Loan modifications are B.S. unless they result in lower principal amounts that you owe.

Most folks are under the misconception that a loan modification that ends up lowering how much they owe is impossible.

That's because they are listening to the banks. The banks have huge departments, loss mitigation departments, staffed by nice people who are poorly trained call center representatives. Their job is to tell you that you have to enter endless "trial periods" and that principal reductions are "rare or impossible."

Well that is not true. If I want tax advice, I do NOT call the IRS. I call my accountant. If you want advice about lowering the amount you owe, go to folks who really do this for a living, who lower people's principal balance for a living. Those people are attorneys and the attorneys go to the bank's legal department where REAL loan mods are done, not the bank's loss mitigation department.

This brief video exposes the truth. A big bank like Morgan Stanley hands back the keys if a deal no longer makes sense. Homeowners should get wise. You are the "corporation of you" and you should behave objectively, and make the best decisions possible without emotion.

You CAN often stay in your house. You may have to sue the bank. You may not have to go this far. Meantime you are not making payments, often for years, until the legal system finishes its work.

I am not a lawyer. Yesterday a woman emailed me warning me that I may be doing something illegal. Well, I don't do loan mods. I don't give legal advice. I am exercising my rights under the US Constitution to say what I feel. I don't take a dime and never have for people who I refer for loan mods.

I put together a home study course with about 9 hours of video that gives you great information on principal reductions, loan mods that are REAL, how to do a forensic audit, how to fix your credit. The folks who I worked with did the whole training for free, in the hopes that if they spill the beans to you, you'll buy my course and be impressed enough with them to call them and have them help you.

If you are interested in a real approach, one that has helped people get principal reductions through KNOWLEDGE the banks do not want you to know about, then please:

Click here for Loan Mod Breakthrough training on loan mod principal reductions

And please leave a comment or question. I'll try to answer all I can. Thanks!

–Richard Geller

And also, some are interested in getting a loan mod for their house, one that involves a principal reduction.

Also, many people tell me that they have bad credit card debt and they don't know what to do. They want help with that.

Some people want money making opportunities in real estate, or finance. There are some good ones and a lot of bad ones that I know about and that I work in (hopefully the good ones).

Can you leave a quick comment as to what you are interested in seeing more info on? Where you would want to see us focus? Thanks!

warmly

–Richard

Credit fears keep many of my students from settling their horrendous credit card debt, or getting out of a terrible underwater mortgage.
This video shows you how simple and easy it is to fix your credit when you settle.

Leave a comment on your situation or question, please. Thank you

Here is a note that is typical of what I get all the time every day.

Greetings Richard,

I've been praying about what to do with my finances for a long time now… I guess I just wasn't ready to get the concepts you've mentioned in your material.

Anyhow, about a year ago I was approached by a credit consumer company to help me settle my debt and almost went with them, but didn't feel write about it. I wanted to hear more opinions first.

I finally got serious about doing something about my debt when Citibank increased my APR to 29.99% out of the clear blue. I contacted them and there was nothing they could do they said. I've had excellent credit and always pay my minimum balances on time for years with them.

I have slightly over $30,000 in credit card debt from starting a business I didn't follow thru with and some personal development seminars I attended… probably some other frivolous items, too.

Anyway, I'm experiencing sooo much inner relief thinking of what it will be like to be out from under this debt that I thought I'd have to work towards and maybe eliminate in 8 years. Thanks for making the youtube clips. I've got more to learn and so I'll be digging in.

All the best,

"Laurie"

My answer to this is to think strategic default.

What is a strategic default? Two things:

1. Your FICO ends up okay. It may be bad for a bit but it comes back, and

2. Your liability FALLS to a manageable amount. Not your monthly, but your TOTAL AMOUNT YOU OWE is
something you can handle given your finances.

3. The timeframe is not years, but MONTHS.

I want to hear what you have to say, your situation. I will try to answer as many as I can.

Go here and post your situation.

1. I want to start a dialog with you on strategic defaults.
2. Settling cards, settling mortgage loans.
3. Principal reductions.

This is going to be the next BIG thing if it isn't already.

Go ahead and post your situation here. Your email and name will not show up to the world. I'll try to answer as many of these as possible and we can talk about it in my daily email. Change the facts around if you want, just for privacy.

Thanks!

P.S. Post now while it's fresh. Let's get some great dialog going. Thanks!

Read my important disclaimer

Finally, third major effort, she made it. Congratulations to you, "Nikki". You are amazing. And you are one of the very few out of hundreds of thousands who are in these forever type "trial periods" to actually get anywhere.

Meanwhile, if you are an investment banker with Goldman Sachs, you are not in the recession anymore.

All over.

Another woman I spoke with yesterday was interesting.

She and her husband have amassed $130,000 in

cards she owes on. And a big second on the house.

For business purposes. She got caught in the real estate crash. No fault of her own, really.

She said, what should we do?

I explained to her what I would do. I would settle those obligations. And I would try for dime on the dollar type settlements and work on getting good FICO scores and be out of this mess in six months.

Rather than enslaving my family for year after year.

She said, but what about ethics? What about what we teach our children about keeping our word and doing what we say we are going to do?

I say, reality is what is real. Drop your concepts. Drop your beliefs that are stopping you from seeing what is real.

You are paying several THOUSAND per month forever to the banks.

Those banks got a huge bailout from the US gubmint.

At your expense.

And the money they extended to you was PRINTED anyway.

It is completely all set against the average person this way.

Don't take it personally. It isn't personal. It's business.

Allowance for bad debts. Reserves set aside for expected losses.

See what is real, settle, and move on. What a gift that is to your family, I told this woman. To be out of any obligations and free. And even with a decent FICO.

Yes, The recession is over if you happen to be an investment banker with Goldman Sachs.

If you are like the rest of us, it may not be quite over.

Mortgage Balances are Falling Slowly, Home Values Still Plummeting

What many folks don't get is that this is the Depression not a recession.

Credit was extended like crazy. The US government and the banks and the whole world's financial system is built on a lie. A lie that it's all about consumption and the US consumer getting even further into it by buying more Chinese made junk at Walmart.

Well, we don't need that. We know there are options, don't we?

Take a look at the chart on the right. You'll see owner's equity has plummeted to a new low. That means that if the typical American "owns" 35% of his or her house…then who owns the majority?

In my book, the banks own residential real estate in the United States right now. And Fannie, Freddie and the "Too Big to Fail" banks are really who I mean.

Does that change perspective on this? An enormous grab from the middle class to the big banks and ultimately the US government?

Now, what do you think?

Write down what you would do in this situation, as a comment. Thanks!

warmly,

P.S. Please leave a comment here about what you think I should tell these folks who I write about above.

Copyright (c) 2009 Calworth Glenford LLC. All rights reserved. Duplication of this email without written permission is prohibited.

Chart used by the kind permission of ContraryInvestor.com.

This video has a lot on loan mods, loan mods for investment properties, and what to do when the lender only wants to offer a forbearance.

This is in answer to Jane's email:

I have been enjoying reading your information and just ordered the credit card and mortgage relief formula programs. I am wondering if you could give me some tips on my situation.

I recently lost my job and began collecting unemployment.

After a month of receiving unemployment, I had surgery.

I have a rental house and a primary residence that have lost a huge amount of value and are majorly upside down. I can't sell them or refinance because of their market value. My renter is several months behind.

I applied for a loan mod with my primary residence, but they have strung me along since last January setting me up on 3 month forbearance plans only to make me start over in the process at the end of those each time. It is a never ending battle.

My credit cards are maxed and I can't even afford the minimum payments anymore.

My question is: How do I prioritize what to pay? Who gets paid first?

Loan modifications and situations from some of my students. Leave a comment or question and I'll try to answer it. Thanks!

Keep an eye out for MERS and lawsuits involving MERS when it comes to your mortgage loan.

This video briefly discusses a few of the issues. The New York Times article is worth reading.

John DiCaro, a lawyer representing PHH at the hearing, was in the uncomfortable position of having to explain why there was no documentation of an assignment to U.S. Bank. He did not return a phone call seeking comment last week. Ms. Johnson, who couldn’t be reached for comment, did not attend the hearing.

According to a transcript of the Sept. 29 hearing, Mr. DiCaro said: “In the secondary market, there are many cases where assignment of mortgages, assignment of notes, don’t happen at the time they should. It was standard operating procedure for many years.”

Judge Drain rejected that argument, concluding that what had been presented to the court just did not add up. “I think that I have a more than 50 percent doubt that if the debtor paid this claim, it would be paying the wrong person,” he said. “That’s the problem. And that’s because the claimant has not shown an assignment of a mortgage.”

Mr. Shaev said he was shocked when the judge expunged the mortgage debt.

“We are in uncharted territory,” he said. “Right now I am in bankruptcy court with a house that has no discernible debt on it, yet I have a client with a signed mortgage. We cannot in theory just go out and sell this house because the title company won’t give a clear title on it.”

The loan modifications through the bank's legal department can get you a new loan at 90% of the current appraised value of your property. The requirements are that the bank feels you have a strong legal case against them. And that you have verifiable income to support the new loan.

Click here to get your Loan Mod Breakthrough course at the special low price this weekend