Important Foreclosure Terms and Definiti...

Deed-in-Lieu: An agreement to turn real estate over to a lender as an alternative to foreclosure. Short Sale: A type of pre-sale in which the creditor agrees to let you sell property for less than the full amount owed and to accept the proceeds of the sale as full satisfaction of the debt. Foreclosure: A legal process to terminate your ownership of real estate that is collateral for a debt based on a mortgage or deed of trust. Deficiency: The amount a debtor owes a creditor on a debt after the creditor seizes and sells the collateral. A deficiency arises when the collateral...

Is a borrower who has received a prior L...

   When is a servicer’s SPA obligation to offer a borrower a HAMP modification considered satisfied? A borrower who has a received a HAMP offer is ineligible for a subsequent HAMP offer, and the servicer’s SPA obligation to offer the borrower a HAMP modification is considered satisfied, in the following circumstances: • the borrower received a HAMP modification and lost good standing, or • the borrower received a HAMP offer and made the first payment under trial period plan, but did not (i) make all required payments by the end of the trial period, or (ii) provide...

Changes to Affordable Modification Progr...

These updates are set to be released to lenders regarding the HAMP program and the servicers reporting requirements. Trial and Official Loan Setup The difference between the delivered Front Ratio Before Modification and the calculated Front Ratio Before Modification must be less than or equal to 1%. Front Ratio Before Modification = (Monthly Housing Expense Before Modification/Monthly Gross Income) Trial Loan Setup A trial loan is now allowed if a Government Monitoring/NPV Data Only Transaction has been submitted with a Trial Fallout Reason Code that disqualifies the loan for...

Florida banks move to speed up foreclosu...

If bankers get their way, Floridians facing foreclosure could be kicked out of their homes in as little as three months. The Florida Bankers Association, the 400-member-strong lenders’ lobby, has presented state legislators with a bill to upend decades of Florida law and establish “non-judicial” foreclosures in Florida by July 1. What’s a non-judicial foreclosure? Banks would accelerate foreclosures against defaulting homeowners by bypassing the courts. Judges would no longer rule on foreclosure cases. Some states — 37 in fact — already grant that...

FAQ Home Affordable Modification Program...

Frequently Asked Questions Home Affordable Modification Program-2009-2010 Conversion Campaign These frequently asked questions clarify the Supplemental Directives issued in connection with the Home Affordable Modification Program (HAMP). The questions and answers below should be reviewed by each servicer that has entered into a Servicer Participation Agreement (SPA) to participate in HAMP. These frequently asked questions constitute supplemental documentation that is included in, and shall be deemed part of, the HAMP Program Documentation described in Section 1 of the SPA.   Q0108-01...

Why we don’t charge Setup Fees...

Maybe I’m not supposed to be telling you this — Sort of like a car salesman revealing the cost for the clear coat sealant is actually bogus. At Captaloans we offer a free trial and make it a practice not to charge any type of new client setup fees. Our prices are low enough that we probably should charge a setup fee but we think its bogus. This is because there is actually very little “SETUP” that goes on when you register.  When you sign up to use our loan modification, short sale, or debt settlement software the whole thing is automated. There is no labor involved...

How To Prevent Foreclosure...

2010 could be the start of one of the worst decades the United States has faced economically since The Great Depresseion. People are losing jobs and the average American income has dropped considerable. The natuaral progression of this is that many families find themselves in a situation whey they cannot repay their mortgages. The economic situation is literally driving them out of their houses. Lenders are forced to take back the property if you fail to repay the loan. Some states such as Florida had a foreclosure mediation program in place where a mediator, who has gone through...

Judicial and Non-Judicial Foreclosure St...

Judicial and Non-Judicial Foreclosure States Each state handles their real estate foreclosures differently. It is important to understand those differences and know your specific state’s procedures. The terms used and time frames vary greatly from state to state. Judicial foreclosures are processed through the courts. The complaint will state what the debt is, and why the default should allow the lender to foreclose and take back the property as security for the loan. The homeowner will be served notice of the complaint, either by mail, carrier pigeon, or publication...

Getting training as a loan processor...

The business of loan processing can be a lucrative field if you know where to get training and how to get your foot in the door.  There are numerous types of processor positions including conventional mortagage, loan modification, and commercial loan processor positions. What does a processor do?  Processors review credit reports, income docs, and additional documents such as personal financial statements.  Real estate purchases may require the review of title reports, environmental reports, zoning maps, appraisals and even lease summaries. The loan processor understands...

Loan Modifications for Commercial Proper...

There appears to be some good news for the struggling commercial real estate industry as it appears the IRS has eased up its position on loan modifications.  The tax agency has decided to let lenders modify loans without taking a big tax hit, even if borrowers are current in their monthly payments. In the past lenders would incur penalties if a borrower was not behind.  Lenders successfully argued that they need to be able to modify loans before that happens.  The appetite for loan modifications is growing as high vacancy rates and falling rents begin to have an effect on...