Protecting yourself from loan modification scams

Protecting yourself from loan modification scams.

As your realtors, we're here to help you through these tough times! Sharon Boatwright RE/MAX Gold Greenhaven 916-825-4315 sharoninrealestate@gmail.com Visit our web site at: www.yoliandsharon.blogspot.com DRE License # 01207889 Yoli Manzo RE/MAX Gold Greenhaven 916-997-6934 yoli.manzo@gmail.com DRE License # 01184259 -Do you want to know what your home is worth? -The benefits of a short sale? -How can I buy a rental property? -Is it a good time to buy my dream home? Call us any time and we can discuss these questions. We would love to be your resource for all of your real estate needs and thank you for your referrals! *RE/MAX Gold Greenhaven does not perform any loan modification services nor endorse any companies or affiliates. These contents are strictly to provide information and resources for homeowners. Homeowners please be careful! Loan modification is an amazing financial tool and we're saving peoples' homes evey day, but of course there is risk and reward that we need to discuss. Don't believe the person who tells you exactly what you want to hear - if it sounds too good to be true then it is! Only work with someone who has earned your trust and comes to you through a referral. Ask the hard questions, demand proof of completed modifications, insist on time to go over your case both the best and worst case scenarios, and don't let anyone rush you. Call me with any questions or to schedule a free consultation. Sincerely, Norm Schriever Loan Modification Specialist Sacramento Foreclosure Help.com 916-548-6350 norm@sacramentoff.com These are some ways people are being ripped off and what to do to protect yourself. 1. Fake authority. Someone calls you on the phone and claims a "special relationship" or to have an "inside person" with your lender. Telemarketers (though they say they are calling from an attorney's office) even go so far as to say they have something to do with a government program that can help you. Watch out for official-looking mail that is not from your lender but a modification con artist. 2. A middle man to a middle man. Everyone wants a piece of the pie and there are thousands of people saying they can get you a loan modification, but most of them have little or nothing to do with the actual process. More middlemen means more fees and zero quality control or accountability for you, the homeowner. 3. Never use someone you can't meet with...at their office. Beware of out of town firms. As we speak there are phony companies popping up by the day, especially in Southern California, who have one goal - to take your money. NEVER do business with someone over the phone you can't meet with at their office to check them out. Remember anyone can tell you anything over the phone (I could tell you that I'm 6'4" and have a full head of hair!) but it probably ain't so! If they were really that good you would probably be calling them instead of them calling you. 4. Selling you the sunshine. Loan modification telemarketers are operating off a script and telling you exactly what you want to to hear so you'll write a check. Stop. Think. A true professional will go over the risk and reward of their service and not just give you all the good news (that they can't guarantee in writing). 5. Stay away from Craigs List Craigs List is great if you want to buy a nasty used futon but please do not find your representation for important financial services there. Think about it - there are hundeds of thousands of dollars at stake so get it right! 6. Make sure you get advice about all of your options. Generals want to go to war, doctors want to operate, and loan modification salesman want to...you got it! This is a very serious process and you need to get the total picture including the foreclosure process, short sale, bankruptcy, taxes, deficiency judgments, credit, etc. Clients need to know all of their options and the pro's and con's of each before proceeding. 7. Never give credit card or financial information over the phone. This should be self explanatory but I'm continually amazed how easily people hand over their money without ever meeting the company. They may clean you out and come back for more. Have you ever heard the saying "a fool and their money are easily parted?" 8. Get proof of successful modifications. The guy on the phone will tell you about all of these amazing things, but ask for proof of their recent successful files - evidenced by before and after mortgage statements - and they'll start backpeddling so fast your head will spin. The proof is in the completion...not what they say they'll do! 9. The principal reduction trap. This is where they get a lot of people. Many homeowners are so angry and emotional about their house going down in value that they are easy prey for salesman who promise that they'll lower their house down to fair market value. Here's the truth - you can afford to keep your home based on what your monthly payment is, not based on what it's worth, and lenders know this. Principal reduction does happen, but maybe only 10% of the time (for everyone) and more so with some lenders (Litton and US Bank). Even if the bank reduces your principal, who do you think might get a 1099 for that amount as taxable income? Be careful what you wish for! 11. Get everything in writing. Get everything documented before you commit to doing business, including physical addresses, names of attorneys or brokers and staff, state license numbers, phone numbers, agreements, receipt of payments, scheduled points of communication, refund policies, and proof of correspondence with your lender.

Where can I go for free, honest advice and help? www. SacramentoForeclosureHelp.com, 1-800-504-8816 Neighborworks, 916-452-5356 Sacramento Housing and Redevelopment Agency, 916-440-1300 Better Business Bureau, 916-443-6843 HOPE line, 1-888-995-HOPE Department of Consumer Affairs 1-800-952-5210 California Department of Real Estate, 916-227-0864 We do a complimentary, no pressure review of your situation. Even if you already started with another company, want to use someone else, or want to attempt the negotiation yourself we would love to talk to you and give you information so you make the best decision.

Treasury announces relief requirements home loan modifications

On March 4th, The Obama Administration announced new U.S. Department of the Treasury guidelines to enable servicers to begin modifications of eligible mortgages under the Administration's Homeowner Affordability and Stability Plan � announced by President Barack Obama just two weeks ago. The release of detailed requirements for the "Making Home Affordable" program facilitates implementation of the critical provisions that will help bring relief to responsible homeowners struggling to make their mortgage payments, while preventing neighborhoods and communities from suffering the negative spillover effects of foreclosure such as lower housing prices, increased crime and higher taxes.

Making Home Affordable will offer assistance to as many as 7 to 9 million homeowners, making their mortgages more affordable and helping to prevent the destructive impact of foreclosures on families, communities and the national economy.

The Home Affordable Refinance program will be available to 4 to 5 million homeowners who have a solid payment history on an existing mortgage owned by Fannie Mae or Freddie Mac. Normally, these borrowers would be unable to refinance because their homes have lost value, pushing their current loan-to-value ratios above 80%. Under the Home Affordable Refinance program, many of them will now be eligible to refinance their loan to take advantage of today's lower mortgage rates or to refinance an adjustable-rate mortgage into a more stable mortgage, such as a 30-year fixed rate loan.

GSE lenders and servicers already have much of the borrower's information on file, so documentation requirements are not likely to be burdensome. In addition, in some cases an appraisal will not be necessary. This flexibility will make the refinance quicker and less costly for both borrowers and lenders. The Home Affordable Refinance program ends in June 2010.

The Home Affordable Modification program will help up to 3 to 4 million at-risk homeowners avoid foreclosure by reducing monthly mortgage payments. Working with the banking and credit union regulators, the FHA, the VA, the USDA and the Federal Housing Finance Agency, the Treasury Department today announced program guidelines that are expected to become standard industry practice in pursuing affordable and sustainable mortgage modifications. This program will work in tandem with an expanded and improved Hope for Homeowners program.

With the information now available, servicers can begin immediately to modify eligible mortgages under the Modification program so that at-risk borrowers can better afford their payments.