Some good info.

I'm smack-dab in the middle of my own loan mod and completely lack the confidence to negotiate the loan with the lender. Any referrals or recommendations, Richard?

i have already purchased your course

Very helpful info on loan mods.
I got the first and basic course. Mortgage Relief I think it was called.

How much is the loan mod magic and what is it? Please I don't want to read a long advertizement.
thanks, Lauren

Good info however most of the lenders I deal with do consider all of the livings expense that you have excluded in this scenario.

The first thing the loss mit reps at the lenders/servicers do is carefully ask for all of the living expenses like childcare, gas/fuel, utilities, etc.

Additionally, they all base their DTI on NET income not Gross!

Good, with clear, precise and to the point information.

SAME CONCERN. DTI ON NET OR GROSS INCOME? LIVING EXPENSES COUNT OR NOT?

Debt to Income Ratio takes credit card minimum payments, car payment and installment loans into account.

Cable bills, food bills, living expenses do not count in DTIR.

warmly

–Richard

Richard, two questions: 1. I've read a couple times in the last month or so that FNMA and FDMC both put their foreclosuring mortgages on hold, first it was until the end of January, for over the holidays, and then just a couple days ago I heard they were extending their hiatus until they hear more about what Obama is going to be doing. I was told by a woman who works with loan mods that our loan, placed with Wachovia originally (actually World first) is now owned by FDMC. Can I assume that our loan was automatically put on hold? Our original sale date was Dec. 18th, then extended to Jan. 3rd, and most recently it was extended to 2/18. Now she says she can again get an extension, probably into March sometime, a month or so away. We've been paying her $1000 each time she gets it extended but I've been wondering if she's had to do any work to get it extended or if FDMC was just automatically providing extensions to all their foreclosing mortgage holders. Do you know how this hiatus works and can you explain to me what to expect next? We're trying to get a loan mod but have been working on getting our income up to the point where our DTI will fly (we're self employed; I'm a CA broker, just starting to get involved with selling mods myself) and we've needed this additional time to "get our act together" and decide whether or not we should fight to stay in our home of 20 years or just get out and rent somewhere for awhile till we're back on our feet. Any advice you can offer will be greatly appreciated. I'm working my way through your courses and hope to rev up mods and short sales here very quickly to increase my income as rapidly as possible. 2) A second question I have is this: I know that attorneys here in CA have the right to charge upfront fees for their time as attorneys, thus are excluded from DRE's mandates regarding upfront fees as well as CA laws re: foreclosure consultants. My question is this: the woman we've had working on our loan mod runs a non-profit organization dedicated to helping homeowners and it's IRS approved (501c3 or some such designation for being tax-exempt) and she's been "in business" helping homeowners with financial and mortgage concerns for about 10 years. Are non-profits excluded from the upfront fee regs as well as attorneys? Because she does collect upfront fees from her clients. Thanks for your wisdom and encouragement, Richard.

I don't know if I'd keep paying for those extensions. Not sure if she has any work on those or not. I don't believe non profits are excluded but brokers can be excluded pretty easily, and so can lawyers, in California. Brokers can do it by submitting paperwork to DRE and getting a "non objection" or "No action" letter. They need to use DRE's agreement or get theirs approved by DRE. When an NOD has been filed, brokers can no longer do the loan mod with an advance fee.

See California Department of Real estate page on advance fees

warmly

–Richard

what is the average time Mods are taking now?

It varies. Some are taking months. Ugh. Depends if foreclosure is imminent. The closer to foreclosure you get, the quicker they respond.

warmly

–Richard

How important is the hardship letter? I'm hearing it's not that important any more.

It's very important but almost anything can qualify as a hardship. For a loan mod, it's more straightforward. For a short sale you might want to put some things in about credit and how it is reported, and about deficiencies.

warmly

–Richard

what about rolling a 1st and 2nd together with same lender? do you submit same request to both or ask the 1st to add 2nd on and reamortize? what's most efficient? divide and conquer?

No they don't do that. The loans are almost always kept separate. You submit the same request to both.

warmly

–Richard

what's the best way to get set up to take credit cards?

If you have a banking relationship, you can ask your bank for a "merchant account."

Another avenue is Paypal.

Still another is Cardservice International.

These merchant account providers will let you take credit cards and process them and put the money into your bank account.

warmly

–Richard

this stuff sounds real interesting to me, i would love to get into a business that actually helps people..do i need to be a liscensed broker or something.? is this something the average joe could learn.? another question is, i live in michigan, are there any laws preventing me from doing this.? todd

Average Joes are learning it all the time. Most states have some regulations in place but don't require a license. You can Google "Foreclosure Rescue Statute Michigan" and "foreclosure consultant statute Michigan" as a starting point to find out laws that apply to you.

warmly

–Richard

Hi Richard,

I had to move my debt to my business account since I could not handle the mortgages in my personal account. I have not change the title to my business yet, however. What do you suggest I do for the bank statements the lender want for loan mod? Should I revert back to personal account?

Thank you in advance.

How do you get the loan amount reduced? My house is 50% of the purchase price and have two loans, 1st and 2nd. Thank you, PJ

It's tough. It's a principal reduction. We've had reports of people getting them but they seem to be fairly rare.

warmly

–Richard

will the findings of violations help reduce principal if even the lenders previous bpo shows house is $120k less than principal? especially when 1st & 2nd is same lender and what is considered as major violations? has anyone had success with audits? I need someone to audit my clients loans.email me naci9726@juno.com

I really want to find out what min/max dti is used to qualify borrowers for a loan mod? One of my clients contacted their lender (B of A) directly in December 08. They reviewed his monthly income & expenses together on the phone, and BofA told borrower he does not qualify.
However, when I called BofA on behalf of borrower, they approved his loan mod request right away (although I showed positive income from his business vs. what he disclosed in December, which was a net loss from his business).
But before approval came, we had to crunch the numbers 2-3 times to make the loan mod request qualify…..what dti's are used to determine eligibility? (of course this happened before Obama's announcement).

We have your program, and have listen to your tapes. we would like to get info on Barbra @ the loan processing ctr. We generate clients for loan modifications.we need someone any one to process them. We are mortgage
brokers, in business for the last ten years, so we have a client base.Our location is in MD. WASH DC. area. please, respond, want to do volume.THANK YOU - TONY

Thanks for the great information. Two things are quickly apparent; if you're behind on your mortgage payments and don't have sufficient verifiable income, then there is zero chance you'll qualify for a loan modification. The second things is if you are trying to be a loan modification counselor or consultant for pay, only about one out of every 20 or 30 homeowners struggling to make their mortgage payments will qualify for help. I am interested in becoming a loan modification counselor, but considering the scarcity of people who can qualify and the sheer volume of clients I would have to wade through before I would have one who would actually qualify for modification, this would seem to be mostly a time-waster with little significant income potential. Could you tell me what the "average" or "normal" monthly income has been generated by your loan mod students who are doing this full time? I live in a major metropolitan area and would potentially have thousands upon thousands of possible to market my services to.

I just purchased your Loan Mod program - less than 5 minutes ago. Thanx for the new information!

very valuable information

What is the best, safest, and least expensive way to be successful in Real Estate?

If I had known what kind of hornets nest I was getting myself into, I would have never even tried to get a lower mortgage.Due to some very real hardships I was struggling with my high monthly payment on my reverse mortgage. I was with Countrywide first and my interest rate is 8.5%.Then of course I got handed down
to BAC.Believe me I would not have chosen them. I have been trying to get a modification or just a refinance for 11 months now. I'm working on my 3rd mortgage
mod crew,my house has been in foreclosure for 6 months and been up for sale twice and another date is looming.BAC has never offered to meet with me to discuss options, they have said no to every question I ask. I honestly get the feeling they would just rather sell my house than lower my interest rate. They would still be making money on a 4.5% rate. But they don't even look at it.I have a lot of equity in my home and it is worth quite a bit more than the mortgage, could this be a reason they will not budge.I can't both make too much money to qualify, then a week later make too little money to qualify, and the a week later I was told I had not been with them long enough to refinance.I will not let them sell my home of 23 years even if I have to borrow from my 80 year old mother. But this is not right. My hardships included 2 deaths of close family, a major illness, that while controlled is not cured. I'm dealing with an 18 year old alone . And last I was caught in a Maddoff like scam and lost a lot of money.All my money . What recourses do I have.

I finally got my loan modification but the documents they sent me describe it as a 25 year interest only ARM! I am so upset! If I don't take it they will start foreclosure proceedings as I am behind. My house is 300K upside down so there's no way I can refinance. I can't afford to send extra to pay down principle. What should I do?

Will B of A modify a loan to less than 31% of gross income? If so what can be an acceptable normal range? I need it lower to fit into my left over income after all expenses.

Is commercial loan modification still open?

We are doing the training with the first class. It is closed right now.

warmly

–Richard

I'm in the middle of trying to save my proprety,I need help, I'm deal with BOA & they not being easy.please help me.#912-920-2332

Will the lenders work with you individually or do you have to be represented by a professional?

Have you ever heard of any programs that will allow a HO to sell their home on a short sale with the original lender to someone who will buy it, and re-sell it back to the HO at the current market value?

The intent, of course, is to help the HO stay in their home for a lessor (i.e. modified) principal amount, thereby lowering their principal and payment….

Does such a program exist?

This is my recent sucess story and if you don't believe me I will gladly sent to you a copy of my loan modificaition letter from BofA. Plus, i am in the nation's largest foreclosure area, LAS VEGAS.

Old Mortgage - 1st, $154K, 7.250%, Fannie Mac, Payment $1,113
New modified - Step-up. Yrs 1-5 2%, Yr 6 3%, Yr 7 4%, Yr 8 4.375% until Maturity, New Payment w/ Prop Tax & Ins $632

Here is the hard part though it took me 1-1/2 years of calling and waiting, more waiting. Getting rejections letters and starting the whole proces over 3 times, 3 new financial stmts, 3 new hardship letters and 3 new requests. In this whole learning process, I always thought there was some precise science or formula that would help me get qualified. I worked hours on the internet searching for "helpful" advice, possibly hiring a lawyer or a fly-by-night company that could guaratee they could work with the banks to mod my mortgage. At times I almost reached out to these sources but to no avail I could not part with money I really didn't have. Personally, I had suffered (2) layoffs within less than a year. I was starting to get a month behind and even had to refinance my truck loan which owing $27K was not easy to swallow but I needed to find work and get to work. I just knew there was only two routes to go, sink or dog paddle like crazy. Sure it would have been easy to just give it back to the bank but I decided that I signed the bottomline on my debt but more than that I love my little house. It is nothing fancy but it is mine, what I am use too, my own little paradise even I am 'underwater' like the rest of Nevada.

Here is the things that I learned and I am not sure if this will help but each of us have different circumstances financially and personally, this is what the bank considers. They have to take into consideration your financial means but have to consider your hardship. I am not sure how BofA or any other bank make their decisions. I do know that they have a formula for your debt-to-income ratio so logicially you have to have financial responsibility, but the hardship is the element that should affect your income in that you can't recoup for years to come. During the first 2 processes I never had a face to face with someone, or one person contact. I was always talking with someone different, getting routed to another person, being told one thing different than from the next person and getting transferred from one department to the next. My frustration was neverending. I got to the point that if one person told me a negative thing I would just hang up and call back until I got some positive feedback. Finally in the 3 process I got to someone who actually got me a face to face to someone, a real banker, I didn't believe it. BofA in Nevada set-up offices so you could go over your financials with someone and they could enter all your information correctly. In fact, when she had reviewed by prior financial statements the banker said that they had not considered my child support when in fact I had clearly submitted and reported it (which kinda makes me think I got approved because of this). Anyway, I went to the face to face and for the first time I felt like BofA was listening and I got the straight story on the process, etc. I also was able to show all my income and expenses, so they could see the truth of my situation.

So in the end, be honest about your situation, keep calling and if you feel you are not getting answers or proper information hang up and call back and talk with someone who knows what they are saying. Verify with BofA that they have all the correct parameters entered on your financial statements. I also recommend you try to find out if there is an office to which you can go talk with someone, or the closest office that is accepting appointments which you have to call BofA to find out. Again, if you are able to see someone in person, have all your documentation in order, bank statements, paycheck stubs, copies of your utilities, car, etc. and most importantly and strong hardship letter. If this includes new health issues get a letter from the Dr. verifying your medical condition. I figure the more information you provide, they will see that you are wanting to keep your house, that you are willing to open your door and let them in as a dinner guest, share in privacy, just don't make it a sob story because you have to stay neutral no matter how hard because this is your home, your dignity.

Finally, be proactive and do follow-up just don't think that once you submit information it is the bank responsiblity to answer. You should be on the phone verifying they have your latest information because in reality it is not the bank's job to call you every month to remind you that your house payment is due. Just keep staying on the bank and keep filing out financial statements as your situation changes because it seems like things are changing every 5 minutes in this economy.

Good luck and if you have questions let me know.

We are in a similar situation. We have a first and second with B of A. We now owe about $800,000. The house is worth $400,000 maybe. We have an interest only loan that will stop in three years and convert to PI or we have to refinance. We were turned down for a refinance before we stopped making payments. The house payment is over $5000 a month. We bring home over $10,000, but have other credit and expenses. We do not want to pay $5,000 for an interest only loan. We did not qualify for Making Homes Affordable, but we did for an in house mod. Then B of A stated they tried to reach us to discuss and could not and our in house was not approved because of this. I had called B of A the same day they supposedly tried to reach me and tried to talk to the person in charge of our mod. I tried every week and was told I could not talk to her, and was told she would call me. Now B of A stated I have to start over. I did and was first told I was $2200 short. Then I was told I did not show I needed a mod. Then I tried again and was told I needed to get my expenses down to below 10% to qualify. They are at 22%. I asked why I qualified in Feb. My expenses are the same. They would not tell me other than my credit report stated otherwise. They did not factor in the proposed new house payment. I proposed a 3% loan and the second erased because a realtor who sold us the home stated she could sell it for $350,000. I stated that if I did get my debt down to 10% they would assume I could pay $5000 a month of interest only and would not give me a regular loan at a decent interest rate. The person I was talking to kept asking me for money, but would not guarantee they would not foreclose even if I started making some type of payment. What do we do now?

Do you have updated info regarding the status of the Pick-a-Payment class action lawsuit against Wells Fargo, in the 9th Circuit, and the court-ordered modifications for the members of the class action? Is Wells Fargo required to offer Mods to the homeowners and are they obligated to work towards the elimination of mortgages under the Options Programs by converting them to 30 year mortgages?

I appretiate for lecture and I have more guestion with loans. We have more then any one inspect situation with bank where we have our payments continously -laced into suspend account and charge late fees some on same months more then 10-64 times. There is Non paid property taxes while collecting tax installment, there is placement of insurance(in presence of fully paid) in excess of value on property by bank and attempt collect such without producing policy) that aginst Fema standarts, was an addition on Loan , and X-tra $$$$ FOR NON EXISTING CHARGES SOME OF THEM IN EXCESS OF 70.000,00 . THERE IS FALSE 1098 FORMS ON INTEREST we paid to bank (less $ for about 6.000-8000,00 ) continously. There is a constant run arround by bank on modification application as every one else. Our loan been named in class A Law suit for settlemen for loan balance by Attorney General , unfortunatelly bank duing every thing to dominate/supress our financial situation. We have 10 legal VIP BofA been assigned and been changed, in the last 2 years, but we still fighting. One guestion : your lecture is not outlining about Deed in Lieu situation and how it accounted.
I also congratulate for extremelly "simple,good explanation on situation with short sale and etc..? The most clear one and good for any brain level. Thank you.