President Obama modification program helps 100,000 borrowers 

By Javier Zelaya
Jan 15, 2010  

Los Angeles, CA (Corporate Asset Management, LLC) -- With expectations for millions of foreclosures, lenders have approved more than 100,000 troubled mortgages for homeowners participating in an Obama administration mortgage-assistance program from trial three-month plans into permanent, more affordable loans, the Treasury Department said Friday.

So far, 66,000 borrowers have accepted the offer under the program, known as the Home Affordable Modification Program, or HAMP, according to a Treasury report.

"Treasury is committed to working with servicers and borrowers to sustain this improved pace," said Phyllis Caldwell, Treasury's Homeownership Preservation Office director.

That number is up from the program's December data, which showed that only 31,382 troubled mortgages converted from trial three-month plans into permanent programs. Specifically, 112,521 permanent modifications have been approved by loan servicers.

As part of the program, roughly 850,000 homeowners have their median monthly payment reduced by more than $500 a month.

According to the Treasury report, 902,620 trial three-month modifications have started since the program's inception, up from 759,058 last month. Also, 1.2 million modification offers have been extended to borrowers by the end of December, up from roughly 1 million offers in November.

Meanwhile, roughly 8 million to 13 million foreclosures are expected to take place over the next five years, according to the Congressional Oversight Panel for the $700 billion bank-bailout program.

A number of the major banks made major strides in making trial modifications permanent. Bank of America Corp. (BAC, Trade ) experienced a major improvement. It approved 3,183 permanent modifications by the end of December, up from 98 at the end of November. In addition, the company started 206,775 trial modifications, the report said, up from 158,462 in the previous period.

Citigroup Inc. (C, Trade ) approved 4,999 permanent modifications by the end of December, up from 271 in the previous period, according to the report. Citigroup started 119,097 three-month modifications under the plan by the end of December -- up from 103,478 in November.

Through the end of December, J.P. Morgan Chase & Co. (JPM, Trade ) had 7,139 trial modifications made permanent, up from 4,302 at the end of November. It had 156,359 three-month trial modifications started under the program as of the end of December, up from 143,027 started under the program at the end of November.

Wells Fargo & Co. (WFC, Trade ) has 126,413 trial modifications started, up from 104,808 trial modifications at the end of November and 6,423 permanent, up from 3,537 permanent modifications using the program in November.

As part of the program, mortgage servicers receive an up-front payment of $1,000 for each successful modification after completion of the trial period, and "pay for success" fees of up to $1,000 per year for three years, as long as the borrower remains current. Servicers that fail to meet their obligations could have incentive payments withheld.

Lenders also have provided thousands of modifications outside of the Obama program.

However, Henry Sommer, director at the National Association of Consumer Bankruptcy Attorneys in Philadelphia said that those modifications are generally less beneficial to the homeowner than modifications under the White House program. He added that he worries homeowners eligible for the HAMP program are being steered into less-favorable private modifications set up by lenders.

This was a great article published by CAMREO a corporate asset management company. Lenders have been doing more to help troubled home owners stay in their homes, but remember they are still overwhelmed. Your persitence and drive can make the difference on weather or not you get your modification approved and ultimately keep your home. Keep fighting, and please call us for any assistance along the way.

The following is an article that was written about our Do It Yourself Loan Modification Station, and the direct impact we have on peoplese lives. We are glad that we can be part of the right solution for so many of you, and want to thank you for your trust in our system. You can find this article at Earth Times or by following this link to the article. http://www.earthtimes.org/articles/show/a-do-it-yourself-loan,1117730.shtml .  



Mortgage Solutions helps bring Christmas cheer to elderly homeowners when they needed it the most! Mortgage Solutions helps all homeowners understand how a loan modification works and how they can do it for themselves.

SPRING HILL, FL, January 13, 2010 
-- Painful stories about homeowners losing their homes continue to haunt many American neighborhoods. Luckily, there have been a few who have received help in various forms, and these people managed to save their homes and continue living in them. One of the easiest and best ways to save one's home and continue living in your home is getting a Loan Modification approved by your bank.

However, this is not a piece of cake, or no homeowner behind on their mortgage payments would worry about foreclosure. This though, is something that can be taken care of as long as you know what to do, and do it right. Here's a great real life example.

The Perrini's had been living in their home for over 18 years before trouble struck. After having spent most of their adult lives in caring for their children, they found themselves riddled in debt, and in their sixties. To make matters worse, they found out that Mrs. Perrini was suffering from a life threatening illness.

With their mortgage payments to Wells Fargo getting to a point where it started to become a burden, they decided to take some action in the form of approaching their bank (Wells Fargo) for a loan modification program. While they did try getting help from attorneys and loan modification companies, to the Perrini's, was just plain unaffordable. They tried to go at it alone, but with the process being as complex as it is they found their initial several requests were denied.

This is when they decided to use Mortgage Solutions' Do it yourself Loan Modification. This package gave them information that guided them in what they needed to do in order to maximize the chances of their application being approved. Four months after they first bought the package, a message from the management at Wells Fargo informed them that their loan modification application had been approved.

The Christmas Cheer? This news reached them on Christmas Eve! This, the Perrini's said, was their very own "Christmas miracle." You can also see what other users of this system have to say about a Do It Yourself Loan Modification Package from Mortgage Solutions.

Steve Fingerman Vice President of Mortgage Solutions said "it is moments such as these that we work towards, and people should know that they have the option to save their homes through loan modification programs." He also added that "Home owners in financial trouble should know that using the services of companies and attorneys who charge steep fees is not the only option, especially when one has the option to do all the relevant paperwork professionally on one's own for a very nominal cost."

Mortgage Solutions' Do it yourself Loan Modification system takes you through the process in a step by step manner, taking important aspects like addressing your debt to income ratio, etc. Since incomplete or flawed documentation is a big factor when it comes to loan modification applications being rejected, this is also an aspect that this DIY Loan Modification system addresses. The other important thing that the system does is give a consumer the same type of legal documents that are being used by the Loan Modification Companies and Attorney's without the steep fees. More information about how this package can help you can be found check out Mortgage Solutions Loan Modification package.

Mortgage Solutions is a licensed Correspondent Lender based in Florida. The company was founded in 2004, when the homeowners crisis was at its peak, and has continued to help homeowners ever since. Their aim, according to the management, "is to try and get every loan modification application approved so that no homeowner who is willing to make an effort has to lose his/her home."

Mortgage Solutions Can Help You With A Do It Yourself Loan Modification By Preparing You A Perfect Bank Ready Loan Modification Package.

A Loan Modification is a permanent change in one or more of the terms of a mortgagor's loan, allows the loan to be reinstated, and results in a payment the mortgagor can afford.

Question 1: In utilizing the Loan Modification option to bring an asset current, can the mortgagee include all fees and corporate advances?

Answer: Mortgagee Letter 2008-21 states in part: Legal fees and related foreclosure costs for work actually completed and applicable to the current default episode may be capitalized into the modified principal balance.

Question 2: May a mortgagee perform an interior inspection of the property if they have concerns about property condition?

Answer: Yes, per Mortgagee Letter 2000-05, page 20, the mortgagee may conduct any review it deems necessary to verify that the property has no physical conditions which adversely impact the mortgagor's continued ability to support the modified mortgage payment.

Question 3: Can a mortgagee include late charges in the Loan Modification?

Answer: Mortgagee Letter 2008-21 states that accrued late charges should be waived by the mortgagee at the time of the Loan Modification.

Question 4: When utilizing a Loan Modification option, can a mortgagee capitalize an escrow advance for Homeowner's Association fees?

Answer: HUD Handbook 4330.1 REV-5, Paragraph 2-1, Section B, Escrow Obligations states: Mortgagees must also escrow funds for those items which, if not paid, would create liens on the property positioned ahead of the FHA-insured mortgage.

Question 5: Is there a new basis interest rate which mortgagees may assess when completing a Loan Modification?

Answer: Yes, Mortgagee Letter 2008-21 states that the new basis interest rate is 200 points above the monthly average yield on U.S. Treasury Securities, adjusted to a constant maturity of 10 years.

Question 6: Will HUD subordinate a Partial Claim, should a mortgagor subsequently default and qualify for a Loan Modification?

Answer: If a mortgagor subsequently defaults and qualifies for a Loan Modification, HUD will subordinate the Partial Claim.

Question 7: Are mortgagees required to perform an escrow analysis when completing a Loan Modification?

Answer: Yes, mortgagees are to perform a retroactive escrow analysis at the time the Loan Modification to ensure that the delinquent payments being capitalized reflect the actual escrow requirements required for those months capitalized.

Question 8: Is the mortgagor eligible for the upfront premium refund at payoff of a modified loan?

Answer: It depends upon when the closing date occurred. For assets closed:

After July 1, 1991 but before January 1, 2001, the 7-year unearned premium refund schedule shown in Mortgagee Letter 1994-1 remains in effect,

On or after January 1, 2001 that are subsequently refinanced, the 5-year refund schedule shown in the attachment of Mortgagee Letter 2000-46 applies, or

On or after December 8, 2004, refunds of upfront MIP are eliminated except, when the mortgagor refinances to another FHA insured mortgage. The refund schedule attached to Mortgagee Letter 2005-03 has been modified to a 3-year period.

Question 9: Can a mortgagee qualify an asset for the Loan Modification option when the mortgagor is unemployed, the spouse is employed, but the spouse name is not on the mortgage?

Answer: Based upon this scenario, the mortgagee should conduct a financial review of the household income and expenses to determine if surplus income is sufficient to meet the new modified mortgage payment, but insufficient to pay back the arrearage. Once this process has been completed the mortgagee should then consult with their legal counsel to determine if the asset is eligible for a Loan Modification since the spouse is not on the original mortgage.

The Mortgage Insurance that you paid on your FHA mortgage is an important feature of your HUD Insured loan. Please keep in mind that with a FHA mortgage the Mortgage Insurance Premium that you paid can be used with your lender to pay back any arrearages on your mortgage and help bring your loan current. If you have a HUD insured loan please make sure you bring the PMI into your negotiation process with your Bank. Do not expect your Bank to volunteer this information, sometimes the things that are in your best interest may conflict with the interest of your Bank. In these cases you must educate yourself as much as possible about all of the options you have available through the recent legislatures and governing bodies. We hope that you find the information we provide usefull and hope that it will help you save your home and get you the most effective Loan Modification possible. Please feel free to contact us if you have any other questions regarding HUD, Loan Modification, or any other Mortgage related questions.

A loan Modification is a negotiation between the borrower and thebank, it normally happens when a mortgage has become unaffordable for the home owner. There are many reasons why a mortgage can become unaffordable, some of the more common reasons include; job loss, curtailment of income, divorce, bankruptcy, over extended in debt, and of course an adjustable rate mortgage known as ARM.
During the real estate boom, many banks became aggressive in their marketing and pushed many loans that were not we suited for borrowers. These loans were being sold on Wall Street and broken up into other investment securities. The Banks originated and created exotic mortgage products to entice people who would not normally qualify for a loan to get a mortgage and buy a house. These loans were created for one thing and one thing only, it was to maximize the short term profit for the bank. None of these exotic mortgage were ever intended to perform and Banks had no regard for the borrowers ability to repay the loan. When home prices started to decline Home Owners found that they were quickly upside down on their mortgages. This meant that you now owe more money on the house than what it is worth. The decline in values also meant that many Home Owners could no longer refinance due to the value of the home declining. At the same theseExotic Mortgages were now adjusting, in many cases the payments on these Exotic Mortgages were doubling and sometimes tripling! This caused a massive wave of foreclosure filings as millions of home owners could no longer afford their mortgages.
In 2006 the Federal Government began to intervene in the financial system and started the bailout process to try to save the banks that ended up with these Exotic Mortgages. They have given billions of dollars in aid to struggling financial institutions and attempted to free up the credit markets that were frozen due to these exotic mortgages blowing up across the country. While the bailouts themselves did very little to help the average consumer, there were a few things introduced in 2007 and after that were designed to curtail the pace of foreclosures and save struggling Home Owners from losing their homes. The Federal Mortgage Modification Programs that have been introduced have helped thousands of home owners save their homes. The problem is that with the shear size of the Mortgage Meltdown, the banks are understaffed to handle the volume of requests they are receiving for Loan Modifications. The next problem is that the staff they have in under trained and many of the Loss Mitigation Departments have hired on people that in my opinion are no better suited for their job than a Gas Station Attendant. When asking for a Loan Modification it is important for you to realize who you are dealing with. Its generally someone who is under trained, over worked, under paid, and is trying to handle hundreds if not thousands of requests with little to no support from their employing Bank. Knowing this it should be clear that the paper work you give to Bank with your Loan Modification Request must be perfect. You have got to get your package as close to perfect as possible, because the slightest miscalculation or error in your documents can make the difference of getting a Mortgage Modification or being turned down. Remember to include such things as expenses that may not show up on your credit report, these items can include; Cell Phone Bills, Home Phone Bills, Utility Bills, Vehicle repair expenses, Church Tidings, and other various related expenses. You must clearly show your lender that you simply can not afford the current payments. Please note, that this is a double edge sword, since at the same time you must also show that with a Modification of Your Mortgage the monthly expenses will become affordable to you once again. Keep in mind that if you do not have enough income to afford your new Modified Mortgage and your old expenses you will not be eligible for a modification.
The Loan Modification Software available at www.myloanmodificationstation.com is designed to help you avoid costly mistakes that can seriously jeopardize your ability to obtain a Mortgage Modification. The system is designed to give you a perfect package ready to Submit to Your Bank. It will give you everything you need and will auto calculate and import all the necessary information to make sure you can review your income and expenses for accuracy to allow you to be certain that will be eligible for your Loan Modification Request. The professionals at Mortgage Solutions are also available to help guide you through out the process and make sure that your success is guaranteed. With a 100% Money Guaranty and a low cost of only $119.00 it is by far the best solutions for Loan Modifications available anywhere.

Steve Fingerman
Mortgage Solutions