What if you don’t qualify for loan modification?

 The majority of the mortgage modification programs from the larger lenders only are available to homeowners who either already are in default or are at risk of defaulting on their primary residences.

However, some homeowners, in particular those who may default on a vacation home or an investment property, have some options available.

 

KEEP THIS IN MIND

 

Homeowners who are in default or at-risk of defaulting should contact a reputable credit counseling agency to discuss possible options other than foreclosure. When calling a credit counseling agency, the homeowner should have their loan number, most recent mortgage statement, bank statements and a letter demonstrating financial hardship. To find a credit counselor, visit the U.S. Dept. of Housing and Urban Development’s (HUD) Web site at

http://www.hud.gov/offices/hsg/sfh/hcc/hcs.cfm?webListAction=search&searchstate=CA or the nonprofit organization National Foundation for Credit Counseling at http://www.nfcc.org/.

 

Homeowners should contact their loan servicer as soon as possible to try to work out potential solutions. According to the Federal Housing Finance Agency (FHFA), some borrowers who do not meet the requirements for an existing mortgage modification program may still be considered for a loan adjustment based on personal circumstances.

 

If a mortgage modification is not possible, homeowners may want to consider a short sale — sell the home for less than the amount of the mortgage. Although a short sale enables a homeowner to

avoid foreclosure and often causes less damage to the homeowner’s credit score than a

foreclosure, the lender must agree to accept the loss and in some cases the homeowner may have

to pay taxes on the difference. Also, many lenders are overwhelmed by the large number of short

sales being submitted by homeowners, so it could take longer than usual to receive a short-sale

acceptance from the lender.

If a homeowner cannot qualify for a mortgage modification or a short sale, some lenders will consider a deed in lieu of foreclosure, where the homeowner transfers the title to the lender in exchange for debt forgiveness. Properties that have additional debt, such as home equity lines of credit or additional mortgages, may not qualify for a deed in lieu of foreclosure. Homeowners who have additional debt tied to the property must share this information with their lender for consideration when applying for a short sale.

 

To read the full story, please click here:

http://online.wsj.com/article/SB122643638528218301.html

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About lcartolano

Hello! I am a Real Estate consultant working and living in the California East Bay (Oakland, Alameda, Piedmont, Berkeley area) with my husband and two young boys. I am a transplant from New Jersey and have been living on the West Coast for the last 17 years. I became a Real Estate Consultant because I enjoy working with people, and helping clients find the homes of their dreams, or reap the benefits of their investment in Bay Area real estate. It’s important to me to listen to your needs, provide the highest level of service and follow through on what needs to be done to and help you achieve your real estate goals. e-PRO Certified As more and more consumers begin their search for real estate-related information on the Internet, it is critical that real estate professionals are well educated in the use of technology to the benefit of both the consumer and the agent and/or broker. Realizing the importance of technology training, the National Association of REALTORS® (NAR) now offers its members the e-PRO certification course -- the only technology certification program offered by NAR. The program is designed to prepare real estate professionals to make the most of Internet technology and to identify, evaluate, and implement new Internet business models. The elite group of course graduates represents only one percent of all REALTORS in the country including Lisa Cartolano of Alain Pinel Realtors. QSC Certified QSC (Quality Service Certification) is a new training program for real estate professionals. It requires agents to follow specific procedures and introduces standards of practice for the benefit of the consumer. When consumers spend significant dollars for a service, they expect consistency, reliability, accountability and responsiveness from that professional service provider. Until now, the absence of service standards in the real estate industry contributed to the inconsistency of satisfaction and value experiences by the home seller and home buyer. Thus the Quality Service Certification program was created to offer greater value to the home buyer and home seller by providing consistent, reliable, accountable and responsive service for every real estate transaction. this service is provided by a Quality Service Certified real estate practitioner. Alain Pinel Realtors is proud to announce its association with Lisa Cartolano. An integral part of Alain Pinel Realtor´s dedication to excellence is the collaboration of high caliber professionals. Lisa Cartolano certainly fits that profile. Lisa brings to APR a wealth of skill, experience and professionalism, and joins a group of distinguished real estate professionals who are all part of the most sophisticated and technologically advanced marketing firm specializing in distinctive properties and estates. Alain Pinel Realtors is dedicated to excellence and our association with Lisa Cartolano is a bright example.
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One Response to What if you don’t qualify for loan modification?

  1. beachdude says:

    Loan modification mortgage is a process whereby a home owner’s mortgage is modified and both the lender and homeowner are bound by the new terms of the new mortgage. The most common loan modifications are listed below:

    lowering the mortgage interest rate
    reducing the mortgage principal balance
    fixing adjustable interest rates within the mortgage
    increasing the loan term throughout the mortgage
    forgiveness of payment defaults and fees
    or any combination of the above

    Check out this Public site at http://LOANMODIFICATIONMORTGAGE.ORG

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