Loan Modification ~ Don’t Be A Victim
There is constant talk that the economy is getting better. However, even today there are many that are losing jobs, taking employment with a lower pay scale than previously and still unable to afford their mortga…
Short Sale vs. Foreclosure ~ How it Affects Your Credit Score
Many homeowners are still facing tough financial situations. Although there have been positive reports on housing and employment, families are still struggling in todays economy. San Diego has been one of the hardest hit and with the announcement last week of General Dynamics laying off over 1200 employees from NASSCO in July, many will still face the challenge of meeting obligations.
There are many misconceptions as to which may affect your credit score in a more detramental way. Short 
Sale or Foreclosure. According to Fair Isaac, the developer of the software that calculates a score, if the mortgage debt is delinquent, the delinquincy is what causes the credit score to decrease. Both a Short Sale and a Foreclosure are considered “not paid as agreed” and will be scored accordingly and equally.
If you are faced with the potential of being in a position of not being able to make your mortgage payment, the first step would be to contact your lender immediately to see what the alternatives are. Many lenders are participating in new government backed program which was enacted as of April 5, 2010 for Loan Modifications and Foreclosure Alternatives.
If you need assistance or have questions on Loan Modification please give me a call. If you and your lender have determined a Short Sale as the alternative, I am available to assist you through the process.
Making the Home of Your Dreams A Reality. As your Agent of Possibibility it is my intent to make your home buying or selling process a smooth one!
Please feel free to Subscribe to All Possibilities Throughout San Diego or contact me at 619-838-4408.
Loan Modification is not always as it Appears! I was so surprised last week when I received a call from a friend of mine regarding her mother’s trying times. As a senior who is self employed, the economy, health and family issues have created a difficult financial situation.
Mom has been living in this home for over 30 years. She has raised her children, started a business and is now helping raise her grandchildren in this home. Unfortunately, with the market changes, she has 
negative equity in the home. Recently Mom has had to have surgery which has caused her to be unable to work. One of her children has moved into to help with the monthly bills and her recovery but is still struggling to make the mortgage payments. Sounds like Mom is a perfect candidate for a Loan Modification!
For many months Mom has been making partial payments and the lender has been accepting them! Mom received a call from the lender last week stating don’t bother to make any more payments, we are starting the foreclosure process. WHAT? No Loan Modification attempt? They asked about Loan Modification and were told they do not qualify. But why? You do not meet the guidelines. With more prodding and pushing this is the only answer they were able to get.
Confused, they called to find out what more they can do. We determined that the loan on the property is not currently serviced by FNMA or FHLMC which are the servicers that are required to participate in the Home Affordable Modification Program. (HAMP) Most other servicers are participating, however, see the Making Home Affordable Website for numbers to call to find out if the servicer is currently participating.
With that information in hand, Mom contacted a free HUD-approved housing counselor to see if she would still be able to qualify for the HAMP. After meeting with the HUD counselor, Mom found out the 2nd that she has on the property is not showing on her credit report and the debt is not being counted against her 
income! So it currently looks like she has $100,000 of equity in the property that is not really there, and a hefty payment that is not currently being counted as part of her debts!
The counselor says there is hope! Mom still may be able to get a Loan Modification! The counselor referred Mom to an elder advocate that will be able to negotiate more than the HUD counselor can! By not giving up and not taking “NO” for an answer may help Mom keep her home!
Loan Modification is not always what it appears! If you have been told by your lender that you do not qualify for a Loan Modification, be sure you take the time to explore all of the options before giving up!
Making the Home of Your Dreams A Reality. As your Agent of Possibibility it is my intent to make your home buying or selling process a smooth one!
Please feel free to subscribe to my blog or contact me at 619-838-4408.
Stephanie Reynolds 
Colleen Mitchell 