Fixing Your Mortgage Mess

Prepare an Umbrella before the rain.

most people can't see trough future, or the past, they stay at the present. most of them believe the best moments stays forever.

If I dealing with the financial institution, I'll always take the fixed rate. it'll give you many financial advantage. lets say, the rate goes up like today, I was safe in my shell, but when the rate goes down I'll refinance the property for the better rate.

the key factor is planning. like Sun Tzu said over 2500 years ago, wise general only move his troops when the winning is guaranteed.

Most people are not ready for change. that's the problem

We are no more than innocent children who believed everything will be ok day after day. it's like a drunk who believed that alcohol is the only solution for their problems.

The richest country in the world has turned into the worst spender. we beat the Japan at 1945, and now . . . .it's like David against Goliath

History repeating himself. IBM insulted by the young Microsoft cause the giant refuse to change, Google beat Yahoo, Microsoft, & others cause the Giants underestimate Internet. and much more, the history is full of Davids who beat Goliaths stories.

The Goliath used an old traditional heavy equipment against David who used a light, effective and more efficient tools. when David became bigger and stronger, he feel really comfortable and turn into Goliath, until one day another David kick his ass.

How about you Donald ? are you David or Goliath ? do you believe in change ? how can you anticipate change ? will you change when everything looks OK (remember the IBM vs Microsoft story ?) ? are you dare to do something really new ? something that never been tested before ? If you are the CEO of IBM at that era, what would you do ? would you listen to the young Bill Gates to go to the new PC market ? and now as the president of Trump Organization, what would you do ?

Sincerely

Zhuge Liang

We agree.

But one point: The people that are having this type difficulty in the mortgage payment structure with it's payment mess; really fail to understand: Are Budgets. Why?

Excellent topic and a good point Mr. Trump.

I've flipped a few houses and help people here and there when I can. The key, as you've said before, is get in good with a bank. Get them to trust you.
They don't want the collateral, they want $$

Here are some other tips I give people with mortgage problems:

- if you end up filing for bankruptcy and the bank forecloses on you, immediately try to get them to sell it back to you. If only until recent you've been good at paying your mortgage (and you still have your job), they may look at you and see that now you can afford the house because all your debt has been wiped clean.

- banks are less forgiving to borrowers who try to hide their problems until the last minute. Be up front with them. Some tend to cooperate more with you if you let them know at the first sign of trouble.

- lenders rarely reduce their loan balance so it might be better to hit them up with extending payments to try and lower your monthly payments

- if you pay principle and interest, see if they would consider restructuring your loan to an interest only so that it may be more affordable for you. However, interest only loans suck ;)

- if the house is a rental house and you have a tenant paying you less than what the cost of your monthly mortgage payment is (i.e. you owe $1500/mo and tenant is paying $1200/mo), ask them if they would pay $1500/mo provided in a year or two they can own part equity in your house. It's better to share the equity with someone rather than lose the house all together.

- filing bankruptcy often times can help fix your mortgage mess. Although that's the last thing you want to do, the courts may consider the "upside down" portion of your loan as "unsecured debt" and it can be written off - thus your mortgage balance is lowered.

Just some thoughts . . .

John
ceo and founder of eVentureBiz
http://www.eventurebiz.com

Thank You for these words of encouragement.

Thank you so much for this advice. We had a low, fixed rate mortgage. We kept in touch with
the bank and refinanced as was suggested. Big mistake. The attorney who "helped us sign
the papers" was not there representing our best interest. He was hired by the mortgage
company and therefore represents the bank. At the time of the closing, I strongly advised
against this transaction. Because my name was not included on the primary mortgage, he
told me I have nothing to say about it. Fast forward... The mortgagee unexpectedly dies.
This has been my home too for seven years. I have an uphill battle, but my goal is to work
with whoever I have to, to stay in my house.

Good advice. Thanks to John for his tips. There are a lot of people out there trying to keep their homes. Many can't find the people to talk. Many years ago, my Mom found herself trying to raise 7 kids alone on a much lower salary than when my parents bought the house. She talked to her bank and was able to keep the house until the last child was through high school. This shows the advantage of dealing with a bank with people in it rather than some mortgage company that simply collects payments and has no power to negotiate.

Mary Rose's Garden,

That's awesome that the bank worked with her. I find sometimes that smaller banks that get to know YOU are more inclined to help you when in need; whereas, big lenders - well, many times you're just a number.

I wonder what Mr. Trump's favorite bank is? If you're reading this Mr. Trump, what bank would you recommend to a friend who's middle-class and needs a $300k mortgage?

Mr. Trump, your advice is excellent. There is one thing I would like to add however. I have seen people on TV that claim they have talked until they were blue in the face to the banks and could get no help. That's because they let their their situation get so bad that their credit ratings fell apart. If you find yourself facing an impossible mortgage payment because you gambled on one of those sub-prime mortgages, etc. you have one more option, one most people don't like to do or think about. Get a second job if you have to! It's not forever. Keep your credit rating up and the bank will be a lot more forgiving and the interest rates are dropping fast so you can get a fixed rate mortgage low enough to keep your house! I know this doesn't work for people who have been unfortunate enough to become ill and can't make their payments, but for first time buyers that are young and inexperienced, you need to do whatever is necessary to keep up your credit rating to dig yourself out. Don't give up. Sell anything, pawn anything to keep afloat long enough to refinance. I know this sounds like a tough road, and it is, but it's your life, and your house. Do what's necessary, and keep your integrity while you are at it.

The trouble is that most people cant refinance or even sell because the value of their home has dropped so substantially. Not only are they going behind, but they now find themselves upside down on their loan to value. Also, the peoples stories who "claim" ,as you say, to have tried to contact the bank without avail are most likely true. Many banks and servicers are being investigated by various agencies including the states attorneys for deceptive business practices. The lender tells them that they will not modify their existing loan if they make payments. In order for a modification to be considered, they MUST be behind, which causes a mess with their credit. The mortgage company is overwhelmed with the amount of requests and substantial time goes by, causing the borrower to get further and further behind.
Many of these people, including myself, are responsible, hard working folks. This is happening to those even in a 30 year fixed whos value is so much lower now than their mortgage amount its become a losing investment.
In 1996 I purchased a house in plainfield for 180k I sold that house 10 years later in 2006 for 316k. Fast forward 2 years to 2008 brand new homes in plainfield are again selling for 180k.
When I purchased my current home for 340k in 96, I put a substantial amount down. Within less than 2 years my value is 250k. I have lost 85k in value in less than two years putting me upside down. Keep in mind that this is a market "correction" not a temporary downslide. Therefore the possibilty of my homes value going back up to its value of 2 years ago anytime relatively soon is probably not happening. This isnt the stock market where value goes up and down substantially minute by minute. This is the real world of real people who are losing their **s ! They didnt purchase a home, which you are always told is your "best investment", thinking the value would plummet! NO ONE would purchase if people knew that!
My money is gone and I am paying on a home that isnt worth the paper the mortgage note is written on. I have been in touch with my mortgage company continually..literally HUNDREDS of calls, nothing has been done. I have enlisted the help of a not for profit advocacy agency, nothing has been done. We cant even reach, have our file assigned to, get a name or extension of, anyone at the servicer that we need to talk to. I have owned a home since age 21, I am now 43 and I have NEVER until this point, been late on a mortgage payment. 2 years ago I had PERFECT credit and NO DEBT, even with having 5 children! So I have to tell you that thinking the mortgage company would rather keep you in your home is definately not always true. They dont have the incentive to do so now with the bail outs, state funding for foreclosure purchases etc. THAT is a sure deal that protects the lender and sends you packing having lost all you invested, which they of course get to keep. So PLEASE, dont try to simplify a very complicated problem..its just not that simple. Of course there are some bad apples out there, but the vast majority in this situation are good, honest people...unlike the lenders and investment companies who need to be spanked...HARD!

We all know that life is full of twist and turns, and now that we are facing economic challenge; many people find themselves dealing with problems pertaining to their monthly mortgage payments. With tough economic times like what we are experiencing now, most of us are looking for ways on how to earn money and meet our payments. These days, reverse mortgage market is booming; a reverse mortgage could be your saving grace if you qualify for one. Many of you are wondering about the difference of a typical mortgage and a reverse mortgage. In typical mortgage, you borrow money in lump sum right at the beginning and then pay it back over a period of time while in reverse mortgage; you pledge a property you already own. A reverse mortgage is where a qualified individual, basically receives a loan of most of the equity of the home that they own. Essentially, they are cash advance loans. To qualify (in the U.S.), you have to be at least 62 years of age, so it really is only for seniors, and the original mortgage on your home must be completely paid. Typically, a person who gets one is looking to retire on the money, or already has. If the reverse mortgager goes to a retirement community, dies, or sells the home, the proceeds of the sale go to the reverse mortgage company. Read more at http://personalmoneystore.com/moneyblog/2009/03/17/mortgage-time-chan...