Appleton Wisconsin Mortgage & Real Estate Resources: January 2009

I don't know about you, but for me . . . It is absolutely necessary to spend a few moments each day filling my head with positive thoughts. I live in the boonies, approximately 45 minutes from my office. Although the commute is a pain in the rear, I am so grateful for it, as it provides me the opportunity to step away from the crazy schedule and get my dose of positive so I may carry it on throughout the day.

Here is a little something that I hope will carry you today - Make it an absolutely wonderful day!

"Nurture your mind with great thoughts, for you
will never go any higher than you think."
- Benjamin Disraeli: Was a British statesman and author

"Most people get it wrong. Their thoughts reflect their life. When things are going badly, their thoughts are negative. And it's only when good is heaped upon them that they think positively. As difficult as it may be, find it within yourself to guide your life through your thoughts. The special people who can do just that can weather any storm and create the life of their thoughts - which is the life of their dreams."

MAKE IT GREAT!!!!

It is 1:46 pm, Saturday afternoon and the temperature on my weather station reads 3 degrees! Quite a warm up from the mornings temp . . . MINUS 5! Welcome to Wisconsin...

In December we saw 47.2 inches of the white stuff not to mention an average temperature of 15.8 degrees . . . burrrr -

I awoke this morning, grabbed a cup of Joe and proceeded into the sunroom to gather my thoughts and contemplate my day, when I was greeted by a beautiful sight. My fair weather hibiscus decided to burst out a bloom and smile on my day!  Haven't seen this for months, and by night fall it will be gone...... 

Sometimes we overlook the small wonders that make us smile and bring joy. Take a moment out of your day , and look for the small wonders that surround you. Perhaps it is something someone said or did, please acknowledge them. Remember, Don't blink, you may just miss it!!!!

I must be really sentimental today!!!!!! LOL - Oh well, it feels good and I wanted to share my beautiful flower with you. .. Enjoy

Loan Modification Series: PART 4 of 5 -

The 10 Most Common Questions About Loan Modifications

For many people trying to avoid foreclosure, the process of renegotiating their loan can be difficult to understand.  If you are considering contacting your lender to attempt negotiations for a loan modification in order to avoid foreclosure, it is vital that you are adequately prepared and able to present your case in the best possible light, The process begins with gathering as much information upfront as you possibly can to insure a successful negotiation. I have compiled a list of the Top 10 Questions about Loan Modifications. This list will enable you to be better informed about the way the loan modification process works and what you should expect from it:

 •1.   What is a loan modification; Specifics please?

A permanent change to one or more of the original loan repayment terms of a home loan that will enable the home loan to be reinstated or revised, resulting in a new payment schedule the borrower can afford. This is known as a loan modification.

 •2.   Can I include late charges from the lender in the Loan Modification?

This will be dependent upon the type of loan you have. Late fees and other penalties may be waived by the lender at the agreement of the loan modification. It is important that you get a complete breakdown of all fees, and request an explanation in writing from your lender.  

 •3.   Can the Bank  force an interior inspection if the property condition is questionable?

Absolutely; Although an inspection or an appraisal is not a condition of consideration for a loan modification, should there be a need to verify that the property possesses no physical conditions that could adversely affect the value, the lender could conduct any review it considers necessary.

•4.   How do I determine whether or not I will qualify for a loan modification?

The primary consideration on the part of your lender is going to be whether you have the ability to make the new modified payment, now, and in the future. You will be required to show proof of your income, together with a detailed financial statement representing your income and expenses. This will confirm to the lender that if granted the loan modification, you will be able to afford the new, repayment schedule.

 •5.   Do I have to be behind on my payments to get a loan modification?

There are many lenders who have begun accepting applications for loan modifications from homeowners who are not yet behind on their payments. Do not take no for an answer, be pro-active. I here many stories of borrowers calling their lender and being advised that they cannot offer any relief until they are behind in their payments. Ask to speak to a manager and get a referral to another division to discuss your case. More that likely, if a borrower can demonstrate to the bank that in the near future they will not be able to afford their payments, they will work with you on a modification. 

•6.   What constitutes a valid Hardship situation?

Lenders typically consider divorce or separation; the death of a spouse, co-borrower or family member; illness; loss of income; job relocation; or military service to be acceptable reasons to entertain a loan modification. Although each situation is unique in and of itself, a very important aspect of a loan modification application would be a compelling letter.

 •7.   Can I stop a foreclosure by applying for a loan modification?

Of course; that is the point of a loan modification. Negotiating a loan workout solution with your lender can bring your loan current and have the foreclosure process stopped.

•8.   Is it possible to have payments in arrears added back into my loan modification?

Yes, past due payments can be added to the new loan principal and amortized over the life of the loan.

 •9.   Is it best hire someone to help me, or can I negotiate loan modification without help?

Due to the fact that most loan modification companies require a substantial fee upfront, it is important to consider your current financial situation, together with your comfort level in dealing with your lender. It can be a difficult and time consuming process, so keep the big picture in mind when making this decision.  Regardless of the choice you make, your number one priority should be to learn everything you can about the process of loan modification.  It is important that you educate yourself on what is involved in getting a loan modification application approved and what your legal rights are.  A highly skilled, knowledgeable professional could help with this.

 •10.   What are the first steps to move forward with a loan modification?

Do your homework - learn as much as you can about the loan modification process before contacting your bank's loss mitigation department or a loan modification company so you can make informed decisions.

There is an abundance of information and resources available to help. The key to your success is Knowledge and understanding. We are here to help point you in the right direction.

Stay tuned for PART V of Loan Modifications - "Avoiding Scams When Looking for Mortgage Payment Rescue"

If you are interested in more information on loan modification, please feel free to contact me and I will put you in touch with one of my preferred Loan Modification Experts that specialize in successful loan modification transactions. Together we will assist you every step of the way. I hope you have found this information useful.

The Loan Modification Series:

Loan Modification Series part 1 of 5 - Big Solution to A Growing Problem

Loan Modification Series part 2 of 5 - Are the Bank Willine to Play?

Loan Modification Series part 3 of 5 - Can a Loan Modification Assist in Avoiding a Foreclosure?

Be sure to visit my website http://www.wisconsinloantips.com for more great information -

Loan Modification Series: PART 3 of 5

Avoiding Foreclosure with Loan Modifications

With the rising rate of foreclosures in the United State, mortgage modifications are quickly becoming the answer to many people's prayers. Until recently, mortgage companies were reluctant to provide the option of mortgage modification to people facing foreclosures. However, with the ever-increasing amount of homes in danger of foreclosure, lenders are more willing to try new and different approaches to help a homeowner keep their home. They have come to realize that they can minimize their loss and avoid bankruptcy by working with the homeowners.

A loan modification, sometimes called a mortgage modification, allows borrower the option to re-negotiate the terms of their mortgage loans, thereby reducing the required monthly payment. This gives people who would have otherwise lost their home to foreclosure a better chance to keep their home. In order to avoid foreclosure, the lender will modify your mortgage and create a new payment plan.

There are many reasons for borrowers and lenders to work through this difficult situation together and to devise a suitable plan that will work for all involved parties. In today's market condition, the option of selling your home may not be feasible for you. Consequently, you will have to work together with your lender if you are going to save your home from foreclosure.

Modifying your mortgage is usually the best way to make sure foreclosure does not occur. Lenders will still get their money and the borrower can keep their home through the negotiation of a new payment structure. It is not, however, as simple as you may think to negotiate a change in your mortgage. The lender will require proper documentation to prove your current financial standing before a successful loan modification can occur. The bank will also use this information to ensure the homeowner will be able to repay the new loan.

 Although not all banks will offer the same solutions, it is never a bad idea to bring it up and see what they say. It may be just what is needed for you to keep your home out of foreclosure. In today's struggling economy, more and more lenders are making themselves available to borrowers; however, they don't want your home. They exist to lend money, not own property. And since over two million houses face foreclosure, many banks are struggling too. It will take a lot of time and effort; just keep your eye on the finish line. You need to protect your most valuable investment looking in to a mortgage loan modification to prevent foreclosure.

We are entering a historical era and it will be very interesting to see how things play out. Please stay tuned for PART IV "The Ten Most Asked Questions About Loan Modifications"

If you are interested in more information on loan modification, please feel free to contact me and I will put you in touch with one of my preferred Loan Modification Experts that specialize in successful loan modification transactions. Together we will assist you every step of the way. I hope you have found this information useful.

The Loan Modification Series:

Loan Modification Series part 1 of 5 - Big Solution to A Growing Problem

Loan Modification Series part 2 of 5 - Are the Bank Willine to Play?

Be sure to visit my website http://www.wisconsinloantips.com for more great information -

Loan Modification Series: PART 2 of 5

Why The Banks Will Lower Your Rate Without Refinancing 

My, my, how things have changed . . . . Just a few years ago, real estate prices were booming. "Sold" signs that were once the "norm" have now been replaced with foreclosure signs. Lenders are having difficulty attracting investors because of the enormous bad debt on their books. The never ending spring of fresh consumers who could be enticed with sub-prime mortgage products have gone by the wayside as lenders have gotten trapped between the FDIC and possible loan fraud investigations.

Today, banks are looking for a means to save themselves from the unexpected crash of the sub prime mortgage market and they think the solution has come through a new loan correction tool - the loan modification. This tool allows lenders to turn failing loans into positive loans with a few small adjustments. Late fees, unpaid charges for principal or interest may not be wiped away, but can be integrated into the renegotiated loan conditions.

Clients who are having difficulty making their monthly mortgage payment and who fully expect to face foreclosure are offered an opportunity to modify their loans. To make the monthly terms manageable for the homeowner, the lender and borrower begin renegotiation of the present mortgage conditions.  Often times, this requires switching into another loan product, for instance, from adjustable (ARM) to fixed rate mortgage, or it could simply be a reduction in the interest rate. Due to the fact that the property is saved from a possible foreclosure and the mortgage is reinstated, the investor has preserved another loan from going bad . . . and thereby increasing their bottom line and alleviating further loss.

Current experiences show that Lenders are not being as accommodating with investor loans, however. Presently, loan modifications on primary residences have seen success.  If the borrowers cannot prove that their inability to pay is due to a change in income or that the new loan terms will make it possible for them to keep up with the payments, lenders will most likely reject the modification request and opt for foreclosure.  Investors are not going to take a chance on a scenario that is not solid.

Loan Modification is advantageous to both parties involved due to the fact that the bank will not lose their income and the borrower will retain his home, loan and credit standing.  While giving up the home may be a good option for some borrowers, modifying the loan is often a better choice for a family who wants to remain in their home and make their home loan work for them.

This issue is no longer isolated to certain areas of the country. It is impacting all. Please look for for PART 3 "Avoiding Foreclosure Through Loan Modifications"

The Loan Modification Series:

Loan Modification Series part 1 of 5 - Big Solution to A Growing Problem

Loan Modification Series part 2 of 5 - Are the Bank Willine to Play?

If you are interested in more information on loan modification, please feel free to contact me and I will put you in touch with one of my preferred Loan Modification Experts that specialize in successful loan modification transactions. Together we will assist you every step of the way. I hope you have found this information useful.

Be sure to visit my website http://www.wisconsinloantips.com for more great information -

Each and every day, we here another story, an effected co-worker, your child's classmate, an old friend, and on and on...

With the number of foreclosures on the rise and a weakening real estate market pinning homeowners into homes they can't afford and can't sell, it's time to introduce a new way to prevent foreclosures. This tool, referred to as a loan modification, creates opportunity for lenders to modify a previous mortgage contract they hold with a borrower, and has the potential to seriously aide in the ending of the current mortgage crisis.  Many borrowers are seeing their current mortgage interest rates dropping sometimes in half, thus making their new payments much more affordable.  This is all done without actually refinancing the home.

People successfully obtaining a loan modification must be on the verge of being foreclosed upon and be able to show a hardship. The borrower must qualify for the program, and will likely be burdened to show that this modification will be in the bank's favor, as well as the borrower's. Furthermore, borrowers seeking a loan modification must be employed, must be able to prove their income, and will have to show exactly where a change in their circumstance created an inability to repay the debt they previously agreed upon.

Lenders are not blind to the fact that this process may potentially turn what would have been bad debt into a good loan which the bank will then profit from. And if the borrower eventually chooses to refinance or sell, the bank still comes out smelling like a rose because late charges, fees, outstanding payments, and other concessions must be part of the modification agreement. This helps make sure the bank does not lose out by temporarily absorbing outstanding funds.

Bad debt will never reflect well upon a banks appeal to their investors nor the FDIC, and pending foreclosures are viewed as bad debt. The opportunity to turn a potential foreclosure into a profitable  investment opportunity will certainly pique the bank's interest to at least try a loan modification. In addition, banks prefer foregoing foreclosure duwe to the simple fact that a property in the midst of a foreclosure can sustain heavy losses during the process,

Vacant homes are often victims of vandalism, so banks make the effort to get them sold before they are forced to auction.  However, regardless of how hard they try, properties simply aren't selling like they used to. Damages a property sustains take away from the overall funds that a bank would claim in a foreclosure, Now, add in all the other costs involved in the foreclosure process (attorney fees, late fees, agent fees, carrying costs, etc.), And you can see how it becomes clear that banks would rather practice loan modification than the see a home through the foreclosure process.

In Wisconsin we have not had the direct impact as have many in other parts of the country, however I am now getting calls each and every week from distressed individuals looking for advice.

Please stay tuned for PART 2 - I will be  discussing "Why The Banks Will Lower Your Rate Without Refinancing....

12 Must Know Steps When Considering Purchasing a Short Sale Property

It is on the 5:00 News, printed in our local newspapers and being discussed around the water cooler! As banks continue to foreclose on homes in the area, buyers will find some amazing garage-sale priced homes; but buyers have opportunities to buy homes through a "short sale" before a home goes into foreclosure.

What is a "Short Sale?" A Short Sale may be defined as the sale of a home at a price less than the existing mortgage balance. It may or may not be in a foreclosed status; however the ultimate price of a short sale lies in the willingness of the bank to negotiate terms. This is a complicated process and in the recent past, a rare occurrence. Without a doubt Short sale transactions will be prevalent in the 12 to 18 months. 

It is good advice to consider hiring professional help when you are looking to buy a home. There are so many legal loop holes that the average person could be steered in a wrong direction or taken advantage of. It is important to point out that the majority of lawyers and real estate agents have little experience in these sales. In order to be successful, you need to be very careful in who you select to be your facilitator and guide through the arduous process. The most important point to consider is: Going it alone when purchasing homes in foreclosure or negotiating a Short Sale will significantly increase your chance of failure. 

The 12 steps in the process are:

•1.          Begin your search by locating homes which are in default as early as possible. The optimal time is before the formal non-judicial foreclosure begins.

•2.          Search foreclosed homes with plenty of lead time before the Trustee's Sale (you may need weeks or months of lead time.)

•3.          Created short list of homes you have identified and narrow that list to only those homes you would likely purchase for yourself. Put the word out within your social circle, as they may a great opportunity waiting.

•4.          Complete an accurate Comparative Market Analysis (CMA) using sold homes with similar features. There are several online sites available in addition to your local MLS. A Local Realtor with Adequate Short Sale experience will be able to assist you with utilizing your local MLS system.

•5.          Determine the exact mortgage balance and status of default or foreclosure.

•6.          Do not overlook the possibility of a second or third mortgage on the house. 

•7.          Have a title Search and Hold done on the property. A Search and Hold can be done by a local Title company. This will expose any other liens (tax liens, mechanic's liens, labor liens, state liens, etc.) that may have been attached to the property.

•8.          Determine how best to talk and negotiate with the loss mitigation department of the bank or mortgage holder (email, fax, phone, etc). Again, a seasoned Realtor in this area can provide valuable assistance.  

•9.          Determine whether or not purchasing via the short sale will negate any subordinate loans or liens (another trap for the unwary.)

•10.       Know which costs and fees in addition to the mortgage balance can be compromised and by how much (experience is the best teacher.)

•11.       Prepare a comprehensive package to present to the mortgage holder, which is the most critical step in closing a short sale. This should include the Purchase & Sale Agreement, and a thorough analysis of the home. The analysis should include comparable prices, the local market demographics, repair bids, third-party appraisal and other pertinent information that will provide justification of your offering price. Your offer must be prepared very professionally or the bank will overlook you and move on without second look. Often times, you will not have a second chance for that first impression, so make it good. Illustrate a clear and concise story and provide data to back up your story. Simply put, you have to be able to make a case to the bank, as to why they should sell to you at this price.

•12.       In order to close on a deal in a short sale, you must follow through with all parties involved.

The complexity and difficulty of closing short sales should never be underestimated, even under the best of circumstances. It is difficult to find a buyer of foreclosure properties through the short sale process, despite what con artists would like you to believe. You should have some experience before purchasing foreclosure properties and/or attempting to negotiate a short sale transaction. It is vitally important that you educate yourself and be aware of entrapment when dealing with these types of transactions.  

Buying a foreclosure can provide a great benefit and it can also be a fast way to lose money. Do you homework, align yourself with professionals with experience in this type of transaction, and all cost avoid major mistakes by overlooking or discounting the items mentioned above.

Short Sale and Foreclosure properties can be a great way to pick up equity immediately, and get you into a great home for pennies on the dollar.  

If you are thinking of doing this, please feel free to contact me and I will put you in touch with one of my preferred Real Estate Agents that specialize in short sales. Together we will assist you every step of the way. I hope you have found this information useful.

 Be sure to visit my website http://www.wisconsinloantips.com for more great information -

Locking in a mortgage rate with a lender is a great way to ensure that the rate quoted will be available when you close your loan. Rate locks are essential in mortgage planning.

This year has been highly chaotic in the mortgage and financial sectors. For the most part, mortgage rates have remained above the historic lows of 2003. However, this year we've seen several instances where rates dropped dramatically without warning-The information below illustrates the small windows of opportunity we have experienced over the past 12 months. 

Fortunately, these ultra-brief windows allowed us to help several of our clients save money on their mortgage and secure a solid plan for the future.

A rate-lock, or lock-in, is a lender's promise to hold a specified interest rate for you for a pre-determined period of time while your loan appli­cation is processed. Due to the volatility of the market, many lenders are also offering a rate renegotiation policy to assure that the borrowers have an opportunity to renegotiate their rate should the market improve and lower interest rates become available.

Knowledge is Power -be sure to ask your mortgage professional BEFORE YOU COMMIT about their lock policy and more importantly, renegotiation policy. Interest rates change daily and in these volatile times several times per day. 

What Happens If the Lock-in Period Expires?
If you don't settle within the lock-­in period, you might lose the interest rate This could happen if there are delays in processing whether they are caused by you, others involved in the settlement process, or the lender. For example, your loan approval could be delayed if the lender has to wait for any documents from you or from others such as employers, appraisers, inspectors, builders, and individuals selling the home. If your lock expires, most lenders will offer an extension of the lock for a small fee. To protect yourself ask questions of your mortgage professional as to lender turn times, etc. We have experienced lenders offering a great interest rate only to find that their processing departments are so bogged down with new guideline requirements, that the closings are being delayed requiring extensions.

Knowledge is Power - Ask your mortgage professional BEFORE YOU COMMIT about lender turn times.  

How Can You Speed Up the Approval of the Loan?
Much of the information required by your lender can be brought with you when you apply for a loan. This may help to get your application moving more quickly through the process. Be sure to respond promptly to your lender's requests for information while your loan is being processed.

Now is a great time purchase or to refinance. However, it's sometimes difficult to decide whether or not to refinance or purchase now because there are so many things to consider. Each person has different financial situations and particular financial goals that should be considered.

If you are considering purchasing, refinancing, or would simply like to sit down with a Certified Mortgage Planning Specialists for a mortgage review or pre-qualification consultation, give my office a call. We work with numerous local and national lenders and are located right here in Wisconsin. Having offices in Appleton, Oshkosh, Green Bay and Grafton, you can be assured the very best of service on a local level. We were here yesterday, we are here today, and we will be here tomorrow to assist you in your mortgage planning needs.

If you are not quite ready to personally meet me, that's ok! Simply visit my websites and get to know me!

http://www.WisconsinLoanTips.com and http://www.MortgageProsofWisconsin.com Here you will find great tips, mortgage calculators, information on FHA, VA, Rural, Refinance, Purchase loans, general mortgage information and much more!