Contra Costa Real Estate Resource
Educating Buyers, Sellers and Homeowners in Contra Costa county, California
Educating Buyers, Sellers and Homeowners in Contra Costa county, California
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Loan Modification
The California Department of Real Estate has issued a Consumer Alert regarding the payment of advance fees for loan modification services.
Your mortgage lender may agree to modify the terms of your mortgage loan. Your loan could be permanently changed by adding missed payments to the existing balance, changing the interest rate, making an adjustable mortgage a fixed-rate mortgage or extending the number of years you have to repay your loan. The willingness and ability to modify your mortgage varies by lender and typically requires income and asset documentation.
California's new Foreclosure Prevention Act gives homeowners additional time to work with their lender for a Note Modification.
Some lenders have created loan modification programs for borrowers that meet specific parameters:
Citigroup / CitiMortgage
Countrywide Home Loans (now Bank of America)
If you are a Countrywide customer in California with a sub-prime OR Pay-Option ARM program,
read the details of the Settlement with the State of California and your additional loan modification
options.
IndyMac Federal Bank
JPMorgan Chase / Washington Mutual / EMC Mortgage Corp
JP Morgan Chase has opened a local Note Modification office located at 5050 Broadway, Oakland, CA.
Call for an appointment: 510-420-2366.
Wachovia: Wachovia doesn't have an internet link. Call Customer Service at 866-642-9402. Explain that
you have a hardship situation, they will transfer you to Loss Mitigation.
Wells Fargo
You should also consider contacting the Homeownership Preservation Foundation which operates a Homeowner's HOPE Hotline: 888-995-HOPE. There is no cost to homeowners for contacting a non-profit advisor.
Forbearance.
When facing a temporary change in circumstances, your lender may allow you to reduce or suspend payments for a short period of time and then agree to another option to bring your loan current. A forbearance agreement is often combined with a reinstatement when you know you will have enough money to bring the account current at a specific time. The most common forbearance arrangement involves a repayment plan in which you agree to resume your regular monthly payments plus a portion of the past due amount until you are caught up.
Debt Restructure.
If you want to keep your home and need help restructuring your budget to regain control of your finances, contact a HUD Approved Housing Counseling Agency for default resolution counseling.
Sell your home.
If you have equity in your home (money left over after all loans and encumbrances have been paid), you may sell your home without lender approval and may even receive cash from the sale. If you owe more than the property is currently worth, your lender may agree to a Short-Sale and accept less than the amount owed. Read this before you sell your home as a Short-Sale.
Deed in Lieu of Foreclosure.
A Deed in Lieu of Foreclosure is when you give the property back to the bank rather than wait for the foreclosure process to be completed. Some lenders will consider this immediately, some lenders will consider this option only if the home has been For Sale for at least 90 days and some lenders will not consider this option at all.
Mortgage Forgiveness.
It is important to know that any portion of the mortgage that is unpaid either with Lender agreement or through a foreclosure is potentially taxable as income unless you qualify under the Mortgage Forgiveness Debt Relief Act or you are insolvent according to IRS Form 982. Please consult with your Tax Advisor.
Your mortgage lender may agree to modify the terms of your mortgage loan. Your loan could be permanently changed by adding missed payments to the existing balance, changing the interest rate, making an adjustable mortgage a fixed-rate mortgage or extending the number of years you have to repay your loan. The willingness and ability to modify your mortgage varies by lender and typically requires income and asset documentation.
California's new Foreclosure Prevention Act gives homeowners additional time to work with their lender for a Note Modification.
Some lenders have created loan modification programs for borrowers that meet specific parameters:
Citigroup / CitiMortgage
Countrywide Home Loans (now Bank of America)
If you are a Countrywide customer in California with a sub-prime OR Pay-Option ARM program,
read the details of the Settlement with the State of California and your additional loan modification
options.
IndyMac Federal Bank
JPMorgan Chase / Washington Mutual / EMC Mortgage Corp
JP Morgan Chase has opened a local Note Modification office located at 5050 Broadway, Oakland, CA.
Call for an appointment: 510-420-2366.
Wachovia: Wachovia doesn't have an internet link. Call Customer Service at 866-642-9402. Explain that
you have a hardship situation, they will transfer you to Loss Mitigation.
Wells Fargo
You should also consider contacting the Homeownership Preservation Foundation which operates a Homeowner's HOPE Hotline: 888-995-HOPE. There is no cost to homeowners for contacting a non-profit advisor.
Forbearance.
When facing a temporary change in circumstances, your lender may allow you to reduce or suspend payments for a short period of time and then agree to another option to bring your loan current. A forbearance agreement is often combined with a reinstatement when you know you will have enough money to bring the account current at a specific time. The most common forbearance arrangement involves a repayment plan in which you agree to resume your regular monthly payments plus a portion of the past due amount until you are caught up.
Debt Restructure.
If you want to keep your home and need help restructuring your budget to regain control of your finances, contact a HUD Approved Housing Counseling Agency for default resolution counseling.
Sell your home.
If you have equity in your home (money left over after all loans and encumbrances have been paid), you may sell your home without lender approval and may even receive cash from the sale. If you owe more than the property is currently worth, your lender may agree to a Short-Sale and accept less than the amount owed. Read this before you sell your home as a Short-Sale.
Deed in Lieu of Foreclosure.
A Deed in Lieu of Foreclosure is when you give the property back to the bank rather than wait for the foreclosure process to be completed. Some lenders will consider this immediately, some lenders will consider this option only if the home has been For Sale for at least 90 days and some lenders will not consider this option at all.
Mortgage Forgiveness.
It is important to know that any portion of the mortgage that is unpaid either with Lender agreement or through a foreclosure is potentially taxable as income unless you qualify under the Mortgage Forgiveness Debt Relief Act or you are insolvent according to IRS Form 982. Please consult with your Tax Advisor.
Wendy Cutrufelli
Alain Pinel Realtors
Direct: 925-917-1135
Wendy@apr.com