Tips when applying for Loan Modification

The following tips were given by Stephfan Nurse, CEO of Consumer Education, makers of mortgage reduction software designed to help people thru the modification process: 

1)      When faxing or sending in your paperwork to your lender, make sure that your loan number is printed on every page you are sending in.  Lenders received thousands of papers a day and sometimes the cover sheet gets lost or the fax gets misplaced.  If you have the loan number on every page, they can make sure it gets in your file.

2)      Make sure that ALL of the requested paperwork is included in the file.  If you are missing just one required document, they will show your account is incomplete and your file sometimes goes to the bottom of the pile.

3)      Follow up every week with your lender to make sure all of the documents they have are up to date.   Don’t worry about being a pest; this usually keeps your file moving along.

 These tips are the same tips we use when submitting Short Sales.  The complete packages move along much quicker then the packages submitted with missing documents.  Some lenders even tell us to keep sending in pay stubs and bank statements so the file is kept current at all times.

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Closing Costs Rising

On an average of 36.6% closing costs have risen over the last year according to the 2010 mortgage fee survey from  Bankrate, which gets its survey data from online Good Faith Estimate (GFE) forms, say the increase may be due to the new GFE form and changes to the Real Estate Settlement Procedures Act. 

Lenders are penalized now for lowballing fees and the numbers may be more accurate than those reported in the past. 

The three most expense states for closing costs on a $200,000 purchase are New York (avg. $5,623); Texas (avg. $4,708); and Utah (avg. $4,605) according to Bankrate.

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Mortgage Help for the Unemployed on the Way

The Obama Administration said that through the existing Housing Finance Agency Innovation Fund for the Hardest Hit Housing Markets, the US Treasury will make $2 billion of additional assistance available to housing finance agencies in 17 states to implement local programs for unemployed homeowners struggling to make their mortgage payments.  Yesterday the US Treasury Dept added $476.2 million to a $64 million state program.  California received the largest share of the $2 billion awarded.

 California Housing Finance Agency “CalHFA” will be the administrator of this program as the state’s affordable housing bank.  In the capital region, unemployment has soared to 12.4 percent and the State of California has more than 42,000 laid off homeowners. 

Beginning on November 1, 2010, the government will help those QUALIFIED individuals help make their mortgage payments (up to $1,500 month) while they look for another job.   They aim to help 19,000 make a few months of mortgage payments between November and next July and 23,000 will receive help in the next two years.

 Qualifications for this program:

  • Homeowners must be out of work
  • Eligible for unemployment benefits
  • Live in the home tied to the problem
  • They must be FEWER than 90 days behind on mortgage
  • Meet LOW & MODERATE income guidelines (generally less than $70,000 for couples in El Dorado, Sacramento & Placer counties
  • EXCEPTION:  Loan must be purchase money mortgage and NOT a refinance

To find out additional information at the KEEP YOUR HOME website at or call (916) 373-2585.

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Bank Owned Properties on the Decrease?

Mortgage defaults in California have fallen to their lowest level in three years, market researcher MDA DataQuick said Wednesday.   In the Sacramento region, home defaults have dropped 38 percent in the past year. 
Some of the drop-off may reflect an increase in short sales, in which troubled homeowners sidestep the foreclosure process but still lose their homes. But experts said it’s also a sign of a housing market that’s genuinely improving.

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