According to Treasury sources, the new calculator can be used a point of reference for borrowers, housing counselors and any others in the loan modification industry that may use the process, but using the calculator does not mean that you will qualify. The information/data the calculator uses to qualify the borrower is based on interest rate, term and forbearance amount and may be inputted differently depending on the servicer.

An NPV(net present value) test is typically conducted by servicers when evaluating a borrower for HAMP. The test determines the value of the loan if it is modified according to program guidelines against the loan being left in its current state or “as is.” If the NPF test out higher for the workout, the servicer is required to provide the modification.

Since the HAMP program began in March 2009, permanent loan modifications have been received by approximately 670,000 borrowers. Yet according to the Treasury, the original estimate was between 3 and 4 million borrowers, thus the program has fallen short. To encourage greater opportunity for eligibility for the program, the Treasury made some changes including mandating that servicers provide a single point of contact or relationship manager, to assist a borrower in getting the evaluation handled and completed in a timely, organized manner in order to facilitate approval and increase the success rate .

The F TC said Wednesday that, as a result of a settlement reached with the mortgage lender over a year ago, it is sending out checks totaling nearly $108 million to more than 450,000 former Countrywide borrowers. This was for overcharges the company made before it was bought by Bank of America.

There were two types of overcharges, according to Frank Dorman, an FTC spokesman. The first were tied to inspections, home maintenance, lawn mowing and other services that Countrywide provided to homes of borrowers in default.

Instead of directly hiring local vendors for those tasks, the company used their own subsidiary companies to hire the vendors — and then had the subsidiaries mark up the fees, sometimes doubling them or more. They passed along the overcharges to the homeowners. Affected consumers will receive all those overcharges back.

The second set of overcharges came in the form of false claims and fees to escrow accounts of borrowers who entered into Chapter 13 bankruptcies (this type of bankruptcy protection provides debtors with time to pay off what they owe). The borrowers weren’t notified about the fees or charges at the time they were incurred. The FTC says they will get back the entire amount of those undisclosed fees or charges.

The action covered borrowers who were in default betweenJanuary 1, 2005andJuly 1, 2008. Many of the amounts are quite small; the average is about $240, but some borrowers will receive checks of several thousand dollars, the FTC said.

(Reuters)Bank of America among many other banks, had hoped to avoid facing tens of thousands of irate homeowners claiming that they were unreasonably denied mortgage aid through the Home Affordable Modification Program by the lender. However, a judge has denied the bank’s motion to dismiss the case and the bank will be asked to provide permanent loan modifications to those who are eligible and award damages to those who were “wrongfully denied modification”. Attempting to put a positive spin on the situation, BofA announced that it is “pleased that the court dismissed four of the eight counts in the consolidated complaint.” The judge ultimately limited the case to homeowners who entered trial period plans (TPPs) for loan modifications but were then denied permanent HAMP mods. He did allow for homeowners in states where consumer protections are stronger, like California, Illinois, Arizona and Massachusetts, to pursue claims in their own states.

The problem is not so much that the lender refused to modify loans, but rather that it appears to have “willfully failed” to make modifications that were likely to be successful – “either in bad faith or for its own economic benefit,” explained judge Rya Zobel. However, Zobel did reject claims of borrowers who asserted that they were “intended beneficiaries of HAMP” but who never entered the program, and she also refused to block 37 foreclosures on homeowners claiming to be in “imminent danger [of foreclosure]” during the pending lawsuit.

Do some research and find out if it makes sense for you to join a suit in your state if you feel that you might have been affected.

Diyloanmodkit.com

Rolled out by HUD and the nonprofit housing advocacy group NeighborWorks America, the program is making loans that are interest-free. Payments go directly to the lender for a portion of the borrower’s monthly mortgage, including missed payments or past due charges. And when the assistance period -which runs for up to two years ends, 20% of the loan is forgiven with each passing year. So, for qualified borrowers who stay in their home for at least five years after the assistance period and who don’t fall behind on their mortgage againor need a loan modification, this money doesn’t have to be paid back.

Homeowners interested in applying must first complete a Pre-Applicant Screening Worksheet (see link). To find out if you qualify and till fill out the forms visit the website at www.findehlp.org. Do long as you stay in you property the loan is free, if you default on your loan or sell your home you are reponsible for the full amount of the loan. If you plan to stay where you are the money is free and free is always a good thing!

Good luck

 Diyloanmodkit.com

The collections departments that are working hard on the lenders behalf would lead you to believe that you are one of a few and that you only have a few days to make that vital mortgage payment or even partial payment before you are evicted form your property and put out by the Sheriff. Judging by the figures below these scare tactics shouldn’t scare anyone. The truth is, you have time to make the decisions that you need and get the right loan modification for you and your family. 

According to CNN, four million borrowers are delinquent on their loans and have their cases in the hands of the lenders attorneys.

Two thirds of these borrowers have not made mortgage payments for more than a year and one third have not made payments for more that two years.

It takes 565 days to foreclose on a borrower from beginning of default to the auction sale.

New York takes longer, 800 days and if you are in lucky old Florida it takes 807 days due to the problems with robo-signing scandals. 

So once again, take the step to get educated, know what is involved when it comes to a loan modification and have patience!

As Always

DIYLoanModKit.

This is the first time that the administration has decided to do something about lenders and their participation in the HAMP program. It is using what it can right now – money to entice the banks to do better. Each servicer is eligible for up to $4500 over three years if a borrower enters a trial loan modification and the loan stays modified through those three years.

Diyloanmodkit.com feels that more needs to be done. The financial crisis has been going on since 2009. How much longer will the banking system be allowed to drag this out? Nobody want to be in a state of limbo unsure of what is happening with their loan or what is going to be their next move. Most people donot want to be in foreclosure.

Lenders need harsher penalties if the don’t modify a certain amount of loans per month or meet a quota. This crisis is not in its infancy and it is about time lenders worked out a solution that can appease both the lender and the borrower and let us all move on.

As Always,

Diyloanmodkit.com

Tax day is coming fast.

Michelle Williams, executive director of the United Way of the Virginias, also heads up the Mercer County VITA program, giving local taxpayers advice on filing their return and helping qualified taxpayers e-file their return. Williams said residents still have options to file and shouldn’t worry.

“One of things people have to remember is the worst thing you can do is not file your return,” Williams said. “If you think you owe money on your return, the best thing you can do is go ahead and file. The longer you wait, the more penalties and fees you can accrue and the more you might have to pay. The worst thing to do about any problem is to pretend it doesn’t exist.”

The IRS recommends anyone who cannot pay their taxes due should file their returns as promptly as possible and to pay as much as they can to lessen penalties and fees that accrue as the result of unpaid taxes.

Read more @http://bdtonline.com/local/x1075334765/2010-tax-deadline-looming

As always,

http://www.diyloanmodkit.com

diyloanmodkit

A 27-page proposal was received by U.S. banks last Thursday from state attorneys general and several federal agencies that could require them to reduce loan balances of troubled mortgage borrowers.

The proposal details a code of conduct for banks on how they should treat borrowers going through a loan modification of foreclosure.

The proposal represents the clearest indication that the 50 state attorneys general are working hand-in-hand with the Obama administration and other regulators to pursue a significantly broader settlement against the banks than any of the federal agencies might be able to win by themselves.

The proposal outlines formulas that would force banks to consider offering loan write-downs to troubled borrowers more regularly during the modification process. Banks have resisted reducing loan balances in part because of concerns that it could encourage more borrowers to stop making payments in order to receive smaller loan.

In the next few weeks, State and federal officials plan to begin meeting with banks to negotiate a final agreement on the code of conduct.

Let’s see how this works out.

http://www.diyloanmodkit.com

Should a settlement be reached, some state attorneys general are also pushing for banks to pay more than $20 billion of civil fines or to fund a similar amount of loan modifications for troubled borrowers, the newspaper said on Wednesday, citing people familiar with the matter.

Regulators are looking to settle with as many as 14 servicers, including three of the nation’s four largest banks: Bank of America Corp, JPMorgan Chase & Co and Wells Fargo & Co, the newspaper said, citing people familiar with the matter.

The administration wants a commitment from loan servicers to reduce loan balances for borrowers who owe more than their homes are worth, and that such costs would not be borne by investors who bought mortgage-backed securities, the newspaper said, citing people familiar with the matter.

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read more @ http://finance.yahoo.com/news/Obama-pushes-rb-3441462619.html?x=0&sec=topStories&pos=8&asset=&ccode