It’s likely your current mortgage says your home is worth one amount but its really worth less, a lot less. These “upside-down” mortgages are happening a lot in today’s economy. So what do you do when your home isn’t worth as much as your paying and the economy no longer allows you the ability to pay? First you use the online resources you have, eater at home or a local library, to show the lenders your house is worth less then whats reflected on your mortgage balance. You can do this by comparing the price of similar sized houses in the same neighborhood as your house. You can also have an experienced mortgage attorney examine your loan documents to make sure everything is in order.

Writing a hardship letter is one of the hardest things to do in this process,but its also very important. If you need help with this you can use one of the mortgage modifications inexpensive services or research this before hand. It’s important that your hardship letter has a number of details that are essential to getting your mortgage modification approved. The home owner needs to include a completed life of loan history to see all the charges and fees you’ve attempted to or failed to pay. Also include inflation and/or loss of property values.

You’ll want to show them all your income and expenses. Your mortgage payment should not exceed 31% of your yearly income. If your spending more then that a mortgage modification is a good idea. Your expenses should be itemized and detailed. This list should include: your current mortgage payment, utility’s, food, if you are making payments on a car, your insurance, a 2nd mortgage, if you have one, and anything else you are currently paying on.

These Mortgage Modification Tips should help you understand some of the things you need to know when getting all your documentation together. Remember to do your research and find a mortgage modification company that’s right for you. This company will be able to help you better understand everything and make the process easier on you. You’ll also want to make sure you are as organized as possible be careful when itemizing your expenses and get accurate data on your income. Take into consideration how hard the hardship letter will be for you to right. Try to be in a place where you can be away from all the distractions in your life and think clearly when your writing.

For detailed facts and essential tips about how you can be approved for a mortgage modification, visit this simple, easy to understand loan modification guide and resource: http://HomeLoanModifications101.com

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Home sales have responded with some growth, which has been credited partially to the First Time Home Buyer’s Stimulus. 4 million people have refinanced their homes to save $7 billion a year. Over a million people have received loan modifications, reducing their monthly payments by an average of over $500.00 a month. The real estate market has stabilized somewhat, and interest rates are down.

There have been some changes instituted since the program’s introduction. The First-Time Home Buyer’s Program was extended from November 2009 to April 30, 2010. The sale must be made before that date and closed before June 30, 2010, to be eligible. The requirements were also loosened up to allow partial credit for those who have owned a home, but meet certain criteria. This is a tax credit taken on the homeowner’s income tax return.

The Refinance Program was extended from June 10, 2010, until June 30, 2011. The amount refinanced can now be up to 125% of the value of the home. This was increased from 105% to assist more homeowners who lost equity in their homes when the housing prices dropped.

The Loan Modification part of the program has seen the addition of new programs to help those who are not eligible for the Mortgage Modification Plan. There are funds directed to locales that have been the most affected by the economic downturn. There is also a program called HAFA that helps work out deed-in-lieu of foreclosure agreements and short sales. There have been several changes to the program, and hopefully, even more homeowners will avoid foreclosure.

For must know facts about how you can get approved for a Obama’s loan modification, visit our blog at http://LoanModificationsHelp.net/ to get help today.

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This program was set up to help millions of Americans afford the rising cost of home ownership and the administration has set aside nearly 75 billion dollars for this purpose. To utilize these funds, the program makes use of incentives and subsidies to lower the interest rate on the loans taken by millions of Americans.

This program has two options

1. Home affordable Refinance

2. Home Affordable Modification Program

Home affordable Refinance

This program is for supporting current homeowners who have lost considerable stake in their home but are currently in the process of paying their mortgage.This gives the necessary finance and funding to current homeowners so that they are able to refinance their homes. If an owner is unable to lower the interest rate on their loan, they can now, as part of the program, seek a loan which is nearly 105% of the value they would get by putting their home on the market for sale.

Qualifications Needed for Home affordable Refinance Program

1. The person who is applying for the program should be the owner of the home they are currently living in.

2. Should be making their payment of mortgages on time and without any delay.

Home Affordable Modification Program

Under this program, if the homeowner has taken a home loan, then some modifications can be made to the loan to lower interest rates and prolong payment terms. The borrower will be required to make repayments which are 31% of his gross monthly income. It can lower interest as low as 2%. This program has been designed to provide aid to families who are in an economic crisis and are struggling to avoid foreclosure of their homes.

Qualifications Needed for Home affordable Modification Program:

1. The person who is applying for the program should be the owner of the home they are currently living in.

2. The person must be facing trouble in meeting the payment requirements of their current mortgage loan.

The Making Home Affordable Modification and Home Affordable Refinance options are both excellent ways for struggling homeowners to regain good financial footing.

For detailed information on how to obtain a Home Mortgage Modification, visit http://www.MortgageModificationtips.com.

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The information below will help you better determine if you have been a victim of mortgage fraud or predatory lending.

Have You been a Victim of Mortgage Fraud?

* Have you been encouraged to falsify certain information on your loan application?
* Have you been asked to leave certain signature lines blank on a loan form?
* Has there been any alteration/s made to the information you supplied in your mortgage loan application?

Indications of Predatory Lending

Where you not given a copy of any of the following disclosure agreements?

* Good Faith Estimate
* Special Information Booklet
* Truth in Lending
* HUD-1 Settlement Statement

* Have you refinanced your mortgage several times? In each instance, has your monthly mortgage payment and/or total amount owed increased?
* Do any of your mortgage documents say that when your payments are late, your interest rate will change to accommodate “daily interest” that you need to pay?
* If you want to pay off or refinance your loan, are there any pre-payment penalties indicated?
* Is your loan amount higher than your home’s value?
* Do you have any unexpected costs in your settlement that were not discussed with you prior to the settlement?
* After the settlement, did you find your monthly mortgage payments to be higher than you anticipated based on the initial disclosures?
* After making a series of low payments to your loan, there is still a large lump sum or “balloon payment” due to your entire loan balance. Will you need to refinance thru another loan to pay that lump-sum?
* Were you encouraged or required to get credit life insurance? Insurance that will repay the debt in the event of a death or disability.

Note: Credit insurance is optional and should not be imposed to borrowers. You must decide carefully whether you are going to purchase credit insurance because it considerably affects the cost of the loan transaction.

MBA and its fellow supporters actively fight to control, if not eliminate, predatory lending. In fact, borrowers are being made aware that there is a Borrower’s Bill of Rights. This gives the borrowers some form of protection against predatory lenders.

Federal Predatory Lending Laws
The following are laws now in effect at the Federal Reserve that gives you rights on certain issues during the closing process:

Real Estate Settlement and Procedures Act (RESPA)

This requires disclosure of mortgage processing transactions and other fees that could affect the cost of settlement services. It is a consumer protection statute, enforced by HUD, that aims to make consumers well-informed in the home buying process.

Truth in Lending Act (TILA)

Enacted under the Consumer Credit Protection Act in 1968, which requires creditors to disclose information to consumers in relation to why they are being charged, what for, and how much.

State Predatory Lending laws
Predatory lending laws can vary from state to state. Know the laws in your area that protects consumers against abusive lending practices like excessive fees and rates. High fees may compromise pre-payment penalties and credit life insurance.

List of fraudulent home loan modification practices
Desperate home owners would potentially jump to every opportunity to get a mortgage modification to avoid being kicked-out of their homes. It is not surprising, that over-promising practices will start to occur and loan modification companies will take advantage of homeowner’s vulnerability.

Your Guide To Detecting Loan Modification Fraud

* The “high-pressure, cash-up-front” type of sales business tactics. Be suspicious of pushy salesman and mortgage modification companies that require up front fees..
* Never pay a fee for housing counseling services.
* Never sign anything. Unless you are working directly with your mortgage company, do not sign anything, such as, a transfer of deed.
* Never submit mortgage payments other than to your mortgage company.

Be alert. Remember that the official place to go for mortgage modification services is the governments Making Home Affordable website. You can find information related to the mortgage modification process. In reality, fraud does not only occur in mortgage modifications. Oftentimes, it starts from the moment a borrower shops for a loan.

Learn more about Predatory Lending Laws & Get your Free Loan Modification Kit. This loan modification kit includes everything to Stop Foreclosure and Save Your Home with a loan modification. Includes Loan Modification Worksheets, Loan Modification Forms, detailed instructions, lender Rolodex, 50 bank specific forms, And Much More! Absolutely Free!

Visit our website for How to articles, mortgage calculators, free sample hardship letters, foreclosure timelines, and dozens of informative articles on loan modifications and foreclosure. Stop by to check out our growing library of free financial kits. We currently have bankruptcy kits, credit repair, and loan mod with more on their way!

FreeDIYkits
“Helping Homeowners Help Themselves”

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Negotiation

1. Before going for a mortgage modification, find out the status of your finances and fix an income which you can bring in each month. Know how much you spend on bills and where you can make some cost cutting. Some non-profit counseling services can help you with this and also guide you for a negotiation with your lender.

2. Consult with your lender regarding the loan modification requirements and inform your lender about your situation and how he or she can help you to overcome this.

3. Be ready with an answer against the lenders inquiries about your ability to repay the loan. It is better to submit an initial proposal to your lender.

4. Ask the lender for forbearance or to postpone payments for a couple of months until you recover your financial problems in case you encounter some dire circumstances in the future.

5. In case you possess an adjustable rate mortgage (ARM) with higher monthly payments, ask your lender to switch your mortgage to a fixed rate mortgage and assure him or her about your ability to pay a fixed rate mortgage.

6. Documents required by the bank are: a letter documenting and explaining your hardship, proof of current income and capability to make modified loan payment, detailed monthly expense report or budget, etc.,

Benefits

The process of Loan Modification itself is designed to get the maximum benefits to borrowers and a few of them are as follows:

a) Status-quo on credit rating- this process does no harm to you.

b) You can avoid foreclosure and you are free to sell the home later

c) Terms of the loan are easily modified to work within borrower’s financial means.

d) Families are relaxed as they can stay in their homes with peace of mind and without fear of losing their home.

Mortgage Modifications are a must for those who have big debt, expect foreclosure at any time, or are in fear of losing their home. Hence, this program will be a blessing to any borrower who is struggling to make their monthly payments and constrained to lead a life of hardship in view of accelerating expenses and economic downturn.

For detailed information on How to Obtain a Mortgage Loan Modification, visit MortgageModificationTips.com

Article Source: http://EzineArticles.com/?expert=Jason_Witts

There are programs available through the Federal government and administered by banks and other lending institutions. The Federal program, called Making Homes Affordable, is available to homeowners who have a good payment history on an existing mortgage owned by Fannie Mae or Freddie Mac; however, many lenders provide their own programs that do not have this requirement, so you should talk to your lender and see what programs they have available. You will have to select the program that is right for you.

These programs can modify your existing mortgage in a number of ways-they can lower the interest rate on your home to as low as 2%, extend the term of your mortgage to as far as 40 years, and possibly forbear or forgive a portion of your mortgage balance so that your mortgage payment is only 31% of your monthly household income.

The specifics of the implementation of the program vary from lender to lender. These programs are designed to be implemented in two stages. The first stage is a trial period for borrowers. Once borrowers can successfully document that they are able to meet the new payment schedule, the lender can convert the trial modification to a permanent modification. The schedule for conversion from a trial period to a permanent loan modification is not spelled out, so lenders vary in how long a trial period they require.

If you are having trouble meeting your mortgage payment, the first order of business is to talk to your lender. They may have a Home Mortgage Modification in place, or they may have several programs, and you need to find the right one depending on your situation. Lenders are not in the business of owning property-they do not want to foreclose on your property, and want to accommodate you as much as they can.

For detailed information on How to Obtain a Home Mortgage Modification, visit MortgageModification411.net

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Under this new legislation, homeowners can elect to refinance their existing mortgages. In the economy of today, many homeowners are struggling just to make ends meet once they have paid their monthly mortgage payments, which have oftentimes tripled in the case of some of the adjustable rate mortgages out there. And with fewer people being employed, major layoffs at big companies, and a higher cost of living, these same homeowners may be finding it more difficult to have their income be sufficient to meet the demands of huge mortgage payments and living expenses for their families. These homeowners have a unique opportunity to refinance to a fixed rate mortgage that they can afford while easing the threat of foreclosure or bankruptcy.

Are You Eligible For Mortgage Modification?

The problem with refinancing prior to this legislation is that many homeowners owed far more to their mortgage lender or bank than their homes and properties were even worth. Most lenders would not dare touch a mortgage under those circumstances. In fact, those homeowners who did not have at least twenty percent equity in their home would not qualify for this type of modification under the old rules. Fortunately, now homeowners have a bigger window to work with, as they can refinance as long as their mortgage amount is for no more than 105% of the current market value of the home. Additionally, all of the loan products that were written by Freddie Mac or Fannie Mae (or one of their holdings) are eligible.

Affordable Mortgage Modification

The home affordability program makes certain that borrowers who refinance can truly afford their payments. No payment amount is approved that is more than thirty-one percent of the gross monthly income of the borrower. And because the interest rate on these new mortgage modifications can be as little as 4.5%, borrowers can see a huge savings over the course of mortgage repayment.

Online Mortgage Modification

Applying online for these types of government sponsored mortgage modifications is the easiest way to qualify fast and start saving now. Online lenders who are qualified to write these mortgage refinance loans have an easy to follow application process that allows you to do most of the paperwork over the Internet and to submit documentation via email or facsimile transmission. Online lenders can also tell you in advance how much your mortgage payment will be once it is modified under the terms of the Economic Recovery Act and your exact rate of interest, which allows you to have a better idea of whether you would benefit from the modification in the first place and in the long run. Online lenders are well-versed in writing mortgages with expedience, which can make a big difference for homeowners who are struggling and need relief now.

Kate Ross has a Master in Finance and has been a university teacher as well as a financial consultant for years. She specializes in Unsecured Loans and also in helping people to get approved for Guaranteed Loans for Bad Credit, home loans, guaranteed loans, bad credit auto loans, guaranteed credit cards among many other financial products. For further information, please visit SpeedyBadCreditLoans.com

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The securitized mortgages are subject to rules created in the investment documents and rules issued by the Internal Revenue Service to secure favorable tax treatment for securitized loans. These rules constrain the ability of the banks to modify mortgages. Such rules may include the following:

(a) Imposing the restrictions on mortgage modification required to be made to qualify for pass through tax treatment under IRS regulations.
(b) Imposing restrictions upon the number of mortgages in the pool which may be modified.
(c) Providing a procedure and fees to be paid for foreclosure but no procedure to modifying the loan as an alternate dispute resolution.
(d) Creating securities with classes of ownership (”tranches”) with adverse and opposing financial interests resulting in so called “tranche warfare” so that a modification which favors one tranche may work a detriment upon another.
(e) Restricting the ability to lower interest payments on the note.
(f) Restricting the ability to increase the number of payments to be made.
(g) Restricting the ability to defer payments.
(h) Restricting the ability to extend the term of the mortgage.
(i) Restricting the ability to impose a temporary moratorium on payments.
(j) Restricting the ability to accept “short sales”.
(k) Creating potential liability to a specific class of certificate holders by entering into a modification agreement required for an alternate dispute resolution.
(l) Requiring the servicing agent to purchase any loan which has been modified.

These restrictions work a modification of the Transaction without the consent of the borrower. This constitutes either a breach of contract or a tortious interference with a contract, or both. Failure to have obtained the consent of the borrower to a securitization of the mortgage is a legally fatal flaw.

Following the rules imposed on securitized mortgages constrains and restricts the ability of banks to modify loans. Even where the loan is modified only by extending the term of the loan so that the original principal and interest rate are unchanged, the cash flow generated may not be sufficient to permit modification of the loan if the investors hold fixed rate bonds. In short, banks make fees when they foreclose; banks incur actual and potential liability when banks modify mortgages.

The Administration and the banks have shown nothing more than a willingness to pay lip service to the achieving loan modifications instead of foreclosure. Documents issued by federal financial agencies and Congressional Committees show that the government is fully aware of the institutionalized constraints but loath to discuss such constraints with members of the public. There has been no serious effort by our government to address and overcome the institutionalized constraints to loan modification. Until there is a serious countervailing force to compel lenders to modify mortgages which overrides the institutionalized constraints, the sorry rate of foreclosures will continue unabated. Unless such a countervailing force emerges from the private sector or from a need to respond to massive political pressure, very little is likely to change.

The discussion above has shown that the note holder disappears in securitization and the securitization works an illegal modification of the Transaction without the consent of the debtor. As organized, securitizations have a third major difficulty. Typically a third party to the Transaction is required to make any monthly payment to the certificate holders which is in default. In other words, if a specific mortgagor fails to make the January payment, a third party will make the payment for the mortgagor. Accordingly, the allegation in a foreclosure proceeding that the January payment was not made and is in default is false. The January payment was paid to the investors. How many times must the investors be paid the January payment? Once is enough. Is there any requirement in the Transaction or anywhere else that only the named mortgagor can make the required January payment to the servicing agent? Absolutely not.

It may well be that such a third party who has made payments in default is entitled to a legal recovery against the debtor. However, that party is not a party to the mortgage or a successor in interest to the mortgagee and therefore has no right whatsoever to foreclose to effect repayment. To use the mechanism of foreclosure to recover the third party debt perpetrates a fraud and misuse of the foreclosure proceedings. The mortgage is not intended to secure repayment of anyone. It is intended only to secure repayment of the mortgagee and the mortgagee’s successors in interest. In the case of securitization, the third parties making payments in default are indisputably not the successors in interest of the original mortgagee.

It is but a question of time until Congress and the courts are compelled to recognize that securitization, as practiced and without any public regulation, has resulted in “Morgicide”, the illegal and intentional destruction of mortgages by Wall Street. The upshot of this Morgicide will be the realization that the nation’s largest banks and financial institutions have caused millions of illegal foreclosures. Think of it this way. Your neighbor purchased a new car with an installment credit loan. Your neighbor has failed to make monthly installment payments. The dealer has the right to repossess. Instead, I come along and take the car. The police arrest me and charge me with Grand Theft Auto. At trial, I defend myself by arguing that since my neighbor was in default, I had the right to repossess the car. Sorry, this will not work, and I am going to jail.

The judge will rule only the dealer, not me, has the right to repossess. I acted as a mere thief in the night. Similarly the financial institutions acting as plaintiffs in the foreclosure of securitized mortgages are acting like the thief in the night. They are taking the house on behalf of the secured creditor without being the secured creditor.

So far, just as in the Sherlock Holmes mystery known as “Silver Blaze” where the dog did not bark in the night, our judges have been suspiciously silent. This will change as more and more lawyers become familiar with securitization. Look to see multibillion dollar class actions suits for wrongful foreclosure as part of the shameful legal legacy of unregulated securitization. As long as lawyers chase ambulances and sue for malpractice, Morgicide will not go unpunished.

For more information contact:
Richard F. Kessler
Documentary Clearing House and Associates, LLC.
941-924-5608,
richardfkessler@verizon.net
http://www.documentaryclearinghouse.com

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DCH may not represent you legally or provide legal advice. Please give us the opportunity to help you save your home and delay foreclosure by using our Stop Foreclosure Package for the price of one half month’s rent. You cannot afford to miss this opportunity to try to save your home.

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