Frustrated with all the people I am talking to about "LOAN MODIFICATION"!

Caller: I am trying to find a way to lower my payments, our loan currently is going to adjust by 25% come November 08′. At this point I am already having a hard time paying the mortgage, what should I do. I heard about "Loan Modification" and have been trying to do that for two months but am not getting anywhere? I also talked to someone wanting to charge me $3000.00 for doing this for me.

Ken Go: First of all, I am repeatedly telling everyone that you should not pay anyone to help you deal with your lender or do a "Loan Modification". There are government agencies and non-profit organizations that will help you do it for FREE. The key question here is whether you are currently late on your mortgage when you are calling your lender for a "Loan Modification". If you are still paying them, they will more than likely not agree to help you, because currently there are about 7-8 thousand people going into foreclosure everyday nationwide. So, they will prioritize the customers that are already late, but don’t get discourage because you should still try and see if they will agree. Another thing to consider is if you can qualify for your own loan, meaning if you add up all your mortgage payments including taxes and insurance, revolving debts and installment debts, is your family income double that amount? If not, they are again most likely going to decline your request. They will tell you that you cannot qualify for your own loan, if they help you; they are thinking that it will be temporary and you will be back in the same situation 6 months down the line. So, be honest and explain to your lender how you are able to afford the payments, if you have relatives living with you helping pay the mortgage, disclose all your part time jobs. Lastly, remember to try and complete the financial package with a hardship letter explaining all your problems. Remember, these lenders are overloaded with call all day long and try to be nice to get your way. If will get frustrating that is why you have to keep trying. Also, if you put yourself in their position, they can tell you that you have signed a legal and binding contract when you took that loan out, when you cashed out money to buy your new car, when you did your home improvements or paid off your other debts that you agreed to pay them back. So, they really don’t have to help you but might. So, we are at their mercy and have to do things their way and hope for the best.

Caller: I can’t refinance my house and my loan payments are going up to a point that I cannot afford it anymore. What should I do?

Ken Go: This is a growing epidemic that is out of proportion and I get calls like this all day long. My suggestion: get your finances together be honest with yourself and see what your actual monthly expenses are, include everything even your snacks, your small vices everything. Then put down how much you are netting from your pay stubs and you will be surprise to know that you are just living on the edge every month with your paycheck. If you cannot afford the house, then you have to really decide on other options to keep yourself afloat. See yourself six month to one year from now, even if you have a fixed rate loan, can you really afford the payments? If not, then be honest and sort out options. Treat this home buying experience as a business, its not personal definitely not sentimental.
Caller: Mr. Ken Go, you are claiming that you don’t charge anything for the advice and the appointment. Right there I might have to be cautious because you said yourself nothing is free in this world?

Ken Go: Great question! I spend about 15-30 minutes explaining to a customer all these things about loan modification. I have been in the business for over 20 years and fortunately have many loyal customers that continue to refer me with clients who might want to buy,sell or refinance a house. If you are following my articles, about two years ago, I have been writing articles about "NO DOWN PAYMENT LOANS’ that the borrowers should not do that because its too risky, I have telling my callers not to buy homes since close to two years ago. Why do I do that, because I honestly find satisfaction and a sense of pride doing that? I feel that I want to do that to sort of give back to the world the blessings I get. Do I need to make money, of course I do. Let me ask you something, if I give you a good advice and honest one, later if you need some financial or real estate services who would you think about calling? Hopefully Ken Go, right? That is pretty much what I asked for are referrals on people you know that might need my services. I think that is more than fair, my business is a referral business. I do get a lot of thanks and promises of referral from my callers and basically being in this business this long; I can wait and will continue to give free and honest advises to whoever might seek for it.

IMPORTANT NOTE: Countrywide and Bank of America is current workingout a Rescue plan for their customers only. This program will allow them to lower the balance and payments, if you qualify. Currently I am studying this program and will inform you of the details as soon as I gather them. It wont be in effect till December 08.</p>

Bankruptcy and Forcle question ……?

I went bankrupt a year ago, but contiued to make payments on my house. Now you can not afford the afford to make payments on my mortgage loan. I know that the house was part of the bankruptcy, but as long as I stayed current on the payments that would be fine. So my question is … If I stop making payments, how long before I foreclose on my house? “I can pack the things I want and move into a rental and that the agreement with lenders home mortgage? I do not think that can come after me for money because it was part of the bankruptcy. I live in the state of Washington and I know that usually takes 90 to 120 days to leave, but I was wondering if it would be faster due to bankruptcy. Basically any information about my situation would be helpful and refinacing and / or continued payment is not an option. I have to close. Please only people knowledgeable about the subject response. Thanks.

Find an investor who can work a short sale with the lender. There really is no reason to leave the house yet. Stay and save your money for now. But make sure it was included in the BR however. There is also a deed in lieu of foreclosure where you just get out of the house claim to the lender to save costs foreclosure. Or you can simply walk away and ignore it. But talk to your lawyer for the BR and view your credit report before deciding. If the BR has been discharged, no I can see you will not be on the hook for the mortgage. Good luck.

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