California Mortgage Rate Reduction Programs

MORTGAGE RATE REDUCTION PROGRAMS
Many home owners with the 2/28 and 80%/20% purchase loans are having a pay rate adjustment of 28% to 60% and many a homeowner can't handle the new payments and will not qualify for a new mortgage loan.
They often have just one chance to keep their home: a mortgage pay rate reduction. Mortgage rate reduction programs are not simple to get approved.
The key to your loan modification is constructing a financial plan that you and all your lenders can approve and, most importantly, that you are able to afford. We work with you to compose a hardship letter that describes why the problem occurred and, the good news, why it won't happen again.
In a pay rate reduction plan, you construct a financial plan that considers your current income and details a list of your monthly expenses. We make recommendations to improve your budget and cash flow (on paper and in real life) so your income exceeds your total monthly expenses each month.
WARNING :
Home owners that try to work directly with their lender have a high failure rate. Even attorneys don't represent themselves.
We cannot help you if you have not solved the problem that caused the delinquency. Often we can help you solve the problem by restructuring your finances and get you into a mortgage pay rate reduction plan.
We cannot accept you as a client for negotiations until the problems that caused the delinquency have been solved.

The lender wants to see a provable relationship between your income and expenses that will ensure them and the federal regulators that you will be able to make your payments in the future. But don't worry, we can help put a workable plan together for you as long as you have some income to work with.
To get started on a Loan Modification case, simply forward us your name,telephone number and email in the boxes above . We will follow up with you on what documents we need.
Many home owners who purchased their home with 100% financing utilizing an "80/20" type purchase loan had intended to simply refinance out of their existing loan at some point and into a more affordable single mortgage loan. The sharp and sudden housing decline took everyone by surprise and the option of refinancing out of the over-burdensome 1st and 2nd loans has disappeared (if it ever existed in the first place). Accordingly, if the borrower in this type of situation would like to keep the property, they must find some relief. There are a few options borrowers should be made aware of:
  1. It may be possible to approach the lender on the first mortgage for a loan modification or workout to reduce the interest rate, and accordingly, the monthly payment.
  2. It may be possible to approach the lender on the second mortgage and offer a "lump sum" settlement amount for them to re-convey the note back to the borrower (buy out the second).
Either of these two options may ease the burden of an unaffordable purchase money loan and allow for the borrower to retain the property. These options may be utilized in conjunction with one another to achieve a total loan makeover. This type of loan modification is essentially similar to the refinance you were probably promised, but with the same loans, and without paying new loan origination fees.
MORTGAGE RATE ADJUSTMENT PROGRAMS

Another common scenario is one where the borrower is in a mortgage product that "adjusts" after a period of time. These types of loans are commonly referred to as "2/28" or "3/27" loans with the first number indicating the number of years the payment will be artificially low (interest only or negative amortization), and the second number indicating the remaining years the borrower will have to pay back on a full interest plus principal payment. Most borrowers who were put into these types of mortgage products did not even realize their loan would ultimately be adjusting, they focused only on the initial low (artificial and unsustainable) payment, and ignored the large adjustment that would take place after that initial period expired.
Many borrowers in these types of mortgage products are now, or soon will be, facing an adjustment that will double or even triple their monthly mortgage payment. Such a set of circumstances generally results in foreclosure, however, loan modification may be an option.
Generally borrowers like the ones described above, have one realistic chance to stay in their home, a Mortgage Rate Adjustment Loan Modification. Mortgage rate adjustment programs are not easy, A "re-amortization" of the principal of the loan (over a new 30 or even 40 years), combined with a permanent interest rate reduction into a fixed rate, gives borrowers a real chance of success in keeping the property. This type of loan modification is not unusual, lenders are now prepared to consider all such proposals so long as they are submitted properly with supporting documentation and a complete loan modification package which specifically meets the lenders current loan modification guidelines. Additionally, the loan modification proposal discussed above must be submitted to the correct "decision making" department within the organization. It is a common mistake for borrowers to attempt to submit their requests through the "collection" department, which can serve to only make matters worse if that is not the correct procedure.
The key to your success is constructing a financial plan that you, the borrower, can truly afford based objective and verifiable criteria (paystubs, bank statements) and properly explaining events which led to the loan modification request from the beginning. Additionally, we must take special care to "fit" into a program that is being offered by your lender, or comply with lender guidelines in order for your lender to approve the loan modification request. We will work with you to, whenever possible, anticipate problems or issues your lender may have with the loan modification request, and to compose a hardship letter that describes why the problem occurred and how your financial circumstances have been resolved.
WARNING:
Home owners who try to work directly with their lender have a very high failure rate because they do not take the time to understand the nuances of a proper loan modification proposal and what roadblocks they may be facing and how to overcome them.
WARNING:
We cannot help you if you have not solved the problem that caused the delinquency. However, we can often counsel you on solving the problem by restructuring your finances or suggesting ways to acquire additional monthly income that lenders will consider when making a mortgage rate adjustment loan modification decision. We cannot accept you as a client for negotiations until the problems that caused the delinquency have been solved.
Please don't be discouraged, there are many ways to get around just about any issue you may be facing and put you in a position to be strongly considered for a mortgage rate reduction, second mortgage payoff, or mortgage rate adjustment modification. McFarlin & Geurts loan modification attorneys are available to speak with you about the facts of your specific circumstances.

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