Oct
31
Cash For Keys Foreclosure Agreement
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Loan Modification Agreement: the Solution to the Foreclosure Crisis
The global financial crisis that is now holding a firm grip on all economies of the world has fueled the fires of foreclosure to almost intolerable levels. Many homeowners have and are about to lose their homes to foreclosure sales. Overwhelming inflation makes making on-time payments very rare. Thus borrowers are being buried deeper and deeper in the quicksand of compounding interests. Lost into confusion and not knowing what to do, homeowners could only watch as foreclosure takes their homes away in one fell swoop. In reality, however, the would have been able to save their homes provided they got the right help. A loan modification agreement is a homeowners best weapon in combating foreclosure. A loan modification agreement is a long-term solution for borrowers who in their current financial will never be able to pay their existing loan. Loan modification agreements are very reliable and have already helped thousands save their homes.
Given below are three helpful pointers to help you in obtaining and exploiting all the potential benefits of a loan modification agreement.
Pointer One
Gather all your financial documents and any other records that can aid in determining your credit score. Your credit score is vital in the sense that it represents your credit credibility in numerical terms. Prepare all the records such us your bank accounts records, tax records, payroll slips, credit records, and receipts of every major expense in a well presented manner and be ready to show them to your lender. The financial trails this documents will produce will greatly influence your lender on whether or not he will grant your application for a loan modification agreement. The adjustments may come in one or a combination but not limited to reduction in interest rate, or a change from a floating to a fixed rate, or in how the floating rate is computed; reduction in principal; reduction in late fees or other penalties; lengthening of the loan term; and capping the monthly payment to a percentage of household income.
Be truthful with the records and present all the documents you possibly could, with explanations for irregularly large withdrawals or deposits. Cheating your lender will greatly damage your credit score and may cause you much difficulties on getting future loans.
Also make sure you have some liquid cash on hand when making your application. Most lenders ask for a reduction of your deferred payments as proof of your sincerity towards wanting to pay up your loan. Such payment will show your dedication towards saving your home. Be patient as lenders are often not easy to convince. To be sure, you can ask for a loan modification specialist to help you in the negotiations.
Pointer Two
You can attempt to establish a dialogue with someone at your lending institution who can make or greatly influence the decision regarding your request for a loan modification agreement. This can be really hard and frustrating, as the possibility that they will just ignore your efforts is very high. Both the collection officers and the loss mitigation specialists of your lending institution has in top priority making you pay your bills and not changing the terms of your existing loan. Just the task of finding these people may be very difficult for ordinary homeowners.
As whether or not you will obtain a loan modification agreement or not hangs in the balance, obtaining the help of a loan modification specialist is most likely to be the key to tip the scales to your favor. Lenders always prefer negotiating a loan modification agreement with a third party than the borrower himself. The experience and expertise of loan modification specialists along with their usually many connections with lenders will greatly boost the possibility of your loan modification request being approved. They may even have easy access to the decision makers of your lending institution. Good loan modification specialists also have lawyers at their payroll which can give you advice on possible legal remedies you can take. With the assistance of the right professionals, getting your loan modification agreement is almost assured.
Pointer Three
Once you have secured your loan modification agreement with your lender, be wise in your budget. Always save sufficient cash for your house payments and constantly follow up until all mortgage payments are complete to make sure nothing is going wrong. Homeowners tend to be negligent and complacent once they get their loans modified and end up still losing their homes. Be wise, make most of that second chance of keeping your home. Always keep in mind that what you hold is an agreement, therefore, both you and the lender should comply with its terms. Keeping up your end of the bargain assures the success of the loan modification agreement.
You can get the help of the best loan modification specialists to negotiate a good loan modification agreement for you from 24VIPINC.
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Oct
31
National Foreclosure Advocates
Filed Under Foreclosure | Comments Off
Powerful Foreclosure Protections Afforded Active Duty Military Personnel
Powerful Foreclosure Protections Afforded to Active Duty Military Personnel
If you are in the Military and are currently on ACTIVE DUTY, or were on active duty within the last 90 days, then there is a law that provides you some very specific and powerful protection against foreclosure.
The Service Members Civil Relief Act of 2003 (SCRA) provides specific help and protection from foreclosure for individuals who are members of our armed forces. The Act applies to all active duty personnel, as long as you were not on active duty when you bought your house and signed the mortgage papers. The Act also applies if you co-signed on a loan with a service member.
If you bought your house while you were already on active duty then the law does not apply to you. Service Members covered by SCRA include all members on Federal active duty, including:
- Regular members of the Armed Forces (Army, Navy, Air Force, Marine Corps and Coast Guard)
- Reserve, National Guard and Air National Guard personnel who have been activated and are on Federal active duty (whether as volunteers or as a result of involuntary activation)
- Inductees serving with the armed forces
- Public Health Service and National Oceanic and Atmospheric Administration Officers detailed for duty with the armed forces
- Persons who are training or studying under the supervision of the United States preliminary to induction
- National Guard and Air National Guard personnel on duty for training or other duty authorized by 32 U.S.C. §502(f) at the request of the President, for or in support of an operation during a war or national emergency declared by the President or Congress.
The law provides four basic types of relief for service members that are facing foreclosure:
1. Interest Rate Cap
2. Stay of Proceedings
3. Suspension of payments
4. Void the foreclosure sale
Getting the interest rate cap is automatic. All you have to do is ask. We have provided several sample letters in our download section. For free access to the letters as well as many other downloads just join our site. It’s free!
The remedies in 2, 3, and 4 are a little more complicated and you will have to get a Court involved. In order to qualify for these remedies you will have to show the Court that your ability to pay the loan has been “materially affected” by your active duty. It usually isn’t hard to show that your ability to pay was materially affected. For example, if you were making more money when you were a civilian than you do in the military then that, right there, could be enough and would be considered “material”.
Additionally, you can use these provisions on all of your loans, not just your home loan. You should speak with your commanding officer about obtaining free legal assistance if you are having problems implementing the law on your own. In most case the Judge Advocate General Corps (JAG) can help you obtain a lawyer at no cost.
Let’s explore each of these remedies individually to see exactly how each one works:
Interest Rate cap of 6%.
If you are having trouble making your mortgage payments while you are on active duty, you can request your lender to lower your interest rate down to 6%. In fact, the 6% interest rate cap applies to any debt that you incurred before you went on active duty. So, in other words, it applies to car loans and credit cards and any other consumer debt. This can provide huge relief to your family while you are deployed. It basically means that you can get all of your payments lowered across the board. This benefit alone could help you to avoid foreclosure. The interest rate cap starts on the date that you entered active duty.
Additionally, you can make your lender apply the 6% rate cap retroactively if you were released from active duty any time in the past six months. For example, let’s say that you are just now finding out about this 6% rate cap. You were on active duty during the past year but never informed your lender. That’s OK, as long as it hasn’t been more than 6 months since you were released, you can still request the rate reduction and it will be applied dating back to the day that you first went on active duty. You could be entitled to a credit!
It’s simple to get this rate reduction. All you have to do is notify your lender by writing a letter and attaching a copy of your orders to the letter. Your lender has to comply. They don’t have a choice.
A sample letter is shown at the end of this section. You can find your lender’s address on a recent mortgage statement or payment coupon. Your letter should be sent certified mail if possible.
Stop Foreclosure Proceedings
Mortgage (Judicial State): If you signed a mortgage and your lender has already started formal foreclosure proceedings such as filing a foreclosure lawsuit, you can have those proceedings stopped immediately. A lender is strictly prohibited from proceeding with a foreclosure while you are on active duty and for 90 days following your release from active duty. All you have to do is write a letter to the lender informing them of your active duty and stating that your active duty has materially affected your ability to comply with the terms of your mortgage. You can show that you were materially affected if, for instance, you had more income before you were on active duty than you make now while on active duty.
In addition to your lender, you need to notify the court and the lender’s attorney that you are on active duty. This can be done as simply as writing a letter to the Judge who is handling the case and having the Clerk of Court file a copy of the letter in the case file. Also, send a copy of the letter to the bank’s attorney who filed the lawsuit.
Be sure to include the Case Number in your letter. You should also provide a copy of your orders. The case number as well as the Judge’s name can be found on the lawsuit that was served upon you. If you no longer have a copy of the lawsuit, you can obtain a copy by calling your local Clerk of Court. In some cases these documents are available on line.
Deed of Trust (Non-Judicial State):
If you signed a Deed of Trust and the trustee has recorded a Notice of Default, then you can have the Trustee’s sale and all collection activity stopped immediately. A Trustee is strictly prohibited from proceeding with a foreclosure while you are on active duty and for 90 days following your release from active duty. All you have to do is write a letter to the lender informing them of your active duty and stating that your active duty has materially affected your ability to comply with the terms of Deed of Trust. In addition, you should inform the Trustee of your active duty.
If you no longer have a copy of the Notice of Default, you can obtain a copy from your local County Recorder. In many cases, these records are available on line. The Notice of Default will show the name and address of the Trustee. Make sure you send your letter via registered mail.This may be a good time to speak to your commanding officer about obtaining free legal assistance from the Judge Advocate General’s Corps (JAG).
Suspend payments on the loan
If you can show that your ability to pay the loan has been materially affected by your active duty, you can get the Court to suspend all of your payments until your active duty is completed. Better yet, you don’t even have to be delinquent. You can get this relief even if you have never missed a payment. Once you are released from active duty, then you can make up all of the missed payments by spreading them over the entire remaining term of the loan plus the time you were on active duty. This is a huge relief. Let’s take a look at how this would work.
EXAMPLE: Let’s say that you started out with a 30 year mortgage or deed of trust. Suppose that when you are released from active duty there are 24 more years remaining on your loan. Suppose you were in the military for 2 years. The maximum period for the stay would be calculated by taking the 24 years remaining on the mortgage at the time you were discharged and adding in the two years that you spent in the service. You will be allowed to spread your back payments out over 26 years. If your monthly payment was $1,500 and you paid nothing during the time that you were on active duty, then you would be in arrears for $1,500 times 24 months for a total of $36,000. To spread that out over 26 years you have to figure that there are 12 payments due in each year. So in 26 years there are 312 monthly payments (12 x 26).
You would only have to make an extra payment of $115.38 each month in addition to your regular monthly payment in order to make up the balance. ($36,000/312)
Since this can get complicated it might be necessary to have an actual Court hearing. This may be a good time to speak to your commanding officer about obtaining free legal assistance from the Judge Advocate General’s Corps (JAG).
Void the Sale
If you are just now becoming aware of your rights under The Service Members Civil Relief Act of 2003 and your property has already been sold at a foreclosure sale, there is still hope for you. If you can demonstrate that your active duty materially affected your ability to comply with the terms of the Mortgage or Deed of Trust you can have the sale voided and get your property back. This is called “vacating” the sale.
Since vacating the sale is a drastic remedy, it will be necessary to have an actual Court hearing. This may be a good time to speak to your commanding officer about obtaining free legal assistance from the Judge Advocate General’s Corps (JAG).
NOTE: USE OF SAMPLE LETTERS
Most courts will allow non-attorneys to file pleadings with the court in the form of letters. Your particular jurisdiction, however, may not allow this and may insist on a formal pleading in a specific format that was approved by the court. Nevertheless, we feel that it will be beneficial to send the letters out anyway. This way all parties including the lender and the lender’s attorney will be put on notice of the fact that you are on active duty and that you are asserting your rights under the law.
About the Author
Peter is a leadding expert on the topic of loan modification. His firm The Loan Modification Network connects homeowners with a nationally recognized group of attorneys licensed in all fifty states to assist homeowners in forclosure preventioan strategies and loan modifications. Call 800-437-2185 or go to http://www.us-loan-modification.com to learn more.
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Oct
31
Book Foreclosure
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How do you read the housing maket and see how its doing? Is there any website that teaches you or books?
is it possible to profit off foreclosure houses in the current market conditions? If not when?
Theres going to be a few less foreclosures. The gov’t is making arrangements with lenders to roll over 2 million at risk mortgages for another 5 years so the owners can fix their problems.
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Oct
31
Mortgage Foreclosure Summits
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How to Advance your Career as a Loan Officer in the Mortgage Industry
Each week, I receive countless emails from loan officers dissatisfied with their small commission checks, looking for something better within the industry. They’ve learned the mortgage business inside and out, and have made the necessary sacrifices to put their career on firm standing. Not satisfied with the measly yield spreads and basis points their current company is paying, they look at other options and a way out.
You may recall in a previous article, I mentioned that:
“When I first started in the industry, my commission spread was 20% of the yield spread premium or YSP. And, if that wasn’t bad enough, we worked on teams of three people—two loan officers and a processor. This meant that any commissions I and my team earned, had to be split three-ways amongst us all. I’m not kidding! My commission after all was said and done was a measly 6.5-7.0% of the YSP. So, on a $3,000 loan, I would make about $200 at most. You don’t want to see what it looked like after they took taxes-out. Absolutely pitiful. Being ignorant (of the mortgage industry), didn’t make me stupid.†–END QUOTE.
If you are currently working as a loan officer, and want to know your career options, here are a few to consider:
Option 1: Become a full-fledged mortgage broker and open up your own mortgage company.
This is really the only way you’ll get 100% commission and be able to dictate life on your own terms. However, there are a few hurdles you must overcome, as well as drawbacks. One of the biggest hurdles is that many states require a certain level of capital to be held in reserves before you can even get licensed.
Many states have personal net worth requirements too and won’t even allow you to do anything under your own license until you can meet the standards they have set. Of course, there are experience requirements as well as a mandatory background check that is part of the process as well.
You’ll also have to not only sell the loans, but process them, market your company, and handle all the back-office paperwork and legal requirements. Not to mention, your choice of lenders you use will be extremely limited as the lenders themselves have their own set of criteria BEFORE they will even approve you for business. Mortgage brokering solely on your own under your own license sounds great at first glance, but only if you have the personal and financial fortitude to weather the inevitable hiccups.
Option 2: Become your own mortgage banker and finance your own deals.
This doesn’t really apply to you unless you are first a mortgage broker trading under your own license. Many brokers become large enough to where they make the transition from broker to lender. The reasons for doing so are obvious. Warehouse lines of credit, if secured from the right source, can provide a banker with an even larger yield spread than if they simply stuck to being a broker and going off other lender rates sheets. In this case, as a banker, you make your own “rate sheets†and set your own commission spread levels. Some mortgage bankers even go into wholesale lending and have other brokers feed loans into them.
Financing for mortgage banking can come from a variety of sources, such as warehouse lines, outside investors, etc. And the state and federal regulatory rules and regulations vary. One of the main advantages of mortgage banking is that you can set your own lending criteria and can approve loans that others deem too risky.
One of the best known examples of a mortgage broker transitioning into a mortgage lender, is Ditech Funding. (I am sure you’ve seen their commercials with the loan officer character!). I was told that their wholesale line comes from GMAC, and that Ditech was their largest client. This could be you some day!
Mortgage banking is certainly something to consider if you are already your own mortgage broker with your own license.
Option 3: Leave your company and join a net branch as your own branch manager.
Becoming a net branch is probably the best of both worlds. You are on your own under your own mortgage branch, but maintain much of the control over the day-to-day operations of the firm. The home office handles all the backend stuff such as accounting, legal and regulatory requirements. They also have established relationships with national lenders, many numbering in the hundreds. They can set you up quickly and provide a structure and support system to help you succeed.
The commission spreads from net branches vary widely and most firms require a minimum past experience of at least two to five years, showing a track record of success. Some firms have a set yield spread split, such as 70% to you and 30% to them. Others give you 90% or even a full 100%, but charge a fixed fee per file, as in between $300 to as high as $600 a loan. Although 100% sounds great, I’ve heard stories of even higher fees fixed file fees out there!
If the net branch doesn’t have a fixed split per loan, they may mark-up their rate sheets they give you and take the extra spread. For example a lender sends the net branch a daily rate sheet, the net branch home office marks it up a tad, and sends it off to you. And you never see what the “real†rates are!!! You are pricing off an already marked-up rate sheet and are never even aware of it! Sneaky, eh?! Not all firms do this, but some do!
Also, with net branches, although you are on your own, you still have to follow their set policies and file procedures. And the firm will have other unknown requirements and miscellaneous corporate rules. However you won’t find these out until you are well underway and committed to them.
It’s funny, many mortgage companies are really net branches in disguise. Maybe even the company you are working for now! That’s right! They probably were once a small little one-person net branch at some point too! But they grew-up, expanded and hired people to work for them. You can do this to! It’s a definite possibility.
Overall, net branches are a great way to “own your own business†without all the headaches and hassles that go along with it. However, a word of caution: research each firm thoroughly before you join and don’t make any rush decisions.
Some of the biggest net branches out there are: Allied Capital Corporation, Carteret Mortgage, Allfund Mortgage, Global Home Loans, Summit Mortgage, etc. (There are literally hundreds of choices, these are just a few!)
Option 4: Stay as a loan officer.
If becoming a broker, banker, or net branch manager doesn’t appeal to you, you can always stay as a loan officer and change firms. If you don’t want the responsibilities of running your own shop, why not simply move onto greener pastures.
There are many mortgage companies–even within your own city–that probably pay a lot more than you’re getting at present. Why not have a little look around and see what the other guys are paying? It doesn’t hurt to ask. Remember, being a loan officer is really being a salesperson. And working on commission, means that most firms will hire you with little hesitation (provided you have the educational and professional background). It’s little risk to them if you don’t succeed, because if you don’t sell, you don’t get paid.
Don’t be afraid to look elsewhere, because if you stay where you are, you’ll never get ahead.
Option 5: Move into another area of the mortgage industry.
As you know, I work in training and help loan officers and mortgage brokers succeed in the industry. I’ve been there, and done that already. After selling and closing thousands of loans, I know what works and what doesn’t. When I got burnt out from originating full-time, I decided to use my knowledge and experience to help train others.
This way, I am still a part of the mortgage industry I love, and have all the freedom and control over my life I want. You can do the same. This industry is in dire need of professional trainers. Like many people I’ve spoken to, I’m sure your training wasn’t much more than a cold telephone and a couple of bum leads. Mortgage training is a great area to consider.
And if not mortgage training, why not become an appraiser, title company owner, real estate attorney, loan processor, notary public, underwriter, wholesale account representative, etc. These are all great careers and still in the mortgage field.
Ultimately, where you go in the mortgage business is entirely up to you. The sky is the limit and your opportunities are endless. I’ve only just opened your eyes to a few of them.
About the Author
Rob Lawrence is ranked one of top national trainers in the mortgage industry. He is the currently the CEO of Battlecall.com, coaching, tools and resources to turn mortgage professionals into mortgage warriors. Visit http://www.battlecall.com for his free “Sink Or Swim†weekly newsletter, mortgage training, marketing advice and more! Jumpstart your career in the mortgage business, starting today.
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