6 tips for a successful loan modification

6 tips for a successful loan mod

Avoid rookie mistakes when preparing, submitting your document package

By Jack Guttentag

Inman News®

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Part 2 of 1

Millions of mortgage borrowers who can no longer afford their mortgage payments but can afford a lower payment can avoid foreclosure by getting a modification of their loan contract. While the path to a modification remains torturous, it is not quite as bad as when I wrote addressed the issue in a 2009 column.

Are you unqualified?

It is not possible for borrowers acting on their own to determine whether they qualify for a modification because they don’t have access to all the criteria. Some is kept under wraps by loan servicers. However, borrowers can determine that they are not qualified for a government-supported modification by accessing a questionnaire provided by the U.S. Treasury Department.

Bear in mind, however, that servicers also offer modifications outside of the government’s program. You might qualify for one even if you don’t meet the government’s requirements.

Compiling the information the servicer wants

The single most important step in obtaining a loan modification is providing the servicer with the exact information the servicer needs to make a decision. Each servicer has its own set of forms that must be completed, and its own requirements for the documentation you must provide.

In my first stab at this problem, I placed the information required by each of the major servicers on my website. Now borrowers can access the DMM Document Wizard, provided at my request by Default Mitigation Management LLC, which is a lot better. Based on your answers to the questions it asks, you will be provided with a customized list of forms you must complete and documents you must provide. It is free and will take the guesswork out of what you need.

Don’t exaggerate your financial shortcomings

Warning: The servicer will examine your statements of income and expenses to determine whether you can afford a reduced payment. Exaggerating your financial weaknesses may open his heart but close his purse, if it makes you appear to be a lost cause.

Assuring accuracy

Having the right form is one thing, but filling it out correctly is something else. Some industry executives estimate that about 95 percent of all packages submitted are incomplete or contain errors. A package with obvious errors may fall to the bottom of the pile, or it may lead the servicer to conclude that you do not qualify for a loan modification when, in fact, you do. Remember what you were taught in second grade: Neatness counts!

In addition:

1. Use a cover sheet that identifies all documents in your package.

2. Write your name and loan number on every page.

Assuring delivery

Preparing an accurate and complete set of documents is one thing, but delivering the package to the servicer is something else. Servicer systems have been overwhelmed by requests for help, and documents routinely get “lost.” You want to minimize the chances of that happening to you.

Using fax or certified mail: Make sure you have the correct contact information. Treasury provides addresses and fax numbers of every mortgage servicer. Certified mail is more reliable than fax, but neither guarantees prompt attention by the servicer, or even that the documents won’t subsequently be misplaced or lost.

Using the DMM portal: The best way to deliver documents to servicers is to use the DMM portal, available through the DMM Document Wizard by clicking on “Submit,” or visit www.dclmwp.com. I have no financial interest in DMM.

Using the portal, your documents are delivered to the servicer electronically, and the portal then becomes a direct communication channel to the servicer. The servicer uses the portal to acknowledge receipt of your documents and to request additional information or documents. You use the portal to make corrections, to send additional information, and to update yourself on what has been completed and what remains to be done.

Questions by you are automatically directed to the specific employee who can answer them. All communications are time-stamped and remain in the portal as a record of borrower/servicer exchanges.

Unfortunately, not every servicer subscribes to the DMM Portal. The list of those that do is shown on the DMM Wizard.

Follow up, and then follow up again

Because the process of modifying mortgages remains slow and error-prone, you may need to nudge the servicer. If you faxed your documents, you should follow up to make sure the papers haven’t been lost and the case is in an active queue. But even if you use the DMM Portal, you should follow up with the servicer regularly to make sure your application is on track.

Next week: getting help with your modification without getting scammed.

My special thanks to Igor Roitburg for assisting in my research for this column.

The writer is professor of finance emeritus at the Wharton School of the University of Pennsylvania. Comments and questions can be left at www.mtgprofessor.com.

Is Your Cluttered Home or Office Making You Sick?

Is Your Cluttered Home or Office Making You Sick?

If you’re sick of living with clutter, you could be becoming sick in other ways as well. Living in a cluttered environment causes both physical and psychological issues that can adversely affect your health.

According to the 2010 “Stress in America” survey by the American Psychological Association, most Americans experience moderate to high stress, and 44 percent report that their stress levels have risen over the last five years. A cluttered environment adds to the stress in our lives. Along with being aesthetically overwhelming, clutter also causes immense anxiety due to financial problems resulting from disorganization, such as late fees, missing bills, purchasing duplicate items unnecessarily and storage unit rental fees. Lost things mean lost opportunities, lost time, increased costs and conflict within your family. In addition, excess clouds your clarity.

My company, ClutterDiet.com, did a survey of our members and readers in 2009, and discovered that one of the biggest issues people have with clutter is anxiety over how it affects family and friends. People are afraid to entertain in cluttered homes, and they are afraid that their children will learn bad habits and grow up with the negative effects of disorganization.

For many, stress and health problems are caused less by what they are doing and more by what they aren’t doing. Being disorganized steals time away from the things that matter most to you—cultivating a hobby, exercising, spending time with loved ones or learning something new. And doing positive things for your health is harder when you can’t locate your exercise gear or your supplements and medications.

Clutter also collects dust, and what is dust? A 2009 Environmental Science and Technology article reported that ordinary household dust frequently contains the chemical insecticide DDT, arsenic, decomposing insects, pollen, human skin and fecal matter from dust mites. Disorganized spaces are much more challenging to keep clean.

If clutter has reached the level that is considered hoarding, there are even more health dangers present, such as the risk of piles toppling, infestations of insects and vermin, and blocked exits. Even a nominal amount of clutter can cause injuries to you or your family if out-of-place items fall on you or cause you to trip.

As a professional organizer for more than a decade, I have realized that people are often motivated to finally get organized when they “get mad” at the clutter and see what it’s doing to their lives. Getting organized is very much like losing weight: It requires prevention, reduction and maintenance.

Prevention. You first want to prevent additional clutter from coming into your home. Typically it’s either given to you or you purchase it. Be mindful of what you allow across the threshold. Unsubscribe to catalogs and magazines you’re not reading, don’t fall victim to sales ploys in stores, and don’t pick up unnecessary freebies.

Reduction. Just like exercise helps reduce excess fat, you can make a deliberate plan to take on projects to reduce clutter. I recommend starting in your bedroom closet so that each day can begin with less stress. Then tackle your kitchen and laundry area next, since they are the “hub” of the home where most daily activity occurs. I often suggest doing a primary project each weekend, two smaller projects throughout the week that take 15 to 30 minutes, and one quick task you have been procrastinating over.

Maintenance. Once your rooms lose all of their weight, you need a plan to keep it off. Your daily systems and routines like mail sorting, dishwashing, cooking and laundry have a lot to do with clutter accumulation, so make sure you practice them faithfully. You might want to become “motivation partners” with someone who can keep you accountable to your goals, similar to having a workout buddy. Your motivation partner can also provide objectivity, which is one of the best factors to bring into the process. You’ve been looking at your stuff for too long, and your partner’s fresh set of eyes can give perspective you could never have. He or she can even have a daily check-in with you for awhile to make sure your maintenance routines stick.

One of the most common “danger phrases” we hear in my profession is: “I’ll just put it here for now.” Clutter is actually a manifestation of decisions that haven’t been made and actions that haven’t been taken so, in essence, all clutter is related to procrastination. If you are putting something here “for now,” you are putting off that decision and creating more clutter. Decide whether to keep it, where it belongs, what to do next with it or where to donate it.  Being more decisive about your stuff, your time, your information and your money is the best advice I can give you to be healthier and more organized in 2012.

By: Lorie Marrero

Certified Professional Organizer, Lorie Marrero, is the bestselling author of The Clutter Diet: The Skinny on Organizing Your Home and Taking Control of Your Life. She is also the creator of ClutterDiet.com, an innovative program allowing anyone to get expert help at an affordable price. Her organizing books and products are sold online and in stores nationwide.Lorie is the spokesperson for Goodwill Industries International, and she is a sought-after expert for national media such as CNBC, Family Circle, WGN News and Woman’s Day. She writes weekly as the organizing expert for Good Housekeeping’s Home Style blog. For more information visit, ClutterDiet.com.

February 16th, 2012

Please Help! East Islip Middle Schools Sports Fundraisers

If you are clearing out your closets and organizing as part of your new years resolution, please consider donating old clothing/linens for East Islip Middle School Spring Sports. Saturday, Jan 21st from 9am-1pm at the East Islip Middle School Auxliary Gym.

Big Buck Raffle drawing at the Applebee’s pancake breakfast Jan. 29th. The Big Bucks Raffle needs to sell out to offset the cost of Spring Sports, if you can sell raffle tickets or would like to purchase them, please contact John Carney 277-1519 or johnjesscarney@yahoo.com Please pass this information along, post it on Facebook, collect donations from friends and family. The next Booster Club meeting is Jan 10th in the EIHS Cafeteria, it costs $280 per athlete to field Spring sports. Drop off raffle tickets & money collected at the January Booster Club meeting or pick up more raffle tickets to sell. Information for these events are located at www.saveeimssports.com

DIY Home Maintenance Tips For The For Sale By Owner

Home Interior

Check for leaks in toilet water feed and tank bottom.

9 out of 10 complaints that local water utilities receive from homeowners can be traced back to leaky toilets. You can do your own quick and easy test if you suspect a leaky loo. First, take the top off your tank and put a few drops of food coloring in the water. Wait at least 30 minutes and if you see ANY color in your bowl after that time, you’ve sprung a leak somewhere and it’s time to call a plumber. 

Interior

Complete your entryway “to-do” list.

Now’s a perfect time to get these much-overlooked chores done. If your doorbell hasn’t been working all year long (and who knows how many visitors you’ve missed?) and you’ve spent most of your time on other areas of your home, find a handyman or fix it yourself. (Use that home store gift card you’re about to receive for the holiday to purchase the supplies!). Then, while you’re spending time by your front door, take a few moments to polish up the hardware out there. Your guests may not notice– but YOU will!

Lawn

Bring plants indoors to protect them from freezing temperatures.

No matter what container plants you keep on your porch or deck, if you haven’t done so already, bring them inside to an unheated area. A basement (or garage) is the perfect place to store them during a cold spell. Just be sure to take them back outside if you have a few unseasonably warm days. Switch them out like this all winter long… and you’ll be rewarded with living plants come springtime.

Selling Your Home Without an Agent or with some Assistance (MLS Flat Fee Listing Service) is a smart move.

Selling Your Home Without an Agent or with some Assistance (MLS Flat Fee Listing Service) is a smart move.

A home is listed as a FSBO (For Sale By Owner) when the owner elects to sell their property without paying or paying a fraction of the traditional commission fees to a realtor to coordinate the sale for them. It’s possible to pull off a sale without the assistance of a realtor, but it comes with extra responsibilities usually covered by an agent.

A good listing agent will typically advise you on the type of repairs or appearance upgrades that might make your home more attractive to a buyer. A good agent will also give you the facts regarding the current market value of your home.  With an FSBO, it’s wise to replace the agent’s feedback with similar critiques from another party, such as a co-worker or a friend. Try to arrange a mock viewing with a friend who has well trained “real estate eyes”, i.e. they recently bought a home, or they are in the market for one. Getting feedback from others may help you prep your home better.

You have to market the home yourself. That could entail spreading word of mouth amongst friends, family, and co-workers, taking out classified ads in papers (not cost effective) and on realty websites, or paying a realtor to get the home placed in the online Multiple Listing System (MLS). You’ll want to take good, high-resolution photos of the home at its cleanest. This is crucial; you need to showcase your home.  Curb appeal will draw buyers in and a clean pleasant scented home will help seal the deal.  Open houses can be arranged, which you also have to promote on your own or have your the Flat Fee Broker post the dates and times on all of their websites and syndicated sites.

You also deal upfront with interested buyers and their agents to schedule viewings. When an offer is made, you negotiate on your own with the buyer and/or their agent, reviewing their bid and submitting counters as you see fit. Successfully selling your home as an FSBO has a clear benefit and there’s little to no commission to pay out to an agent, so that extra 3% to 5% stays in your pocket.

Realty 123 Inc. offers several Flat Fee Programs that will save homeowners thousands of dollars as well as assist with negotiations and closing coordination for homeowners who opt for the broker assistance program.  The bottom line is our 5 STAR MLS Flat Fee Listing Service will save homeowners money.  MLS Flat Fee Listing Service is a wise and affordable solution, there is no need to utilize an over rated and over priced brokerage firm when Realty 123 Inc. communicates and cooperates will all brokers and agents to insure a positive and successful transaction.

What is your home worth? Click Here

www.LongIsland-HomeValues.com

Money Saving Tips for Homeowners This Winter Season.

Save Energy and Money with a Programmable Thermostat.

Consider replacing traditional thermostats with programmable ones. According to ENERGY STAR, the average household spends $2,200 a year on energy bills and could save $180 a year by using a programmable thermostat to maintain proper heating and cooling settings. This one’s a no-brainer, so before the winter chill settles in and decides to stay a while, call your favorite local heating and air conditioning company and schedule an installation. Your wallet will thank you.

Check weatherstripping on doors.

Do this quick test: Close one of your outside doors on a sheet of paper. If the paper pulls out fairly easily and doesn’t tear, you’re likely losing energy and need to have a professional take a closer look at the weatherstripping and caulking around your doors. Those are real dollars flying out between those gaps, so don’t delay.

Rake or blow leaves.

Okay, this is obvious. In most areas of the country, all but the hardiest of leaves have left their branches… creating a pile (and a potentially huge mess and even damaging mold) on your lawn. But did you know that these fallen leaves contain tons of carbon? And when added to those lawn clippings you saved from last summer (you did save them, didn’t you?), they make an incredibly rich compost for your soil next Spring.

$2,000 First-Time Homebuyer Grants Are Available

The New York Association of Realtors Housing Opportunities Foundation is once again offering $2,000 grants to first-time homebuyers for closing costs and / or down payment assistance.

The Housing Opportunities Foundation has entered into arrangement with The Community Foundation for the Greater Capital Region who will receive and review applicants and award grants throughout New York State.

Completed applications should be submitted to:

NYSAR Housing Opportunities Foundation

c/o The Community Foundation for the Greater Capital Region

Six Tower Place

Albany, NY 12203

For more information or for an application, Click Here

Looking For a New Home? Click Here and Search Like An Agent

Long Island Waterfront and Luxury Homeowners Can Save Thousands When Selling Their Home

Realty 123 Inc. flat fee listing service offers Long Island waterfront and luxury homeowners the opportunity to save thousands of commission dollars without sacrificing market exposure or Long Island Multiple Listing Service broker participation.  Our program includes multiple professional quality photos, video tour, virtual tour, property website, social media marketing, appointment call center, internet marketing syndication, broker reciprocity, full service broker/agent assistance, buyer assistance and much more.  You could sell your home for as little as $495. and your MLS commission fee will be no more than 2%.  This program has a customer satisfaction money back guarantee agreement.  Call Mark Hannigan today at 631-76-5959 for details and appointments.

What is My Home Worth? Online House Value Website

Are you curious as to the value of your home?  Home values are constantly changing.  Stay up to date with home values in your neighborhood.  Past sales of homes that are similar to yours will indicate what the value of your home is in today’s real estate market.  Long Island Homeowners can go to: www.LongIsland-HomeValues.com to find out what their home is worth today.  This is a Free online service provided by a New York State licensed realtor.  There is no fee or obligation.

For Sale By Owner, Find a Long Island Real Estate Pro

Realty 123 is a listed ForSaleByOwner.com Find a Pro. Realty 123 offers MLS flat fee listing services for Long Island Homeowners who want to save thousands of dollars when selling their home.  Many of our programs list your home on the Long Island Multiple Listing Service website so 22,000 plus real estate agents can help you find a buyer.   We also add your home to a wide variety of real estate syndicated sites which add valuable exposure.  Along with our Flat Fee Listing Services we offer Low Fee MLS Listing Services.  Our Low Fee Listing Services are up to 60% less then tradition commission fee structures.  We offer a 3.5%, 2% and 1% commission fee plan that is a win / win for all who are involved in the real estate transaction.  Most of our marketing plans include multiple high quality photos, video presentations / tours, virtual tour, property website, YouTube posting, Facebook posting, social media link emails, twitter and more.  Call Mark Hannigan at 631-766-5959 for more information.