Why modification takes so long?

Why modification takes so long? Let me ask this question another way, why does the loan modification process take So Long? Regardless of how you ask this question the answer is the same,it takes time.

Now the Feds are trying to get some real answers themselves from the lenders doing these loan modifications. The feds are "fed up" and is planning to fine ways to make the lenders pay or reduce the processing time . However, currently the lenders have only provided excuses but the Treasury department is not listening any more, they believe it is about time to force the lenders into producing faster loan modifications. Can the feds get lenders to fire up their engines and save the day?

In fact the Treasury Department is encouraging homeowners to write them and tell them about their experiences in trying to get a loan modification done. Although the Feds did create some incentives for the lenders to modify loans, lenders have yet to move fast enough to save the majority of homeowners in eminent foreclosure.

One blogger wrote an article that I think was a great suggestion.In his article he suggested that you write the CEO of your mortgage company, explaining what you are experiencing with your modification and make sure you put some detail into your letter like names of persons you spoke to and dates. Then copy the Treasury Department, the OCC and the FDIC to the letter you send to your mortgage company, this will produce a record of your complain. Make a record of you daily calls and communication with your mortgage company, you might need it one day in court. Fighting foreclosure in court requires you take all measures necessary to win.

who owns my mortgage note?

What is the goal behind asking your mortgage company to produce the note if they plan on taking your house from you? Doing your due diligence here will help you as a homeowner discover who really owns your note.

Fighting foreclosure in court will require this step for sure to help make sense of the foreclosure crisis. In fact knowing who owns your mortgage note might be one of the first steps in negotiating or renegotiating with your lender. In the foreclosure process lost notes affidavits is good news and bad news depends on which side you are on.

Part of the problem is investors who purchased residential mortgage notes left and right in the boom days did not have time to keep good records, therefore there is a lack paper trail. Here is the bad news or good new in some case many of these banks have lost the actual paper work. according to Huffington post: "Since North Carolina has begun to provide legal assistance to homeowners facing foreclosure, Miller said, roughly one of every three mortgages have some substantial legal discrepancy". They going to say:" The fouled-up paperwork or other lack of legal compliance "has resulted in a much higher rate of negotiated [mortgage] modifications" in North Carolina, said Miller. "It gave the homeowner additional defenses and counterclaims that strengthened their hands substantially."

The sad truth is each time the investors sold a bundle of these loans they should have some way to informed the homeowner. However, the reality is they don't see it necessary to offer this kind of information to a homeowner. To complicate things if you try to negotiate with your servicer they might never tell you who owns your mortgage.

In fact their is a new letter being send out lately with an obscure investors tied to wall street that some banks are offering as evidence that someone owned your mortgage note. The banks have had many months to counter this request and have come with a few additional tricks of their own. So you might want to use an attorney when requesting this from your lender.

Foreclosed homes for sale

Foreclosed homes for sale form a few thousand to millions of dollars. Therefore America houses are on sale. A few years ago Europeans were using the power of their currency to purchase property in New York, Miami and California. What happen to these buyers are they waiting for the value to drop some more?

Yes those days are this a global economic melt down so everyone is affected. Some potential buyers are unable to participate because of lack of a job .

Just like stocks that dropped so low and give the market a reason to rally so will the home prices and real estate market. This the time to buy, your currency has the power at these prices.

From homes to hotel foreclosures

From homes to hotel foreclosures which is now hitting the US economy. The hotel foreclosures are bringing with it a host of problems. Some may say there are too many hotels and it just the free market correcting itself. Such a statement might be true but the reality is serious.

CNN reported that one in four hotels is currently in foreclosure. Each of those hotels have hundreds of workers who themselves have houses and depend on their hotel jobs to pay their mortgages. Therefore with their jobs gone or on the line they could find their houses in foreclosure as well.

Similar to home foreclosures the areas of the country that are seeing the most hotel foreclosures is located in the California and Miami. However, foreclosures in California are nothing new .

However, this problem certainly not just in California but across the globe hotels are experiencing a low occupancy rate. CNN suggested in one of their report that next time you book your hotel reservation and get a very unusually low price that could be a sign that the hotel is in trouble.

This is not surprising to most expert they predicted that the next trouble spot was going to be in the commercial sector and hotels fit that description. Currently there are no announcement of any government programs to help stop the hotel foreclosures, but I am sure the government is watching the situation, because it has plenty of implication for the economy .

Word for the day: Car, Car rental, Motors, service

Foreclosure or bankruptcy which is better?

Foreclosure or bankruptcy which is better for your credit? At first glance most would think the answer is bankruptcy. Here is a point to consider although bankruptcy will remain on your credit report for 10 years foreclosure will create a even bigger problem for you if you are thinking of purchasing a new home within the next three to five years. Try to rent with foreclosure on your credit report and you will get some strange questions from the prospective landlord.

Both situations can prevent you from getting your credit score higher.
However, if you filed a Chapter 13, FHA will allow a buyer to purchase a new house and obtain a new mortgage after 12 timely payments the bankruptcy plan. On the other hand foreclosure just sits there for the next three to five years.

In the boom years it has been reported that sub-prime lenders allowed buyers with discharged bankruptcy just one to secure a new home loan, of course those days are gone. Borrowers could then discharged one day and apply for a mortgage the next. This is one of the reasons why some of these loans went bad, the guidelines were not well thought out.

Foreclosure on your credit report is not the end of your homeownership, why start planning to take control of your finance and try again. However, if you are facing foreclosure right now why not try to prevent foreclosure instead of having to deal with it for the next three to five years. Negotiate the possibility and find a forum to workout the details. Calculate the cost of going bankruptcy or sustaining a foreclosure on your credit record.


Word for the day :mortgage calculator

First time home buyer tax credit

Show me the money! The first time home buyer tax credit of $8000 has been approved and signed by president Obama. Currently the cost for the first $8000 tax credit has been estimated to have cost about 10 billion dollars. This new extension of tax credit is considered to be about the same. The expert believes this will generate another 400,000 or so home sales.

Therefore,first time buyer have until the end of June 1,2010 to close but must at least signed a sales contract by May 1, 2010. The current tax credit dead line was November 30,2009.

Therefore, if you did not owned a house with in the last three years based on the guidelines you are considered a first time home buyer. Also if you are currently a homeowner, the tax credit if you purchased another home is up to $6500.

These tax credits should generate new homeowners, along with the climate of low mortgage rates. This is the best time to purchase a new house with so many incentives being offered.

However, remember in the boom years the mortgage rates was not so good and there was no tax incentives but people were buying because they thought a house was great investment that could produce lots of profits or equity. Homeowners were purchasing home for $200,000 which would climb to $50,000-$100,000 in equity in less than two years. Homeowners that bought at the high wish now they did not.

My point is before you purchase this time around ask for your trusted friends second opinion, truly look at your future job prospect. Make sure you have the three to six months reserves needed in your rainy day account,stay with in the 31% of your gross income and be realistic. Purchase with in or below your means, don't get three bed rooms when you only need one or two.

This news about the extension of the tax credit is great so many first time home buyers were in current deals that was never going to close on time, I am sure they can now relax.

Foreclosure help

Written by: George Haughton

Foreclosure help will come from unlikely source, Fannie Mae. In fact Fannie Mae now joins Freddie Mac in offering a deed for lease program. Therefore, those facing foreclosure have the option to rent their homes back for a period of time until they get their finances in order. This deed for lease allows the homeowner who failed to qualify for or cannot maintain a loan modification to transfer their deed or their interest in the home to Fannie Mae.

This process is really a deed in lieu of foreclosure,it does not show up on your credit report has a foreclosure. Foreclosure on your credit record prevents you from purchasing another house for at least three years with FHA and five years for conventional loans. Therefore, this program allows a homeowner to pay rent equal to the documented 31% of their monthly income pretax or gross income.

That is welcomed news for the close to one million homeowners who were served foreclosure notices last month. The estimate is that over 18.8 million houses stand empty in the third quarter, which has created a value and vandalism problem.

Therefore, we can say finally the lenders are really looking at the bigger picture. For example in Detroit that city has started to knock down empty blocks of houses and do not have any plans to replace these houses any time soon. Therefore, it makes total business sense to keep the homeowners in these homes and work it out.

This deed for lease does come with out some qualifying guidelines so you might want to look these up before you assume you qualify. For example it must be your primary home you live in. Fannie Mae or Freddie Mac don’t actually make loans to consumers so this foreclosure help is a quick measure to legally keeping homeowners in place, but again what are the guidelines and how long is this period.

Based on what I have read the guaranteed lease period is for one year and month to month after that. This action will ease the minds of many homeowners fighting foreclosure and help keep the neighborhood more stabilize. The truth a lot of these homes have become very hazardous and dangerous. In the state of California some communities speak about pools that are a breading ground for mosquitoes.

Freddie Mac unlike Fannie Mae rental lease is for a month to month.Therefore, what Fannie Mae has done is taken the big uncertainty out of the minds of the homeowners for at least a year. Some are now asking the question is a postponement of the inevitable?

Well the economy is said to be improving. However, some experts who follow the housing issue think the second wave of foreclosures is still in front of us. Therefore, creating an option like “deed for lease” might be an attempt to cushion the blow. This foreclosure help by deed for lease really is the answer for those facing foreclosures now and yet to come?

Fannie Mae Q and A for the deed for lease program
Fannie Mae Guidelines for the deed for lease program