San Diego real estate has had an upheaval in values the last couple of years. Much is to blame on a real estate bubble that was unsustainable–paired with mortgage products that were designed to self destruct–such as those pesky negative amortization home loans.
Surveying the San Diego real estate reports, I can’t help but wonder how many foreclosures might be prevented if aggressive loan modification efforts were instituted by both borrowers and mortgage lenders.
One of the first questions I ask a troubled San Diego homeowner who calls us to list their home is:
Would you want to stay in your home if the payments were more affordable?
More often than not, the answer is yes.
These are the people I urge to pursue modification of their loan terms, but so many ask:
How to get a loan modification?
Until very recently, I have advised clients to call their lenders and begin the process of requesting loan modification–and to be very persistent. I now suggest they visit fellow blogger Ryan Rockwood’s new 60 Minute Loan Modification site where they will soon (if not already) be able to order is new ebook which details How To Get A Loan Modification. The book is loaded with information for struggling borrowers–and chock-full of insider tips.
For example, I know that many borrowers agonize because either they or their mortgage broker overstated income levels when applying for mortgage loans during San Diego’s real estate bubble years. At the same time, attorneys have discovered that many lenders may have violated provisions in the Truth in Lending Act and/or the Real Estate Settlement Procedures Act (RESPA). Rockwood states that there is plenty of blame to go around, and lenders as a rule aren’t pursuing earlier income exaggerations.
That information alone might spur some to pursue loan modifications for their mortgages.
And one of my personal favorites is how many times to click the phone in order to get to a live respondent at Countrywide Mortgage!
NOTE: It is now 2013, and looking back–we see that relatively few loan modifications were successful. So many homes were lost to foreclosure–while an equal or greater number were successfully sold as short sales. Today’s market in 2013 is a recovering one, where many homeowners are now in positive territory,