Mortgage Modifications

February 3, 2011 by staff 

Mortgage Modifications, Many owners have tried Nevada loan modification, loan modifications, but do not work. Remember that until you have equity in your home, everything you do is rent. That’s right! You are a tenant of the bank! There is no reason to repay debt and 300,000 in the house when you bought is now worth $ 150,000 or less. Most experts predict it will take 10-20 years or more for the Las Vegas market housing to rebound. It is rational logic off and makes a fresh start. Surrendering a half worth of work you need is not a failure, it is aBusiness decisions.

Why would anyone want to modify a loan and wait twenty years (or more) to have equity? For those few who are entitled to loan modification, they become “tenants of life.” Too many people refuse to admit a mistake and then they compound the mistake several times by spending their life savings entire 401 (k) ‘s, retirement savings, and even borrow money from family to avoid accepting the reality of the situation. So, the question must be asked is: “Is loan modification the right decision for you and your family? ”

30% of those who fall behind on their mortgages back. This means that if banks wait long enough, they know that you will borrow money from your 401 (k), credit cards, family, or anywhere else you can find it for you catch up on your mortgage. This is precisely why banks do not work with you until you are months behind on your house payments, after which your credit has already been damaged. In addition, almost half of those who receive modifications behind again within 6 months. The banks know there is a good chance that every effort he puts in before changing your loan can lead to failure. That’s why banks offer “amendments of the trial.” The modification of the trial is another tactic that banks use to make you pay extra mortgage payments (up to six months worth) before denying your loan modification or cancellation.

We’ve all heard the same story again and again. This is the story of a family that is falling behind on their mortgage payments, and applies for a loan modification to try to save their homes. After waiting several months, the loan modification is denied, and the bank recommends that the owner do a short sale. While this story may seem familiar, it is another story, which is much more frightening than what is not said.

Has anyone noticed that banks require owners to prove they have the ability to make their mortgage payments as criteria to qualify for a loan modification? Excited owners, eager to cooperate and do what it takes to qualify, submit their tax returns, payroll, bank statements, 401K, IRA, etc., to the bank, hoping that their loan will be modified. After submiting your financial information in good faith, the majority of requests for loan modification is denied, the point at which banks generally recommend that a short sale. Now here’s the scary part. To qualify for a short sale, you must prove to the bank you are having financial difficulties and cannot afford to make your payment. Did anyone see the irony (and danger) of the above situation?

Moral of the story: Do not trust your bank. Have you noticed that every time you call your bank, pre-recorded voice said, “Please note that the bank is a debt collector attempting to collect a debt?” This is because the bank does not represent. The bankers are not your friends and they have no incentive to help you change your mortgage.

So why do some owners still believe loan modification is something worth trying? According to Bill Myers, Nevada selling expert with Century 21 MoneyWorld, “Many homeowners still fear selling because they were told that banks can come after you on the road for a trial Judgement deficit. What the owners do not realize that most banks now include in their letters of verbiage short sale approval to waive the right to bring legal action against the owner. “Myers adds:” Even Bank of America, which used to have the approval letter worst in the industry, now includes verbiage that says they will not come from one owner to the successful end of a short sale. “According to Myers,” There has never been a better time to do a short sale. ”

Some banks require that homeowners pay a promissory note as a contingency for approval of short sale. A promissory note is a note requesting that the new owner to pay (over time) all or part of the deficit (the difference between what is owed on the mortgage compared to what the house is currently worth.) According to Myers, “The majority of our customers were not asked to pay an amount promissory note, but customers who were asked to pay are generally people who have applied for loan modification. This is because customers who have requested a mortgage modification have given much to prove their ability to pay, which dimishing their difficulties in the eyes of the bank. What the owners do not realize that the application of a modified loan can put you in a position where you’re more likely to be sued by your bank. Unless the bank determines your difficulties to be, the greater chance they will require a promissory note. ”

To add to the confusion, the Federal Trade Commission recently announced that effective January 31, 2011, the Nevada companies loan modification are prohibited from charging fees in advance for negotiating changes in residential mortgages. According to Myers, “The loan modification industry has been very misleading to the owners. Government assistance programs such as Haifa, COPE, hopefully now, and the achievement of affordable housing program were unsuccessful due to the fact that banks’ participation is voluntary. “According to the Las Vegas Review Journal,” Most owners in Las Vegas are so upside down on their homes (owing more than their house is worth) that they are not eligible for government $ 75 billion Home Mortgage Plan affordable. “According to Eric Witksoki, head of the Office of the Attorney General Consumer Protection and the state consumer advocate,” The money spent on consultants mortgage modification is a bad bet for consumers. “Moreover, Witkoski noted that spending money on the loan modification is “worse than some of the odds on the casino tables. ”

“Owners should think twice before considering loan modification,” said Myers. “If an application for a loan modification will place an owner in a worse position than doing a short sale, then the owners must take the right decision for their families. Therefore, the FTC intervened and repression on the industry loan modification. ”

In 2010, Myers Team with Century 21 MoneyWorld was ranked No. 1 team of short sale in Nevada. The Myers team concluded successful sales operations shorter and shorter negotiated sale approvals than any real estate agent or broker, in our state.

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