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<body topmargin="5" leftmargin="0" rightmargin="0" bottommargin="0"> <table border="0" cellpadding="0" cellspacing="1" style="border-collapse: collapse" id="table6" width="809"> <tr> <td> <p class="style25" style="mso-bidi-font-size: 11.5pt; mso-bidi-font-family: Tahoma; mso-bidi-language: EN-US"> What is a Loan Modification?<o:p></o:p></p> <p class="style19" style="mso-bidi-font-size: 11.5pt; mso-bidi-font-family: Tahoma; mso-bidi-language: EN-US"> ANSWER:<o:p> </o:p> <span class="style30">A loan modification is the result of negotiations where a lender agrees to modify or restructure one or more terms of a borrower’s loan, making it more affordable for the homeowner.  This allows the homeowner to stay in their home and the the lender to be less likely to have to foreclose on a property with borrowers in financial difficulty.</span></p> <p class="MsoNormal"> <span style="mso-bidi-font-family: Tahoma; color: black; mso-bidi-language: EN-US" class="style24"> What is Foreclosure? </span> <span style="font-size: 18.0pt; mso-bidi-font-family: Tahoma; color: black; mso-bidi-language: EN-US"><o:p></o:p> </span></p> <p class="style19" style="mso-bidi-font-size: 11.5pt; mso-bidi-font-family: Tahoma; mso-bidi-language: EN-US"> ANSWER:<o:p> </o:p> <span class="style29">Foreclosure is a process where a lender regains a property they have financed. This us usually due to the borrower being behind in house payments and unable to catch up, often due to circumstances beyond their control.  When a lender forecloses,  the homeowner will have to move out of the house, in all likelihood losing both possession and equity that the homeowner may have in the home. There is a legal time frame and procedure involved which which determines how long the foreclosure process may take. </span></p> <p class="style20" style="mso-bidi-font-size: 11.5pt; mso-bidi-font-family: Tahoma; mso-bidi-language: EN-US"> <span style="mso-bidi-font-family: Tahoma; color: black; mso-bidi-language: EN-US" class="style24"> How can a Loan Modification stop foreclosure?</span><span style="font-size: 18.0pt; mso-bidi-font-family: Tahoma; color: black; mso-bidi-language: EN-US"><o:p></o:p></span></p> <p class="style19" style="mso-bidi-font-size: 11.5pt; mso-bidi-font-family: Tahoma; mso-bidi-language: EN-US"> ANSWER:<o:p> </o:p> <span class="style29">We perform a detailed financial analysis to determine your best alternatives.  By reviewing the lender's loss mitigation policies and the State's foreclosure laws, we are better able to best assist you but if facing foreclosure, you may wish to consult a skilled bankruptcy attorney.</span><o:p></o:p></p> <p class="MsoNormal"><strong>How is the borrower’s credit affected by doing a loan modification?</strong><o:p></o:p></p> <p class="style19" style="mso-bidi-font-size: 18.0pt; mso-bidi-font-family: Tahoma; mso-bidi-language: EN-US"> ANSWER:<o:p> </o:p> <o:p></o:p> <span class="style29">Generally, your credit is not affected.</span><o:p></o:p></p> <p class="style25" style="mso-bidi-font-size: 18.0pt; mso-bidi-font-family: Tahoma; mso-bidi-language: EN-US"> How is the borrower’s tax liability affected?<o:p></o:p></p> <p class="style19" style="mso-bidi-font-size: 18.0pt; mso-bidi-font-family: Tahoma; mso-bidi-language: EN-US"> ANSWER: <span class="style29">Generally, your tax liability is not affected by doing a loan mod.<o:p>  See your CPA or Tax Attorney for more specific details.</o:p></span></p> <p class="style25" style="mso-bidi-font-size: 18.0pt; mso-bidi-font-family: Tahoma; mso-bidi-language: EN-US"> Does the borrower have to verify their income?<o:p></o:p></p> <p class="style19" style="mso-bidi-font-size: 18.0pt; mso-bidi-font-family: Tahoma; mso-bidi-language: EN-US"> ANSWER: <span class="style29">Yes.</span><o:p></o:p></p> <p class="style25" style="mso-bidi-font-size: 18.0pt; mso-bidi-font-family: Tahoma; mso-bidi-language: EN-US"> Is a CMA (Comparative Market Analysis) or a BPO (Broker’s Price Opinion) required for a loan modification?<o:p></o:p></p> <p class="style19" style="mso-bidi-font-size: 18.0pt; mso-bidi-font-family: Tahoma; mso-bidi-language: EN-US"> ANSWER: <span class="style29">No. A statement of value is required, less detailed than a CMA. An example of this is included in Agent Loan Secrets.</span><o:p></o:p></p> <p class="MsoNormal"> <span style="mso-bidi-font-family: Tahoma; color: black; mso-bidi-language: EN-US" class="style24"> How long does the borrower have to act?</span><span style="font-size: 18.0pt; mso-bidi-font-family: Tahoma; color: black; mso-bidi-language: EN-US"><o:p></o:p></span></p> <p class="style19" style="mso-bidi-font-size: 11.5pt; mso-bidi-font-family: Tahoma; mso-bidi-language: EN-US"> ANSWER:<o:p> </o:p> <span style="mso-bidi-font-size: 11.5pt; mso-bidi-font-family: Tahoma; color: black; mso-bidi-language: EN-US" class="style33"> Time is of the essence when you are behind on payments. Each day that passes makes it that much harder to get a work out agreement with your lender that you each can live with. The home foreclosure process can take anywhere from a few weeks to many months, depending on your state law and the method of foreclosure your lender chooses to use. </span> <span style="mso-bidi-font-size: 20.0pt; mso-bidi-font-family: Verdana; color: black; mso-bidi-language: EN-US" class="style22"> <span style="mso-spacerun: yes" class="style32"> </span><o:p></o:p></span></p> <p class="style25" style="mso-bidi-font-family: Tahoma; mso-bidi-language: EN-US"> How long does it take to complete the loan modification process, once the paperwork is filled out? <o:p></o:p></p> <p class="style19" style="mso-bidi-font-size: 11.5pt; mso-bidi-font-family: Tahoma; mso-bidi-language: EN-US"> ANSWER:<o:p> </o:p> <span class="style29">Anywhere from 2 days to a few months. This depends on the stage of foreclosure, the state you live in, your financial position and the lending institution. Typically it takes several weeks to complete a work out agreement and stop foreclosure proceedings. </span> <o:p></o:p></p> <p class="style21" style="mso-bidi-font-family: Tahoma; mso-bidi-language: EN-US"> <span style="mso-bidi-font-family: Tahoma; color: black; mso-bidi-language: EN-US" class="style24"> How much time do I have to stop a foreclosure?</span><span style="font-size: 18.0pt; mso-bidi-font-family: Tahoma; color: black; mso-bidi-language: EN-US"><o:p></o:p></span></p> <p class="style19" style="mso-bidi-font-size: 11.5pt; mso-bidi-font-family: Tahoma; mso-bidi-language: EN-US"> ANSWER:<o:p> </o:p> <span class="style29"><span class="style16">Up until the foreclosure sale occurs there is still hope. If a sale date for the house has been set you need to act fast.</span><span style="mso-spacerun: yes" class="style16">  </span><span class="style16">It is possible to stop a foreclosure within days of the auction date but this is unusual and not all lenders will agree to it.</span><span style="mso-spacerun: yes" class="style16">  </span> <span class="style16">You're best option is to take action immediately to stop foreclosure before it goes too far. </span></span> <o:p></o:p></p> <p class="MsoNormal"><b> <span style="mso-bidi-font-family: Tahoma; color: black; mso-bidi-language: EN-US" class="style23"> What are the charges for handling a Loan Modification? </span></b></p> <p class="MsoNormal"><b> <span style="mso-bidi-font-family: Tahoma; color: red; mso-bidi-language: EN-US" class="style23"> ANSWER:<o:p> </o:p> </span></b>Fees are based on the mortgage payment amount, and the complexity and urgency of the situation. Typically fees range from $2,000 to $5,000, with many Loan Modification Specialists charging the equivalent of 1 month’s mortgage payment.<o:p></o:p></p> <p class="style25" style="mso-bidi-font-size: 11.5pt; mso-bidi-font-family: Tahoma; mso-bidi-language: EN-US"> How many documents are required for a loan mod application?<o:p></o:p></p> <p class="style19" style="mso-bidi-font-size: 11.5pt; mso-bidi-font-family: Tahoma; mso-bidi-language: EN-US"> ANSWER:<o:p> <span class="style35"><span class="style34">Usually around </span></o:p> <span class="style34">10, not including any follow up that may be required by the lender after they receive the application.</span></span><o:p></o:p></p> <p class="MsoNormal"><b style="mso-bidi-font-weight: normal"> <span style="mso-bidi-font-size: 20.0pt; mso-bidi-font-family: Verdana; color: black; mso-bidi-language: EN-US" class="style23"> If there is still negative equity in the home, in other words, the homeowner is ‘upside down’, why would they want to keep the home, even if the modified loan creates a better payment?</span></b><span style="font-size: 20.0pt; mso-bidi-font-family: Verdana; color: black; mso-bidi-language: EN-US"><o:p></o:p></span></p> <p class="MsoNormal"><b style="mso-bidi-font-weight: normal"> <span style="mso-bidi-font-size: 20.0pt; mso-bidi-font-family: Verdana; color: red; mso-bidi-language: EN-US" class="style23"> ANSWER:<o:p> </o:p> </span></b><span style="mso-bidi-font-weight: normal"> <span style="mso-bidi-font-size: 20.0pt; mso-bidi-font-family: Verdana; color: black; mso-bidi-language: EN-US" class="style22"> <span class="style16">Everyone has a housing expense.</span><span style="mso-spacerun: yes" class="style16">  </span><span class="style16">If the modified payment is similar to a rent payment, it makes sense to simply keep the home.</span><span style="mso-spacerun: yes" class="style16">  </span><span class="style16">The payments will be lower and the homeowner won’t have the expense of moving.</span><o:p></o:p></span></p> </span> <p class="MsoNormal"> <span style="mso-bidi-font-family: Tahoma; color: black; mso-bidi-language: EN-US" class="style24"> What if the homeowner can no longer afford their home? </span> <span style="font-size: 18.0pt; mso-bidi-font-family: Tahoma; color: black; mso-bidi-language: EN-US"><o:p></o:p> </span></p> <p class="style19" style="mso-bidi-font-size: 11.5pt; mso-bidi-font-family: Tahoma; mso-bidi-language: EN-US"> ANSWER:<o:p> </o:p> <span class="style29"><span class="style16">Another solution may be a Short Sale of the home.</span><span style="mso-spacerun: yes" class="style16">  </span><span class="style16">This will also allow the borrower to avoid foreclosure and have less damage to their long-term credit.</span></span><o:p>  <a href="../california-short-sale/index.htm">Cllick Here for Short-Sale Info</a></o:p></p> <p class="style25" style="mso-bidi-font-family: Tahoma; mso-bidi-language: EN-US"> Will the borrower have to meet with their lender or deal with paperwork? <o:p></o:p> </p> <p class="style19" style="mso-bidi-font-size: 18.0pt; mso-bidi-font-family: Tahoma; mso-bidi-language: EN-US"> ANSWER:<o:p> </o:p> <span class="style29">Absolutely not. As Loan Modification Specialists, we meets with the lender and handle all the negotiations.</span><o:p></o:p></p> <p class="MsoNormal"><b> <span style="mso-bidi-font-family: Tahoma; color: black; mso-bidi-language: EN-US" class="style23"> Are lenders and banks really willing to negotiate? </span></b></p> <p class="MsoNormal"><b> <span style="mso-bidi-font-size: 18.0pt; mso-bidi-font-family: Tahoma; color: red; mso-bidi-language: EN-US" class="style23"> ANSWER:</span><span style="font-size: 16.0pt; mso-bidi-font-size: 18.0pt; mso-bidi-font-family: Tahoma; color: black; mso-bidi-language: EN-US"><o:p> </o:p> </span></b>Definitely. Lenders do not want to foreclose on a home unless they have to. If they receive a realistic professional proposal they are very open to the Loan Modification process. <o:p></o:p></p> <p class="MsoNormal"><b> <span style="mso-bidi-font-size: 24.0pt; mso-bidi-font-family: Verdana; color: black; mso-bidi-language: EN-US" class="style23"> What if the lender has said NO when the borrower asked about a loan mod? </span> <span style="mso-bidi-font-size: 18.0pt; mso-bidi-font-family: Tahoma; color: black; mso-bidi-language: EN-US" class="style23"> Can it still be done?<o:p></o:p></span></b></p> <p class="style19" style="mso-bidi-font-size: 18.0pt; mso-bidi-font-family: Tahoma; mso-bidi-language: EN-US"> ANSWER:<o:p> </o:p> <span style="mso-bidi-font-size: 11.5pt; mso-bidi-font-family: Tahoma; color: black; mso-bidi-language: EN-US" class="style33"> Yes. Many clients have experienced this kind of inflexibility from their lender before calling a Loan Mod Specialist. A Loan Mod Specialist negotiates for a living and is used to working out modifications on behalf of the homeowner.<o:p></o:p></span></p> <p class="style36" style="mso-bidi-font-family: Tahoma; mso-bidi-language: EN-US"> <o:p><strong>What is the first step?</strong></o:p></p> <p class="MsoNormal"><o:p></o:p> <span class="style37"><strong>ANSWER:</strong></span><o:p> </o:p> <span class="style9"> <span class="style16">Call (831) 466-3440 or </span></span><span class="style10">eMail: <a href="mailto:Charles@BayLiving.com">Charles@BayLiving.com</a>, or click here to complete a form which will send the initial information for Charles to review and get in touch with you.</span></p> </td> </tr> <tr> <td> <hr></td> </tr> </table> </body>