This topic contains 3 replies, has 3 voices, and was last updated by Anonymous 7 years, 8 months ago.
- May 5, 2011 at 12:01 pm #204386
We have a house in bakersfield, ca and it has been in the market for months and we’re tempted to put it into auction. How does it work? How about we buy houses? Are they reliable? We are not foreclosing the house though.
- May 21, 2011 at 2:52 am #430657
Change in terms of loan. . . loan still stands, still valid, with modifications. . . . generally only modification banks will do is to lower the interest rate. . . .leaving loan otherwise unchanged. . . .still owe same amount on house, but monthly payments decrease due to lower interest rate. . . .
No real negatives for homeowner, only for bank which gets lower interest rate than you promised them, making your loan of lesser value to them. . .
As you’re not changing lenders or doing refi, don’t have all the expenses of refi (title, etc.), quicker, faster deal
- May 21, 2011 at 3:37 am #430658
A Loan Modification varies in definition by lender but in general means “a permanent or temporary change in one or more of the terms of a mortgagor’s loan, which allows the loan to be reinstated, and can result in a payment the mortgagor can afford”. In other words, your interest rate can be lowered, your remaining balance re-amortized and/or the current term of your loan extended, in order to reduce your monthly payment.
A successful Loan Modification will give the applicant the possibility of:
1. An interest rate reduction up to 6%
2. The advantage of having the reinstatement amount (total amount of late payments) deferred to the back end of the mortgage and added to the current principle.
3. A reduction in the actual principle balance of the loan
4. Demonstrate to the Lender that they are “pro-active” to the foreclosure process and trying to resolve the situation.
5. Can start a Loan Modification at any time in the foreclosure process and even if you are not even in foreclosure!
6. Has many of the same features of a refinance, without the high cost.
You only get one shot at the Loan Modification so you need to get it right the first time. You may need to make a payment to start the Loan Modification between zero and two payments, depending upon the Lender.
- May 23, 2011 at 11:44 pm #283459
only people looking to steal a property go to auctions, and they are expensive.
Try what I call a “5 day sale” its like an auction but you do it yourself and you aren’t bound to anything. Advertise your house everywhere you can think of for the week before the 5 day sale. Put up signs, advertise in all local real estate classifieds, post online in lots of places, etc. Wednesday through Sunday (the days of your sale) have set times in your ads where your house can be seen, and mention that all offers have to be in by sunset on Sunday and you will be contacting the winning offer afterwards.
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