Loan Modification, bankruptcy, debt settlement

Recent news on interest rates and foreclosures

April 21st, 2010 Posted in loan modification
Apr, 21 2010
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Update on Interest RateThe Obama administartion purchase program ended on March 31st and was regarded as a precursor to a gradual rise in mortgage interest rates.  Howver,  ”We are unlikely to see a significant market disruption in the agency market stemming from the Fed’s retreat, so we do not think rates are going to spike but rise gradually.

30 year fixed rates are currently ranging in the low 5% depending on fico score, property type, loan purpose and LTV. FHA rates are in the same range and go up to 96.5% loan-to-value (3.5% down.)

There is a new purchase program called HomePath requiring only 5% down on properties currently owned by Fannie Mae. The rates are a bit higher, but there is no requirement for mortgage insurance which is a big plus.

Jumbo financing looks to be returning to the market place. We are suddenly seeing very competitive rates from Chase, US Bank, Wells Fargo and GMAC. Great news for those with loan balances over the current high-balance Agency limit of $729,000. However, these programs are very conservative in terms of credit, personal liquidity, and loan-to value so you gotta bring the goods to get in on these deals.

Foreclosure Activity Report

Orange County homes that are more than 90 days late topped 8% recently.  The national average is 8.75 % and California averages 11.5 %.  The Obama administration programs to prevent foreclosures are slowing foreclosure rates, but most of these homes will likely convert to short-sales in the near future if they cannot get approved for a permanent loan modification.

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Hiring an attorney for your loan modification

April 18th, 2010 Posted in loan modification
Apr, 18 2010
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Loan modifications are created so that families can have a solution to save them from losing their home. Though there are millions of families who are eligible for loan modifications, many will not even attempt to apply because of the high fees that financial advisors charge even for advice. There is positive news for these families concerning this issue.As more people are discovering, the loan modification process can be a long one. When an homeowner is unsure how alender will respond to their application, it can be a burden and stressful situation. This is where third party assistance can help. Though there needs to be care taken in whom to hire to help with the process, once a legitimate source of assistance is found, it makes the progress run much smoother for a number of reasons

Because of the expertise that these fully qualified professionals bring, they can obtain a good loan modification agreement that includes lower monthly payments over an extended term, and many times even a reduced interest rate which means more savings over time.

While not all modifications are the same and there can be no promises made as to how much each applicant will have as a result of this modification, the attorney will explain the chances during the consultation sessions.

When the third party is taking over the paperwork and the negotiations, they ensure that all of the paperwork is complete and organized in the way that lenders like to see it. They also enter into negotiations knowing what to expect and which methods to use if a lender should hesitate. The loan modification professionals generally have more than one option to try so that if a lender should reject one, they have another in waiting. If a lender should have an option, the third party can then try to make it better for their client. They have excellent negotiating skills and work with skilled processors who can often obtain great savings on your loan modification for some clients.

When hiring a third party, check to see if their advice is free and contact them concerning any questions that might need an answer. In hiring a third party to complete this type of work, it saves the applicant from having to either wait on a response from the lender or from having to constantly try to contact the lender as the advisor or attorney will do this work. By staying in communication with the third party, the applicant always knows where they stand in regards to their application.

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Foreclosures dropped in March

April 16th, 2010 Posted in mortgage software
Apr, 16 2010
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Foreclosures dropped in March, year-over-year, but the state is still seeing a rising trend during 2010.Foreclosure specialist RealtyTrac brings out its March numbers today, and around the nation total filings were at their highest level since the firm began keeping records in 2005. Looking over the first quarter as a whole, foreclosures jumped 35% from the same period in 2009.

In Connecticut, the picture is mixed – with almost 3,000 filings in March, foreclosures were up 22% from February, but compared to March last year, the numbers were actually down just over 3%. RealtyTrac executives say they believe the numbers are being held down by foreclosure mitigation programs at both the state and federal level. This week, the Obama administration complained about lenders being too slow to make investments in federally backed loan modification efforts. In Connecticut, lawmakers have just agreed to fund the state’s foreclosure mediation program for another year.

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How to calculate Debt Settlement Savings

April 14th, 2010 Posted in mortgage software
Apr, 14 2010
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Debt settlement is when you and a creditor agree to let you pay less than the balance owed, as payment in full. The amount of money that a credit card company will accept will vary from company to company. You may be able to get a good offer. Creditors will not settle debts until you are past due 90 days or greater.

There is a great article on eHowTo that describes the process for the consumer.   Many consumers rely on a company to manage this for them.  If you are a company in the debt settlement consider using Captaloans to manage and track your debt settlement clients.

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Loan Modification Stats

April 4th, 2010 Posted in loss mitigation
Apr, 04 2010
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There are statistics that are kept on the types loans that were given before the recession, how many are currently in default, and how many are undergoing loan modifications. Beginning 2010 over 4 million people have applied for a loan modification for their homes using HAMP or one of the other available lender programs. The statistics related to this number may be surprising. The numbers show that 70% of these applicants, which stands at over 3 million people, were eligible. However, only 2%  of these have been rejected and just over 3% have been accepted. So we are left with over 65% still waiting to hear back on their application. That is a lot of loan mods in limbo.

To stop from becoming one of the families who have received their rejection letter or are still waiting to hear the results, make sure your paperwork is in order and consider getting assistance from various loan modification companies. There are financial advisors available as well as attorneys who have a lot of practice in this area and are more than capable of not just guiding a person through the proceedings but who can also write up the paperwork needed and can negotiate with the lenders for a better deal.

It is suggested that a prospective applicant complete a lot of research on the subject before actually starting this process. While it is imperative not to procrastinate with financial issues, it is also a wise to be educated on the process.

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