2009 Mortgage Stimulus
For Anyone looking to take advantage of the mortgages stimulus plan will need to provide a decent amount of documented proof in order to get a loan modification. Unlike the days of non-documentation and stated income loan, they days are pretty much a thing of the past; And that was one of the biggest reasons why we got into such a jam in the 1st place. The stated income days of the early to mid 2000’s created an enormous amount of problems that has required corrective actions from Washington, lenders and homeowners. Many stated income were inflated or never existed at all, and many homeowners that got loans came forward that they did not deserve came forward with their stories, while others have begun class action law suite against lending institutions for entrapping them with predatory loans. Lenders became irresponsible, greedy, and gave loans to many individuals that had not place taking out a mortgage at all. We are correcting for all the mistakes that we have made previously as a society. With the stimulus those previous behaviors of lenders and borrowers will not be able to foster anymore, so we are back to documenting everything once again.
Anyone looking to modify their mortgage loan can expect to go through a thorough approval process. A homeowner expecting to do a modification must expect to provide verifiable proof of income including tax returns, pay stubs, award letters, profit/loss statements for the self-employed, among other documents. Homeowners must show that they live on the property and provide proof of that with things such as : utility bills, phone numbers showing your residence, voters registration cars, etc. Anyone providing information to try to acquire a loan modification should make sure that they are being honest and truthful to the best of the ability; The reason is, anyone caught falsifying information will face serious re-percussion from the government for falsifying information, it states that. That was included in this stimulus plan to deter any misrepresentation of anyone seeking legitimate help. This I believe is a good thing to ensure that we don’t get back into another housing crisis in another 5 yrs from now, after we come out of this one. If you mortgage has progressed to foreclosure will have charges even if you are working on a loan modification.
When You Are In Foreclosure You are still Billed
Do not make the mistake and think that because your home is in foreclosure it means that you are no longer getting additional charges on your account. When your loan with your mortgage company is still outstanding, meaning it is not paid off in full, and you are still under contract. That means you can still get a new bill each month, in addition to late charges, and fees.
You should always view your mortgage bill as an ongoing bill that does not stop until it is paid off in full, including any outstanding late fees, attorney fees, corporate advances, court cost, etc. When your mortgage goes into foreclosure, it does not mean the bill stops accruing late charges, attorney fees, or monthly mortgage bill. In fact, if you go into foreclosure for being 3 months past due and you owe $10,000 in past due mortgage payments, late fees, and attorney fees, and you mortgage remained in foreclosure for another 3 months with more fees; chances are you will end up owning about another $10,000 more which would probably double your total amount due if you decided to make your payments on your account to get out of foreclosure. A lot of mortgage companies will negotiate the late charges, but not the attorney fees that were incurred already; since they will have to pay the attorneys if you do not, that is how it ends up. Your account going into foreclosure will end up costing you more. The reason why it would cost you more is because of the attorney fees that you will incur when you go into foreclosure, unless you are able to catch it as soon as your account makes it into foreclosure, or if you can work something out with the attorneys handling your mortgage account. If you go into foreclosure and are planning to eventually make your payments again to avoid the sale of your home, you should always have an eye on the sale date of your property. You can get that information from your mortgage company, the mortgage attorney, court, or from a foreclosure publication notice. The best place to get that information is usually through your mortgage company though.
If you go into foreclosure you are only allowed a limited amount of time in foreclosure depending on your state’s law, before your would need to paid up your account or get on a re-payment plan to get out of foreclosure. That way you do not stay there too long and your property gets auctioned off. Each state has it own unique laws that sets the timeline once the account goes into foreclosure before it can be sold for non-payment. I just want to make sure that if your account goes into foreclosure that you are aware that you will get a monthly bill each month as the months are changing, plus late fees, and additional attorney fees. There is often a misconception to believe that a mortgage bill stops once the loan goes into foreclosure, and then starts up again if it comes back out of foreclosure due to payment. That is wrong. The bill never stops until the debt is completely paid off.
