Eugene Loan Guy

I have written before about the loan modification business and I think it will probably be quite big for the next several months, just from what I have seen so far from the housing plan. The Federal Reserve is telling people that loan modifications can be handled by dealing directly with your loan servicer, but what I am hearing from a lot of people is that the loan servicers are not being very responsive to the request for a loan modification. Additionally, I am being told that some of the “non-profits” are not answering their phone or making appointments up to 90 days in advance to help people that are having difficulty with their payments.

If your mortgage has been scheduled for foreclosure or if you have missed one or more mortgage payments, you should contact your servicer immediately. You may also want contact a HUD-approved housing counselor by calling 1-888-995-HOPE (4673).

So, what happens if you are not able to reach someone to help you through the HUD-approved housing counselors? Well, I can tell you that someone will probably be calling you. This is a part of an e-mail solicitation I received today: “While the majority of Loan Mod clients remain on the Do Not Call. Our DNC complainant 60-90 day data has produced phenomenal results for telemarketing. Getting a call to these homeowners who are currently 60-90 day late is the perfect time to save their home. Being down two payments and facing another payment your call is a lifeline to save these homeowners from foreclosure. Get these homeowners into the rates and terms they can afford. Save their home today!!!” The one thing I can tell you is that person won’t be me. If you need help, I am here for you but I won’t be the one circling like a vulture.

Loan Modification companies are springing up all over. Some will be charging substantial amounts for something that you can do yourself. Others may be just what the doctor has ordered. I have a relationship with one such company, but loan modification is not my primary business. I just want to help put people in touch with the right resources for the job. I think everyone in this situation should attempt to get the help they need using the free services first. Remember, there are requirements to make the program work:

To apply for a Home Affordable Modification, you must:

· Own and currently occupy a one- to four-unit home.

· Have an unpaid principal balance that is equal to or less than $729,750 (for one unit properties).

· Have a loan that was originated before January 1, 2009.

· Have a mortgage payment (including taxes, insurance, and home owners association dues) that is more than 31% of your gross (pre-tax) monthly income.

· And, have a mortgage payment that is no longer affordable, perhaps because of a significant change in income or expenses.

If you answered YES to all of these questions, you may be eligible for the Modification Initiative. Be prepared to furnish income and asset information when asked. Don’t think that the lenders are being too nosey, you are asking them to take a substantial write down, so be cooperative. Have the documentation that you need to work with them. The minimum is a copy of current paystubs, bank statements, retirement accounts, W2 forms and reason for hardship. Also, if you have no income, even the best loan modification won’t help you.

So, if you need a referral to a company that I believe will work in your best interests, feel free to complete this simple form. Please see if you can accomplish this on your own first. If you can’t, then let us see if we can help. Drop me a line at eugeneloanguy@gmail.com or call me at 541-342-7576. I am here to help you.

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