Wednesday, October 29, 2008

You Can Modify Your Own Mortgage

Any one can modify there own mortgage, it is free of change. There are simple steps to follow to get your loan modified.

First you have to call your bank (where your mortgage is held) and ask for the loan modification department. Tell them your situation and ask them for help.

The bank will make sure that you meet a certain criteria and send you loan modification documents. Make sure that you get these documents back to them ASAP.

The bank will determine weather you qualify for a loan modification and will want you to meet one of the following criteria:

1) Owing more than the house is worth and you can't refinance
2) Lost your job and can no longer afford your payments
3) Have an ‘Option ARM’ from a lender like Countrywide or Washington Mutual
4) Have missed two or more payments

Depending on your situation you can expect one of the following from a loan modification:

1) The bank ‘writes-down’ the balance of your loan to a percentage of the home’s current value. If the values in your market have tumbled, the lender may forgive a portion of your loan balance.
2) The bank may offer lower interest rates, especially to people who are stuck in Adjustable rate mortgages with high rates.

Things you will need:

1. Hardship Letter (Job loss, reduction in income, Adjustable Rate Mortgage).
2. Bank statements
3. Pay Stubs
4. Monthly Expense Statement; (utilities, food, clothing, medical, gas, credit card, taxes, mortgage, etc...

You may need up to 2 hours on the phone.

Remember, you have the right to contact your lender and ask about a loan modification. You don’t have to pay for a third party company to negotiate your modification for you.

Monday, July 28, 2008

Short Sale

A short sale is when a lender allows you to sell your property for less than what is actually owed on your mortgage.

Example. Say you owe $120,000 on your home. You call the bank and ask them for help and ask them if you can sell your home for less that what you owe on your home. A buyer offers you $100,000 for your home, the bank accepts the offer and you sell your home for $100,000. The bank may forgive the $20,000 that you owe them or may come after you for the remaining $20,000.

New Help for Homeowners, Congress Passes Bill for Mortgage Relief

Congress passes a bill to provide mortgage relief to prevent foreclosures. The bill focuses on helping help to struggling homeowners and stabilize a troubled housing market. This program will help debt strapped homeowners get more affordable mortgages .

The federal government wants to prevent foreclosures and will be offering FHA insured loans to homeowners to refinance their debt if certain conditions are met.
  1. Banks would have to agree to take a large loss on existing loans in exchange for avoiding often costly foreclosure.
  2. Home owners would have to prove that they will be able to afford these new mortgages.
There are too many factors at hand. Banks may decide not to participate and foreclose on homes if it leaves them in a positive position. Forgiven debt be considered income and taxable by the IRS. More details will be have to be given to determine who this will actually help.

Thursday, July 24, 2008

New Site Helps Prevent Forclosure

If you have some equity left in your home and just want out. Buy My House Before the Bank Takes It has been designed to help home owners sell their homes and avoid foreclosure. To view deals on real estate, go to

First listing has been posted on, lets see how the market responds to this listing.