Guaranteed Mortgage Loan Modifications

Between the $75 billion foreclosure relief plan and the $787 billion federal economic stimulus plan, the government is promising a range of programs aimed at getting help to new and current homeowners. But not everyone who needs help will get it. While some homeowners who owe more than their house is worth will get help, many of those who are most severely "under water" in their mortgages won't get bailed out. Here are some of the FREQUENTLY ASKED QUESTIONS regarding this program and other mortgage loan modification programs.

Homeowners who are behind on their mortgage payments or who are struggling to keep current may qualify for a mortgage loan modification under the Homeowner Affordability and Stability Plan. To qualify, the house must be your primary residence, your mortgage payment must be greater than 31 percent of your monthly gross income and your loan must not exceed current Fannie Mae lending limits.

First-time homebuyers are eligible for this credit. First-time buyers are defined as those who haven't owned a house for at least three years. Homeowners don't have to pay back this credit the way they had to with the $7,500 tax credit enacted last summer. However, homebuyers would have to repay the credit if they sold their home within three years of purchase. This program has been extended for 2010.

Homeowners can also get a tax credit up to $1,500 by making homes more energy efficient this year or next. Projects such as installing energy efficient windows, doors, furnaces or adding insulation qualify.

This is unknown with certainty at this time. However, the Obama administration is working with lawmakers to pass a mortgage relief bill that would allow bankruptcy judges to modify the terms of primary loans in judicial court. The lending industry is fighting this plan, arguing that it will make lending a risky proposition in the future. But with support mounting, efforts are focused primarily on limiting the scope of proposal, rather than blocking it completely.

The refinancing and loan modification programs started March 4, 2009. The first-time homebuyer tax credit is in effect from the first of the year through the end of November. The "green" home tax credit to energy-efficient improvements is in effect through 2010.

If you are interested in refinancing or applying for a mortgage loan modification, collect all necessary documents to give to your lender or a mortgage loan modification assistance company. These include your most recent pay stubs and/or other documents that show the income you receive, your most recent tax return, your second mortgage documentation (if you have one), payment on your credit cards if you carry a monthly balance and on all other loans like student loans and automobiles. Call us or use the Free Consultation form to contact us.

You must live in your house, condo, or co-op. Also, manufactured homes not attached to a foundation do not qualify. If you have abandoned your home or rented it to make your mortgage payments, you will not be eligible.

There are lenders that are offering homeowners a mortgage loan modification. However, many of these modifcations are short-term. Secondly, some of the modifications offered directly by the lender are not all that helpful even in the short run. They may simply bring current a homeowner that is delinquent and end up increasing the monthly payments for a time rather than decreasing them. The bank is negotiating what is best for them, not what is best for you.

When considering whether or not to engage mortgage loan modification assistance, ask yourself these questions:

  1. Will you know the legal forms that need to be filed and how to file them?

  2. Will you know whether or not the lender is offering you a good deal?

  3. Do you have the time, energy and patience it will take to deal directly with the lender?

If you cannot answer yes to these questions, you should strongly consider getting professional assistance. We emphasize professional assistance because many loan modification "companies" have sprung up only recently because the opportunity presented itself. Beware of scammers and non-guaranteed services.

Focused Financial Solutions will negotiate the best possible loan modification for you, not for the lender. We can:

  1.Stop you from losing your home, even if you are already in foreclosure proceedings.

  2.Get you out of your current loan in 30-90 days.

  3.Put you on the path to financial recovery by also addressing your credit.

  4. Get your mortgage balance back in line with the value of your home.

  5.Negotiate one or more of the following for you: a lower interest rate, principal balance, a longer term.