Loan modification redefaults growing

troubled homeowner's foreclosure notice

Loan modifications for troubled borrowers under the Home Affordable Modification program have come under criticism from the inspector general for the Troubled Asset Relief Program. "Already, 398,222 homeowners have not been able to keep up with their mortgage payments even though payments were lowered by HAMP," the report states. "Overall 29 percent of homeowners in HAMP have already fallen out of the program. However, the bulk of homeowners in HAMP who started participating in the program in … [Read more...]

Loan modifications: Do you really want to apply?

monopoly top hat man for post on loan modifications

If you are considering a loan modification in Los Angeles, think about the long-term impact of your financial disclosures. What you reveal can be quite costly if you later decide to pursue a short sale. The bank will ask for all of your financial information. It may also seek detailed information on your hardship. Say you have property in Playa Vista or Palos Verdes that is declining in value. You've lost your job and have a bit of savings keeping you afloat. Chances are you have a … [Read more...]

Sellling your home Short? You are not alone!

Option ARM loans are resetting. Selling your home short?  You are not alone! Standard and Poor's reports about 93 percent of option-ARM buyers chose to pay a minimum amount less than the interest due. Many of these loans were taken out in 2004 and are close to their five-year reset when the loans convert to a standard amortization.  If the accumulated interest has pushed the loan-to-value ratio above 110 percent some of the more recent loans will reset early. One example of the … [Read more...]

5 Tips to Protect Yourself from Loan Modification Scams.

Direct from the Office of Attorney General here are 5 tips to avoid being scammed by "Foreclosure Consultants". 1. Never pay up front fees!!  "Foreclosure Consultants" are prohibited by law from collecting money before services are performed. 2.  Beware of "Foreclosure Rescuers".  These people attempt to convince home owners they can stay in their homes as renters and buy their homes back later. Sometimes they are part of a fraudulent bankruptcy filing.  Either way if you transfer … [Read more...]

Where to File a Complaint if you have been a Victim of Real Estate Fraud?

Homeowners resources for Real Estate and Loan Modification Fraud: File a complaint with the California Attorney General's Office. 1800-952-5225 File a complaint with the Federal Trade Commission. If your complaint is against a real estate broker: Department of Real Estate. If your complaint is against an attorney: State Bar of California website. You may also wish to consider filing a Small Claims Court action. These are informal courts where disputes are resolved quickly and … [Read more...]