Dude says he can help me get my mortgage lowered by about $500 a month. I cant find out much info on him online. here is the website:
http://docprep.net/
If anybody has heard anything about htese guys, good or bad, please let me know. Thanks!





Dude says he can help me get my mortgage lowered by about $500 a month. I cant find out much info on him online. here is the website:
http://docprep.net/
If anybody has heard anything about htese guys, good or bad, please let me know. Thanks!
My MySpace Page:
When you perform... you are out of yourself--larger and more potent, more beautiful. You are for minutes heroic. This is power. This is glory on earth. And it is yours, nightly.
--Agnes De Mille





The service provided by DocPrep is basically an extension of similar services offered by local and regional 'debt counseling' services. In essence they itemize current income versus current expenses, calculate a 'workable' set of debt repayment plans under new terms, and negotiate with lenders to accept such plans in lieu of a bankruptcy filing / foreclosure etc.
A. every person renegotiating their existing debts via 'debt counseling' services will take a major hit to their credit rating if the renegotiations involve creditors 'settling / writing off' a portion of the debt owed.
B. while it is technically true that the 'debt counseling' service may be able to renegotiate / refinance a mortgage with a monthly payment that is $500 lower per month than the current payment, it's also probably true that many additional years of payments will be necessary.





1. Some banks vary, but not by much. The general rule is, you have to be 3 months behind on your mortgage to get a loan modification. If you are current, don't even talk to your bank about a modification. If your credit is good and you have 20% equity in your home under its current valuation and it's been five or more years since you signed your mortgage, or if it's going to reset soon, talk to banks about re-financing.
2. Document Preparation Services is only selling you a pre-packaged HAMP modification package. Illegal in at least North Carolina. Never pay for something like this until the deal is done and you've actually signed the modification and the bank has approved it. Better yet, don't get three months behind on your mortgage.
Now, tell us what you really need, and maybe we can help.
XOXO
Z





OK, this is my problem:
I have a horrible mortgage. I think it was illegal to begin with. It was ridiculously high form the get-go, but we took it because we were selling one house and and needed to buy the next one or face being homeless. Our credit was (and still is) poor, but we believed with a couple of years of paying every month on time, our credit rating would improve and we could re-fi into a better mortgage.
This was a 3-year ARM. We moved in March 2006, so it started adjusting in March 2009. It has now adjusted up to almost 10%. The escrow is something like $400 or $500 a month, and the mortgage company likes to adjust it upward on a regular basis, too. They send letters every couple of years telling us that they miscalculated how much we should be paying in escrow, and our monthly payment will now be $XX higher.
Property values are falling, and even though we put 20% down on the house 5 years ago, I doubt we have much if any equity, especially when you consider that the house needs repairs and the garage is falling down.
The house is in my name only (deed and mortgage) although I am a stated income and my husband is a wage employee. There is some stuff on my credit report (repo and a furniture purchase) that will apparently never go away unless I pay it off or file a BK.
Everyone here knows what the recession has done to dancers. Add to that, I have to drive 150 miles round trip to get to work. Jan-March, there is hardly any point in even going.
No one will refinance me. I have no one who will cosign for me. We are constantly paying on the last day of the month and frequently have to borrow from our parents.
We have cut expenses to the bone. I am working as much as I can, up to 6 days (44 hours) a week. My husband works the early shift so we can be with our son. He can't pick up a second job without incurring additional child-care expenses. I pay my sitter $8 an hour, so he would have to make a whole lot to justify it.
My mortgage company is pretty un-helpful. As long as I continue to make these retarded payments more-or-less on time, I don't think they have any real incentive to help me. After all, they make an ass-load of money on me. Besides, all the calls come through a call-center in India or somewhere, and I can't understand a word anyone there says.
According to the Making Home Affordable website, I should be eligible for a mortgage modification. They do not require you to be behind in your payments; in fact being current is one of their criteria. I tried the Making Home Affordable counselors when the program first came out. The counselor told me I should just give up and sell the house.Some help.
I found this document preparation guy through Lending Tree. He was the only person to contact me from my application. As I understand it, he helps fill out the paperwork to meet the government standards. He should also help me navigate the inevitable BS when the mortgage company fucks up/loses/ignores my paperwork. His fee is substantial ($700) but then I just paid $600 for 2 years of tax preparation. If he can do what he says, I would not mind paying him. It would be worth it, to have somebody in my corner when I try to get this loan modified.
I have had encounters with other "loan modification" people in the past. They tend to want you to pay them the equivalent of 2 months mortgage, and in fact they recommend you let the mortgage get behind while you are saving up their money. I know these are scams and they frequently fail. The dude I am considering using has a different business model. He seems to be on the level. He is more like a tax preparer; he does your forms for and makes sure the numbers work out right and to your benefit.
But what I wanted to know at the beginning was:
1. How do you check up on someone like this? His business name, Document Preparation Services, is so generic that it yield dozens of results, none of which help me.
2. Does anybody know anything about this business or others like it?
3. What does his Online Business Bureau rating mean?
My MySpace Page:
When you perform... you are out of yourself--larger and more potent, more beautiful. You are for minutes heroic. This is power. This is glory on earth. And it is yours, nightly.
--Agnes De Mille





Let me ask some blunt questions given your 10% interest rate adjustment, OK ?
How much equity do you still have in this home purchase ? If close to zero then ...
How fast has your property tax escrow been rising ? If damn quickly then ...
How much has the local real estate resale value of your home declined ? ... if more than 20% then ...
this sounds like a perfect time for a 'strategic default' !!! Stop paying your mortgage ... live in the house 'for free' for the couple of years it will take to process a foreclosure ( while saving up cash in lieu of making mortgage payments ). When the foreclosure eventually happens, you'll be in good shape to either negotiate or walk away.
The key factor in my mind is your already poor credit rating in conjunction with the high and rising property tax rates ( and high and rising utility bills ) that will remain an issue even if you were able to re-fi the existing mortgage. Essentially you simply don't have enough income to dig out from under. As counter-intuitive as this sounds, you have little additional to lose but much to gain via a 'strategic default' !





That is a really sad thought.
Not that I haven't thought it myself.
I admit I don't know how much my property is worth any more. Probably its worth damn little, because we need to make some major repairs. The garage will need to be rebuilt, right from the foundation, which we didn't know when we moved here.
Part of the problem with the escrow is that either my homeowners exemption expired, or the mortgage company thinks it expired. When I filed it, the lady in the office told me it didn't expire, it was a one-n-done transaction that would stay in effect as long as I lived in the house. I only found this out yesterday, abut it would explain the unexplained increase in escrow.
I'm on my first cup of coffee now. I am going to have another and then call the making home affordable people and see what they have to say. Could be, since the program was new when I called before, the counselor was also new and didn't know what she was talking about. I am also going to call the county treasurers office and find out what the deal is with my taxes.
I am really averse to the "strategic default" option, for several reasons:
1. It will only make it harder to buy a new home, or even rent one in the future. That will stay on my credit for 7 years.
The higher costs of strategic mortgage default
2. I am already 42 years old. I don't want to start with a new mortgage in 2 years (age 44) and have to pay until I am 74.
3. I like this house. I have put down roots here.
If, OTOH, I can get this mortgage brought down to manageable proportions, I can pay off my other bills and live in peace in a house that I love. I can probably roll some of my extra money into principle and be done with all payments in 20 years or less. We will be able to retire in our 60's in a house that is paid for.
My MySpace Page:
When you perform... you are out of yourself--larger and more potent, more beautiful. You are for minutes heroic. This is power. This is glory on earth. And it is yours, nightly.
--Agnes De Mille





Please forgive me for playing 'devil's advocate', but ...
Ultimately, your net income level versus 'real' cost of home ownership ( interest rate on mortgage plus property taxes plus utility costs plus insurance costs ), plus lack of ability to save up a 20% down payment + 5% closing costs, may preclude you from getting approved for a future mortgage anyhow.It will only make it harder to buy a new home, or even rent one in the future. That will stay on my credit for 7 years
As to renting, there are already millions of people with 'strategic default' listed on their credit rating. While there may be initial complications, landlords writing new leases are primarily interested in short term ability to repay. Banking $20,000 via non-payment of your existing mortgage over the course of the next couple of years i.e. living 'rent free' in your current house while the 'wheels' of the foreclosure process slowly turn, and using part of that money to wipe out any other types of outstanding debt etc., will actually HELP you in this regard.
Most mortgage lenders are not going to allow you to do this today even if you wanted to ! Probably the best you can hope for would be a 20 year mortgage that would 'terminate' just before you reach retirement age of 65. Obviously this will have an impact on the size of monthly payments ! While this probably varies by state and by bank regulator, I do know that in NY no bank will write a new loan where the final payment date exceeds the borrower reaching age 70 !I don't want to start with a new mortgage in 2 years (age 44) and have to pay until I am 74
Again asking a devil's advocate question ... what do you plan on doing for a future income source to keep making mortgage payments 10-20 years into the future ? While there are a handful of dancers who have successfully and profitably continued to dance into their 50's, mortgage lenders are not going to count on the ability of a 40 year old dancer to maintain current earnings levels over the 20+ year term of a new mortgage loan / refi.
The ongoing cost of property taxes are not going to be brought down ... if anything they will increase over time. Same goes for utility bill costs. Same goes for homeowner's insurance costs. Same goes for home maintenance costs ( where your garage issues already appear to be a 5 figure albatross ). And it's also highly probable that higher federal and state income tax rates are going to reduce the number of after tax dollars available to you. And from the lower amount of after tax dollars you will be bringing home, you'll first have to pay higher grocery bills etc.If, OTOH, I can get this mortgage brought down to manageable proportions, I can pay off my other bills and live in peace in a house that I love.
Another devil's advocate point that needs to be raised is that, due to the dire need of both the US federal gov't and state gov'ts to increase tax revenues, for at least a year now serious proposals have been floated in Washington to end the tax deduction for home mortgage interest payments. See . So any American homeowner must ask themselves what will happen to their overall family budget if the loss of their home mortgage interest tax deduction were to actually take effect 2-5-10 years from now ... thus decreasing their net after-tax income level by $2k-$5k-$10k per year ? Are they still going to be able to continue making the next 20 odd years worth mortgage payments ( which won't decrease as the result of the change in tax deductibility ) ?
Devil's advocate point here is that if you are having problems being able to afford living in this house under current economic conditions, and were only able to afford living in this house via an unsustainable artificially low mortgage interest rate plus temporary property tax subsidy, refinancing is only going to 'kick the can down the road'. A very high percentage of refinanced mortgage loans under similar conditions simply result in a second default a few months or years down the road. And given current real estate value trends, a few months or years down the road your property resale value will be even smaller versus the outstanding balance of your mortgage loan.
I would also point out that, in most cases, where original mortgages were 'non-recourse' refinanced mortgages are now 'recourse'. What this means is that if you default on your original mortgage the worst that can happen is that the mortgage lender will reclaim the mortgaged property. However, a future default on a refinanced mortgage could mean that not only does the mortgage lender reclaim the property, but also comes after you to pay the $50k-$100k-whatever 'deficiency' will actually exist between your outstanding refinanced mortgage balance and the actual amount of money the lender is able to recover via a 'distressed' sale of the reclaimed property !!! Non-recourse versus recourse is a VERY BIG DEAL ... and represents a huge new personal risk factor ( which many refinanced homeowners did not discover until they were forced to default on their refinanced mortgage ).
From what I was able to discover on the net, the only non-recourse refinancing alternative in the state of Illinois is to use the HAFA program.
from
(snip)"To put the Home Affordable Foreclosure Alternatives Program (HAFA) in context, we need to discuss the two primary alternatives to foreclosure.
Deed in lieu of foreclosure at a glance
In a deed in lieu of foreclosure, the property owner gives the property to the lender voluntarily in exchange for the lender canceling the loan. The item transferred is the deed to the property. The lender promises not to initiate foreclosure proceedings, and to terminate any foreclosure proceedings already underway. The lender may or may not agree to forgive any deficiency balance that results from the sale of the property.
An overlooked downside to deeds in lieu of foreclosure in general is the possible forgiveness of the deficiency balance. However, under HAFA, participating servicers must forgive the deficiency balance for a deed in lieu of foreclosure.
Under federal law, a creditor is required to file a 1099C whenever it forgives a loan balance greater than $600. This may create a tax liability for the former property owner because it is considered "income." The Mortgage Forgiveness Debt Relief Act provides tax relief for some loans forgiven in 2007 through 2012."(snip)
(snip)"Home Affordable Foreclosure Alternatives (HAFA)
HAFA alternatives are available to all HAMP-eligible borrowers who:
1.Do not qualify for a Trial Period Plan
2.Do not successfully complete a Trial Period Plan
3.Miss at least two consecutive payment during a HAMP modification; or
4.Request a short sale or deed-in-lieu.
HAFA is complex with numerous guidelines set by the Treasury Dept. These new guidelines do not apply to loans by Fannie Mae, Freddie Mac, FHA or VA because these programs have their own short-sale programs that vary from HAFA.
HAFA provides incentives to mortgage lenders (servicers), seller, and other lien holders. There are deadlines that the mortgage lender and subsequent lien holder have to follow to provide timely progression on the sale of the property. HAFA simplifies and streamlines the short sale and deed in lieu process by providing a standard process flow, minimum performance timeframes, and standard documentation.
HAFA details
A HAFA overview provides a description of the current guidelines plus has the latest documents borrowers need for the short sale or deed-in-lieu of foreclosure. A 45-page HAFA Supplemental Directive 09-09: Home Affordable Foreclosure Alternatives – Short Sale and Deed-in-Lieu of Foreclosure Update provides detailed information.
As mentioned, servicers need not participate in MHA, HAMP, or HAFA, though most do. However, the reality of the deadlines depends on the rigorousness of the servicer to implement the provisions.
The Treasury Dept. picked Freddie Mac to serve as the compliance agent and Fannie Mae as program administrator. The guidelines for payments is still under development by Fannie Mae as this was written.
Regarding credit reports, the servicer still may report to the consumer credit reporting agencies (i.e., Equifax, Experian, and TransUnion) the account as "full file" status. The 45-page document mentioned above contains further details on the credit reporting.
HAFA for existing borrowers (sellers)
Homeowners selling their homes with a deed in lieu of foreclosure or short sale will benefit from a more streamlined process that includes deadlines the servicers must follow, and a $3,000 payment to cover relocation expenses. Also, borrowers must receive disclosures of costs and net proceeds the servicer requires. The HAFA eligibility requirements are the same as the original HAMP.
The bank or financial institution servicing the mortgage (called a "servicer") must respond to a reasonable offer within 10 business days of receipt of all the required documents including the signed purchase offer and Request to Approve a Short-Sale (RASS). The servicer still has the option to reject the offer. However, this timeline will improve the chances of the borrower and purchaser to finalize the sale quickly.
Closing will occur in no less than 45 days, unless all parties agree to a shorter timeline. The most important provision for the borrower is that if the servicer participates in the HAFA program, and the first and second lien holders accept the incentives, then there can be no deficiency judgment. As with any other debt forgiveness, the servicer will issue any deficiency on IRS Form 1099C and may be taxed as income."(snip)
The overall devil's advocate point here is that, under current law, it's still possible to 'walk away' from an underwater home mortgage situation without a tremendous amount of damage to credit rating, without being pursued by the mortgage lender to repay the 'deficiency' between the outstanding home mortgage loan balance and the actual 'recovered' value of the property long after you have been evicted from the mortgaged property, and without having to pay income taxes on any amount of actual outstanding home mortgage balance 'deficiency' that is 'forgiven' by the mortgage lender ( which the IRS normally considers to be 'income' to the borrower ) . Legally speaking, this 'window of opportunity' is set to close at the end of next year.
Unless something miraculous were to happen in the way of increased household income, it would appear that refinancing would only 'kick the can down the road' to the point where, a couple of years from now, further declines in dancing income of future increases in property taxes / utility bills / income taxes etc. you'll find yourself right back where you started i.e. not able to make monthly payments on time and not being able to afford necessary home repairs. However, if you miss the current 'window of opportunity', you may also find that it's no longer possible to 'walk away' from your refinanced mortgage without having your mortgage lender attempt to garnish salaries to pay for the 'deficiency', or without having to pay an additional $10k-$20k-$30k in income taxes on the amount of oustanding mortgage loan balance that the lender 'forgives' ! Given that property values continue to decline plus the condition of the property is deteriorating ( due to your inability to afford necessary repairs ) thus making the eventual 'deficiency' grow larger with every passing month, the farther you 'kick the can down the road' the worse the eventual financial consequences are likely to be. 'Walk away' while it's still legally possible to do so !
~
Last edited by Melonie; 06-10-2011 at 03:45 AM.





Colleen,
What is the difference between your monthly house payments and what it would cost to rent a suitable apartment for you? If there is a big difference, I really think you should consider renting instead. I think 10% is outrageous for a mortgage. If I was in your position, I would tell the bank to either lower the interest to a reasonable level, or I would walk away and rent.





(snip)"Squatter Nation: 5 years with no mortgage payment
NEW YORK (CNNMoney) -- Charles and Jill Segal have not made a mortgage payment in nearly five years -- but they continue to live in their five-bedroom West Palm Beach, Fla. home.
Lynn, from St. Petersburg, Fla., has been living without paying for three years.
In Thousand Oaks, Calif., an actor has missed 30 payments, and still, he has not lost his home.
They're not alone.
Some 4.2 million mortgage borrowers are either seriously delinquent or have had their cases referred to lawyers to pursue foreclosure auctions, according to LPS Applied Analytics. Of those, two-thirds have made no payments at all for at least a year, and nearly one-third have gone more than two years.
These cases can go on and on. Nationwide, it takes an average of 565 days to foreclose on borrowers in default from their first missed payments to the final auction. In New York, the average is 800 days and in Florida, where the "robo-signing" issue is particularly combative, it's 807.
If they want to fight evictions hard, borrowers can remain in their homes even longer while their cases are being worked through.
The Segals have been doing that -- in court. They bought their home in 2003 with an adjustable rate mortgage. After a few years, their monthly payments tripled to $3,000, just as their home-inspection business was cratering.
The Segals want the bank to modify the mortgage so payments are affordable, and they think the court will agree that their lender put them into a toxic loan.
"The evidence will show that we were defrauded," said Jill Segal."(snip)
(snip)The topic of Americans living mortgage-free in foreclosed homes on which banks do not have proper titles is nothing new - in fact we are surprised that there isn't a robosignature app for that...yet. Neither is the fact that this ongoing reverse capital transfer provides as much as $50 billion in "rental" income for those same squatters. And while the ethical arguments for strategically defaulting on one's mortgage can get very heated on both sides, one thing is certain: the ongoing foreclosure crisis is creating a new subclass of "entitled" people, who certainly enjoy living on the back of the banks, while not paying one cent, and not vacating the premises. According to a new article by CNNMoney, some of the excesses observed within this latest demonstration of unearned entitlement are truly staggering"(snip)
(snip)"For now there has not been much dissent with this type of behavior. However, when banks openly turn the tables and make it all too clear that they have absolutely underreserved for this kind of behavior and will very soon need a TARP 2.0, funded by everyone else, but certainly not the squatters, according to whom they dont' have two nickels to rub together, the question will be: will the general population, and here we reference the increasingly more endangered middle class, blame the banks again... or will it turn on itself?"(snip)
from





Illinois is a recourse state. Strategic default may not be the best idea in the world. Your lender can still pursue you for the deficiency after the foreclosure sale.
Legal options- Talk to a lawyer with your local legal aid society. They generally have a program called mortgage foreclosure defense project sometimes abbreviated MFP. Have them review your documents and see if you are in a "predatory" loan or not. Even if not, they may have options for you that you are not aware of. The legal aid lawyers are the best in every state when it comes to mortgage foreclosures. Also ask them about modified "cram downs" in bankruptcy. In North Carolina, if the lender has a security interest in anything beyond the real estate, the loan can be divided in bankruptcy between that which is secured by the real estate and everything else. Everything else is subject to being treated as an unsecured debt and thus can be "crammed down" to fit into a plan. Also, legal aid societies generally have income and asset limits for their services, those are generally waived in the mortgage foreclosure area.
Good luck.
XOXO
Z





Talking to a lawyer is definitely a good idea.





As pointed out in my snippet, making use of the federal HAFA program to execute a 'deed in lieu of short sale' transaction with the mortgage lender is the only legal way to avoid the effects of lender recourse. In Illinois and other 'recourse' states, the specific provisions of federal HAFA law barring lenders from pursuing defaulted mortgage borrowers for the 'deficiency' between their outstanding mortgage loan balance and the actual value of the property that is recovered at short sale / auction supercedes state laws which allow it. Also, for the next year at least, other federal law bars the IRS from attempting to collect income taxes on the 'forgiven' mortgage loan balance 'deficiency'.Illinois is a recourse state. Strategic default may not be the best idea in the world. Your lender can still pursue you for the deficiency after the foreclosure sale
As stated in my later snippet, engaging an attorney or local legal aid group gives the added advantage of delaying actual foreclosure / eviction proceedings for additional months or years ... during which time the defaulted mortgage borrower can live in the property 'rent free'. However, because of the limited time factor of the HAFA law and IRS ban on considering 'forgiven' mortgage loan 'deficiency' amounts as taxable income, one must measure what they stand to gain ( additional months of 'rent free' living ) against what they potentially stand to lose if they postpone beyond the end of next year ... i.e. getting hit with attempted collection of $50k-$100k-whatever amount of 'deficiency' by the mortgage lender AFTER being evicted from the property, getting hit with 30%-40%-whatever income taxes by the IRS on the $50k-$100k-whatever amount of 'forgiven' mortgage loan 'deficiency'.
Again let me emphasize that the 'window of opportunity' for walking away from an underwater mortgage without too many negative financial side effects is limited ... specifically limited to the end of next year. Given the potential hue and cry that would arise if the US congress attempted to overturn existing HAMP / HAFA laws before then, this is unlikely to be cut short. But on the flip side, federal budget arguments and potential media backlash are likely to prevent the US congress from passing any extensions. As such, the 'best' situation under the circumstances is to 'time' the actual HAFA deed in lieu of short sale transaction to occur in the fall of next year. Given that the average processing time for foreclosure proceedings is now around 565 days, this means that the OP would have nothing additional to lose and a whole lot of avoided mortgage payment money to gain by defaulting on her mortgage payments immediately !!!
As Zofia points out, there is also a possibility that a 'cram down' adjustment to the OP's existing mortgage might be possible ... either under the HAMP program or via a bankruptcy court ruling. There's actually little risk involved in pursuing the HAMP route beyond deliberately defaulting on mortgage payments in order to qualify. The other route obviously involves filing for bankruptcy ... which would probably become a necessity if HAFA is not successfully utilized thus allowing the existing mortgage lender to hit the OP with $50k-$100k-whatever worth of mortgage balance 'deficiency' charges after being foreclosed upon which the OP does not have the income / means to repay.
As painful as this realization may be, the new banking regulations which were put into effect a couple of years ago as the result of the 'first round' of subprime mortgage defaults has essentially forced all 'self-employed' persons ( i.e. stated incomes that are not verifiable or predictable ) to be treated as high risk borrowers. As the OP has discovered, this is making the approval for 'new' loans / refi loans both difficult to obtain and expensive in terms of high risk interest rates if approved. As such, in 'real world' terms, any 'self-employed' person who is now in a situation where their ability to continue making on-time mortgage loan payments under existing loan terms is questionable is essentially exposing themselves to personal financial risk / liability for the declining value of their real estate ( via a future lender 'recourse' judgement / collections once the borrower defaults ). This fact essentially means that many 'self-employed' mortgage borrowers are already technically bankrupt ... it's just that the 'next shoe' has yet to drop re ARM interest rate resets / rising property tax escrow payments etc. HAFA laws allow a short 'window of opportunity' to avoid this personal financial risk / liability for declining value of their mortgaged real estate ... and thus the potential need to file for bankruptcy. Obviously the most difficult part is to acknowledge their true financial situation and take action which will minimize the negative financial consequences before the 'next shoe drops' while they are still legally able to do so !!!
~
Last edited by Melonie; 06-11-2011 at 12:07 AM.





What I was originally after was the Home Affordable Loan Modification plan. It is paart of the same law as the HAFA plan. In Fact, HAFA is for poeple who do not qualify for or flunk out of the Modification plan.
I did decide to go with the document prep guy, although I am fully aware I could have attempted to do this alone. Hubby and I decided together that we would pay the dude to do our documents for the same reason we pay the tax lady--we wanted and needed professional help.
I am not going to refinance my house, nor am I going to move, foreclose, sell, or be evicted from it. Instead, the HAMP program will allow (force) my lender to change the terms of my loan. The interest will be reduced to about 2%, the principle will be reduced by about $3000, and the term of the loan will be extended to 40 years. This will bring my monthly payment down to a managable 31% of my and hubby's combined income, which is what the law says it has to be.
I was never concerned with the resale value of the house. I don't actually care if I am upside down in my mortgage. This is the house I want to retire in. My main concern has always been being able to stay here and pay off the mortgage.
Oh, and to correct a mis-perception about the HAMP program: You do not purposely "get behind" in order to qualify for this. That is a LIE that is being told by some scam artists. They then advise you to pay them their fee (which conveniently happens to be about 2 of yur house payments) out of the money you "saved" by not paying your mortgage.
Actually, you are supposed to be CURRENT on your mortgage when you apply for HAMP.
My original question was, how do I check this guy out and see if he is legit. Eventually I looked at his BBB and Online business bureau rating, did a google search on him, and asked a bunch of questions. I could have called a different doc prep service and asked how much they would charge for the same service, but I did not think of it until later. I am satisfied with what I was asked to pay.
My MySpace Page:
When you perform... you are out of yourself--larger and more potent, more beautiful. You are for minutes heroic. This is power. This is glory on earth. And it is yours, nightly.
--Agnes De Mille





^^^ seriously, I wish you all the luck in the world in getting a HAMP loan modification approved.
Obviously, you need to be wary of the 'fact' that participating in the HAMP trial period automatically results in you 'falling behind' in your mortgage payments as far as the credit reporting agencies are concerned ...
(snip)"How HAMP-Modified Loans are Being Reported Now
Many servicers are reporting the modified mortgages to the credit bureaus as a “rolling 30-day late” while the modification is in its trial period. (The “trial period” is generally a three month period during which the homeowner must make all payments on time under a proposed modification plan. If the homeowner does so, he or she will be offered a modification under HAMP.) Homeowners are deemed “delinquent” during the trial period because the modified payment amount is less than the original mortgage payment amount, but the homeowner is not yet officially in the modification program. So, the credit reporting system interprets this as the homeowner’s making a partial mortgage payment each month. Consequently, a new 30-day late is reported each month during the trial period. Some servicers have told homeowners they are required by the Treasury Department to report the modified mortgages this way."(snip)
from
(snip)"story appearing in the New York Times, Peter S. Goodman reported that out of 650,000 homeowners who had been offered “trial modification” of their mortgages, fewer than 2,000 had been given permanent modifications.� Originally, 3 to 4 million homeowners were to have been helped by the HAMP program.
Goodman quoted Senator Jeff Merkley, D-Ore., as expressing “frustration” with HAMP.� “Very few people have emerged from the trial period,” said Merkley.
Alan Zibel of the Associated Press wrote about the HAMP program on December 1, 2009,�saying that the Obama administration plans to�pressure mortgage servicers into extending real modifications to homeowners in trouble.� However, Zibel’s article quoted administration officials and mortgage industry spokespersons as blaming homeowners for HAMP’s shortcomings.� In their view, homeowners had failed to submit required documentation to the mortgage servicers, who then had no choice but to deny the requested modifications.
None of the sources referred to here discussed what could be the real reason for the astonishingly small number of modified mortgages: most mortgages owed on the homes of American consumers are owned by securitized trusts.� The trustees of these trusts may lack the authority to compromise on the amounts due under the terms of the mortgages.� Having no authority to modify these mortgages, none are being modified.� Instead, meaningless “trial modifications” are being offered as window dressing.� Thankfully, the real story is beginning to emerge."(snip)
However, as I posted earlier, there is really not much to lose by pursuing the HAMP program. Even if the trial period doesn't result in a successful modification, you'll be in a perfect position to execute a HAFA 'deed in lieu of short sale'. The only meaningful negative associated with a HAMP program filing from a legal standpoint is future complications involving your 'right' to file for bankruptcy protection ...
(snip)"Add to the false hope the fact that the changes to the bankruptcy laws from the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA) make it difficult to file an emergency bankruptcy.
Specifically, BAPCPA requires that the debtor undergo pre-filing credit counseling before his bankruptcy can be filed. Failure to do so results in the bankruptcy being dismissed."(snip)
... and the only meaningful negative associated with the HAMP program from a financial standpoint is failure to 'pocket' as many months worth of ( unpaid ) mortgage payment money before eventual foreclosure if the HAMP mortgage modification is not approved.
Well, actually, where 'self-employed' persons are concerned, there is another potentially very meaningful negative associated with filing a HAMP application where the original mortgage was based on a 'stated income' level that wasn't exactly accurate ...
from
(snip)"The reason why I asked about the income is because if the income was overinflated on the original application, executing a 4506 can give the lender the opportunity to verify income which could evidence stated income fraud. Mortgage fraud in the inducement of a loan can effect recourse even on purchase transactions. It can also cause the liability not to be dischargeable in bankruptcy. I've heard that some files that involved HAMP modification applications are being audited. I just mention this as a caution.(snip)
(snip)Just basically giving people a heads up to tread lightly when stated income fraud can be revealed by signing a 4506 in connection with a mod. In these instances, I recommend referring the borrower to an attorney first, and getting the attorney's blessing before proceeding with the loss mitigation request."(snip)
^^^ the mortgage broker's point is that some mortgage lenders who are on the verge of being 'forced' to concede principal reductions and/or loss inducing low interest rates as a result of a HAMP modification are now using the possibility of stated income mortgage fraud on the original mortgage loan application / approval as grounds to deny HAMP approval. If successful in their attempt to 'derail' a HAMP modification on those grounds as a result of new financial investigation authorized by the borrower's signing of a new 4506 form, having the original mortgage being legally declared to be 'fraudulent' can expose the mortgage borrower to all sorts of 'new' headaches ... from potential 'recourse' by the mortgage lender including immediate issuance of Notice of Default with subsequent foreclosure and eviction, to potential IRS audits of past years' reported versus actual income levels.
However, as long as the amount of stated income on the original loan application is 'verifiable' via comparison to the amount of income actually reported on the mortgage borrower's tax returns for the same year the mortgage was originated, there shouldn't be any legal opportunity for the mortgage lender to attempt using potential stated income mortgage fraud as a means to avoid HAMP approval, and no 'new' problems should arise for the mortgage borrower.
At any rate, please keep us posted as to your progress !
~
Last edited by Melonie; 06-11-2011 at 02:12 AM.





Colleen, good luck getting a loan modification! Let us know if the document preparer is legit. I hope he/she is, for your sake.
XOXO
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