San Diego Bank Loan Modification Help in California Choose Homestart A+ BBB Foreclosure Services

To Learn More Please VisitThe loan modification process begins with
HOMEstart Explains Obama's Loan Modification Planconsultation with your experienced HOMEstart loan
Introduction. As part of Obama's 2009 economicmodification specialist. Your loan modification
recovery package, the President has introduced aconsultant will discuss with you the financial
plan to rescue and revive the troubled housinghardships you're facing and determine if you are a
market. The new plan is called the Homeownergood candidate to receive a mortgage loan
Affordability and Stability Plan (HASP), whichmodification. After HOMEstart pre-qualifies you for
describes Obama's intents to modify distresseda loan modification, there will be some essential
mortgages, keeping struggling borrowers in theirpaperwork to get to the loan modification process
homes with the intent to help stop rapidly decliningunderway. The loan modification process will
property values resulting from surrounding homesrequire:
entering foreclosure. Obama is dedicating $75 billion* Proof of income.
to the HASP and below are some key details.* Last 4 monthly bank statements.
HASP focuses on reducing mortgage payments* Hardship letter discussing your current or future
since it argues homeowners will continue to staysituation.
in their homes, despite declining home values, as* All inclusive monthly expense sheet.
long as the borrower is able to afford their* Most recent mortgage statement.
monthly mortgage payments during the poor* Past two years of W2 forms and tax returns.
economic climate. Many economists agree thatOnce the paperwork is complete, your loan
foreclosures result from homeowners simplymodification file enters negotiations. At this time
being unable to afford high monthly mortgageyour loan modification file will contain all the
payments versus not being able to pay at all.information your negotiator needs to create an
Obama's plan requires major lenders and banks toagreement with your lender to modify your
participate in reducing monthly mortgagemortgage loan terms. Once an agreement has
payments to less than 40% of the borrower'sbeen made, the loan modification offer enters
gross monthly income. The resulting losses lendersapproval. Your HOMEstart attorney will review the
and banks incur would be refunded by Obama'soffer made to you by your lender to make sure
$75 billion HASP budget.that it represents the terms previously discussed
Lenders Involvement. There are a few simplewith your negotiator. Generally each lender will
methods lenders use to lower monthly mortgagehave their own borrower qualification guidelines
payments; these include reducing the interest rateand so for the best results, consider these
to as low as 2% or extend the loan term as highfactors while getting prepared:
as another 10 years. In Obama's attempt toIncome-Expense Ratio. The borrower's proof of
incentivize participation, lenders will receive $1,000income and monthly expense sheet is used to
for each mortgage modification and can alsoshow your lender that smaller monthly mortgage
receive an additional $1,000/year, for up to 3payments will in fact result in consistent
years, if the borrower makes consistentpayments. Lenders also want to determine if your
payments. Borrowers are also eligible to receive aexpenses exceed 60% of the borrower's gross
principal balance reduction of up to $1,000 eachmonthly income.
year, for up to 5 years, granted the borrowerNature of Hardship. Some lenders have specific
makes consistent payments. HASP was originallyrequirements on what types of situations qualify
designed for responsible homeowners who haveas a financial hardship, however, your financial
been seriously affected by the worseninghardship should be a result of a situation which
economy and resulting decreasing unemployment,occurred (or will occur) that was (or is) "out
however, with the rate of foreclosures becomingof your hands". Commonly accepted
so high, almost any home owner with legitimatesituations include illness or death in the family,
financial hardships (ie. divorce or separation, illness,demotion or pay decrease, lawsuits, divorces and
unemployment, reduced pay, etc) can qualify formilitary service.
a mortgage modification.Payment History. Lenders look at the borrower's
The major lenders developing government Loanprevious mortgage statements to see if there
Modification Programs are Wells Fargo, JPMorgan,were any prior delinquent payments. If the
Bank of America, Countrywide, Citigroup, IndyMacborrower made timely monthly mortgage
and Washington Mutual. Most of these lenderspayments prior to the financial hardship, then it will
make up the top 5 mortgage lenders by dollarshow the lender your capability to make
volume. Whether you are currently behind onconsistent payments after a mortgage loan
your mortgage payments or foresee being unablemodification. Remember that your credit history is
to make payment in the near future, you cannot reviewed, simply your mortgage payment
qualify for a mortgage modification.history. Those with poor credit can qualify for a
Loan Modifications. The time to act is now,mortgage loan modification.
however, do not rush and make a decision basedBank Statements. Lenders look at the borrower's
on pricing from any mortgage modificationbank statements to determine if the loan
company. Remember that a turnkey, mortgagemodification applicant had normal spending habits
modification involves 7 critical phases. The processprior to the financial hardship and to see if there is
can generally take up to 3 months, even with aany savings set aside in case of an emergency or
team of experienced mortgage modificationworsening situation.
specialists working diligently, which is why the timeTax Payments. These documents serve to
to get started is now.evaluate the borrower's level of financial
Even though a loan modification requires severalresponsibility. Consistent tax returns will
people (ie. intake processors, consultants,demonstrate to your lender that you're not just
negotiators, lawyers, etc.), consider that just onelooking for "cutbacks". The borrower's
individual working on your loan modification file fortax returns also provide additional proof of
3 months works out to the borrower hiring helpconsistent income.
for just over the minimum wage rate ofForeclosure Information and Timeline
California. Do not be fooled by loan modificationIf you are looking for loan modification services,
companies or firms offering low prices becausethen you are probably looking to save your home
they mostly likely (1) do not have a DRE license,by preventing foreclosure. The closer a home
(2) are not accredited by the BBB or (3) do notowner gets to foreclosure, the more difficult it
have the resources and staff to complete a fullbecomes to get a mortgage loan modification.
loan medication (a legitimate contractualKnowing the foreclosure process and timeline will
agreement between the borrower and lender tohelp you evaluate your situation and make the
modify mortgage loan terms).best solution for your current or approaching
Each of the seven phases utilizes the skills andfinancial hardship.
experience of a wide range of professionals to
negotiate and create a loan modificationCollections Stage. This period, ranging from 30-90
agreement for your mortgage loan terms. For thedays, begins when you miss your first mortgage
consumer's protection, the Department of Realpayment. Generally your bank will try to contact
Estate (DRE) certifies loan modification companiesyou before taking any severe action. After 2 to 4
by providing a license on a per state basis. Alongweeks from the first missed mortgage payment,
with that license, the Better Business Bureauyour bank will begin to assess late fees. If the
(BBB) provides an extensive grade, or ratingsecond mortgage payment is missed, your lender
scale, on a multitude of different factors whichwill send you a breach of contract letter, which
can help the consumer eliminate any fears offormally informs the borrower in writing that they
being scammed.have violated the mortgage loan terms. In
Loan modifications were originally reserved foraddition, after the second delinquent payment, the
those whose mortgages became delinquent dueborrower will be given 30 days to pay the balance
to job loss, divorce or illness, but today loanor come to a resolution before receiving a Notice
modifications are also open to anyone sufferingof Default.
from high adjustable rate mortgages. It is
imperative to begin the loan modification processNotice of Default. At this point, also known as
before your lender gives you a notice of default.pre-foreclosure, the borrower has missed their
Also, one major misconception about who qualifiesthird mortgage payment. Pre-foreclosure starts
for a mortgage loan modification is that thewhen your lender files a Notice of Default (NOD)
borrower must already be behind on theirat the county office governing your property.
mortgage payments, this is not true.Unfortunately for the home owner, technically
Your HOMEstart. Many attempt to work withspeaking the foreclosure process begins at this
their own lender and come away with no results.time; only a short 2 months after your first
This partly results from many lenders having adelinquent payment. It takes less than 2 weeks to
severe lack of trained and experienced personnelreceive your formal Notice of Default. In California,
working on loan modifications due to the risinga 90 day period, known as the Reinstatement
amount of loan modifications being processedPeriod, is initiated as the time frame the borrower
each day by any given lender or bank branch.has to resolve the owed balance before a Notice
There simply is not enough experienced people toof Sale.
meet the demand of incoming loan modificationMidpoint. At this time, typically 60 days before the
files. Also consider this process can be difficult inAuction date of the home or property, the
some cases even with professionals and legalborrower's options for initiating a loan modification
staff working diligently for months, so do notget very difficult. Contract terms vary from
hesitate to make another attempt at a home loanlender to lender, but the trend is the longer you
modification with a BBB accredited and DREput off making payments, the less likely your
licensed loan modification company like HOMEstart.lender will allow you to create an agreement to
Loan modification companies that provide A+ BBBmodify your mortgage loan terms. However, if
rated services have established personalthe borrower does manage to get caught up in
relationships with the largest mortgage lenders topayments, the NOD would then be withdrawn.
expedite the loan modification process. ContactNotice of Sale. At this point, also known as
HOMEstart at anytime to discuss your financialPre-Trustee Sale, the owner's property will have a
hardship, we will listen and maintain the highestNotice of Trustee Sale (NOS) publicly posted. The
level of confidentiality. We have an entire team ofnotice remains posted for 3 weeks (21 days) and
experienced loan modification consultants who willwill contain the time, date and location of the
help answer any questions you may have,auction. Fortunately, the borrower is able to
regardless if you pursue a loan modificationreinstate the loan upon payment of the balanced
through HOMEStart. We are here to help; startowed from delinquent payments 5 days before
new, not over.the auction date.
Mortgage Loan Modification Preparation