Archive for the ‘Loan Modification’ category

Is the Making Homes Affordable Mortgage Program Working?

December 28, 2009

The Treasury Department has indicated that 759,000 borrowers who have been put into a trial home loan since the program began in March, only 31,000 have been switched to a permanent loan modification.

Lenders claim that a big problem with borrowers is they are not submitting their paperwork properly. Although, the increased efforts by lenders to help distressed borrowers are showing definite improvements for the more than two dozen lending institutions who are completing loan modifications.  

According to Treasury department figures for December, CitiMortgage and JPMorgan Chase are the most productive lenders, offering trial home loan modifications to 43 percent and 31 percent of eligible homeowners. Surprisingly, the largest mortgage provider Bank of America is the slowest in completing loan modifications at 15 percent of completed applications.

Are you in fear of facing foreclosure of you home? Now is the time to look into a possible loan modification. You may qualify. For more information contact Eddie Perez, Broker-REALTOR, CDPE. Eddie’s market includes Hoboken, Jersey City, Weehawken and Union City.  Eddie can be reached at or 201-344-2886.

Loan Modifications Are Still Not Meeting Deadlines

December 21, 2009

According to recent figures released by the U.S. Treasury Department, since the end of November approximately 4 percent of home owners who requested loan modifications have received them.

Bank of America Corp. has the least amount of completed loan modifications with a total of 98. While GMAC Mortgage had completed the most with a total of 7,100.

Many lenders have stated that its lack of success is in part on the failure of borrowers properly completing the necessary paperwork .

For more valuable information please go to Making Homes Affordable.

If you are struggling to pay your mortgage and are facing a future of uncertainty, a Certified Distressed Property Expert (CDPE) can help you work through any housing related crisis. Don’t live your life with worry about the heartache of a possible foreclosure of your home. Please contact Eddie Perez, Broker-REALTOR, CDPE. As a CDPE, I can make your life easier. Eddie’s market includes Hoboken, Jersey City,

Government Housing Help Does Not Meet Expectations

September 18, 2009

The government set expectations too high earlier this year when money-graphics-2008_870659aPresident Barack Obama launched an effort to help up 7 to 9 million homeowners avoid foreclosure.

Now, reality is setting in. The effort, named Making Home Affordable, appears on pace to make a far smaller impact on the foreclosure crisis than officials had anticipated.

Meanwhile, foreclosures remain extremely high. More than 358,000 foreclosure-related filings were recorded in August, RealtyTrac Inc. reported Thursday. That number was up 18 percent from a year ago and flat from a month earlier.

Following are a few questions and answers about the status of the foreclosure-relief plan.

How many borrowers have been helped by the government programs so far?

As of last month, more than 360,000 borrowers were enrolled in three-month trial loan modifications, out of about 570,000 who received offers. Only about 85,000 homeowners have had their loans refinanced under the Obama plan.

What’s the difference between a refinanced loan and a modification?

When you refinance your home loan, you sign a new contract with your lender. A loan modification involves changes to the existing contract such as lowering the interest rate or extending the term from 30 years to 40.

Why has progress on loan modifications been so sluggish?

The program requires big changes for the mortgage industry. Modifying thousands of loans is much more complicated than collecting payments from borrowers who pay their bills on time. It means hiring and training thousands of workers to handle calls, and reworking computer systems. Plus, the government has changed and expanded the program several times.

Is the Obama administration planning any big changes?

It’s not clear. But industry executives say they want to work on a possible extension of the program to unemployed homeowners. One way to do so would be to give those borrowers a temporary break on loan payments while they look for a new job.

What should I do if I’m having trouble getting help with my mortgage?

If you can’t resolve your problems or you think your mortgage servicer is violating your rights, contact a nonprofit housing counselor or seek legal help. Housing counselors will help negotiate a loan modification for free. Be wary of loan modification consultants that offer to re-negotiate your mortgage in exchange for an upfront fee.

If you want to know whether you qualify for a loan modification, check out the government’s Web site, To find a housing counselor, try NeighborWorks America’s site at

Rates for 30-year home loans remain close to record lows

September 18, 2009

The average rate for a 30-year fixed mortgage was 5.07 percent moneygthis week, down from 5.08 percent a week earlier, mortgage company Freddie Mac said Thursday. Rates, while above the record low of 4.78 percent hit in the spring, are still at attractive levels for people looking to buy a home or refinance.

Rates should stay low for another month or two as government efforts to keep them low remain effective.

But it won’t last forever. Rates will eventually trend upward, as the economy starts to turn around and concerns return about how long overseas investors can stomach massive levels of U.S. debt.

To prop up the housing market and help the economy revive from the worst recession since the 1930s, the Federal Reserve is spending $1.25 trillion on mortgage-backed securities, which has driven down rates on home loans.

That money is set to run out by winter, though some analysts expect the central bank to add more money to the program or allow it to last longer by gradually reducing its purchases.

With rates low, borrowers are seizing  the opportunity. Mortgage applications for refinancing surged 22.5 percent for the week ending Sept. 4 in the biggest one-week jump since mid-March. According to the Mortgage Bankers Association, applications for home purchases were up 9.5 percent.

Despite government efforts to prop up the mortgage market, qualifying for a loan is still tough. Lenders have tightened their standards dramatically, so the best rates are available to those with solid credit and a 20 percent down payment.

Freddie Mac collects mortgage rates on Monday through Wednesday of each week from lenders around the country. Rates often fluctuate significantly, even within a given day.

The average rate on a 15-year fixed-rate mortgage fell to 4.5 percent, from 4.54 percent last week, according to Freddie Mac.

Rates on five-year, adjustable-rate mortgages averaged 4.51 percent, down from 4.59 percent a week earlier. Rates on one-year, adjustable-rate mortgages rose to 4.64 percent from 4.62 percent.

The rates do not include add-on fees known as points. The nationwide fee for loans in Freddie Mac’s survey averaged 0.7 point for 30-year and 15-year loans, 0.5 point for five-year loans and 0.6 point for one-year loans.

For more valuable information please go to I Want to Buy my Home at the Bottom.

As a top Hoboken REALTOR, I can help you through the entire process of buying your first home. If you are looking for assistance in finding the perfect home in Hoboken, contact Eddie Perez at (201) 344-2886 or go to Hoboken Condo Expert.

Web Site Provides Help for Troubled Homeowners

August 28, 2009

It is estimated that almost 6 million Americans are behind on their ywablogimg32mortgage payments or in foreclosure, many more are using savings and retirement accounts to avoid joining those ranks. For the fortunate ones, there is a loan modification in their future.

When borrowers fall behind on their payments, lenders will sometimes modify the terms of the loan to make it more affordable. They might lower the interest rate, eliminating part of the principal or some other financial juggling to avoid foreclosure.

The process often involves a lot of paperwork and lengthy delays.

There are a few Web sites that offer to walk borrowers through the loan modification application process online, including the free

The site delivers a submission-ready document that, along with supporting financial materials, the homeowner must mail or fax to their lender to be considered for a modification.

The site also offers tips on how to better understand the loan modification process and avoid mistakes on applications.

Borrowers, however, should also check their lender’s Web site because many of them, including JPMorgan Chase and Wells Fargo, have applications that borrowers can download at home or fill out online.

And for those who need extra help navigating the process, there’s an array of nonprofit housing agencies with counselors certified by the Department of Housing and Urban Development that provide counseling free of charge

The HomeownerToolbox began in April, the company charged a $99 fee, but eliminated it in July.

The site claims it can predict the likelihood a borrower’s application will get a thumbs up from the lender. The Web site’s “Success Probability Meter” gives a range of success between zero and 100 percent.

For more great information go to First Time Home Buyers Are Leading The Way.

To find out all the benefits and options for preventing foreclosure, contact Eddie Perez, Broker-REALTOR, CDPE or Anoir Redouane, REALTOR, CDPE.  Their market includes Hoboken, Jersey City, Weehawken and Union City.  They can be reached at or 201-344-2886.

The Truth About Loan Modification

June 13, 2009

The past year, of course, has seen an explosion of new loan money-graphics-12.140153431modification and debt consolidation companies. The new industry shares some similarities with the mortgage took advantage of people to maximize commissions. You can almost imagine a scenario where the guy who made five percent commission on your loan and stuck you with business five years ago, when the lure of a fast buck drew plenty of good, honest people but even more people who a prepayment penalty on a loan that adjusted after one month is now on the other end of the phone offering to help you get your loan modified.

Before you pay anyone, check out what might be available to you through Making Home Affordable and talk to a HUD-approved counselor.  Unless you are given reason to believe that a lawyer or a loan mod company can do better for you than you could do working through the program, you might as well save your money.

So, how do you find a reputable attorney and/or loan modification company to help you through the process. First, never go with the first person you talk to. There are companies that charge from $695 to $5,000 and higher to help you out, and it can be a daunting task to choose someone to help you out. You do not need to give each of the companies actual documentation, but you should be forthcoming about your exact scenario including loan amounts for both mortgages, approximate value of your home, and what your level of delinquency is. Your HUD-approved counselor may be able to offer a referral. Once you have talked to three or four different companies, you should have a good feel for how they compare in terms of some of the following important criteria:

What is the upfront fee?

When is the next payment due, or is there a payment plan?

What is the total fee?

Is there an additional fee to have them handle a second mortgage concurrently?

How long until you hear back from their initial review of your documentation?

If the modification is not successful, how much of the fee is refundable and when?

VERY IMPORTANT: How do they define a successful loan modification? Is the bare minimum that they guarantee enough of a savings to actually make the home affordable?

Once they complete an initial review of your documentation, they will move forward by sending your documentation to your lender. Some lenders are offering blanket proposals that are sent out en masse overnight to struggling homeowners, and they simply offer to recapitalize the past due interest, which adds the interest amount to your principal balance and actually increases your monthly payment. Basically, the lender is seeing if you will bite on that offer and start making payments again. There are definitely people out there who are doing good work for homeowners, and if you can’t get a personal referral, at least search for recommendations or warnings about the local person you are dealing with.

Allow me to help you keep or sell your home to stop a potential foreclosure. Contact Eddie Perez at (201) 344-2886,