Loan Modification

Under the Making Home Affordable act, the Obama Administration directed lenders to begin modifying home loans for homeowners whose payments exceeded 31 percent of their gross annual income. Mortgage lenders can modify the loans in a number of ways, including lowering the interest rate on a temporary basis to 2 percent, or extending the loan term, or cutting the principal balance of the loan. While very few lenders are cutting the principal balance, many are extending the loan term or lowering the interest rate to get homeowners to the place where they are paying just 31 percent of their gross monthly income toward their mortgage, homeowners’ insurance and real estate property taxes. Find out more about the Making Home Affordable program, and whether you might qualify for a loan modification, at www.makinghomeaffordable.gov. If you need help with your loan, you’ll want to call the Homeowners for HOPE hotline at 888-995-HOPE. The HUD housing counselors at the other end of the line can h

Loan Modification Process | What to Do if You’re Rejected

The loan modification process can be very frustrating. If your loan modification is rejected, consider selling your house in a short sale. Q: We are currently underwater on our primary home mortgage. Our mortgage has been modified twice and all …

Continue reading

Posted in Loan Modification, Short Sale | Tagged , , | 6 Comments

Do I Need to Pay Taxes on My Loan Modification?

Want to know if you need to pay taxes on a loan modification? We answer a question about loan modification today. Q: I modified my home loan last year following my divorce at the end of 2011. My first new …

Continue reading

Posted in Income Tax, Loan Modification | Tagged , , | 5 Comments

Loan Modification Not Enough? Sell Your Home

If your loan modification is not enough, you might want to sell your home and find a more affordable home. Q: The good news is that we got a loan modification. Unfortunately, the amount is now too high because my …

Continue reading

Posted in Foreclosure, Loan Modification | Tagged , | Leave a comment

Can a Loan Modification Hurt Your Credit Score?

Applying for a loan modification can affect your credit score while you wait for your loan application to be processed.  Q: Unfortunately, I am stuck with one of the worst monster mega banks for my loan modification. When I applied …

Continue reading

Posted in Credit History, Loan Modification | Tagged , , | 5 Comments

Can I Qualify for HAMP Program on Disability?

If you are on disability, you might qualify for the HAMP program.  Also think about if you should downsize to a smaller home. Q: I think my mortgage holder is going to start a foreclosure on me again as they …

Continue reading

Posted in Foreclosure, Loan Modification | Tagged , , | Leave a comment

Loan Modification Programs for Underwater Mortgage

If you don’t qualify for any loan modification programs and have an underwater mortgage, you might not want to walk away but instead consider a short sale. Q: I have been forced into retirement as I can’t find a job …

Continue reading

Posted in Foreclosure, Loan Modification, Mortgage, Short Sale | Tagged , , , | 3 Comments

The Problems With Paying Your Child’s Mortgage

Helping your children pay off their mortgage can cause problems, and you need to consider if helping is truly in your child’s best interest. Q: My son in-law walked away and left my daughter with no job and no money. …

Continue reading

Posted in Divorce, Loan Modification, Mortgage | Tagged , , | Leave a comment

What Happens When Your Mortgage Company Files For Bankruptcy?

Has your mortgage company filed for bankruptcy? If your loan modification paperwork is still being processed, you may need to refile. Q: I often listen to your show on my way home from church. A couple of days ago, my …

Continue reading

Posted in Bankruptcy, Loan Modification, Mortgage | Tagged , , | Leave a comment

How to Qualify for HARP

Homeowners may qualify for the Home Affordable Refinance Program (HARP) if they fail to get a HAMP (loan modification) from their lenders. Q: Long story short, my house is underwater. I am currently talking to my mortgage company for a …

Continue reading

Posted in Loan Modification, Mortgage, Refinance Mortgage | Tagged , , , , | 4 Comments

Be Wary of Companies That Will Buy Your Home and Rent it Back to You

Be wary of companies that will buy your home and rent it back to you – this may be housing scam hitting underwater mortgages. Q: I got your website name from my son who lives in Atlanta, one of your …

Continue reading

Posted in Loan Modification, Real Estate | Tagged , , | 6 Comments