When meeting with the lender, the consumer must be do the following:

• Always be truthful to the lender
• Have complete copies of last two (2) federal tax returns including all W-2’s on all borrowers
• Have copy of most recent paystub for all borrowers on the transaction
• Have a copy of last two (2) months bank statements on all accounts and any stock/investment accounts
• If refinancing, have a copy of most recent mortgage statement
• If refinancing, bring copies of original documents in regard to mortgage
• Prepare a list of all assets, including names of banks, average balances along with a list of all liabilities, i.e., auto loans, credit cards, 2^nd home mortgages.  Note the lender can receive this information via a copy of your credit report.  But having the information available at the meeting is important.

At this meeting, the lender will be able to approximate, what your debt to income ratio. The final ratio is determined by credit underwriting. 

By having this information available, the lender should be able to discuss with the consumer various types of loan programs, which will meet the consumer’s financial position.  If you are a new home buyer, it is important that you have money available for a down payment. 

Today’s consumer is asking themselves, “How am I going to get out of debt?” The answer to that question is to consider a debt settlement program as a method to resolve their current financial situation. Consumers have not faced this type of financial climate since the Great Depression and in that situation; they were not overburden by unsecured credit card debt. Consumers are riding a roller coaster of emotions because of their financial situation. This along with the fact they are facing financial hardships because of a lost of job, reduced salary, divorce, death or medical emergency.

The consumer needs to select an experienced debt settlement company.  This company should be able to provide answers to all the consumer’s questions in a way that the consumer clearly understands how the program works.  The consumer should ask for the following:

• Upfront copy of all documents along with fee and cost schedules
• A company profile
• List of accreditations or afflictions, i.e., Better Business Bureau and associations

With any program, there are pros and cons when considering a course of action.  It is the consumers responsible to ask questions and do their research on the debt settlement company they select.

 The con’s are:

·         Tax ramifications – consumer will need to report any amount of forgiven debt that exceeds $600. This means an increase to your tax bill.

·         Credit score will drop

Some of the pro’s are:

• One single monthly payment
• Avoiding bankruptcy as an option. Always consult with an attorney about this step.
• Stopping collection calls
• Possible elimination of lawsuits and other legal action
• Stop any extra charges to the credit card

The strategy is gaining momentum across the country.  If your bank will not issue you a loan modification, you may want to consider a produce the note strategy.  You really have nothing to loose.  This strategy is not intedt to help you get a free home, it is only intended to delay the foreclosure process and put pressure on the lender to negotiate better terms that you can afford.

The First Step in The Produce The Note Strategy, sample letter;

IN THE CIRCUIT COURT OF THE                                JUDICIAL CIRCUIT
IN AND FOR                                      COUNTY, STATE OF
CIVIL DIVISION

[name of bank or lender]                                       ,            CASE NO.:

Plaintiff,

vs.

[your name]                                             ,

Defendant.
/

REQUEST FOR PRODUCTION OF A DOCUMENT

Defendant   [your name]                              requests Plaintiff,    [name of bank]                                              produce, within thirty (30) days of the service hereof, at    [your address]____________ ,                                                                                                        the original Promissory Note signed by Defendant on [date you signed the promissory note].

[Sign your name on this line]
[Type or print your name here]
[Type or print your address here]

CERTIFICATE OF SERVICE

I HEREBY CERTIFY that a true and correct copy of the above and foregoing has been furnished by U.S. Mail to:      [name and address of Plaintiff’s / Bank’s / Mortgage Company’s , this ______ day of      [month]            , 2008

[Sign your name here]
[Type or print your name here]

If the lenders lawyer does not respond within 30 days you should file a motion to compel;

sample file motion to compel;

IN THE COURT OF                              IN AND FOR
COUNTY, STATE OF
CIVIL DIVISION

[Fill out the above with the official name of your court]

[name of lender]                                       ,            CASE NO.:   [fill in case number]

Plaintiff,

vs.

[your name]                                             ,

Defendant.
/

THE DEFENDANT’S MOTION TO COMPEL

Defendant [your name], moves the court for the entry of an Order directing Plaintiff to

produce to Defendant the document described in the request to produce which is attached as an

exhibit to this action.  The basis for the relief requested is set forth below.

On [date you sent request to produce to Plaintiff’s lawyer], Defendant sent to Plaintiff’s

Counsel by U.S. Mail the request to produce, a copy of which is attached as an exhibit.

Despite the passage of 30 days (in addition to 5 days, as this request was sent by U.S.

Mail for the services of Plaintiff’s counsel*) of this request on Plaintiff’s counsel, Plaintiff has

not  produced the requested document to Defendant or contacted Defendant to state

that the document is available for inspection and copying.

*You should check the Rules of Procedure in your jurisdiction or call the Clerk of Court to confirm how much time a litigant has to respond to Discovery before you can Move to Compel the production of this document.  Thirty days has been inserted in the Motion as this is the amount of time most states give a litigant to respond.  Your state’s rules may be different, and you need to state in the Motion the number of days which your state provides.  (*Note: delete this passage before filing)

Defendant hereby requests that this court enter an Order directing Plaintiff to produce the

document requested by Defendant in the request to produce, and provide to Defendant such

other and further relief to which Defendant may be justly entitled to under the circumstances.

[Sign your name on this line]
[Type or print your name here]
[Type or print your address here]

CERTIFICATE OF SERVICE

I HEREBY CERTIFY that a true and correct copy of the above and foregoing has been furnished by U.S. Mail to:      [name and address of Plaintiff / Bank or Mortgage Loan Company , this ______ day of      [month]            , 2008

[Put your name here]
[Type or print your name]

This information is of general interest.  If you need legal advice seek the services of a professional or attorney.

How Do I Qualify For A Loan Modification with Fannie Mae?

1.  You cannot get cash back of more than $2000.

2.  You can only redo a first mortgage.  You cannot pay off the balance of a 2nd mortgage.

3.  You cannot get a fannie mae loan mod with DU Refi Plus if you have an interest only loan.

4.  No refinancing of MyCommunityMortgages.

5.  No Balloon Mortgages.

6. No arms with fixed rate periods of less than 5 years.

Contact a mortgage loan officer to see if you can get a loan modification with the DU Refi Plus.

Citimortgage Loan Modification Requirements

You will need to provide Citi Mortgage specification information about your financial situation including pay stubs, tax returns, bank statements as well as a mortgage modification letter.  The mortgage modification letter will inform the bank as to the circumstances that got you in a position to ask for a loan modification.  If you have not income or make too much money, don’t be surprised if you are declined.  A mortgage modification is only for borrowers with legitimate hardships and are facing a foreclosure.  Just because the value of your home went down doesn’t mean that you will be eligible for a loan modification.  If you buy stock and the price goes down, you probably wouldn’t call your stock broker.  That is the same risk when you buy a home.  Owning a home does not guarantee you that you will have appreciation.

How Does H4H work?

If you are having problems meeting your monthly mortgage obligation, Hope for Homeowners may be able to assist you by refinancing your current mortgage into 30 or 40 year options to lower your monthly mortgage payment.

Call Customer Service First To Try And Get A Loan Modification

If you are trying to get your mortgage modified, your first call should be to your lender.  Most lenders have loan work or loss mitigation departments to deal with the pre foreclosure homes.  You will most likely need to provide information on your financial wherewithal.  If you do not have any income, you will probably not be able to get your loan modified.  You have to be abel to demonstrate that you will be even able to handle the new payment that can be worked out for you.  You may have to give your lender your tax returns, pay stubs and financial statements to be even considered for a loan modificaiton.

Should I Hire A Loan Modification Attorney?

I have seen law firms starting to advertising for loan modifications.  The truth is that you can probably do a loan mod yourself without an attorney.  If you feel more comfortable using an attorney to handle the modification , I would not try to talk you out of it.  You have nothing to loose to try and do it yourself first however.

GMAC Mortgage 800-799-9750

Wells Fargo  800-678-7986

Citigroup, Citibank and Wachovia  866-272-4749

JP Morgan Chase, Chase, Wamu, Washington Mutual  866-550-5705

Countrywide  800-669-0102

M&I  877-473-4333 or 877-849-6160

If you are behind or know that you are going to get behind on your mortgage, don’t wait until it is too late.  The sooner you start the more likely you will end up with a favorable result.  Save your home from foreclosure and make the call today.  You home is worth saving and loan modifications do work.  You do not need to pay someone to do a loan modification, you can do it yourself.  Use this information to save your home.

Contact Your Bank Before You Are Late On Your Mortgage

It is wise to contact your bank before you are late on your mortgage payment.  Some banks and lenders do have policies that allow for a loan modification to be completed even before a late payment has occurred.  If you are in an arm or have an option arm you may be eligible for an automatic loan modification.  You would just need to contact your lender about this.  I would not make any assumptions about loan modification until you have all of the information.

How Do I Get Started On A Loan Modification?

If you are in trouble with your mortgage don’t wait.  Call your bank as soon as you can to see if they will do a loan modification for you.  You must have an income.  You need to be able to demonstrate that you will be able to even afford the new payment.  If not they wont work with you and you will probably end up in foreclosure if you can’t get the property sold.