Mortgage Modifications - Where to begin?
I'm always surprised when I here about the number of foreclosures in my Brooklyn neighborhood. Their are so many empty high end condos in NYC that the local government is using one of them for the homeless. I commend them. But I also wonder if the former homeowners could have prevented foreclosure by doing a mortgage modification while they were still eligible.
I think mortgage modifications should be the first option when trying to make your mortgage affordable. Refinances are costly, and straw sales leave homeowners vulnerable without legal rights. When mortgage modifications are done properly, monthly payments are adjusted to suit the homeowners true budget, and you keep your name on the deed.
This entry is merely my opinion about mortgage modifications, not legal advice.
Many homeowners who still manage to be current on their payments are eligible for a free mortgage modification program called the Making Home Affordable Plan. (www.MakingHomeAffordable.Gov). To quote a past president, "it's your money, you paid for it." If you're eligible, don't waste time. Take advantage of your tax dollars.
A mortgage modification is similar to a refinance in that it changes the terms of your mortgage. However, a mortgage modification is less expensive than a refinance. It is also different because it considers what you can actually afford to pay. The new terms will be adjusted to consider your cost of living and actual income. The mortgage modification a paid professional could get for you would cost less than a refinance, but it is not free. This is why I suggest MHAP as a first option.
There are many benefits to MHAP. First, there is no cost to you. You can choose any HUD approved agency in NYC to fill out the application for you free of charge. Another important benefit is that the Program gives you $1000 for every year you remain in the program, up to five years. MHAP also gives your lender about $1000 if the bank lowers your monthly rate.
Another benefit to getting into the MHAP program is that you maintain your right to sue your lender. This is an important right that you are unlikely to have if you do a mortgage modification without MHAP.
MHAP is the best mortgage modification program in the country. However, no matter who does it for you, you only get to apply once. Please, investigate the company that files it for you. HUD agencies have been approved by the Obama Administration. If you choose anyone else, please check with the State Department, the NY Banking Department, and the Better Business Bureau before they file for you. Too many people have wasted their one application on scams.
The two most important things to do while you are waiting for acceptance into the program are (1) continue to live in your home, and (2) continue to make your full mortgage payments on time.
Some Documents You May Need to Bring to Your MHAP Application Meeting
1. information about the monthly gross income of your household including recent pay stubs if you receive them or documentation of income you receive from other sources; income of anyone else who lives in home.
2. your most recent income tax return
3. information about the second lien on your home
4. payments on each of your credit cards if you are carrying balances from month to month, and
5. payments on other loans such as student loans and car loans.
6. If you need to lower your monthly bills even more to make the mortgage affordable, then consider filing bankruptcy to get rid of medical and credit card debts
I wish you all the best with your mortgage modification. If you do not apply to the MHAP, but still wish to consider other ways to keep your home, please consult a licensed, reputable professional (lawyer or real estate agent with no affiliation to lender).
I think mortgage modifications should be the first option when trying to make your mortgage affordable. Refinances are costly, and straw sales leave homeowners vulnerable without legal rights. When mortgage modifications are done properly, monthly payments are adjusted to suit the homeowners true budget, and you keep your name on the deed.
This entry is merely my opinion about mortgage modifications, not legal advice.
Many homeowners who still manage to be current on their payments are eligible for a free mortgage modification program called the Making Home Affordable Plan. (www.MakingHomeAffordable.Gov). To quote a past president, "it's your money, you paid for it." If you're eligible, don't waste time. Take advantage of your tax dollars.
A mortgage modification is similar to a refinance in that it changes the terms of your mortgage. However, a mortgage modification is less expensive than a refinance. It is also different because it considers what you can actually afford to pay. The new terms will be adjusted to consider your cost of living and actual income. The mortgage modification a paid professional could get for you would cost less than a refinance, but it is not free. This is why I suggest MHAP as a first option.
There are many benefits to MHAP. First, there is no cost to you. You can choose any HUD approved agency in NYC to fill out the application for you free of charge. Another important benefit is that the Program gives you $1000 for every year you remain in the program, up to five years. MHAP also gives your lender about $1000 if the bank lowers your monthly rate.
Another benefit to getting into the MHAP program is that you maintain your right to sue your lender. This is an important right that you are unlikely to have if you do a mortgage modification without MHAP.
MHAP is the best mortgage modification program in the country. However, no matter who does it for you, you only get to apply once. Please, investigate the company that files it for you. HUD agencies have been approved by the Obama Administration. If you choose anyone else, please check with the State Department, the NY Banking Department, and the Better Business Bureau before they file for you. Too many people have wasted their one application on scams.
The two most important things to do while you are waiting for acceptance into the program are (1) continue to live in your home, and (2) continue to make your full mortgage payments on time.
Some Documents You May Need to Bring to Your MHAP Application Meeting
1. information about the monthly gross income of your household including recent pay stubs if you receive them or documentation of income you receive from other sources; income of anyone else who lives in home.
2. your most recent income tax return
3. information about the second lien on your home
4. payments on each of your credit cards if you are carrying balances from month to month, and
5. payments on other loans such as student loans and car loans.
6. If you need to lower your monthly bills even more to make the mortgage affordable, then consider filing bankruptcy to get rid of medical and credit card debts
I wish you all the best with your mortgage modification. If you do not apply to the MHAP, but still wish to consider other ways to keep your home, please consult a licensed, reputable professional (lawyer or real estate agent with no affiliation to lender).
