Stop Foreclosure Answer

Your mortgage company has started foreclosure on your mortgage.  You have looked at your options and have decided that you would like to see if your mortgage company will modify your mortgage.  You wonder what your mortgage company is going to ask you to provide to them.

 

The majority of mortgage companies are going to ask for similar information.  Some have an application right on their website that you can print off.  If your company does not have the application on their website, call their phone number on the monthly statement you get from them.  Ask a customer service representative to send one to you.

 

The first item all are going to ask for is a letter or statement from you in which you explain what caused your financial crisis.  Be as detailed, honest and open in this as you can.  Explain not only what happened but also add in the way things are right now.

 

If you lost your job and you had minimal savings to tide you over, say that.  If you are still unemployed, don’t say that you hope that things turn around and that you hope to find a job in the next two weeks.  Jobs right now are tight.  It may take you a long time to find a job.  If you do find a job while your application is being processed, you can let your mortgage company know then.

 

If your financial crisis was caused by mounting medical bills which you or as family member were charged for treatment of a serious illness, explain that.  You might want to let them know the total of those bills and how much you still owe.  Those bills won’t appear on your credit report. Your mortgage company won’t know anything at all about them unless you tell them.  If the medical bills are still mounting, let them know that.

 

If your financial crisis was caused by a divorce or death of a family member, explain how that caused you to fall behind on paying your bills.  Here again it is better to tell as much as you can.

 

Your mortgage company will want 2 current pay stubs from you and anyone else on the mortgage if you and they are working.  If either you or they are receiving Social Security or pension benefits, you will have to let them know this.  The same is true if you are receiving Social Security Disability, alimony, maintenance or child support payments.

 

If you are self employed, most probably you will have to send copies of your tax returns for the last 2 years.

 

Your mortgage company will also want to know what assets you have.  So you will have to submit a copy of the monthly statement on your checking and savings accounts.  If you have a 401k or IRA, you will have to include a copy of your most recent quarterly statement on that account.  If you have any investments, you will need to submit a current statement on these.

 

They are going to ask for the value of any homes you owned.  Here you can estimate the value.  The balances and monthly payments on any mortgages you have on properties that you own will appear on your credit report.

 

Most probably your mortgage company will ask you for the value on any automobiles, boats or other recreational vehicles you own.  Here just estimate what they may be worth.

 

The last thing they are going to ask you for is to itemize your debt.  Remember that they are going to get a credit report on you.  That report most probably will detail how much you still owe on any automobiles, student loans and credit cards that you have.

 

Your credit report won’t have anything about how much your insurance costs you annually.  So make sure that you include what your annual bill is for insurance on your autos, home and recreational vehicles.  If you pay for your medical insurance, include that.  Also include the premium on any life insurance and disability policies that you may have.

 

Indicate what the balance is on any outstanding medical bills you have.  If you or a family member are receiving ongoing treatment for a medical condition on a regular basis and you know what the charge for that is, indicate that.

 

If you are paying child support, alimony or maintenance, indicate how much you pay and how frequently.

 

Indicate what you pay monthly for food and utilities (water, gas and electricity)

 

Also include what you pay monthly for your phone telephone and internet connection.

 

As you can see, your mortgage company is going to require a comprehensive listing of your income, assets and debts.

 

Many people are intimidated when they see the form they are required to complete.  They are unsure of what to say.  Some include just a fraction of their actual expenses and they jeopardize their chances of getting a modification.

 

If you want to get your monthly mortgage payment and the terms of your mortgage modified, I recommend that you get a lawyer or an expert in this field help you.  They have helped many people in situations like yours and know what the mortgage companies require.   They can guide you in completing the application or tell you what information they need from you and complete it for you.

 

Much Success,

 

Mark Elkins

If you are facing foreclosure your main focus is to save your home.  You have two choices.   Today I want to review these choices with you.

 

Your first choice is that you can do all of the work on your own.  Let’s take a look at what that means. 

 

In order to save your home, you will need to prove that the mortgage company from whom you got your mortgage made a mistake on it.  Either the rate was wrong or it was not the type of mortgage that you were led to believe that it was going to be.  Or there were other errors in the documentation.

 

Any of these errors that they committed would enable you to get your mortgage company to negotiate with you.  That would enable you to have them admit they were wrong and give you a lower interest rate and a lower payment.

 

Your other alternative would be to contact your lender and request them to modify your mortgage and reduce your monthly payment.

 

Let me ask you. 

 

How well do you know the law?  How skilled are you at reviewing your mortgage documents to see if your mortgage company made a mistake?  If you don’t have any knowledge here, how long would it take you to acquire the knowledge you would need to be successful against your mortgage company and win your case?

 

Let’s say that you just wanted to have your mortgage modified and your monthly payment reduced.  Could you ever be sure that the new reduced payment you got was the lowest that you could have gotten?

 

Now let’s look at your second choice.

 

You can have someone who has a background in this area and who has helped other people who have faced foreclosure represent you.  This may be a lawyer or an expert in the field. 

 

What are the advantages of the second choice?

 

Ø  The person you hire is an expert in the field.

 

Ø  They know what can and cannot be done.

 

Ø  They can review your case and let you know whether to take legal action or seek a loan modification

Ø  They can also make sure that any reduced monthly payment is the lowest that you can get.

 

If I were facing foreclosure, I would want the best person I could find to represent me.  I would want to make sure not only that I was I able to save my home but also that if my monthly mortgage payment was modified, I got the lowest payment that I could get.

 

If you want a lawyer to represent you, you may have to pay a retainer fee upfront.  You can also check with your local county Bar Association to see if you can get free legal assistance.

 

If you hire a lay expert to help you, there is no upfront fee.  Their services will be paid by the lender.

 

In addition to facing foreclosure, you probably had other financial issues that you are dealing with and the circumstances that led to these.  

 

Did you lose your job and is that the main reason for the situation you are in?  If it is, then by hiring someone to help you with the foreclosure, you can spend more time looking for new employment.

 

Do you have a lot of credit card debt?  Is that troubling you too?  Get outside help here also?  Why spin your wheels trying to correct problems on your own when experts in that area can do it for you more quickly?

 

Does a family member have a medical condition which requires ongoing treatment?  Has that caused your financial crisis?  By turning over your financial problems to experts in their respective fields, you will free yourself to spend more time with your loved one and your family.  You will not be worrying about how you are going to make it through the financial crisis and you will be able to focus more on the key people in your life.

 

You may realize that a lawyer would be the best one to help you with the foreclosure you are facing.  However, you don’t have the money for their retainer.  I would suggest that you find it somewhere even if you have to get an advance on a credit card for it.  The money the lawyer will save you will more than offset the initial retainer you have to pay.

 

You and your family are worth getting help from experts to deal with the challenges you are facing.

 

Much Success,

 

Mark Elkins

I don’t know if you realize this.  Mortgage companies were never staffed to handle the volume of requests they have received for loan modifications from people facing foreclosure or people who afraid they might slip into foreclosure.

 

Mortgage companies have always had a staff to handle foreclosures.  They also had computer support. However, several years ago the number of foreclosures was relatively small.  The mortgage companies had relatively small staffs to handle the work.  Their computer systems were minimal.

 

The number of foreclosures in the last 2 years has risen to astronomical numbers.  Suddenly the mortgage companies have found it necessary to expand their staffs dedicated to dealing with the requests from people to change the terms of their mortgages and lower their payments.  They also have found it necessary to have computer systems capable of processing all of the data.

 

This has posed a challenge for the mortgage companies.  Not only do they need more people to do the work.  They need special type of people – those who are empathetic to borrowers who are anxious, worried and very concerned.  These people need to become expert in their work quickly. 

 

The experts in this field – those who do great jobs – are at a premium.  While they are required to do their regular work, they have also been asked to train other people.   Right now this is placing a huge strain on the system.

 

As is common with every job, not all people hired will be able to do competent work and will have to be replaced.  This is further backlogging the system. 

 

Several companies have hired psychologists to help them screen job candidates and help them hire the right people for these jobs.  These psychologists are also helping them train their employees in what to say and how to deal with people facing foreclosure who call them.

 

At the same time the mortgage companies are having their IT departments get the right computer systems and develop the programs to process all of the data connected with lowering payments and changing the terms of mortgages.

 

As you can imagine, it may be a long time before the mortgage companies are able to bring all the work here under control.  Until they do, there is a going to be a big back log of requests by people for modifications to their mortgages.

 

So if you have contacted your mortgage company and you haven’t heard back from them, it may be that they are swamped.  Follow up with them regularly to make sure that you file is not buried on someone’s desk in their office.

 

Much Success,

 

Mark Elkins

 

See The Stop Foreclosure Answer System Here!

I am sure that you would agree with me.  When the Federal Government gets involved in something, it turns into a mess.  Instead of getting easy, it really gets complicated.

 

That’s why I was totally surprised when I looked at the website for the Making Home Affordable Program which the Obama Administration announced in March.  If you are not familiar with it, one aspect of this program, the Home Affordable Modification program, is designed to help people facing foreclosure save their homes.

 

They have set up a website to help people.  It is www.makinghomeaffordable.gov.

 

When I went to this website, I found some stuff that blew my mind.  Go to www.makinghomeaffordable.gov/modification_eligibility.html.  You will see an easy 5 point checklist to see if you are eligible for modification to your mortgage.  This is one of the simplest forms that I have ever seen.

 

What really astounded me was the Payment Reduction Calculator.  This is at www.makinghomeaffordable.gov/payment_reduction_estimator.html.  Here you enter your current monthly mortgage payment and then your gross monthly income.  It will tell you what your new monthly mortgage payment will be if you qualify and how much you will save.

 

The most difficult part here is calculating your current monthly mortgage payment.  That includes your principal and interest payment, taxes, insurance and home owner’s association dues.  If you already escrow for taxes and insurance, you just take your total payment and add in any monthly association dues you pay. 

 

If you don’t escrow, take your annual real estate taxes and divide those by 12.  Do the same with the annual premium for your home owner’s insurance.  Add both figures to your current monthly payment along with any association dues you pay.

 

If you don’t know what your gross monthly income is, look at your W-2 form for 2008.  Check the total in the Wages Box and the Social Security Box.  Pick the highest one.  Divide that by 12.

 

Check this out today.  I am sure that you will be as surprised as I was.  I just wonder why the government can’t make things this simple on a regular basis.

 

Much Success,

 

Mark Elkins