—-> Arizona Loan Modification Contacts<—-

Being a “mortgage guy” in today’s world is kind of surreal.  I talk to many people each week who currently owe more than their house is worth and may (or may not) be behind on their mortgage payments.

Which means they pretty much are not going to be able to refinance their home with the current programs out there.

So if you find yourself in the situation where you are falling behind on your mortgage payments (or about to) because of some kind of economic hardship that you are going through, these are your basic options:

1. Try to get your current lender to modify your loan
2. Try to qualify for the FHA Hope for Homeowners Program
3. Try to qualify for the FHA Secure Program
4. Try to do an FHA Short Refinance
5. Do nothing and most likely end up in Foreclosure at some point

As we have wrote before, the FHA Hope for Homeowners program and the FHA Secure program are semi-not-real — meaning these loans are just not getting done in most situations even though the media makes it sound like they get done all of the time.

So it seems that most people I talk to are a candidate for a Loan Modification or an FHA Short Refinance or Foreclosure.

Many times, I am asked “what is the best way to get a loan modification done” and my answer generally is “try to do it yourself and if you end up frustrated, then hire a loan modification firm to represent you to work with your lender to get your loan modified.”

Here are 4 tips when deciding which loan modification firm to hire that can hopefully ensure your chance of successfully getting your loan modified at a fair price:

Make sure that the loan modification is “attorney based”. This means that you will actually have a legal firm representing you, not just a sales organization.  The loan modification company will be working with your lender’s loss mitigation department – and somehow these departments seem to respond better to attorneys than they do to people who are not attorneys.

Shop around. Loan modification companies have all different kinds of pricing models — some charge $3,000 up front and no guarantees.  Some charge $500 up front, then 2% if your loan is successfully modified. Some charge a flat-fee.  There is a wide variety of pricing models, so be sure to speak with AT LEAST 2 or 3 different companies before making your final decision.

Look for them, don’t let them look for you. If you are contacted by someone about “having your loan modified”, be very careful.  Many times, these are the most aggressive sales organizations. Good loan modification companies don’t use these tactics, they know that there are plenty of homeowners who need their help and don’t need to aggressively go after them.

Ask around for a referral for a good loan modification company. You may be surprised to learn how many of your neighbors have had their loan modified already.  Many of them used a loan modification company to assist them in getting it done — don’t be afraid to ask for a referral.

Do loan modifications work?

Yes.

I have heard and seen probably hundreds of success stories of people getting their loan modified — and in a time where so few (if any) people got a FHA Hope for Homeowners loan, it makes sense to be smart about how to improve your chances of getting your loan modified.

Learn How To Get Your Loan Modified On Your Own Without The Help Of An Attorney

The Federal Housing Finance Agency (FHFA) recently announced a loan modification program that it is calling the “FHFA Streamlined Loan Modification Program” and the plan goes into effect December 15, 2008.

To qualify for the FHFA Loan Modification Program, borrowers must:

• Have a loan owned or guaranteed by Fannie Mae or Freddie Mac.
• Owe 90% or more than the home is worth.
• Be 90 days or more behind on payments.
• Demonstrate financial hardship.
• Not have filed bankruptcy.
• Presently occupy the home.

Possible remedies under the FHFA Loan Modification Program include:

• Interest rate reduction (but not below 3%).
• Loan term extended from 30 to 40 years.
• Deferred principal.

Note that principal reduction is not among the possible remedies.

Some interesting insights into the program according to Kathleen Pender at The San Francisco Chronicle:

Peter Schiff, president of Euro Pacific Capital, predicts that many homeowners who have little or no equity will stop paying their mortgage and then reduce their income to get the biggest payment cut possible. They could stop working overtime or, if two spouses work, one could quit. After the modification, they could try to boost their income again.

“This is a once-in-a-lifetime opportunity,” Schiff says. “People are going to feel like complete morons if they don’t participate. The people getting punished are the ones who never made an irresponsible decision to buy a house they couldn’t afford.”

The government is offering loan servicers $800 for every homeowner they get into the plan.

Schiff predicts that loan agents “will be cold-calling people trying to get them into it. Just like they encouraged people to overstate their income to get a bigger loan in the first place, now they will encourage them to understate their income to qualify for a smaller loan.”

To prevent fraud, the government says a borrower “must certify that he or she experienced a hardship or change in financial circumstances, and did not purposely default to obtain a modification.”

Learn How To Get Your Loan Modified On Your Own Without The Help Of An Attorney