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The Mortgage Conundrum
Based on Dodd Frank regulations, access to mortgages for people of all ages is constrained by the ATR Rule. This rule requires that a borrower must demonstrate the ability to repay the mortgage. We no longer have the easy to qualify mortgage types readily available and this has created the Conundrum. Many people are unable to get new loans and many more who have existing loans are unable to refinance to take advantage of the lower rates. This has strapped people into high cost and unscrupulous loans from the past and has hit retirees and seniors especially hard. With...
October 14th, 2015 | Reverse Mortgage, HECM Reverse Mortgage, Financial Planning, Loan modification, Mortgage Loan Process, The Mortgage Conundrum
An Innovative Means of Curing Mortgage Delinquency
For the past several years, all the talk has been about avoiding foreclosure with loan modifications and short sales for underwater properties with distressed financial situations. One area that has been over looked or maybe just absent from the headlines has been delinquent homeowners with home equity. Many of these homeowners are delinquent on their mortgages for the same reasons as underwater borrowers. They have lost their jobs or suffered some kind of financial set back that has forced them into delinquency. Unfortunately, for those with home equity, the lender has no skin in...
September 10th, 2013 | Loan modification, HECM Reverse Mortgage, Short Sales, Reverse Mortgage, modify your loan with your lender, home equity access, foreclosure, An Innovative Means of Curing Mortgage Delinquency
Modification - Forbearance follow up
In a July post, I briefly explained forbearance as it relates to the Loan Modification process. I suggested caution and thorough consideration when your lender makes this a requirement of your requested Loan Modification. I also noted that even if you complete this process you should beware that your lender is not obligated to offer you a final Loan Modification. Anyone that has ever spoken with me on the subject will know that I am not a proponent of modifications. I prefer short sales where we sell the property and mitigate the debt. This provides a fair and beneficial p...
August 15th, 2013 | Short Sales, solutions for underwater properties, Loan modification, Modification - Forbearance follow up
Loan Modification - Understanding Forbearance
The Loan Modification process can be tricky. I personally do not endorse modifications because I do not believe that they are fair or equitable for the borrowers. Having said that, the process is fraught with risk and you need to understand what you may be getting into if you choose a Modification over a Short Sale. Forbearance is the lender’s test of your character in their words. Why should the mighty lender stoop down and bequeath you with a modification when you signed up for the debt. You owe them money. This is the lender’s position whether y...
July 16th, 2013 | Short Sales, Loan modification, Loan Modification - Understanding Forbearance
The Problem with Loan Modifications and Lenders Addressed.
People often complain about the difficulty in obtaining a modification of their loan to achieve a more affordable payment. The fundamental problem that exists is that your mortgage lender that you make monthly mortgage payments to is often not the investor behind your mortgage. The investor or otherwise real owner of your mortgage is another entity or consortium altogether. I would like to describe the conflict that often interferes. The lender or servicer that receives your monthly mortgage payments can be characterized as the toll booth. They handle the month...
March 4th, 2013 | Loan modification, solutions for underwater properties, Debt Mitigation, modify your loan with your lender, Short Sales, The Problem with Loan Modifications and Lenders Addressed.
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