I am tired of hearing the so called experts on television and radio talking about helping people save their homes and offer nothing of real substance. It is time you got REAL the story.
If you have tried to get a modification done you know how hard it is. You know firsthand how the collection department makes you feel. I know because I deal with these people on a daily basis. The mitigation and collection departments are trained to collect money. As much money as the possibly can, from YOU and your family! That is their job, plain and simple. They don’t care if you have the money or not. They don’t care if you have to borrow it from family or friends. Heck, they don’t care if you have to simply sell your most precious assets to get the money.
You need to understand the bank is a business and they make business decisions. When you put yourself in their shoes you start to realize how to play their game.

Do I have to be behind on my payment to get a Mortgage Modification?
No, you do not have to be late now to get a modification. In fact most lenders prefer you to be proactive. With that being said, other banks do not have time at this moment to work with people that are current simply because they have too many foreclosures to deal with. The bank does not want your house so either way you need to contact them.

What if I have received a Notice of Default?
It is not too late to save your home when you have a notice of default but time is not in your favor. You need to act now and get the mortgage modification process moving. Most lenders will put a hold on a NOD if you have a mortgage modification package submitted.

My Realtor told me I can just walk away in about 8 months and nothing will happen.
This is the biggest crock I have heard and I hear it everyday. You need to understand, most people have very little knowledge when it comes to dealing with the lenders. Most of time, the lender can come after you for the deficient amount if you go into foreclosure. Look at it this way. A short sale is an agreement upon settlement of the money, the lender agrees to take less then the full amount owed. A foreclosure is simply you walking away from your obligation and leaving the lender holding the bag. With that said, you are much better off selling the home in a short-sale rather then a foreclosure. I understand you may be angry with the lender but understand the lender is in this for business and nothing more so you need to take a business approach. You need to handle this correctly so it does not come back to bite you on the rear end.
Quick story. I was working with a gentleman that was told by his realtor to not make his payments, live in the home until the kick him out. Of course I advised against this method of handling the problem but he followed the advice of his realtor since he was the one that sold him the home. Needless to say the lender came after the homeowner for the deficient amount to the tune of $70,000. The lender got a judgment and attached his wages of $1,000 per month. Had the client approached this matter a little differently and negotiated a short-sale, he would have an extra $1,000 in his check every month.

What if my home is worth $200,000 then I owe on it?
This is very common right now. Home vales have dropped over 41% across the board in California. Most people are in a negative equity position and this turns the table on the lenders because they do not want a house they can’t sell and get the money back. The lenders will work with you if you approach them properly. You can get the balance you owe dropped to or at least close to the current market value. First things is you need to know how much your property is truly worth. Don’t just take the word of your neighbor who heard from another guy around the corner what he got for his home. Have a broker price opinon done on your property (call a broker and ask them for a BPO). They will understand what you are asking for.

What if I have a first and a second?
Not a problem, you can get both loans modified or just one. I would go after the second loan first and get them to drop the amount I owed as low as possible. Then I would have them lower the rate and lock it in around 4% or so. When you know what the second will do then go after the first and ask for the same thing.

I called a non-profit and they helped me but I did not qualify for a modification.
This is another one of those stories that break my heart. You need to understand how much work the non-profits are willing to do for you. Did they prepare the budget for you to give you the best opportunity to succeed or did they simple tell you to complete a budget and send it in. Make no bones about it the Non-profits are getting paid by someone and who do you think that someone is? Look at it this way, if you got into some trouble would you want a public defender to defend you or would you rather have a the best lawyer in the state stroll into the courthouse? Either you do it yourself or you hire a professional that does nothing but deal with lenders everyday if you want the best results.

I will be posting to this site periodically over the next couple of months. The best thing you can do is get yourself education on what you can do.

You need to be very careful when you consider working with a person that calls themselves a foreclosure or modification expert.
Don’t pay all fees inadvance unless they have an advance fee agreement form completed approved by the department of real estate.
Do not sign over the deed to your home under any circumstances.
Do not sell your property to someone at a discounted price. I know they told you that you will be able to buy it back after all this blows over but guess what, WRONG. You may have just lost everything.
Ask how many modifications they have done how long they have been doing modification.
Ask if they are CERTIFIED by the United Mortgage Modifiers of America Association.
What training have they had?
NEVER NEVER NEVER do business regarding your home or finances over the phone. Please do business with people that take the time to see you face to face. It is much better when you can go to their office and look them in the eye.

I hope this help you a little.

Please email me if you have any questions regarding Mortgage Modification.

Go to the United Mortgage Modifiers of America Association website to get more information. Remember to stay focused and positive and things will workout for you.

United Mortgage Modifiers of America Association is dedicated to helping people save their homes. We offer mortgage modification training to people wanting to modify their own mortgage as well as certify people to help others in the modification process. For more information see our website.

Until next time,

Kevin McGill
President
UMMAA
www.ummaa.vpweb.com
www.kevinmcgill.com
530-676-0982
kevin@kevinmcgill.com