Selling your home usually means that you are going to move out-but I keep getting asked the question, "Is it possible to short sale my home and rent it back from the new owner?"  Most of these homeowners would love to keep on living in their home, even if as a renter instead of the owner.  While it may seem like the perfect solution to a struggling borrower, there are some serious problems that could arise with this scenario.

The federal short sale program, HAFA, has been around for almost 3 years.  This subsidized plan offers protections and incentives to those homeowners who participate.  Along with these benefits come some restrictions-one of which is that all parties involved sign an affidavit.  This form is signed under penalty of perjury and states that the transaction is an arms length sale and that no side agreements have been made.  It also plainly states that the homeowner may NOT stay in the home as a renter or have any type of "buy back" agreement with the seller.

Even if the short sale is not completed under HAFA, the vast majority of lenders have their own restrictions on the rent back option, and require all parties to sign an amendment stating that.  Real estate agents, investors and sellers need to be very careful, as violating these restrictions constiture bank fraud-meaning that you run the risk of federal prosecution.

So, knowing all of this, why do I see real estate ads enticing distressed sellers to list their home, with the promise of a rent-back and even a future re-purchase option?  Is there some loop hole that I don't know about or are these folks hoping that the banks don't catch on?  One caveat of these rent back offers is that the purchaser is a pre-determined investor put in place by the listing agent.  This means that the transaction is handled by the same firm-representing both the seller and the buyer.  This also means that the seller is at the mercy of the listing agent and may not be getting accurate and credible information on how the short sale should be handled in order to comply with the bank's guidelines.

Keep in mind that the Affidavit is signed under penalty of perjury by all parties, and I for one would not even consider risking the consequences of bank fraud.  Sellers are often so confused and frightened that they are vulnerable to anything presented to them that sounds like a solution.  Bottom line, if it sounds too good to be true...well you know the rest.

Susan Gregory is a Realtor, trainer and Author of two publications for homeowners, including the best selling resource, The Complete Loan Modification Guide kit and Loan Mod Calculator.  She is HAFA Certified, a Certified Negotiation Expert, Short Sale and Foreclosure Resource Agent.  Visit susangregoryrealtor.com for more information.

Have you ever heard the saying "The confused mind does nothing"?  I run into this almost daily with my distressed clients.  When faced with a stressful situation, if you don't know how to solve it, you will inevitably do nothing.  It's simply easier to ignore the problem and hope that it will resolve itself in some miraculous way than try to figure out the unknown.

When a homeowner is facing the prospect of losing their home, the fear and uncertainty can be unbearable.  It's really primal-what's going to happen?  When will it happen?  Where will we live?  Unfortunately there are many unscrupulous people out there who have preyed on the vulnerable homeowners in this situation.  Of course this just makes an bad situation worse, and often leads to the home being foreclosed on.

Realtors can play an vital and critical role in today's market-because we are knowledgeable professionals who put our client's best interest first, we are in a position to help alleviate some of the confusion that our at risk homeowners are facing.  There are so many resources available that borrowers need to know about-free government assistance, special loan workouts and forebearance plans, short sales and deed in lieu options to name a few.  I have spent the last 3 1/2 years becoming as well informed as I can be - all with the goal of being a reliable source of helpful, accurate and viable solutions for my clients.

When I meet with a homeowner who is facing the prospect of losing their home, I spend the first 30 minutes or so just listening-learning how and why they are in this position and what their ideal solution would be.  My goal is to always offer several options that are viable and free-whether it be re-applying for a loan modification or exploring a short sale when an exit strategy is needed.  The goal is to help them arrive at the most tangible and least damaging option for their specific situation.

Just by taking the time to sit down and listen, and then have some real concrete options presented to them, homeowners immediately feel a lot better-calmer, focused and ready to make some hard decisions.  This may be the best service we can provide our clients-a sympathetic ear, a strong knowledge base and a plan of action to help the homeowner resolve their situation.

Susan Gregory is a Realtor, trainer and author of two publications for distressed homeowners and short sale agents.  She is a Certified HAFA Specialist, a Certified Negotiation Expert, Short Sale Foreclosure Resource Agent and has closed numerous short sale transaction in Southern California.

A staggering 63% increase in California foreclosure filings for November 2011 from the previous month may have dire consequences for homeowners hoping to save their home.  Although most banks will suspend sales during the Christmas holiday, expect a surge of trustee sales the beginning of 2012.  Many borrowers have been lulled into a false sense of security because of the lender's slow pace or even lack of any action at all.  In some cases, borrowers are still living in their home after several years of not making any mortgage payments.  Well, looks like that party may be over.

Why now?  Why all of a sudden the huge uptick in foreclosure filings?  Over the last three years, banks have been struggling just to meet the tidal wave of defaults, and with the Robo Signing fiasco and ongoing federal investigations and lawsuits, they simply could not process the defaults within the normal time frame.  Several things have happened recently that have prompted lenders to get these bad loans off their books.

First, Fannie Mae started fining servicers who were not aggressively pursuing defaulted homeowners, and mandating that these loans be resolved-one way or another.  Secondly, lenders finally have trained staff and implemented procedures to adequately move the files through the process much quicker.  Lastly, the government programs are due to expire the end of 2012, so time is running out to clear out the bad mortgages and get the federal incentives.

The increase in California foreclosure filings means that homeowners are also running out of time and must make some hard decisions fairly soon. There are basically three ways to pull a home out of foreclosure:

1. Cure the debt-meaning pay all of the past due balance or depending on the time frame, you may be required to pay off the entire debt.
2. Qualify for a loan modification and begin paying the new payments-keep in mind that banks will still be moving the home towards foreclosure during the review process-this is called double tracking.  Many homeowners who thought they were getting a loan mod ended up losing their home instead.
3. Initiate a short sale-under the federal HAFA program, lenders are prohibited from moving a home to foreclosure sale while the home is being marketed and negotiated.  This buys the homeowner more time-usually 3 to 4 months of living in the home rent-free.

It had to happen sooner or later, so while this is bad news for thousands of homeowners, this is the only way that the California housing market can begin it's recovery.  Homeowners need to realize that getting a fresh start and moving on from their underwater home is often a smart financial decision.

Susan Gregory is a Certified HAFA Specialist, a Certified Negotiation Expert, Short Sale and Foreclosure Resource Agent, and an author of two publications for homeowners-including the best selling resource, The Complete Loan Modification Guide kit and Loan Mod Calculator.  Visit 2smartcookies.net for more information.

First time home buyers are jumping on amazing deals in San Juan Capistrano because of the current market conditions in this historic Spanish mission town.  It's no secret the home values  have decreased, but what most home buyers may not know is that combined with record low interest rates, home affordability is the lowest it has been since the 1950's!  That means the you can buy a home for less money than your parents were able to.  Here are some tips to remember so that you can get the best deal on your new home.

FIRST TIME HOMEBUYER TIPS FOR BARGAINS IN SAN JUAN CAPISTRANO

1. Before you go out bargain home shopping, make sure that your financing are all been pre-approved.  This is a free service that lenders provide, but it is critical to know ahead of time that the money you need will be there at closing time.  Also, sellers will take your offer much more seriously if they now you are pre-approved and ready to move.  You also will know exactly how much you can afford and how much home you can qualify for with the bank.
2. Check out distressed properties, although these properties may be a bit more work to buy, the prices are usually well below market and represent a big opportunity to get a real bargain. Be sure you work with an experienced Realtor who understands the ins and outs of foreclosures, short sales and bank owned properties.
3. Take advantage of a VIP BUYER PROGRAM, this is free service where you are instantly notified of any new listing that represents a bargain deal, allowing you to get a jump start on everyone else.
4. Once you find the home you want, be sure that you have a qualified home inspector conduct a complete and thorough inspection of the home.  Since many of these bargain San Juan Capistrano properties are sold as-is, you need to know ahead of time any repairs or issues with the property so that you can factor in these costs when making your purchase offer.  An experienced distressed property Realtor can help make sure you are protected against unforseen costs.
5. Don't discount fixer-uppers-these properties are often great deals and with just a bit of elbow grease you could turn the worst home on the block into a show place- and earn some sweat-equity in the process.

Buying your first home can be a bit intimidating, however there may never be a better time to jump in and join the ranks of homeowners who are taking advantage of the amazing prices and great financing rates now available.  First time home buyers should work with a qualified, experienced Realtor who can safely guide you through the purchase process so that you can enjoy you home buying experience worry free.

Susan Gregory is a Realtor in San Juan Capistrano who is specially trained and certified in distressed properties and assisting buyers with their first or subsequent home purchase.  Visit 2SMARTCOOKIES.NET for more information about her services.

Certified Negotiation Expert, Short Sale Foreclosure Resource Agent, HAFA Certified

Orange County Association of Realtors

he Fed has updated and expanded their home retention outreach called HAMP in hopes that it will offer a solution to more homeowners.  Unfortunately, the number of borrowers who have received help to date is pretty dismal, and the Treasury Department is trying to avoid having to take the blame for the billion dollar failure by reaching out to more homeowners.  Effective April 5th, the expanded guidlines will now offer something for everyone (not quite-but close!)

The HAMP option will now be offered in a revised form to those homeowners who are unemployed and who have lost a lot of equity in their home.  This program will seek to provide an extremely low mortgage payment while borrowers look for new employment.  The idea is to give them an affordable payment until able to get back on the job again.  For those homeowners who have lost equity-nationwide over $2 trillion in home equity has evaporated-there will be new options designed to keep borrowers making payments instead of walking away.

Lenders will be governed by new timelines for providing timely responses to homeowners who request a HAMP option, and this will greatly increase the number of permanent loan modifications.  No more throwing out trial modifications and then deciding afterward if a homeowner is qualified.  Now, banks will need to acknowledge a request for loan assistance within 10 days, and then provide an answer-either qualified for HAMP or not qualified-within 30 days of receipt of a complete loan modification application.

If the homeowner qualifies for a loan modification under HAMP, then the 3 month trial modification will begin.  Once 3 payments are made on time, the modification will become permanent automatically.  No more re-applying or updating of information required.  This is going to help increase the number of permanent modifications completed.

If however, the homeowner's paperwork is reviewed and it is determined that they do not meet the approval guidelines for HAMP, then they will be offered another program option, called HAFA.  Home Affordable Foreclosure Alternative is the federal streamlined short sale option recently added to HAMP.  This program will help expedite the short sale process by providing a pre-determined approval and acceptable net proceeds to the bank, dictate escrow times, commissions and provide money to the homeowner to help them with the transition from home ownership.

Every homeowner must apply through HAMP for consideration before they can moved onto HAFA-so it is critical to know and understand the basic approval guidelines for the program.  The key to success with the federal programs is to prepare an accurate and acceptable financial statement. The debt ratio, target payment, disposable income and other calculations must meet the formula the HAMP dictates-so learn how to compute these for the best results.

Get the help you need to prepare your own accurate and acceptable loan modification application.  The Complete Loan Modification Guide kit is the best selling do-it-yourself system that takes the guess work out of preparing your financial statement, hardship letter and all of the required forms your lender needs.  You get an easy to use software program-Loan Mod Quick App-as well as an easy to understand handbook with step by step directions.  Why take chances with your application?  Simply input your unique financial information into the Loan Mod Quick App and it calculates it all for you!  It couldn't be easier-end the frustration-Visit myloanmodificationcenter.com and order today-Immediate download!

Successfully navigating the Bank of America Loan Services loan modification department can be a test of persistence, patience and knowledge. Homeowners are being helped every day with a loan workout, but the secret to success is being prepared and informed. You can't just slap something together and hope it will work. The lender has a standard process which must be followed and certain approval requirements that you must meet. When you understand how to meet those guidelines, you are giving yourself the inside edge you need.

The process involved for Bank of America loan modification basically includes 4 steps. Once you understand what to expect and how to navigate this procedure, you will be able to take control of your loan workout proposal.

1. Contact the bank and ask for the Loss Mitigation Department. Do not waste your time speaking with any other department! Tell the counselor that you are facing a financial hardship situation and want to apply for a loan modification. Ask them to send you an application packet or go onto the website and download the paperwork. A good idea is to use the generic forms so you can practice and then just transpose the information onto the lender forms-you can get your forms in the #1 resource for homeowners, The Complete Loan Modification Guide.
2. CAUTION: do not give any of your financial information to Bank of America until you have learned more about how to properly complete your loan modification forms. This is critical-if you do not know what the approval requirements are and how to adjust your budget so you can meet those requirements, you are taking a big risk of being declined.  Use the best selling software designed just for homeowners that automatically figures your debt ratio, target payment and disposable income for an accurate and acceptable financial statement.
   
3. Prepare all of your forms ahead of time, making sure that you meet the debt ratio guidelines, have written an acceptable hardship letter and included all of the required income and asset documentation. Confirm that your debt ratio is acceptable and know what your target payment is. Make copies of all of this paperwork for your records, then email or fax it into the bank, as well as mail it. Call in 5 days to confirm that your information has been received and logged into their system.  Learn how to calculate your debt ratio, find your 31% target payment and pre-qualify in Chapter 2 of The Complete Loan Modification Guide.
4. 

   You will be contacted for a short telephone interview. Make sure you have all of your paperwork in front of you, then you can refer to it in case you need to.  This is critical-you do not want to be stumbling around and say the wrong thing.  Once you pass this final hurdle, you will be mailed your loan workout proposal. Review it carefully, sign it with a notary and send it back right away.

When you understand the Bank Of America requirements for loan modifications, you will be able to tailor your application so that it has the best chance of meeting those guidelines. It is important to understand the debt ratio requirements, disposable income requirements and acceptable financial hardship situations before you begin the application process. Now is not the time to take chances-learn, prepare, then apply for help.

Get the help you need to prepare your own accurate and acceptable Bank of America loan modification application.  The Complete Loan Modification Guide kit is the best selling do-it-yourself system that takes the guess work out of preparing your financial statement, hardship letter and all of the required forms your lender needs.  You get an easy to use software program-Loan Mod Quick App-as well as an easy to understand handbook with step by step directions.  Why take chances with your application?  Simply input your unique financial information into the Loan Mod Quick App and it calculates it all for you!  It couldn't be easier-end the frustration-Visit myloanmodificationcenter.com and order today.

Borrowers who are struggling with loss of income, increased expenses or some other financial hardship may be able to get help with a government rescue plan paid for with $75 billion in stimulus money.  President Obama's Home Affordability plan is available for borrowers who can no longer afford their mortgage and are facing the possibility of default or late payments.  Learn how the loan modification process works and just what it takes to qualify for this federal assistance program.

Would a 2% interest rate on your home loan help you to be able to afford your mortgage?  When a borrower qualifies for Obama's 2% loan modification plan, one of the standard methods of reaching an affordable monthly payment is to reduce the interest rate to as low as 2%, as well as possibly extending the loan term out to 40 years.  In some cases where the home has lost a significant amount of value, some of the principal balance may be deferred or even forgiven.

The loan modification process has been streamlined under Obama's plan so that a qualified homeowner can get results quickly.  The first step is to gather all of your financial information together so that you will be able to complete your forms correctly.  You will need your paycheck stubs, bank statements, tax returns and your monthly bills and expenses.  It is critical to be prepared before you call you bank-the loss mitigation counselors do not want to sit on the phone while you rummage through your files!  They are swamped with desperate homeowners, and if you can present your financial situation quickly, concisely and accurately you will get your answer much faster.

The loan modification process under Obama's 2% plan has standard approval guidelines-this means that if you can meet the criteria, you have a good chance of getting your interest rate reduced to as low as 2%.  The trick is to know what those standard guidelines are and then use that information to fine tune your own application.  There is a 4 step formula that lenders have been told to use under the Obama plan.  Learn this formula, make any necessary adjustments to your application, then contact your lender with confidence.  Take the guess work out of figuring your debt ratio, target payment and creating an accurate and acceptable financial statement.  The Loan Mod Quick App mimics the federal formula for qualification under HAMP-so just input your own income and expenses and all the calculations are done automatically.  You see immediately if you need to make any adjustments to your budget to fit the approval guidelines.

Get the help you need to prepare your own accurate and acceptable loan modification application.  The Complete Loan Modification Guide kit is the best selling do-it-yourself system that takes the guess work out of preparing your financial statement, hardship letter and all of the required forms your lender needs.  You get an easy to use software program-Loan Mod Quick App-as well as an easy to understand handbook with step by step directions.  Why take chances with your application?  Simply input your unique financial information into the Loan Mod Quick App and it calculates it all for you!  It couldn't be easier-end the frustration-Visit myloanmodificationcenter.com and order today.

Feel like you are painted into a corner and running out of out of options because of high mortgage payments?  Wait, you may be able to end the stress and frustration by qualifying for a HAMP loan modification using Obama's federal loan modification plan. The benefits of this government funded loan workout include reduced interest rates, longer loan terms and even principal reductions for homeowners who can meet the eligibility requirements. Here are some details of the plan and how you can apply.

The Treasury Department has approved banks to offer loan modifications using the federal plan called, Home Affordable Modification Plan- or HAMP.  In return for adhering the to standard guidelines, lenders will be paid for each loan workout they complete for qualified borrowers. Homeowners will also be eligible for bonus payments of $1000 a year for 5 years-as long as they keep the modified payments current. 

What are the benefits of this HAMP Loan Services loan modification? The ultimate goal is to achieve a target payment that equals just 31% of the borrowers gross monthly income. The methods used to attain this payment are the same for everyone, and are implemented using a waterfall method. This means that first the interest rate is reduced (to as low as 2%), if more changes are needed to hit the target payment, then the next option is to extend the loan term up to 40 years. If still more is required to reach that 31% target, then the lender may defer or forgive part of the principal balance. Aurora will be paid by the Treasury Department so that their losses caused by the new terms are shared with the government.  There is a standard 4 step formula that is used to determine who will qualify for help.  You can use the very same formula when you prepare your application to make sure you have the best chance of success.

President Obama is encouraging all homeowners facing financial hardship to contact their lender to find out if they could qualify for this federal loan modification plan. Borrowers will be asked some preliminary questions to determine if they meet the basic criteria. Once past this first step, homeowners will have to prepare an application that includes a detailed accounting of their monthly income and expenses, a hardship letter and proof on their income and assets. Based on the information provided by the borrower, the bank will make a decision to either grant the modification or not.

IMPORTANT APPLICATION TIP: Even deserving homeowners may be declined if they do not complete their application paperwork correctly. Do NOT contact Aurora until you have taken the time to learn the basics of how to prepare your financial statement and know the 3 critical elements you need to cover. It is not hard to do-but if you don't work on your forms ahead of time then you are taking a big chance at being denied the help you need.  Take advantage of a software program designed just for homeowners that actually mimics the HAMP guidelines-simply input your own income and expenses and your debt ratio, new target payment, new interest rate and target payment are all figured automatically!  You see immediately if you need to make any adjustments to your budget.

Lenders & servicers are offering the Home Affordable Modification to borrowers who can meet the approval requirements. Your job is to simply learn what those requirements are and then complete your application so that it has the best chance of meeting the criteria. Over 750,000 homeowners have already been approved under this government program and have had their mortgage payments reduced significantly. The secret to success is simply to learn, prepare, and then apply for help.

Get the help you need to prepare your own accurate and acceptable loan modification application. The Complete Loan Modification Guide kit is the best selling do-it-yourself system that takes the guess work out of preparing your financial statement, hardship letter and all of the required forms your lender needs. You get an easy to use software program-Loan Mod Quick App-as well as an easy to understand handbook with step by step directions. Why take chances with your application? Simply input your unique financial information into the Loan Mod Quick App and it calculates it all for you! It couldn't be easier-end the frustration-Visit myloanmodificationcenter.com and order today.

What is the best way to handle your client’s inquiries about a loan modification?  It is very common for this subject to come up during conversations, listing appointments and meetings with homeowners-the current housing and economic circumstances have caused a lot of fear and confusion for everyone.  Like it or not, the reality of today’s market dictates that a Realtor should have at least a general knowledge of the various home retention options and exit strategies available to homeowners-options that may have not been available in the past, but are now commonplace-such as loan modification, short sale, deed-in-lieu & foreclosure.

When a homeowner asks your opinion about the possibility of keeping their home by applying and qualifying for a loan modification, do you know how to advise them?  Of course, as an agent who earns their living by listing and by selling real estate, your first impulse may be to discourage that homeowner from pursuing a loan workout and instead encourage them to list their property with you for a sale or short sale.  Ah, there’s the rub! 

The Realtor Code of Ethics and Standards states, “When representing a buyer, seller, landlord, tenant, or other client as an agent, Realtors pledge themselves to protect and promote the interest of their client” and “…Realtors remain obligated to treat all parties honestly”.  This seems pretty clear cut to me, put the homeowner’s best interest first.  If your client clearly expresses a desire to find a way to keep their home, provide them with the information and any tools at your disposal to help them.  When you do this, you are reaffirming yourself as an informed, experienced real estate professional and positioning yourself as an advocate for your client.  If it turns out they are not a good candidate for a loan workout, then that option is off the table and it is time to move on to an exit strategy.  The new HAMP and HAFA streamlined short sale programs will take effect April 5, 2010 and will take alot of the headache out of helping clients with an exit strategy.  Realtors need to know the HAFA process so they can provide timely and tangible solutions.

I am confident that the majority of realtors do try to be informed and strive to offer their clients the best advice and guidance. Unfortunately, a few instances have come across my desk that demonstrates the exact opposite of the Realtor Code of Ethics and Standards.  I was speaking with a local Realtor about a simple method to determine if a homeowner is a good candidate for a loan modification, and she breezily informed me that she simply told all of her clients that they did not qualify for a loan workout-without even reviewing their financial situation!  Now, whose best interest was she serving?

Another time, while giving a workshop teaching a method to determine who qualifies for a loan modification, an agent stated that he had told his client that his file was submitted for a loan modification, but in reality this agent had submitted a short-sale package.  I asked him how he was going to explain that to his client, and he shrugged and said, “I’ll just tell him his loan mod was declined but the short sale was approved.”  Well, after I picked my jaw up off the floor, I realized that providing a comprehensive resource guide for real estate professionals and at-risk homeowners will only be effective if everyone remembers what it means to be a Realtor- “competency, fairness, and high integrity resulting from adherence to a lofty ideal of moral conduct in business relations”. 

I say, let’s all strive to provide our clients with accurate and unbiased information so that they will be able to make a wise and informed decision about their home and financial future-it’s the least we can do.  Learn the basics of both HAMP & HAFA-the new federal streamlined short sale plan so you can best guide your client through these difficult decisions.

Susan Gregory is the author of the #1 resource for professionals and Homeowners, The Complete Loan Modification Guide kit-the best selling do-it-yourself system that takes the guess work out of preparing your financial statement, hardship letter and all of the required forms your lender needs.  You get an easy to use software program-Loan Mod Quick App-as well as an easy to understand handbook with step by step directions.  Why take chances with your application?  Simply input your unique financial information into the Loan Mod Quick App and it calculates it all for you!  Debt ratio, new target payment with new modified terms, disposable income and more. It couldn't be easier-end the frustration-Visit myloanmodificationcenter.com and order today.

LOAN MODIFICATION PROGRAMS – TOP 10 FAQS

Here are the most frequently asked questions about loan modification programs that I receive and the answers based on my 25 years of wholesale and retail lending experience:

1.  What is a loan modification program?  A loan modification program offers a change in the terms of your existing home loan resulting in an affordable and sustainable monthly loan payment.  The loan modification program may include a reduction in the interest rate, a longer loan term, and sometimes a reduction in the principle balance.

2.  Why would my bank be willing to do this for me?  Your lender is willing to offer a loan modification program to you if it serves their best interest.  Meaning, the bank will agree to a loan workout program if it is more cost effective to modify your home loan so you can afford to keep making payments as opposed to the cost of a foreclosure proceeding.  Banks are saddled with record high foreclosures, and with the continuing decline in home values, the lender will probably lose more money foreclosing and trying to sell your home than if they take a loss on the loan, because you keep making loan payments to them.  Banks have to answer to the FDIC if they have too many non-performing assets on the books-like REO's (foreclosed houses)

3.  How do I know if I qualify for a loan modification program?  The number one deciding factor for your lender is your ability to afford the new payment, now and in the future.  You have to show the lender that based on your income and expenses, you will be able to sustain the new house payment.

4.  How do I prove to my bank that I will be able to make the new house payment if they place me in a loan modification program?  The lender wants to see an accounting of all of your monthly expenses and your monthly income.  You must calculate your debt ratio so that your new housing expense (taxes, insurance and HOA included) do not exceed a certain percentage.  I provide an easy to use financial statement-and give you detailed instructions on how to complete it along with information on how to calculate your debt ratio properly.

5.  I don't have any extra money to pay my bank-can my missed payments be added into the loan modification program somehow?  Yes, part of the negotiation process is to have your missed payments added back into the new loan and spread out over the term in an affordable payment structure.

6.  My bank has added a lot of fees and penalties-do I have to pay those?  First of all, you are legally entitled to a complete, detailed accounting of all fees & penalties.  Depending on your type of loan, the lender may be required to WAIVE those fees & penalties.  Learn your legal rights before you agree to over pay for any loan modification program!

7.  What if I owe more than my house is worth?  That could actually work in your favor.  Ask your local realtor to provide a Comprehensive Market Analysis.  This is a widely accepted report that documents the actual current value of your home.  You can use this information to ask your bank to reduce the amount you currently owe them as part of your loan modification program based on this lower current value.

8.  Do I have to be working to qualify for a loan modification program?  Generally, yes, you have to show your bank that you will have the income necessary to pay the new loan payment.  If you have a VA or FHA loan, there are some loan modification programs that will give you time to find a job before you start making payments again.  The foreclosure process is halted during this time.

9.  I really don't know anything about home loans and I am afraid to call my bank, do regular people like me actually do their own loan modifications?  I admit the hardest part of a loan modification program is actually picking up the phone and calling your lender to start the process.  But remember, hundreds of thousands of homeowners are in the same boat as you-your bank has a special department set up just for this purpose.  President Bush and Congress is encouraging banks to offer all borrowers a loan modification program as an option to avoid foreclosure.  Thousands of homeowners just like you have already had their loans modified into a new, low monthly payment-you can too!

10. How do you recommend I get started on my own loan modification program?  You need to do your research and learn as much as you can about the loan modification process process.  There is a lot of information available online about loan modification programs.  It is important to get the most up to date and complete information you can so you will present your loan modification application properly and have the best chance for approval.

I recommend using The Complete Loan Modification Guide kit to educate yourself about loan modification programs. This is a low cost, easy to follow Guide & software that you can purchase and download right online.  The Complete Loan Modification Guide kit gives you step by step instructions and provides you with all the required forms and gives you detailed instructions on how to complete them properly.  You will learn how to calculate your debt ratio to meet your lenders requirements, all about acceptable hardship letters, your legal rights, all about different loan modification programs and much, much more. Included is the Loan Mod Quick App software program-an easy to use program that does all the calculations for you.  Simply input your income and expenses, and your debt ratio, disposable income, new target payment and new interest rate are figured automatically.  You will see immediately if you fit the guidelines and where to fine tune your budget for quick approval.

You also receive invaluable negotiating tips that I have learned over the last 20 years that will help you obtain the very best loan modification program as well as specific instructions to apply and qualify for HAMP. 

You will save hours of frustration, stress and confusion by using the information contained in this comprehensive loan modification kit.  This home edition loan modification handbook & software is the most complete and up to date Guide available today.  The Complete Loan Modification Guide will give you the fighting chance you need to present a successful  application to your bank.

You can learn more about loan modifications at:

http://www.myloanmodificationcenter.com