Loan Modifications That Worked

Cases with angry homeowners suing lenders over their foreclosures have been all the rage over the past few days, and I don’t expect it to slow down anytime soon. However, there are some organizations that managed to get homeowners the hope of a home loan modification they were searching for. The numbers were higher than many of us thought, but we often forget that things are different and possibly even better outside of where we live.


Hope Now published its final numbers showing that 1.76 million homeowners did in fact get the opportunity to apply for and receive a permanent loan modification. More than half a million of these were completed using the HAMP program (Home Affordable Modification Program), and the other portion was done by mortgage loan servicers. This sounds better than what we were hearing; the stories that servicers were telling homeowners they couldn’t help them were pretty sad, leaving families in a horrible financial position without hope.

The number was higher in 2010 than it was in 2009, and that’s great news! Because mortgage payments are the highest payments families have, maybe we should take a look at modifying everyone’s mortgage? By reducing this larger payment, we can help homeowners reduce their overall monthly payments, because they will be able to allocate more money to the rest of their debt. This could be the start of a healthy trend of debt reduction overall, don’t you think?

-Mayer Dallal

Does the Government Pay to Prevent a Foreclosure?

In the midst of all the foreclosures there have been nearly half a million loan modifications done. The success is right around 40%, which is good although we would really like to see it get higher. The only way it would get higher is if banks aggressively solicited modifications instead of waiting for borrowers to get to them. It seems that the families are having to make the first move these days, no matter how deep in they are in the loan.


It has been said that the average cost per modification is a little over $50k. Where does this figure come from? The figure is simply a part of what goes into doing a mortgage modification, and includes everything from the people hired to do the job, to the filing of paperwork, the fees that the bank would eat and some other miscellaneous costs. It sounds like a lot per loan, but let’s face it, we can’t have families put out on the street. The families should have gotten help extended to them in the first place, but there was no real solution in place. Ever see the movie “It’s a Wonderful Life”? That says it all.

-Mayer Dallal

Is There Mortgage Modification Fraud?

Families across America are catching onto the mortgage modification programs that are available today, but with information overload it’s hard to know who to trust.




Last year, one in six families defaulted on their home loans and felt they had nowhere to turn. The truth is that there are options available today so that families don’t have to worry anymore. There are some things to look for when trying to find an expert that can walk you through the whole process.



The biggest concern that I have is that the consumer needs to know the truth. While everyone can seek out these options, the truth is that there are only a small percentage of people that qualify for a mortgage modification. The challenge when doing a modification is the debt to income ratio target, which is at 31%. While this would be ideal for everyone, the bank may not to be able to get every home owner qualified under those guidelines. So, keep your eyes open for predatory schemes and people that are enticing you to believe that there are no guidelines and they can help you.



Foreclosure operations are popping up across the country and make promises they can’t deliver on. Don’t believe that someone can save you from your troubles; there is a process for everything. If it sounds too good to be true than it probably isn’t true!



Call me for more details, or visit my website at www.inlandempireshortsaleresource.com, or call me directly at (310) 498-2700.