Principal Reductions Loan Modifications

I am 100% behind Richard. There are so many games the banks are playing and deceptively using to deny your Loan Mod request. It's all a waste of time if you don't educate yourself.

And I agree with Richard that you have to aim for a principal reduction.

Try Richards course. If you aren't successful then try a lawyer. But if you can't afford a lawyer, don't want to skip payments forever and you're simply frustrated by the whole thing then use the Short Sale option.

Property values are getting ready to fall again here in California due the fact that the tax incentives will end on April 30.

Many current home sales are from first time homebuyers buying REO's and distressed properties.

But after those incentives are terminated, sales will drop and prices will fall again. I used to be in the Loan Mod biz here in San Diego, California but no more.

I specialize in Short Sales now, free and legal Short Sales. It's going to be a mess in the real estate business for quite awhile, so unless you live in a castle and definitely want to make sure your family inherits it then work hard to keep your home. But if you're sick and frustrated with the whole thing and would rather find a legal solution to getting out of the mortgage "game". Look for someone like me and my team that do your Short Sales for free.

Thank you Lou. I totally agree. If you aren't going to get a real principal reduction, do a short sale. Move on with your life. Who needs this garbage cluttering up your life. I did a short sale on my own residence in California way back when and the only thing I regret is that I didn't understand what I do now, and I worried about things that were completely silly just due to my ignorance.

–Richard

Having lost my own residence AND two investment properties, I KNOW that banks DON'T want to work with you. They have the attitude that 'Obama and company' will restore ALL loses they {the banks] lose through foreclosure! Who cares if we lose money on the deal.

David

They don't care. They are bailed out and you and I are not. That's it. This Administration like the last one is only concerned with its Wall Street buddies. That is evident from what they are doing. And it isn't going to change. There are plenty of statutes on the books that you can use to see if the lender committed illegal acts when they made or serviced your loan. The statutes have teeth to them. So what are you waiting for, you who are reading this? Start seriously investigating this.

–Richard

Richard I just wanted you to know that all the information you have provided for loan modifications has been very helpful. I have been in a "trial mod" for 9 months now and I am going through an attorney because the delays on the MHA just smacked of crap. I most definitly will try to have my attorney have the principal balance lowered, never thought about that, just wanted to get my mortgage reduced. Again thank you for the valuble information you provide.

Thanks for your kind words, Pat. This trial period is just the bailout game — bailout the banks, call a loan performing when it isn't so they don't have to look insolvent even though they are insolvent.

–Richard

my friend went to a so called company that said ,hey we can get you a new loan at 90% of appraised value. he did that in april 09. nothing has been done yet. they do have his 1500 dollars though. get business collect fees upfront and accomplish nothing. I hope your way works without paying upfront.

I do not do mods. I am very involved helping people get information that I judge is accurate. I also have people that I refer but I get not one thin dime from them, and never have, for any loan mods, in the past present or future. I rarely recommend people at all.

–Richard

How about the big banks, Chase, Bank of America, Wells Fargo,

They are all doing the same thing. They all have to be threatened and sued if needed, to get a real loan mod with a principal reduction in most cases.

–Richard

We opened loan modifacation program here in Florida 6 weeks ago through Guardian Group and we have processed 350 in 4 weeks.

We are very interested in getting into this phase of real estate investments.You have provided us with a wealth of info. most successful people like yourself will not share! I look forward to hearing more from you! Thanks for sharing your knowledge!

Got loan mod approved today. Worked on it for two years and never got anywhere until I made the decision to stop paying the 1st mortgage. Was behind 4 months. Here's the deal: 5 years, interest only at 4% then 5% for the remainder of the loan (lower my payment by $800/mo.). Also have a 2nd mortgage that I'm behind on 6 months. No equity so waiting to see what happens. Hope I can offer a small settlement. Both loans are with Wells Fargo.

@ Jim: I'm in the same exact position try to purse loan mod with wells fargo. Before they would not work. Now that i'm 3 months behind they keep calling me and i'm about to call them to pursue loan mod on the 1st mortgages. On the second i may pursue a settlement route. Looks like you've already negotiated with Wells Fargo. Did you do that on your own? How did you negotiate? What were some of your roadblocks?

Jim, would you open to me contacting you to get some free advise :)? My email is everydayinvestor@gmail.com

Much appreciated
Mike G.

You not doing it for free.
Whay are you missleading people!!!
You will get pay by BANK. Right????
Thanks Mike.

No Mike I don't get paid by the bank.

–Richard

I was just notified yesterday by my lender that I do not make enough money to have my loan mod (which I have been in for 9 months)…..I have an attorney and they said I cannot do a principal reduction and they are going to talk to the lenders today and see if another type of modification can be done……I feel like I have been used by the lender and the lawyer……what are my options as I am not GOING to give up……thanks

You can work on increasing your income. You can resubmit the deal after you have done so. You can sometimes reduce withholding on your salary and that is enough. Or you can add income by charging a housemate and showing proof of this additional income.

–Richard

Sue the lenders for fraud, unfair and deceptive business practices if you think they changed your income on a full doc or even no doc loan. This is what I did. My first of two WAMU cases was dismissed. No more foreclosure after 3 years. They will re-file again and I will push for discovery again. They failed to find some of my discovery and for that, they will lose the next time, and the time after that.

You can win but you need a great foreclosure defense attorney who can move the court and put the Judge on notice you will set up for appeal. If you do0n't fight, kiss goodbye to you home, down payment and your dreams. MILLIONS OF LOANS WERE FRAUDULENT BY THE LENDERS FROM 2003 - 2007!!!

Check out other sites like Livinglies.Org, MSFraud, and Foreclosurehamlet.org

Network with others in foreclosure and keep the faith. Fact and Law are just now coming to the forefront. Keep the faith!!

Thank you for the suggestions. Good luck. For many of us, the down payments are already gone but it's a matter of getting a new loan with reduced principal in line with the new home value.

–Richard

Hi Richard,
I wanted to thank you for all your valuable information that you routinetely get to all of us.
I'm presently on a so called TRIAL PERIOD for 3 months and I needed to know if I can still try a principal reduction since my house is value at a 60% of what I financed for in 06. i first went throught a Loan mod company that was highly recommended to me and all they did was run away with my cash. I'm trying to do it myself and I also wanted to know if I can still short sale the house.
Thanks again
Juan

Hi Juan, I sure would do a short sale if I was so upside down. And I am sorry that the people you had do your mod ran off with your money. I am a huge believer in the do-it-yourself approach and hardly ever recommend anyone because there are so few that are deserving of a recommendation..

–Richard

Hi Richard I have purchase the mortgage Relief Formula from you and the Credit card Relief Formula. MY house is for sale / I am hoping to do a short sale, but meanwhile I would like to know if you know of any good attorneys that are doing loan mods with the objective to get a principal reduction. I live in Illinois
thanks
Maritza

Try one of the folks at The Loan Mod Breakthrough Panel of Experts

–Richard

Hi Richard–
My wife and I have learned a lot from your program over the past several years. We now would like to proceed with loan mods on 2 investment homes we own in Florida. They are both occupied by renters, but both are seriously underwater. Since we're busy with our regular work lives in California, we could use some help. Could you recommend an attorney or other professional in Florida that could assist us? We're especially concerned, since Florida is a recourse state and we certainly don't want to risk the banks coming after our other assets.
Thanks in advance for any suggestions you might have.

Richard

I watched the webinar a couple 'days back and was floored. I already see the need for your pogram of Hedgefund Lening but now the need is about to become that much greater. I would so very much like to participate in the program because no one who has contacted you in more in need that I. I cannot afford the cost at this point because I am on disability and paying on mortgage out of this and I know that if I could just refer one person or company to the lenders it could all turn around for me. Is there any way a man in my position can take advantage of this?

@ Mike G. - I hired a mortgage broker to handle the loan mod ($2,000). He has a local radio show and is well respected here in my area. I got turned down TWICE but he didn't take NO for an answer! He's a real bulldog and basically had to verbally abuse Wells Fargo to get them to listen. He even said he was going to lay out my case on his radio show! I know everyone's situation is different, but there is no way I could have done this myself even though I have a strong business and marketing background. I know that he and his staff spent literally days working for me and they finally got the job done.

Here's a few more specific's. My first is serviced by Wells Fargo but the investor is Bank of America. I had heard that B of A was a real pain to deal with and this turned out to be true. The second mortgage is serviced and owned by Wells Fargo. This is a 20 year, fixed rate, cash out loan. It is not a home equity account with a checkbook. I got cash out at closing. Next week I will be 180 days behind which means that the loan will move to a "charge off" status according to WF. Of course they "encouraged me" to make a payment to delay the charge off another 30 days. It doesn't make sense to do that since my credit is already trashed and I'm way under water on the house. So, when it goes to charge off status and the collection calls start coming in hourly we plan to make a settlement offer. Who knows if they'll accept but if they don't I expect them to sue. If they do, my plan is to file bankruptcy (Ch.13) which will eliminate the second since it's now "unsecured debt" just like a credit card.

BTW, I got into this mess because I have been unemployed for over a year. However, I have just enough "other income" to meet the guidelines for a loan mod.

Let me know if you have any more questions.

@ Jim: Thanks a bunch for sharing your loan mod experience. We are all feeling the pinch on our primary home & investments rentals, and the banks not being responsive on loan mods make it a dire situation. I'm currently W2 employed but not sure if i'll have that job after May which is why i'm scrambling to pursue loan mod ASAP. I thought of hiring an expert but it's hard to trust them with a lumpsum payment upfront. So, i decided to start to call the bank to start the loan modification file on my own and see how far i can go.

Which mortgage broker did you hire to do your loan mods? Could you share that with me? my email is everydayinvestor@gmail.com

I sure could use some perspective and help.

Mike G.

I am an attorney who practices loan modifications throughout the United States. My success rate is about 88% Anyone who claims higher is lying!!!!!!!! Contact me if you would care to talk about your situation. I am not legally able to collect an up front fee for my services. E-mail if you like.

Ang - what is your email?

Mike - I live in Southern CA and the laws have changed since I hired my broker to help me. If you live in CA then the following should be of interest…

California Civil Code Section 2945 regulates foreclosure consultants. There is an additional requirement with respect to loan modification services, as discussed below. As with many code sections, the restrictions are complex and many. But here are the primary ways in which foreclosure consultants and loan modification services are regulated.

First, no foreclosure consultant and no real estate licensee is allowed to collect any advance fees for services as a foreclosure consultant once a Notice of Default has been recorded against your property. California lawyers are exempt from this prohibition.

Second, even if a Notice of Default has not been recorded against your property, in order for a real estate broker to assist you in obtaining a loan modification, or to otherwise negotiate a possible resolution to your problem, the broker must have you sign an agreement that specifically states what services will be performed, when they will be performed and how much you must pay.

Third, a broker may not have you sign any such loan modification agreement until it has been submitted to the Department of Real Estate for review and the broker has received permission from the DRE to use it and collect an advance fee.

Fourth, licensed real estate brokers who provide loan modification services without collecting fees in advance are not required to receive the DRE’s permission so long as their services are fully completed before they are paid by you.

Fifth, foreclosure consultant contract must allow the homeowner the right to cancel the contract until midnight of the third business day as defined in Section 1689.5 of the California Civil Code.

Sixth, foreclosure consultant contracts must provide an additional notice to the homeowner in 14-point boldface type stating when fees can be taken and notifying the homeowner that the consultant cannot ask you to sign any lien, deed of trust or deed.

Seventh, it is a violation for the foreclosure consultant to claim, demand, charge, collect, or receive any compensation until after the consultant has performed each and every service the consultant contracted or represented he or she would perform.

Eighth, it is a violation for the foreclosure consultant to charge any fee or interest which exceeds ten percent per annum of the amount of any loan which the foreclosure consultant may make to the owner.

Ninth, it is also a violation for the foreclosure consultant to take any wage assignment, consideration from any third party, acquire any interest in the residence in question, take any power of attorney, induce the owner to sign other contracts which are not in compliance, or enter into an agreement to assist the owner to obtain surplus funds prior to 65 days after the trustee’s sale has been conducted.

Tenth, an action may be brought against a foreclosure consultant for any of these violations and judgment shall include actual damages, reasonable attorney’s fees and costs, equitable relief and exemplary damage of at least three times the compensation received by the foreclosure consultant. The foreclosure consultant may also be punished by a fine of up to $25,000.00 or imprisonment for up to a year or both for each violation.

The reasons for these regulations are many. Foreclosure consultants have, in many cases, been found to charge high fees, require the payment to be secured by a deed of trust on the residence, and then have either performed no service or worthless services. Some foreclosure consultants have then been known to purchase the homes at a fraction of their worth shortly before the homeowner loses their home.

ANG,

What is your email address and/or website address. Thanks!

DEAR RICHARD : Ifeel so grateful for your sharing of this FORECLOSURE information I was part of a Company called FORECLOSURE PREVENTION SERVICES out of ARIZONA and managed by JEFF SEGAL I dont know if you have ever heard about tha company the fact of the matter is and was that I never made any money and we were not able to prevent the foreclosure and they never spoke about loan modification as a possibility of actually reducing the loan , so I feel very lucky ,because guess what my house has been put on the list to be sold on MARCH 2/ 2010that is in a week . I dont know if I am going to be able to stop the sale of my house,but I am going to try ,because you are giving me hope that I have never felt in so long , HELP ME PLEASE and the lord will help you I am in texas RUDY

Dear Richard, I am a mortgage consultand, but business are very slow, I am trying to educate myself with loan mod. I can help people and charge a fee, but I DO THE WORK, I do not scam them, but to fight with the legal deparment, do we need a lawyer? and what happens when the Banks already file the complains,can still try to work with the Banks, please I am fallowing all your advises, there is so muchuuuuuuuu that I am learning that I feel so confident myself that I CAN DO THE WORK.

Richard you are absolutely right with this loan mods. I would really like to have a principal reduction rather than trial mods. I lost my job 2008 and was out of job for a couple of months though I have a job right now I don't get pay as much before. I cannot pay anymore my credit cards and struggling to pay my mortgage. My mortgage was with countrywide w/c is now BOA. I called BOA Oct 2009 for loan Mod..rep says in 45 days I will receive papers on the mail for me to fill up. No papers showed then I called Nov this time rep says it needs more info so we spent 2 hrs on the phone for all information they need. Rep says 15 days I will receive paper.No paperworks received. Dec. I called again and this guy told me that theres nothing written or notes on my account about Loan mods and we went over again about my finances. But nothing happen. I called again this time rep said I am not qualified for HAMP program and theres nothing they can do. Whats so funny was I am an affiliate of BOA. It's so frustrating because everyday I see on my screen at work how much thousands and thousands of people they have help for this loan mods and here I am working for them but can't get help. I live in FL. The neigborhood I live in house prices went down to 100k less than 2007 appraised value. Thanks for your valuable information I will definitely look for a lawyer who can help me.
Also, I want to know when is the next class for Commercial Funding going to open. I needed a part time business for now until I can get out of 9-5 corp job. When I lost my job it made me realized that we need to take care of ourselves. It hurts to see my family specially my kids struggle too. There's no such thing as job security anymore. The only true security is within us and the ability to make money regardless of the economy.

Richard, I have been working with my New Lender JPMorgan Chase since August 2009. trying to get a Work out Plan. As of Decemeber 16,2010 when I had to go to court to stop a forclosure of my home. I was approved on that day for a 3 month Trail Period that was to start Jan 01, 2010 thru March 01, 2010. After going thru the 3 month trail period,it will then be determmined if I would recieve a permanent solution with possible principal reduction. I am still waiting on my documents to sign to appove of terms of trail period which were suppose to be sent to me in Dec 2009 so I could start trail period the 1st of Jan, 2010. I hd been calling Chase Loss Mig dept every week most times twice a week to find out the status of docs, to be told there isn't any updated info to give me and they will email my negot & his super for updates and to call back within 48hrs. It is now Feb 26,2010 and on yesterday I finally got call from my NEW negot to tell me I have to start process over because there is errors in amts I was to start paying in Trail Period. Please!!!! What do I do???? Thanks.

Richard, never commented on a site before. Please forgive me. I do live in IL and my old Lenders were Long Beach, then WAMU which was bought out by Chase.
Thanks.

How can anyone be for principle reduction and think that it's fair. For those people who continue to make their payments and are responsible for the actions they took they are penalized and those who are irresponsible are being rewarded. Very few people were ripped off by the banks and the brokers, the majority of them knew exactly what they were doing. I personally know several people who fudged their financial information just so they could get a loan that they should never have been given, not to mention all the no verifying income loans. We're turning this nation into the land of entitlement, where everybody gets bailed out and nobody takes responsibily for their actions. What about all the people who's loans aren't underwater who have lost 30% plus on their equity, they get nothing while those who should have never bought get rewarded. I'm all for loan modification to bring the interest rate down but not the principle. We have 40 million people on welfare and 50% of our population pays no taxes and now we're bailing out people who knew they were buying more house then they could afford but they were banking on the home appreciating. This is no differnt then making a bad investment in the stock market or the 96% of small businesses that fail in the first 5 years. Let the free markets work and let these homeowners rent for now, that's how it's always been in the past. These banks are not going to just give these principle reductions and eat the loses. This will all be passed on to the consumer in the form of higher fees and rates. The ones who will eventually be paying mostly for this are the ones who never got a principle reduction.

Bob, I do see your point. But I do not agree. I used to feel as you do, but what changed my mind was this.

–Richard

I did a mod that took a year to do. The lender is through a "Service Company", so no one can tell me the actual name of my lender. I have to deal with the Service Company, and they know nothing. You talk with one and figure you're gained some ground, but then talk to the three weeks later and they've never heard of the person you spoke with previously, and worse, have no record of any progress from that call. We begin from the beginning all over again. The success I had eventually was with a non-profit organization. The got my interest to three percent for a year, then progressively a little higher over a period of five, where it maxs out at 5%. No complaint there. The problem is that, ignoring the fact that I lose out on my 20 percent down of $75,000, the loan balance of $300,000 has grown to $344,000 to make up for lost payments, interest and late fees. At the end of thirty years, I owe a "Balloon payment in the amount of $145,000. The market value of your property is $120,000 - $140,000 currently. What a deal,huh? I'm good for a year or two or three, but I plan on walking away as soon as I can financially do so. I'm studying Short Sales and plan to begin soon.

I am with you. The mod you got is very typical. Nothing you did wrong.

–Richard

Hi, Ang, can I have your email address or contact number. I'm in CA and am looking for an attorney. Thanks!