https://resultsadvisors.com Wed, 23 May 2012 19:39:53 +0000 en hourly 1 http://wordpress.org/?v=3.3.1 https://resultsadvisors.com/how-is-the-whole-loan-modification-thing-going/ https://resultsadvisors.com/how-is-the-whole-loan-modification-thing-going/#comments Mon, 31 Oct 2011 02:43:37 +0000 admin http://newsite.resultsadvisors.com/?p=438 Continue Reading]]> Name               Started       In Trial  Aged Trial  Cancelled Trial  Permanent Mod  Cancelled Mod Overall            1,639,282  92,051    23,014      760,796              657,044               106,027 BofA                401,251     26,530      9,350         217,120              127,355               20,856 Chase               256,560     17,223      3,485         128,010                 89,231               18,611 Wells Fargo     234,666      11,996     1,476         118,006                  91,392              11,796 Citibank           130,347       3,436      1,791         72,287                 46,634                6,199 One West        53,699       3,737          236           20,773                 26,006                 2,917 AHMSI            33,588        2,224          538           4,598                  22,585                3,643 Failure Rates: Overall:           53% BofA               59% Chase             57% Wells Fargo    55% Citibank         60% One West       44% AHMSI           25% Notes:  1.  This table does not include all HAMP servicers; only the major players. 2. Bank of America numbers include Countrywide loans. One West and AHMSI were included for two reasons. First, OneWest has a nasty reputation of being terrible to deal with since Uncle Sugar Daddy basically indemnified them for losses when they took over IndyMac Bank; so the fact they are below 50% for their failure rate was a nice surprise. AHMSI is included because it filed for bankruptcy in 2007 and was purchased last year by Wilbur Ross & Co., a hedge fund known for corporate turnarounds. Their figures give you some insight on what is possible in loan modifications when a diligent effort is made. The depressing point of the loan modification program is that the failure rate of the too big to fail bank mortgage departments runs between 55 and 60%;  not encouraging at all. This is especially a problem when an “aged trial” loan is rejected for a permanent modification; by then the homeowner will have made a year or more of payments only to be denied for a permanent modification and again face foreclosure.]]> https://resultsadvisors.com/how-is-the-whole-loan-modification-thing-going/feed/ 0 https://resultsadvisors.com/the-new-harp-rules-and-what-you-should-know-about-them/ https://resultsadvisors.com/the-new-harp-rules-and-what-you-should-know-about-them/#comments Mon, 31 Oct 2011 02:41:51 +0000 admin http://newsite.resultsadvisors.com/?p=436 Continue Reading]]>

Your mortgage must have been issued before May 31, 2009.

 

1. Your mortgage must have been sold to Fannie Mae or Freddie Mac. If you are unsure of this, go to these websites: www.fanniemae.com/loanlookup

Or ww3.freddiemac.com/corporate to see if your loan is owned by one of them.  

1. You cannot have previously refinanced under HARP, unless you fit a very narrow Fannie Mae window for a previous refinance.

 

1. The current loan to value ration must be greater than 80%.

 

1. There is no LTV cap. The prior 125% LTV cap has been eliminated.

 

1. The borrower must be current on the mortgage at the time of the refinance, with no late payment in the past six months and no more than one late payment in the past 12 months.

 

1. The new program will become effective in early 2012. HARP itself has been extended to December 31, 2013.

 

1. If you are refinancing from a fixed rate mortgage to an adjustable rate mortgage, the loan to value ratio is 105%

 

1. Condominiums remain eligible for refinancing, assuming the above criteria are met.

  A major shift has been to shortening mortgage terms. Previously, HARP loans were refinanced into 30 year loans. New shorter term loans supposedly will help borrowers pay down their mortgages and build equity more quickly. Also, the interest rates on HARP loans for shorter term loans are lower than for 30 year loans, which will impact the monthly payments.   Analysis:   Like the previous HARP program, there is no teeth to HARP II. Making HARP loans continues to be voluntary on the part of the lending industry. According to a Bloomberg article, most lenders don’t foresee making these loans, because they are considered high risk. In addition, with Fannie Mae and Freddie Mac being more and more cautious, lenders are worried about “claw backs” in the event a HARP loan goes bad.   Industry estimates are that about 600,000 loans will meet the new criteria and be eligible for HARP II.   The biggest disqualifying factor remains the loan history. Homeowners who approached their loan servicers about a loan modification, are uniformly told that if their loan is current there is no chance of a loan modification; most are told to be 60 to 90 days late. This means that if you attempted to obtain a loan modification before HARP II, you are not eligible for HARP II and have to continue on the loan modification or short sale path.   Until HARP is modified to allow a way out for homeowners who are facing loan modification hell, it is going to be far less effective than Washington and the news media hope.]]> https://resultsadvisors.com/the-new-harp-rules-and-what-you-should-know-about-them/feed/ 0