Lenders Slowly Signing On To The Second Lien Modification Program – 2MP

Yesterday, Wells Fargo announced that it has agreed to participate in the Treasury Department’s Second Lien Modification Program (2MP) which is a supplemental program to the Home Affordable Modification Program (HAMP).

So far, Wells Fargo is only the second major servicer to sign on to the 2MP since it was introduced last year. The first servicer to sign on was Bank of America only a couple of months ago, in January.

[Update March 22, 2010: Chase is Latest Lender to Offer 2nd Lien Foreclosure Rescue]
[Update March 25, 2010: Citigroup agrees to modify some second mortgages under 2MP]

This supplemental program 2MP was designed so that Read more

March 18th, 2010 · Filed Under Loan Modifications

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HUD: Homeowners Can Report Scammers to National Complaint Database

In the midst of the current economic turmoil and foreclosure crisis, millions of distressed homeowners have become vulnerable targets to unscrupulous and sometimes criminal third-party scammers, con-artists, and thieves. These fraudulent individuals are highly mobile and easily able to move from one community to another.

To further strengthen the fight against these scammers, support existing efforts at the national, state and local levels, the Read more

March 1st, 2010 · Filed Under Loan Modifications, Real Estate & Mortgage FRAUD

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Should You Trust A Forensic Loan Audit?

Attorney General Edmund G. Brown Jr., the California Department of Real Estate (DRE), and the State Bar of California have been warning homeowners against foreclosure rescue scams for quite some time. It seems to me, however, that they are always one step behind these individuals and businesses taking advantage of financially strapped homeowners.

Today, the office of the Attorney General released Read more

February 22nd, 2010 · Filed Under Loan Modifications, Real Estate & Mortgage FRAUD

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SB 94: D.O.A. Loan Modifications

The buzz around Senate Bill 94 (SB 94) being the “Death Of All Loan Modifications” faded away just as fast as the controversy T-Pain caused with his comments about Jay-Z and his lead single “D.O.A. (Death of Auto-Tune).”

Jay-Z’s critical lyrics from his lead single sure made artists think twice before using the audio processor to alter their voice imperfections. The use of Auto-Tune, however, will continue to be widely used as long as music fans are willing to buy pitch altered albums.

In the same manner, when SB94 was signed into law it made loan modification scam artists think twice about getting involved in modifications again. Most scammers, however, will continue to defraud homeowners as long as consumers are willing to belief their sales pitches.

The FBI has said that Read more

December 22nd, 2009 · Filed Under Loan Modifications

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Back For The Second Time in One Year: Foreclosure Help Resource Fair

The Santa Clara County Association of REALTORS(R) has partnered with the City of San Jose in their efforts to stem the tide of foreclosures by educating at-risk homeowners. The goal is to provide assistance and counseling to help keep families from losing their homes.

With that, the “Foreclosure Help – Preserving Our Community” group will be holding another one-day foreclosure help resource fair on October 21st from 1-7pm. There is no cost to attend the fair and there will be no fees charged for the assistance provided.

The fair will be held at Read more

October 17th, 2009 · Filed Under Loan Modifications

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Foreclosure Help – Preserving Our Community

Save April 23, 2009 on your calendar for foreclosure help. Keep reading for the details:

In last week’s press conference, San Jose City Mayor Chuck Reed along with San Jose Director of Housing Leslye Krutko and several members of the “Foreclosure Help – Preserving Our Community” program presented to the public and the media a plan designed to tackle the foreclosure problems the city of San Jose is facing.

The plan presented yesterday will Read more

April 16th, 2009 · Filed Under Loan Modifications

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Understanding Obama’s Making Home Affordable MODIFICATION plan

Yesterday, the Treasury Department released some of the detailed guidelines for the “Homeowner Affordability and Stability Plan.” The plan includes $75 billion in incentives for lenders to modify the loans of struggling homeowners which will run through December 31, 2012. These incentives are under the “Making Home Affordable Modification” program.

[Update April 28, 2009: The inclusion of second mortgage loan modification within the MHA modification plan has been added]

MAKING HOME AFFORDABLE MODIFICATION

The “Making Home Affordable Modification” is not mandatory for all investors and mortgage services/lenders; however, it will serve homeowners as an incentive for loan servicers/lenders to generate loan modifications. Nevertheless, financial institutions that accept future “bail out” funding from the Treasury’s Financial Stability Program must participate in the “Making Home Affordable” (MHA) program.

Servicers who decide to participate will Read more

March 5th, 2009 · Filed Under Foreclosure-Short Sale Information, Loan Modifications

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Pimps and Whores of the Loan Modification Industry

There are individuals doing loan modifications legally but there are many more doing it illegally. This is a hot business and it is exposing homeowners to fraud now more than ever.

“It’s becoming an issue. As always, people get very clever when they see an opportunity,” said California Department of Real Estate spokesman Tom Pool.

Figuratively speaking there are “pimps and whores” in the loan modification business claiming to be advocates of the people, claiming to be legit, and claiming to be experts. Some go as far as Read more

January 12th, 2009 · Filed Under Loan Modifications, Real Estate & Mortgage FRAUD

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What is a Loan Modification?

Loan modifications have been, for the most part, the long waited rescue plan for some homeowners who have fallen behind on their payments. Nonetheless, this is not the silver bullet for the foreclosure problems we are going through right now.

Contrary to what the so called “loan modification experts” may say, not everyone qualifies and not every lender is cooperating.

THE BASICS

To understand what a loan modification is, we need to first Read more

November 26th, 2008 · Filed Under Loan Modifications

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SB 1055 California State Tax Relief Applied To Forgiven Mortgage Debt

The big news on everybody’s radar lately was the $700 billion “Rescue Plan,” which was vetoed by the House of Representatives yesterday and sent back to be re-drafted. Many on “Main Street” oppose to the bail out of Wall Street with tax payer’s money, while others see the “bail out” as a necessary evil that could possibly help stabilized the US economy. Meanwhile, there was another type of “rescue” that unfolded in Sacramento last Thursday.

[Update April 12, 2010: CA Governor signed bill SB 401 which will eliminate state taxes on forgiven mortgage debt from 2009 through the end of 2012 - more information below] Read more

September 30th, 2008 · Filed Under Foreclosure-Short Sale Information, Loan Modifications

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Loan Modification and Foreclosure Help at San Jose Community Event

As I mentioned it on the previous post, there will be a big community event held at Independence High school in San Jose on August 20, 2008 aimed to help homeowners struggling with their mortgage payments and much more.

Following is more detailed information about Read more

August 16th, 2008 · Filed Under Loan Modifications

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Loan Modification, Foreclosure Prevention and HUD Counseling Event in San Jose

I have been invited, along with some SCCAOR members, to help in the “Foreclosure Prevention and Rescue Fair” in San Jose on August 20, 2008.

[UPDATE]: Details for the event here

The “Foreclosure Prevention and Rescue Fair” is presented by the City of San Jose, the Department or Real Estate (DRE), local elected officials, several non-profit partners of “Don’t Borrow Trouble Silicon Valley” and The Santa Clara County Association of REALTORS® (SCCAOR).

The main goals for this foreclosure help fair is to assist troubled homeowners avoid foreclosure and keep their homes.

The services that will be provided at this event are: Read more

August 6th, 2008 · Filed Under Loan Modifications

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Federal Tax Relief for Short Sales & Foreclosures signed by the President (H.R. 3648)

After reading my post “Taxing Short Sales and Foreclosures,” few homeowners in San Jose selling their homes as short sales viewed that as a sight of relief because most had either refinanced their homes or purchased their homes with no money down.

At the time I published that post, there were bills that had been introduced but nothing had passed yet. However, yesterday the “Mortgage Forgiveness Debt Relief Act of 2007 H.R. 3648” bill passed by both chambers of Congress and was signed by President Bush.

[UPDATE Oct 3, 2008: Emergency Economic Stabilization Act of 2008 H.R. 1424 extends tax relief through calendar year 2012 - more information below]

Before this bill, when a troubled borrower lived in a home worth less than the actual balance of the current mortgage(s) and Read more

December 21st, 2007 · Filed Under Foreclosure-Short Sale Information, Loan Modifications

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A Homeowner’s guide: Short Sales and preventing Foreclosure Pt2 (Alternatives to selling)

The solutions

If you are in similar situations as mentioned on my previous post, there are some steps that you should take before refinancing. The first thing you should do is (*if you have enough time*) repair your credit (beware of credit repair companies). Next, calculate if you have built enough equity to benefit from the refinance. If you credit is in good shape and you have built enough equity you will most likely be able to either maintain or lower you payment after you have refinanced. Great! What a relief right?

If you cant repair your credit (beware of credit repair companies) in time to refinance or if you have already missed some payments due to Read more

September 17th, 2007 · Filed Under Foreclosure-Short Sale Information, Loan Modifications

10 Comments