NAPA REAL ESTATE-MODIFYING MY MORTGAGE

By
Real Estate Agent with Sellstate Next Gen Realty BRE #01469185

NAPA REAL ESTATE-MODIFYING MY MORTGAGE 

Due to recent economic events, many find that they are having difficulty keeping up with their current mortgage payments.  Given the fact that many will soon see low or no interest rate mortgages adjust up, they are knowledgeable that they will not be able to afford their mortgage payment.

Enter the loan modification.  LOOK OUT!!!!  A loan modification promises under the HAMP or HAFA programs to lower your monthly payment to one that meets your current economic situation.  First ask yourself, why would my bank really want to help me?  Most would say, because they do not want me to foreclose, they get nothing.    Banks know how to protect their investments; they most likely have insurance that you are unaware of.

A loan modification sounds like a good idea.  So did that adjustable arm or no interest loan or that stated income loan.   A stated income loan is where you work at Mc Donald's and make $150K a year as the head French fryer.  Most were just too good to be true. 

Okay, so let's say you said you made $150K when you really only made $30K.  So now you need to do a loan mod.  You contact your bank and they request that you send in your financial documents to show your current situation.  And oh yeah, please sign this IRS form 4506T so we can access to your tax returns please.   You send in all the forms along with 4506T.  Now your bank can go back to your tax records of the time you applied for the loan and see that when you made.  You said you made $30k for the IRS, but you put that you made $150K on your Uniform Mortgage Application (Form 1003). 

YOU HAVE COMMITTED MORTGAGE FRAUD AND YOU HAVE GRANTED THEM ACCESS TO

THE FORMS THEY NEED TO PROSECUTE YOU.

As soon as your lender discovers a false statement, it can call the loan balance due.  If you are unable to repay the loan in full, the lender can try to seize your property.  Additionally, mortgage loan fraud is a federal crime.  There is a chance that you could be prosecuted, and if you are convicted the consequences are harsh.  Penalties can include fines and jail time.

Contact me for more information on how I can help.

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Topic:
Home Selling
Location:
California Napa County Napa
Tags:
napa real estate
napa real estate market
napa realtor
napa loan modification
napa reos
napa short sale

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Rainer
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Kevin Dwyer
Sellstate Next Generation - San Diego, CA

Great advice Nicole. People need to be aware if they are going to try and modify what they are getting into.

 

May 25, 2010 03:30 AM #1
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Rainer
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Nicole Monary

Nicole Knows San Diego Neighborhoods
Let's Make an Impact in Our San Diego
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