Will the bank reduce the principal owed on your mortgage? (Please note spelling of Principal - not "principle")? I get this question a lot at my workshops.
Here's a short, three minute-plus video that answers the question about how likely it is for your mortgage lender to reduce your principal.
Thursday, June 18, 2009
Wednesday, June 17, 2009
Sunday, June 7, 2009
Did Countrywide Commit Fraud?
The Securities and Exchange Commission leveled a
huge charge at the CEO of Countrywide and two other
higher-ups, relating to "riskier and riskier" loans.
The SEC charges revolve around Angelo Mozilla's,
the ex-CEO of Countrywide, alleged deceptive,
misleading behavior - failure to give their investors
important information - like that Countrywide was approving
a high percentage of risky loans while their guidelines because
increasingly lax.
Countrywide made "billions" on risky, "subprime"
loans, according to USA Today, but ultimately went
belly-up in our current financial meltdown.
What does this mean for you?
If you have a subprime, risky loan with Countrywide
or most other lenders, you might be able to do
something about it. Lenders and servicers are
picking up the pieces of these "toxic" loans.
In other words, they're cutting deals with mortgage
holders. Modifying the loans to help keep the
homeowners in their homes and prevent foreclosures.
No bank wants a foreclosure. They're too expensive -
supposedly $50,000-$60,000 in fees to the bank,
per foreclosure.
That's why millions of homeowners are turning to
the loan modification process to try to obtain relief
from high payments accompanying loans like
Countrywide wrote.
The same loans their ex-CEO is being sued over.
- Andy
P.S. I'm holding a free community workshop up
in Boynton later this month. Seats are filling
up but we still have plenty available as of
today.
www.LastChanceMortgageHelp.com/events
huge charge at the CEO of Countrywide and two other
higher-ups, relating to "riskier and riskier" loans.
The SEC charges revolve around Angelo Mozilla's,
the ex-CEO of Countrywide, alleged deceptive,
misleading behavior - failure to give their investors
important information - like that Countrywide was approving
a high percentage of risky loans while their guidelines because
increasingly lax.
Countrywide made "billions" on risky, "subprime"
loans, according to USA Today, but ultimately went
belly-up in our current financial meltdown.
What does this mean for you?
If you have a subprime, risky loan with Countrywide
or most other lenders, you might be able to do
something about it. Lenders and servicers are
picking up the pieces of these "toxic" loans.
In other words, they're cutting deals with mortgage
holders. Modifying the loans to help keep the
homeowners in their homes and prevent foreclosures.
No bank wants a foreclosure. They're too expensive -
supposedly $50,000-$60,000 in fees to the bank,
per foreclosure.
That's why millions of homeowners are turning to
the loan modification process to try to obtain relief
from high payments accompanying loans like
Countrywide wrote.
The same loans their ex-CEO is being sued over.
- Andy
P.S. I'm holding a free community workshop up
in Boynton later this month. Seats are filling
up but we still have plenty available as of
today.
www.LastChanceMortgageHelp.com/events
Monday, June 1, 2009
The Problem With Loan Modifications
Just came across a story about the effectiveness
of loan modifications.
A well-known analyst company, Fitch Ratings,
took a look at subprime, jumbo and "low-doc"
m.ortgage loans that were issued between 2006-
2007; i.e. before the bubble burst.
Fitch estimated that 55-65% of these loans may
end up 60 days delinquent...AFTER they're
modified!
Why so high?
Because the new terms of the modified loans,
while usually (but not always!) lower than
the old terms, may still not be affordable.
"More often than not, reducing the home
payments to an affordable level may not
be enough to rescue borrowers who are
overextended..." said a managing director
at Fitch.
What does this mean for you?
If you're thinking about pursuing a loan
modification, you need to be on your toes
as you negotiate with your lender. In other
words, you must do everything possible to
make sure you get the best deal they
can give you.
Sometimes, this can mean refusing the
first offer they throw at you. Other times,
with some lenders, this can mean
accepting the offer, but re-applying for a
loan modification within a two-three month
period.
I'll be holding an online version of my
workshop, "Dirty Little Secrets the Big,
Dumb, Greed Banks Don't Want You to
Know About How to Renegotiate Your
Mortgage Rate and Payment...Even if Your
Credit is In the Toilet!"
Keep an eye out for the date and time!
of loan modifications.
A well-known analyst company, Fitch Ratings,
took a look at subprime, jumbo and "low-doc"
m.ortgage loans that were issued between 2006-
2007; i.e. before the bubble burst.
Fitch estimated that 55-65% of these loans may
end up 60 days delinquent...AFTER they're
modified!
Why so high?
Because the new terms of the modified loans,
while usually (but not always!) lower than
the old terms, may still not be affordable.
"More often than not, reducing the home
payments to an affordable level may not
be enough to rescue borrowers who are
overextended..." said a managing director
at Fitch.
What does this mean for you?
If you're thinking about pursuing a loan
modification, you need to be on your toes
as you negotiate with your lender. In other
words, you must do everything possible to
make sure you get the best deal they
can give you.
Sometimes, this can mean refusing the
first offer they throw at you. Other times,
with some lenders, this can mean
accepting the offer, but re-applying for a
loan modification within a two-three month
period.
I'll be holding an online version of my
workshop, "Dirty Little Secrets the Big,
Dumb, Greed Banks Don't Want You to
Know About How to Renegotiate Your
Mortgage Rate and Payment...Even if Your
Credit is In the Toilet!"
Keep an eye out for the date and time!
Subscribe to:
Posts (Atom)