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Date: August 5th, 2009 Author: CNN Money, Senior Writer
"So far, the government has committed $20 billion to the effort and has said it would provide $75 billion overall."
If you answered YES to any of these questions, then you qualify.
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Must know consumer information.
HOMEstart offers nationwide residential, investment and commercial property loan modifications, along with information to help you prevent foreclosure proceedings from the beginning. California law has recently changed and HOMEstart is now able to offer loan modification services to homeowners who have already received a Notice of Default (NOD);however the process is much simpler before that stage. HOMEstart is not a mortgage foreclosure consultant. Any reference to foreclosure on www.YourHomestart.com is solely in regard to preventing the commencement of foreclosure proceedings by using the loan modification process.
Prevent foreclosure or lower monthly mortgage payments with a company you can trust. HOMEstart is one of very few businesses in California with an A+ rating from the BBB in both the LOAN MODIFICATION and REAL ESTATE LOAN MODIFICATION categories. See for yourself, CLICK HERE to view our BBB listing. HOMEstart is Your Trusted Loan Modification Specialists.
HOMEstart is Proud Partners with All Major Lenders
HOMEstart is able to provide A+ BBB rated services because we have established personal relationships with the largest mortgage lenders to expedite the loan modification process. Contact HOMEstart at anytime to discuss your financial hardship, we will listen and maintain the highest level of confidentiality. We have an entire team of experienced loan modification consultants who will help answer any questions you may have, regardless if you pursue a loan modification through HOMEStart. We are here to help; start new, not over.
HOMEstart is at the forefront of loan modification companies offering such a wide array of consumer information and mortgage modification news. We keep our A+ BBB rating by providing personal and dependable service to our clients. We provide free consultation to analyze your current situation so that together we can provide a workable solution that is acceptable to both you and your Lender.
A Loan Modification is a permanent change in one or more of the terms of your loan. The purpose of a loan modification is to allow the borrower to meet the new loan modification terms, allowing them to prevent foreclosure. A loan modification is not a refinance; it is the restructuring of the loan terms. In other words, a loan modification is a contractual agreement between the Lender and the Borrower to provide long term relief from unaffordable loan terms. Loan modifications can lower your interest rate(s), monthly mortgage payment(s) and the principle balance (loan amount).
Remember the cost of foreclosure to the Lender is higher than new loan modification terms; therefore, lenders are open to loan modifications to prevent foreclosure. A loan modification will cost less than a refinance and it's available to more people, even those that owe more than the value of their home, behind on mortgage payments and/or have poor credit, which become roadblocks for a refinance.
The Better Business Bureau (BBB) awarded HOMEstart as an A+ rated mortgage loan modification company.
The California Department of Real Estate (DRE), established by California in 1913, sets forth policies regarding the ability of its members in performing home loan modifications. The DRE requires an extensive review of any loan modification firm who performs such services. Complying by its guidelines reflects the professionalism of HOMEstart.
HOMEstart possesses a solid and impeccable A+ BBB rated reputation. In early August 2009, the California DRE reported that there were approximately 495,000 registered Real Estate & Mortgage Brokers in California, but less than 300 were licensed to perform mortgage loan modifications. HOMEstart is one of the few licensed loan modification companies in California.
Given our tenure and attention to customer service, HOMEstart has been successful with close to 90% of submitted loan modification applications. Unlike other firms, HOMEstart will work on "difficult" applications, which require more time and resources. Our performance of successful loan modifications is due to a standard of hard work and the persistent professionalism of our underwriting and negotiating team, which are arguably the strongest in California.
Lenders would rather foreclose than modify your loan.
Absolutely not. Lenders prefer to modify your loan(s) because foreclosure is a costly and time-consuming process. It is expensive for lenders to put your house on the market and re-sell your home. In addition, the declining home prices and competitive real estate market make it difficult to re-sell your home after foreclosure. Lenders want to create any solution where they can receive some payment. HOMEstart loan modification specialists will negotiate with your Lender new loan terms which will allow you to make affordable and consistent payments, resulting in an agreement to lower mortgage payments.
Many people qualify and consultation is free, take advantage of HOMEstart's trusted loan modification services and give us a call today, 858.581.1800.
Total monthly savings of $1,132.38/mon for local San Diego homeowner.
Old Loan Terms from Lender:
Loan amount of $298,819 with an interest rate of 5.875% and monthly mortgage payments of $2,445.30.
Modified Loan Terms from HOMEstart:
Interest Rate of 3.875% and new monthly mortgage payments of $1,312.92 fixed for 5 years; final interest rate of 5.375% and $1,481.94 monthly payments. Note: All unpaid interest, escrow and fees were added to principal. New Principal Balance of $320,069.
Introduction. As part of Obama's 2009 economic recovery package, the President has introduced a plan to rescue and revive the troubled housing market. The new plan is called the Homeowner Affordability and Stability Plan (HASP), which describes Obama's intents to modify distressed mortgages, keeping struggling borrowers in their homes with the intent to help stop rapidly declining property values resulting from surrounding homes entering foreclosure. Obama is dedicating $75 billion to the HASP and below are some key details.
HASP focuses on reducing mortgage payments since it argues homeowners will continue to stay in their homes, despite declining home values, as long as the borrower is able to afford their monthly mortgage payments during the poor economic climate. Many economists agree that foreclosures result from homeowners simply being unable to afford high monthly mortgage payments versus not being able to pay at all. Obama's plan requires major lenders and banks to participate in reducing monthly mortgage payments to less than 40% of the borrower's gross monthly income. The resulting losses lenders and banks incur would be refunded by Obama's $75 billion HASP budget.
Lenders Involvement. There are a few simple methods lenders use to lower monthly mortgage payments; these include reducing the interest rate to as low as 2% or extend the loan term as high as another 10 years. In Obama's attempt to incentivize participation, lenders will receive $1,000 for each loan modification and can also receive an additional $1,000/year, for up to 3 years, if the borrower makes consistent payments. Borrowers are also eligible to receive a principal balance reduction of up to $1,000 each year, for up to 5 years, granted the borrower makes consistent payments. HASP was originally designed for responsible homeowners who have been seriously affected by the worsening economy and resulting increased unemployment, however, with the rate of foreclosures becoming so high, almost any home owner with legitimate financial hardships (ie. divorce or separation, illness, unemployment, reduced pay, etc) can qualify for a mortgage loan modification.
The major lenders developing government Loan Modification Programs are Wells Fargo, JPMorgan, Bank of America, Countrywide, Citigroup, IndyMac and Chase. Most of these lenders make up the top 5 mortgage lenders by dollar volume. Whether you are currently behind on your mortgage payments or foresee being unable to make payment in the near future, you can qualify for a mortgage loan modification.
Loan Modifications. The time to act is now, however, do not rush and make a decision based on pricing from any mortgage loan modification company. Remember that a turnkey loan modification involves 7 critical phases. The process can generally take up to 3 months, even with a team of experienced loan modification specialists working diligently, which is why the time to get started is now.
Even though a loan modification requires several people (ie. intake processors, consultants, negotiators, lawyers, etc.), consider that just one individual working on your loan modification file for 3 months works out to the borrower hiring help for just over the minimum wage rate of California. Do not be fooled by loan modification companies or firms offering low prices because they mostly likely (1) do not have a DRE license, (2) are not accredited by the BBB or (3) do not have the resources and staff to complete a full loan modification (a legitimate contractual agreement between the borrower and lender to modify mortgage loan terms).
Each of the seven phases utilizes the skills and experience of a wide range of professionals to negotiate and create a loan modification agreement for your mortgage loan terms. For the consumer's protection, the Department of Real Estate (DRE) certifies loan modification companies by providing a license on a per state basis. Along with that license, the Better Business Bureau (BBB) provides an extensive grade, or rating scale, on a multitude of different factors which can help the consumer eliminate any fears of being scammed.
Loan modifications were originally reserved for those whose mortgages became delinquent due to job loss, divorce or illness, but today loan modifications are also open to anyone suffering from high adjustable rate mortgages. It is important to begin the loan modification process as soon as possible to prevent foreclosure. Also, one major misconception about who qualifies for a mortgage loan modification is that the borrower must already be behind on their mortgage payments; this is not true.
Your HOMEstart. Many attempt to work with their own lender and come away with no results. This partly results from many lenders having a severe lack of trained and experienced personnel working on loan modifications due to the rising amount of loan modifications being processed each day by any given lender or bank branch. There simply are not enough experienced people to meet the demand of incoming loan modification files. Also consider that this process can be difficult in some cases even with professionals and legal staff working diligently for months, so do not hesitate to make another attempt at a home loan modification with a BBB accredited and DRE licensed loan modification company like HOMEstart.
Loan modification companies that provide A+ BBB rated services have established personal relationships with the largest mortgage lenders to expedite the loan modification process. Contact HOMEstart at anytime to discuss your financial hardship and we will listen, maintaining the highest level of confidentiality. We have an entire team of experienced loan modification consultants who will help answer any questions you may have, regardless of whether you pursue a loan modification through HOMEStart. We are here to help; start new, not over.
The Better Business Bureau (BBB) assigns a rating, in the form of a letter grade (from A+ to F) by evaluating businesses in many categories. HOMEstart received an A+ BBB Accreditation grade from our superior scores in the following areas:
BBB experience with the mortgage loan modification industry.
HOMEstart's length of time in business.
BBB has HOMEstart's DRE compliance license on file.
No government actions against HOMEstart of any kind.
No advertising issues found by the BBB of any kind.
HOMEstart currently has zero complaints received by the BBB from customers.
BBB has significant background information and clear understanding of HOMEstart.
HOMEstart is a well established San Diego BBB Accredited Business.
The A+ BBB rating HOMEstart received is quantitatively determined by a BBB proprietary formula that represents BBB's opinion as to (1) the importance of each category and (2) the appropriate score given to HOMEstart for each category.
BBB's grade (BBB Accreditation rating) represents BBB's degree of confidence that the business is operating in a trustworthy manner and will make an exceptional effort to provide the contracted services, while also providing a high degree of customer service.
All these details can be found by visiting the Better Business Bureau's (BBB) website where you will find the BBB Reliability Report. BBB's A+ rating reflects BBB's opinion about HOMEstart based on information in their files and BBB experience. BBB ratings are subject to change on a daily basis and will reflect the most accurate and current status of HOMEstart. Remember that BBB Accreditation is new as of Oct 1, 2007 and is very different than a BBB Membership; always visit BBB's website or your local BBB website to confirm any BBB Accreditation. As a consumer, be sure the link begins with www.bbb.org. HOMEstart has a listing on www.bbb.org, www.sandiego.bbb.org and www.sd.bbb.org. For more information regarding the BBB Accreditation process or our A+ BBB rating, please visit the BBB's website.
The loan modification process begins with a consultation with your experienced HOMEstart loan modification specialist. Your loan modification consultant will discuss with you the financial hardships you're facing and determine if you are a good candidate to receive a mortgage loan modification. After HOMEstart pre-qualifies you for a loan modification, there will be some essential paperwork to get the loan modification process underway. The loan modification process will require:
Proof of income.
Last 4 monthly bank statements.
Hardship letter discussing your current or future situation.
All inclusive monthly expense sheet.
Most recent mortgage statement.
Past two years of W2 forms and tax returns.
Once the paperwork is complete, your loan modification file enters negotiations. At this time your loan modification file will contain all the information your negotiator needs to create an agreement with your lender to modify your mortgage loan terms. Once an agreement has been made, the loan modification offer enters approval. Your HOMEstart attorney will review the offer made to you by your lender to make sure that it represents the terms previously discussed with your negotiator. Generally each lender will have their own borrower qualification guidelines and so for the best results, consider these factors while getting prepared:
Income-Expense Ratio. The borrower's proof of income and monthly expense sheet is used to show your lender that smaller monthly mortgage payments will in fact result in consistent payments. Lenders also want to determine if your expenses exceed 60% of the borrower's gross monthly income.
Nature of Hardship. Some lenders have specific requirements on what types of situations qualify as a financial hardship, however, your financial hardship should be a result of a situation which occurred (or will occur) that was (or is) "out of your hands". Commonly accepted situations include illness or death in the family, demotion or pay decrease, lawsuits, divorces and military service.
Payment History. Lenders look at the borrower's previous mortgage statements to see if there were any prior delinquent payments. If the borrower made timely monthly mortgage payments prior to the financial hardship, then it will show the lender your capability to make consistent payments after a mortgage loan modification. Remember that your credit history is not reviewed, simply your mortgage payment history. Those with poor credit can qualify for a mortgage loan modification.
Bank Statements. Lenders look at the borrower's bank statements to determine if the loan modification applicant had normal spending habits prior to the financial hardship and to see if there is any savings set aside in case of an emergency or worsening situation.
Tax Payments. These documents serve to evaluate the borrower's level of financial responsibility. Consistent tax returns will demonstrate to your lender that you're not just looking for "cutbacks". The borrower's tax returns also provide additional proof of consistent income.
Your HOMEstart loan modification consultant will need to briefly discuss these topics and hardship in detail. Any documentation you provide while creating a loan modification file with HOMEstart is exclusively maintained and handled by our certified Intake Processing staff.
If you are looking for loan modification services, then you are probably looking to save your home by preventing foreclosure. The closer a home owner gets to foreclosure, the more difficult it becomes to get a mortgage loan modification. Knowing the foreclosure process and timeline will help you evaluate your situation and make the best solution for your current or approaching financial hardship.
Collections Stage. This period, ranging from 30-90 days, begins when you miss your first mortgage payment. Generally your bank will try to contact you before taking any severe action. After 2 to 4 weeks from the first missed mortgage payment, your bank will begin to assess late fees. If the second mortgage payment is missed, your lender will send you a breach of contract letter, which formally informs the borrower in writing that they have violated the mortgage loan terms. In addition, after the second delinquent payment, the borrower will be given 30 days to pay the balance or come to a resolution before receiving a Notice of Default.
Notice of Default. At this point, also known as pre-foreclosure, the borrower has missed their third mortgage payment. Pre-foreclosure starts when your lender files a Notice of Default (NOD) at the county office governing your property. Unfortunately for the home owner, technically speaking the foreclosure process begins at this time; only a short 2 months after your first delinquent payment. It takes less than 2 weeks to receive your formal Notice of Default. In California, a 90 day period, known as the Reinstatement Period, is initiated as the time frame the borrower has to resolve the owed balance before a Notice of Sale.
Midpoint. At this time, typically 60 days before the Auction date of the home or property, the borrower's options for initiating a loan modification get very difficult. Contract terms vary from lender to lender, but the trend is the longer you put off making payments, the less likely your lender will allow you to create an agreement to modify your mortgage loan terms. However, if the borrower does manage to get caught up in payments, the NOD would then be withdrawn.
Notice of Sale. At this point, also known as Pre-Trustee Sale, the owner's property will have a Notice of Trustee Sale (NOS) publicly posted. The notice remains posted for 3 weeks (21 days) and will contain the time, date and location of the auction. Fortunately, the borrower is able to reinstate the loan upon payment of the balance owed from delinquent payments 5 days before the auction date.
Trustee Sale. At this time, also known as the Auction date, your home is officially auctioned off to the public. The borrower is given 10 days to remove all property and leave the premises from which thereafter a sheriff will get involved to enforce eviction.
If you are struggling to afford your mortgage payments, but have a tremendous interest in saving your home from foreclosure, the borrower's only option is to try a loan modification. Do not hesitate to contact HOMEstart to ask any questions regarding your financial hardship. We are here to help; start new, not over.
There are many reasons for choosing loan modification specialists vs. hiring a law firm. Below are the 5 major reasons property, both residential and commercial, owners looking for a loan modification should choose HOMEstart:
Cost. Considering the nature of the service needed, it is a safe assumption that the cost of a loan modification is the primary concern for the consumer. Law firms generally do not offer a fixed rate to modify your home loan and costs will range from 5 to 8 thousand dollars. The price is inflated because many times a lawyer will be involved in the consultation and negotiation process. Most private practice lawyers charge very high hourly rates and so loan modification lawyer's cost to process your mortgage modification will reflect their lawyer counterparts, nearly making law firms 2 to 3 times more expensive than loan modification specialists.
Time. As the saying goes, "Time is money" and so the next major concern for the consumer is how long the loan modification process will take. Considering the loan modification is a seven step process, one can imagine your lawyer is not specialized in each of the seven unique steps. In addition, lawyers will normally not spend the additional time needed to expedite your loan modification. This is due to the fact that they want to maximize what profit they make per hour invested in your loan modification file. Since your lawyer is busy managing so many steps of the process, the loan modification generally takes longer as well. Most lawyers are actually firm partners or owners and so their responsibilities to the firm far exceed their responsibility to your particular loan modification file. Loan modification specialists can modify your home loan in as quickly as one month.
Guarantee. Normally when a consumer purchases a service, they are concerned about the guarantee. Most law firms do not offer competitive refunds or guarantee for the loan modification service because they feel the value of their time exceeds that of a loan modification consultant or negotiator. There will be higher upfront fees, also known as a retainer, and most law firms are not bound by the Department of Real Estate restrictions on Advanced Fees. Loan modification specialists choose to have experienced consultants and negotiators vs. lawyers consulting and negotiating loan modifications. However, most accredited and licensed loan modification companies use lawyers for the contract review, also known as the approval phase, so the consumer does not lose any legal expertise during their loan modification process.
Customer Service. More often than not lawyers carry with them a negative stigma. Needless to say there is no definitive reason for this, but typically people dislike seeing a lawyer just as much as they dislike seeing a doctor when ill. Your lawyer is not trained in customer service, but rather law(s) and contracts. Lawyers understand you need them as a last resort measure and therefore do not uphold a high standard of customer service. A lawyer is not as willing to spend however long it takes to get you not only comfortable with beginning a loan modification, but also provide any amount of assistance necessary to have all your questions answered too. Developing all the relationships necessary with major lenders takes a lot of resources and usually any firm with the experience necessary to provide dependable services (for the most part) will often also be high-volume firms; instead of having a name, you have a customer number.
Reputation. The consumer also considers the reputation of the business for which they seek specialized services. Unfortunately there is no AAA or Fed-Ex in the mortgage loan modification industry. Some high volume law firms might pay for local TV commercials, but normally anyone looking for a loan modification has no prior knowledge of what businesses are the most reputable loan modification companies. For this reason, the consumer can trust the Better Business Bureau (BBB). The BBB will assign a letter grade, also known as a BBB rating, to a company (those that choose to register with the BBB) which best describes their reputation in that particular industry. It is not unexpected to see that there is not a single law firm in California that has an "A" (let alone an A+) BBB rating. This is partly due to loan modification law firms having higher costs and inferior customer service, which increases complaints. Due to their high volume, there is a higher frequency of unresolved loan modification files which leads to yet again more complaints and delays in other loan modifications filed thereafter.
With all these reasons to consider, it becomes a relatively easy decision to choose loan modification specialists vs. a law firm. However, lawyers become vital when the borrower is very close to the auction date, a time which does not occur until there are about 6 months worth of delinquent payments. Hiring a lawyer should truly be your last resort and we can refer one near you if necessary. HOMEstart provides the mortgage loan modification service at a lower cost, within less time, under a better guarantee, with far superior customer service and an A+ BBB trusted reputation. We are here to help; start new, not over.
North County Coastal San Diego
Cardiff 92007, Carlsbad 92008, 92009, 92010, 92011, Carmel Valley 92130, Del Mar 92014, Encinitas 92024, Oceanside 92054, 92056, 92057, Solana Beach 92075
North County Inland San Diego
Poway 92064, Mira Mesa 92126, 4S Ranch 92127, Rancho Bernardo 92127, Carmel Mountain Ranch 92128, Rancho Penasquitos 92129, Scripps Ranch 92131, Escondido 92025, 92026 92027, 92029, Bonsall 92003, Fallbrook 92028, Ramona 92065, Rancho Santa Fe 92067, 92069, San Marcos 92069, 92078, Valley Center 92082, Vista 92081, 92083, 92084
Central Coastal San Diego
Bay Park 92110, Clairemont Mesa 92111, Clairemont 92117, Coronado 92118, Downtown San Diego 92101, Serra Mesa 92123, Tierrasanta 92124, La Jolla 92037, Ocean Beach 92107, Old Town 92110, Pacific Beach 92109, Mission Beach 92109, Point Loma 92106, Sorrento Valley 92121, University City 92122
East County San Diego
Alpine 91901, El Cajon 92019, 91920, 92021, Jamul 91935, Julian 92036, Borrego Springs 92004, La Mesa 91941, 91942, Lakeside 92040, Lemon Grove 91945, Pine Valley 91962, Rancho San Diego 91978, Santee 92071, Spring Valley 91977
South Bay San Diego
Bonita 91902,Chula Vista 91910, 91911, 91914, 91915, Eastlake 91913, Imperial Beach 91932, National City 91950, Otay Mesa 92154, Otay Ranch, 91913, Paradise Hills 92139, Rolling Hills Ranch 91914, San Miguel Ranch 91914, San Ysidro 92173, Sunbow 91911
Central Inland San Diego
South Park 92102, Mission Hills 92103, North Park 92104, City Heights 92105, East San Diego 92105, Mission Valley 92108, Linda Vista 92111, Logan Heights 92113, Encanto 92114, College Grove 92115, Normal Heights 92116, Clairemont Mesa 92117, San Carlos 92119, Allied Gardens 92120, Del Cerro 92120
