Information is changing quickly.  We’ll have additional loan modification information within the next 48 hours.  This information will be for the state of California.

February 28, 2009
Economic News and Information that Affects You

If you’ve been following the loan modification roller coaster for the past year, you know of the tremendous ups and downs in the programs.

The lows included home owners being hung up on, paperwork overloads, bogus loan modification scams and sudden foreclosures after a presumed modification.  Does it hit home?  Absolutely, in fact, 3 homes in my culdesac all attempted loan modifications only to fall to foreclosure.  Our mail carrier even told me yesterday that he had 2 weeks to vacate a home he had owned for 25 years.  He said he had an approved loan modification that the bank basically ignored and foreclosed anyway.  Everyone has been affected either directly or indirectly.

The highs for loan mod programs are fairly new and are a result of some positive market forces but also the recently passed stimulus package.

Market forces have driven mortgage rates down to historical lows, currently ranging from 4.5%-6% depending on a variety of factors.  The FHA is constantly adjusting their loan limits on a per-county basis. Recently, many of these limits have come up, allowing buyers to apply for more expensive homes.  To check on your particular county, visit the FHA website for the most up-to-date limit information.

Another important high is that funds for refinancing have also become more available along with funds for loan modifications.  Some of this is a result of the stimulus package that just passed.  It allows for some homeowners that are under water to refinance.  This means they owe more on the home than the market says it’s worth.

For information on modifying your existing loan call (888) 233-3213 or fill out the short form on this page.

Rancho Cucamonga and the Inland Empire have been identified as the root cause of the current housing disaster.  Rapid growth, easy loans and a desire to live outside Los Angeles caused thousands of local homes to be repossessed.

If you’ve tried to refinance or to gain a loan modification and failed, read on, help is available…

The new loan modification programs are due to help tired homeowners finally get the help they need to refinance or obtain loan modifications.

The Obama Mo Mod program is actually a computer program designed to modify Fannie Mae and Freddie Mac loans in the thousands per month.  Little is known about this program but it is intended to expedite the loan modification process.  The Mo Mod program was part of the recent stimulus package that was passed by Congress.

Before the recent incentives and help programs arrived, homeowners were left on the phone waiting for hours with their banks and government agencies that were supposed to help.  The paperwork was endless, faxes were often lost and hang-ups became the norm.  This type of environment exacurbated the situation for homeowners that were in dire need of immediate assistance.

How To Qualify for a Loan Modification or Loan Refinance

If your home has already been lost to foreclosure or it has gone to auction, refinancing and a loan modification will not be available.  If you are currently making your mortgage payment but know that missing payments in the future is imminent, or you’ve already missed 1-2 payments, you could be a good candidate for a loan modification or loan refinance.

The restrictions have loosened somewhat.  Formerly, only homeowners with 20% remaining equity could consider a refinance.  Most people who still have this type of equity aren’t in trouble and don’t need to refinance nor do they need a loan modification.  Today homeowners can be under water on their mortgage and still have opportunities available to them.

Interest rates have also dropped to historic lows ranging from 4.5-6% depending on the points paid up front and a variety of other factors.

To find out more about obtaining a loan modification or to refinance your mortgage call (888) 233-3213 or fill out the short form on this page.

February 20, 2009

The most up-to-date stimulus and loan modification information for the Inland Empire:

1.  Loans will become more affordable by providing access to lower cost refinancing to homeowners that are responsible and suffering from a sharp decline in home values

*This new plan can allow 4-5 million homeowners to refinance.  These new incentives are helped by mortgage rates lower than they’ve been since the Depression.

Currently, most people are unable to refinance because 20% equity in the home is required.  Very few people have this today.  The administration will be assisting homeowners who took out conforming loans that are guaranteed by Fannie Mae or Freddie Mac.

Refinancing with a much lower rate can reduce payments significantly.

2.  Greater stability will be created for 3-4 million homeowners who are currently considered “at risk”

*Many responsible homeowners have seen their mortgage payments rise significantly, quickly becoming unaffordable.  With the new stimulus help, those who agree to make reasonable monthly payments will be able to stay in their homes.  There are qualifying guidelines.

The new stimulus plan does not assist speculators or those who simply wanted to flip homes for profit.

The plan helps to stop the slide in home prices by preventing foreclosures and the damage that occurs to the entire neighborhood.

Contrary to some reports, the loan modifications are available to households where foreclosure is imminent but they have not yet missed a payment.

The plan calls for clear and consistent loan modification guidelines.  Banks receiving Federal assistance are required to implement loan modification programs consistent with the guidance of the Treasury.

3.  Low interest rates will continue as the Fed continues to purchase mortgage backed securities, building further confidence in Fannie and Freddie

**Difficulty has been reported in gaining assistance for loan modifications.  Long waits, hang-ups, endless faxing of paperwork that leads nowhere.  For immediate loan modification assitance use the phone number and form below.

IRS Stimulus Information
FHA Information 

If you live in California and need further information on loan modification and how this program works with the new stimulus, call (888) 233-3213 or fill out the short form on this page.