Archive for Loan Modifications
HAMP July Scorecard…Are Loan Modifications Really Working?
Posted by: | CommentsIf you are a Las Vegas Homeowner facing a foreclosure or in danger of defaulting on your home loan(s), it is critical to understand all of your options to avoid foreclosure.
Take advantage of our FREE REPORT: “10 Alternatives to Foreclosure – Know Your Options” and download it today. Just complete the form in the sidebar and you will receive the report via email.
One of those 10 Alternatives to Foreclosure is a Loan Modification. Contacting your lender is the first step. Many lenders (loan servicers) are participating in HAMP (Home Affordable Modification Program) or have their own loan modification guidelines and procedures.
If you are a Las Vegas homeowner who is currently attempting a loan modification or have been denied a permanent modification or are unable to continue making the trial payments, you still have options to avoid a foreclosure. One of those options to consider is a Las Vegas short sale. The good news?….. you have already gathered and submitted the required documentation to the lender that they also require to approve a Las Vegas short sale.
Contact us today for a free Las Vegas Short Sale Consultation to discover if a short sale is the best course of action for you.
The Making Home Affordable Program is the government’s initiative to reach out and help homeowners facing foreclosure. The program has met with much criticism in the press, the real estate industry and from frustrated homeowners alike. Let’s take a look at the real numbers for HAMP loan mods through July 2010. Download the full report: July-2010-HAMP-Report
- Eligible borrowers identified for the program = 1,456,363
- Trial Plans have been extended to 1,553,925 borrowers. Of that total, 1,307,489 borrowers started loan modification trials.
- Of those who started the trial loan modifications, 616,839 could not complete the three-month trial period and will likely lose their homes.
- Borrowers who are still in trial loan mods = 255,934. This is down from 364,077 last month. There is still a large number of borrowers in limbo since only 165 thousand trials were started over the last 5 months.
- There have been 421,804 permanent modifications to this point. These are people who otherwise would have lost their homes.
- If you are a Las Vegas, Henderson or North Las Vegas homeowner with a distressed property and want to try and remain in your home, then attempting a loan modification is a definite first step…. Contact your lender. Statistically speaking and based on the results to date, roughly 32% of the trial loan modifications have been permanently modified.
- If you fall into one of these categories… You may want to consider a streamlined short sale… Contact Us for a Foreclosure Alternatives Consultation.
- you are currently in a trial loan modification and having difficulties making your modified payment
- you have been disapproved for a permanent loan modification
- you don’t qualify for a loan modification at this time
- you don’t want loan modification and want to sell the property
Kathryn Bovard is experienced with the often lengthy and stressful Las Vegas short sale process. If you are contemplating a Las Vegas short sale , she can assist and navigate you through the entire process. Call Kathryn direct at 702-348-7191 to schedule a short sale consultation today.
3 Indicted in Nevada Foreclosure Scam….Be Aware of Foreclosure Rescue Scams
Posted by: | CommentsOverall, Nevada has done a pretty good job of cracking down on all the individuals who took advantage of so many distressed property owners…as this article attests to.
Three people were indicted for allegedly operating a foreclosure rescue scam in Las Vegas during 2008 and 2009, according to the Nevada Attorney General’s Office. The indictment alleges that Doninador Palalay a.k.a. Dominador Palalay, Marie Tejada Medina and Benjamin Aquino Moraleda III operated a foreclosure rescue scam under the business name PDM Financial Group.
It is still good advice to be aware of foreclosure scams … read our previous posts on the subject and for some helpful tips…
Be Aware of Nevada Foreclosure Scams
Loan Modification Companies Must Have NV State License
Kathryn Bovard is experienced with the often lengthy and stressful Las Vegas short sale process. If you are contemplating a Las Vegas short sale , she can assist and navigate you through the entire process. Call Kathryn direct at 702-348-7191 to schedule a short sale consultation today.
What Short Sale Sellers Should Know About the New Short Sale Guidelines (HAFA)
Posted by: | CommentsOn November 30, 2009, the Treasury Department released guidelines and forms for its new Home Affordable Foreclosure Alternatives Program (HAFA). HAFA is part of the Home Affordable Modification Program (HAMP).
Let’s discuss some of the key points outlined in these new guidelines and try to clear up misconceptions:
- Not all Loan Servicers have to follow these guidelines! In fact, it applies only to Servicers who have signed agreements to participate in HAMP are also required to comply with HAFA. A list of servicers participating in HAMP is available at MakingHomeAffordable.gov.
- HAFA applies to loans not owned or guaranteed by Fannie Mae or Freddie Mac, which will issue their own versions of HAFA in coming weeks.
- Complements HAMP by providing a viable alternative for borrowers (the current homeowners) who are HAMP eligible but nevertheless unable to keep their home. Visit MakingHomeAffordable.gov to find out if you may be eligible for a HAMP loan modification. Basic eligibility criteria:
- The property is the borrower’s principal residence
- The mortgage loan is a first lien mortgage originated on of before January 1, 2009
- The mortgage is delinquent or default is reasonably foreseeable
- The current unpaid principal balance is equal to or less than $729,750
- The borrower’s total monthly mortgage payment (principle, interest, taxes, insurance and HOA fee) exceeds 31 percent of the borrower’s gross income
- Uses borrower financial and hardship information already collected in connection with consideration of a loan modification.
- Allows borrowers to receive pre-approved short sales terms before listing the property (including the minimum acceptable net proceeds). Hopefully this will speed up the lengthy process everyone has been experiencing for final short sale approval.
- Requires borrowers to be fully released from future liability for the first mortgage debt (no cash contribution, promissory note, or deficiency judgment is allowed). This would be some of the best news for Nevada Homeowners!
- Uses standard processes, documents, and timeframes/deadlines. We have not seen the forms / standards as of yet…
- Provides financial incentives: $1,500 for borrower relocation assistance; $1,000 for servicers to cover administrative and processing costs; and up to $1,000 for investors for allowing a total of up to $3,000 in short sale proceeds to be distributed to subordinate lien holders (on a one-for-three matching basis).
- The program does not take effect until April 5, 2010, but servicers may implement it before then if they meet certain requirements. The program sunsets on December 31, 2012. To read the entire Supplemental Directive 09-09 – Introduction to Home Affordable Foreclsoure Alternatives
Are you a Las Vegas Homeowner facing a possible foreclosure or considering a short sale?
The Serra Group is here for your confidential, no obligation consultation
regarding your options – there are solutions! Call Kathryn at 702-348-7191.
Home Affordable Mortgage Program Reports Over 500,000 Trial Loan Mods in Progress
Posted by: | CommentsThe Obama Administration released it’s latest progress report on the Making Home Affordable Program – citing that more than 500,000 trial loan modifications are in progress.
Press Release – October 8, 2009 (Making Home Affordable website)
Today, almost one month ahead of a November 1 benchmark set earlier this year, the U.S. Department of the Treasury and U.S. Department of Housing and Urban Development (HUD) announced a new milestone of more than 500,000 trial loan modifications in progress under the Making Home Affordable program.
Loan Modification may be an alternative for some homeowners. The Making Home Affordable website is packed with information and resources:
Borrowers Frequently Asked Questions
Are you a Las Vegas Homeowner facing a possible foreclosure or considering a short sale?
Nevada Foreclosure Mediation Program Information and Help
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The Foreclosure Mediation Program was established as a result of the Assembly Bill 149, passed during the 2009 session of the Nevada Legislature.
This law establishes a Foreclosure Mediation Program for owner-occupied residential properties that are subject to foreclosure notices – formally known as a Notice of Default and Election to Sell – filed on or after July 1, 2009.
Here are two websites and informational brochures outlining the details of the foreclosure mediation program:
- Foreclosure Mediation information from the Nevada Supreme Court website:
- Legal Aid Center of Southern Nevada – Visit this site for information on Free Foreclosure Mediation classes.
Download this informative brochure on the timeline and specifics of the mediation program: lacsn_foreclosure_mediation_program_handout_7.09
Loan Modification Success Stories in Las Vegas – Are You Eligible?
Posted by: | CommentsWhen the Obama Administration announced the guidelines for the Making Home Affordable Program for loan modification and refinance options for struggling homeowners, many of us in the real estate industry were not terribly optimistic for Las Vegas homeowners. The reaction was primarily due to the initial understanding that the property could only be 125% upside down. The grim reality for most Las Vegas homeowners is that property values have plummeted 40-60%.
And now for some good news… We recently talked to two families in two different situations who successfully received a loan modification on their first mortgage under the Making Home Affordable Program.
Case Study 1
- Homeowners are owner-occupants and were behind 3 mortgage payments
- Financial Hardship due to reduced salary – their mortgage payment to gross monthly income ratio was approx 39% – the program stipulates a ratio of 31% – some loan servicers are using up to 36%.
- They had to submit the request 3 times to finally get the process started and ultimately approved – which took about 60 days.
- The investor needed to verify that the homeowners would be able to sustain the new payment and not become a risk of default.
- Final result: $500 reduction in payment for 5 years with all the standard stipulations of the program (outlined below and answered in detail on the MHAP website). And, the 3 missed mortgage payments were added to the loan balance.
Case Study 2
- Owner-occupants are current on their payments – making payments with help of family members but at risk of “imminent default”
- Financial hardship – change in income, family unable to continue to provide financial support
- Mortgage payment to gross income ratio was over 70%
- This process went very smoothly – took approx 6 weeks to get an answer
- Final result: Monthly payment was reduced from $ 2,000/mth to $ 784 with these stipulations:
- 3 month trial period to ensure they can make the payments on-time
- Verification of all documents and financials
- After the 3 month trial – the homeowners will execute a new loan agreement that will keep that payment for 5 years. Beginning in year six, the rate may increase no more than one percentage point per year until it reaches the market rate at the time the modification agreement is prepared.
- Their loan servicer also explained that if they make on-time payments every month, they will receive a $1,000 incentive that will be applied as an annual principle reduction payment for each of the 5 years.
How is the program working so far nationally? Here is a recent report card of sorts…
MHAP Public Report – July 2009 Making Home Affordable Program – Servicer Performance Report through July 2009
Are You Eligible for a Loan Modification under the Making Home Affordable Program (MHAP)?
The MHAP website delineates two categories for possible eligibility:
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Home Affordable Refinance Program (HARP)
If you are a homeowner who is current on your mortgage payments but unable to refinance to a lower interest rate because your home value has decreased, you may be able to refinance.
How do I know if I am eligible for a refinance under HARP?You may be eligible if:
- The loan on your property is owned or guaranteed by Fannie Mae or Freddie Mac
- At the time you apply, you are current on your mortgage payments (“current” generally means that you have not been more than 30 days late on your mortgage payment in the last 12 months, or, if you have had the loan for less than 12 months, you have never missed a payment);
- The amount you owe on your first lien mortgage does not exceed 125 percent of the current market value of your property; (Unfortunately, this one requirement eliminates most Las Vegas homeowners – as the average homeowner is 40-60% underwater)
- You have a reasonable ability to pay the new mortgage payments; and
- The refinance improves the long term affordability or stability of your loan.
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Home Affordable Modifications
If you can no longer afford to make your monthly loan payments, you may qualify for a loan modification to make your monthly mortgage payment more affordable. Millions of borrowers who are current, but having difficulty making their payments and borrowers who have already missed one or more payments may be eligible.
How do I know if I am eligible for a modification under the Home Affordable Modification Program (HAMP)?
To apply for a modification under HAMP, you must:
- Be the owner-occupant of a one to four unit home;
- Have an unpaid principal balance that is equal to or less than:
- 1 Unit: $729,750
- 2 Units: $934,200
- 3 Units: $1,129,250
- 4 Units: $1,403,400;
- Have a first lien mortgage that was originated on or before January 1, 2009;Have a monthly mortgage payment (including taxes, insurance, and home owners association dues) greater than 31 percent of your monthly gross (pre-tax) income; and
- Have a mortgage payment that is not affordable due to a financial hardship that can be documented.
These two recent success stories for Loan Modifications fall into the second category and demonstrate that under those specific conditions, loan mods are happening. To recap, you may be eligible for a loan modification if you are the owner-occupant, have a mortgage originated prior to 1-1-09, your monthly mortgage payment is greater than 31% of your gross monthly income (pre-tax) and you have a documentable financial hardship.
Other Useful Tools from MHAP site:
- Payment Reduction Estimator
- Modification Evaluator
- MHAP – Borrower FAQ Download this FAQ for detailed answers to common questions regarding how these programs work.
Contact Us Today to learn more about loan modifications and other pre-foreclosure alternatives. There are solutions…call for a free consultation to discuss possible options. Call Stephanie direct at 702 497-7705.
NV Mandatory Mediation Program for Homeowners in Foreclosure
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The mandatory mediation program will have an impact on our market as 80% of all home sales in Las Vegas are foreclosed homes. I think one of the most clear and concise explanation of this new federal law is written by a local attorney who specializes in real estate law, Robert Noggle. He has graciously contributed the following article.
A new Nevada law allowing any homeowner receiving a notice of default from their lender to request mandatory mediation with that lender becomes effective on July 1st.
The purpose of the mediation program is to avoid a foreclosure by providing a forum for home owner and lender to negotiate a loan modification including a short sale.
The most important development is that the lender must be represented at the mediation hearing by a representative who has authority to modify the loan or who has telephone access to someone with such authority. The lender’s failure to do so may result in the mediator modifying the loan. Proposed court rules for the program allow a lender to participate by telephone if approved by the mediator.
The mediation is nonbinding. The lender retains complete discretion as to whether to modify the loan and, if so, on what terms. However, a trustee’s sale of the home may not occur until the mediation is completed. The trustee’s sale is the final step in the foreclosure process. As a general practice the lender makes the winning bid at the sale and becomes the owner of the home.
The cost of the mediation is $400 divided equally between the homeowner and the lender. According to the proposed rules the maximum period of time allotted to a mediation session is four hours. The homeowner must provide a financial statement together with a Housing Affordability Worksheet. The lender must provide a certified copy or original of the Deed of Trust and promissory note together with a copy of each assignment of the note and deed of trust.
The lender’s failure to provide the required documents may result in sanctions. The lender may also provide an estimate of the short sale value of the property if the loan cannot be modified.
Under the proposed rules the mediation must take place within 90 days of the filing of the notice of default. By law the foreclosure process can take no less than 111 days from the filing of the notice of default to the sale. The mediation program is mandatory at the homeowner’s request if the Notice of Default was filed July 1 or thereafter. The parties may stipulate to mediation if the notice of default was recorded prior to July 1.
Final mediation rules will be issued in the near future. However, as a new program there are many unanswered questions as to how effective the program will be. Whether lenders will participate in good faith to avoid foreclosures is unknown.
Based upon cases from around the country a lender’s ability to provide the necessary documentation including copies of all assignments could be a serious challenge for them. For the homeowner the ability to present a case for a loan modification will depend upon their ability to make their numbers work so as to persuade the lender of their ability to make future modified payments.
By: Robert B. Noggle, Attorney
Black & LoBello
Robert B. Noggle may be contacted at (702) 869-8801 or rnoggle@blacklobellolaw.com. For more information visit www.blacklobellolaw.com
Loan Modification Companies Must Have NV State License
Posted by: | CommentsOn July 8, 2009, Governor Jim Gibbons signed emergency regulations that require all persons conducting loan modification and foreclosure consulting activities to have state licenses.
The emergency regulations are effective immediately. The Governors act was authorized by Assembly Bill 152, which was passed in the last Legislative Session. AB 152 modified Nevada Revised Statute 645F, and required the Commissioner of Mortgage Lending to adopt regulations to license the loan modification and foreclosure consulting companies. The emergency regulations were promulgated recently and the Governors signature made them effective.
In addition to the license, loan modification and foreclosure consultants now must follow specific operating rules and regulations.
Read the rest of this blog post at the Black & Lobello Blog:
Top Online Resources to Avoid Foreclosure; Info on Short Sales & Loan Modifications
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We compiled this list of useful online resources to learn more about avoiding foreclosure,loan modifications, and short sales.
Avoid Foreclosure – Help, Information and Resource Sites:
- www.realtytrac.com National, state, county foreclosure statistics, trends, resources, information
- Making Home Affordable Find out if you are eligible for a Loan Modification or Refinance
- RentalForeclosure.com Tenants can find out if a property is in Foreclosure – NOD filed
- Freddie Mac – Working with Your Lender to Avoid Foreclosure
- Hope Now – an alliance between counselors, mortgage companies, investors, and other mortgage market participants. This alliance will maximize outreach efforts to homeowners in distress to help them stay in their homes and will create a unified, coordinated plan to reach and help as many homeowners as possible.
- Housing Help Now- National Foundation for Credit Counseling
- HUD.gov - Avoiding Foreclosure information & resource webpage
- Home Foreclosure and Debt Cancellation – (IRS.gov)
- The Mortgage Forgiveness Debt Relief Act of 2007 (IRS.gov)
Nevada Foreclosure Help and Resources
- Nevada Foreclosure Help – Useful resources and info from Nevada Department of Business & Industry
- Nevada Hope at Home collaborative effort between Nevada Public Radio, local nonprofit organizations and local financial institutions to help provide residents in southern Nevada access to reliable, easy-to-find information on the foreclosure crisis in southern Nevada
- HUD Approved Housing Counseling Agencies – Nevada list of HUD approved agencies
- Nevada Revised Statutes – Chapter 107 – Deeds of Trust




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