Foreclosure and Loan Modification Myths and Legends - Why You Can Keep Your Home and Afford It!

Foreclosure and Loan Modification Myths and Legends - Why You Can Keep Your Home and Afford It!

I have been in the real estate and mortgage industries in some way or another for most of my adult life. There is always some phases that the economy is going through that affects how business is done when it concerns buying, selling and mortgaging real estate. Up until 3 years ago the housing industry was just going up and up and up. There were Bankers lending; Builders building; Realtors real estating; and Buyers and Seller buying and selling. When business was good there were always people telling some story about how things were done, and what they were describing that was plain wrong. I've always called it Myth and Legend.In bad times it is much worse.

When the industry is doing badly and it is disorganized to the point of being dysfunctional, that is when the rumor mill winds up to full force. Following are some of the current myths that are being told to people in trouble with their home loan. Troubled borrowers need to know that what their true, real world options are.

MYTH #1: Just today, someone told me that a Lender told him that you had to have a 680 FICO credit score to get a loan to buy a house.WRONG. You Don't have to have a 680 Credit Score or higher, in order to get a loan to buy a home.

There are a lot lenders making loans on homes right now. The terms are better than they have been in two generations. Each Lender judges how much risk they are willing to work with. One way to limit risk is with Credit Scores. The Lender that my friend was talking to actually does require a 680 credit score. I know of one that is requiring a 700 score.

My two Lenders are requiring 600 scores right now. So there is the myth. My friend believed that if one Lender required a 680 Score, then, all of the Lenders were requiring it. He thought it was standardized. It is not. Lenders have different personalities, just like people. If they are not rock solid they can't take risk, so they require a higher score. If a Lender has too much money to lend, then they will take a bigger risk by loaning to a person with a lower score. The rules of lending are the same for all banks, but each bank can ask for their own terms for which they will make a loan.

MYTH #2: The Lender wants to take my house, so that they can make money on it.WRONG. The Lender cannot make money on your house. It is against the law. As a matter of fact, in the current economy they are absolutely certain to lose a lot of money if they take your house. Foreclosure is very expensive for the bank and once they own your home, they have to sell it in order to try to get back the money that they loaned to you in order for you to buy it. If you watch the news, then you know that home sales are at historic lows. There are too few Buyers for too many homes that are for sale right now, due to the huge foreclosure rate. There are just simply too many homes on the market. Homes are too hard to sell right now. What the Lender really wants is to help you figure out how to keep your home and remain current. That is how they can make the most money.

MYTH #3; Many people believe that once your Lender has begun foreclosure on your home, that this foreclosure can't be stopped.WRONG. I have gotten Lenders to suspend foreclosures with a phone call, just one day before the foreclosure date. I had to convince them that my client was going to file a modification application for the Lender's review. They were happy to stop the foreclosure long enough to find out if the borrower might be able to pay on their loan in the right circumstances. Mainly for the reasons I included in Myth #2.

MYTH #4: Since I'm in the business of counseling home owners on what to do if they are about to lose their house because they have payments, I'm getting a lot of questions concerning the demand letter they have received from their bank. It shows that they have to pay all missed payment amounts, late fees, attorney fees etc. So, someone who lost his or her job is being told they need to pay thousands of dollars to get current.

These are people who are telling me that they think they have to pay all of those back payments to get a Mortgage Home Loan Modification.WRONG. You will not have to pay your Lender up front for all of the back payments you missed. You probably won't have to pay the back late fees.

What will happen is that you will make a loan modification application to your Lender. You will need to prove that your situation has changed or will change and that you will be able to make your payment. If you can't, but you could make a lower payment, the Lender will probably reduce your interest rate to lower your monthly payment to an amount that you can afford.

So, you see, if you are in a jam on your house and you want to save it, but you don't think you can, you are probably wrong. You can save your home. It is a simple process, but it is very to difficult to do if you are not familiar with the system. You can stop your Foreclosure and get a Loan Modification yourself if you are comfortable with that. But, if you would rather have experienced help in negotiating with your Lender, then call one of the companies that specialize in this type of work. Get references from them and call the references. Make sure they tell you how much it will cost and what they are promising. Get a written promise that if they don't save your home that you will get any money back that you have paid.

Please visit the site concerning stopping foreclosures and getting Loan Modifications at:

www.mortgagepaymentmodifications.com

POST COMMENT

Earth's Engine and the Rock Cycle How to Find the Best and Most Affordable Social Network Script Garmin Zumo 665 - Best Gps For Motorcycle Tips in Choosing Ride on Pedal Cars for Your Kids Unfinished Furniture Very affordable Options Engineered Wood Flooring Houston Overhead Garage Doors Offers A Variety Of Wood Garage Doors In Houston Believe in Belize Paradise: A Look at Your Own Personal Vacation Haven Belize Deals: How to Get the Best Vacation Bargains for this Tropical Paradise Cpa Exam Review: The 10 Steps In Planning An Audit Common Causes Of Car Accidents: 5 Ways To Minimize The Risks Logan Airport Parking - The Best Way To Pinch Pennies On Airport Parking Payments Vacations in India