CONTACTS
SUBJECTS
Modify Home Loan Mortgage Reduce Principal Monthly Payment Short Sal
1003 -
1003 - ..
1004 - Summary/Objective
1005 -
100501 - Follow up ref SDS 1 0000.
100502 -
100503 -
100505 - ..
1006 -
1007 -
1008 - Progress
1009 -
100901 - Discussion last nigh related telecon on opportunities to refinance
100902 - home, purchased in 2004, when real estate prices had been bid up
100903 - beyond the ability of people to make monthly payments.
100905 - ..
100906 - Based on past pattern and practice, State of California employees
100907 - reasonably expectated regular pay increases to pay home mortgage and
100908 - other monthly subsistance expenses.
100910 - ..
100911 - The State of California is suffering massive revenue loss due to down
100912 - turn in the economy caused by collapse of housing market, including
100913 - property values. Therefore expected pay raises have not occurred, and
100914 - in fact the California State governement is reducing payment to
100915 - employees by instituting furlough days each month.
100917 - ..
100918 - Loss of pay raises and income make meeting monthly expenses difficult.
100920 - ..
100921 - Last night there was discussion of switching children to public school
100922 - that saves expense of private tuition at a Catholic school.
100924 - ..
100925 - Learning to work within the public arena seems like a good opportunity
100926 - for the girls. Saving money on the monthly budget would be an
100927 - additional benefit of public education.
100929 - ..
100930 - There was concern that local public schools are less effective than 60
100931 - years ago, when we went throgh the system. This seems odd,
100932 - considering the State is out of money from having increased financial
100933 - support to public schools many fold over the past few decades.
100935 - ..
100936 - Biggest opportunity to reduce monthly expenses is negotiating a new
100937 - agreement on the home mortgage that aligns principal with current
100938 - market rates.
100939 -
100940 - [On 120715 0700 letter to Kathy with research on
100941 - negotiating reduced home loan. ref SDS 1 ME9J
100943 - ..
100944 - Dynamics of this negotiation reflect...
100945 -
100946 - 1. Principal and interest payments including pro-rated
100947 - property taxes exceed ability to pay and current market
100948 - prices. Therefore, both parties are at risk and need
100949 - mutual relief.
100951 - ..
100952 - 2. Mortguage note holder risks losing difference between the
100953 - loan amount and current market prices, plus sales expenses
100954 - for home repairs, landscaping, and various fees, including
100955 - property management while the home is unoccupied for many
100956 - months to a year. Reselling the home further requires
100957 - finding a qualified buyer at a time when real estate sales
100958 - are deeply depressed. As a result, mortgage lenders have
100959 - strong incentive to retain the current owner.
100961 - ..
100962 - 3. Both lender and obligee (home owner) can collaborate to
100963 - mutual advantage by negotiating a new loan agreement on a
100964 - principal amount and interest payment that fits current
100965 - market rates. The mortguage company avoids expense of
100966 - foreclosure (see para 2), and the homeonwer retains their
100967 - property for payment that fits monthly income.
100969 - ..
100970 - 4. This new agreement corrects 2 mistakes. The buyer over
100971 - estimated ability to pay an inflated sales price, and the
100972 - lender over estimated ability to recover in the event of
100973 - non-performance on the loan. Correcting mutual mistakes
100974 - yields an equitable adjustment.
100976 - ..
100977 - Research on the Internet yields very recent evidence of support for
100978 - analysis today on opportunities to refinance "underwater" home
100979 - mortgages...
100980 -
100981 - 1. Bank of America Home Loans
100982 -
100983 - Modification, Refinance, and Short Sale Program Enhancements
100984 -
100985 - Settlement agreement enhances modification refinance, and short
100986 - sale programs
100987 -
100988 - May 10, 2012
100989 -
100990 - 1. Bank of America has agreed to settlement with federal and
100991 - state officials
100993 - ..
100994 - 2. The US Department of Justice and the State Attorneys
100995 - General have agreed to the terms of a global settlement
100996 - with the largest mortgage servicers, including Bank of
100997 - America. This government agreement extends our ongoing
100998 - commitment to help homeowners who are struggling to make
100999 - their mortgage payments. Under the agreement, we are
101000 - implementing a new modification program that offers
101001 - principal reduction to qualified customers.
101003 - ..
101004 - 3. For mortgages that are owned by Bank of America, we will be
101005 - lowering interest rates to provide reduced payments for
101006 - eligible homeowners who are current on their payments but
101007 - who owe more than the current value of their homes.
101009 - ..
101010 - 4. We are also continuing to help customers who are pursuing
101011 - short sales and may offer additional assistance programs,
101012 - such as deed in lieu of foreclosure and/or financial
101013 - assistance to help those who are transitioning out of their
101014 - properties. At Bank of America, we are committed to making
101015 - government and proprietary home loan assistance solutions
101016 - available as quickly as possible.
101018 - ..
101019 - 5. We are offering these enhanced loan assistance solutions,
101020 - including the new mortgage modification program that will
101021 - include principal reduction, to qualified customers.
101022 - Please check here for details and updates on these enhanced
101023 - programs including eligibility requirements and information
101024 - on how to take advantage of these solutions.
101026 - ..
101027 - 6. In the meantime, if you are experiencing a financial
101028 - hardship and are struggling to make your mortgage payments,
101029 - help may already be available. Please contact us right
101030 - away at 1.877.488.7814 to update us on your current
101031 - financial situation. The sooner we understand your
101032 - situation, the sooner we can explore all of the options
101033 - that may be available to you.
101034 -
101035 -
101036 - 2. Mortgate Mod-Monster.com
101038 - ..
101039 - Mortgage Principal Reduction Refinance
101040 -
101041 - 1. Mortgage Principal Reduction Refinance means refinancing
101042 - your distressed mortgage at it's new, reduced property
101043 - value. It is also referred to as a "Short Refinance."
101045 - ..
101046 - 2. Principal Reduction is a different process depending on
101047 - whether your mortgage qualifies for the Home Affordable
101048 - Mortgage Plan (HAMP), or a conventional mortgage.
101050 - ..
101051 - 3. HAMP mortgages are best qualified with the REST Report v
101052 - 4.0, that automatically calculates principal reduction
101053 - along HAMP guidelines referred to as the 'waterfall test.'
101054 - I am a proud vendor of the REST Report. That process can
101055 - be found by going back from this page and calling me or
101056 - submitting my form for details. Call 970-242-2600
101058 - ..
101059 - 4. The following information on this page is for conventional
101060 - mortgage financing:
101062 - ..
101063 - 5. We negotiate your mortgage deficiency with your current
101064 - lender.
101066 - ..
101067 - 6. No FICO credit scores are needed. Your home is refinanced
101068 - on the basis of your residence, or second home,
101069 - investment. Your new interest rate will be higher, but for
101070 - the right mortgage holder, the resulting lower monthly
101071 - payment, combined with the opportunity to become current
101072 - on monthly mortgage payments and repair your credit, will
101073 - be a significant benefit. The target property for this
101074 - program is more than 120% underwater. (Please see examples
101075 - below.)
101077 - ..
101078 - 7. The benefit is to refinance again in two or more years
101079 - after your property values and credit scores are restored.
101080 - Meanwhile, you keep your home and lower your monthly
101081 - mortgage payment.
101083 - ..
101084 - 8. How It Works:
101086 - ..
101087 - Once a borrower is 60-days delinquent, the note becomes a
101088 - non-performing note , and your bank is penalized by FDIC
101089 - for holding on to those toxic assets.
101091 - ..
101092 - 9. In the past, banks typically were reluctant to sell
101093 - mortgage notes for less than their value, and certainly
101094 - were not interested in negotiating with homeowners.
101096 - ..
101097 - 10. Due to FDIC penalties, banks are motivated to get these
101098 - toxic assets off of their books than they have ever been
101099 - before. Both distressed homeowners and investors win.
101101 - ..
101102 - 11. The Process:
101103 - Negotiations will take place with your bank to purchase the note at a reduced rate (often at 50% of the current mortgage balance). Once the bank accepts our offer, you will receive your new mortgage details and have 72 hours to review and accept the new reduced mortgage. Once accepted you will have a new note and will make your payments to
101104 - Negotiations will take place with your bank to purchase
101105 - the note at a reduced rate (often at 50% of the current
101106 - mortgage balance). Once the bank accepts our offer, you
101107 - will receive your new mortgage details and have 72 hours
101108 - to review and accept the new reduced mortgage. Once
101109 - accepted you will have a new note and will make your
101110 - payments to the new note holder. The process generally
101111 - takes 90 days.
101113 - ..
101114 - 12. The homeowner/grantor remains on the title for the entire
101115 - process.
101117 - ..
101118 - 13. The homeowner still owns the home. The benefit is that the
101119 - mortgage you are paying more clearly reflects the current
101120 - market value of your home, rather than what you purchased
101121 - it for before this current mortgage crisis.
101123 - ..
101124 - 14. The homeowner still owns the home. The benefit is that the
101125 - mortgage you are paying more clearly reflects the current
101126 - market value of your home, rather than what you purchased
101127 - it for before this current mortgage crisis.
101129 - ..
101130 - 15. Example:
101131 -
101132 - Home Purchased For: $620,000
101133 - Current Mtg. Balance: $550,000
101134 - Current Payment: $3,122.84
101135 - Current Mkt. Value/New mtg Balance: $340,000
101136 - Neg. Equity: ($218,000)
101137 - New Monthly Payment at: $2,674.78
101139 - ..
101140 - 16. Program Guidelines:
101141 -
101142 - 1. Must be 60 days late or more on current mortgage payment
101143 - (non-performing)
101145 - ..
101146 - 2. Must be upside down on 1st mortgage - 120% LTV or higher
101148 - ..
101149 - 3. Primary residence and 2nd homes only
101151 - ..
101152 - 4. Home in BK is Ok the home would need to be either
101153 - approved by the Trustee or the BK released prior to closing
101155 - ..
101156 - 5. Max loan amount $1.5 million (based on current market
101157 - value)
101159 - ..
101160 - 17. Program Highlights:
101161 -
101162 - 1. Restructured Mortgage Balance at current Appraisal Value
101163 - (market value)
101165 - ..
101166 - 2. New Restructured Mortgage Term: Impounds Mandatory No
101167 - Pre-Payment Penalty
101169 - ..
101170 - 3. Currently 8.75% (Wall Street Prime + 5.5% Fixed @
101171 - closing) PITI Fully Amortized for 30 Years (Rate Lock
101172 - is Determined at Time of Purchase of Note Close of
101173 - Escrow )
101175 - ..
101176 - 4. Judgments, Liens and Child Support, etc. May Remain
101177 - on Title
101179 - ..
101180 - 5. NO Minimum FICO Score
101182 - ..
101183 - 6. Full Income Documentation Only
101185 - ..
101186 - 7. Max. Debt-to-Income Ratio = 40% (front-end)
101188 - ..
101189 - 8. Additional forms of income and co-signers accepted
101191 - ..
101192 - 9. Available Nationwide
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