Do it yourself mortgage modification

2009-04-26T19:11:00.001-07:00

What Is Loan Modification?
Over the past few years, our country has experienced real estate appreciation and then depreciation like we have never seen before.
In the early 2000's, homes in many parts of the country doubled and even tripled in value over a few short years.
A large portion of this price increase was caused by speculators whom through the use of "cheap" money, fancy loan programs and unscrupulous loan providers, bought into the idea that the value of real estate could only go up, up, up!
"Buy now before you are priced out of the market forever!" was the mantra of the day!
This mentality further permeated the "owner occupied" sector of our mortgage market.
Cheap money was everywhere & everyone was approved!
No credit? / Low Credit? / Bad Credit?, "NO PROBLEM!" No Income?, "NO PROBLEM!" Lost your Job?, "NO PROBLEM!" "WE HAVE THE LOAN FOR YOU!!"
This "no holds barred" free-for-all allowed many of us to obtain "cheap money" to buy that car, boat, motorcycle or even that oversized home that we always wanted after all, everyone needs a 10,000 square foot home.
Our homes became oversized ATM's That would pump out money whenever we wanted.
Yes, you can even borrower $200,000 for as low as $938 per month! (actual ad).

So what if we could not afford a traditional $450,000 mortgage, we could simply get a loan with "negative amortization" and add the difference in the payment to our loan balance!
Surely our home"s value will increase every year and some day we will even be able to sell it for a big, big profit!
Retire Early!
Buy More!
Well, we all know how that worked out!
During This same time period, our own government was ignoring the problem, turning a blind eye to the fraudulent mortgage industry.
Despite numerous requests, the Senate Banking Committee refused to look into accounting irregularities and reign in FNMA and Freddie Mac.
Do Not Touch Our Sacred Cows!
Our representatives further exasperated the problem by passing regulation after regulation under the guise of "promoting home ownership", forcing lender's to lend fund's independent of the borrower's ability to pay.
So what if the borrower does not qualify for the loan, give them the loan or risk a discrimination lawsuit.
While we could spend many pages detailing the failures of our elected officials, Wall Street Fat Cats, Shady Lenders/Mortgage Brokers and even irresponsible homeowners, it would not change the position all of us find ourselves in today.
We are underwater, over our heads and need a helping hand to make it thru our current predicament.
The question is "What do we do now?"
While I may not be able to answer all of your questions or even give you a sure fire solution to your current financial problems, I can give you the information and tools necessary to hopefully help you to either lower your mortgage payment, save your home of provide you with the knowledge to improve the financial situation you currently find yourself in.

Towards this purpose, it is important to provide you with an overview of the various options available to you so that you can decide for yourself which path is the best when considering your circumstances.
Only you can make the final decision as to what is best for you and by arming yourself with the knowledge of what to expect, you can substantially increase the likelihood of obtaining a favorable outcome.
When a homeowner, or even an investor, finds themselves in a situation whereby they cannot make ends meet, they have several options available to minimize the impact on their long term financial situation.
The first thing you need to do is take action!
Do Not Wait!
Always be proactive when dealing with financial hardship, the longer you wait the more damage that is done to your credit and to your chances of a successful outcome.
Time is not your friend in these circumstances so if you find yourself behind the eight ball in your mortgage payments, take action now.
Some of you options, each of which have a complete chapter devoted to them...
LOAN MODIFICATION
LOAN FORBEARANCE
SHORT SALE AGREEMENT
DEED IN LIEU OF FORECLOSURE
BANKRUPTCY
Under each of the above options there are several parts and counterparts depending on the loan type, the lender and even the current status of your loan but don't worry, Your "Do It Yourself" Guide to Mortgage Loan Modification will explain each of them to you and show you the requirements.
Time is of the essence, Get Your Guide Today