Never use a private foreclosure prevention agent or loan modifier if they ask for advance fees to be paid.
See my articles ~
Never use a private foreclosure prevention or loan modifier agent who advertises on television or radio, because many of these will be scammers.
The loan modification business has attracted some bad guy deal makers. It's good that some are being prosecuted by district attorneys for law violations, and others will have their real estate licenses suspended.
Consider that ~ Loan mod may be better than selling (click here). ~ article by Bernice Ross.
For loan modification, start with your lender and ask for the loss mitigation department, not customer service. Find an online mortgage application, print it, and complete each item, using your loan numbers, credit-card numbers, addresses of property owned, plus a list of all other assets, and keep it confidential. Use your own bank account numbers, W-2 forms or other income tax documentation, and property tax data. If self-employed, get a current profit and loss statement for your business.
For other information about loan modification process, visit the US Govt and Federal Deposit Insurance Corporation loan mod site - FDIC site.
Before making a decision about asking for loan modification, check with your accountant or tax attorney to determine how that would effect your personal income tax status.
- If you refinanced or placed a second (or third) mortgage on the property, you may be subject to "imputed income."
- If you refinanced your home to pay off your car and credit-card debt and the lender relieves you of the duty to pay that money back, the IRS views that as taxable (imputed) income.
If you do not qualify or decide against loan modification and need to sell your property, always contact an experienced REALTOR who has local knowledge about the markets and short sales. Interview the REALTOR and ask questions about the process and tell him or her what you want and expect. Be prepared for the REALTOR to tell you what he or she wants and expects from you as the client.
Best wishes to you through this decision making and process.
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Free Local Orange County Information ~ Foreclosure Prevention help available at non-profit agencies.
For the Obama administration's mortgage modification and refinancing programs, contact a local HUD-Approved Housing Counseling Agency, and apply for help in working with their mortgage servicer.
Borrowers can also check to see whether they qualify for a loan modification and refinance under the Obama plan and apply online at www.makinghomeaffordable.org for help from their mortgage servicer.
Visit the Orange County Home Ownership Preservation Collaborative for a list of local housing counseling resources and events at www.ochopc.org.
See the U.S. Dept. of Housing and Urban Development's website at www.hud.gov.
Local Orange County HUD-Approved Agencies include Community Partners of the Orange County Association of Realtors:
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Harrison K. Long, Explore Group, Coldwell Banker Previews, Irvine, CA.
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I am a bit confused about these loan modifications.
I missed my July mortgage payment because I had an unexpected home repair and unexpected auto repair. This is the first payment I've missed in TEN YEARS. I called my mortgage company and told them I would make double payments in August - they informed me that I would need to pay the July late fee, but didn't seem too excited about it.
Later, I receive a Fed-Ex packaged letter for which I had to sign - it was from a 3rd party offering me a reduced payment plan for six months. I forwarded the letter to a mortgage lender friend of mine, and she told me to throw it away.
How did this third party know I was behind on my mortgage and why would they offer this when I was only one month behind?