Making Home Affordable: What Not To Do If You Have Been Served
In the past people could only seek a modification of their mortgage if they fell behind on their mortgage payments and if their mortgage company started the foreclosure process. Yet most people know far in advance when they will have challenges making their mortgage payments. The reason mortgage companies never modified mortgages for people until they fell behind on their payments was simple. They were just following the wording of the legal agreement they had when these mortgages were taken out. The Making Home Affordable Modification Program addresses this. The guidelines state that a person who is current on their mortgage but feels that they will not be able to continue to make their mortgage payment on time may qualify for a modification to their mortgage.
Don’t File Something Without Knowing These Two Rules!
Rule One: Before you file your response, you need to be aware that everything you file will become a permanent record in the case. Rule Two: You also need to know that some defenses that may be available to you are waived if you do not raise them in your initial response. Therefore, it is imperative that you thoroughly examine your mortgage documents as well as the court documents for any defenses, defects or standing issues, plus, are careful not to file anything that can hurt your case.
Don’t Expect The Lender To Put Foreclosure On Hold While You Try To Get A Modification! Countless homeowners believe that the lender will halt foreclosure proceedings while they are going through the modification process. This couldn’t be further from the truth. Lenders most certainly continue with foreclosure proceedings while you apply for various alternatives. Your foreclosure may be put on hold if you are given a trial modification under the Making Home Affordable program, but if your final modification is denied, foreclosure proceedings will pick up right where they left off.
Net monthly income is the monthly gross income less monthly payroll deductions, the monthly escrow payment for property taxes, home owner’s insurance and mortgage insurance, any association fees, car and credit card payments, all other reasonable living expenses and any losses the person may have on rental or investment properties. If the person’s net monthly income is less than 120% of the monthly principal and interest payment on their mortgage and if they have savings less than 3 times the current monthly principal and interest, taxes and insurance payment on their mortgage, they will qualify for a loan modification under the program.On any case where the mortgage company approves a loan modification for a person under these circumstances, they have to document the reasons they did so in their system.
The author is a licensed real estate broker and has been on the front lines of the “economic crisis” since the beginning. He continues to fight for consumers nationwide. If you need help fast with a loan modification he provide’s consulting services to share his experience working with every major lender in the country.
Learn more about Obama Mortgage Relief Plan Qualifications.
