Mortgage Lenders are Hiring More Loan Counselors

More people are looking to get loan modifications on their mortgage loans than ever before. Mortgage lenders have begun to take note of this and are working overtime to get these modifications handled. One of the ways how they are doing so comes from how they are hiring more loan counselors.

These loan counselors are employees who work to help with administering assistance to customers with their loans. One of the practices that counselors can work with deals with getting new terms set up for loans.

A loan counselor will work on an individual basis with a client who needs assistance with one’s mortgage. When more counselors are used it will be easier for a mortgage lender to work without a great deal of pressure. This comes from how the caseloads of each counselor will be reduced. This has become one of the most important concerns for mortgage lenders. When counselors have smaller workloads they can work with a greater amount of quality and attention for each individual client.

One of the most notable examples of how more lenders are working with more counselors comes from J.P. Morgan Chase. The company hired over a thousand new loan counselors over the course of 2009. Chase also opened up twenty brand new assistance centers. These are places where these counselors can work to help assist customers by allowing them to get into loan modification plans.

More than twenty different banks have been asked to hire more loan counselors. This is a request that was made in 2009 by Treasury Secretary Timothy Geitner.

As the government’s loan modification incentive program continues the number of loan modifications is more than likely going to increase. As this number increases the number of loan counselors who will be working for lenders will more than likely increase.

Loan Modifications are Becoming Popular as Home Values Decline

One of the main reasons as to why so many people are getting into loan modifications comes from how their property values are declining. Being able to get into a new loan is something that is important for one’s needs when the value of one’s home declines. This is done so a home can be easier for someone to afford to stay in.

The values of homes around the United States have fallen substantially over the years. In 2006 it was estimated that the median value of a property in the country was around $240,000. In 2009 that value fell down to a little less than $175,000. This is something that has caused thousands of Americans to go underwater on their homes.

This is something that is especially worrisome in many major metropolitan areas. For example, in Phoenix the median value of a home has fallen from nearly $300,000 in 2006 to around $150,000 in 2009. Meanwhile, the median value of a home in Chicago has gone from around $260,000 in 2006 to closer to $200,000 in 2009.

This is an important piece of loan modification news. When a person’s loan has a value that is higher than what a person’s home is worth that person will end up being underwater on one’s mortgage. This is a condition that can suggest that a mortgage loan is one that is no longer worth it in its current form.

By getting into a loan modification it can be easier for a person to afford one’s home. This comes from how many loans can be altered to where they can be closer in value to the real value of one’s home. This is something that will make staying in one’s home something that is going to be more affordable for a person to deal with.

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Loan Modification Scams are Popping Up

A loan modification service is a useful thing for anyone to get into. However, the popularity of this type of service has caused by loan modification scams to appear. These are scams that can make difficult loan situations worse for people who get into them.

One recent piece of loan modification news deals with the bust of a loan modification scam in southern California. Nine people ran a scam that robbed thousands of homeowners who needed help out of millions of dollars.

This scam works in that each person that got into the program paid an upfront fee of a thousand dollars each. Each person was then told that an attorney will come out to help everyone out on an individual basis. However, no one ever came out to help anyone with any type of plans. This caused the loans owned by the people who were victimized by the scam to become worse.

This loan modification news story is one that highlights one of the main signs of a loan modification scam. This deals particularly with the use of the upfront fee. The fee was used by the scammers as a means of making sure that all of the people involved in the plan were getting good profits off of other people. The desperation that these people probably had was a real problem here as well.

The best thing for a person to do is to learn from this story. No upfront fees should be paid to anyone who offers loan modification services. Besides, loan modification specialists will generally work without the use of any fees. Any type of service that works with some kind of substantial fee will more than likely be a scam. This is especially for a case where a fee is used prior to the time when services are being used.

Loan Modification Workshops are Being Held in Many Places

A number of areas that have been impacted by the weak housing market are getting support from different home loan lenders. This comes from how many of these lenders are offering loan modification workshops. This is refreshing loan modification news for people to see.

A loan modification workshop is a type of event that allows people to get modification services. People who have troubled home loans can bring the information that they have on them to a workshop. A loan modification specialist can review one’s loan on the site of the workshop. A full analysis of the loan can be used along with information on a person’s finances.

A loan modification can then be offered. This can be done in the event that a person agrees to get into a modification. This modification will work to help with making sure that it will be easier for a customer to handle a home loan.

Some of the places that these workshops can be found at are places that have gotten in trouble during the recent housing crisis. For example, a recent loan modification workshop was held in Miami by Wells Fargo and Wachovia. This is an area that has been impacted by sudden declines in home values during the recent housing crisis.

These workshops are also able to handle people of all sorts. These include people who are a few months past due on their mortgages and others who are in the process of foreclosure.

It is expected that more of these loan modification workshops will begin to appear as more people demand assistance with their loans. This will help to ensure that people will be able to get solutions for their loans as soon as possible. This will make it easier for anyone to be able to avoid a foreclosure.

admin | Loan Modification News | 07 9th, 2010 | 1 Comment »

Are Lenders Delaying Loan Modifications?

A good loan modification is one that can work as soon as possible for one’s needs. However, some people are not getting all of the support that they are looking for. A disturbing loan modification news item states that one of the largest lenders in the country has delayed a few loans.

On Tuesday three New York area homeowners filed a lawsuit against JPMorgan Chase. This lawsuit states that Chase lied to them about the loan modification schedules that they could have used. The lawsuit says that the homeowners had to continue to make regular loan payments while waiting to get loan modifications to work for them. They argue that Chase delayed the time that it would take for a modification to work along with the time it would take for a modification to become permanent.

In one case a client was refused a permanent loan modification. This was despite the fact that the client successfully made one’s trial modification payments. That person should be been able to get into a permanent loan modification at this point but instead did not.

The fact that all three clients were able to qualify for permanent modifications is an important thing to see. Chase allegedly refused to move trial modifications into permanent modifications. This is a news story that suggests that some lenders may not be willing to work with other people for their loan needs.

A major consideration could be from the amount of money that could be involved in a case. A lender will end up losing money after a loan modification is used. However, the lender could lose even more if a homeowner cannot make payments and that person’s house is foreclosed upon. This is an important consideration that more lenders will need to think about when looking into loan modification services.

Different Types of Loan Modification Programs Are Being Made Available

One of the best pieces of loan modification news to come out of the woodwork in recent time involves lenders working with different programs. These are programs that are being made available with specific types of mortgage concerns in mind. They work with a number of different functions as well.

Mortgage providers are offer specific loan modification services to people who are underwater on their mortgages. This is convenient in that a person who is underwater on one’s mortgage will end up owing more than what one’s home is worth. Some of these special services are being used as a means of helping to get loan principals down to more realistic values.

Another popular type of program is that of a program for a person who has lost one’s income. This is something that could work for a person who involuntarily lost income due to being involuntarily fired from a job or being injured and unable to work. Loan modification programs are being made available to people who may not have incomes that can be used to help with paying off mortgages.

This is something that can work on a temporary means while a person is looking to find a new job or is recovering from an injury. In other cases the program can become a permanent one. This will vary according to the discretion of the lender who is offering the program.

The extension program is also being used. This is used as a means of extending the life of a loan by a number of years. This is a service that offers new terms that can vary according to lender that is working with the program.

All of these loan modification programs are being made available by a large number of major lenders. The number of lenders that will offer these varying programs should increase over time as loan modification services become more popular.

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More Lenders are Going with the Obama Administration’s Loan Modification Standards

The Obama administration’s request to get many mortgage loans to have reduced interest rates has been something difficult for many lenders to deal with. This comes from how interest rates for these loans can be less than three percent and in many cases as low as two percent in value.

However, more banks are beginning to go ahead with this plan. This is done as a means of helping to make sure that they will be able to keep from having to deal with losing money off of foreclosures.

A big loan modification news story of recent time states that Chase and Bank of America are both working with these new standards. Wells Fargo is also getting into the process. This is notable because of how large these banks are. They are three of the most popular ones in the country with regards to mortgage loans thanks to the massive number of customers that they have to deal with on a regular basis.

The increasing number of bank failures is another factor here. More than a hundred different banks have failed in the past year due to their inabilities to handle mortgage loans. This includes four banks in the Chicago area that closed on April 23 alone.

These banks are also beginning to realize that if they do not work with loan modifications they are going to be likely to join that list of bank failures. The expenses that come about from a loan modification are substantially lower than that of what can come about through a foreclosure or bankruptcy declaration.

The number of banks that will go ahead with reduced interest rates for loans will more than likely go up over time. This will be done as more banks begin to recognize the benefits of a loan modification service.

Loan Modification Services are In High Demand in Areas with High Foreclosure Rates

A number of areas, particularly ones in the southwestern part of the United States, are looking into loan modification services more than ever before. This comes from how these areas are ones that feature high foreclosure rates.

Some places around the country that have high foreclosure rates are ones that have these rates due to the burst in the housing bubble. The values of many homes have gone down in recent time in these areas. This is causing more mortgage loans to become unaffordable.

A number of agencies that offer loan modification services are targeting these high rate areas. The six main states that are being targeted as of late are Arizona, Nevada, California, Utah, Idaho and Florida. These are all states that have had at least one home out of every hundred homes in their areas foreclosed upon. In many metropolitan areas in these states the numbers are worse. For example, one out of every twenty-eight homes in the Las Vegas area have been foreclosed upon in recent time.

Agencies are looking into these places particularly because of how they are areas that offer more work to be done. This is something that can help to get an agency to be able to earn more exposure.

The concern about this comes from how banks may have a limited number of counselors that can help out in these areas. This means that they may not be able to work with all of the demands that different loan modification agencies are imposing onto them. The job market for loan counselors should end up growing as a result of this.

This piece of loan modification news is an important thing to take a look into. As more foreclosures come into certain areas more agencies will end up targeting those areas. This is especially something to watch for in places where the housing market has taken a complete turn for the worse.

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More Permanent Loan Modifications are Being Used Today

People around the United States have been asking for their loan modifications to become permanent. This is being done as a means of getting loans paid off on time and with relative ease. A good piece of loan modification news for these people comes from how more lenders are working with permanent loan modifications than ever before.

The main reason as to why a loan modification can become permanent comes from how the trial period of a modification will be one that has been passed. What happens here is that a person will apply for a loan modification service and be granted a trial period. If the person actually makes one’s payments under the new terms then that person will end up getting the new changes to become permanent. This makes getting favorable terms on one’s loan easier to get.

Reports are stating that in March 2010 Saxon Mortgage Services had a little over four thousand pending loan modifications that were getting towards the permanent stage. Meanwhile, the official number of permanent modifications from Saxon had gone up to nearly nine thousand in value during the same time.

In addition to this Wells Fargo has gotten about 9,100 permanent modifications in the development stage. This number was as of March 2010. This is more than fifteen hundred more modifications than what was being used just a month earlier. These numbers are ones that make Wells Fargo one of the most popular companies around with regards to loan modification services.

The increase in the number of permanent loan modifications is a suggestion that people are becoming more willing to handle new terms on their loans after they get them. Thanks to this more lenders are expected to cooperate with the general modification needs that people are looking into for their properties.

A New Website for Preventing Loan Modification Scams is Up

With more people looking to get loan modifications than ever before more people are putting themselves at risk of getting into scams. This comes from how many different groups are going to try to prey on innocent people who need real help. With this in mind the Layers’ Committee for Civil Right Under Law is teaming up with Fannie Mae and Freddie Mac to help prevent loan modification scams.

The new website that has been created by these groups, preventloanscams.org, is a website that is offering information on loans modification scams. This includes information on how loan modification services work. It covers information on how to find a scam as well. This includes such things as warning signs of scams and how to tell if a person has ended up being a victim of a scammer.

The website is offering a system where a person can file a report on a scam. When this information is filed the situation will be investigated to see if a modification service is working properly. If a scam is found the website in question will be targeted and shut down if necessary.

A useful feature of the site is that it features details on legal agencies and services that can be found in different states. This includes details on websites that are available for people that will help to get a person to responsibly get a good loan modification system ready.

Being able to check this website is a very important thing for anyone to do when looking to get a loan modification. This can be used to help with seeing if something is a scam and also to see what to expect during the entire process. This can make a great amount of different when it comes to handling a loan modification service.

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Acceptance into Federal Loan Modification Program Slowing

The Federal loan modification program was put into place to help millions of people across America to prevent their homes from going into foreclosure. The applications for this program that were being handed in hit the all time high in 2009 but many of them hadn’t even heard a response. Now that several months have passed, more individuals are receiving responses but they do not necessarily like them.

As of April 2010, there were more rejections into this program than ever before. While in part, this was due to applications not being filled out correctly, many people who weren’t eligible for them have applied and been rejected. While the advertisement campaign for this program made it seem fairly easy to apply for, when potential candidates finally went to apply, they found it to be very different and even confusing. There were rules in applying and various requirements that needed to be fulfilled, some of which had to do with the amounts of the loans that were owed, the sizes the homes and so on.

These is another side to the store however in how these people ended up applying for this program and were told that they were eligible but in fact were not. That side is the loan modification companies that were supposedly helping these individuals but were actually not legitimate companies. It is a sad fact, but it is true. Many people were deceived into believing that they were eligible for this program by those companies just to increase business. This really proves the point for those who haven’t had their loan modified but have the desire to start to process, to make sure that they find a good legitimate company to offer them help. If they aren’t eligible for the Federal program, they will be told, and then they can start on another route instead. It saves time and money just by finding the right company for this assistance.

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Banks Helping Homeowners with Loan Modifications, Not Just Government

With loan modification hitting the news a lot in the last few years, it was mostly the government and banks participating with the government that received the attention. The Federal loan modification program was to be a large set up to help millions of families get out of debt and back on track with their mortgage. Because of the rules and requirements, not as many families have been accepted into it as hoped, leading many families to lose their home as they had originally been fighting against.

Now there is a newer trend starting. These families that were rejected from the Federal program sought help from their institutes and have actually received help from them without having any affiliation with the government. As of early this year, an increased number of banks started to offer these modifications to prevent foreclosure and in fact up to thirty percent of the principle of some of the mortgages has been removed and the payments lowered to assist these families. While this is an effort to help the banks recover more of the money owed, it has also assisted tens of thousands of families already.

For any family who is in need of a loan modification on their home but aren’t eligible to be a part of the Federal loan modification program, it is still possible to receive one through the institution itself. The individual or family can apply with assistance from a third party or can proceed alone and consult with the bank’s officials themselves. While it might take some months to be approved because there is a lot of paperwork and a lot of meetings to attend, it is still well worth trying this route. Banks are actually happier at this point to grant a good modification that suits the home owner instead of foreclosing.

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Options for Proceeding with Loan Modification Applications

There are a number of options to take when applying for a loan modification. The route taken may be done according to what the person is the most comfortable with but sometimes it is done due to lack of knowledge and experience. For anyone who is opting for this route in dealing with their mortgage payments and their inability to make them, here are a few options to consider. It is recommended that before choosing either of them, that a person does plenty of research on them.

Without Assistance of Any Kind: A person can choose to go through this process completely alone, according to the directions on the application or those given by the lending institute. The applicant must be careful doing this as not all lenders consider applications given to them by the client.

Hiring an Attorney or Financial Advisor: This method can be quite costly, but the fees are largely dependent upon the firm or the person that the applicant is directly dealing with. These professionals can give advice right from the start on whether or not a person should even apply for a modification and they can continue giving advice up until the very end. The services rendered may or may not include filling out the paperwork and entering into negotiations. This should be discussed with the professional before agreeing to receive their assistance.

With the Assistance of a DIY Loan Modification Kit: This kit is usually complete with a written guide and some form of software. These are step-by-step guides that take the person right through from the very beginning and many of these systems have live support to give more personal help when needed. This option is much cheaper than hiring third party assistance and still offers the much needed assistance and information that an average person without experience in this field needs to get the best kind of loan modification.

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Obtain Correct Information before Completing that Loan Modification Application

Loan modifications range in their difficulty and it depends on two main entities in many cases – the applicant and the lender. While third party assistance can have a big part of it, the main responsibility rests on the shoulders of the applicant for many reasons.

The applicant first has to find out whether or not they are eligible to apply for loan modification. These requirements sometimes change according to the lender and who they are affiliated with. This means the applicant has to retrieve the information from the lending institute. They can obtain help with this through a third party but again there is a certain responsibility that lies with the applicant.

The applicant must go through the process of finding a suitable third party to help them. There is a choice between attorneys or financial advisors and possibly others. If the applicant chooses the wrong person who is not as qualified as they should be, they run the risk of filing a faulty application. The applicant must do a background check or at least a minimal amount of research on the person or agency that they want to hire.

Even when a third party is involved, it is a good practice for the applicant to know some facts about the process of loan modification so that they can understand what kind of paperwork and negotiations are needed. It also aids in knowing what to expect in terms of results and the amount of time that they might be waiting. Sometimes these cases take weeks but other times they take months.

Being educated about the loan modification process is the most important part of applying. Without it, there is the danger of making mistakes which range from filling out the application wrong to applying when not even eligible. For anyone who is considering applying for a modified loan agreement, it is highly recommended that they read as much credible information as they can before starting.

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Loan Modification Newsflash – Foreclosures are On the Rise

RealtyTrac, a major provider of data for the United States real estate industry, is reporting that the number of foreclosures in the country is increasing. This is something that is going to make the need for loan modification services even greater. This is especially the case among people who are in danger of having their homes be foreclosed upon.

A good indicator of this fact comes from statistics that have been reported from months apart. In March 2010 about 367,000 homes were foreclosed upon. This is compared to the total of 344,000 foreclosed properties in September 2009.

Nevada is the state that has been impacted the most by these foreclosures. About one in every fifty homes is being foreclosed upon in that state. Other states that have been heavily impacted through these foreclosures include Arizona, California and Florida.

The long term changes have been strong as well. According to RealtyTrac the number of foreclosures in the United States has increased by seven percent in the past quarter. In addition to this the number of foreclosures in the first quarter of 2010 is sixteen percent higher than that of the number of foreclosures in the first quarter of 2009.

The increase in foreclosures is something that is causing a great deal of concern among mortgage providers. When foreclosures occur providers will end up losing money due to many things. These include such things as reduced payments, reducing resale values and penalties. This is a major reason as to why banks are closing around the country.

With this in mind the need for loan modification services has become exceptionally high. People are looking to use these services in order to avoid foreclosure. It will not be long until banks begin to comply with these needs and agree to work with supporting more modification services.

Loan Modification Companies Are Becoming Busy

One of the biggest pieces of loan modification news is coming from how more companies that deal with loan modification services are becoming busy. This is thanks in part to recent incentives from the Obama administration. These incentives are making services more appealing to lenders. This is allowing them to promote them to clients.

It is estimated in many parts around the country that the number of loan modification services has increased by at least fifty percent. This is especially the case in states in the western part of the country. These are states where foreclosures and other loan concerns have truly occurred in.

One of the best examples of this comes from recent reports out of Citigroup CitiMortgage. As of March 2010 the lender has worked with more than twenty-two thousand home loan modifications. This is a substantially higher number than that of the fifteen thousand that the lender reported in February 2010.

In addition to this the Making Home Affordable Program is stating that more than a million trial modifications are working in the United States. More than 120,000 have been started so far in 2010.

The Obama administration is a key player in this development. What is happening here is that the administration is working to provide incentives to lenders who will offer successful loan modification services to clients. These lenders are now earning money off of their services. As a result they are becoming more willing to work with borrowers in terms of getting their loan modified.

Because of the increase in loan modification needs more lenders are working to get more loan modification specialists hired. This is so more people will be able to handle the increased demand for this type of service. In addition this is being done in order to reduce the burden that individual specialists might have to deal with. This is so they can focus on individual customers on greater and more personal levels.

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Debt Solutions May Depend on Sources of Debt

There are many sources of debt that may be burdening a family but there are almost just as many types of solutions. When seeking out a method of reducing debt it is important for those individuals who carry the debt to know that every solution may not pertain to them.

For those with high mortgage payments each month that they cannot pay or even with vehicle loans, they may be eligible to apply for a modification. While this type of solution takes time, it is a way to reduce the monthly payment without so much of a concern regarding a home foreclosure or vehicle repossession.

Other types of debts such as credit cards, personals loans or unsecured debt can be eligible for debt settlement. This is a process where the borrower enters into negotiations with the lender to attempt to reduce the original amount owing. There is a wide average of between 20% and 60% of the debt being forgiven. The amount removed depends on the amount of income earned, the level of debt, the number of dependants, amongst others.

There are solutions such as debt consolidation loans as well for those who have high levels of debt, but this does not remove any of it. This simply pays off the debt with a loan and the person pays off the loan according to the agreed terms.

For those whose debt isn’t high enough for either of these solutions or don’t have the particular types of debt that can be applied to these solutions, there is debt management which takes time and counseling but often works when the right professional gives the advice.

To find out which solution is right for a specific situation, it is recommended that a person ask for advice from a professional who will talk to them for free. They are available online at anytime to help and it will be worth the effort in the end.

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Free Loan and Debt Advice Available Online at Anytime

Over the last year there have been many financial advising firms that have been investigated for deceptive practices. They have scammed hundreds and thousands of people out of their hard earned money by taking large fees without giving any results in return. There are still many companies doing this same thing. Some are even asking for upwards to ten thousand dollars before the applicant even submits any paperwork. Unfortunately, this has become a regular practice but that does not make it right. For any and all applicants who are interested in financial advice whether it is concerning debt settlement, loan modification, or other methods of eliminating debt, they should know that they can receive free advice online at anytime without any hidden fees or extra conditions attached.

These companies that offer free advice are fully qualified professionals. They treat each case individually and understand from experience that there is no case that is the same as another one. These experts answer questions and offer guidance without the bill as other companies would give. It is only once they start the negotiations that there are any fees and they document their services and the results that they obtain for each client. There is no obligation to go ahead with negotiations once the advice or guidance is given. These practices are completely legal and are very helpful. Unfortunately there are actually more fraudulent companies than there are legitimate ones now but when a person puts the time into it to find the one that offers free advice, they can really benefit greatly from this guidance.

Anyone who wants to proceed with any type of debt solution is recommended to first obtain advice from a legitimate advising firm. It can save a lot of time and money in the end and the result could put a person back into good financial standing.

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Loan Modification Fraud is Being Fought

Loan modification fraud is something that is becoming more commonplace in today’s mortgage industry. This is not some new kind of loan modification news. It is something that is truly impacting the way how people can pay off their homes. One important part of loan modification news is that a new service that is aimed to stop this fraud is being offered.
Loan Modification Companies
This new service is called the Loan Modification Scam Prevention Network. This is an agency that has been formed along with government and law enforcement agencies to protect people who need loan modifications. This is especially valuable today with the Obama administration working to offer loan modification plans to people who are at risk of losing their homes.

The service is working to offer information to people on how to check for common signs of a loan modification scam. These include things that relate to upfront fees and unsolicited requests among others. These are all signs that no homeowner should forget about.

Reporting services are also being made available. These are services that can be used to handle new fraud complaints. The loan modification companies will work to check on what is happening in a case and look to see if fraud is present in a case.

Previous fraud cases are also posted on the agency’s website at preventloanscams.org. This data will include things that relate to websites and contact information that have been used by different scams in the past. People will be able to use this data to see if certain services are legitimate or not.

This support for loan modification is a welcome piece of loan modification news. It is helping to allow people to work towards getting loan modification services without having to fear any consequences that can occur as a result of a loan modification scam.

Loan Modification Rates are Falling

People who are getting into loan modification plans are doing so thanks to the reduced rates that these loans can work with. A reduced rate can help to reduce one’s monthly payments on a loan. This can work in turn to help with making it easier to pay a mortgage rate off.

The prime rate for a thirty-year mortgage is currently at 3.25%. This value has been the standard in the loan industry for almost a year. More lenders are beginning to agree to handle loan modification plans that are close to this value.

One part of loan modification news to see is that some lenders are working with plans that will allow people to work with loan modification programs rates below the prime rate. Some are willing to go ahead with rates that are as low as 3%.

An important factor to see is that loans these days are much more affordable than they used to be. Today a thirty-year mortgage can work with a rate of about 5.2%. This is much lower than the 8.5% that was used about a decade ago.

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