“Surprise, Surprise, Surprise” Loan Modification Working for a Triple Profit for One Bank

Originally posted 2009-05-11 05:00:54. Republished by Blog Post Promoter

Ocwen reported a triple net income for its first quarter after servicing some of its defaulted mortgages.  The company states that prior to servicing its trouble mortgages it had over 20.8 billion dollars in non-performing loans, and this figure is up from 40.2 million in non-performing loans at year’s end.

Not only did Ocwen do a record breaking 20,651 loan modifications, it also reduced expenses by 18 percent.

The report from Ocwen comes as a result of the company implementing President’s Obama’s Home Affordable Modification Plan.

In additon to implementing President Obama’s plan the company also started a servicing arrangement for its high risk loans with Freddie Mac.

As a direct result of these changes in Ocwen’s business, the company is now proud to report an increase of profit of 49 million in April alone.

The success of Ocwen goes to show us, “Yes We Can”

Loan Modification with Indy Mac is Made Simple

Originally posted 2009-04-23 12:03:08. Republished by Blog Post Promoter

Recently, Indy Mac announced that it will allow homeowners who are in default on their loans to streamline into loan modifications.  If you have a loan with Indy Mac, you may be asking yourself what does that mean?

• To qualify, the mortgage that is default must be your primary home.
• Indy Mac will contact you will a proposed modification to your mortgage. 
• If you have not been contacted by Indy Mac and you are falling behind contact the Loss Mitigation department at Indy Mac to get your modification package.

How will the modification work to your advantage?

• The modification will be within 38% debt to income ratio.
• The interest rate will be fixed Freddie Mac rate.
• The modification can include a combination of interest rate reductions, extended amortization, and principal forbearance.

To apply for the program with Indy Mac contact them at 800-781-7399.  Visit http://www.fdic.gov/consumers/loans/modification/indymac.html for information on the loan modification with Indy Mac.

Other Reading

I’d like to finish this post with a link to another post where I answer the question – What is a Loan Modification?

Another post is about “A Loan Modification is WIthin Your Reach“.

In this post, you will learn the common myths about a loan modification and how to overcome them.

A Loan Modification is Within Your Reach

Originally posted 2009-04-10 11:00:44. Republished by Blog Post Promoter

If you are facing foreclosure, you have options.  First you must dismiss the common myths about loan modifications:

The common myths are:

• One myth is the bank does not want me to keep my home.  The bank does not earn any money if it forecloses on your home so if you are able to make the payments the lender is willing to work with you.
• Another myth is having bad credit will keep me from qualifying for the loan modification.  Your credit does not preclude you from qualifying for a loan modification.  Your credit score does not influence your loan modification only your ability to pay and the amount of your income influences the decision to modify your loan.
• Still yet, another myth is I am not late so I don’t qualify.  This statement was true at one time.  However, lenders are willing to renegotiate adjustable rate mortgages to keep the home from going into foreclosure due to the homeowner’s inability to pay the higher adjustable rate mortgage payment.
• Another myth is walking away and filing bankruptcy is my only option.  Modifying your loan instead of walking away keeps the lender from filing a deficiency judgement against you. 
• The last myth is it is too late to do a loan modification.  A loan modification can be done right up to the sheriff’s sale as long as you can prove you have the income and the ability to repay the loan.

Contact your lender today and asked for the loss and mitigation department to begin your re-negotiation of your loan.

Other Reading

In another post I answered that question What a Loan Modification .  

Next you may want to read about Loan Modification with Indy Mac Is Made Simple.  This post explains Indy Mac’s loan modification program and how you qualify for it.

Secrets to a Sucessful Loan Modification

Originally posted 2011-08-23 11:28:46. Republished by Blog Post Promoter

FDIC is Hiring Due to Loan Modifications and Bank Failures

Originally posted 2009-05-12 05:03:44. Republished by Blog Post Promoter

In a recent question and answer sections after a speech at the Chicago Federal Reserve, FDIC Chairman, Sheila Bair , was quoted as saying “that due to the recent bank failures the FDIC has increased its staff by 1,000 and is still hiring.”

Ms. Bair had some other increasing facts.  She believes that the loan modifications are working in the real estate market as a whole, but she also believes that there is still some “distress in the mortgage market.”

With the latter information being given by the Chairman of the FDIC, a homeowner should consider a loan modification if the homeowner wants to keep his or her home. 

For more information on jobs with the FDIC visit its website at http://www.fdic.gov/about/jobs/

Has the Government Loan Modification Program Worked

Insider Information – On Getting a Successful Loan Modification (Part 1)

In the next couple of days, I will share with you tips that will increase your chances of getting a successful loan modification.

If you are facing foreclosure, there is hope.  Even if you received the foreclosure documents, there is hope.  Yes,a pending foreclosure can be scary, but don’t go it alone and by all means do not do nothing.

If your problem is temporary, you may be able to get a temporary forbearance, a reinstatement, or a repayment plan.

A forbearance is when the lender allows you to suspend or reduce your payment for a specific period of time.  Once that time has been completed, you will be contacted to determine when you will be able to bring the account current.  An important note is that a forbearance is often used in conjunction with a reinstatement because the homeowner knows that he or she will be able to bring the account current because he or she may be waiting on a lump sum.  The lump sum may be from an insurance settlement, tax refund, hiring bonus, or investment.

A repayment plan, on the other hand, is an agreement between the lender and the borrower for the borrower to resume making regular payment and portion of the past due amount.

If the borrower financial problem is long, a mortgage modification may be needed.  An example of long term may be a reduction in income due to reduction in work hours or temporary job loss. 

A loan modification can consist of:

• adding the missed payments to the back of the loan
• adjustment of the interest rate from adjustable to a lower fixed rate
• adjustment of the interest rate from a higher fixed rate to a lower fixed rate
• extending the number of years to repay the loan

Another little known loan modification applies to FHA/VA loans.  If you have this type of loan, you may be eligible to get an interest free loan from the mortgage guarantor to bring the loan current, and the repayment may not start for years to come. 

Tomorrow, we will discuss what is required by the lender to determine if you qualify for a loan modification and tips on how to present the information to increase your odds of getting your loan modification approved.

Loan Modification is Easier Than You Think

Did you know that you can qualify for a loan modification if you have any of the below hardships:
• Divorce
• Death of spouse
• Behind on mortgage payment
• Adjustable rate mortgage
• Interest rate above 7%
• Imprisonment
• Loss of wages
• Medical condition
• Balloon mortgage payment

Under the loan program HR 5579 which offers assistance to more than seven to nine million homeowners, you can with the help of EAC Financial, LLC renegotiate your mortgage to prevent foreclosure.

The program is designed with you in mind. It gives lenders an alternative to a threatening lawsuit for unscrupulous lending practices that the lender employed in the past.

The program also allows lenders to reduce loan payments to no more than 31% of your income.

If your loan is under $729,000, you may qualify for a loan modification.

Contact Serena at 219 614 9390 or 219 803 4489 for your free consultation.

You may see your interest drop to between three to five percent meaning that your mortgage may drop between $200 to $800 a month.

Call Serena today or email her for more details at taylorbrownrealestate@yahoo.com.

How Can You Negotiate Loan Modification Terms With your Lender?

This post is written by Steven Parker.  Steven Parker is a Financial writer and contributor since five years.  He specializes in mortgage and real estate industry written many articles on Mortgage, Reverse mortgage, Loan modification, Foreclosure and many more.

For the purpose of preventing a foreclosure, loan modification is one of the most proven choices that people are going for. Normally, people see it as a difficult thing to understand. However, it is not so difficult. Prior to going to the mortgage lender or bank, it is essential that you get correct and comprehensive details about the procedure.

Following are some tips that would assist you to negotiate loan modification terms with your lender successfully:

Before anything else, you should ensure that you communicate with your lender prior to they register a “Notice of Default”. You have to request the lender the moment you understand that you don’t have the capacity to make the minimum payments or instantly when you have skipped one. You should not hang around for them to call you.

Secondly, you should write a financial hardship letter with all your financial information and address accompanied by your income proofs. You should not hide anything or mislead while furnishing your details.

You should post the correspondence by a certified mail and ensure that you get an acknowledgement of receipt of the correspondence.

You should communicate with the loan modification division of the lender or bank via their official websites or by calling them up.

Always jot down the timing of your phone calls, names of the individuals whom you spoke with and what was discussed to you.

Prior to discussing with the lender, you have to be very much clear-cut about your future strategies. For example, if you are confident that you wish to establish in your home for a long time, you should attempt to locate the best possible deal on loan modification for an extensive term, such as 20-30 years.

Collect as much details as you can about the guidelines of the bank and take advantage of them. You must utilize them in such a way that you can garner the maximum advantage of your research.

You must determine the amount of monthly mortgage payment that you are able to afford. For this, you have to figure out your debt to income ratio and furnish it to the lender.

You should search for some professional assistance from experienced counselors employed by the Federal Housing and Urban Development Department (HUD) in the United States. They would offer expert consultations and advices on how to handle your finances, go to the lenders and function as your representative (in case there is a requirement). These facilities are rendered without cost since the Federal Government makes payments to them for these facilities.

A bonus of $1,000 has been declared by President Obama for homeowners who are choosing loan modification rather than foreclosure or short sale.