There exist many people who own homes that believe they can do nothing to stop a foreclosure from happening. There is a way to prevent a foreclosure from occurring, through easily available loan modification programs, since they are a tremendous help.

The objective of a loan modification program is to modify the current conditions of existing loans to help homeowners manage their monthly dues and therefore, avoid home foreclosure.

A loan modification can be done in different ways as listed below:

1. The interest rate of the loan can be lowered

2. By changing the interest rate from an adjustable to a fixed rate

3. By extending the tenure of the loan to a longer period

4. Make a drastic change in the actual type of loan

5. The principal loan amount can be lowered.

6. By waiving off the late fees

The first and basic step involved in loan modification plan is to contact the lender asking to arrange a meeting to discuss the available options. You may easily qualify for a loan modification, if you have a steady income and good credit record.A loan modification literally modifies the current terms of the loan instead of starting a new loan. On the contrary, refinancing refers to starting a new loan to support the existing one.

If losing your home is something that can easily happen to you, you should learn about loan modification, and some of the steps that have to be completed before you can apply for one.

1. The first thing you have to do, is make certain that all of the lender’s policies are completely understood, so that the process is much more simple.

2. Secondly, prepare a hardship letter explaining your current inability to make your monthly payments on time. Do not forget to mention the reasons behind your loan modification plan.

3. Be sure that you save all documents, like bank statements and what you budget is each month, so you can bring it to the meeting, and can hopefully make them decide in your favor.

There has to be some things done on your part, so that you can totally understand the terms of the loan modification to which you are applying, so that you can keep your home.

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You won’t get a loan modification by waiting in line. It’s just too long. Get “out-of-line” by following my advice.

The Loan Modification Frenzy has not abatted at all. The line ahead of you is way too long. Hundreds of thousands are in the queue ahead of you with more than 50,000 added per week. Banks can’t staff, train, manage and retain enough workers. Further, the systems are overwhelmed. Then, add the fact that the banks are only half-heartedly cooperating with the Making Homes Affordable program anyway, and, well, you get the picture.

The front 4% of the line are getting good modifications. So, copy the winners, How do they do it? They get out-of-line and do extraordinary things. Previously I have described ways winners craft their applications and follow-up on the application to use what I call File Inertia. Let me now describe the way they escalate problems.

Because problems are an inevitable part of such a convoluted and broken process, effectively dealing with them is critical. I advise you to 1) Ask 5 Times, 2) Escalate Well and 3) Escalate Well Beyond.

Ask 5 times The common problems are not too tough. Replace a lost document, sign one sent w/o signature, update bank statements or paystubs, etc. Just breath deeply, hold your tongue and provide exactly the information they request. But, there are times when you just cannot get agreement or get a clear explanation, or other such frustration, when you simply need to take my advice. Thank the agent and then call back one day, one hour or one minute later and try the same question on a new agent. I always do this 5 times before I give up. You see, many of the agents in the Loss Mitigation Department are scantily trained and sorely inexperienced. Very often they just can’t understand you or the system.

Escalation means going up the chain of command. It means requesting that a manager or supervisor review the situation with you. Be sure to do this politely to minimize the snub to the agent but be firm. Simply say (to the 5th agent) “Please connect me to your supervisor, will you? This matter is ust too important to me to let this go. I want to hear it from a supervisor”. Sometimes the agent will obligeand other times the agent will argue with you. I believe that sometimes too, agents will ask their co-worker to pose as a manager for the call. It may happen that the manager will have to call you back. Don’t hold your breath. Occassionally you will get lucky and a well trained and well informed manager will get on the line and provide some real vaue.

Escalate Well Beyond means taking your problem beyond the Loss Mitigation Department to seek assistance and support from other departments, or from bank executives, regulatory agencies, politicians, trade associations and even the press. Don’t think that your situation is too small for any of these entities to care about or to take action on. The secret to getting their support is to request it in a manner that indicates that you 1) have used all the correct channels already, 2) understand their role and have appropriate expectations for what they can do on your behalf, 3) know exactly what you want them to do and by when and 4) that you are the sort of person who will escalate right past them if they do not respond.

These Escalations Well Beyond are incredibly effective. Recently one client was assisted by the CEO of Aurora Loan Servicing, another by a local Congressman’s plea to the OTS and a third by a U.S. Senator! Who’d a thunk it?

This housing crisis has hit so many of us that, generally speaking most people are sympathetic and willing to lend a had if they can. So, getting the assistance you need is really about having the nerve and the street-smarts to ask for it well.

Rockwood, dubbed the “Loan Mod Mercenary”, has helped thousands get great loan mods despite the odds. ? Visit Rockwood’s site about DIY Loan Modification at Home Loan Modification

Arizona Foreclosure Provides New Investors with Opportunities. The housing market in this state like many other have suffered. There has been a housing boom in Arizona over the years. But right now the market is taking a hit. This would be a good time for those interested in real estate investment to look at this opportunity.

When people fail to pay their house payment for three straight months in Arizona the lender can file for foreclosure. This is where the lender takes the property and sells it to get back the money it loaned to the borrower who has failed to pay back the loan.

Then after three months if the loan has not been paid off then the lender can have the sheriff evict the occupants of the house and then sell the house at auction to recover the money the lender loaned on the house. If you are interested in getting into the real estate investment business this might be a time you can learn how to deal in foreclosed properties.

You can take classes on how to buy and sell REO’s. This is the term for bank owned properties. It stands for real estate owned.

There are many experienced investors who teach others how to get into the real estate investment business. You will have to know how to make offers to the banks for the REO. You have to know the calculations in how to bid so that you can make a profit when you sell the house on the retail market or to another real estate investor.

You can attend public auctions where REO’s are place on auction for real estate investors to come and bid on the properties. You can find classes on how to bid at auction. You need to have cash available to bid. You need to see the properties before bidding on them

Do not get caught up in the emotion of the bidding. You might go over the amount you set as your maximum bid.

You also want to find a way to finance your real estate investment business when you are starting out. There are many good deals in the foreclosure market but you need to have the money to pay the down payment.

If you can buy at thirty cents on the dollar and sell at fifty cents on the dollar then great. But you have to have the down payment to make the offer for the house in the first place.

If you are starting out you can try a hard money lender for the money to get started. Although this lender loans money at high rates of interest and for only short periods of time you might still consider this type of loan if you can sell the property quickly and for a profit. Arizona Foreclosure Provides New Investors Opportunities in the real estate market.

To find Arizona foreclosure companies that can give you the latest information on foreclosed homes or how to deal with them, you can consider using the Internet as a information source. The AZ foreclosures list grows every day or week.

Arizona Foreclosure Provides New Investors with Opportunities. The housing market in this state like many other have suffered. There has been a housing boom in Arizona over the years. But right now the market is taking a hit. This would be a good time for those interested in real estate investment to look at this opportunity.

People lose their jobs and their primary source of income and then they lose their homes. They cannot afford to pay their house payments. In this state if a borrower fails to pay their house payment for three months the lender can then file in the court a law suit pending.

Then after three months if the loan has not been paid off then the lender can have the sheriff evict the occupants of the house and then sell the house at auction to recover the money the lender loaned on the house. If you are interested in getting into the real estate investment business this might be a time you can learn how to deal in foreclosed properties.

The term REO refers to real estate owned. It means that the bank, the lender on the property has now taken possession of the property. So when you see people buying REO property this simply means they are buying properties that went through foreclosure.

You can take many courses on the foreclosure practice of real estate investment. You will need to learn how to deal with the banks in making your offer. You will need to learn how to calculate the amount you should bid on properties so that you can make a profit when you either rehab the home or sell the property over to another investor who will rehab the home and sell it on the open market.

Perhaps you have heard of public auctions put on by various auction companies. This is where you can go and bid on many REO properties where other investors are bidding on the same properties. You do need to have cash available to make a bid on these houses. But you should also see the houses before you bid on them.

You also need to have a maximum amount that you would bid on any one property. You do not want to get caught up in the emotion of the bidding process only to find that you will not make any money on the deal.

You also need to know how you will fund your initial investments. There are a lot of great deals in the REO market but you have to have money to get into the game.

If you can buy a property for thirty cents on the dollar and you can sell the property to another investor for fifty cents on the dollar this will be a good profit. But you still need to come up with the initial down payment.

If you are starting out you can try a hard money lender for the money to get started. Although this lender loans money at high rates of interest and for only short periods of time you might still consider this type of loan if you can sell the property quickly and for a profit. Arizona Foreclosure Provides New Investors Opportunities in the real estate market.

To find Arizona foreclosure companies that can provide you the newest information on foreclosed homes or how to deal with them, you should consider using the Net as a information source. The AZ foreclosures list grows every day or week.

As we approached late 2009, we saw a glimmer of light at the end of the tunnel as home sales accelerated to new highs in more than 2 years. Many assumed that we have hit bottom in home prices with increased activity from home purchasers bidding against each other in auctions from Florida to Nevada, Silicon Valley and New York.

Not to ruin the party but Mark Zandi, the chief economist of Economy.com thinks not. He predicts that home prices may fall another 5% to 10% in 2010 with some extreme cases of 30% in places like Miami. There is a very slim chance that home prices may recover in 2011 and it is still too premature to tell. Zandi worries that the millions of troubled loans that eventually don’t get modified will pile up and convert into more foreclosures. RealtyTrac estimates that 2 million housing units in the United States are in foreclosure or bank owned. There is a clear danger that many more are likely to pile on to the inventory. Zandi is estimating 2.4 million new foreclosures in 2010. He is anticipating that banks will become more aggressive in listing more of their properties in the first half of the year. The bank’s actions of dumping more properties in the market will cause prices to tumble even more.

Presently, the U.S. housing market is not holding on its own as it is being perked up by the extended first-time-home-buyer tax credit. In addition, the U.S government has been purchasing mortgage-backed-securities or the bundling of home loans since late 2008. The govt. purchases of these instruments have helped keep mortgage rates low and fascinating. Wall St. investors once popularly bought MBS in the hope of earning a good return. This is obviously not true today with the decline of US housing causing the market interest for mortgage-backed stocks to shrink with no investors or speculators. By March of 2010, the US govt. would have finished its acquisition of a huge $1.25 trillion worth of mortgage-backed-securities. There’s debate that the government may end its purchases of mortgage-backed-securities by March 2010. This may lead to mortgage rates to spike by a full point. This can turn away many home purchasers as it raises the price of purchasing a home.

All these factors were incorporated into Economy.com’s housing price forecast for 2010 with the consideration of local figures for income, population, interest rates and foreclosures. The result covers 100 metropolitan areas. Their 2009 projection of a 14.5% decline were quite accurate and not too far off from the actual 13.2%. According to Zandi, the hardest hit areas as he terms the ‘usual suspects’ such as Nevada, Florida, Arizona and California will experience more foreclosures. He indicated Miami was the worst market where the 2009 median home price of $183,530 is predicted to fall another 33% in 2010.

Zandi points out to the less controversial areas such as the Pacific Northwest, New York and Virginia where prices remain inflated relative to rents. The brighter spots are found in the pockets of the Midwest where the agricultural and energy economies are stronger in places like Dakota, Kansas and Nebraska. Pittsburgh which never experienced a housing bubble is the only housing market that is expected to rise by 0.41% in 2010.

Get foreclosure help by learning about the latest government program announcements. Download your free Podcast on the US housing market forecast for your own use, blog or website.

As we reached the end of 2009, we were beginning to see a flicker of light at the end of the tunnel as home sales advanced hitting its hottest levels in more than two years. Many felt that we have touched the floor in home prices with increased demand from home purchasers sparking fierce bidding activity from Florida to Nevada, Silicon Valley and New York.

Not to ruin the party but Mark Zandi, the chief economist of Economy.com thinks not. He predicts that home prices may fall another 5% to 10% in 2010 with some extreme cases of 30% in places like Miami. There is a very slim chance that home prices may recover in 2011 and it is still too premature to tell. Zandi worries that the millions of troubled loans that eventually don’t get modified will pile up and convert into more foreclosures. RealtyTrac estimates that 2 million housing units in the United States are in foreclosure or bank owned. There is a clear danger that many more are likely to pile on to the inventory. Zandi is estimating 2.4 million new foreclosures in 2010. He is anticipating that banks will become more aggressive in listing more of their properties in the first half of the year. The bank’s actions of dumping more properties in the market will cause prices to tumble even more.

Currently, the property market is not able to stand on its own as it is artificially propped up by the extended first-time-home-buyer tax credit coupled with the government’s expensive purchases of mortgage backed securities (MBS). The U.S government has been purchasing mortgage-backed-securities or the bundling of home loans as of late 2008. The government purchases of these securities have helped to keep mortgage rates low and attractive. Mortgage-backed securities were once popularly sold through Wall Street to world-wide investors betting that U.S. housing will continue to prosper. These investors purchased MBS in hopes of earning a favorable return. This of course is the contrary as we are witnessing today with the demise of U.S. housing causing the market demand for mortgage-backed securities to shrink with no buyers or investors. As a result, the U.S. government stepped in to sustain the purchases of mortgage-backed securities so as to preserve low mortgage rates in an effort to prevent further hurt to U.S. home prices. By March of 2010, the U.S. government would have completed its purchase of a whopping $1.25 trillion worth of mortgage-backed-securities. There is speculation that the government may end its purchases of mortgage-backed-securities by March 2010. This may result in mortgage rates to spike by a full point. This may turn away many homebuyers as it raises the cost of buying a home.

All of these considerations were integrated into Economy.com’s housing price forecast for 2010 with regards to local figures for income, population, interest rates and foreclosures. Their 2009 projection of a 14.5% price correction were quite spot on and not far from the reported 13.2%. According to Zandi, the worst hit areas such as Nevada, Florida, Arizona and California will have more foreclosures. He indicated Miami was the worst market where the 2009 median home cost of $183,530 is forecast to fall another 33% in 2010.

Zandi illustrates the less talked about areas like the Pacific Northwest, New York and Virginia where home prices remain expensive compared to rents. The flourishing regions are found in the pockets of the Midwest where the farming and energy economies are stronger in places like Dakota, Kansas and Nebraska. Pittsburgh which never saw a housing bubble is the only home market that is poised to increase by 0.41% in 2010.

Get foreclosure help by learning about the latest government program announcements. Download your free Podcast on the US housing market forecast for your own use, blog or website.

It’s not news that the housing meltdown continues in 2010. Just ask any one of the millions of homeowners who are receiveing Notices of Default this year.

1. Foreclosure rates show no sign of slowing

2. Foreclosures rates are increasing in the best neighborhoods. High-end homes are now feeling the price pressure as a result.

3. The unemployment rate continues to rise. It is expected to continue to rise throughout 2010.

4. Commercial property in the US is the next major industry to implodefollowed by credit card companies.

5. Inflation can only be kept in control for so long – expect rising prices worldwide starting in 2010.

6. The gov’t cannot continue the bailouts – too expensive

In fact, there’s no reason to expect that there will be ANY upward pressure on home prices in the near future. Actually, a recent report predicts that a full 48% of homeowners will be “upside-down” on their home mortgages by the end of the year. We are likely to see continued price erosion in the coming months before the decline stops and we bottom-out. The loan modification process is getting nastier. The backlog of cases is unmanageable, and growing every day. Banks can’t hire and train fast enough to keep up. Negotiators have as many as 300 files in their charge at one time! And the settlements are not adequate (witness the high percentage that are failing) and real, meaningful principal reductions seem like so much hype at this point.

More than ever, you need to use every tool available to save your home! During the housing market run-up, lenders loosened their underwriting standardssome would say they abandoned themto sell more and more loans to meet the seemingly insatiable Wall Street demand for mortgage-backed securities (MBS). Loan originators, many of whom had been hastily recruited, poorly trained and with no experience in any other market condition, cut corners to meet high sales quotas. Lenders, brokers, appraisers, Realtors, and Home Inspectors responded with what has now been labeled predatory lending. Predatory Lending is unethical and some actions are illegal. Some violations have remedies that are inconsequential to most borrowers. After all, do you really care if Chase gets a nasty letter from a regulator, or if Wells Fargo gets cited for failure to provide triplicate copies of disclosures? No, what you care about is whether/not the error or omission or commission can now benefit you by improving your negotiating position in your loan workout. Predatory Lending was common. Actually, experts estimate that MOST Adjustable-rate mortgages, taken during the 2003-2008 timeframe evidence violation of consumer protection laws. Whether through unintentional errors caused by haste or through greed and blatant disregard for the law, the violations may now provide the leverage you need to negotiate a good workout solution.

The most frequently cited violations are as follows:

1. Charging fees without providing the services

2. Charging excessive points (more than needed to buy-down rate), higher interest rates or high fees

3. Charging for private mortgage insurance when the borrower did not need it

4. Adding a single-premium life insurance policy (one that pays the mortgage if the borrower dies) and charging the premium in the loan – without prior knowledge and consent of the borrower.

5. Equity Stripping – refinancing so frequently that the fees charged “strip equity” and leave the homeowner in a risky position

6. Not fully disclosing loan terms

7. Use of low (aka “teaser”) rates with adjustable-rate mortgages to get buyers to accept loan products that are high risk

8. Falsifying (or knowingly participating in falsification) of any facts (income, home value, assets, etc.) on application to enable the borrower to qualify to borrow more than they should

9. Pushing a more expensive product for personal gain – even if the borrower could qualify for a lower-priced loan

10. Targeting poor, uneducated, elderly or minority groups with unfair loan products and taking advantage of their vulnerability

11. Failing to take into account “borrowers’ best interest”

12. Promising refinancing in a short period of time – as a way to get borrowers to accept bad loan terms, etc.

If there is evidence that your lender acted inappropriately in selling you a high interest-rate or high fee loan, or by illegally “assisting” you in preparing the documents, or by approving a bad loan, you may have additional leverage to use in your loan modification or even in a lawsuit. What if I told you that your lender violated three laws in at least seven instances during your loan process? What if one of those violations was serious enough to warrant a lawsuit! Would that give you confidence going into negotiations for a deed-in-lieu or a modification? Oh, yes indeed. Lenders and loan originators were pretty well versed in the law and how to skirt the fringes of the law. So, often your findings will not reveal egregious violations. Rather, the audit may uncover “pattern of inappropriate actions” that, taken altogether, show disregard for your rights and caused you damage. It is in the presentation of the “evidence” of violations that your case can be made and your purpose achieved.

I recommend a Forensic Loan Audit for clients if:

1. your loan was purchased during the 2002-2008 timeframe

2. if your loan was sold to you through an independent broker (not an employee of the lender)

3. if loan is an ARM, negative-amortizing loan, “Pick-a-Pay” Option ARM loan, or interest-only type

4. if the loan is a sub-prime loan or an Alt-A loan

5. if the loan had any pre-payment penalties

6. if your loan was a no-doc (stated-income) loan or low-doc (minimal documentation) loan

7. if you felt “hustled” to get the loan or sign the documents

8. If you were pressured to accept terms and costs that you had not been advised of earlier…with promises of a refinance in the near future to a better loan

9. If, when you took the loan, your Debt-to-Income Ratio exceeded 40%

10. If you were pressured to accept mandatory arbitration, limiting your legal rights.

Is Legal Action worth it? The modification process is a negotiation. Therefore, the more leverage you have the more likely you are to suceed. Evidence of lender violations of TILA, RESPA, HOEPA or any number of state or federal consumer protection laws can give you an edge in the negotiations. Forensic Loan Audits are required to identify these violations. These audits can be expensive. They are performed by professional auditors who are specially trained in this area.

Three 2010 observations

I am convinced that Forensic Loan Audits give leverage to homeowners in loan modifications negotiations. Workouts are routinely concluded faster and better for borrowers who present such information during the negotiations. Secondly, I have observed that the power isofte in the effective use of the information. That is, even common results from an audit can be used effectively in negotiations as a signal that you are serious about the negotiations and will not just stand in line…like everyone else. finally, I’ve seen that often there are what I call “low-hanging fruit”. These are clear violations of a serious nature that can be readily identified. An informed consumer can spot these violations without too much effort. After that it is simply a matter of finding a trustworthy auditor. More on this topic, next time.

Want to find out more about actually getting loan modifications? Visit Rockwood’s site about DIY Loan Modiification at Home Loan Modification

Becoming a first time home buyer is an exciting time. Becoming a first time home foreclosure statistic is anything but exciting. If you are potentially facing the action of foreclosure proceedings, Stan Allotey Jr. may be able to help.

The American dream is based on our ability to own our own home. This is the true definition of success, where no other standard can measure up against.

The American housing market was on fire a few years ago, when homes were selling almost faster than they could be built. This successful trend was unfortunately highlighted by the actions of some lenders and mortgage brokers allowed people to purchase homes that they eventually could not afford.

The result of these actions is that many home buyers are now completely ‘underwater’. That is, they owe more on their mortgage than their homes are actually worth. When this occurs, the bank, or lender deems that this is no longer a situation that they can afford to sustain. Ultimately, this results in foreclosure proceedings.

The ability to avoid foreclosure proceedings would be the ideal mode of action for those who are facing such unfortunate circumstances. Currently, there are a few options available to those who find themselves in this situation.

If you find yourself facing a potential foreclosure due to an ‘underwater’ loan you might consider the process of mortgage remediation. Foreclosure negotiation experts can assist you in achieving loan modifications that both you and your lender could come to agreement on, and in essence, completely avoid foreclosure.

If you find yourself facing foreclosure proceedings and you feel like you may have a legitimate argument for loan modification, you should seek the assistance and counseling from an expert like Stan Allotey Jr. Only with proper guidance can you successfully arbitrate a modification that satisfies both you and your lender.

For more information and questions about Stan Allotey JR. please see the Mag-AZ team at www.mag-az.com

Unfortunately, the term foreclosure is more common these days than the thought of a first time home buyer. It is true that the housing market appears to be on the upswing, however the foreclosure rate for those who received bloated loans have not receded. If you are facing a foreclosure action, Stan Allotey Jr. may be able to help.

The definition of the American dream is to buy and own your very own home. The ability to achieve this accomplishment is truly the measure of success in our society.

The American housing market was on fire a few years ago, when homes were selling almost faster than they could be built. This successful trend was unfortunately highlighted by the actions of some lenders and mortgage brokers allowed people to purchase homes that they eventually could not afford.

The result of these actions is that many home buyers are now completely ‘underwater’. That is, they owe more on their mortgage than their homes are actually worth. When this occurs, the bank, or lender deems that this is no longer a situation that they can afford to sustain. Ultimately, this results in foreclosure proceedings.

The unfortunate result of an ‘underwater’ loan is foreclosure. Recently the government has pushed anti-foreclosure measures to banks and lenders to reduce the amount and rate of foreclosures in this country.

Foreclosure proceedings may be able to negotiated between the lender and the borrower. To effectively do this, it is better to seek the assistance of a mortgage negotiation expert. A mortgage mediator may potentially help you modify a loan to avoid foreclosure proceedings.

If you find yourself facing foreclosure proceedings and you feel like you may have a legitimate argument for loan modification, you should seek the assistance and counseling from an expert like Stan Allotey Jr. Only with proper guidance can you successfully arbitrate a modification that satisfies both you and your lender.

For additional info or questions in regards to Stan Allotey JR. please visit the Mag-AZ group at www.mag-az.com

The recent first time home buyers tax credit has given the housing market a booster as compared to the last few years. And as encouraging as this is, the grim reality is that foreclosure rates have not declined, highlighting this unfortunate epidemic. For those who are facing one of these poor situations, Stan Allotey Jr. may be able to help you.

The measure of success in our society is directly related to our ability to afford and sustain the purchase of our own home. This is truly the definition of the American dream.

The American housing market was on fire a few years ago, when homes were selling almost faster than they could be built. This successful trend was unfortunately highlighted by the actions of some lenders and mortgage brokers allowed people to purchase homes that they eventually could not afford.

The result of these actions is that many home buyers are now completely ‘underwater’. That is, they owe more on their mortgage than their homes are actually worth. When this occurs, the bank, or lender deems that this is no longer a situation that they can afford to sustain. Ultimately, this results in foreclosure proceedings.

Foreclosure is not a term that any home owner wants to hear or be faced with. However, if you find yourself in this situation, you should know that there are options that you should consider.

If you find yourself facing a potential foreclosure due to an ‘underwater’ loan you might consider the process of mortgage remediation. Foreclosure negotiation experts can assist you in achieving loan modifications that both you and your lender could come to agreement on, and in essence, completely avoid foreclosure.

A foreclosure proceeding does not have to be the end of the road for a home owner. You should seek out professionals in loan modification procedures, such as Stan Allotey Jr., to negotiate your the terms of your loan. With these types of alternatives, it possible to achieve and keep your American dream.

For more information or questions in regards to Stan Allotey JR. please see the Mag-AZ team at www.mag-az.com