Mortgage Modification takes to the air

Recently, Michigan Mortgage Modification LLC, began running a series of radio spots on country station 106.7 The Fox in the Metro Detroit market. 

According to co-founder Trevor Sines, the idea behind the radio campaign was to raise awareness and “start a conversation” about the housing crisis in Michigan. 

“If you live in Michigan, it is no secret that your home has depreciated significantly over the past two years.  What has been most frustrating for homeowners has been the percieved lack of any cohesive plan to address this problem.  We believe mortgage modification is an effective tool and will become an increasingly important option as the full extent of the housing crisis is unveiled.”

Here is a sample of one of the spots currently being aired

Michigan Mortgage Modification Radio Ad

Jason E. Nolan

www.michiganmortgagemodification.com

Foreclosure Help How to refinance while house is in foreclosure

“Modifications” aren’t working

The article below will tell you a sobering and depressing tale of borrower’s getting their loans modified only to redefault all over again.  The short conclusion would be that mortgage modifications are not working.  Of course, the definition of modification is never established in the article.

Allow me to propose the following arguement:  The reason these so-called modifications arent’ working is because up until recently the banks have had no intention of wanting them to work.  It has only been with increasing political pressure that major servicers have actually “come to the table” and started to make meaningful modifications for struggling borrowers.

For example, I have been working with a client from the Traverse City area in Michigan.  His mortgage rate was in the 7’s and was scheduled to adjust above 10 percent.  When we took him on as a client we quickly discovered that for him to be able to stay in the home long term, that his mortgage would need to be modified to approximately 5%.  We developed the budget and made the modification request. 

Almost immediately we received a letter stating that the interest rate on the loan  would not adjust as scheduled, but be locked in at the current 7.375% rate.  Great, right?  Another successful modification!  Not so fast.

The “new” payment was nothing more than and extension of his existing, unaffordable payment.  We pointed this out to his servicer.  Yet, we were told that was the modification and their was nothing more we could do.

As of the writing of this article, that client is in default.  Another statistic of a “failed modification”.  The silly part is, his servicer knows that the payment is unaffordable, and thus, unsustainable.  Yet they quantify his case as a “modification” that has redefaulted. 

Take a moment to read the whole article here

http://www.marketwatch.com/news/story/statistics-show-loan-modification-not/story.aspx?guid={00BA4109-649A-441A-906B-11B05606C3FD}&dist=msr_1

Of course, we continue to work on this client’s behalf and believe, eventually, his servicer is going to “come to the table” and truly negotiate a workable plan.  I guess at that point we will be able to create a new category for the government statisticians, the  default-modifiy-default-REALLYmodify, homeowner.

What a mess!

Jason Nolan

www.michiganmortgagemodification.com

Why “bailing out” homeowners is so damn hard

 

If you are like me, you are probably wondering why the US government seems so intent at throwing money at banks and insurance companies, but downright miserly when it comes to helping the “little guy” through this economic maelstrom we find ourselves in.

This article by Rick Newman was recently published in U.S. News and World Report provides the best explanation I’ve read so far as to why Washington just can’t seem to get it together when it come to “main street”.   

The financial bailout is on, and so far the government has injected upwards of $150 billion in a variety of banks, not to mention a $120 billion loan for insurance giant AIG and $25 billion for the Detroit automakers.

As for helping distressed homeowners, Washington is still thinking it over.

 READ THE FULL ARTICLE HERE

http://biz.yahoo.com/usnews/081029/29_why_the_feds_rescue_banks_not_homeowners.html?.&.pf=banking-budgeting

-Jason Nolan

www.michiganmortgagemodification.com

 

I’ve got terrible credit? Can I get a mortgage modification?

 

Yes.

In fact, your credit rating has little or no impact on the outcome of your modification request.  When approving a loan modification lenders there isn’t  alot of consideration paid to your previous payment history.  Instead, lenders look at the likelihood that you can consistently make the lower, modified payment going forward.  That is why it is essential to have an accurate and complete monthly budget developed for your lender to review.  If you are coming up short every month even after considering the proposed lower house payment, your lender will not typically grant a modification.  This is because it is simply a matter of time before you end up delinquent again.  A mortgage modification is intended to provide a permanent solution, not a temporary reprieve.  Thus the emphasis is placed on your ability to make your payments in the future, not on your past indiscretions.

When considering the bigger picture of your overall financial fitness, your credit rating is important.  One of the goals of Michigan Mortgage Modification is to help clients preserve their credit rating as much as possible.  Avoiding foreclosure and obtaining a reasonable house payment are essential elements of achieving that goal.

 Jason Nolan

www.michiganmortgagemodifiation.com

 

Help! I’m current on my payments!

 

To qualify for a mortgage modification, most lenders require that you have had, or will have, a documented hardship that makes it difficult or impossible to maintain your mortgage payment.  Of course, the most obvious evidence of such a  hardship is a delinquent payment history.  In this respect, homeowners who are current on their house payment are at a disadvantage compared to delinquent borrowers, as lenders tend to focus their attention on delinquent borrowers first. 

However, if you have maintained a solid payment history you may still be eligible for a mortgage modification.  As part of the professional mortgage modification services that we offer, your monthly budget will be developed and documented.  If you are able to demonstrate that you are running a monthly budget deficit and being forced to deplete long term assets (like a retirement account) or borrow money from other sources to maintain your house payment, you can successfully negotiate a mortgage modification.

 The reality that struggling, but “current” homeowners may face additional hurdles when attempting to modify their loans is a troubling phenomenon in the marketplace.  At Michigan Mortgage Modification we advocate for all struggling homeowners and celebrate those who have fought to maintain their monthly mortgage obligations, often against all odds.  We stand at the ready to serve as a vital resource in helping to assist you in negotiating a reasonable, permanent mortgage payment reduction.

 -Jason Nolan

www.michiganmortgagemodification.com

What’s the difference between a mortgage modification and a refinance?

 

Where to begin?  First off, a refinance involves the payoff of an existing loan with a new loan.  A mortgage modification is not a new loan, but rather, a change to the terms of an existing loan.  Mortgage modification is a compelling alternative when a homeowner is denied the ability to refinance and they are struggling to maintain their house payment.

Refinancing requires that a lender verify your credit history to determine if you are credit worthy.  Mortgage modifications do not require a credit check.  Your lender will attempt to determine your ability to repay the loan at the new, modified terms, based on information you provide them.  Whereas a delinquent payment history will typically result in the denial of a refinance request, delinquent payments typically will not affect the outcome of a mortgage modification.

An appraisal is almost always required when refinancing a mortgage.  This is to ensure that the new loan is sufficiently secured by the collateral, your home.  A mortgage modification request is not dependent on the value of your home.  In fact, most modification candidates owe more than their homes are worth!  This is the primary reason they are unable to refinance.

Homeowners often refinance their homes to access additional equity which they might use to consolidate debt, fund other purchases or pursue investment opportunities.  Mortgage modifications do not allow homeowners to take additional “cash out”.  However, you can most likely roll delinquent payments and, if applicable, legal fees into a mortgage modification.

Lastly, mortgage modification often costs less than a new mortgage refinance.  Although mortgage modification is more limited in some respects than refinancing, it’s importance as an effective tool to assist homeowners cannot be understated.  The professional mortgage modification services that Michigan Mortgage Modification provides are a cost effective alternative for struggling homeowners unable to refinance for any reason.  To learn more about mortgage modification in Michigan, visit www.michiganmortgagemodification.com .

 

-Jason Nolan

www.michiganmortgagemodification.com

What are the Steps to Foreclosure or the Foreclosure Timeline?

In the State of Michigan, there are two phases to the foreclosure process.  There is the Pre-Foreclosure phase and the Formal Foreclosure phase. 

Pre-Foreclosure- Months 1-3 
 First Month Missed Payment
• Customer misses mortgage payment.
• Late notice send by bank.
 Second Month Missed Payment
• Customer misses additional payments.
• Bank attempts in writing and by phone to contact customer and resolve situation.
 Third Month Missed Payment
• No arrangements are agreed upon and customer continues to miss payments.
• Bank issues a “Demand Letter” or “Notice to Accelerate” for payment under the note in full, based on the acceleration clause. Most mortgage notes contain language which basically says if you fail to pay the bank under the terms of the note with monthly payments as promised they can accelerate the note, meaning that the full amount is due on demand. For example if your mortgage is $100,000 with payments of $1000.00 per month you are only required to pay $1000.00 per month unless you miss these payments and the bank subsequently demands the balance based on this acceleration. Once this happens you legally owe the full balance of $100,000.00 plus back interest, plus late charges, plus legal fees all at once. You will find from this stage on the bank will not accept monthly payments. They will instead demand much more to reinstate the loan. Although I consider this step in the pre foreclosure category, once demand has been made and the note has been accelerated you should already have contacted an attorney who is an expert in dealing with these matters.

Formal Legal Foreclosure Process- Months 4-6
 Fourth Month Missed Payment
• No payments or arrangements acceptable to the bank are made.
• Bank sends by sheriff or by certified mail Notice of Intent to Foreclose.
• Bank begins action in the court system to foreclose.
• Legal notices (see soldiers and sailors notice below) as required by law begin to be published in local papers.
 Fifth Month Missed Payment
• No payment or settlement arrangements are made with the lender.
• Notice and waiting periods expire.
• Court holds hearing regarding banks claim. 
• Legal notice of actual foreclosure sale and advertisements published in local papers.
 Sixth Month Missed Payment
• No payment arrangements or settlements reached with the bank.
• House sold at Sheriffs Sale to highest bidder.

Redemption Period- Months 6-12
• After the Sheriff Sale the homeowner enters what’s called the Redemption Period.  Michigan State law requires the redemption period be no less than 30 days and no more than 1 year.  The majority of redemption periods last six months provided the homr is occupied.  The homeowner will be notified of the time frame for redemption on the same notice that states the Sheriff Sale date.
**Important:  Stay in contact with your mortgage company, and seek assistance as early as possible.  If you’re too overwhelmed or your lender isn’t willing to deal with you, remember, you have options.  Contact a professional, like Michigan Mortgage Modification, that specializes in negotiating with mortgage companies as soon as possible.  The longer you wait the less chance you have of saving your home.

Your Friend,

Trevor Sines-Loan Modification Specialist

 www.MichiganMortgageModification.com

What is a Foreclosure?

Foreclosure is a legal proceeding in which the financer of a mortgage seeks to regain property because the borrower has defaulted on payments.  In other words, a foreclosure is a situation in which a homeowner is unable to make principal and/or interest payments on his or her mortgage, so the lender, be it a bank or building society, can seize and sell the property as stipulated in the terms of the mortgage contract. 

In some cases, to avoid the expensive foreclosure process, creditors and lenders may try to make adjustments to the repayment schedule to allow the homeowner to retain ownership.  This situation is known as a special forbearance or mortgage modification.

 However, most lenders will use intimidation tactics encouraging struggling homeowners to accept terms that aren’t necessarily the best for their situation.  Homeowners need to know what they can actually afford and what solutions are reasonable before even trying to negotiate with their lender.  That’s why it’s best to have professional help when dealing with your mortgage lender.

Your friend,

Trevor Sines- www.MichiganMortgageModification.com

Bailout bill unlikely to help homeowners

I came across a great article regarding the upcoming “bailout” and how it’s unlikely to help homeowners struggling to make their house payments.  Heres is an excerpt:

“The small percentage of loan modifications that might get done will be “random and arbitrary,” and not based on the merit’s of a homeowner’s case, he said. Not to mention that second mortgage holders regularly refuse to do loan modifications, and many subprime homeowners took out two mortgages.

Given all this, the bailout ends up rewarding the most egregious of the subprime lenders — the ones who made the most abusive and predatory loans and who disproportionately targeted minority borrowers — since they’ll be the ones with the most toxic securities to buy. Banks that didn’t do as much subprime lending won’t need to sell off as many loans, and they won’t get as much government money, Levitin said……”

 

READ THIS ENTIRE ARTICLE HERE

-Jason Nolan

www.michiganmortgagemodification.com