Behind in your Mortgage Payments? FHASecure Might Help!

Did the rate on your mortgage adjust recently? Did you fall behind on your payments after the rate went up? Then you might be eligible for the FHA Secure program. FHA Secure is a program signed into law by President Bush in 2007. If you are on an adjustable rate mortage and your rate has adjusted - FHA Secure could help you get back on track!

To qualify for FHASecure, eligible homeowners must meet the following five criteria:

1. A history of on-time mortgage payments before the borrower's teaser rates expired and loans reset;


2. Interest rates must have or will reset between June 2005 and December 2009;


3. Three percent cash or equity in the home;


4. A sustained history of employment; and


5. Sufficient income to make the mortgage payment.

Essentially, FHASecure gives you a way to refinance out of your current adjustable rate mortgage into a long term fixed rate mortgage. Often times this is hard to do if you have fallen behind in your mortgage paymets. This is treated just like any other time you would refinance your home mortgage. There will be closing costs and fees - and other guidelines and rules need to be followed. Any lender who does FHA loans will be able to tell you more about FHA Secure - or call me and I will connect you with someone I work with.

Remember - the worst thing you can do is nothing!

Bo Buchanan, Kettley Realtors 58 Chicago Rd, Oswego IL. 60543 (630) 846-4663

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Loan Modification - Your Lender might help you create a better Loan!

>What is a Loan Modification?

In Loan Modification - your lender might forgive late fees, give you a better interest rate, switch you from an adjustable rate to a fixed rate, recapitalize missed payments & more! It's hard to believe any lender would be so cooperative - I know. But in light of the current mortgage & foreclosure crisis - lenders are looking for ways to work with borrowers. Essentially, Loan Modification is a way to wipe the slate clean of all missed payments, late fees, etc. and start fresh with the same lender.

>How does Loan Modification work?

As a Home Retention Consultant, I regularly approach homeowners who are behind in their mortgage to see if there is a way to get them back on track. Many times - I actually have a proposed loan modification from the lender. Before doing a loan modification, lenders might ask you to fill out a financial information form. It asks for all kinds of information you probably don't want to provide - current income & expenses, outstanding debts, etc. They want to get a full view of your current financial situation. Here's an example of a recent Loan Modification I delivered:

• Loan would be brought current with lender


• Credit reporting would start reflecting current loan payments


• Interest rate was reduced by 1.25%


• Loan term was changed from an adjustable rate to a 30 year fixed


• Loan balance was increased to reflect missed payments.


• Monthly payment was reduced by 5% - even though the loan amount went up significantly (this property was in the higher end custom market)


• An upfront payment of the new mortgage amount was required as an initial contribution.


• Next payment wasn't due for 1 1/2 months.

The lender will often require one mortgage payment at the time you sign the loan modification agreement. This is a sign of good faith that you can make the payments and will cover some of the late fees, back interest, etc. For most people - this is a good solution. But if you are unemployed, this really doesn't help.

>Will my lender work with me?

A loan modification isn't as common as a forebearance plan, but it's worth asking your lender about. Loan Modifications are regulated by HUD (Housing & Urban Development) - check out the Loan Modification FAQ at HUD. Look on the back of your most recent mortage statement. Yeah, all that tiny print. Each lender usually lists several different phone numbers or departments. Look for something that says loss mitigation or loan workout or home retention. Lenders always have a dedicated department that works with borrowers behind in payments. If all else fails, call the 800# and ask for the loss mitigation department.

>Ask Questions & Do Your Homework

There are many companies out there that will approach you offering to help negotiate with the lender on your behalf. Be careful - some are legitimate and others could be a scam. Most will charge you a months mortgage payment to create a workout - this will be in addition to any upfront money your lender might require. Truth is - you can call the lender yourself and see if they will offer a modification.

>Be Persistent!

You are dealing with large banks with many different departments sometimes spread across different states. People answering the phones have more work than they can handle. It isn't personal. No one is going to have as much incentive to get you a good deal as you are.

If you want more information - keep checking my blog for other Foreclosure Prevention Strategies. If you're uncomfortable doing a loan modification on your own, call me and I'll be happy to help in any way I can. For Free. Why would I do this? If I can help you prevent foreclosure now, I hope you will recommend my services to other people who might need help preventing foreclosure, selling a home or buying a home. It's a win-win situation.

Remember - the worst thing you can do is nothing. Persistence Pays.

Bo Buchanan, Kettley Realtors 58 Chicago Rd, Oswego IL. 60543 (630) 846-4663

IllinoisHouseHunter.com|OswegoHouseHunter.com|MontgomeryHouseHunter.com|YorkvilleHouseHunter.com

Loan Forebearance - Lender Phone Operators Are Clueless!

Yesterday I sat down with a pre-foreclosure client interested in keeping her home. The lender/Loan servicer was Ocwen Bank. As I sat and talked with her about options - we discussed a forebearance program. She thought this sounded like a good option so she pulled out her most recent mortage statement and called the lender. Of course - the back of their statement says something like - if you're behind in your payments call our collections department and talk to one of our payment counselors. Yeah, right. Nevermind the 20 minutes it took to get to the right person. 3 or for transfers later - we think she got the right department. Problem was - the person on the other end of the phone said there was no forebearance program. That's right. When asked three times "Do you have a forebearance program"...the anser kept coming back "NO".

After a quick search on the web - I found several references on Ocwens website to their success in customer forebearance. Ocwen even boasts a 70% success rate for people put on forebearance over the last 2 years. When dealing with these large banks - you have to remember that the person answering the phone probably doesn't know much more about the company than you do. They sit in an office, charged witha particular task. If you don't fit the mold - they often don't know what to do with you. YOU MUST BE PERSISTENT. And it's going to take time. If you aren't getting anywhere - ask to talk to a supervisor.

Lenders always have a dedicated department that works with borrowers behind in payments. Don't bother with collections - they will just try to get a payment out of you. And forget that generic 800#. Even if, by some miracle - you actually get through to a live person, they will have no idea what you are talking about. They will just transfer you somewhere else - anywhere else!

Document who you talk to. Ask for a name each time you call. note the time you talked to them. Ask what department they are in. Ask where the call center is. In one call - you could be transferred to different departments in different states.

If you're having a problem communicating with your lender, put it in writing. Most people aren't aware of a RESPA rule that requires a lender to respond to your written inquiry. RESPA stands for Real Estate Settlement & Procedures Act. RESPA spells out particular rules for how real estate deals and loans must be handled. For exmaple, RESPA states that if you write to your lender regarding an innacuracy on your account or to dispute charges - they must acknowledge receipt of your letter in 20 days and respond with an answer within 60days. The best way to ensure this kind of communication is to send a certified letter to your lender. That way you have proof.

"Nothing in the world can take the place of persistence. Talent will not; Nothing is more common than unsuccessful men with talent. Genius will not; Unrewarded genius is almost a proverb. Education will not; The world is full of educated derilicts. Persistence and determination alone are omnipotent.......Calvin Coolidge, US President 1923-1929

Forebearance - A Payment Plan To Catch Up On Missed Mortgage Payments

>What is Forebearance?

If you're behind in your mortgage payments - you may be looking for an alternative to selling your home. I sit down with a lot of homeowners looking for any option other than selling. If you had a temporary hiccup in your income but now you're back on track - forebearance may be an option. Essentially, Forebearance is a payment plan that allows you to catch up on money you owe your lender. You must be able to make your normal mortgage payment in addition to the extra amount that you and your lender agree upon.

>How Does Forebearance Work?

In a typical forebearance plan - your lender will ask you to fill out an application. This application will ask for income and expense information to determine if you can actually afford a program. Not everyone gets approved. If you are approved -your lender creates a payment plan that allows you to make additional payments every month in order to catch up on what you owe. If you are behind 2 or 3 payments, you've also racked up some late fees and interest owed to the lender. If you're mortage payment is $1,200 dollars - that means 3 months of back payments would amount to nearly $4,000 with late fees and interest. That's a hefty chunk of change.

>Will My Lender Work With Me?

If you're wondering if your lender offers a forebearance program - they probably do. Look on the back of your most recent mortage statement. Yeah, all that tiny print. Each lender usually lists several different phone numbers or departments. Look for something that says loss mitigation or loan workout or home retention. Lenders always have a dedicated department that works with borrowers behind in payments.

>Think twice & do your homework!

If you really want to pursue this program - be careful and make sure you can afford the extra payments. IF YOU ARE JUST TRYING TO PUSH OFF THOSE PAYMENTS AND HOPE THINGS WILL GET BETTER, IT DOESN'T MAKE SENSE. All you will accomplish is owing more money and ending up in the same situation a few weeks or months down the road. If you miss one of these forebearance payments - your lender will just continue down the foreclosure path. Starting a forebearance program will temporarily halt any progress towards a foreclosure - but they don't have to start over when you miss a payment.

>Be Persistent!

You are dealing with large banks with many different departments sometimes spread across different states. People answering the phones have more work than they can handle. It isn't personal. No one is going to have as much incentive to get you a good deal as you are.

If you want more information - keep checking my blog for other Foreclosure Prevention Strategies. If you're uncomfortable doing a loan modification on your own, call me and I'll be happy to help in any way I can. For Free. Why would I do this? If I can help you prevent foreclosure now, I hope you will recommend my services to other people who might need help preventing foreclosure, selling a home or buying a home. It's a win-win situation.

Remember - the worst thing you can do is nothing. Persistence Pays.