The Truth About Mortgage Modifications

More than 1 in 8 homeowners are upside-down on the mortgage and don't know what to do. The search for a solution can be filled with misinformation and fraud, and often adds more frustration to this difficult situation. If you or someone you know is among the many homeowners who owe more money on their home than it's worth, know that there are options available. You need the facts.

Being educated in today's shifting market is the most important safeguard you can take in preventing lost opportunities and avoiding scams. Your first step as a homeowner in trouble is understanding all your options, including a mortgage modification. Should you qualify, a mortgage modification is an ideal solution for you and your lender. The average foreclosure can cost a lender from 35-50% of the value of a property (or more), so keeping a borrower in their home is a better alternative for both parties. Find out if a mortgage modification is the right option for you and get back on track to a secure, stable financial future.

  MORTGAGE MODIFICATIONS

 A mortgage modification is a process through which your mortgage lender changes:

•       Your interest rate

•       Your principal balance (through a reduction)

•       Your loan terms (example: from an adjustable to a fixed rate)

•       Any or all of the above 

This process will often allow a borrower who can no longer afford their home at their current mortgage payment to stay in their property. A mortgage modification is ideal for homeowners experiencing a rate increase or a salary decrease, placing the mortgage payments just out of reach.

 What do I need to qualify for a mortgage modification?

According to the Obama administration's Making Home Affordable program's website (www.MakingHomeAffordable.gov       ), you will need the following information for your lender to consider a modification:

•        Information about your first mortgage, such as your monthly mortgage statement

•        Information about any second mortgage or home equity line of credit (HELOC) on the house

•        Account balances and minimum monthly payments due on all of your credit cards

•        Account balances and monthly payments on all other debts, such as student loans and car loans

•         Your most recent income tax return

•        Information about your savings and other assets

•        Information about the monthly gross (before tax) income of your household, including recent pay stubs if you receive them or documentation of income you receive from other sources

If applicable it may also be helpful to have a letter describing any circumstances that caused your income to be reduced or expenses to be increased (i.e. employment reduction, sudden illness, divorce, etc.)

 Who do I contact to qualify?

The first call you make should be to your lender. Have the information listed above ready to discuss with them, and call your customer service line to ask them what options you have available. Different lenders have different names for the department that handles these issues, such as:

•        Loss Mitigation Department

•        Mortgage Modification Department

•        H.O.P.E. Department

•        If Fannie Mae or Freddie Mac owns your mortgage, you may be eligible for a Home Affordable

•        Refinance. This will allow you to refinance your home and often lower your payments.

Therefore, you should start by visiting: www.MakingHomeAffordable.gov Also, check the list of HUD-approved counselors provided in this document for organizations approved to work with borrowers by the federal government's Hope Now Alliance.

 

AVOIDING FRAUD

 When considering a mortgage modification, beware of companies that advertise their ability to negotiate and lower your payments, and possibly your mortgage balance, for a commission or fee. According to the Federal Trade Commission, "People facing foreclosure should avoid any company or individual that requires a fee in advance, guarantees to stop a foreclosure or modify a loan, or advises the homeowner to stop paying the mortgage company." You should never have to pay upfront fees for this service.

The U.S. Department of Justice and U.S. Treasury Department also released a statement: "This administration is deeply committed not just to providing at-risk homeowners with assistance but also to cracking down on anyone who seeks to defraud them. Examples of possible signs of fraudulent activity, such as requiring that fees be paid before services are provided, are listed in the [advisory released by the Treasury.]" They also stress that none of the new programs announced by the Obama administration require any upfront fees.

Agents who charge a fee for a service they're not licensed or adequately trained to provide, and which the government has identified as fraudulent, cannot be tolerated. Let a trusted, educated agent guide you safely through your options. In addition, be very cautious as to the organization's affiliation. Many companies include key words like ‘Federal' or ‘Government' in their names, but are in no way affiliated with the government.

  

THE TRUTH ABOUT MORTGAGE MODIFICATIONS

 While mortgage modifications can be an ideal solution for homeowners who qualify, it is important to understand the current trends concerning mortgage modification success rates. According to the most recent MHA report, only 12% of eligible homeowners have started a modification. The provider of this report understands that to increase this statistic, more homeowners need to find out if they are eligible and apply.

Also, a mortgage modification is primarily for those who can almost make their payments each month, but not quite. If you or someone you know is one of the many homeowners facing certain financial hardships-such as unemployment, forced relocation or divorce-you are less likely to qualify. The current re-default rate on mortgage modifications is 50-60%. Find out the facts, apply for a solution, but have a contingency plan. It is important to explore all of your options, and an educated real estate agent can help.

  

HAVING A PLAN

 Setting goals and keeping updated records will streamline your process to success and recovery. It will also save you time, hassle and distress when making plans for your financial future.

If a mortgage modification isn't an option for you, a short sale might be. It's understandable if you've never heard of a short sale or don't know what one entails, but imperative that your agent is educated and experienced in this area.

 Solutions are out there to ease your financial strain. Be sure to take advantage of all the options available. You can take back control of your financial future. Get all the facts regarding your situation, let a qualified agent help you formulate a plan, and get back on the right track.

Robert Reid, Premier Real Estate

 

1102 NE 19th Court Portland, OR 97045, 17500 SE 25th Way Vancouver, WA 98683

____________________________________________________

SHORT SALE HELP

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REAL ESTATE RESOURCES

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• Find Out Your Home's Value

Everyone keeps saying this is a slow market, but.......

My favorite holiday tradition started completely by accident.

Fire Safety tips for this Holiday Season

Have you remembered to check your smoke and/or fire alarms for the winter season?  In Ontario you should have at least one on each floor.  Single level domiciles should have alarms near the kitchen and all sleeping areas (not bad advice no matter where you live).

Christmas Tree
Ensure that artificial trees are flame retardant.  If you are choosing a real tree, tap it on the ground to check for freshness, dropping needles indicate a dry and highly flammable tree.  Needles should be hard to pull from branches and should not break when bent between your fingers.

Fireplace
Before lighting a fire, ensure the flue is open and clean.  Remove any fire hazards around the fireplace (stockings, decorations etc).  Use seasoned firewood, ensure a screen is in front of the fireplace and never leave it unattended.

Decorations
Choose decorations that are non-conductive, non-combustible, and fire retardant.

Lights
In Canada, use CSA approved lights.  In the US, use appropriately approved lighting. Use lights appropriately, indoor and outdoor lights used indoors and outdoors respectively.  Check lights strings for broken or cracked sockets and for frayed or bare wires.  Turn off lights when you are going to sleep and when you leave the home.  Do not overload circuits, never string more than three sets of lights per extension cord.  Where possible consider switching to more energy efficient LED lighting.

Candles
Never leave burning candles unattended and keep them away from children and pets.  Ensure that all candles are placed in sturdy and safe holders and are safely away from curtains and other combustible items. 

Kitchen
Never leave your cooking unattended.  Avoid wearing loose clothing while cooking.  Keep a fire extinguisher handy and have an operational smoke alarm in the vicinity.

More information available:
Holiday Fire Safety Tips
Christmas Tree Fire Hazards
Christmas Fire Safety Tips

... any other suggestions?

Chris Smith CSSBB
          Sales Representative

            My Website

  ph: 1.888.936.4216

Prudential
Ronan Realty Brokerage

EOP Real Estate, LLC is my new home

Heating, Air Conditioning and Carpet May be HAZARDOUS TO YOUR HEALTH....

  Most Americans spend about 90 percent of their time indoors, where they are repeatedly exposed to indoor allergens and airborne particles that can lead to respiratory symptoms and conditions.

It has been said that the indoor air quality of an average home is worse than the outside environment!

  According to experts at the American College of Allergy, Asthma and Immunology (ACAAI) and the American Academy of Allergy,Asthma and Immunology(AAAAI)

 

      

Damp environments, poorly maintained heating and air-conditioning systems and carpeting...

 ...may contribute to poor indoor air quality.

 

Damp Buildings
  Since every home's indoor air is filled with a combination of molds, air pathogens, volatile organic compounds, dust mites; it is impossible to view it as a one size fits all. There are simply too many variables.

 But the one thing they all seem to have in common is Water.

 Wet. Moisture. Damp. Humid.

" If there were just two simple things I could do to really fix a building, it would be to change the relative humidity and any water incursion" said Matthew Snow, CIEC, CMRS, CRMI, RMS, CBST Building Scientist and Executive Vice President of Turtle Clan Environment Testing, Inc. "Seeking out and repairing the source is key. Moisture leads to conditions that are conducive to dust mites and mold, as well as bacteria, yeast and many other living organisms."

Snow pointed to dust mites and mold as particularly worrisome.

      A damp building with high humidity may lead to increased levels of dust mites and mold, leading to increased allergic respiratory symptoms, as well as the worsening of Asthma.     

                                       

It is a vicious cycle!

And even if someone is not allergic, molds may produce mycotoxins and microbial volatile organic compounds (MVOCs) that smell bad

.....and may cause respiratory irritation, and Dermatitis

Nearly half of all young people with asthma are allergic to dust mites; aproximately 10 percent of the population is allergic to dust mites.

ALWAYS REMEMBER......Mold requires moisture to grow.

 It takes only 60% relative humidity to have a very significant mold colonization inside your home within 24-48 hours.

 

Indoor Breathing Environment

Although there are many culprits that negatively affect indoor air quality, poorly maintained air-conditioning and carpeting are among the most problematic.

             

A major source of microbial allergens is a poorly maintained heating and air-conditioning( HVAC) system,

According to Snow, up to 30 percent of the air inside a home can come from the attic, parking garage or basement.

One study supported by the EPA found that 75 percent of homes...

had carbon monoxide from the garage inside of the home.

It is pretty disgusting to think that we are being entombed in airtight /under ventilated toxic coffins!

    Thankfully there is a huge interest in greening up construction with sustainable building products and materials

                                  

Much like air conditioning systems, carpeting often harbors allergens, including dust mites and molds.

    

Organisms and particles that become airborne eventually settle in carpeting turning it into a virtual Petrie dish.

                                  

 In damp environments, carpeting provides an ideal environment for mold growth since the padding is a lovely tasty treat!

    Many schools who do not follow Healthy Schools practices, shampoo their carpeting right before school starts at the end of summer when it's humid outside.

There couldn't be a more inopportune time!

Making a Healthier Indoor Environment

To improve indoor air quality there are several construction practices that, when done right, can make a significant difference.

Once built, maintenance becomes key.

 Matthew Snow offers the following advice for home owners' on making their Indoor Environment Healthier:

·  Keep the HVAC system clean. Use an air filter that kills particulates instead of just trapping them.

·  Keep roof drainage at least 6 feet away from foundation

·  Maintain all plumbing and fixtures in good working order. In high humidity areas, wrapping pipes with insulation will prevent excessive water dripping.

·  Have the HVAC system and ductwork inspected and/ or cleaned yearly by an ASHRAE or NADCA Certified Contractor. These should also be wrapped in insulation in high humidity areas.

·  Make cerain there is proper roof ventilation. Gable

or roof ridge vents are ideal.

·  Make certain all kitchen and especially bathroom exhaust ventilation is vented to the outside. NOT the attic!!

·  Do not have any wall- to wall carpeting in any buildings or homes where humidity cannot be controlled!! You are just asking for trouble! If you must, have area rugs that can be removed yearly and taken outside to be cleaned like in the old time days. If you cannot replace carpet, vacuum thoroughly, carefully and methodically so you don't stir dust into the air. Use a vacuum with a HEPA filter or cyclonic vacuum.

·  Prevent mold and all damp building related contamination at bay by dehumidifying the basement. In unfinished basements, humidity should be kept lower than 50-65% percent. Make sure you do your research before buying an air filtration or dehumidifier since not all are created equally!

·   Have basements checked yearly for Radon.

 

 

Ryan Homes Back in Oak Creek Club

8 Myths of Staging to Sell - Busted.

Home staging (or property styling as it's commonly known as on the Australian property scene) is really an art, not a science. One of the many things a professional home stager understands is that it's the house that's up for sale, not the home owner's bread baking ability or taste in music. So, from the sublime to the rediculous - here's 8 myths of staging to sell - busted!

1. Buyers can see past my stuff
No - they can't. 95% of house hunters shop with a 'what you see is what you get' eye. You'll be maximising your chances of a better and quicker sale if you take the time to clean out, clean up and keep your look simple.

2. Baking bread, brewing fresh coffee and playing soft music will make a buyer fall in love with my house.
Maybe once upon a time this was true - but most would-be buyers are onto that old trick. It's more likely to trigger alarm bells, with many wondering what it is you're trying to hide. Your buyers will be happy with a place that looks and smells clean.

3. I'll need to clear everything out to help buyers see themselves living here.
This is only partly true. Wall to wall family photos are distracting, as is your porcelain rooster collection. These things are best put away. But don't go overboard, otherwise you'll end up with a look that feels cold and sterile.

4. If it's an original feature - it adds value.
Sometimes yes - but often no. Generally a property built less than 50 years ago without being updated is more likely to appear dated, rather than classic.

5. My place isn't worth staging.
All homes are worth taking the time to present in a positive light to buyers. The trick to knowing where to start and what to do is in having a good idea of what buyers in your target market will expect, along with learning more about what competing properties in your area are offering.

6. Empty rooms look bigger.                                                      

This is rarely the case. Buyers will always prefer to see how a room is used and what will fit in it, rather than be left to guess. Very large rooms can also be too intimidating for some. Even borrowed furniture can help buyers get an idea of scale and give the eye something of interest to focus on.

7. Converting a bedroom into a home gym won't be a problem.
Bedrooms are one of the most valuable commodities of the 'for sale' property. Having a home gym set up in a bedroom will prompt buyers to wonder why that is. I remember once looking at a house where this was the case. When I came across the bedroom with the gym in it, I immediately began to question if a bed would even fit. Always give the rooms in your house a purpose.

8. No need to worry about wardrobes and cupboards.
Home storage is a big deal to most buyers and is surprisingly valuable. Prospective buyers will open storage cupboards in kitchens and bathrooms, so keep them tidy. Keep only what you're using on a daily or weekly basis, and pack the rest away ready for the move.

Have you got a staging myth you'd like busted? Share them with me here.

 

Donna Ross

Great Impressions Real Estate Staging

"I love helping Sydney home owners and real estate agents catch the eye of choosy buyers with their 'for sale' listings, with fast, simple and inexpensive decorating fixes."

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