Request Foreclosure Help
If you or someone you know is facing foreclosure and is seeking to engage an experienced CDPE, feel free to contact me immediately, and I will respond to your request on a priority basis. Taking action as soon as you can ensures that you have the most and best options available.×
If you have an FHA home loan, you may qualify for the Making Home Affordable Program and have great opportunities to request a home load modification.
Request A Home Loan Modification: CDPE help with the homeowner and stability plan to help homeowners avoid foreclosure and lower monthly mortgage payments.
Home Destination will help you determine if you meet the eligibility requirements for both Government Sponsored Modification Programs such as HAMP or in-house modification programs offered by the bank holding your home loan. The extent of principal reduction required depends on several factors and are unique to each borrower.
Most Minneapolis Foreclosures Can Be Prevented
Foreclosures in Minnesota can be prevented. Minneapolis and surrounding area homeowners facing foreclosure need to be aggressive and take action. Home Destination is here to help you explore your options and get help. Don't fight the foreclosure process on your own. If you're home is located anywhere in Twin Cities, we can help. The Minnesota Homeownership Center oversees a statewide network of trusted non-profit organizations with over 20 years of experience helping Minnesotans avoid foreclosure. Recent data gathered by the State of Minnesota calculates that on average 60 percent of Minnesota residents facing foreclosure qualify for help to prevent becoming another Minnesota foreclosed home. Homeowners seeking to exploring options will always find that Minnesota offers help 100% free, and available to anyone.
What Is A Home Loan Modification?
Wikipedia says, "A mortgage modification is a process where the terms of a mortgage are modified outside the original terms of the contract agreed to by the lender and borrower (i.e. mortgagor and mortgagee). A loan modification is the systemic alteration of mortgage loan agreements. In general, any loan can be modified."
How Did We Arrive At Such High Levels Of Requests For Loan Modifications?
The International Monetary Fund Explains it well: "At the crest of the bubble, loans were given to the most marginal borrowers, many of whom proved unable to make even the first monthly payment. As early payment defaults started to mount, and prices of lowest-rated mortgage-backed securities began to fall, market sentiment turned, dampening, and then reversing home price growth. This resulted in losses on ever wider swaths of the mortgages and securities they backed, as many of them were sustainable only if property values continued to appreciate. The feedback loop which had helped amplify growth in home prices was now dragging them down." Homeowners can request a loan modification when the value of their home falls below the mortgage note.
Home prices were inflated and peaked in mid-2006. As home property values began their steep decline, refinancing became more difficult. As adjustable-rate mortgages began to reset at higher interest rates (causing higher monthly payments), mortgage delinquencies soared. To balance it, today's interest rates are remarkably low and home values are only expected to increase over time. Other reasons include:
With the loss of jobs - dsnews.com says that more than half of our foreclosures and requests for loan modification stem from job loss. Our federal government has offered additional funding to states where unemployment is high to support localized mortgage relief programs for unemployed homeowners.
Reduction in pay - The State of New Jersey put forth a report closely linking the loss of income levels to home loan defaults, foreclosures and requests for a home loan modification.
Increased cost of living - In communities where the cost of living has risen sharply, generally it has been due to housing cost increases.
Inflated prices - Instead of showing resilience in the face of greater price volatility, over-the-counter (OTC) markets ceased trading as counterparties became untrustworthy and buyers fled.
Mortgage industry corruption: Irresponsible to near fraudulent underwriting practices in subprime mortgage lending largely explain the rise in the rate of seriously delinquent loans causing our mortgage crisis.
Arm mortgages - The high percentage of prime foreclosures accounted for by ARMs is out of proportion to the share of all prime loans that are ARMs. "While ARMs only accounted for 18 percent of prime loans reported in the MBA data in 2008, these loans accounted for 52 percent of all prime foreclosure starts." - www.huduser.org.
What Is The Homeowner And Stability Plan (HASP) ?
The HASP hopes to help homeowners whose homes have depreciated and because of this they have not been able to avail the refinance. Freddie Mac or Fannie Mae must be the first lenders and the current loan value must be more than the real time property value of your house. The second part of HASP is tailored to lower the monthly payments for debtors on the brink of foreclosure. This modifies the mortgage and lowers the monthly payments. Unlike the first part, this part does not require Freddie Mac or Fannie Mae to be the first lenders.
What Are The Benefits Of A Home Loan Modification?
A home loan modification can 1) lower your monthly mortgage payments to a more manageable amount, 2) determine your delinquency status with your mortgage company instantly, 3) fewer damaging to your credit rating than a foreclosure, and 4) to ultimately save your home from being foreclosed
Are U.S. foreclosure programs reducing monthly mortgage payments enough?
The answers varry. If the reduction amount means your family is saved from foreclosure, yes, it was enough. However, according to imf.org, as on April 12 2012, only 11 percent of permanent loan modifications included principal write-downs. Fewer than 1 million mortgages have been modified under the administration’s signature foreclosure-prevention program. Falling well below the current administration's projections, that is far short of the program’s initial goal of helping 3 million to 4 million struggling homeowners.
How Do I Find Out If I Am Eligible?
To find out if you may be eligible for a loan modification, refinance, short sale or other foreclosure prevention relief under the national mortgage settlement, first contact your mortgage servicer. To find the servicer on your loan, look for a contact phone number on your mortgage statement. Contact the bank or servicer found on your mortgage statement and ask who services or owns your home mortgage loan.
How Do I Avoid Mortgage Relief Scams?
Protect yourself from home loan modification or relief scams. Unfortunately, negative reports surface too often like CBS News. “Homeowners facing foreclosure are being targeted by predators, including those who use their law license to gain credibility and scam innocent Californians,” Harris said. “My office’s Mortgage Fraud Strike Force is dedicated full time to cracking down on these deceptive practices and protecting homeowners from fraud like this.”
If it is determined that you do not qualify for a loan modification, Home Destination will provide you possible options outside the remedy of a loan modification. Options may include:
A short sale
An Independent Foreclosure Review
A Deed in Lieu of Foreclosure
Consider a 20 year mortgage
Make Every Attempt To Make Timely Monthly Home Payments
If as a homeowner you feel you are falling behind on your monthly mortgage payments, take action to help stop foreclosure action and contact your bank to request renegotiating for lower interest rates, balloon payments or the missed payments. Request information on additional facets of the loan contract which you may have questions about. Missed payments quickly cumulate into a negative impact on credit scores, which is worth aggressively protecting.
What Happens When A Request For Home Modification Is Denied?
Some homeowners have reacted when receiving a home loan modification refusal by declaring bankruptcy. Others respond more positively to advice from lenders that offer clients who are in a similar situation to find a credible company that will assist with the process of loan modification. Bankruptcy carries the harmful consequence of damaging the borrower's credit score. A better option may be to make an official complaint concerning the bank's denial of the loan modification, which may benefit the homeowner by forcing the case to be reviewed.
Download the Request For Modification and Affidavit (RMA) Form from Making Home Affordable.
Download the Homeowners Tax Return.
Download a copy of Fannie Mae's Loan Workout Sheet For Conventional Loans.
Download the Dodd Frank Certification Form
Foreclosure Alternatives Help
Jenna Thuening provides you with the knowledge and connections for foreclosure and short sale alternatives. You may be unaware of your choices. Home Destination will help you find solutions that best fit your family's circumstances.
Foreclosure and Short Sale Report
Jenna Thuening provides Foreclosure-Short Sale Reports and Resource. There are several important distinctions and implication when choosing between a Short Sale and a Foreclosure. Home Destination's expertise will help you find your best foreclosure option.
Real Estate Housing Recovery
Follow Jenna Thuening's to best understand our national and local real estate recovery program, indicators, and current news. Know first-hand about the foreclosure and short sale opportunities, struggles, and successes of other homeowners.
Jenna Thuening, a CDPE can help you understand how you may benefit from the Mortgage Debt Relief Act Extension.
Eden Prairie MN 55334
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