representations to homeowners. Some companies are not operating legally even though they offer money back guarantees. A number of these loan modification companies simply take the money and run, while others arrange only for you to receive the same unaffordable forbearance agreement you were already offered by your lender. Make sure you are working with a reputable company. Beware if they start offering rebates or making offers that sound too good to be true.

In closing, please remember to do your homework. Bad things happen to good people and if you find yourself in a difficult situation, don't lose your head. Speak to several experts and get several opinions. A knight in shining armor may end up being a nightmare.

If you are interested in more information on loan modification, please feel free to contact me and I will put you in touch with one of my preferred Loan Modification Experts that specialize in successful loan modification transactions. Together we will assist you every step of the way. I hope you have found this information useful.

The Loan Modification Series:

Loan Modification Series part 1 of 5 - Big Solution to A Growing Problem

Loan Modification Series part 2 of 5 - Are the Bank Willine to Play?

Loan Modification Series part 3 of 5 - Can a Loan Modification Assist in Avoiding a Foreclosure?

Loan Modification Series part 4 of 5 - Answers to the 10 Most Common Questions About Loan Modifications

Be sure to visit my website http://www.wisconsinloantips.com for more great information -

It is 1:46 pm, Saturday afternoon and the temperature on my weather station reads 3 degrees! Quite a warm up from the mornings temp . . . MINUS 5! Welcome to Wisconsin...

In December we saw 47.2 inches of the white stuff not to mention an average temperature of 15.8 degrees . . . burrrr -

I awoke this morning, grabbed a cup of Joe and proceeded into the sunroom to gather my thoughts and contemplate my day, when I was greeted by a beautiful sight. My fair weather hibiscus decided to burst out a bloom and smile on my day! Haven't seen this for months, and by night fall it will be gone......

Sometimes we overlook the small wonders that make us smile and bring joy. Take a moment out of your day , and look for the small wonders that surround you. Perhaps it is something someone said or did, please acknowledge them. Remember, Don't blink, you may just miss it!!!!

I must be really sentimental today!!!!!! LOL - Oh well, it feels good and I wanted to share my beautiful flower with you. .. Enjoy

Loan Modification Series: PART 4 of 5 -

The 10 Most Common Questions About Loan Modifications

For many people trying to avoid foreclosure, the process of renegotiating their loan can be difficult to understand. If you are considering contacting your lender to attempt negotiations for a loan modification in order to avoid foreclosure, it is vital that you are adequately prepared and able to present your case in the best possible light, The process begins with gathering as much information upfront as you possibly can to insure a successful negotiation. I have compiled a list of the Top 10 Questions about Loan Modifications. This list will enable you to be better informed about the way the loan modification process works and what you should expect from it:

•1. What is a loan modification; Specifics please?

A permanent change to one or more of the original loan repayment terms of a home loan that will enable the home loan to be reinstated or revised, resulting in a new payment schedule the borrower can afford. This is known as a loan modification.

•2. Can I include late charges from the lender in the Loan Modification?

This will be dependent upon the type of loan you have. Late fees and other penalties may be waived by the lender at the agreement of the loan modification. It is important that you get a complete breakdown of all fees, and request an explanation in writing from your lender.

•3. Can the Bank force an interior inspection if the property condition is questionable?

Absolutely; Although an inspection or an appraisal is not a condition of consideration for a loan modification, should there be a need to verify that the property possesses no physical conditions that could adversely affect the value, the lender could conduct any review it considers necessary.

•4. How do I determine whether or not I will qualify for a loan modification?

The primary consideration on the part of your lender is going to be whether you have the ability to make the new modified payment, now, and in the future. You will be required to show proof of your income, together with a detailed financial statement representing your income and expenses. This will confirm to the lender that if granted the loan modification, you will be able to afford the new, repayment schedule.

•5. Do I have to be behind on my payments to get a loan modification?

There are many lenders who have begun accepting applications for loan modifications from homeowners who are not yet behind on their payments. Do not take no for an answer, be pro-active. I here many stories of borrowers calling their lender and being advised that they cannot offer any relief until they are behind in their payments. Ask to speak to a manager and get a referral to another division to discuss your case. More that likely, if a borrower can demonstrate to the bank that in the near future they will not be able to afford their payments, they will work with you on a modification.

•6. What constitutes a valid Hardship situation?

Lenders typically consider divorce or separation; the death of a spouse, co-borrower or family member; illness; loss of income; job relocation; or military service to be acceptable reasons to entertain a loan modification. Although each situation is unique in and of itself, a very important aspect of a loan modification application would be a compelling letter.

•7. Can I stop a foreclosure by applying for a loan modification?

Of course; that is the point of a loan modification. Negotiating a loan workout solution with your lender can bring your loan current and have the foreclosure process stopped.

•8. Is it possible to have payments in arrears added back into my loan modification?

Yes, past due payments can be added to the new loan principal and amortized over the life of the loan.

•9. Is it best hire someone to help me, or can I negotiate loan modification without help?

Due to the fact that most loan modification companies require a substantial fee upfront, it is important to consider your current financial situation, together with your comfort level in dealing with your lender. It can be a difficult and time consuming process, so keep the big picture in mind when making this decision. Regardless of the choice you make, your number one priority should be to learn everything you can about the process of loan modification. It is important that you educate yourself on what is involved in getting a loan modification application approved and what your legal rights are. A highly skilled, knowledgeable professional could help with this.

•10. What are the first steps to move forward with a loan modification?

Do your homework - learn as much as you can about the loan modification process before contacting your bank's loss mitigation department or a loan modification company so you can make informed decisions.

There is an abundance of information and resources available to help. The key to your success is Knowledge and understanding. We are here to help point you in the right direction.

Stay tuned for PART V of Loan Modifications - "Avoiding Scams When Looking for Mortgage Payment Rescue"

If you are interested in more information on loan modification, please feel free to contact me and I will put you in touch with one of my preferred Loan Modification Experts that specialize in successful loan modification transactions. Together we will assist you every step of the way. I hope you have found this information useful.

The Loan Modification Series:

Loan Modification Series part 1 of 5 - Big Solution to A Growing Problem

Loan Modification Series part 2 of 5 - Are the Bank Willine to Play?

Loan Modification Series part 3 of 5 - Can a Loan Modification Assist in Avoiding a Foreclosure?

Be sure to visit my website http://www.wisconsinloantips.com for more great information -

Loan Modification Series: PART 3 of 5

Avoiding Foreclosure with Loan Modifications

With the rising rate of foreclosures in the United State, mortgage modifications are quickly becoming the answer to many people's prayers. Until recently, mortgage companies were reluctant to provide the option of mortgage modification to people facing foreclosures. However, with the ever-increasing amount of homes in danger of foreclosure, lenders are more willing to try new and different approaches to help a homeowner keep their home. They have come to realize that they can minimize their loss and avoid bankruptcy by working with the homeowners.

A loan modification, sometimes called a mortgage modification, allows borrower the option to re-negotiate the terms of their mortgage loans, thereby reducing the required monthly payment. This gives people who would have otherwise lost their home to foreclosure a better chance to keep their home. In order to avoid foreclosure, the lender will modify your mortgage and create a new payment plan.

There are many reasons for borrowers and lenders to work through this difficult situation together and to devise a suitable plan that will work for all involved parties. In today's market condition, the option of selling your home may not be feasible for you. Consequently, you will have to work together with your lender if you are going to save your home from foreclosure.

Modifying your mortgage is usually the best way to make sure foreclosure does not occur. Lenders will still get their money and the borrower can keep their home through the negotiation of a new payment structure. It is not, however, as simple as you may think to negotiate a change in your mortgage. The lender will require proper documentation to prove your current financial standing before a successful loan modification can occur. The bank will also use this information to ensure the homeowner will be able to repay the new loan.

Although not all banks will offer the same solutions, it is never a bad idea to bring it up and see what they say. It may be just what is needed for you to keep your home out of foreclosure. In today's struggling economy, more and more lenders are making themselves available to borrowers; however, they don't want your home. They exist to lend money, not own property. And since over two million houses face foreclosure, many banks are struggling too. It will take a lot of time and effort; just keep your eye on the finish line. You need to protect your most valuable investment looking in to a mortgage loan modification to prevent foreclosure.

We are entering a historical era and it will be very interesting to see how things play out. Please stay tuned for PART IV "The Ten Most Asked Questions About Loan Modifications"

If you are interested in more information on loan modification, please feel free to contact me and I will put you in touch with one of my preferred Loan Modification Experts that specialize in successful loan modification transactions. Together we will assist you every step of the way. I hope you have found this information useful.

The Loan Modification Series:

Loan Modification Series part 1 of 5 - Big Solution to A Growing Problem

Loan Modification Series part 2 of 5 - Are the Bank Willine to Play?

Be sure to visit my website http://www.wisconsinloantips.com for more great information -

Loan Modification Series: PART 2 of 5

Why The Banks Will Lower Your Rate Without Refinancing

My, my, how things have changed . . . . Just a few years ago, real estate prices were booming. "Sold" signs that were once the "norm" have now been replaced with foreclosure signs. Lenders are having difficulty attracting investors because of the enormous bad debt on their books. The never ending spring of fresh consumers who could be enticed with sub-prime mortgage products have gone by the wayside as lenders have gotten trapped between the FDIC and possible loan fraud investigations.

Today, banks are looking for a means to save themselves from the unexpected crash of the sub prime mortgage market and they think the solution has come through a new loan correction tool - the loan modification. This tool allows lenders to turn failing loans into positive loans with a few small adjustments. Late fees, unpaid charges for principal or interest may not be wiped away, but can be integrated into the renegotiated loan conditions.

Clients who are having difficulty making their monthly mortgage payment and who fully expect to face foreclosure are offered an opportunity to modify their loans. To make the monthly terms manageable for the homeowner, the lender and borrower begin renegotiation of the present mortgage conditions. Often times, this requires switching into another loan product, for instance, from adjustable (ARM) to fixed rate mortgage, or it could simply be a reduction in the interest rate. Due to the fact that the property is saved from a possible foreclosure and the mortgage is reinstated, the investor has preserved another loan from going bad . . . and thereby increasing their bottom line and alleviating further loss.

Current experiences show that Lenders are not being as accommodating with investor loans, however. Presently, loan modifications on primary residences have seen success. If the borrowers cannot prove that their inability to pay is due to a change in income or that the new loan terms will make it possible for them to keep up with the payments, lenders will most likely reject the modification request and opt for foreclosure. Investors are not going to take a chance on a scenario that is not solid.

Loan Modification is advantageous to both parties involved due to the fact that the bank will not lose their income and the borrower will retain his home, loan and credit standing. While giving up the home may be a good option for some borrowers, modifying the loan is often a better choice for a family who wants to remain in their home and make their home loan work for them.

This issue is no longer isolated to certain areas of the country. It is impacting all. Please look for for PART 3 "Avoiding Foreclosure Through Loan Modifications"

The Loan Modification Series:

Loan Modification Series part 1 of 5 - Big Solution to A Growing Problem

Loan Modification Series part 2 of 5 - Are the Bank Willine to Play?

If you are interested in more information on loan modification, please feel free to contact me and I will put you in touch with one of my preferred Loan Modification Experts that specialize in successful loan modification transactions. Together we will assist you every step of the way. I hope you have found this information useful.

Be sure to visit my website http://www.wisconsinloantips.com for more great information -