Debt Negotiation Zone

How Does The Streamlined Loan Modification Program For Fannie Mae And Freddie Mac Work?

admin — Tue, 02 Dec 2008 05:23:57 +0000

How will the streamlined loan modification program for Fannie Mae and Freddie Mac work? This new mortgage bailout program will be set to begin on December 15, 2008. It will apply only to mortgages that are owned or guaranteed by Freddie Mac or Fannie Mae. A borrower who is 90 days delinquent will be eligible for a new mortgage with a monthly payment that does not exceed 38% of their gross monthly income. Proof of a hardship will need to be justified, jobless or illness etc. If you are not experiencing a loan default you will not be eligible for this mortgage bailout program. You do not need to be in a bankruptcy proceeding. This program is only available to primary residences. Second homes and investment property will not qualify for this program.

For more information you can call Hope Now at 888-995-4673.

If you are interested in a loan modification please call toll free 1-888-368-6668 for a new hassle loan modification review.

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How Does The Hope For Homeowners Program Work?

admin — Tue, 02 Dec 2008 00:41:29 +0000

How does the governments hope for homeowners program work? If you are having a hard time paying your mortgage there are not many great options. You could do a short sell, let the house go into foreclosure or loan modification. If you do not fit into any of these categories, you have one last option. This would be the Hope For Homeowners Program. It is also known as H4H. This program began on October 1, 2008 and will run until the end of September in 2011. This program is the last hope for homeowners by bringing in the federal government who voluntarily will allow a homeowner to refinance under the H4H guidelines. The H4H program will reduce the size of the mortgage to a max of 90% of the properties current appraised value. The other condition is that you can only have a 30 year fixed rate mortgage. FHA will be insuring up to $300 billion of these types of loans. The only kicker is that you will have to split 50% of the appreciated value for as long as you own the home or pay off the mortgage. You will not be able to take out a second mortgage under this program unless the money will be used to maintain the property. For more information please call 888-995-4673 or 800-225-5342. You can also visit the Hope For Homeowners website at http://www.hopeforhomeownersprogram.org.

If you are interested in a loan modification please call toll free 1-888-368-6668 for a free consultation.

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What are the Debt Settlement Rules for being in a debt reduction program?

admin — Thu, 27 Nov 2008 16:20:56 +0000

What are the rules for being in a debt settlement program?

1. DO NOT tell the client to tell their creditors that they are enrolled on a debt settlement program. In fact, if they ask you, “Mr. Sales Rep, what should I tell my creditors now that I have agreed to do this thing?” , tell them to not take any action at this particular moment in time until they speak with your servicing department (us). DO tell them that you will be sending their file over to your servicing department for approvals, and once they are approved, an experienced orientation representative will contact them and tell them exactly how to handle the creditor calls.

Note: When the client does tell his creditors he’s working with a 3^rd party, the creditor will generally refuse to take any reasonable settlement. As an actual example, Bank of America has been sending some of our clients a letter stating that they are unwilling to settle for anything under 70% (only a 30% savings for the client) because they heard the client was enrolled in a debt settlement program. Please help us prevent the client from jeopardizing their own settlements by not telling them to do this.

2. DO NOT tell the client to not speak with their creditors. This is illegal. Simple as that. You can use the same line as above – tell them that the servicing department will tell them exactly how to handle the calls.

3. DO NOT tell a new client that they can change their first draft date or remove creditors once they make to our office. The client needs to be ready to go before I approve the deal.

Note: The client may make changes after they have cleared their first payment…but please do not slap together an inaccurate contract and expect us to complete it for you. It needs to be complete, accurate, and ready to go as-is when it arrives in the Approvals email.

4. DO NOT tell the client that their accounts will be handled by an attorney. This is incorrect. DO tell them that their accounts will be handled by trained negotiators (neither paralegals or attorneys) under the supervision of a law firm.

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Washington Mutual Lowered my Home Equity Line

admin — Tue, 25 Nov 2008 15:33:46 +0000

I just got a letter from Washington Mutual also known as Wamu yesterday. They lowered my home equity line to $900. It originally started off at $27,500. It was lowered about 6 months ago to just over $8000. What are you going to do with a $900 home equity line? I told them to just close it. They said that you have to pay $55 to close it. Rather than close the line they leave a ridiculous amount on it. They are too cheap to close the thing themselves. They would rather have me pay it.

What Did The Bank Reduce My Credit Line?

I just called to have them reduce my line to a penny. They said that they can’t do that. I told them that they lowered it twice without my authorization. I’m giving them permission to take the loan off the books and lower their exposure and they wont do it. Know wonder we are in such a mess the bankers are morons. I will never use Washington Mutual again for anything. They are idiots.

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I Can’t Pay All Of My Bills, What Should I Do?

admin — Sat, 22 Nov 2008 01:10:59 +0000

What should I do if I cannot pay all of my bills. According to Dave Ramsey you need to prioritize. The necessities need to come first. Food, Transportation and housing should be your top priorities. If you can’t pay your credit cards you may just need to let them go for now. You will find that your mortgage company will be alot easier to work with than your credit card company. Mortgage companies are taking extraordinary measures to work with you. In fact Fannie Mae has stopped eviction and foreclosure proceedings until January 9th, 2009. They did this so people get get their mortgage modified. Fannie Mae is committed to not having anymore foreclosures. Credit card companies have not extended their hand as of yet. Your credit card company will probably be unsympathetic to you. The people that usually field these calls are usually bozos anyway. Your credit card company is not your friend. They are in business to make money. They do not do charity work.

What Happens When You Default On Your Credit Card Companies?

You can always negotiate the debt later. Your credit will get ruined in the meantime but you can only do what you can do.

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Why Did My Credit Card Company Lower My Available Credit?

admin — Thu, 20 Nov 2008 23:10:53 +0000

Your credit card company may have lowered your available credit, but why? If you have been watching the news lately, most of the major headlines revolve around the credit crunch and foreclosures. Banks and lenders do not want to leave themselves exposed to unecessary losses. A few months ago Washingotn Mutual lowered my home equity line over 75%. I had never even used the thing. The banks are worried that when times get tough, people are going to tap into their equity lines and then default. The bank just wants to hedge their bet and cover their losses by removing excess credit from people. This is done in the form of closing credit cards, cancelling home equity lines and lower available credit for credit cards.

The next wave of the credit crisis is predicted to be with credit cards. As people loose their jobs and do not have extra money, the credit cards are usually the first thing to go into default. This will be then followed by the car and lastly the house.

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Can The Bankruptcy Court Make Me Sell My House?

admin — Wed, 19 Nov 2008 00:23:58 +0000

Can bankruptcy court make your sell your home? Many people think that because you are in bankruptcy that your home is off limits to your creditors. Remember that most homestead exemptions only cover $150,000 worth of equity.

Example Of When A Bankruptcy Judge May Make You Sell Your Home

Lets say that you own a $2,000,000 home with a mortgage and you have credit card debt that is unpaid. The bankruptcy court may deem that your $15000 mortgage payment is an obstacle to you paying your credit card bills. If you only had a $2500 mortgage or rent payment you would be able to pay your bills. From this stand point a bankruptcy judge may order you to put the home on the market and sell it. It makes sense though. When is too much too much? You may not be able to keep up on your luxury but at least your bills will be paid.

This information is of general interest only. If you need bankruptcy advice, seek the services of a qualified attorney.

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I Just Got A Letter From The IRS, What Do I Do?

admin — Tue, 18 Nov 2008 04:18:13 +0000

Getting a letter from the IRS can be a scary proposition. But you do not need to loose your cool. Just take a deep breath and read it again. Sometimes your brain can trick you. You think that you are reading one thing and the letter may actually mean something else. Most letters from the Internal Revenue Service are just over minor issues.

Recently I got a letter in the mail from the IRS stating that they wanted $21,000 in back taxes. I thought I was going to loose my mind. When I got to the heart of the matter I found out that my IRA rollover was not reported correctly. I thought that is going to take forever to get straight with the tax man. All it took was a phone call to explain the problem. The woman I spoke with at the IRS just said not to worry about it and she would send out a letter to fix it. That was it. You do not need to fear the IRS they want to get it right and they do not really want to give you a hard time either.

It just goes to show you that 99% of what you worry about never happens.

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Get A Secured Debit Card After A Bankruptcy

admin — Wed, 12 Nov 2008 22:50:23 +0000

Getting a secured debit card after a bankruptcy can help to rebuild your credit score. It can sometimes be tough to get credit reestablished after being discharged from a bankruptcy. A secured debit card is an easy way to get plastic back into your wallet. You will need to fund the debit with cash upfront however before you can use it. As long as the pre paid debit card has the visa or master card logo on it, you can use it at most stores and retailers. Usually after a period of time, you can convert your secured credit card to an unsecured credit card. This can take some time so be patient. These secured credit cards over time will help you rebuild your credit score so you can go out and get credit at decent interest rates.

A Bankruptcy Is Not The End Of The World

Your life is not over just because you have filed for a bankruptcy. The sun will come up and the tide will come back. You just need to take a new step forward each day. Just remember what had you get into the financial position that caused you to get into the bankruptcy in the first place. Old habits can be hard to get rid of. Just make sure you do not repeat the past. You may even want to find a financial mentor to assist you in creating healthy financial habits.

This information is of general interest and should not be considered legal advice. If you need legal or professional advice, seek the services of an attorney.

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How To Survive A Bad Economy

admin — Tue, 11 Nov 2008 00:21:35 +0000

Let face it, times are tough. Worry and fear are going to be your worst enemies if you let them take over. Once you have overindulged in negative thinking, it’s hard to get your brain back on track. Think of it as a diet. Losing weight can be tough once you have packed on the pounds. The habits of eating can be tough to change. The same it true for your thinking. Once you have gone down the path of negative thinking, it can be tough to bring yourself back to being present to the miracle of being alive.

How Do I Stay Positive In A Bad Economy?

There is no one way to answer this question but it is important to stay in action. Do not sit around and worry. Watching the news is not going to make you happy right now. I would recommend just turning it off for awhile. You would be better off to just watch funny movies. Who do you talk to. Are your friends and the people you interact with regularly buzz kill? If so you may want to avoid them or let them know that you are not interested in engaging in their negativity. They may not even notice what is spewing out of their mouths. You may be doing them and the people around them a favor. Set goals and have a plan. You don’t want to be pie in the sky. Set realistic goals and take it day by day. Rome was not built in a day.

Lastly, give yourself a break you are only human.

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