Getting a loan modification on your home loan,,, just facts
I know that this is going to ruffle some feathers to some reading this. But I did not make up the numbers regarding the fraud coming from loan modifications they come from the California Department of Real Estate but I can say that it is in line what I have seen and it does seem to be predominant. There is always an exception to the rule but for the most part when trying to get a loan modification due try to keep a few things in mind. This will be a two part series first the loan modification scenario and second what you can do.
First off foreclosures and short sales are still a common occurrence in here in the Santa Maria Real Estate market and for that matter in many areas of the country. Many homeowners prior to losing their home will try to get their loan modified. Most homeowners sad to say do what all the financial experts on the morning and evening televisions shows tell them to do which is call your lender. Only to find out its not that easy to call your lender you get bounced around from person to the next or put on eternal hold and sometimes you may get someone that is civil and helpful and other times some one that is obviously arrogant and can careless what the situation is that the homeowner is going through. I remember doing exactly call for the for the client only to hear the recording that my wait time is “480 minutes” , needless to say I did not wait.
Many homeowners are confused and rightly so after hearing all the aid that is being offered to them through the Obama home affordable act as well as any other advice that they get from all corners. The problem with all these government bailout programs or aid to stop foreclosures are voluntary the banks do not have to participate to help you or any other homeowner. Which sorry to say should have been something that could have been implemented before we gave them all the money so they can stay in business and foreclose on their clients that had home loans with them.
Most homeowners are turning to loan modification companies that they either saw online or received some kind of letter in the mail announcing how they can help or as I am told by many of my Hispanic clients, what they heard on the radio. What never seems to amaze me is how the advertising on the Spanish radio seems to offer so much more in being able to help someone get a loan modified but the same individuals don’t advertise their services on the English radio nor do I hear the same “type” of help from anyone? Which is something I point out to the clients seeking loan modifications, to beware of who you are dealing with, (and which has been reported to the DRE.)
According to the California Department of Real Estate 9 out of 10 companies offering services to do loan modifications do nothing to help the homeowner get a loan modification. I have even seen Real Estate agents offer to do loan modifications only on the premise of getting the client to do a short sale after they could not obtain a loan modification. That is not to say that there are not individuals and companies that are not doing loan modifications and helping, its just that 9 out of 10 do nothing. Another fact to point out is that the DRE has partnered with the California State Bar and had approximately 800 open cases involving attorneys which you can go to the website of the State Bar since the names of the attorneys are being published.
This is not something that will be going away any time soon but in times of economic turmoil there are always going to be unsavory people taking advantage of others and preying on their weaknesses and needs. The Santa Maria Real Estate market like many other real estate markets is still recovering and there are still many more homes to hit the foreclosure market, sad truth is that until the unemployment numbers come down recovery is still a long way to come.
Look out for my next blog on tips and advice on how to get your loan modified and tips on what to look for and ask if you plan on working with someone that will help you get your loan modified.
my goal is to provide you with resources you need. I can also help in getting the financing for your home. If you have any suggestions or questions in how I can provide more or better information please let me know. I have been helping my clients for the last 15 years on the Central Coast, Gene Perez – 805-448-7101 , DRE 01321588
Gene, this is so troubling. How can our government force banks to fairly modify loans? How do we bring jobs back and still remain competitive in a global market? I think most Realtor's truly want to help but find that the banks just won't budge and short sale is the next option. Great blog, it's something we see in Florida as well., and we have Chinese Drywall as well. What a mess!
Gene, this is so troubling. How can our government force banks to fairly modify loans? How do we bring jobs back and still remain competitive in a global market? I think most Realtor's truly want to help but find that the banks just won't budge and short sale is the next option. Great blog, it's something we see in Florida as well., and we have Chinese Drywall as well. What a mess!
Best Regards, Jay
hello jay thanks for the comment ,,, as far as forced ,, we were all forced to bail them out ,,, but there could easily been legitamate and fair plan to modify the loans and the sad thing now is the bank are profitting from the foreclosures on these homes with the share loss agreements in place I guess I should of mentioned that in the blog ,, but it is in a seperate one
The 'Share-Loss Agreements' have definitely created a negative effect for the homeowner trying to legitimately modify their mortgage to save their home. Thanks for the blog.