Comments on: My First Rant — The Foreclosure Industry http://www.truthinforeclosure.com/my-first-rant-the-foreclosure-industry Sun, 22 Aug 2010 22:39:10 +0000 http://wordpress.org/?v= hourly 1 By: Todd http://www.truthinforeclosure.com/my-first-rant-the-foreclosure-industry#comment-733 Todd Fri, 19 Jun 2009 01:20:54 +0000 http://www.truthinforeclosure.com/?p=1412#comment-733 Thanks for writing. It sounds like the way they got the low payment was to forbear $100,000 of principle and then refigure a payment based on the new, lower principle balance. Of course, they still want you to pay them that $100,000, though, at some point in the future. The only way I can see you being able to pay off the first (with it's balloon payment) and the second is for the home to appreciate enough to cover both of them. And that doesn't seem very likely to happen in the next 4 - 7 years in most parts of the country. How likely do you think it is that the home will appreciate enough in the next 4 - 7 years for you to be able to pay off all the loans and move away? That will be your determining factor, I think. I think your best option would be to put the home on the market and try to short sell it. Be aggressive in your pricing and keep dropping your price every week until you get an offer. This keeps it on the new listings sheets every week and will help you get showings once it's in the right price range. While all this is going on, save every penny you can because you're going to be moving and even though your credit will be shot, having enough cash to pay a deposit and several months of rent in a new place will be key to smoothing out the move. Finally, you might think about other options such as a forensic loan audit to see if your loan has predatory markers or Truth in Lending violations in it. It's also possible...although no guarantees for sure...that a paid loan mod company could get you a better offer from the bank. I started out as a paid loan mod company, so I have people I trust to work for you rather than just take your money. If you want some references for either loan audits or mods, please contact me by e-mail. You're right to be cautious of the advice you got from the HUD office...that's the same line of thinking that got the country into the financial pickle it's in now. Best wishes...I hope this helped some... Thanks for writing. It sounds like the way they got the low payment was to forbear $100,000 of principle and then refigure a payment based on the new, lower principle balance. Of course, they still want you to pay them that $100,000, though, at some point in the future.

The only way I can see you being able to pay off the first (with it’s balloon payment) and the second is for the home to appreciate enough to cover both of them. And that doesn’t seem very likely to happen in the next 4 – 7 years in most parts of the country.

How likely do you think it is that the home will appreciate enough in the next 4 – 7 years for you to be able to pay off all the loans and move away? That will be your determining factor, I think.

I think your best option would be to put the home on the market and try to short sell it. Be aggressive in your pricing and keep dropping your price every week until you get an offer. This keeps it on the new listings sheets every week and will help you get showings once it’s in the right price range. While all this is going on, save every penny you can because you’re going to be moving and even though your credit will be shot, having enough cash to pay a deposit and several months of rent in a new place will be key to smoothing out the move.

Finally, you might think about other options such as a forensic loan audit to see if your loan has predatory markers or Truth in Lending violations in it. It’s also possible…although no guarantees for sure…that a paid loan mod company could get you a better offer from the bank. I started out as a paid loan mod company, so I have people I trust to work for you rather than just take your money. If you want some references for either loan audits or mods, please contact me by e-mail.

You’re right to be cautious of the advice you got from the HUD office…that’s the same line of thinking that got the country into the financial pickle it’s in now.

Best wishes…I hope this helped some…

]]> By: Kathy http://www.truthinforeclosure.com/my-first-rant-the-foreclosure-industry#comment-719 Kathy Wed, 17 Jun 2009 16:00:51 +0000 http://www.truthinforeclosure.com/?p=1412#comment-719 Hi Todd! Many, many thanks for your website and valuable information. I am facing either loan modification (bank has offered a great monthly payment, with rising adjustable interest rates in years 6-8, BUT a HUGE balloon payment of about $100K at time of "payoff"- whether through sale or maturation) or the possibility of a short sale or, lacing that, a foreclosure. The bank hasn't even addressed the second mortgage yet (same bank). My home is underwater by $70K. I am 55 and my husband (who is not on title or loan) is 60 years old. Our dilemma is how to choose the best solution. We wanted to be able to live here for a few (4-7)more years before relocating into a retirement-style community. Would it be wiser to keep our home and take the modification (we are 3 months in arrears) or short-sell our home now and move on? If we take the loan mod, would it result in a bigger problem in 4-6 years when we wanted to relocate? We cannot imagine EVER being in a position in our remaining LIFESPAN to pay off such a huge BALLOON amount. Have you seen or heard from anyone else with this dilemma? Is there someone we can contact who would work through this with us? (We were dealing with the HUD Community office, and she said simply to choose for today and worry about tomorrow when tomorrow comes.?!) I trust your answer, and I love your rantings! Hi Todd!
Many, many thanks for your website and valuable information. I am facing either loan modification (bank has offered a great monthly payment, with rising adjustable interest rates in years 6-8, BUT a HUGE balloon payment of about $100K at time of “payoff”- whether through sale or maturation) or the possibility of a short sale or, lacing that, a foreclosure. The bank hasn’t even addressed the second mortgage yet (same bank). My home is underwater by $70K. I am 55 and my husband (who is not on title or loan) is 60 years old. Our dilemma is how to choose the best solution. We wanted to be able to live here for a few (4-7)more years before relocating into a retirement-style community. Would it be wiser to keep our home and take the modification (we are 3 months in arrears) or short-sell our home now and move on? If we take the loan mod, would it result in a bigger problem in 4-6 years when we wanted to relocate? We cannot imagine EVER being in a position in our remaining LIFESPAN to pay off such a huge BALLOON amount. Have you seen or heard from anyone else with this dilemma? Is there someone we can contact who would work through this with us? (We were dealing with the HUD Community office, and she said simply to choose for today and worry about tomorrow when tomorrow comes.?!) I trust your answer, and I love your rantings!

]]> By: Todd http://www.truthinforeclosure.com/my-first-rant-the-foreclosure-industry#comment-643 Todd Mon, 08 Jun 2009 02:10:28 +0000 http://www.truthinforeclosure.com/?p=1412#comment-643 Thanks for writing and for trying to help people modify their loans. It's an honorable job as long as you do it right. My point about homeowners calling rather than having someone call on their behalf is something I believe has changed since President Obama's program began. It used to be (like you say) that banks preferred to talk to homeowners because they could take advantage of them, delay the process, blame it on the homeowners, and then do whatever they wanted to with the loan. But now, with all the standardized mortgage and modification guidelines, they can't do much of that any more unless the homeowner doesn't qualify for a Home Affordable Modification. The standardization and streamlined procedures are probably the biggest benefits the Home Affordable programs bring to the table and, in the end, help both the homeowner and the lender. Just so you know...I used to negotiate mods, repayment plans, etc just like you but I got out of it because of the legal liabilities and because I didn't want to spend my life on the phone carrying on frustrating conversations. I decided to help people by producing complete, timely, and correct information products instead and bring hope to hopeless situations through spreading expert information. Thanks for writing and for trying to help people modify their loans. It’s an honorable job as long as you do it right.

My point about homeowners calling rather than having someone call on their behalf is something I believe has changed since President Obama’s program began. It used to be (like you say) that banks preferred to talk to homeowners because they could take advantage of them, delay the process, blame it on the homeowners, and then do whatever they wanted to with the loan. But now, with all the standardized mortgage and modification guidelines, they can’t do much of that any more unless the homeowner doesn’t qualify for a Home Affordable Modification.

The standardization and streamlined procedures are probably the biggest benefits the Home Affordable programs bring to the table and, in the end, help both the homeowner and the lender.

Just so you know…I used to negotiate mods, repayment plans, etc just like you but I got out of it because of the legal liabilities and because I didn’t want to spend my life on the phone carrying on frustrating conversations. I decided to help people by producing complete, timely, and correct information products instead and bring hope to hopeless situations through spreading expert information.

]]> By: Todd http://www.truthinforeclosure.com/my-first-rant-the-foreclosure-industry#comment-642 Todd Mon, 08 Jun 2009 01:58:24 +0000 http://www.truthinforeclosure.com/?p=1412#comment-642 I agree many people were taken advantage of and steered into mortgage products they couldn't truly afford. It's unfortunate and must be corrected...as long as they can truly afford the home now. Check out my "<a href="http://www.truthinforeclosure.com/are-banks-too-greedy" rel="nofollow">Are Banks Too Greedy</a>" article. I wrote it about 4 months ago discussing this very topic. I agree many people were taken advantage of and steered into mortgage products they couldn’t truly afford. It’s unfortunate and must be corrected…as long as they can truly afford the home now.

Check out my “Are Banks Too Greedy” article. I wrote it about 4 months ago discussing this very topic.

]]> By: Todd http://www.truthinforeclosure.com/my-first-rant-the-foreclosure-industry#comment-641 Todd Mon, 08 Jun 2009 01:54:47 +0000 http://www.truthinforeclosure.com/?p=1412#comment-641 You're right...there are a lot of people trying to help homeowners do what's best for their situation...and there are a lot of people just trying to make a quick buck off someone else's misfortune. I think it's great you help people evaluate their situation...that's one of the most critical steps that must happen before anything else can. I don't have any issue with paid loan mod companies, mortgage brokers, information publishers, or real estate agents in theory. Just when they try to take advantage of people or give them misleading or incomplete information. Although, the information does change on an almost daily basis, so what is complete and correct today might not be tomorrow...and it's hard to go back and update things. I know from trying to keep up this site...it's a constant struggle. You’re right…there are a lot of people trying to help homeowners do what’s best for their situation…and there are a lot of people just trying to make a quick buck off someone else’s misfortune. I think it’s great you help people evaluate their situation…that’s one of the most critical steps that must happen before anything else can.

I don’t have any issue with paid loan mod companies, mortgage brokers, information publishers, or real estate agents in theory. Just when they try to take advantage of people or give them misleading or incomplete information.

Although, the information does change on an almost daily basis, so what is complete and correct today might not be tomorrow…and it’s hard to go back and update things. I know from trying to keep up this site…it’s a constant struggle.

]]> By: Todd http://www.truthinforeclosure.com/my-first-rant-the-foreclosure-industry#comment-640 Todd Mon, 08 Jun 2009 01:49:05 +0000 http://www.truthinforeclosure.com/?p=1412#comment-640 Thanks for commenting...I didn't mean to imply you shouldn't fight for your home. You should fight...but you should also prepare for the worst case scenario, which is losing your home. I see too many people that focus on saving their home to the point they completely neglect everything else. Thanks for commenting…I didn’t mean to imply you shouldn’t fight for your home. You should fight…but you should also prepare for the worst case scenario, which is losing your home. I see too many people that focus on saving their home to the point they completely neglect everything else.

]]> By: Patrice http://www.truthinforeclosure.com/my-first-rant-the-foreclosure-industry#comment-613 Patrice Wed, 03 Jun 2009 21:07:53 +0000 http://www.truthinforeclosure.com/?p=1412#comment-613 My husband and I are one of those people you are ranting about. We however are able to pay the mortgage but not the ARM that goes up 5% every six months and pay high property taxes, stormwater taxes, house insurance all out of our pockets. Getting a mod is a joke. I am not leaving my home without a fight. My husband and I are one of those people you are ranting about. We however are able to pay the mortgage but not the ARM that goes up 5% every six months and pay high property taxes, stormwater taxes, house insurance all out of our pockets. Getting a mod is a joke. I am not leaving my home without a fight.

]]> By: Crystal http://www.truthinforeclosure.com/my-first-rant-the-foreclosure-industry#comment-612 Crystal Wed, 03 Jun 2009 19:49:39 +0000 http://www.truthinforeclosure.com/?p=1412#comment-612 I agree with a lot of things said here. My gripe is these services are to be used to help those that can stay, stay and those you need to move, move on. I like "Don’t just save your home…save your way of life!" I am a Realtor that works to try and help regardless if they can stay or need to move, and this is all laid out to them during a consult (free of Charge). everyone likes to make money, but the fact is there are a lot of no a counts out there that make it tough on those who are really trying to help. I agree with a lot of things said here. My gripe is these services are to be used to help those that can stay, stay and those you need to move, move on. I like “Don’t just save your home…save your way of life!” I am a Realtor that works to try and help regardless if they can stay or need to move, and this is all laid out to them during a consult (free of Charge). everyone likes to make money, but the fact is there are a lot of no a counts out there that make it tough on those who are really trying to help.

]]> By: Ricardo http://www.truthinforeclosure.com/my-first-rant-the-foreclosure-industry#comment-611 Ricardo Wed, 03 Jun 2009 17:47:04 +0000 http://www.truthinforeclosure.com/?p=1412#comment-611 There is no one specifically guilty of getting into the housing mess and all that it has brought. However, one can't be blamed if they "think" they can afford a house and they have been taken advantage of, but, translate into millions of loans which translate into "billions" for "investors". Who is the greedy one?? Then to add insult to injury, you have to pay for the lender to listen!! There is no one specifically guilty of getting into the housing mess and all that it has brought. However, one can’t be blamed if they “think” they can afford a house and they have been taken advantage of, but, translate into millions of loans which translate into “billions” for “investors”. Who is the greedy one??
Then to add insult to injury, you have to pay for the lender to listen!!

]]> By: c. miller http://www.truthinforeclosure.com/my-first-rant-the-foreclosure-industry#comment-610 c. miller Wed, 03 Jun 2009 16:37:56 +0000 http://www.truthinforeclosure.com/?p=1412#comment-610 Foreseeing foreclosure, a year ago, I contacted "H.O.P.E. Now" that President Bush implemented for homeowners in distress. I worked closely and keep in touch with them on a month to month basis for approximately 6 months. During this time, my ARM balooned and I was no longer able to make the payment. H.O.P.E Now assured me that my mortgage company could not start foreclose proceedings since they were in touch with my mortgage company. Unfortunately, that wasn't true as I came home one day to find a flourescent orange foreclosure noticed posted to my front door. Needless to say, the counselor that was assigned to my case, had basically been bluffing me. It took speaking to the director at H.O.P.E Now after receiving the foreclosure notice before any action was taken on my case. After all that stress, I did receive an affordable loan modification, however, now I'm under water (owing more than my home is worth). Foreseeing foreclosure, a year ago, I contacted “H.O.P.E. Now” that President Bush implemented for homeowners in distress. I worked closely and keep in touch with them on a month to month basis for approximately 6 months. During this time, my ARM balooned and I was no longer able to make the payment. H.O.P.E Now assured me that my mortgage company could not start foreclose proceedings since they were in touch with my mortgage company. Unfortunately, that wasn’t true as I came home one day to find a flourescent orange foreclosure noticed posted to my front door. Needless to say, the counselor that was assigned to my case, had basically been bluffing me. It took speaking to the director at H.O.P.E Now after receiving the foreclosure notice before any action was taken on my case. After all that stress, I did receive an affordable loan modification, however, now I’m under water (owing more than my home is worth).

]]> By: Thomas Peterson http://www.truthinforeclosure.com/my-first-rant-the-foreclosure-industry#comment-609 Thomas Peterson Wed, 03 Jun 2009 14:26:15 +0000 http://www.truthinforeclosure.com/?p=1412#comment-609 You mentioned that most banks now want to talk to the borrower rather than a mod rep. Well Dah!! They always have. Of course they have always wanted to talk with the stressed out, emotional, scared homeowner who doesn't even understand what kind of a loan he got himself into! Do you think they ever want to talk with a detached, third party who knows what they know and is not intimidated by their rhetoric? Someone who they actually have to negotiate with? Try making an 800 call to nowhere sometime! I'm working for one of those modificiation companies and we help people when they can be helped and give them back their hard earned money when they can't be. I talk to folks every day who have tried to talk to their lender and have screwed it up or just been so intimidated they quit. It's a lot harder to help those cases but most of the time we can. You mention there are lots of sights like yours but are just selling stuff and not being updated. Some are ripping folks off right? Well, why doesn't the government try to shut you down? They are trying hard to shut us down whether we're really helping people or just ripping them off. Bottom line is that banks would rather talk to the borrower! Get it!! You mentioned that most banks now want to talk to the borrower rather than a mod rep. Well Dah!! They always have. Of course they have always wanted to talk with the stressed out, emotional, scared homeowner who doesn’t even understand what kind of a loan he got himself into! Do you think they ever want to talk with a detached, third party who knows what they know and is not intimidated by their rhetoric? Someone who they actually have to negotiate with? Try making an 800 call to nowhere sometime!

I’m working for one of those modificiation companies and we help people when they can be helped and give them back their hard earned money when they can’t be. I talk to folks every day who have tried to talk to their lender and have screwed it up or just been so intimidated they quit. It’s a lot harder to help those cases but most of the time we can.

You mention there are lots of sights like yours but are just selling stuff and not being updated. Some are ripping folks off right? Well, why doesn’t the government try to shut you down? They are trying hard to shut us down whether we’re really helping people or just ripping them off. Bottom line is that banks would rather talk to the borrower!
Get it!!

]]> By: keodmo http://www.truthinforeclosure.com/my-first-rant-the-foreclosure-industry#comment-607 keodmo Wed, 03 Jun 2009 12:46:20 +0000 http://www.truthinforeclosure.com/?p=1412#comment-607 Totally disagree that foreclosure should be an option available to the banksters. When people lose their homes, they lose everything and have nothing to lose so when civil unrest breaks out, so fair warning. It is important to fight the banking class and give power to the people. All parties gambled that the party would go on. All parties have lost that bet. Why reward the bankster? They've already received our bailout money from TARP which should have gone to those trying to salvage their homes. Most lenders idea of working with you to modify is a complete joke and a travesty. The senate failed us miserably by being bought by the banking lobby and not allowing chapter 13 judges to adjust mortgages to fair market value. Flame on. Totally disagree that foreclosure should be an option available to the banksters.

When people lose their homes, they lose everything and have nothing to lose so when civil unrest breaks out, so fair warning.

It is important to fight the banking class and give power to the people. All parties gambled that the party would go on. All parties have lost that bet. Why reward the bankster? They’ve already received our bailout money from TARP which should have gone to those trying to salvage their homes.

Most lenders idea of working with you to modify is a complete joke and a travesty. The senate failed us miserably by being bought by the banking lobby and not allowing chapter 13 judges to adjust mortgages to fair market value.

Flame on.

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