Moe Bedard

Is this loan modification company a scam?

Moe Bedard (LoanSafe.org) — Fri, 10 Jul 2009 14:28:23 -0500

Let's take this question I received in my forum as an example of doing a little due diligence. This member was asking if a California Loan Modification company can help her in South Carolina and if they were a scam? Within 1 minute on Google, I located the company and some disturbing facts.

Here is the discussion and I hope it helps others out there.

Question:

Loan Workout Consultants, LLC. in Tarzana, CA, LLC. in Tarzana, CA. The guy claims they will do all the paperwork and contacting Bank of America with a 100% guarantee of a loan mod we can afford or our money back.

He wants $500 good faith money to get

Read more on Is this loan modification company a scam? here.

The Loan Modification Swindle

Moe Bedard (LoanSafe.org) — Fri, 10 Jul 2009 14:20:29 -0500

A person's eyes can only have the wool pulled over them for so long, right?

Am I right to say that a civilized society can only be asleep for a certain amount of time before they wake up and realize that they have been suckered?

I am telling you that nothing really has changed too much from when I started blogging about this problem two years ago. Loan modifications are still pretty darn hard to obtain and if you need one, you better be ready for the silliest game of run around and where's my paperwork that you have ever experienced in your life.

Read more on the The Loan Modification Swindle here.

What are the ramifications of foreclosure?

Moe Bedard (LoanSafe.org) — Tue, 07 Jul 2009 20:15:09 -0500

Many homeowners want to know the ramifications that a foreclosure will have on their credit and most importantly, their lives.

The facts are that a foreclosure is definitely not the end of the world and it isn't really going to change your life that much in the long term. Yes, the short term effects will suck, but in the end you may just be better off.

Yeah, you heard it right, you just might find yourself in a better place, sleeping at night and living a more gratifying life because you're not strapped to an unaffordable mortgage and home. But you're still going to have to pay the piper in more ways then one for your new found debt free renting life.

Is this loan modification company a scam?

Moe Bedard (LoanSafe.org) — Tue, 07 Jul 2009 20:09:33 -0500

I get emails and questions in my forum/blog daily about loan modification companies and if they are all scams. To say every foreclosure prevention company is a scam would be like saying every investment manager is like Bernie Madoff or every politician is corrupt.

Here is the discussion and I hope it helps others out there.

Question:

Loan Workout Consultants, LLC. in Tarzana, CA, LLC. in Tarzana, CA. The guy claims they will do all the paperwork and contacting Bank of America with a 100% guarantee of a loan mod we can afford or our money back.

He wants $500 good faith money to get started and then another $1,500 upon satisfactory completion of the process. He says they do all the forensic stuff with the loan docs and he believes they can get our 2nd mtg written off.

I soooooooo want to believe this is not a scam and do it. I love my house and I don't want to lose it but I am so overwhelmed by all the steps and paperwork that I'm afraid I'm going to drop the ball...especially since I'm a school teacher and summer break is not going to last much longer. It's almost impossible to be making phone calls and faxing stuff while you're "trapped" in a classroom all day!

My answer:

I never heard of them, but they are starting off by operating illegally. They are not lawyers, they take money up front, offer 100% guarantees and operate out of state.

Oh wait, there is more, he is operating out of an apartment or condo. Check this out!!!!

18745 Hatteras St. Tarzana, CA 91356 - Google Maps

View Larger Map

I would run the other direction and tell these creeps/vultures operating from their kitchen tables to buzz off.

Please use an experienced South Carolina attorney.

Original article on LoanWorkout.org

New Nevada Foreclosure Program

Moe Bedard (LoanSafe.org) — Thu, 02 Jul 2009 12:59:39 -0500

It appears like Nevada courts seem to have a grip on foreclosure reality and I applaud them for stepping up for homeowners in their state. Now, it looks like many people will get a fair shot at meaningful mediation on their mortgages.

Meaning, BETTER loan modification !!!!

From the Las Vegas Sun:

The state Supreme Court voted unanimously Tuesday to adopt rules governing confidential meetings between homeowners and lenders that could head off foreclosures.

Read more about the Nevada Foreclosure Program here.

What Happens After Foreclosure?

Moe Bedard (LoanSafe.org) — Thu, 02 Jul 2009 12:53:59 -0500

You are not alone if you are facing the possibility of a foreclosure right now! That's for sure! Times are hard and more and more homeowners are finding out that they may lose their homes.

But remember that this is a legal process and you will not immediately be forced out of your beloved home by an armed Sheriff. Because it is a process, it may take some time for its completion and this may depend on a number of things.

Think of this has a game of real estate chess where it is you against your lender. They will make a foreclosure move and then you have to make a move to protect yourself since you are the King of the castle.

Pros and Cons of Home Improvement Loans

Moe Bedard (LoanSafe.org) — Thu, 02 Jul 2009 12:48:02 -0500

Let us now examine the pros and cons of this type of home improvement loan. Obviously, the primary benefit is that you can have access to it even if you don't have a collateral or if you refuse to use your property as such. Of course, this is a disadvantage for the lender because it will be shouldering the risk of not being paid. To make up for this much higher risk compared to the secured loan, the lender will charge a higher interest rate. The interest rate that you will get will depend on the demand for money at that given point in time.

Another disadvantage for this kind of loan is that it is relatively shorter with regards to the length of time in which you have to repay the loan. Generally, the unsecured loan will have to be paid during a span of one to 10 years. Another negative aspect of this unsecured loan is that those who are unfortunate to have poor credit scores would not likely get their applications approved.

President Obama’s Foreclosure Prevention Plan Explained

Moe Bedard (LoanSafe.org) — Thu, 19 Feb 2009 12:14:34 -0600

Who Will Benefit from the Obama Housing Plan?

“The plan I am announcing focuses on rescuing families who have played by the rules and acted responsibly: by refinancing loans for millions of families in traditional mortgages who are underwater or close to it.” - President Barack Obama

The new plan will help two categories of homeowners as well as Fannie Mae and Freddie Mac. The homeowners this plan will help fall in to two categories. First, homeowners that are in distress and at risk of foreclosure will benefit from the plan. Second, homeowners that are current on their mortgage with high interest rates and with little to no equity would also benefit. Lastly, Fannie and Freddie will receive a capital injection of 200 billion from the Treasury department to increase the amount of available credit. While capital injections from the Treasury to Fannie and Freddie are not new, help to homeowners that are not at risk of foreclosure is a substantial departure from the economic policies of the Bush administration.

Who Won’t Benefit from the Plan?

This plan “…will not rescue the unscrupulous or irresponsible by throwing good taxpayer money after bad loans.”– President Barack Obama

While details of the new plan are clear in that speculators will not receive aid, non-speculators in owner occupied homes may not benefit either. So, there is one specific category that will not benefit and another category of homeowner, more difficult to describe, that won’t benefit either. Here’s an easy way to understand if you won’t benefit: (1) if you are trying to either save a non-owner occupied home from foreclosure or you want to benefit from newly introduced government backed refinancing guidelines you’re just out of luck. And if (2) you are in an owner occupied home and you can’t afford the home due to job loss or complete inability to pay, lenders will not be forced to help nor will the government come to your aid.

What are the Specific Details of the Plan?

The new program will roll out on March 4th, 2009 and complete details of the plan will be available at that time. Obama’s new plan focuses on three critical needs. First, the need to incentivize lenders to modify loans for distressed borrowers. Second, the need to provide refinance options for homeowners that are current but with homes that have little to negative equity and finally, to increase the amount of available credit.

On the need to incentivize lenders to provide loan modifications:

Obama’s plan is voluntary for mortgage servicers except for Fannie Mae and Freddie Mac and banks that accept help from the government. These institutions must adopt loan modification plans. The loan modification plan is for primary residences only and will benefit borrowers with higher rates, adjustable rates and interest only loans. The plan, however, will not reduce the principle loan balance.

The servicer would reduce interest rates so that the monthly obligation is no more than 38% of a borrower’s income and then the government would contribute money to bring payments down to 31% of the homeowner’s income.   Servicers can also reduce the loan balance to achieve these affordability levels. The government will share in the cost, up to the amount the servicer would have received if it had reduced the interest rates.

Homeowners with a total debt ratio equaling 55% of their monthly income must enter a debt counseling program to qualify for a modification.

Because loan modifications are more likely to succeed if they are made before a borrower misses a payment, the plan will include households at risk of imminent default despite being current on their mortgage payments.

The Homeowner Stability Initiative has a simple goal: reduce the amount homeowners owe per month to sustainable levels. Using money allocated under the Financial Stability Plan and the full strength of Fannie Mae and Freddie Mac, this program has several key components:

    * No Aid for Speculators: This initiative will go solely to helping homeowners who commit to make payments to stay in their home – it will not aid speculators or house flippers.

    * A Shared Effort to Reduce Monthly Payments: For a sample household with payments adding up to 43 percent of their monthly income, the lender would first be responsible for bringing down interest rates so that the borrower’s monthly mortgage payment is no more than 38 percent of their income. Next, the initiative would match further reductions in interest payments dollar-for-dollar with the lender to bring that ratio down to 31 percent. If that borrower had a $220,000 mortgage, that could mean a reduction in monthly payments by over $400. This lower interest rate must be kept in place for five years, after which it could gradually be stepped up to the conforming loan rate in place at the time of the modification. Lenders will also be able to bring down monthly payments by reducing the principal owed on the mortgage, with Treasury sharing in the costs.

    * “Pay for Success” Incentives to Servicers: Servicers will receive an up-front fee of $1,000 for each eligible modification meeting guidelines established under this initiative. They will also receive “pay for success” fees – awarded monthly as long as the borrower stays current on the loan – of up to $1,000 each year for three years.

    * Incentives to Help Borrowers Stay Current: To provide an extra incentive for borrowers to keep paying on time, the initiative will provide a monthly balance reduction payment that goes straight towards reducing the principal balance of the mortgage loan. As long as a borrower stays current on his or her loan, he or she can get up to $1,000 each year for five years.

    * Reaching Borrowers Early: To keep lenders focused on reaching borrowers who are trying their best to stay current on their mortgages, an incentive payment of $500 will be paid to servicers, and an incentive payment of $1,500 will be paid to mortgage holders, if they modify at-risk loans before the borrower falls behind.

    * Home Price Decline Reserve Payments: To encourage lenders to modify more mortgages and enable more families to keep their homes, the Administration — together with the FDIC — has developed an innovative partial guarantee initiative. The insurance fund – to be created by the Treasury Department at a size of up to $10 billion – will be designed to discourage lenders from opting to foreclose on mortgages that could be viable now out of fear that home prices will fall even further later on. Holders of mortgages modified under the program would be provided with an additional insurance payment on each modified loan, linked to declines in the home price index.

    * Institute Clear and Consistent Guidelines for Loan Modifications: Treasury will develop uniform guidance for loan modifications across the mortgage industry, working closely with the bank agencies and building on the FDIC’s pioneering work. The Guidelines will be used for the Administration’s new foreclosure prevention plan. Moreover, all financial institutions receiving Financial Stability Plan financial assistance going forward will be required to implement loan modification plans consistent with Treasury Guidance. Fannie Mae and Freddie Mac will use these guidelines for loans that they own or guarantee, and the Administration will work with regulators and other federal and state agencies to implement these guidelines across the entire mortgage market. The agencies will seek to apply these guidelines when permissible and appropriate to all loans owned or guaranteed by the federal government, including those owned or guaranteed by Ginnie Mae, the Federal Housing Administration, Treasury, the Federal Reserve, the FDIC, Veterans’ Affairs and the Department of Agriculture.

From the WhiteHouse.gov

Questions and Answers for Borrowers about the

Homeowner Affordability and Stability Plan

Borrowers Who Are Current on Their Mortgage Are Asking:

    * What help is available for borrowers who stay current on their mortgage payments but have seen their homes decrease in value?

Under the Homeowner Affordability and Stability Plan, eligible borrowers who stay current on their mortgages but have been unable to refinance to lower their interest rates because their homes have decreased in value, may now have the opportunity to refinance into a 30 or 15 year, fixed rate loan.   Through the program, Fannie Mae and Freddie Mac will allow the refinancing of mortgage loans that they hold in their portfolios or that they placed in mortgage backed securities.

    * I owe more than my property is worth, do I still qualify to refinance under the Homeowner Affordability and Stability Plan?

Eligible loans will now include those where the new first mortgage (including any refinancing costs) will not exceed 105% of the current market value of the property.   For example, if your property is worth $200,000 but you owe $210,000 or less you may qualify. The current value of your property will be determined after you apply to refinance.

    * How do I know if I am eligible?

Complete eligibility details will be announced on March 4th when the program starts. The criteria for eligibility will include having sufficient income to make the new payment and an acceptable mortgage payment history. The program is limited to loans held or securitized by Fannie Mae or Freddie Mac.

    * I have both a first and a second mortgage. Do I still qualify to refinance under the Homeowner Affordability and Stability Plan?

As long as the amount due on the first mortgage is less than 105% of the value of the property, borrowers with more than one mortgage may be eligible to refinance under the Homeowner Affordability and Stability Plan. Your eligibility will depend, in part, on agreement by the lender that has your second mortgage to remain in a second position, and on your ability to meet the new payment terms on the first mortgage.

    * Will refinancing lower my payments?

The objective of the Homeowner Affordability and Stability Plan is to provide creditworthy borrowers who have shown a commitment to paying their mortgage with affordable payments that are sustainable for the life of the loan. Borrowers whose mortgage interest rates are much higher than the current market rate should see an immediate reduction in their payments. Borrowers who are paying interest only, or who have a low introductory rate that will increase in the future, may not see their current payment go down if they refinance to a fixed rate. These borrowers, however, could save a great deal over the life of the loan. When you submit a loan application, your lender will give you a "Good Faith Estimate" that includes your new interest rate, mortgage payment and the amount that you will pay over the life of the loan. Compare this to your current loan terms. If it is not an improvement, a refinancing may not be right for you.

    * What are the interest rate and other terms of this refinance offer?

The objective of the Homeowner Affordability and Stability Plan is to provide borrowers with a safe loan program with a fixed, affordable payment. All loans refinanced under the plan will have a 30 or 15 year term with a fixed interest rate. The rate will be based on market rates in effect at the time of the refinance and any associated points and fees quoted by the lender. Interest rates may vary across lenders and over time as market rates adjust. The refinanced loans will have no prepayment penalties or balloon notes.

    * Will refinancing reduce the amount that I owe on my loan?

No. The objective of the Homeowner Affordability and Stability Plan is to help borrowers refinance into safer, more affordable fixed rate loans. Refinancing will not reduce the amount you owe to the first mortgage holder or any other debt you owe. However, by reducing the interest rate, refinancing should save you money by reducing the amount of interest that you repay over the life of the loan.

    * How do I know if my loan is owned or has been securitized by Fannie Mae or Freddie Mac?

To determine if your loan is owned or has been securitized by Fannie Mae or Freddie Mac and is eligible to be refinanced, you should contact your mortgage lender after March 4, 2009.

    * When can I apply?

Mortgage lenders will begin accepting applications after the details of the program are announced on March 4, 2009.

    * What should I do in the meantime?

You should gather the information that you will need to provide to your lender after March 4, when the refinance program becomes available. This includes:

          o information about the gross monthly income of all borrowers, including your most recent pay stubs if you receive them or documentation of income you receive from other sources
          o your most recent income tax return
          o information about any second mortgage on the house
          o payments on each of your credit cards if you are carrying balances from month to month, and
          o payments on other loans such as student loans and car loans.

Borrowers Who Are at Risk of Foreclosure Are Asking:

    * What help is available for borrowers who are at risk of foreclosure either because they are behind on their mortgage or are struggling to make the payments?

The Homeowner Affordability and Stability Plan offers help to borrowers who are already behind on their mortgage payments or who are struggling to keep their loans current. By providing mortgage lenders with financial incentives to modify existing first mortgages, the Treasury hopes to help as many as 3 to 4 million homeowners avoid foreclosure regardless of who owns or services the mortgage.

    * Do I need to be behind on my mortgage payments to be eligible for a modification?

No. Borrowers who are struggling to stay current on their mortgage payments may be eligible if their income is not sufficient to continue to make their mortgage payments and they are at risk of imminent default. This may be due to several factors, such as a loss of income, a significant increase in expenses, or an interest rate that will reset to an unaffordable level.

    * How do I know if I qualify for a payment reduction under the Homeowner Affordability and Stability Plan?

In general, you may qualify for a mortgage modification if (a) you occupy your house as your primary residence; (b) your monthly mortgage payment is greater than 31% of your monthly gross income; and (c) your loan is not large enough to exceed current Fannie Mae and Freddie Mac loan limits. Final eligibility will be determined by your mortgage lender based on your financial situation and detailed guidelines that will be available on March 4, 2009.

    * I do not live in the house that secures the mortgage I’d like to modify. Is this mortgage eligible for the Homeowner Affordability and Stability Plan?

No. For example, if you own a house that you use as a vacation home or that you rent out to tenants, the mortgage on that house is not eligible. If you used to live in the home but you moved out, the mortgage is not eligible. Only the mortgage on your primary residence is eligible. The mortgage lender will check to see if the dwelling is your primary residence.

    * I have a mortgage on a duplex. I live in one unit and rent the other. Will I still be eligible?

Yes. Mortgages on 2, 3 and 4 unit properties are eligible as long as you live in one unit as your primary residence.

    * I have two mortgages.   Will the Homeowner Affordability and Stability Plan reduce the payments on both?

Only the first mortgage is eligible for a modification.

    * I owe more than my house is worth. Will the Homeowner Affordability and Stability Plan reduce what I owe?

The primary objective of the Homeowner Affordability and Stability Plan is to help borrowers avoid foreclosure by modifying troubled loans to achieve a payment the borrower can afford. Lenders are likely to lower payments mainly by reducing loan interest rates. However, the program offers incentives for principal reductions and at your lender’s discretion modifications may include upfront reductions of loan principal.

    * I heard the government was providing a financial incentive to borrowers. Is that true?

Yes. To encourage borrowers who work hard to retain homeownership, the Homeowner Affordability and Stability Plan provides incentive payments as a borrower makes timely payments on the modified loan.   The incentive will accrue on a monthly basis and will be applied directly to reduce your mortgage debt. Borrowers who pay on time for five years can have up to $5,000 applied to reduce their debt by the end of that period.

    * How much will a modification cost me?

There is no cost to borrowers for a modification under the Homeowner Affordability and Stability Plan. If you wish to get assistance from a HUD-approved housing counseling agency or are referred to a counselor as a condition of the modification, you will not be charged a fee. Borrowers should beware of any organization that attempts to charge a fee for housing counseling or modification of a delinquent loan, especially if they require a fee in advance.

    * Is my lender required to modify my loan?

No. Mortgage lenders participate in the program on a voluntary basis and loans are evaluated for modification on a case-by-case basis. But the government is offering substantial incentives and it is expected that most major lenders will participate.

    * I'm already working with my lender / housing counselor on a loan workout. Can I still be considered for the Homeowner Affordability and Stability Plan?

Ask your lender or counselor to be considered under the Homeowner Affordability and Stability Plan.

    * How do I apply for a modification under the Homeowner Affordability and Stability Plan?

You may not need to do anything at this time. Most mortgage lenders will evaluate loans in their portfolio to identify borrowers who may meet the eligibility criteria. After March 4 they will send letters to potentially eligible homeowners, a process that may take several weeks.   If you think you qualify for a modification and do not receive a letter within several weeks, contact your mortgage servicer or a HUD-approved housing counselor. Please be aware that servicers and counseling agencies are expected to receive an extraordinary number of calls about this program.

    * What should I do in the meantime?

You should gather the information that you will need to provide to your lender on or after March 4, when the modification program becomes available. This includes

          o information about the monthly gross income of your household including recent pay stubs if you receive them or documentation of income you receive from other sources
          o your most recent income tax return
          o information about any second mortgage on the house
          o payments on each of your credit cards if you are carrying balances from month to month, and
          o payments on other loans such as student loans and car loans.

    * My loan is scheduled for foreclosure soon. What should I do?

Contact your mortgage servicer or credit counselor. Many mortgage lenders have expressed their intention to postpone foreclosure sales on all mortgages that may qualify for the modification in order to allow sufficient time to evaluate the borrower's eligibility. We support this effort.

Can you obtain a mortgage modification on your own for free or without buying a book?

I have proven over the last year and a half that homeowners get a loan modification on their own and I have over 200 documented stories on my forum at www.LoanSafe.org to back up these claims.

We at Loan Safe have compiled the most complete list of FREE loan modification and safe foreclosure help tools available on the internet. The tools below will give you the education and know how to effectively deal with your lender or to obtain help from a non-profit.

The example hardship letters and lender contact information can be used to pursue any type of loan workout. (Mortgage Modification, Short Sale, Deed in Lieu of Foreclosure etc.)

Mortgage Modification | Learn How to Obtain a Loan Modification for Free

Moe Bedard (LoanSafe.org) — Sat, 13 Dec 2008 11:06:54 -0600

Can you obtain a mortgage modification on your own for free or without buying a book?

I have proven over the last year and a half that homeowners get a loan modification on their own and I have over 200 documented stories on my forum at www.LoanSafe.org to back up these claims.

The example hardship letters and lender contact information can be used to pursue any type of loan workout. (Mortgage Modification, Short Sale, Deed in Lieu of Foreclosure etc.)

Online 24/7 Mortgage Modification Tools From Loan Safe:

· Learn the Foreclosure Process - The foreclosure process varies in every state and it's imperative that homeowners understand this process. One thing is for sure, time is NOT on your side. But, an educated consumer is always an informed consumer who can make a "good" decision based on facts. Learn everything you can because this will affect you in every which way and it is something that should not be taken lightly.

· Foreclosure Laws by State - This section is dedicated to the various foreclosure laws to help you understand the legal process

· Avoid Foreclosure Scams- OCC Consumer Tips for Avoiding Foreclosure Rescue Scams
Foreclosures are increasing nationwide, and so are scams that promise to "rescue" homeowners from foreclosure. What these scams do is take your money, ruin your credit record, and wipe out any equity you have in your home.

· Example Hardship Letter- One of the items your lender or servicer will ask for during the loan workout or mortgage/loan modification process is a hardship letter. A hardship letter is a written explanation as to what "event" has caused you to fall behind on your mortgage and it vital in helping you stop foreclosure.

· Foreclosure Defense Tactics - Get your gloves on and start training for the fight of your life because foreclosure defense is going to be no easy battle.

· Lender & Loss Mitigation Contact Information - Find your lenders contact information.

· Qualified Written Request- Section 6 of RESPA provides borrowers with important consumer protections relating to the servicing of their loans. Under Section 6 of RESPA, borrowers who have a problem with the servicing of their loan (including escrow account questions), should contact their loan servicer in writing, outlining the nature of their complaint. The servicer must acknowledge the complaint in writing within 20 business days of receipt of the complaint. Within 60 business days the

· Short Sale Tips - The term "short sale" is very popular in today's mortgage and housing market. There are potentially millions of people facing foreclosure and a lot of these homeowners are under water on their mortgages. Some will choose to stick it out and fight. However, many will decide to choose to walk away. Short sales are becoming more and more popular as an exit strategy for homeowners. Learn the methods, software and magic it takes to navigate the foreclosure process and get the help you need.

· Real Estate Short Sales the Right Way - If you find yourself in a difficult real estate situation where your home and loan is underwater, don't fret, a short sale might just be the answer to help cure your mortgage woes.

· Can a Deed in Lieu of Foreclosure Cure Your Mortgage Woes? - For home borrowers ("mortgagors") facing foreclosure, a deed in lieu of foreclosure provides an alternative solution to the standard default process. In particular, the deed grants the lender (the "mortgagee") full rights to the property title.

Write Your Senator Today!

State Senator Contact Info

Department of Housing and Urban Development

Department of Justice (DOJ)

Federal Housing Administration(FHA)

You Can Avoid Foreclosure and Keep Your Home

Federal Trade Commission (FTC}

Internal Revenue Service (IRS)

Office of the Comptroller of the Currency (OCC)

More Mortgage Help:

Homeowner and Loan Modifications Scams: By all means DO NOT TRUST these phony mortgage modification companies that are preying on homeowners everywhere. Many of these fly by night companies are coming out of the wood work and their sole purpose is to scam desperate homeowners.

You will see these scammer websites advertised all over the search engines like Google and Yahoo.

Many make false claims that that they have a 98% success rate or they can obtain $100,000 mortgage loan principle reductions and their results are guaranteed. They take your $3,000 and you never see them again. There is no way in hell, ANYONE can promise that and remember, if it sounds too good to be true, then it is.

If you cannot get help from the above sources, then you may want to seek the assistance from an attorney.

Considering Foreclosure Alternatives Like a Deed in Lieu of Foreclosure

Moe Bedard (LoanSafe.org) — Mon, 22 Sep 2008 20:48:07 -0500

If you're considering foreclosure alternatives, a potential deed in lieu of foreclosure agreement is contingent upon a appraisal of the home. For a lending institution to agree to a deed in lieu of foreclosure, the "fair market" value of the property must be judged to cover the outstanding debt of the borrower, with broader considerations given for the potential costs of an alternative bankruptcy proceeding. It is important, however, to examine how fair market values are calculated.

"Fair" market values are estimates of what the buyer would pay in a free market for the home. In the Supreme Court case US v. Cartwright, the Court established such values as "the price which the properly would change hands between a willing buyer and a willing seller, neither being under any compulsion...(and) having a reasonable knowledge of the relevant facts." Given that the market can't clear in an open environment, the valuation is inherently subjective just as in the Keynesian example above, you should gather all the data you can to determine potential value including sales of nearby homes, trends in the market and additional 3rd party opinions.

While you may be in a difficult position, you should always be an advocate for your financial situation, approaching the potential deed with a rational, calm approach based upon the best possible decision for you. Values in today's market may be clouded with uncertain trends, so take time to truly evaluate your entire financial position, considering all options as you seek to put yourself on more sound financial grounding going forward.

What is a Deed in Lieu of Foreclosure

Moe Bedard (LoanSafe.org) — Sat, 13 Sep 2008 18:11:53 -0500

For home borrowers ("mortgagors") facing foreclosure, a deed in lieu of foreclosure provides an alternative solution to the standard default process. In particular, the deed grants the lender (the "mortgagee") full rights to the property title to satisfy the conditions of the loan. Such agreements are a common form of mortgage contract settlement. In general, a deed is a right granted by a legal contract based upon mutual agreement; therefore, a deed-in-lieu must be based upon voluntary agreement knon as a "quitclaim deed" in good faith.

In cases where a borrower lacks sufficient assets for a deficiency judgment, the lender will often pursue a deed settlement independent of court proceedings. Under certain conditions, a deed in lieu of foreclosure can offer several advantages to the borrower and lender alike. If agreed to by both parties, the lender is then able to assume ownership of the property, creating a more efficient process by limiting court costs and waiting periods involved in standard foreclosure processes. Standard foreclosure procedures can take years to court and are further complicated by personal bankruptcy declarations, which can be relatively common in such cases. For a borrower facing foreclosure, the deed agreement can relinquish him or her from underlying debt, thus removing the foreclosure record from a credit record and reducing the need for a declaration of personal bankruptcy. Lenders also benefit in terms of improved settlement efficiency, which greatly reduces the time, cost and potential complications that would otherwise be involved in a repossession procedure.

In order for the agreement to be reached, the appraised market value of the property must be less than the outstanding debt from the original agreement, and the property must not be subject to any 3rd party creditor claims or liens. Deeds-in-lieu are often initiated either by personal financial difficulties on the part of the borrower or changes in the macroeconomic environment that shift interest rates and/or underlying home values. Mortgage contracts that rely upon a relatively high monthly payment based upon a variable interest rate (with a limited, initial down payment) are particularly vulnerable to shifts in the economic environment; an interest rate change of just a few percentage points could double a borrower's monthly payment, under certain circumstances. The recent housing market challenges have reflected a coalescence of these factors, which have made deeds-in-lieu a common instrument for borrowers facing foreclosure.

Technically, to proceed with a deed-in-lieu both parties must agree to and sign both an Agreement in Lieu of Foreclosure, which outlines the terms of the deed, as well as the deed itself, which transfers legal ownership of the property. In certain situations, a borrower may pay to reduce the debt to ensure they maintain their credit rating. Once the agreements are reached, the lender then classifies the original loan as paid and issues a waiver to deficiency judgment, which would normally go into effect in case sale of the property results in an amount less than the debt. A third party escrow service then executes the agreement, thus releasing both parties from their original contract.

Sue the Banks.com

Moe Bedard (LoanSafe.org) — Tue, 01 Apr 2008 22:30:54 -0500

A friend of mine that worked at Countrywide Home Loans and ended up losing everything. He launched this new blog at Sue the Banks.com and I thought that I would give it a plug. Here is an excerpt.

The only website dedicated to tracking and reporting on the lawsuits against banks, lenders, builders, investment brokerages and anyone associated with what is known as "subprime slime."
Countrywide Home Loans and Angelo Mozilo are the poster child for SuetheBanks.com. Yes, there are many other lenders and banks that contributed to the mess that we are in today. But none come close to the decade of greed and decadence that came from this lending and banking institution.
I should know, I worked there for several years and "know" what happened behind closed doors.
Everyone in our country has now been affected by terrible lending practices and imprudent lending standards. From my now ex-colleagues to investors, cities and to the poor homeowners who are losing their homes because of loans that I never should have gave them. You see, I was a loan officer and I am ashamed of my past. I live with my shame every day as I drink myself to sleep on my dirty studio apartment floor.

Reality blogging at its finest!

Countrywide Investigation by ABC - They need our help

Moe Bedard (LoanSafe.org) — Mon, 03 Mar 2008 14:29:55 -0600

Files under: countrywide investigation, countrywide wrongful termination lawsuits

ABC is doing a 1 hour expose on Countrywide and Angleo Mozilo and they need our help.

Aaron Krowne of http://www.ml-implode.com/ and I have been in contact with ABC News and they are asking that we assist them in their investigation. Since I love Countrywide so much, I thought I would come over to Active Rain and see if their are any Countrywide victims who want to blow their whistle!!!!

Here is the contact info for ABC:

ABC News is working on a story looking at the troubles the subprime mortgage industry and Countrywide Financial are experiencing. If you are a current or former employee of Countrywide and are interested in sharing your experiences, please contact here.

http://abcnews.go.com/WN/story?id=4360730&page=1

Mortgage Help

Moe Bedard (LoanSafe.org) — Mon, 03 Mar 2008 13:00:59 -0600

By Moe Bedard

If you have been looking for mortgage help or assistance with a loan modification, then you have came to the right website for safe and accurate information. This blog and our forum at LoanSafe.org was created for the sole purpose of assisting homeowners who are struggling with their mortgages to find the "real deal" when it comes to understanding what these crazy lenders and servicers are doing to help.

By all means DO NOT TRUST these phony loss mitigation companies that are preying on homeowners everywhere. Many of these fly by night companies are coming out of the wood work and their sole purpose is to scam desperate homeowners. You will see their websites advertised all over the search engines like Google. Many make false claims that that they have a 98% success rate and their results are guaranteed. There is no way in hell, ANYONE can promise that and remember, if it sounds to good to be true, then it is.

You are not alone and in fact there are millions in your same position!

The first thing you need to know is that you are not alone. There are literally millions of people suffering as a result of their mortgages and this housing crisis. Yes, SUFFERING! This is no game and I do not take this lightly. You shouldn't either, but realize that you are not alone and you will get through this. One way or another.

Moe's most important homeowner tip for mortagage help:

One of the first things that a homeowner should do is identify that the mortgage on their current property is a lawful one. Meaning that there are no Truth in Lending Act or RESPA violations and there wasn't fraud involved on behalf of the lender or broker that originated your loan. If there is legal issues, then you can use these violations to your advantage and put the lender on the defense.

Red Flags and things to look out for in your loan. If your lender or mortgage broker violated the law, by all means, you may have found the holy grail to help you get out of your toxic or fraudulent mortgage.

Start by comparing the loan you got with the one you thought you were getting. Are the terms the same? That is, is your Annual Percentage Rate ("APR") the same as the one you were quoted? Are your total monthly payments the same as you were told they would be? Is there a prepayment penalty, and if so, were you told about this prepayment penalty?

If you have refinanced your primary residence, that is, the home your currently live in, then the first thing you should look at is the "notice of Right to Cancel" which is also called the Three Day Right of Rescission. You usually has three days after signing loan documents to change your mind and cancel the loan.

The borrower must be told of this right in writing.

If the creditor fails to properly provide notice of this right to cancel, the right of rescission may be extended for up to three years.

When the right is extended for three years you can rescind the loan at any time before three years, meaning that the loan is treated as if it never existed. Essentially, you become entitled to all profits made by the creditor as a result of this loan. This means that the creditor must refund all interest paid, all closing fees, all broker fees, and even pay for your attorney fees. As you can imagine, this amount can be quite significant.

The extended right of rescission is a powerful tool to help borrowers who have been victims of predatory lending, and helping our clients exercise this right is often the first step in holding a creditor responsible for illegal behavior.

The factors they will look at to see if your are eligible for a loan modification are:

1. Nature of Hardship Causing Your Mortgage Problems
2. Ability to pay
3. Amount Owed
4. Equity in the property
5. Future financial situation
6. What is better for them. To foreclose or pursue a loan workout with you and or modify your loan. Meaning which approach will best benefit the lender in the long run.

Mortgage help can take form either via a loan workout or loan modification and this generally occurs where the parties to a problem loan mutually agree to workout the problem by creating new and better loan terms. The hope is that the new loan will enable to the borrower to meet their obligations.

Make the Plan and Work the Plan:

When applying for loan modification help, make a game plan on how exactly you are going to approach your lender or servicer. You need o plan for the worst and hope for the best. So, that means you are going to make 2 plans. 1 plan is to approach a loan workout plan with your lender and the 2nd plan is a "backup" plan in case your attempts to get a loan modification do not work. The 2nd plan is for your to prepare for the worst case scenario.

Understanding your lenders or servicers employees:

These people are trained in minimizing loss for their company and they get paid to by getting the most amount of money out of you as possible or declare that your case is un workable and foreclose on you. That is how they mitigate loss. If you understand this, then you'll know that you have to approach them and all conversations very carefully. They are people just like you and they are just doing a job.

Many do not care much about anything but lunch and Friday's. You have to befriend them and "win" their compassion and open ear.. My advice is to be as nice as you can to these people who answer the phone (no matter how pissed off you are at your lender). They have a tough job with hundreds of angry homeowners calling every day. Stand out and be the nice, calm and collective homeowner. You'll be surprised that this simple tip will get you FAR!

The Mortgage HELP Plan:

1. Gather all your financial information and separate it into 3 categories

Income - Any and all income. Wages, social security, child support, welfare etc.
Assets - All real estate, 401k, IRA, stocks & bonds, autos, boats etc.
Expenses - All expenses, mortgage payment, taxes, utilities, vehicles, cell phone, child care, insurance etc.
Income & Expense Sheet - Now make a income and expense sheet with all your data. Here is a sheet to help you.

Your lender or servicer will ask you to fill out a financial statement and this is what the lender will use to determine if you are eligible for a loan modification.

2. Write a hardship letter. Here in an example hardship letter

You'll need to provide this hardship letter, documenting the reason you are unable to afford the mortgage (or reason you have fallen behind) and the reason that you are a good candidate for loan modification. This letter will give your lender or servicer a clear picture and shows that you are a responsible borrower who has just suffered a hardship or a rate reset that is causing your problems.

This letter is going to explain what is causing your mortgage woes and why you are having problems
Make it short and sweet. 1 page to 2 at max. Remember you are sending this letter to an "employee" who is very busy and does not have time to read 5 page hardship letters.

3. Prepare for your first phone call:

Here is a list of lender and servicer contact information
Gather all the contact numbers you'll need.
Place your emotions to the side because this is all about "business"
Place a smile on your face and get ready for the fight of your life!

The trick with any bank and getting a work out done is learning to navigate their phone system so as to increase your chances of getting a live person. Over the years I've learned some tricks that help, sometimes you hear options that you know will lead to a person like when it says "to speak to a representative press ___" but sometimes they don't give you these options.

So, you have to think, what options WOULD get a live person. For example often anything that involves new clients signing up will get a live representative...because they always want new business. You have to be a little savvy though; you can't just tell the sales guy you called them so you could get a warm body to answer the phone!

Once you get a live person, you want to be working your way up to a decision maker. This is sometimes harder to do for a homeowner than a 3rd party. Often with the homeowner they get stonewalled at the first level, and sadly the first tier in Loss Mitigation is really a glorified collections department. They are paid hourly employee's who have very little if not zero motivation to go the extra mile and help you get some needed comfort and relief while resolving your problem. Often they just compound the problem by being rude and demanding, telling people things like "just pay your bills". So it's essential that you get beyond these people and to a specialist.

4. Document your efforts

Make a separate folder for this and attach a "conversation log" or a "call log"
Document every call, conversations, fax, letter, email on your call log
This is very important in case you receive abuse and neglect from your lender or servicer. This will be your "evidence" in case you have to file a complaint with the Housing and Urban Development (HUD) or if your decide to bring a lawsuit against your predatory lender or servicer.

Closing loan modification thoughts:

The MOST crucial element to getting mortgage help is your budget and if you have done your due diligence, you'll be ready . They will ask you for a detailed list of your monthly expenses. If it's too tight, you may not get approved, if you have too much extra income you are going to have an outrageous payment plan.

Don't agree to it!

If you need more mortgage help or free foreclosure help, then please visit our forum at http://www.loansafe.org/. A safe community for homeowners to get the information they need to get educated and fight back!

Countrywide Foreclosure Assistance in California

Moe Bedard (LoanSafe.org) — Mon, 18 Feb 2008 15:01:59 -0600

There are a lot of homeowners that are seeking foreclosure assistance from Countrywide in California. So, I thought I would post some helpful phone numbers and links to get people started in the right direction.

Toll free direct number to Countrywide Home Loan Workout Dept. in Lancaster, CA:
866-806-8692 (extension 8692 if your negotiator is M. A. Hernandez)

Direct number to Workout Dept. in Lancaster, CA:
661-951-5100
(not toll free but gets you right in)

Address: 400 Countrywide Way SV-314
Simi Valley, CA 93065-3500 Other Addresses: 400 Countrywide Way SV-314
Simi Valley, CA 93065-3500
450 American St
Simi Valley, CA 93065
7105 Corporate Dr.
Plano, TX 75024
P.O. Box 10211
Van Nuys, CA 91499
P.O. Box 5170
Simi Valley, CA 93062-5170
21 E. Victoria Street
Santa Barbara, CA 93101
35 North Lake Avenue, 35-72B
Pasadena, CA 91101

Primary Phone: (800) 669-6093 Other Phone Numbers: (800) 669-6093
(818) 874-8779
(818) 225-3000
(972) -52-6-6330
(805) 650-6566
(805) 520-5100
(800) 686-0145

Primary Fax: (800) 658-9364 Other Fax Numbers: (800) 658-9364
(805) 520-5019

Moe's quick loss mitigation tip of the day:

Can't get a hold of your negotiator?

Get the correct spelling of your workout persons name, First and Last. email them Firstname.Lastname@countrywide.com Remember to use the period between first name last name. Use the loan number and owners last name in the subject line Make sure your return phone number is easily displayed, you will get a response every time.

If you are in foreclosure, you do not have a lot of time. Below are some tips and links to help you get started in the right direction.

Free Foreclosure Help - Tools & Tips to Help Homeowners Stop Foreclosure

If you need foreclosure assistance with Countrywide, then follow the steps above or you can visit our forum.

Please join our one of a kind homeowner's forum where you can ask questions and get answers in this unique and interactive community that was created to assist people in an anonymous, yet open question format. Meet other homeowners that are going through the same thing and get the help you need from industry experts and foreclosure defense and mortgage law attorneys.

Click on the banner above to enter the forum

Foreclosure Process for Dummies

Moe Bedard (LoanSafe.org) — Tue, 12 Feb 2008 16:46:35 -0600

A basic understanding of the foreclosure process is critical in figuring out exactly how much time you have to do whatever it is you plan to do when facing foreclosure.

The foreclosure process varies in every state and it's imperative that homeowners understand this process. One this is for sure, time is NOT on your side. But, an educated consumer is always an informed consumer who can make a "good" decision based on facts. Learn everything you can because this will affect you in every which way and it is something that should not be taken lightly.

Day 1 - Borrower misses first payment by a day. No penalties assessed at this time

Day 16-30 - A late charge is assessed to the borrower's payment.
The lender or mortgage servicer will attempt to make contact with the borrower for an explanation.

On day 16, however, a late fee is assessed. At this point there are no ramifications beyond that late fee and maybe a "friendly reminder" call from the lender's customer service department. The late payment probably won't even show up on the borrower's credit report. On Day 30 that changes. At that point the borrower is in default and things quickly turn serious and the foreclosure process speeds up.

Day 45-60 - The servicer sends "demand" or "breach" letter to the borrower stating the mortgage terms that have been. The borrower is given only 30 days to resolve the delinquent amount.

During these few months of the foreclosure process, the servicer will offer the borrower two primary options to cure the mortgage -- a repayment plan and a loan modification. With a repayment plan, the company agrees to tack, say, half the amount of the first missed payment onto each of the next subsequent two payments. These plans provide some breathing room for borrowers with short-term financial problems, such as expensive car repairs that make it too difficult to pay the mortgage for one month.

Day 90-105 -The servicer refers the loan to its loss mitigation department / foreclosure department and retains an attorney or other firm to handle the foreclosure proceedings. Depending on the state where the home is located, the servicer's representative may record a notice of default at the local courthouse and it will be published in the local newspaper

The servicer will still try to arrange a repayment schedule. But the borrower will likely have to pay a third to a half of the delinquent amount upfront, and then pay off a portion of the remaining balance each month for a year or more.
"In a repayment plan, the borrower agrees to do a payment and a half, a payment and a quarter, etc., for whatever number of months is needed to make that loan current," says Fannie Mae's Smith.

Loan modificationsgo a step further and they're designed for customers that can't afford repayment plans. In a modification, the servicer actually halts the forelcosure process and adjusts the terms of the loan to make it affordable. It may lengthen the amortization schedule or lower the interest rate to cut the monthly payments, or roll the past due amount into the loan and re-amortize the new balance so the borrower can pay the additional debt back over time.

If the customer has a more serious financial problem, such as a longer-term job loss followed by rehire at another company that pays much less, alternatives still exist. The servicer may agree to a "short sale." In such sales, the lender lets the borrower sell the house for less than the outstanding loan amount, takes the proceeds and forgives any remaining overage. Banks are willing to do so because they often lose less on these deals than they do in foreclosures.

Day 150-415 -A notice of trustee Sale is filed and the home is scheduled to be soldat foreclosure sale or auction. This time range varies due to individual state laws and requirements.

States with judicial foreclosures / where foreclosures are done via the court system, can sometimes extend this period to a year or more.

Nonjudicial foreclosure states can foreclose in as little as two months.

Day 150-415 - Some states offer what is called a redemption period after the foreclosure sale in order to give the borrower time to purchase the property if they have the ability. However, most will be forced out of their home by the local sheriff's department.

The law in most states gives the homeowner every opportunity to stop the process leading to foreclosure, right up to the minute that the auctioneer's gavel comes down and sometimes even beyond. In some states there is a period after the foreclosure during which the homeowner can redeem the property (right of redemption.).

Following the same logic, customers should try to negotiate the best deal they can get without feeling guilty. Someone whose property has fallen in value below the mortgage amount because of a neighborhood decline, for example, should consider pushing for a short sale or short refinance rather than a repayment plan. That way, the borrower doesn't pay more money than necessary. Nevertheless, the best way for consumers to get out of foreclosure without racking up extensive legal bills and ruining their credit histories is to start working on a solution before their problems get out of hand.

To learn more about the foreclosure process and to get free foreclosure help online then please join our forum.

Where you can ask questions and get answers in this unique and interactive community that was created to assist people in an anonymous, yet open question format. Meet other homeowners that are going through the same thing and get the help you need from industry experts and foreclosure defense and mortgage law attorneys.

Free Foreclosure Help Online

Moe Bedard (LoanSafe.org) — Tue, 12 Feb 2008 16:28:26 -0600

I wanted to let Active Rain members and readers about my website that offers free foreclosure help online and coached homeowners on how to negotiate with their lenders themselves.

I was feature today in the Press Enterprise in an article in the business section by Leslie Berkman and I thought I would share this with everyone and let them know that their blogging and websites can make a difference in peoples lives.

Corona man uses blog to coach homeowners on how to save their property
Blogging at his laptop computer in Corona, Moe Bedard coaches a team of 1,000 homeowners racing an obstacle course to save their homes from foreclosure.
They have joined Bedard's Internet site, LoanSafe.org, founded in August as a grass-roots forum for homeowners who face the prospect of losing their homes to skyrocketing adjustable mortgages.
"I think people can help each other. There doesn't have to be so many foreclosures," Bedard said.
To date, LoanSafe takes credit for helping members save 19 homes from foreclosure. Their stories are chronicled on the site, and Bedard said they are meant to inspire others.
"It's like being an online coach," Bedard said of his role, which includes monitoring the Web site to keep out unauthorized for-profit solicitors, answering questions and giving encouragement from 5 a.m., when clients on the Eastern Seaboard begin to log in, until 10 p.m.
He said the site has gotten about 500,000 hits, and they keep coming at a rate of about 5,000 a day.
Modifying a Loan
The free foreclosure help Web site is where people who use such sign-on names as luvmyhouse and madashell can anonymously vent their anger and worries, share their experiences and cheer one another on.
Bob Sweigart, of San Diego, said he was one of the first to use the Web site as a tool to obtain a loan modification after the interest rate on his 5.99 percent adjustable-rate mortgage had jumped to 9.75 percent and was set to increase again.
Sweigart said someone at Countrywide had interviewed him by phone and determined he was "prequalified" for a loan modification, but then he heard nothing more for six months. He made 40 calls to Countrywide but got no response.
He said he learned on the LoanSafe Web site that lenders are legally obligated to answer a letter, and another Web site member offered vital e-mail addresses, including one for Countrywide's president.
Within 24 hours of sending a barrage of e-mails to Countrywide, Sweigart had an agreement from the lender to push the interest rate on his mortgage back to the low introductory rate for five years, he said.
"I am one of the lucky ones," Sweigart said. "There are so many people out there who don't have a clue. They don't know what loan modification means. I am on the Web site all the time helping people by telling them these are the steps that I took. Do what I did."

If you need free foreclosure help or assistance with a loan modification then please visit Loan Safe today!

Project Lifeline

Moe Bedard (LoanSafe.org) — Tue, 12 Feb 2008 16:11:15 -0600

Project Lifeline, a new program and is now available to help homeowners stop the foreclosure process and work out a loan modification with their lender. Hopefully this will provide much needed relief to the thousands of homeowners that are facing foreclosure and in need of much needed relief.

I wanted to post some information to help anyone who is looking for the facts on this new program.

Quote from Hank Paulson US Treasury Secretary:

Today, six of the largest servicers, who represent 50 percent of the mortgage market, are announcing Project Lifeline, a targeted outreach to homeowners' 90-days or more delinquent that may lead to a "pause" in the foreclosure process. This is an important new initiative, targeted to reach not only subprime borrowers, but all 90-day delinquent homeowners nationwide with a step-by-step approach to find individual solutions to individual problems. We encourage all HOPE NOW servicers to adopt this new program.

Project Lifeline is aimed at homeowners who face a real risk of losing their home, but have not yet addressed the problem. Perhaps they are hoping to find a way to get current on their mortgage payments, or perhaps they don't think any solution is possible. For whatever reason they have not yet taken action; our hope is that today's announcement will reach them, and they will reach out immediately for help - especially now that the foreclosure process is upon them.

Of course, there will be homeowners who still take no action, and some will simply walk away from their mortgage - particularly those borrowers who put little or no money down and whose mortgage exceeds their home value. No program can bring every struggling borrower into the counseling and evaluation process, and we cannot help those who choose not to honor their obligations. But Project Lifeline has the potential to offer new solutions to responsible, able homeowners who want to keep their homes.

More on Project Lifeline from CNN - Major lenders put freeze on foreclosures

The banks so far participating in the program are Citigroup (C, Fortune 500), Countrywide (CFC, Fortune 500), Bank of America (BAC, Fortune 500), JPMorgan Chase (JPM, Fortune 500), Washington Mutual (WM, Fortune 500) and Wells Fargo (WFC, Fortune 500).
Project Lifeline was put together with the backing of Jackson, Treasury Secretary Henry Paulson and Faith Schwartz, director of Hope Now, the government-backed, foreclosure prevention coalition.

Project Lifeline Facts

Under the Project Lifeline program, homeowners 90 days or more behind in their mortgages will get a letter from their lenders asking them to call. Borrowers will be asked if they want to stay in their homes; if so, they will be offered financial counseling.
Loan modifications are not automatically granted. Borrowers will have to provide up-to-date information about their wages and debts. At that point, the lenders decide whether to pause the foreclosure process.
During the moratorium, foreclosure prevention specialists will determine if there's a good possibility that a loan modification will work. In other words, will a borrower be able to regain his footing and start paying his mortgage again?
Any loan modifications - such as lowering interest rates, balances or both - will be provisional. After homeowners make payments on time for three months, the changes to the terms of loans will become permanent.

www.LoanSafe.org

Loss Mitigation Phone Numbers - Upated List

Moe Bedard (LoanSafe.org) — Sat, 20 Oct 2007 11:55:07 -0500

This is the most complete list of lender loss mitigation contact information on the internet. It is sorted in alphabetical order. If you have some information on your lender or different contact info that I am not privy too or I have a wrong number or web address then please let me know so we can all help each other.

The first step to stop foreclosure is to contact your lender and try and obtain a reasonable loan workout or repayment plan. The quicker you get the ball rolling, the better chance you have of striking a deal with your lender, so you can save your home and your credit Please start making calls, get educated and have all your ducks in a row. The hardest call is the first. It only gets easier after that.

More than 50% of foreclosures would be avoided if people contacted their lender. So be proactive and aggressively pursue all options you have because you do have quite a few tools you can utilize to mitigate as much loss to you, your credit and your family. If your are short on time and you cannot do it on your own, then please seek help from a Non-Profit HUD approved Housing Counselor, an attorney or a legit for profit that can handle the calls and paperwork for you.

Time is ticking and it goes by fast when you're behind the infamous 8 ball. As Nike would say, "Just Do It!"

This post will be a work in progress and I plan to make it the most complete FREE list on the internet. Please feel free to post this on your website or blog but you must have a link with the anchor text stop foreclosure. Just email me and let me know where it will be on your website.

Lender/Servicer Loss Mitigation Phone Numbers & Contact Information

ABM AMRO Mortgage (800) 783-8900
Web: https://www.mortgage.com/C3/application.bus

Accredited Home Lenders(877) 683-4466

AMC Mortgage Services (Also handles loans originated by Ameriquest and Argent) (800) 211-6926
1600 McConnor Parkway
Schaumburg, IL 60173
Web: https://www.myamcloan.com/malwebapp/begin.do

American Home Mortgage Corp.(877) 304-3100*

Ameriquest Mortgage (Debt collection -- see AMC Mortgage Services) (800) 211-6926

Aurora Loan Services (Debt collection) (800) 550-0508
By Overnight Mail:
601 5th Avenue
Scottsbluff, NE 69361
Attn: Customer Service
By Regular Mail:
P.O. Box 1706
Scottsbluff, NE 69363
E-mail: ccnmail@alservices.com
Web: https://www.alservices.com/Consumer/UI/SSL/Authentication/Login.aspx?ReturnUrl=%2fConsumer%2fUI%2fSSL%2fServ icing%2fDefault.aspx

Avelo Mortgage LLC (866) 992-8356*

Bank of America(800) 846-2222

BB&T Mortgage (800) 827-3722*

AmTrust Bank (fka Ohio Savings Bank) (888) 696-4444

Beneficial (800) 333-5848

Central Pacific Bank (800) 342-8422*

Charter One (800) 234-6002

Chase (800) 446-8939
Chase Home Finance (800) 848-9136 (customer service) (858) 605-2181 (delinquency customer service)
Chase Home Finance-New Jersey(800) 446-8939*Chevy Chase Bank(800) 933-9100*
Web: https://chaseonline.chase.com/chaseonline/logon/sso_logon.jsp?fromLoc=ALL&LOB=COLLogon

Chase Manhattan Mortgage
(800) 446-8939 (Ohio Servicing Center)
(800) 526-0072 (Florida Servicing Center)
(800) 527-3040 x533 (Florida Servicing Center)

Chevy Chase Bank (800) 933-9100
Web: https://www.chevychasebank.com/htm/payment.html (Payment Addresses)

Citi Financial Mortgage (800) 753-3673

Citimortgage (800) 283-7918

Countrywide (800) 262-4218
https://customers.countrywide.com/secure/FHAStart_login254.asp

Ditech (800) 852-0656 (800) 449-8582

Downey Financial Corp.(800) 824-6902, ext. 6696

Deutsche Bank National Call Number on Mortgage Statement

EMC 800-723-3004
P.O. Box 141358
Irving, TX 75014-1358
Web: https://www.emcmortgageservicing.com/ccn/ccnsecurity.asp

EverBank (800) 669-7724 ext. 4730

Equity One (Debt collection) (866) 361-3460

First Horizon Home Loans (800) 489-2966*

Fifth Third Bank (800) 375-1745 Option 3

First Merit Bank (888) 728-9931

Flagstar Bank (800) 968-7700, ext. 9780

Fremont Investment & Loan (866) 484-0291

GMAC Mortgage (800) 850-4622

GreenPoint Mortgage Funding (800) 784-5566, ext. 5383*

Green Tree (877) 816-9125

Homecomings Financial (800) 850-4622*

HomeEq Mortgage Servicing ( Debt collection) (866) 822-1471

Household Finance (A HSBC Co.) (800) 333-5848

Household Mortgage (800) 333-4489
Household Mortgage -(Is now called HSBC Mortgage Services) (800) 365-6730

HSBC Mortgage Corp.(there is a difference between Mortgage Services and Corp. placed new number) (800) 338-6441
Default Resolution Team (if long term problem)
2929 Walden Avenue
Depew, NY 14043
(888) 648-3124 Loss Mit
(732) 352-7519 Fax
Web:http://us.hsbc.com/personal/mortgage

HSBC Mortgage (800) 338-6441
Default Resolution Team (if long term problem)
2929 Walden Avenue
Depew, NY 14043
(888) 648-3124 Loss Mit
(732) 352-7519 Fax
Web:http://us.hsbc.com/personal/mortgage/existing/difficulties.asp

Huntington National Bank (800) 323-4695

Indymac Bank (877) 736-5556
C/O Loan Resolution Department
P.O Box 7014
Pasadena, CA 91107
(Monday - Friday 6:15am-7:15pm. (Pacific Time))
Web: https://www.indymacbank.com/contactus/loanResolution.asp

Irwin Mortgage (888) 218-1988
P.O Box 7014
Pasadena, CA 91107
Web: https://www.irwinmortgage.com/wps/portal/!ut/p/cxml/04_Sj9SPykssy0xPLMnMz0vM0Y_QjzKLN4g3sdAvyHZUBAAqwx 9c
E-mail: deliquency.prevention@irwinmortgage.com</strong>

James B. Nutter & Company (800) 315-7334

Key Bank (800) 422-2442

LaSalle National Bank (800) 783-8900

Litton Loan Servicing (800) 999-8501 or (800) 548-8665
Fax (713) 966-8820
4828 Loop Central Drive
Houston, Texas 77081-2226
Web: https://www.littonloan.com/index.asp

Loss Mitigation Department Hours:
Monday Eastern: 9 a.m. - 7 p.m. Central:8 a.m. - 6 p.m. Mountain:7 a.m. - 5 p.m. Pacific:6 a.m. - 4 p.m.
Tuesday-Thursday Eastern:9 a.m. - 9 p.m. Central:8 a.m. - 8 p.m. Mountain:7 a.m. - 7 p.m. Pacific:6 a.m. - 6 p.m.
Friday Eastern:10 a.m. - 6 p.m. Central:9 a.m. - 5 p.m. Mountain:8 a.m. - 4 p.m. Pacific:7 a.m. - 3 p.m.
Default Counseling Department representatives are also available most weekends on Saturday from 8 a.m. to 12 p.m. and Sunday from 10 a.m. to 2 p.m. (CST).

Midland Mortgage (800) 552-3000 or (800) 654-4566
Web: https://www.mymidlandmortgage.com/MyMortgage/Login/Login.asp

Mortgage Lenders Network (800) 691-0129
E-mail: customerservice@mlnusa.com
Web: http://www.mlnusa.com/customers/info_credithelp.asp

Mortgage Electronic Registration Systems (888) 679-6377

National City (800) 367-9305, Ext. 53221 or (800) 523-8654
Attention: Homeowner's Assistance
3232 Newmark Dr.
Miamisburg, Ohio 45342
(8AM-10:30PM ET, Monday - Thursday)
(8AM-5PM ET, Friday)
(8AM-Noon, Saturday)
Web: http://www.nationalcitymortgage.com/service_assistance.asp

Nationwide Advantage Mortgage Company (800) 356-3442, ext. 6002*

NationStar Mortgage (888) 850-9398* Press 0 for operator

New Century Financial Now Carrington Mortgage Services (800) 790-9502 or (877) 206-9904
(6:00 a.m. to 7:00 p.m. Pacific Time, Monday - Thursday)
(6:00 a.m. to 6:00 p.m. Pacific Time, Friday)
Web: https://myloan.newcentury.com/webapps/servicing/myloans/index.do

NovaStar Mortgage Loan Resolution Department (888) 743-0774 Non-English: (888) 743-0774, ext. 4523

Ocwen Federal Bank (800) 746-2936 or (877) 596-8560
Web: http://www.ocwencustomers.com/csc_fa.cfm

Attention: Financial Information
12650 Ingenuity Drive
Orlando, Florida 32826
or
Ocwen Financial Corporation
1661 Worthington Rd., Suite 100
West Palm Beach, Florida 33409
Phone: 877-226-2936

For serving Ocwen with legal process, please send to their registered agent:
Corporation Service Company
2711 Centerville Road, Suite 400
Wilmington, DE 19808
Phone: 561-682-8000, x8386

Option One (866) 711-1962 or (888) 275-2648
Web: http://www.oomc.com/servicing/servicing_baifaqs.asp

PHH Mortgage (Formerly Cendant) (800) 257-0460
For borrowers facing possible delinquency: (800) 330-0423*
For borrowers in the foreclosure process: (800) 750-2518
Web:https://www.phhmortgage.com/sso/mq/login.jsp?TYPE=33554433&REALMOID=06-9153316d-cf4d-4425-a5d7-c0b20a7b098d&GUID=&SMAUTHREASON=0&METHOD=GET&SMAGE NTNAME=phhmort-stb&TARGET=$SM$https%3a%2f%2fwww%2ephhmortgage%2ec om%2fhome%2flandscape%3fjpid%3dLogIn%26loginmode%3 dregistered&SMSESSION=NO

ResMae Mortgage Corp.(877) 473-7623, ext. 5944

Saxon (800) 665-7367

Select Portfolio Servicing (888) 818-6032
Fax: (801) 293-3936
Loan Resolution Department
P.O. Box 65250
Salt Lake City, UT 84165-0250
(Monday - Thursday 10:00 a.m. - 10:00 p.m. EST)
(Friday 10:00 a.m. - 7:00 p.m. EST)
(Saturday 9:00 a.m. - 1:00 p.m. EST)
Web: http://www.spservicing.com/services/customer/loanresolution.htm

SkyBank (800) 290-3359

Sun Trust Mortgage (800) 634-7928
PO Box 26149
Richmond, VA 23260-6149
Mail Code RVW 3003Web: https://www.suntrustmortgage.com/generalquestions.asp#

Third Federal Savings (888) 844-7333

US Bank (800) 365-7900

Wachovia Bank of Delaware (866) 642-8608

Washington Mutual (866) 926-8937 or (888) 453-3102 or (800) 478-0036 or (800) 254-3677

Waterfirld Mortgage (800) 957-7245
Fax: (260) 459-5390
c/o Loss Mitigation Dept.
7500 W. Jefferson Blvd.
Fort Wayne, IN 46804
(7 am - 10 pm EST Monday - Thursday)
(7 am - 9 pm EST Fridays)
(8 am - 2 pm EST Saturdays)
E-Mail: saveyourhome@waterfield.com
Web: http://www.waterfield.com/scripts/cgiip.exe/WService=wfg/pub/borrowerservices/delqasst

Wells Fargo (877) 216-8448 or (866) 261-5642 or (800)766-0987 or (800) 678-7986 for payment assistance
Borrower Counseling Services
Monday - Friday 8:00 a.m. - 9:00 p.m., CT
Saturday 9:00 a.m. - 2:00 p.m., CT
Web: https://www.wellsfargo.com/mortgage/account/

Wendover Financial Services Corporation (800) 934-1081 or (800) 436-1022
Web: http://www.wendover.com/borrowers.html

Wilshire Credit Corporation (888) 502-0100
P.O. Box 8517
Portland, OR 97207-8517
From 6 a.m. to 5 p.m. (Pacific time) Monday through Friday
Web: http://www.wfsg.com/borrower/borrower.aspx

*No direct line to the loss mitigation or loan modification department. But I am working on it

Loan Modification & Loan Workout Applications

Chase Loan Modification Application

Option One Loan Modification Application

HSBC Online Loan Modification Application

Private Contacts

Wendy Knafelc at Washington Mutual Loss Mitigation: (904) 732-8425 -- wendy.knafelc@wamv.net

Best of Luck to You!

Moe Bedard

Predatory Lending Defense for Non-English Speaking Borrowers-MUST READ

Moe Bedard (LoanSafe.org) — Sat, 20 Oct 2007 11:19:05 -0500

The recent and dramatic rise in foreclosure activity, fueled in large part by predatory lending practices, has effected everyone, including the Hispanic Communities and other multi-cultural communities. Fortunately, there are specific laws that protect homeowners from these practices, yet the reality is many are unaware.

We have been providing legal services to homeowners in Southern California to stop foreclosure and have had notable success with respect to non-English speaking borrowers. We have found that in many circumstances, borrowers with limited ability to understand English, have been the target for many unscrupulous brokers and lenders. Our hope is to be able to provide assistance to these borrowers.

One, law in particular that is relevant to this group is California Civil Code § 1632. For example, t his statute requires that borrowers who negotiate loan terms with a mortgage broker in Spanish, must receive their loan documents in Spanish.

The reality is this simply does not happen.

The obvious result is that the borrower really is at a significant disadvantage in that they are unable to verify the representations made by the broker.

As a law firm, we typically take these cases on a contingency, which allows borrowers who may not otherwise be able to afford adequate legal representation to have access to this valuable service. We are also in the process of completing our non-profit organization and are waiting for our 5013c tax exempt status. All of us at Homeowners Defense Advocates are excited to provide additional educational and legal services. Our goal is to see these predatory lending practices exposed and corrected. We hope to build alliances with various organizations who share the same consumer oriented perspective.

--
Best Regards,

Moe Bedard

Home Owners Loan Act

Moe Bedard (LoanSafe.org) — Sun, 30 Sep 2007 10:38:05 -0500

The Home Owners Loan Act established a corporation that refinanced one of every five mortgages on urban private residences. Other bills passed during the Hundred Days, as well as subsequent legislation provided aid for the unemployed and the working poor and attacked the problems of agriculture and business. This also helped establish the " Home Owners Loan Corporation" which would over see and distribute the funds to homeowners.

The Home Owners Loan Act was inacted to supplement the Home Loan Bank Act that was inacted the year before. Under its provisions the Federal Home Loan Bank Board created a new agency called the "Home Owners Loan Corporation". The agency was given capital of $200,000,000 from the Treasury and the power to issue bonds of up to $3,000,000,000 to refinance first mortgages on homes valued up to $20,000.

The Act also provided for th establishment of the federal savings and loan associations which would join with the Federal Home Loan Bank System and enjoy the benefits of government aid through the investments of federal funds.

On Inaugural Day, March 4, 1933, President Roosevelt declared that "the only thing we have to fear is fear itself." The next day he halted trading in gold and declared a national bank holiday. On March 9 he submitted to Congress an Emergency Banking Bill authorizing government to strengthen, reorganize, and reopen solvent banks. The House passed the bill by acclamation, sight unseen, after only 38 minutes of debate. That night the Senate passed it unamended, 73 votes to 7. On March 12 Roosevelt announced that, on the following day, sound banks would begin to reopen. On March 13, deposits exceeded withdrawals in the first reopened banks. "Capitalism was saved in eight days," Raymond Moley, a member of the president's famous "brain trust," later observed.

Its purpose was to refinance homes to stop foreclosure. It was usually used to extend loans from shorter, expensive payments of 15 year loans to lower payments of 30 year loans. Through its work it granted long term mortgages to over a million people facing the loss of their homes. Home Owners Loan Corporation and its funds were only applicable to nonfarm homes. They also bailed out mortgage-holding banks.

By June of 1936, the Home Loan Corporation operation had been ceased. The agency, in that short time, refinanced over 1,000,000 mortgages for a total of $3,100,000,000.

Unfortunately the Act was deemed a failure because many homeowners could not pay their mortgages.

Moe's Sources for this Post:

Google
http://books.google.com/books?id=aqG-B4jsMIAC&pg=PA293&lpg=PA293&dq=home+owner+loan+act+1936&source=web&ots=kU-vteGz54&sig=HcAkrVGUosixsUsDQI-XywUq_AI
http://www.fanniemaefoundation.org/programs/hpd/pdf/hpd_16034_crossney.pdf
http://en.wikipedia.org/wiki/Home_Owners'_Loan_Corporation

Moe

Founder & Homeowner Advocate
LoanSafe.org
LoanWorkout.org
951-271-6283 Phone
800-734-8819 Fax
Moe at LoanSafe.org Email

995 HOPE

Moe Bedard (LoanSafe.org) — Sat, 29 Sep 2007 19:09:12 -0500

Call 888-995-HOPE for help!

The message is out and homeowners need to know they can obtain FREE foreclosure prevention services from the Homeownership Preservation Foundation. The toll free foreclosure hotline has been inundated with worried homeowners seeking assistance and relief from their toxic mortgages and to help stop foreclosure.

The Homeownership Preservation Foundation, in partnership with mortgage lenders, nonprofit organizations and city government agencies, provides homeowners with counseling and resources to help homeowners resolve their mortgage troubles. Homeowners who call the 888-995-HOPE number can receive free advice and counseling from nonprofit, HUD-certified organizations - 24 hours a day, 7 days a week. You can also visit their website at http://www.995hope.org/ .

The popular homeowner hotline received more than 14,000 calls during the first quarter of 2007, a 30 percent increase over the fourth quarter 2006. More than 25,000 homeowners called the hotline in all of 2006. In April they were receiving over 300 calls a day. The hot line counseled 15,207 people in the second quarter, analyzing their budgets in detail. Of those, 26 percent were told they might qualify for a loan workout, according to Tracy Morgan, a spokeswoman for the group. Another 28 percent were told to try to improve their budgets then seek a workout. source San Francisco Chronicle

That was then and in only 5 months and now they are reporting over 1,000 calls per day in this CNN Money report.

Here are some quotes from that article:

"Tracy Morgan is a spokeswoman for the Home Ownership Preservation Foundation, which operates a foreclosure hotline (1-800-995-HOPE) for Neighborworks. Last year, she said, the hotline handled about 75 calls a day nationwide. By June, 2007, the number ballooned to 750. For this September, the average day has brought about 1,300 calls.

"Morgan traces most of that increase to the subprime meltdown. California, where a high percentage of mortgages were subprime adjustable rate mortgages (ARMs), has become the number one caller state."

Things you should know

Homeowner's HOPE provides free counseling - we do not do refinancing, down payment assistance or provide loans. But we can connect you with local nonprofit resources that provide different kinds of assistance.

Although we have an excellent working relationship with many of the nation's largest mortgage companies, we cannot force a mortgage company to eliminate debt, forgive payments or dictate solutions.

We are here for you 24 hours a day, seven days a week. Most importantly, we want to help. Remember, the sooner you make the courageous decision to call us, the more we can do to help you right your financial ship.

About the Homeownership Preservation Foundation
The Homeownership Preservation Foundation (HPF) is a Minneapolis-based 501(c)(3) nonprofit dedicated to reducing foreclosures and preserving homeownership for American homeowners. The Foundation was formed in September 2004 with a $20 million seed contribution from GMAC ResCap (Residential Capital, LLC), one of the nation's largest real estate finance companies. The Foundation partners with city, county and state governments; federal government agencies; community-based non-profit organizations; and mortgage companies to offer creative solutions to preserve homeownership. For more information about the Homeownership Preservation Foundation, please visit http://www.hpfonline.org/.

Best of Luck to You!

Moe

Founder & Homeowner Advocate
LoanSafe.org
LoanWorkout.org
951-271-6283 Phone
800-734-8819 Fax
Moe at LoanSafe.org Email

Predatory Lending is Going to Take a 67 Year Old Man's Home

Moe Bedard (LoanSafe.org) — Thu, 27 Sep 2007 13:56:04 -0500

This is a sad story and one many can maybe relate to. A client of mine that is 67 years old was seriously taken advantage of by predatory lending mortgage brokers over the years and he is actually my inspiration to start my website and the at http://www.loansafe.org/.

You see, my original intentions with for my blog was to give people free information and let them know they could do it all on their own and for the people who couldn't manage doing that, I was going to help people and in turn get paid for my services. I felt that if I help people avoid foreclosure then I am worth whatever I charge because I am an expert and I also need to pay my bills and feed my 4 kids.

Then Donald Bullis came along and his story touched me in a way where I couldn't sleep that night. I knew I had to help because he had no money and this isn't just a normal loan modification but a victim of predatory lending. What really struck a chord with me was that Don is a nice guy who doesn't want to sue everyone and attack them. He just wants to keep his home that he has worked so hard for.

He was refinanced into a negative amortization loan 3 times over 3 years and all loans had 3 year prepays netting the broker over $50,000 in commissions. The broker over stated his income by $5000 and forged a fake business on his application.

THIS IS A COMPLETE TRAVESTY OF JUSTICE AND WE CANNOT LET DON LOSE HIS HOME!

Unfortunately, there is no way for him to stop foreclosure. I have spoken to several attorneys and they said since it was a mortgage broker who is now out of business and most likely do not have a dime to their names. and they all tell me there is nothing Don can do. He is basically out of luck.

LENDERS ARE NOT LIABLE FOR A BROKERS FRAUDULENT ACTS!

Below is his letter:

Quote:

( Address to who)

The intent of this letter is to explain the position I find myself in, how I got there and what I could do to eliminate the problem.

I have a home loan with World Savings for $338,000, I am three payments due and ready to go into foreclosure. I am 67 years of age and on social security and my wife is on disability. Total income is $2300 per month.

About a year ago I did a refinance through a broker who was not doing me or World Savings any favor.
This loan was a ARM fixed for five years with a pre pay penalty I paid $3,000 to reduce the penalty to only one year I was lead to believe that the payment would be $1380 including tax and insurance, this would be a pick a payment plan which means that if money was tight I could pay a lesser amount, I had sticker shock when I received the payment coupon from World Savings the $1380 was the minimum payment. Nothing was explained to me about how the minimum payment worked, the loan balance goes up because the minimum
payment does not include interest which is added on. The broker told World Savings that my monthly income was $7,000 per month, how he could verify that is beyond me. I should never have qualified for this loan. I believed the broker and never did my math if I had I would have known something was not right but I never. We toped out our credit cards which was a bad idea. I had hopes of finding employment but had no luck what so ever.

To resolve this problem I check into refinancing but due to my income and a late payment nothing could be done. I am now checking into Government grants to see if there is anything I can qualify for, but that is very time consuming and I don't really know where to start any suggestions would be greatly appreciated

If and when my plan is to get current with World Savings and the next step would be to start with the credit card with the less amount and start paying it off as soon as possible and keep the others current, the next step would be to use the payment from the paid off credit card and add that amount to plus the payment to the next credit card until they are paid off. If I can find employment and not have the credit cards showing that they are over 50% of limit which has bad effects on my credit score I might look into refinancing to a fixed rate loan.

That is my story sad but true

Donald Bullis

As you can see, Don was taken advantage of and he needS help. I will keep everyone up to date on the progress to help him avoid foreclosure.

Thanks for contributing your story Don!

__________________
Moe

Founder
LoanSafe.org
LoanWorkout.org
951-271-6283 Phone

Example Hardship Letter to Stop Foreclosure

Moe Bedard (LoanSafe.org) — Fri, 21 Sep 2007 16:23:55 -0500

Many homeowners find it difficult to write a hardship letter to their lender, so I thought I would post some examples from my forum.

When attempting to stop foreclosure and apply for a loan modification with your lender, you will be dealing with your lenders employee. Their job is to protect the lender. Your job is to save your home and also make that lender's employee, your friend. :) Trust me, a friend in the loss mitigation department is a friend indeed.

Please feel free to change it around and insert your own twist. Remember the person reading it reads these all day, so don't be too lengthy and get to the point.

(Example Hardship Letter)

To Whom It May Concern:

I am writing this letter to explain my unfortunate set of circumstances that have caused us to become delinquent on our mortgage. We have done everything in our power to make ends meet but unfortunately we have fallen short and would like you to consider working with us to modify our loan. Our number one goal is to keep our home and we would really appreciate the opportunity to do that.

The main reason that caused us to be late is (insert reason here and don't be too lengthy and long winded) Soon after being late and our income not being nearly enough, we had fallen further and further behind. Now, it's to the point where we cannot afford to pay what is owed to (lender). It is our full intention to pay what we owe. But at this time we have exhausted all of our income and resources so we are turning to you for help.

Our situation has got better because (reason here) and we feel that a loan modification would benefit us both. We would appreciate if you can work with us to lower or delinquent amount owed and or payment so we can keep our home and also afford to make amends with your firm.

We truly hope that you will consider working with us and we are anxious to get this settled so we all can move on.

Sincerely and Respectfully,

Mr. & Mrs. ___________________
Signature_____________________
Loan # ______________________
Address______________________
Phone________________________

Hardship Letter Contributed by a Forum Member
September 7, 2007
To: Countrywide Mortgage account # 058989482

Re: Mortgage modification program

Due to the recent adjustment to the mortgage I currently have with your company, I am finding it very difficult to afford the new payment. I have a 3 year fixed rate which is now adjustable and is schedule to adjust again in Feb. 2008.

Considering my current income, there will be no way I can afford the increased payments come February. Hopefully there is way to renegotiate the terms of my current mortgage to avoid default or foreclosure on my home.

Is it possible to have my current adjustable rate mortgage converted to a fixed rate? If this is not possible can the next rate change be postponed to a future date to allow me to hopefully refinance. Any other solutions you could provide would be greatly appreciated.

I have had no problem making my payments for over three years now and do not want that to change. My mortgage was originally written by another company and bought by Countrywide. The original mortgage terms are terrible but it was the only loan I was qualified for at the time. I was assured that refinancing would be no problem but that turned out not to be true due to the downturn of the housing industry.

The main problem is that my property is now worth about 5-10% less than what I paid for it which is preventing me from being able to refinance. I was researching on the internet and came across the Fannie Mae Announcement #06-18 (Oct. 4th 2006) regarding the servicing of Conventional Mortgage Modifications.

I believe this addresses the situation I currently find myself in along with many other homeowners. Attached are recent pay stubs showing my current income.

thanks you for your time and consideration.

For more example harship letters, home loan help and assitance through the foreclosure process ,please join our one of a kind homeowner's forum where you can get free foreclosure help and get answers in this unique and interactive community that was created to assist people in an anonymous, yet open question format. Meet other homeowners that are going through the same thing and get the help you need from industry experts and foreclosure defense and mortgage law attorneys.

Click on the banner to enter the forum

Loan Modification Tips to Deal With Your Lender

Moe Bedard (LoanSafe.org) — Fri, 21 Sep 2007 07:07:23 -0500

A loan modification is an agreement that is negotiated with your current lender that changes the terms of your current loan. Lenders are willing to negotiate when borrowers are facing financial difficulties and can't obtain other financing alternatives. You must show the lender why it would be in the lender's best interest to agree to a workout arrangement. If convinced, a lender may be willing to reduce the loan interest rate, reduce monthly payment amounts or change other loan terms.

A loan modification generally occurs where the parties to a problem loan mutually agree to workout the problem by creating new and better loan terms. The hope is that the new loan will enable to the borrower to meet their obligations.

When applying for a loan modification, make a game plan on how exactly you are going to approach them. These people are trained in minimizing loss for their company and they get paid to by getting the most amount of money out of you as possible or declare that your case is un workable and foreclose on you. That is how they mitigate loss. If you understand this, then you'll know that you have to approach them and all conversations very carefully. Everything can and will be used against you.

Don't think for one second that they are there to help you save your home. If you do that then you'll just end up blowing up on whoever is handling your file and maybe blowing your chances of saving your home. It's a game of cards and their the dealers. You never know what card your going to get and this may be the biggest gamble of your life.

Have all your ducks is a row before you call and be in a good mood. Be prepared to be fake and nice.(even though you would like to tell them off). Make sure all your financials are together.

Oh yeah, don't talk with collections. If you are transfered to collections, be asked to be transferred to the loss mitigation department or home retention department. Don't give collections any of your personal information or tell them what you are trying to do. Just give them you social, loan number and address. If they try and badger you, tell them your lawyer is on the phone and he advised you not to tell them more than that. Trust me, it shuts them up every time. Get everyone's name, extension employee number. Take meticulous notes of all calls or record them and tell them you are recording them.

The trick with any bank and getting a work out done is learning to navigate their phone system so as to increase your chances of getting a live person. Over the years Ive learned some tricks that help, sometimes you hear options that you know will lead to a person like when it says "to speak to a representative press ___" but sometimes they don't give you these options (cricket wireless is the worst at this) so you have to think, what options WOULD get a live person. For example often anything that involves new clients signing up will get a live representative...cause they always want new business. You have to be a little savvy though, you cant just tell the sales guy you called them so you could get a warm body to answer the phone!

Once you get a live person, you want to be working your way up to a decision maker. This is sometimes harder to do for a homeowner than a 3rd party. Often with the homeowner they get stonewalled at the first level, and sadly the first tier in Loss Mitigation is really a glorified collections department. They are paid hourly employee's who have very little if not zero motivation to go the extra mile and help you get some needed comfort and relief while resolving your problem. Often they just compound the problem by being rude and demanding, telling people things like "just pay your bills". So its essential that you get beyond these people and to a specialist.

Sometimes to get to this point you have to put up with the hourly employee's through a process of filling out their forms and information. Providing them with items such as pay stubs, tax returns and a whole host of financial information. Once everything is provided, then some lenders will assign the file to someone higher up in the loss mitigation department.

The MOST crucial element to this whole process is your Budget. They will ask you for a detailed list of your monthly expenses. If its too tight, you may not get approved, if you have too much extra income you are going to have an outrageous payment plan.

The 2nd MOST important thing you can do is DO NOT SPEND YOUR HOUSE PAYMENTS. Sock away as much of that money each month as you can. Its crucial, heres why;

By saving up your payment for 2-3 months or more depending on the foreclosure time line in your state, you can not only have enough to put together a really nice plan with your lender, but also have some in the bank for a rainy day. Often payment plans with the bank can be pricey and very short terms, like 6 months total to repay what you fell behind on. The people ive worked with who took my advice to save up and keep some funds in the bank, were successful 100% of the time at keeping their home. Because they were prepared for life's curve balls. Even though they had fallen behind in the past, if they had an expense one month, they just pulled a little from the slush fund in the bank to help supplement their house payment that month.

If all else fails, seek out a third party to handle this for you. There are many non-profit and for profits that are very experienced in loan modifications and loan workouts.

Don't give up and fight to stop foreclosure and save your home!

Good Luck!

Moe

Founder & Homeowner Advocate
LoanSafe.org
LoanWorkout.org
951-271-6283 Phone
800-734-8819 Fax
Moe at LoanSafe.org Email