If you are a homeowner who is dancing on thin ice, you may be looking at what others are doing to save their homes, and finding that many homeowners are modifying their mortgages. A mortgage or loan modification may not always result in thousands of dollars in principal being reduced, but it could mean a lower interest rate, an extension of the length of the loan (changing a 30 year loan to a 40 year term to reduce payments) or converting an adjustable rate loan to a low fixed rate loan. The … (0 comments)
loan mods: Three Reasons why Loan Mods Cost So Much
- 06/10/09 09:08 AM
Many homeowners interested in reducing their monthly payments are turning to their trusted real estate agent, lawyer or mortgage broker to help them modify the terms of their mortgages and won't blink an eye when learning that the average loan mod fee is between $2,495 -$8,500. (Actually, the fee in California may be even higher - the maximum allowable fee is 10 percent of the loan balance.) Hold on a minute. If you stop to think about it, ten percent of the loan balance is a lot of money! If the loan balance is $500,000, for example, ten percent is $50,000! That's a lot of money! So … (0 comments)
loan mods: The Making Homes Affordable Program
- 05/27/09 08:19 AM
One of the things you’ll find when doing the Making Homes Affordable plan for homeowners is that you’ll get a letter back from the bank stating how much they will want the homeowner to pay on a “trial” basis. Sometimes the lender returns a three month “Forbearance Agreement”, while on other occasions it’s just called a “trial” period. Recently, for example, a client received a letter from his lender stating that the buyer was to make a payment each month in the form of certified funds in the amount of $1,045 per month – which is about half of what he … (0 comments)
Doing the Mortgage Modification Two-Step by Bob Boog;)
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