This calculator provides a good idea about what monthly reduction you might be eligible for on your primary mortgage payments, in accordance with the Making Home Affordable program. Under the Home Affordable Modification program, the target maximum amount for your mortgage payment (or mortgage debt-to-income) should be 31% of your gross (pre-tax) monthly income.

This Payment Reduction Estimator will determine what your current mortgage debt-to-income is and how much your monthly payment may be reduced if you qualify for a modification.

Do not include any payments on your second mortgage. You may have taxes and interest in escrow added to your monthly payment already, so be careful to count taxes and escrow only once.

Total Monthly Payment on Your First (or "primary") Mortgage Be sure to INCLUDE principal, interest, taxes, insurance and homeowners association dues if applicable. If you need help, click here.
Enter Your Gross Monthly Income This is the income of all borrowers who signed your mortgage BEFORE taxes and any adjustments. If you need help, click here.
CALCULATE
This is Your Current Debt-to-Income (DTI) Level		%
Target DTI under the Home Affordable Modification		31%
Potential New Monthly Payment If You Qualify		$
Potential Monthly Payment Reduction If You Qualify		$

Note: to protect your privacy, this site will not record your information.

Related posts:

1. Simple Loan Modification Evaluator
2. What Can I Expect If I Get Approved For A Loan Modification
3. My Mortgage Is Not Behind – Can I Still Get A Loan Modification?

If often seems like banks and lender prefer to foreclosure on people’s property, rather than moving forwards with a Loan Modification. Is this actually true? Why will a bank foreclose, and not perform a loan modification?

An increasing number of American homeowners are in desperate need of a home loan modification, to prevent foreclosure. Phoenix, and Tucson Arizona have been especially hit hard by the housing crisis, and many people are in default on their payments. Perhaps this is due to hardships such as losing your job, or simply because they were victims of predatory loans, and now their ARM loan has adjusted to a payment that they can no longer afford.

Perhaps you have discovered for yourself that mortgage lenders are being difficult when it comes to modifying your mortgage. The truth is that foreclosures do not necessarily benefit banks, and it is generally preferable for them to modify someone’s mortgage. Consider though that the lender does not want to go through the process of loan modification, with it’s associated time and costs for them, only to discover that the homeowner still cannot make their payments. They therefore, have to ensure that upon a modification the homeowner will truly be able to make their payments consistently.

Right now loan servicers are overwhelmed with the thousands of loan mod requests that they have been receiving from all over the country. This is one of the main reasons why your lender may appear to be moving slowly on your case. Processing these requests, along with the current backlog is quite time consuming. While some loan modifications process quite quickly, others have taken up a whole year to complete.

We have negotiated loan modifications successfully for our clients, that have been approved in well under 30 days, with signifiant payment reductions for the homeowner. The entire process can take 30-90 days to complete, but realize that during this time you can negotiate affordable payment arrangements even prior to being approved for a modification, through Forbearance Programs for example. The economy is still getting worse, and more people continue to lose their jobs, which could impact processing times moving forward.

In order to be approved for a loan modification, your lender will review your entire financial situation, and may demand to see documentation such as; pay stubs, bank statements, tax returns, and will also examine your credit history. For most people the negotiation part is the most difficult piece of the process. Lenders may ask you to answer simple financial questions, but beware they may use the data to disqualify you, if they think that you are a poor risk for a modification. It is very important that you fully understand the process prior to starting your negotiation, to avoid such things as false accusations, and miss calculations made in judgement against your case by your lender.

Once a lender initiates foreclosure proceedings on a property they will incur quite a number of expenses, including legal fees for the filing of the Notice Of Default. In addition to these attorney fees, they have to arrange for the house to be sold at auction. If you have received a Notice Of Default, or Notice of Foreclosure, then realize you can still save your home, but you must act quickly!

It is in both yours, and the lender’s best interest to find a way for you to stay in your home. This is especially true in todays housing market, where it is less likely that they will be able to sell the home for a suitable amount, and do so in a timely manner. I hope that you have gained some knowledge in this often confusing area. It is too easy to find yourself paralyzed with worry after receiving a Notice of Default. Act quickly, gather your financial information. Speak to someone who can advise you on the process, and follow up with your lender as much as possible to ensure that your case gets processed as fast as possible.

Related posts:

1. What Can I Expect If I Get Approved For A Loan Modification
2. Complete Loan Modification Service
3. My Mortgage Is Not Behind – Can I Still Get A Loan Modification?

Once your lender has agreed to provide you with a Loan Modification, then they will present you with an offer to help with your specific situation. You should then take the time to carefully read and understand all the terms, before completing the documentation. There are many options which the lender may choose from to make your home loan more affordable. Listed below are some of the options that the lender may present to you.

Interest Rate Reduction

In order to accommodate a homeowner lenders sometimes offer a reduction in the interest rate of their current mortgage thus reducing the monthly payment amount. This is a common result especially in cases of and adjustable rate mortgage that has reset at a higher rate that generated a payment that was unaffordable to the homeowner.

Principle Reduction

In cases where an interest rate reduction is not enough to generate an affordable payment the lender my grant a principle reduction on the existing loan. This result is a less common one and more difficult to obtain. In short it is a “something is better than nothing” alternative for the lender that occurs in areas that home prices have fallen a great deal. It is sometimes better for the lender to keep a smaller performing loan than it is to pay the expenses of a foreclosure and resort to selling the home for a lesser price than the principle reduction would have been.

Forbearance Programs

A repayment plan is agreement that gives a borrower a specified amount of time to bring a delinquent mortgage account current by paying the normal monthly payment plus an additional amount each month to cure the delinquency. A repayment plan is considered when the delinquency resulted from a temporary hardship such as illness or job loss that has been resolved or will soon be.

Partial Claim(FHA Insured Loan Only)

Under a partial claim option, a lender will advance funds on behalf of a mortgagor in an amount necessary to reinstate a delinquent loan. The mortgagor, upon acceptance of the advance, will execute a promissory note and subordinate mortgage payable to HUD. No interest is charged on this subordinate loan, but HUD reserves the right to charge interest in the future. Also, no payment of principal is due until the borrowers either pays off the first mortgage or no longer owns the property. After the paper work is complete, the lender submits a partial claim to HUD for the amount of is advance.

Short Sale Or Short Payoff

A short sale is the sale of a property for less than the total amount necessary to satisfy the mortgage obligation, and the borrowers are unable to pay the shortfall from their own funds. This will result in the sale of the home however it is a better option than foreclosure in that the homeowner will be released from their total mortgage obligation.

Deed In Lieu Of Foreclosure

When a mortgage is in default and it is concluded that there is no alternative for resolving the delinquency, including the sale of the home, the lender may agree to a voluntary conveyance of the property from the borrower in exchange for full satisfaction of the debt. There can be no other liens on the home for this to be an option.

Cash For Keys

Cash For Keys is a term that is applied to the situation where the homeowner volunteers to forego the eviction process in return for a cash settlement. Some lenders may not accept this offer during foreclosure, only after the foreclosure process is complete. In other cases making the offer to your lender in advance may give you the advantage of a higher settlement amount. Expect around 1% of your home’s value as a settlement and make your offer in writing.

Although we have listed some of the possible results of loan modification and lender negotiations your results may not be limited to these. Every homeowner’s situation is different and requires a solution tailored to their needs that the lender will accept.

We CAN Help You With This Delicate Process!

We provide detailed, step by step assistance to anyone who has purchased the Do It Yourself Loan Modification Kit, with full online support. For those who prefer that we take care of everything, we also have a Full Document Preparation, and Negotiation Service, where we will review all the lender documentation, and offers with you, and of course we negotiate for the best possible offers on your behalf directly with your home loan lender.

Related posts:

1. Do Banks Prefer Foreclosures Over Loan Modifications?
2. My Mortgage Is Not Behind – Can I Still Get A Loan Modification?
3. Payment Calculator For Loan Modification Reductions

We counsel you step by step to resolve your loan payment difficulties. With our complete Loan Modification Service we prepare all of the paper work, and even speak with your lender or bank on your behalf until your case is resolved. Step 1 involves filling out our FREE Evaluation Form. Once we receive this we will give you a call at your convenience, and discuss all your options with you in detail.

Dealing with the banks and mortgage lenders without being fully informed and prepared puts you at their mercy, even when they say they wish to help you restructure your payments. Their main agenda is to squeeze as much money from you as they can get!

As a Non-Profit Organization we wish you the best of luck in this process, and if you need anything please either use the FREE Evaluation page or our Contact page.

Easy To Follow Steps*

We have made this as simply and easy to follow as possible, with complete in-person, over the phone, and online support from our expert counselors.

• STEP 1: Complete the FREE Evaluation form.
• STEP 2: We call you and discuss your options.
• STEP 3: We talk to your lender on your behalf, ensuring that your case is always presented with YOUR best interests in mind.
• STEP 4: We put all of your paperwork in order to support your case.
• STEP 5: We are with you every step of the way, making sure that you have the best chance of an approved loan modification or loan restructuring
• STEP 6: We make sure you have the best possible chance of getting the lowest rates and payments possible! Unlike the lenders we are on YOUR side.

*Note: Your actual loan modification or loan restructuring process may differ from these step. These steps are to give you an idea of the overall process only.

 

Related posts:

1. Do Banks Prefer Foreclosures Over Loan Modifications?
2. What Can I Expect If I Get Approved For A Loan Modification

Unfortunately, during this time of financial crisis maby desperate and confused homeowners are susceptible to being taken advantage of by various scams. At fixmybadhomeloan.org we have put into place an Exclusive Scam Prevention Program, to ensure protection for homeowners. Few, if any company in the loan modification industry offer these levels of protection.

In Phoenix, and Tucson, Arizona we help educate homeowners through monthly workshops, and classes. The Loan Modification process can be confusing, especially when you add the threat of foreclosure into the mix. One of our goals is to educate people on the process through this website, and live events.

Before we discuss our Scam Prevention Program, first take a look at some of the most common Foreclosure Rescue Scams to avoid:

• Scam artists often target homeowners who are struggling to meet their mortgage commitment or anxious to sell their homes. Recognize and avoid common scams.
• Assistance from a HUD-approved housing counselor is FREE.
• Beware of anyone who asks you to pay a fee in exchange for a counseling service or modification of a delinquent loan.
• Beware of people who pressure you to sign papers immediately, or who try to convince you that they can “save” your home if you sign or transfer over the deed to your house.
• Do not sign over the deed to your property to any organization or individual unless you are working directly with your mortgage company to forgive your debt.
• Never make a mortgage payment to anyone other than your mortgage company without their approval.

This quote was taken from the US Government website on Making Homes Affordable.

fixmybadhomeloan.org Scam Protection Policy

fixmybadhomeloan.org is the ONLY company in the loan modification Industry that offers these levels of protection to the Homeowner. This system is EXCLUSIVE to fixmybadhomeloan.org.

• fixmybadhomeloan.org is the ONLY company that provides real recourse for the homeowner. fixmybadhomeloan.org protects you from being scammed. In the event of the assigned negotiator disappearing or failing to perform the tasks associated with loan modification, fixmybadhomeloan.org has policies in place that protect you. These policies allow the homeowners file, at the homeowner’s request, and at no additional cost, to be transferred to and completed by another, separate, licensed professional. You experience no additional loss of time, money or progress associated with your modification. You are protected.
• fixmybadhomeloan.org provides the loan modification customer with a personalized and interactive, online dashboard. This dashboard is used for oversight of the process and communication between the homeowner and the negotiator and fixmybadhomeloan.org. It also provides the homeowners with updates throughout the progress of the modification.
• fixmybadhomeloan.org’s customer management system is integrated into the negotiator and the client’s systems to provide third party oversight to the process. The homeowner can communicate with his assigned negotiator as well as with fixmybadhomeloan.org.
• The legal recognized individual or business entity that performs the loan modification has agreed, through contract, to a set and reasonable fee for the performance of the modification. There are no additional or hidden fees.
• Our company works only with licensed professionals or individuals recognized by the state in which they are conducting business, as legally endorsed to perform loan modifications. The legal components of endorsement can include, but are not limited to; professional broker’s license, attorney’s license, proof of bonding and insurance, and registration with the Department of Justice.
• All negotiators working with fixmybadhomeloan.org have copies of pertinent licenses and paperwork on file with fixmybadhomeloan.org.

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On February 18, 2009 the Obama administration announced The Making Home Affordable Program, which offers two solutions for struggling home owners. HARP, the Home Affordable Refinance Program enables you to refinance your home loan, to lower more affordable rates.

For those who meet the requirements of being in more serious hardship the HAMP program is available, where home owners can completely modify the terms of their primary mortgage, in order to lower payments to an amount within their monthly budget. HAMP is an acronym for Home Affordable Modification Program.

The goal of The Making Home Affordable program is to help up to 9 million home owners keep their homes, where as otherwise they would lose their homes through foreclosure. HARP is intended to help between 4 to 5 million homeowners, specifically who have Fannie Mae or Freddie Mac owned or operated loans. It will allow eligible homeowners to refinance into more affordable monthly payments.

The HAMP program has allocated $75 billion to keep between 3 and 4 million Americans in their homes by preventing foreclosures. Of course you have to be eligible for one of these programs to benefit. Meeting these requirements can be confusing, and difficult to navigate on your own. Fixmybadhomeloan.org is a non-profit company based in Tucson, Arizona, which has successfully helped many troubled homeowners through the loan modification and refinancing process. Some banks, and loan operators are not as friendly to deal with. It may start with harassing phone calls, and end in foreclosure for many people. It is important to know the facts, and have someone on your side who is able to negotiate for you, to ensure the best chance of lowering your payments, and being able to keep your home.

Useful Links

http://www.makinghomeaffordable.gov
http://www.financialstability.gov
http://www.hud.gov/

Related posts:

1. Do I Qualify For Loan Modification

An increasing number of homeowners are choosing to contact fixmybadhomeloan.org for assistance with their loan modification questions. In fact we have been providing advice on how to stop foreclosure in Arizona for quite some time now, and more recently have been providing assistance to families all over the country.

Many homeowners are coming to us because they have questions or are having problems with their mortgage servicers. So, we wanted to list the qualifications here and state the facts. The Making Home Affordable program is extremely new, and no doubt there are constant changes taking place, so please make sure you stay updated.

It is important to realize is that not everyone will qualify for the Making Home Affordable Program and you need to get educated on the process in order to understand the type of help you can receive. First you need to know the type of loan you have, and who owns your mortgage. Then you need to have a good idea of where your personal finances are at, with regard to expenses, and income.

Who is your lender and are they participating?

Here is a list of lenders, phone numbers and websites of lenders that are participating in the Making Home Affordable Program.

• American Home Mortgage Servicing, Inc. www.ahmsi3.com (877) 304-3100
• Aurora Loan Services LLC https://myauroraloan.com/ (800) 550-0508
• Bank of America, N.A. www.bankofamerica.com/mha/ (800) 846-2222
• Bayview Loan Servicing, LLC www.bayviewloanservicing.com (800) 457-5105
• CCO Mortgage www.ccomortgage.com (800) 234-6006
• Carrington Mortgage Services, LLC www.carringtonms.com (888) 267-2417
• CitiMortgage, Inc. www.mortgagehelp.citi.com (866) 915-9417
• Citizens First Wholesale Mortgage Co. https://www.cfwmortgage.com/ (800) 477-1086
• Countrywide Home Loans Servicing LP http://my.countrywide.com/media/hasp.html (800) 669-6607
• EMC Mortgage Corporation http://www.emcmortgagecorp.com (800) 723-3004
• Farmers State Bank https://farmersstate-oh.com (800) 350-2844
• First Bank http://www.firstbanks.com (800) 760-2265
• First Federal Savings and Loan https://www.ourfirstfed.com/home/home (800) 800-1577
• GMAC Mortgage LLC www.gmacmortgage.com (800) 766-4622
• Green Tree Servicing LLC www.gtservicing.com (800) 643-0202
• HomEq Servicing www.homeq.com (877) 867-7378
• Home Loan Services, Inc. www.viewmyloan.com 1-800-622-5035
• IBM Southeast Employees Federal Credit Union www.ibmsecu.org (800) 873-5100
• J.P. Morgan Chase Bank, NA www.jpmorganchase.com (877) 682-4273
• Lake City Bank www.lakecitybank.com (888) 522-2265
• Lake National Bank www.lakenationalbank.com (440) 205-8100
• Littion Loan Servicing www.littonloan.com (800) 247-9727
• Mission Federal Credit Union www.missionfcu.org (800) 500-6328
• MorEquity, Inc. www.morequity.com (800) 628-9324
• Mortgage Center, LLC www.mortgagecuso.com (866) 856-3750
• National City Bank www.nationalcitymortgage.com (800) 523-8654
• Nationstar Mortgage LLC www.nationstarmtg.com (888) 850-9398
• Oakland Municipal Credit Union www.omcu.com (510) 637-6600
• Ocwen Financial Corporation, Inc. www.ocwen.com (800) 746-2936
• PennyMac Loan Services, LLC www.pnmac.com/index.php (866) 545-9070
• PNC Bank, National Association www.pnc.com (888) 762-2265
• Purdue Employees Federal Credit Union www.purdeefcu.com (800) 627-3328
• RG Mortgage Corporation www.rgmortgage.com/mortgage (888) 264-4674
• Residential Credit Solutions https://www.residentialcredit.com/default.aspx (800) 737-1192
• Saxon Mortgage Services www.saxononline.com (800) 594-8422
• Select Portfolio Servicing www.spservicing.com (888) 818-6032
• Servis One Inc.,dba BSI Financial Services, Inc www.bsifinancial.com (800) 327-7861
• ShoreBank www.sbk.com (800) 905-7725
• Technology Credit Union www.techcu.com (800) 553-0880
• Wachovia Mortgage, FSB www.wachovia.com (800) 922-4684
• Wachovia Bank, NA www.wachovia.com (800) 922-4684
• Wells Fargo Bank, NA www.wellsfargo.com/homeassist (800) 678-7986
• Wescom Central Credit Union www.wescom.org (888) 493-7266
• Wilshire Credit Corporation https://www.wcc.ml.com (888) 502-0100
  1. Be the owner and occupant of a one to four unit home.
  2. Have an unpaid principal balance that is equal to or less than:
  1. Do you have a first lien mortgage that was originated on or before January 1, 2009?
  2. Do you have a monthly mortgage payment (including taxes, insurance, and home owners association dues) greater than 31 percent of your monthly gross (pre-tax) income?
  3. Do you have a mortgage payment that is not affordable due to a financial hardship that can be documented?

Yes, my lender is participating.. Do I Qualify for refinancing or Loan Modification through HARP, or HAMP?

If your lender is participating in the Making Home Affordable Program, then in order to qualify for a loan modification under HAMP, you must:

• 1 Unit: $729,750
• 2 Units: $934,200
• 3 Units: $1,129,250
• 4 Units: $1,403,400

If you meet the above requirements, then proceed to check your loan for these items:

If you answered YES to all of these questions, then you may be eligible for a loan modification under HAMP. But only your servicer will be able to tell you if you qualify and please remember that this is a voluntary program for them.

If you are unsure, have any questions, or perhaps would just feel more comfortable having on of our experts review your specific situation then think about taking the time to complete our free evaluation.

Related posts:

1. Making Home Affordable – The Obama Administration’s Solution To Stop Foreclosures

This tools provides a simple and quick guide to see if you are eligible for the Home Affordable Modification Program (HAMP) as outlined by the Obama Administration. Enter your current monthly gross income into the form, and then click on the Calculate button. The tool will calculate a mortgage payment guideline amount. If your current mortgage payment is above this amount and you meet the other Home Affordable Modification guidelines, then you may be eligible.

Remember that the process has changed considerably over the last several months, so to be sure about your options we do encourage you to use our FREE Evaluation service.

Enter Your Gross Monthly Income This is the income of all borrowers who signed your mortgage BEFORE taxes and any adjustments.     Mortgage Payment-to-Income Guideline   31% Mortgage Payment Guideline   CALCULATE If your current mortgage payment is above the amount shown in the Mortgage Payment Guideline, then you may be eligible for the Making Home Affordable Loan Modification Program. Remember there are other programs, and things are changing everyday. If you want a thorough FREE review of your options, then relize we provide this here.

ADDITIONAL NOTES
Gross Monthly Income: is the total income of all borrowers who signed your mortgage before any taxes or other deductions are made. If more than one person signed your mortgage, such as your spouse or a co-signer, add the gross monthly income of all borrowers and enter this amount.

Mortgage Payment: is defined as what you pay on a monthly-basis for principal, interest, property taxes, hazard insurance and homeowner’s association fees, if applicable. Please include information about your first (or “primary”) mortgage only. Do not include any payments on your second mortgage. You may have taxes and interest in escrow added to your monthly payment already, so be careful to count taxes and escrow only once.

Mortgage Payment Guideline: this is calculated as 31% of your current monthly gross income. If your current monthly mortgage payment is above this amount, you may be eligible for the Home Affordable Modification.

Privacy Note: to protect your privacy, this site will not record your information.

Related posts:

1. Payment Calculator For Loan Modification Reductions

At one of our Loan Modification Workshops in Arizona recently, someone asked the question, “Can I still get a loan modification if I am current on my mortgage?” They went on to say that they are struggling to pay their bills due to a financial hardship, and are just hanging on by a thread.

The short answer is yes, you still may be eligible for a loan modification or refinance, either through your bank/loan servicer, or through the Making Home Affordable program. First off the lender assess less risk than with someone who is very behind on their payments. Realize though that the lender would need to understand why you would need a loan modification if you are current on your payments. From their perspective you are in good standing. Usually, a loan modification is requested by homeowners who have already fallen behind on their payments, due to a financial hardship.

According to the Making Home Affordable program announced in March 2009 by the Obama Administration, there is a provision in the plan to assist homeowners who are not yet late on their home loans.

Please realize that although this provision does exist, there will be more scrutiny placed upon such applications. This is to ensure that the program only assists people who are going through a financial hardship, and who will inevitably start having problems making their mortgage payments. Everyone likes the idea of lower payments, so those who process loan modification request have to ensure that the system is not taken advantage of, and that the necessary help is given to the right people.

Many people have reported that they have received little to no assistance from their mortgage company, when applying for loan modification while being current on their payments. If a loan servicer can see you are 4 months behind and are about to enter into foreclosure it is easier to verify financial hardship, and the loan modification process is escalated.

Our advice to those who are still current is to be prepared to provide a suitable justification as to why you need a loan modification. This would typically be due to a temporary financial hardship from something such as; losing your job, a sudden decline in income, a family illness, or other reason for higher than normal expenses.

The leander needs to see why you will soon be unable to make your payments. They must also be able to see that this will be a temporary situation that you will be able to recover from with assistance, and that you will be able to make your payments again, with the intention of staying in your home.

Proving you financial hardship, while still being current on your payments can be extremely frustrating, even with a legitimate claim. Educate yourself on the Making Home Affordable program, and if you prefer to have us review your situation, then by all means complete our simple Free Evaluation form. We will explain your options, and you can proceed to self-process you loan modification or choose to use our negotiation services, which have proved to be successful for a growing number of happy homeowners.

If you have the time to invest then this might be a long process. Some have had to contact their local media, and congress, in addition to posting the details of their experience in online public forums. Many homeowners have spent up to a year fighting to get loan assistance when they are not late on their payments.

It is in a banks best interest to work with you if your claim is legitimate, rather than initiating foreclosure proceedings. If you can prove that your current financial situation is temporary, and that it prevents you from being able to make your monthly payments, then a reduction in your monthly payment, and/or an extension of the duration of the mortgage loan would be beneficial to both parties.

What do you need?

1. A letter describing your financial hardship
2. Proof of your current income and your current finances
3. Possible proof that you are actually living in the property

The financial documentation will be used to determine if they can modify your monthly payment, to meet your specific situation. You may need to provide supporting documentation, such as current pay slips, monthly expenses, and bank statements.

It is important to you show that while you experiencing a financial hardship, you’re situation is not hopeless. If there is absolutely no way you will be able to make payments down the road, even with a significantly lowered payment, then this will not be approved. You need to show that with this lowered payment that they arrange for you, that you will be able to stay current on your payments moving forward.

Related posts:

1. What Can I Expect If I Get Approved For A Loan Modification
2. Payment Calculator For Loan Modification Reductions
3. Do Banks Prefer Foreclosures Over Loan Modifications?

Fixmybadhomeloan.org does provide assistance in this area, and we will be adding information soon.

If you need help now then please get in touch through our contact form. One of our expert counselors will be very helpful in giving you advice and assistance.

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