A Trial mortgage modification is when your lender/servicer puts you as a homeowner into a temporary Note Modification while they evaluate your paperwork to see if you qualify for a permanent Loan Restructuring. The temporary terms are usually for a period of three months. In general, the Loan payments should be less than what you are currently paying. Keep in mind that the trial Loan Workout terms will not be the same as the permanent Loan workout florida jumbo loan terms.
One thing that you have to be mindful of is during the trial period you must make all of your payments on time. This is a standard condition of the trial period, else they will deny your request for a Note Modification and you may find yourself in foreclosure soon.
These types of temporary Mortgage Adjustment programs are all a little different depending on the lender and what state you are in. So I will provide a few more tips for those that are being offered such programs and these are general guidelines only.
One of the key expectations is the homeowner will receive upfront trail Note Modification paperwork directly from the mortgage company outlining all the terms before ever making a trial payment. You will need to sign the trial papers and send that plus the first trial payment back to the mortgage company.
While the trial period is moving forward, the bank will fully evaluate your Loan Workout package to determine if you qualify. If you are working with an Attorney, the full Note Modification package would have been submitted to the servicer prior to the trial period. In these cases, the reputable Attorneys already know you will qualify and it is a matter of giving the lender time to evaluate everything.
For the most part, I think these trial periods are more of a stall tactic for the lender to get money from the TARP funds immediately instead of waiting for the permanent Mortgage Modification program. Remember the permanent program terms take 60 to 90 days, and the trial period begins soon after discussions with the note holder. This gives the servicer money upfront and more time to stall and commit to a Mortgage Modification. Of course, the bank are working in their best interest and not the homeowners.
If you have tried a Mortgage Adjustment on your own, usually the bank takes that information over the phone and later offers the trial Note Adjustment. If this is the case, the process above is not always followed. In most cases, the note holder have verbally qualified you bases on a phone conversation or partial paperwork sent over by the homeowner. I would be very leery of any verbal commitments by the financial institution, “buyers beware”.
Many times the homeowner never receives the upfront trial Note Adjustment paperwork and is only going on a verbal by someone in the bank. Then after the trial period, they never receive any Mortgage Restructuring documents and find their home being foreclosed on. This happens sometimes in part because the mortgage bank verbal qualifications did not match up with the paperwork sent over by the homeowner during the trial period.
Unfortunately, the mortgage banks are taking advantage of homeowners in this situation, in part because homeowners just don’t know what to expect or even demand. So, if this is happening to you, you know now what to ask for, and that is upfront trial Note Restructuring papers and final permanent papers.
If you are not getting these papers as described, then I say buyer beware. You can contact a Mortgage Workout Attorney at that point or just ride it out and see what happens. Just a quick note on the Mortgage Adjustment Attorney, the reputable ones are almost 100% successful with permanent workout programs after the trial period, so feel confident that you’re in good hands.
Monday, September 28, 2009
Wachovia Attorney Loan Modification Success Story California
This is a Wachovia loan workout success story from Laguna Beach California. The client had been trying for months on her own to workout her own Lawyer Loan Adjustment with Wachovia.
She was 3 months behind on her mortgage and was in one of those original “pick a pay” florida hard money from World Savings at a rate of 6.875%. The “pick a pays” are not exactly the same as the Countrywide negative amortization programs. However, these are those programs that were looked down upon by many! They seemed to be the dirty word in the industry, but I think they were great for certain people because the interests rates were very low on some and allowed cash flow for those that needed it during tough times.
Anyway, my borrower did not qualify for Home Affordable Modification Program under the [/spin]Obama|Federal|Government[/spin] Lawyer Note Change because she owed $960,000 on her home at the time, which is a loan amount that is too high for the qualifying matrix of the program. As a side note, her original mortgage balance was lower, but with the Wachovia “pick a pay” note, she had paid the lowest loan payment which was always less than her interest, and thus her principal balance grew. She also had not paid her property taxes for the last two payments.
Since the real estate market was in a decline at the time, she found herself underwater in her note, meaning she owed more than her house was worth. At the time of the Wachovia Attorney Loan Workout, her property was worth $700,000 or so, not sure what it is worth right now.
She spent over 6 months fighting Wachovia and got nowhere but a denial and plenty of worry of course. By the way, Wachovia ranks at the bottom of the list as far as completing any type of work out programs for homeowners. So, my client finally reached out[spin] me with her story and decided to hire [spin]one of our Attorney to handle her case, as she really had no other option at that point if she wanted to keep her house. She did not want to bankruptcy if at all possible.
While the Attorney was handling her case, she changed jobs, which is always a concern as any change in the person's financial situation could impact the outcome of the Attorney Home Alteration. So, as a reminder to all, do your best to keep your financial situation the same, i.e. NO CHANGES, unless cleared by the Lawyer first!
Within three weeks of submitting the Attorney Mortgage Adjustment to Wachovia, our Attorneys had terms already modified. A principal write off of $120,000, forgiveness of the late payments, property taxes added on to the principal balance, and a 40 year fixed rate at 6.125% were the final terms.
She was 3 months behind on her mortgage and was in one of those original “pick a pay” florida hard money from World Savings at a rate of 6.875%. The “pick a pays” are not exactly the same as the Countrywide negative amortization programs. However, these are those programs that were looked down upon by many! They seemed to be the dirty word in the industry, but I think they were great for certain people because the interests rates were very low on some and allowed cash flow for those that needed it during tough times.
Anyway, my borrower did not qualify for Home Affordable Modification Program under the [/spin]Obama|Federal|Government[/spin] Lawyer Note Change because she owed $960,000 on her home at the time, which is a loan amount that is too high for the qualifying matrix of the program. As a side note, her original mortgage balance was lower, but with the Wachovia “pick a pay” note, she had paid the lowest loan payment which was always less than her interest, and thus her principal balance grew. She also had not paid her property taxes for the last two payments.
Since the real estate market was in a decline at the time, she found herself underwater in her note, meaning she owed more than her house was worth. At the time of the Wachovia Attorney Loan Workout, her property was worth $700,000 or so, not sure what it is worth right now.
She spent over 6 months fighting Wachovia and got nowhere but a denial and plenty of worry of course. By the way, Wachovia ranks at the bottom of the list as far as completing any type of work out programs for homeowners. So, my client finally reached out[spin] me with her story and decided to hire [spin]one of our Attorney to handle her case, as she really had no other option at that point if she wanted to keep her house. She did not want to bankruptcy if at all possible.
While the Attorney was handling her case, she changed jobs, which is always a concern as any change in the person's financial situation could impact the outcome of the Attorney Home Alteration. So, as a reminder to all, do your best to keep your financial situation the same, i.e. NO CHANGES, unless cleared by the Lawyer first!
Within three weeks of submitting the Attorney Mortgage Adjustment to Wachovia, our Attorneys had terms already modified. A principal write off of $120,000, forgiveness of the late payments, property taxes added on to the principal balance, and a 40 year fixed rate at 6.125% were the final terms.
Sunday, September 20, 2009
$8000 Incentive Finishes December 1st 2009
One of the biggest reasons driving florida mortgage lender home owners into the first time home buying market has been the Federal $8000 tax credit incentive for florida fha loan.
This program has been a big advantage to first time home buyers (technically classified as anyone not having owned a home in the last 3 years) that had previously been on the fence wondering when the market was going to hit bottom.
With the recent Federal Reserve Treasury Secretaries announcement that the recession is nearly over, we think it’s wise to point out that this market has probably reached it’s bottom. There has been over a year for buyers to buy up some of the rock bottom priced foreclosed homes on the market. New construction has not even played a factor in the home market since late 2007.
Now the first time buyer incentive is ending as of December 1st of 2009. Since economic indicators are beginning to appear optimistic it is not likely that this program will be extended past the December ending.
This means that any persons looking to take advantage of the $8000 tax credit must close on their transaction before December 1st. Since it can take often 30 days for the loan process on Government loan programs, that means anyone looking to take advantage of the $8000 tax credit needs to be under contract by November 1st of 2009. That is only six weeks from now!
If you have been waiting for home prices to come down… we STRONGLY urge you to act now so that you can claim your $8000 tax credit this year! Time is running out very quickly.
Financing rates are still VERY low, below 5% today. If you have been looking at purchasing a home in the near future or know someone who has been, please have them act now to ensure they get their $8000 tax credit.
This program has been a big advantage to first time home buyers (technically classified as anyone not having owned a home in the last 3 years) that had previously been on the fence wondering when the market was going to hit bottom.
With the recent Federal Reserve Treasury Secretaries announcement that the recession is nearly over, we think it’s wise to point out that this market has probably reached it’s bottom. There has been over a year for buyers to buy up some of the rock bottom priced foreclosed homes on the market. New construction has not even played a factor in the home market since late 2007.
Now the first time buyer incentive is ending as of December 1st of 2009. Since economic indicators are beginning to appear optimistic it is not likely that this program will be extended past the December ending.
This means that any persons looking to take advantage of the $8000 tax credit must close on their transaction before December 1st. Since it can take often 30 days for the loan process on Government loan programs, that means anyone looking to take advantage of the $8000 tax credit needs to be under contract by November 1st of 2009. That is only six weeks from now!
If you have been waiting for home prices to come down… we STRONGLY urge you to act now so that you can claim your $8000 tax credit this year! Time is running out very quickly.
Financing rates are still VERY low, below 5% today. If you have been looking at purchasing a home in the near future or know someone who has been, please have them act now to ensure they get their $8000 tax credit.
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