JoAnna Jensen

If you find yourself in a financial hardship and you are considering your options on what to do with your home, what to do about your credit cards you do have options. Although this blog is not intended to replace legal counsel I do give good information to start with.

First, if you are noticing your having a financial hardship you want to do something about it sooner rather than later. Dont think you will use your money from savings and then everthing will be ok. You dont want to pay bills with credit cards and drain your savings account if you have had a life changing event. Loss of a job, divorce, much lower income, death in family, interest rate adjusting to a rate you can not afford. You may be able to get help. Most lenders have their own modification program or depending on who owns your note they may go by the Making Home Affordable plan, FDIC. Basically they all do about the same thing which is:

You will know if your paying too much for your first loan if your first mortgage payment is more than 31% of your gross income, including principal interest taxes and insurance. If your ONLY problem is that your value is too low you most likely will not qualify for a modification, IF you also have a financial hardship along with that you may qualify modification.

If you decide you want assistance make sure you contact a person who has successfully modifed mortgages in the past. Also, they need to be a realtor or an attorney to modify your loan. A realtor can not ask for upfront fees unless he has an advanced fee agreement with the Department of Real estate. An attorney is a better choice to modify or short sale your home because they have legal knowledge and can use information about Chapter 13 to strip unsecured loans.

Things you should know/ask when calling your lender. Ask them what they have as your homes Net Present Value. The negotiator should know this information. If your home passes this test it means your lender/investor should modify your loan.

Terms can look like this, as found in the FDIC's website under loan modifications, program works like a "Waterfall"

Minimun Criteria:

Owner Occupied originated on or before Jan 1, 09

Unpaid principal balance equal to or less than $729,000

1: Reduce interest rate possibly to 2 or 3%

2: extend the term of your loan to 40 years, 50???

3: Forebear principal this may be a better option than principal foregiveness because you MAY be taxed on principal forgiveness!! Forebearance is potentially better. If you owe $700,000 but your home is worth $500,000 instead of forgiving $200,000 and potentially getting a taxable event the lender takes off the $200,000 overage and amortizes the loan at the current market value. The goal is to get your payment to 31% of your gross income.

There is also a short sale option, if you can buy your home for several hundred k less than you currently owe that may be an option to consider.

Dont wait untill you have used all of your savings to realize your facing a change in your finances.

Credit cards can work the same way. Sometimes it takes longer for them to start negotiating. and there are usually a few different programs. Dont enroll in a program that cost you 15% of the Debt!! that is too much.

Best of Luck!! Family first!! Dont let your credit score stress you out.

JoAnna Jensen

Realtor Paralegal

Volo Law Group

925 699 5041

Is this economy stressing you out? Are you finding yourself worried about making mortgage payments and robbing peter to pay paul.

As a Debt Negotiator, certified by International Association of Professional Debt Arbitrators I can help you get back on track. If you find that you are maxed out with your credit cards, or only paying the minimum you may be relieved to know their is help.

Your first and most important payment should always be your mortgage and living expenses.. You go down the line from importance on secured to unsecured lines of credit. If you are not also saving from 8-10% per month please give me call. To help end the stress and start fresh I can give you a free consultaiton.

I have designed my company on bringing savings to my clients where most other firms charge a flat rate on your total debt.

For a free no pressure consultation on your crredit cards give me a call.

JoAnna Jensen

Certified Debt Negotiatiors

925 699 5041

IAPDA certified

I HAVE RECEIVED CALLS FROM PEOPLE WANTING TO KNOW MORE ABOUT LOAN MODIFICATIONS. NOT SURE IF THEY QUALIFY.

1: OWNER OCCUPIED.

2: FINANCIAL HARDSHIP - HARD TIME PAYING ALL BILLS

3: IS THERE A VIOLATION IN YOUR LOAN?? IS YOUR LOAN 3 YEARS OLD OR LESS?

4: HAVE YOU LOST YOUR JOB OR HAS YOU INCOME DECLINED

5: ARE YOU PAYING MORE THAN 40% OF YOUR GROSS INOME TO YOUR MORTGAGE?

6: IS YOUR MORTGAGE INTEREST RATE OVER 7.5%

7: DO YOU HAVE A NEGATIVE AMORTIZATION LOAN

IF YOU ANSWERED YES TO A FEW OF THESE QUESTIONS YOU MAY BE ABLE TO QUALIFY FOR A LOAN MODIFICATION. THE MAKING HOME AFFORDABLE PLAN HAS BEEN IMPLIMENTED TO BRING STANDIZATION TO LOAN MODIFICATIONS.

DONT BE A VICTIM!!! THERE ARE TWO BUSINESS THAT CAN CHARGE UPFRONT FEES FOR A LOAN MODIFICATION:

1: ATTORNEY

2: ADVANCED FEE AGREEMENT THRU THE DEPARTMENT OF REAL ESTATE.

PLEASE PLEASE ASK QUESTIONS: HAVE YOU FOUND A REALTOR WHO SAID THEY WOULD DO YOUR LOAN MODIFICATION FOR FREE??!!! BECAREFULL. MAKE SURE AND ASK THEM HOW MUCH TIME AND PERSISTANCE THEY WILL PUT INTO SAVING YOUR HOME AND IF THEY KNOW ANY OF THE LAWS RELATED TO DOING SO. SOME REALTORS HAVE WENT TO SEMINARS TO USE MODIFICATION AS A TACTIC OF GETTING SHORT SALE LISTINGS!! SO, IF YOU WANT TO KEEP YOUR HOME YOU HAVE THE RIGHT TO KNOW THE FULL INTENTIONS OF WHO EVER IS WORKING FOR YOU.

RECENTLY I HAD A CLIENT WHO WENT TO A REAL ESTATE COMPANY WHO DID LOAN MODIFICAITONS. THEY DIDNT DO ANY WORK, NO FOLLOW UP CALLS, THEN TOLD THE CLIENT SHE WAS DECLINED AND THEY NEEDED TO SHORT SALE HER HOME. WHEN I MADE THE CALLS I FOUND OUT THERE WAS NO ONE WOKING ON THIS MODIFICATION. I WAS ABLE TO STOP THE FORECLOSURE PROCEEDINGS AND WILL LIKELY SAVE THIS CLIENTS HOME AND THOUSANDS OF DOLLARS OFF HER MONTHLY MORTGAGE!!! YOU HAVE THE RIGHT TO KNOW THEIR INTENTIONS, HOW OFTEN THEY CALL THE LENDER, THEIR EXPERIENCE, WHAT THEY TYPICALLY GET DONE. ETC.

ALSO, MAKE SURE AND FIND OUT ABOUT POTENTIAL LIABILITY AND WHAT MAY HAPPEN WITH A DEFICIENCY BALANCE AND TAXES. AS AN ATTORNEY WE CAN GIVE YOU ADVICE ON THOSE ISSUES.

I STARTED AS A REALTOR, HOWEVER, MY FULL INTENTION HAS ALWAYS BEEN TO HELP MY CLIENT KEEP THIER HOME.

JOANNA JENSEN

THE BAYARD LAW FIRM

PLEASANTON, CA

925 699 5041

LOAN MODIFICATIONS, DEBT SETTLEMENT, PURCHASES, SALES, SHORT SALE

HI,

I AM A LOCAL REALTOR/PARALEGAL. I WORK FOR AN ATTORNEY IN THE SOUTH BAY. WE SPECIALIZE IN LOAN MODS, DEBT SETTLEMENT, SHORT SALES, TAX SETTLEMENT. AND REGULAR PURCHASES AND SALES OF RESIDENTIAL REAL ESTATE.

I HAVE TO COMMENT ON AN APPOINTMENT I HAD YESTERDAY. A PERSON WHO IS IN DEBT AND STRESSED. APPARENTLY THE FIRST PERSON SHE SPOKE WITH REGARDING LOAN MODS AND DEBT SETTLEMENT ALMOS LED HER ASTRAY!!!

WHAT SHE WAS TOLD WAS, "DONT MAKE ANY MORTGAGE PAYMENTS NOR CREDIT CARD PAYMENTS FOR 3 OR 4 MONTHS" WRONG!!! AND CAN BRING ON LIABILITY. CAN THIS PERSON GUARANTEE SHE WILL GET MODIFIED??? WHAT IF SHE DOESNT, SHE IS IN MUCH WORSE OF A SITUATION. IF SOMEONE TELLS YOU NOT TO PAY, OR THEY CAN GUARANTEE A CERTAIN OUTCOME BE CONCERNED!!! WE DO NOT GUARANTEE AN END RESULT, EXCEPT FOR WHAT WE CONTROL AND THAT IS, TO PUT THE PACKAGE TOGETHER IN A WAY THAT MAKES SENSE. TO SHOW YOUR LENDER THAT MODIFYING YOUR LOAN IS A GOOD BUSINESS DECISION FOR ALL INVOLVED. IF EVERYONE STOPS MAKING PAYMENTS THAT WILL LEAD TO MORE UNSTABILITY AND PROBLEMS.

IF YOU ARE IN FINANCIAL TROUBLE, AND NOTICING THAT YOU ARE PAYING BILLS FROM YOUR 401K THEN ITS TIME TO REEVALUATE. YOU MAY BE ABLE TO DO THIS YOURSELF IF YOU NEED HELP IM HAPPY TO HELP OR DO IT FOR YOU.

1) CONTACT YOUR LENDER ASAP, WHEN YOU KNOW YOUR IN TROUBLE.

2) START RECORDING ALL YOUR BILLS AND EVERY PENNY YOU SPEND.

3) TRY TO CUT DOWN ON THINGS THAT ARE NOT ESSENTIAL

4) PAY YOUR HOME AND HOUSE RELATED BILLS BEFORE CREDIT CARDS. CONTACT CREDIT CARD COMPANY WHEN YOU SEE A PROBLEM.

5) SEEK HELP IF YOU NEED IT.

BASICALLY YOU NEED TO LET YOUR LENDER IF YOUR HAVING TROUBLE.

THE MAKING HOME AFFORDABLE PLAN IS FOR OWNER OCCUPIED PEOPLE WHO ARE IN A FINANCIAL HARDSHIP:

EITHER MAKING LESS MONEY, OR THEIR MORTGAGE WENT UP. PAYING BILLS ESSENTIALS ON A CREDIT CARD. ONLY PAYING THE MINIMUMS. TAKING MONEY FORM SAVINGS OR 401K TO COVER BILLS.

WHAT THE PLAN DOES IS AS FOLLOWS:

1)REDUCE YOUR MORTGAGE TO 31% OF INCOME, IF STILL NOT AFFORDABLE REDUCE INTEREST TO 2%, POSSIBLY EXTEND TERM OF LOAN TO 40 YEARS. THEN POSSIBLY REDUCE PRINCIPAL OR FORBEAR PRINCIPAL TO THE END OF THE LOAN.

OUR FIRM CAN HELP WITH YOUR MODIFICATION, BE WARY OF OTHER PEOPLE OR BUSINESS DOING LOAN MODS WHO CLAIM THEY CAN DO THINGS BETTER THAN SOMEONE ELSE IN THE SAME FIELD. DONT GIVE MONEY BEFORE YOUR MODIFIED TO ANY BUSINESS OTHER THAN AN ATTORNEY OR ADVANCED FEE AGREEMENT REALTOR.

ALSO, DONT BELIEVE WHEN A BROKER OR ATTORNEY SAYS THEY HAVE THEIR OWN CONTACT OR SPECIAL PERSON AT THE LENDERS. WE ALL HAVE TO CALL THE SAME NUMBER. THINK ABOUT IT, LOAN MODIFICATION IS REALATIVLY NEW, IF ONE BUSINESS OR PERSON SAYS THEY HAVE HELPED THOUSAND, AND FOR PROOF. ONE MODIFICATION TAKES 21/2 TO 5 MONTHS TO DO THEY WOULD HAVE TO GET 100 CLIENTS PER MONTH FOR OVER A YEAR AND THIS REALLY STARTED ABOUT 1 YEAR AGO. IF IT SOUNDS TO GOOD TO BE TRUE DONT BE A VICTIM.

BEFORE YOU SHORT SALE, GIVE ME A CALL: WE HAVE SOLUTIONS TO YOUR FINANCIAL SITUATION AND MY FIRST GOAL IS TO HELP YOU KEEP YOUR HOME WITH AFFORDABLE PAYMENTS.

JOANNA JENSEN

REALTOR PURCHASES, SALES, DEBT SETTLEMENT, LOAN MODIFICATION

THE BAYARD LAW FIRM

925 699 5041

THE ECONOMY IS IN THE NEWS EVERY WHERE!! LAY OFFS, PREDATORY LOANS, ITS EVERYWHERE.

WHEN TIMES ARE GETTING TOUGH YOU NEED TO THINK ABOUT YUOR OPTIONS, DONT SIT AND WAIT, EVERYTHING WILL FLOAT AWAY!!

LENDERS ARE WORKING WITH BUYERS TO MODIFY LOANS AND KEEP THEM AS A PERFORMING ASSET. ONE RECENT MODIFICATION WE HAD WAS WITH A LENDER THAT WAS THOUGHT THAT THEY DID NOT DO MODIFICATIONS, ONLY FOREBARENCE PLANS, A FEW MONTHS NO PAYMENTS.

WE NEGOTIATED A PRINCIPLE REDUCTION OF $95,000+ FOR OUR CLIENTS SAVING THEM MONEY AND KEEPING THEM IN THEIR HOME.

WITH ALL OF THE NEW PEOPLE JUMING INTO MODIFICATIONS YOU DO NEED TO BEWARE. MAKE SURE THE COMPANY YOU CHOOSE WILL AND CAN DO THE JOB.

NEVER NEVER PAY SOMEONE WHO ISNT WORKING WITH AN ATTORNEY OR HAS AN ADVANCED FEE AGREEMENT WITH THE DRE. THEY COULD TAKE YOUR MONEY AND NOT DO ONE MINUTES WOTH OR WORK!!! LEAVING YOU IN A MUCH WORSE SITUATION.

IF YOU NEED A FREE CONSULTATION, PLEASE GIVE ME A CALL.

JOANNA JENSEN

PARALEGAL REALTOR

THE BAYARD LAW FIRM

925 699 5041