Sacramento Area Short Sales & Loan Modification Help. Helping Homeowners in Distress

Only 1 in 4 Homeowners applying for a loan modification will have their application approved. Let us help you increase your chances of receiving a loan modification with the best possible rate and terms.

THE LOAN MODIFICATION PROCESS

Most homeowners are behind on their payments when they attempt to apply for a loan modification. However it is important to note homeowners do not have to be behind to receive a loan modification.

Talk with the Right Person
When you first get behind on your payments, a customer service rep or a person in the collections department will contact you about the reason you are behind on your payment, when you can make a payment and the consequences of missing another payment.

These are not the folks to talk to regarding a loan modification.

Many times they will ask for your financial information i.e. your gross and net income, your expenses, how much money you have in the bank, information about your assets, etc. Do not give your financial information to your lender until you have calculated the information on a worksheet.

This is the most important step in the process. You need to present your financial information to your lender in the best possible terms that match your loan's modification guidelines.

Negotiations
The loan modification process is a negotiation between you and your lender. To negotiate the best possible modification terms you need to know what your lender can and cannot offer you.

One of the advantages of working with an experienced loan modification company is we will know or find out your lender's modification guidelines first and then tailor your financial information accordingly.

Always take notes of each person's name, phone extension, the time you talked with them and the subject of your discussion. When you fax documents always note the number of pages and time. Good record keeping is essential.

Strategy is Key
When applying for a loan modification, you need a well thought out game plan to have any chance of a successful negotiation.

The representative at your lender is trained to minimize losses and extract the maximum amount of money and the best possible terms out of you. If you understand this, then you know you must be prepared, your workout plan must be documented and you must be very careful in what you say and how you say it.

Paperwork
Every lender has a workout package that must be filled out completely. Not providing all the documentation your lender requests is a sure-fire way to get your workout package stonewalled or denied. Another advantage of using a knowledgeable third party is that they may suggest inclusion of documentation that may not be requested by your lender but can have a positive impact on your negotiations.

The crucial element to this whole process is your Budget. Your budget will show a detailed account of your monthly expenses and income. If your budget looks too tight you may not get approved. If your budget shows too much extra income you can bet the modification may be denied or the terms will much higher than they could have been.

The last thing to remember is you only get one chance. Once you submit your proposal and documentation there's no changing stories, recalculating budgets or coming up with new reasons why you got behind in the first place.

Our 5 years of experience and working relationships with all the major banks and servicing companies will give you the advantage you need. If you want further advice call us, will be more than happy to discuss your situation and possible solutions at no charge.

LOAN MODIFICATION PROGRAMS

HOME AFFORDABLE MODIFICATION PROGRAM (HAMP)
Making Home Affordable is a key part of the Obama Administration's effort to help homeowners avoid foreclosure. The Home Affordable Modification Program was designed to help as many as 3 to 4 million financially struggling homeowners avoid foreclosure. But as of October 2011 the number is less than 800,000.

You may be eligible to apply if you meet all of the following:
1) You occupy the house as your primary residence.
2) You obtained your mortgage on or before January 1, 2009.
3) You have a mortgage payment that is more than 31 percent of your monthly gross (pre-tax) income.
4) You owe up to $729,750 on your home.
5) You have a financial hardship and are either delinquent or in danger of falling behind.
6) You have sufficient, documented income to support the modified payment.
7) You must not have been convicted within the last 10 years of felony larceny, theft, fraud or forgery, money laundering or
tax evasion, in connection with a mortgage or real estate transaction.

If you are having a tough time making your mortgage payments for reasons not related to unemployment, you may qualify for HAMP. HAMP lowers your monthly mortgage payment to 31 percent of your verified monthly gross (pre-tax) income to make your payments more affordable. The typical HAMP modification results in a 40 percent drop in a monthly mortgage payment. Eighteen percent of HAMP homeowners reduce their payments by $1,000 or more.

You do not have to be behind on your mortgage payments to qualify. If you're struggling now, or believe it will soon be difficult for you to make your mortgage payments on time ("imminent default"), you may qualify under the Home Affordable Modification Program. As a homeowner, you may find yourself in this situation because of a significant increase in your mortgage payment, a significant reduction in your household income, or some other hardship that makes it difficult to pay your mortgage. You will be required to document your income and expenses and provide evidence of the financial hardship.

Your credit score be affected by accepting a trial period plan or loan modification. Your loan will be reported as paying under a partial payment plan during the trial plan, and as modified after the final modification agreement.

PRINCIPAL REDUCTION ALTERNATIVE (PRA)
PRA was designed to help homeowners whose homes are worth significantly less than they owe by encouraging servicers and investors to reduce the amount you owe on your home.

You may be eligible for PRA if:

Your mortgage is not owned or guaranteed by Fannie Mae or Freddie Mac.
You owe more than your home is worth.
You live in the home carrying the mortgage you want to modify.
You obtained your mortgage on or before January 1, 2009.
Your mortgage payment is more than 31 percent of your gross (pre-tax) monthly income.
You owe up to $729,750 on your 1st mortgage.
You have a financial hardship and are either delinquent or in danger of falling behind.
You have sufficient, documented income to support the modified payment.
You must not have been convicted within the last 10 years of felony larceny, theft, fraud or forgery, money laundering or tax evasion, in connection with a mortgage or real estate transaction.

Program Availability
More than 100 HAMP participating servicers are required to evaluate homeowners for principal reduction. Participating servicers are required to develop written standards for PRA application. The largest servicers include Bank of America, CitiMortgage, JP Morgan Chase, and Wells Fargo.

Program Effective Date
Effective Oct. 1, 2010 – Dec. 31, 2012.

Comment:
The median loan-to-value ratio on modifications that went through principal reduction was 158%. After the workout was complete, the borrower held an LTV of 115%, meaning he or she owed 15% more on the mortgage than the home was worth rather than being 58% underwater.

The average amount reduced is more than $65,000 or 31% of the unpaid principal balance. Through PRA, the Treasury pays investors for every dollar of principal forgiven on a sliding scale depending on how far underwater the borrower is.

LENDER IN-HOUSE MODIFICATION PROGRAMS
If you don't qualify for the Making Home Affordable modification program you may be eligible for your lender's or servicing company's in-house modification program. Lender's in-house modification programs are usually more flexible than the Making Home Affordable program especially in regards to gross income and debt to income ratios.

In-house loan modification programs include lowering the interest on your loan for 3 to 5 years or for the life of the loan, extending your loan for a longer period i.e. 30 to 40 years, adding past due property tax to the balance of the loan or extending the term to pay past due property tax up to 5 years, forgiving the past due amount and only in 10% of the cases reducing the principle balance.

PARTIAL CLAIM (FHA loans only)
If you have an FHA Loan, and can document temporary financial hardship, we can negotiate with your lender for a Partial Claim.

We can help you get a one-time interest-free loan from your mortgage guarantor to bring your account current. You may be allowed to wait several years before repaying this loan. You qualify for an FHA partial claim if:

Your loan is between 4 and 12 months delinquent
You are able to begin making full mortgage payments again
The property is your primary residence

When your lender files a partial claim, HUD will pay your lender the amount necessary to bring your mortgage current. You must sign a promissory note, and a lien will be placed on your property until the promissory note is paid in full.

The promissory note is interest-free and is due when you pay off the first mortgage or when you sell the property.

LOAN FORBEARANCE
This plan works for borrowers who are experiencing a temporary hardship, such as a sudden living expense increase or income loss.

Your lender may allow you to reduce or suspend payments for a short period of time and then agree to another option to bring your loan current. A forbearance option is often combined with a reinstatement plan when you know you will have enough money to bring the account current at a specific time. The money might come from a hiring bonus, investment, insurance settlement, or tax refund.

We will negotiate with your lender to explain why a forbearance plan is an applicable solution which will allow you time to get back on your feet, or sell your property.

KEEP YOUR HOME CALIFORNIA
The California Housing Finance Agency established the four Keep Your Home programs using money from the Treasury Department's $7.6 billion Hardest Hit Fund. California received $2 billion from the Treasury's Hardest Hit Fund to help homeowners avoid foreclosure and keep their homes.

The “Keep Your Home California” program assists borrowers with modifications, unemployment funds, relocation assistance and even principal reductions if homeowners meet specific criteria

New Changes to the “Keep Your Home California” program.

Borrower's can now qualify even if they have a second home.
Allowing borrowers to take advantage of principal reduction offers even if they completed a cash-out refinance in the past.
Increased the amount of unemployment assistance qualified borrowers would receive and how long they could get it. Out-of-work homeowners can receive up to $3,000 in mortgage and tax assistance per month for up to nine months, an increase from six months before the change.
Borrowers can also get $20,000 through a reinstatement program to use for past-due mortgage payments, up from $15,000.

In order to qualify for the programs, borrowers qualify as a low-to-moderate income household and the borrower's servicer must participate. CalHFA says nearly 50 mortgage servicers now participate in at least one of the four programs. But only 11 servicers participate in the principal reduction program that requires the bank to match each dollar the agency removes from the loan.

Currently all Fannie Mae and Freddie Mac loans are still excluded.

HOME AFFORDABLE REFINANCE PROGRAM (HARP)
If you are current on your mortgage and have been unable to obtain a traditional refinance because the value of your home has declined, you may be eligible to refinance through HARP. HARP is designed to help you refinance into a new affordable, more stable mortgage. The HARP loan is a new loan and will require a loan application and underwriting process. Loan refinance fees will apply.

Eligibility - You may be eligible to apply if you meet all of the following:

You have a mortgage owned or guaranteed by Fannie Mae or Freddie Mac.
You do not have an FHA, VA or USDA loan.
You are current on your mortgage payments and have not been more than 30 days late making a payment over the last year.
The refinance will improve the long-term affordability or stability of your mortgage.
You have the ability to make the new payments.

Program Availability
The HARP program is offered by many servicers. Homeowners should check with their mortgage servicer (the company to which homeowners make their mortgage payments) to determine if they are participating in HARP. If their mortgage servicer is not participating, the homeowner may contact other lenders that participate in HARP to determine if they are eligible for a refinance.

Steps to HARP Refinance

Determine whether your mortgage is owned or guaranteed by Fannie Mae or Freddie Mac.
Contact your current mortgage servicer or another that is approved by Fannie Mae or Freddie Mac to inquire about HARP.
Compare rates and costs with additional mortgage companies to ensure best refinance terms.

Why California Homeowners Hire Us:

We have more experience. For over 6 years we've been helping California homeowners modify their loans and lower their monthly payments.
We know how each lender works. We've worked with almost every lender and service company there is, the majority of them on a daily basis.
We understand the situation from both borrower's and lender's point of view and work to mediate a successful solution for all parties.
You don't have to worry about something going wrong. We have the experience and knowledge to guide you through the process.
We will address your concerns and worries throughout the process and update you on a weekly basis.
We position your case to take advantage of the best possible terms your lender can offer.
We keep you updated throughout the process. Modifications take anywhere from 30 to 90 days.
We don't take NO for an answer. We demand your lender offer a modification that's doable and affordable.
Even after you've signed your modification documents we make sure your lender implements your modification correctly.
You can call us anytime. We're available from 9:00 am to 8:00 pm Monday to Friday and Saturday from 9:00 am to 3:00 pm PST.

No Upfront Fees
For the Month of December Only we've lowered our loan modification fee to $595.00. Our goal is to work with as many California homeowners as we can this month to help them keep their homes and negotiate payments they can afford.

Let us be your Advocate.
We are Licensed Real Estate Professionals with the experience and knowledge of the lending industry to resolve your situation in the most favorable terms possible.

Although lenders in most cases do not want to foreclose on your home, you may be experiencing frustration in dealing with their bureaucracy and having your concerns and questions addressed in a professional and competent manner.

A recent Freddie Mac, Roper survey of delinquent borrowers found nearly two-thirds were unaware of their workout options. Why? Because their lender didn't bother to inform them.

In many cases, borrowers end up agreeing to a workout plan, far less favorable than otherwise possible, due to a lack of experience and knowledge in negotiating with lenders.

Warning: Do Not Under Any Circumstances Add Anyone to the Title of Your Property, Who Promises to Stop Your Home from Foreclosure.
Call Us First for Free Advice.

IMPORTANT NOTICE: This site is not associated with the government, and our service is not approved by the government or your lender. Even if you accept this offer and use our service, your lender may not agree to change your loan. If you stop paying your mortgage, you could lose your home and damage your credit rating.

Disclaimer - All information is provided for informational purposes only and is Not legal advice, consult an attorney or financial expert for legal advice. This is general information and is not intended to provide advice on any specific question or transaction. Parties to any real estate transaction should seek competent legal and/or tax counsel to determine the legal, credit and tax consequences of buying or selling a home. Listing your home for sale and attempting to do a California Short Sale is a possible solution to avoiding foreclosure but not a guarantee that your lender won't foreclose or pursue other means of collecting the unpaid debt between what you owe and what the home may sell for.