Great information Ann, I heard on Ralph Roberts radio talk show! Good job educating the people.......... the main thing everyone should be focusing on, "is keeping the homeowner in the home" - so many of my clients "just want out!!" they are sick of struggling, that makes it harder to get them to listen. Most of them just want out! They would rather walk away than get into the hastle of "loan modifications!!" keep trying, we need people like you!
Thank you Ralph Roberts and everyone else on talk radio and television who are educating the consumer and enabling loan modification to help this nation rise from its knees and stand up.
I was recently a guest speaker on "keepmyhouse.com" radio show: an informative talk radio show which discusses the various ways of KEEPING THE HOMEOWNER IN THEIR HOME. We need to stop the short sales and the foreclosures in America, before we can ALL recover. It isn't just about helping people who may have made a bad home purchase decision and/or loan decision. It's about keeping the homeowner in the home so they will spend money on goods and services to keep the entire economy moving along. We all WIN. It's a win-win! If we do not help the homeowner in trouble, we will continue to see unemployment rise, further home foreclosures, a further slowing economy.
To re-cap what I discussed on the show: What is a short refinance?: It's a loan reduction/forgiveness of a portion of the debt on the current loan. The consumer is then able to refinance the remaining balance into a new loan with a new lender. Thus, saving on monthly payments and over the life of the loan. To qualify, the following must exist:
1) Home value is less than what is owed on the property;
2) Consumer has suffered a hardship, i.e. loss of job, medical reason, adjustable rate mortgage;
3) Consumer must demonstrate the ability to repay the new loan: income, good credit history (no lates on the mortgage), assets (reserves), ratios that are reasonable (31%: debt to income)
4) Find a lender who is willing to refinance the remaining balance.
Short refinances can be accomplished by working directly with your lender OR contacting a local HUD office for assistance with your lender OR paying a loan modification service with experience and strong credentials.
If a short refinance can not be accomplished, a loan modification is the next best choice to be able to KEEP THE HOMEOWNER IN THEIR HOME. This is the ultimate goal!