But how can this be?      Let’s look at several key issues:

Interest Rates are Down

If rates for 30-year fixed-rate mortgages are at 6.5 percent–about where they were not too long ago–your monthly payment for a principal and interest on a $300,000 mortgage would be $1,896.

But suppose financing is available at today’s rates, perhaps 5.5 percent. Now the monthly cost of principal and interest is $1,703 principal and interest.

In other words, when those interest rates are compared , you could get the same loan for $193 less per month and you could qualify with much less income per year. Lower rates mean more people can qualify for given levels of financing–and that more people can borrow additional dollars.

National Trends

Much is made of national trends and with good reason: national trends are easy to track, get lots of attention and provide useful benchmarks.

That said, national trends do not reflect a baseline reality: real estate is local. If the local population is growing, if the nearby job base is increasing, if nearby new home starts are not sufficient to meet demand and if mortgage rates are low, then you can logically expect local home values to rise over time. It’s not a guarantee–there are no guarantees–but price increases in such situations are at least reasonable.

Perspective

We live in an era of measures, numbers and statistics. For instance, the September jobless rate, according to the Bureau of Labor Statistics, reached 4.5 percent, up from 3.9 percent a year earlier.

But did you also know that while 7 million people were unemployed, 135.2 million had jobs? Did you know that a 4 percent unemployment rate is considered “full employment” by many economists?

As a nation, we’ve been doing so well for so long that any blip on the economic radar tends to get noticed. That’s fair and we should be concerned. At the same time, let’s not ignore the whole picture. Most people are doing well–and will continue to do well.

We’re Having a Recession

A recession is not a hideous event. It’s a slow-down, not a depression. National economies move up and down, so recessions are normal–we had them in 1973, 1980, and 1991. But even with the current slow-down, we still have a $10 trillion economy.

Most people have jobs today and will have jobs tomorrow. Will there be tough times in certain industries? Absolutely. Will some communities be hurt? Yes. But you need to ask what a recession means to you. Have you lost your job? Is your job in jeopardy? Is your household income about to decline?

If no, then what about your housing needs? If you need to buy a first home, if you would like to move up, what objective barriers stand in your way?

It’s true that some prospective buyers will delay purchases because of the current slow-down–and for some buyers, postponement makes sense. But the issue is not what other people are doing, it’s the question of what’s best for you given your particular circumstances.

At the very least, review your personal finances, check mortgage rates, take a look at your local marketplace and consider your needs. You may find that now is indeed a very good time to be a buyer.

Today’s Rates: May 02, 2009

Conforming - The rates in Mortgage Rate Monitor may include conforming loan amounts that may not be applicable in your area. Conforming loan amounts for certain loan products have increased in federally designated metropolitan areas.
FHA - Loan limits vary by county.

				Conforming Loan Rate								FHA
				40 Year Fixed		30 Year Fixed		20 Year Fixed		15 Year Fixed		30 Year Fixed
		Interest Rate		6.625%		4.875%		5.125%		4.625%		5.0%
		APR		6.827%		5.086%		5.416%		4.989%		5.645%
		Monthly Payment		$861.86		$767.36		$966.98		$1,118.53		$893.53
		Payment Term		40 YEARS		30 YEARS		20 YEARS		15 YEARS		30 YEARS
		Loan Amount		$145,000		$145,000		$145,000		$145,000		$151,000
		Prepaid Finance Charges		$2,000		$2,000		$2,000		$2,000		$1,700
		Down Payment		20%		20%		20%		20%		3.5%

Be aware that mortgage rates can change without notice and apply only in certain conditions. The rates shown here assume that you’re purchasing a single-family primary residence and include 1 origination point and a 60-day-lock.

Your loan’s rate depends on several factors. Your final interest rate will vary based on financial market conditions, the specific characteristics of your loan transaction, as well as your credit profile up to the time of closing.

The Monthly Payments shown here don’t include homeowners insurance or property taxes. Because these items are typically paid each month, it could increase the amount of your loan payment.

For the Conforming Loan, if the down payment is less than 20%, mortgage insurance may be required on the loan, which also increases your monthly payment and the APR shown here.

FHA loans require both an upfront and an annual mortgage insurance premium. The upfront fee is $2,642.50. The annual premium varies based on loan program, loan purpose, your loan-to-value ratio and the loan term. For the FHA loan, a mortgage insurance payment has been added to the monthly principal and interest payment displayed above.

By Terry Smiljanich:

A growing number of homeowners around the country are using a foreclosure defense the Consumer Warning Network first told you about in June of last year.  It’s called “Produce the Note,” and we want you to know this is not a mere technicality that should be treated lightly by the lender or by the Court.

Everyone needs to understand the importance of the issue. When a lender can’t “produce the note,” allowing a foreclosure to proceed puts the homeowner at risk of owing that debt again to another party.  So great caution must be taken before a judge can allow someone who can’t “produce the note” to cash in on your home.

Can’t Produce the Note - What Happens?

So, what happens when the lender tells the Court it can’t produce the original note, because it is lost?

Let’s start with the basics. If a lender wants to foreclose on a property, it has to be able to show that it is, in fact, the appropriate person to whom the money is owed. That right to foreclose belongs ONLY to the person who has legitimate POSSESSION OF THE ORIGINAL NOTE - not a copy, not an electronic entry, but the original note itself with the signature of the person who allegedly owes the money.

So if you are faced with a foreclosure, you have every right to demand that the person trying to take your property, first, prove to the Court that it has possession of the original promissory note.

What the Lender Must Do

What often happens, however, is that the lender claims it doesn’t have the original note, because that note has been lost or destroyed. What does the law require the lender to prove?

The “Uniform Commercial Code” is a set of laws governing commercial transactions that many states, such as Florida, have adopted. It contains a specific provision on this subject (Section 3-309) which states that a person can enforce a promissory note without having the original, BUT only under certain limited circumstances.  All of the following must be proven:

1. The person has to claim that it no longer has the original note;
2. The person has to prove that it was properly in possession of the note and entitled to enforce it WHEN it lost possession of the note;
3. The person has to prove it didn’t “lose” possession simply because it transferred the note to someone else (i.e., it’s not really lost); and
4. The person has to prove that it cannot produce the original note, because the instrument was destroyed, or its whereabouts cannot be determined, or it was stolen by someone who had no right to it.

All of these matters have to be proven by the person trying to foreclose on the property. It is not the obligation of the borrower to prove or disprove any of this.  The borrower can challenge the right of the person trying to foreclose and demand proof.

The Court’s Important Role

It is up to the Court to determine whether the lender has satisfactorily explained why it no longer can produce the original note. The Court also has to be satisfied that when the original note was lost, the person trying to foreclose on the property had possession of the note at the time it was lost. Until the Court has been satisfied of all of this, the foreclosure cannot proceed.

It is also important for the Court itself to understand that this is not merely a “technicality,” and the judge should not be satisfied with anything less than full proof of this issue. Why? Because the Court itself needs to appreciate the fact that if it agrees that the original note has been legitimately lost and it allows the foreclosure to proceed without the original note, it is the borrower who is still at risk.

Why? Because incredibly, even if a Court has found that the original note is lost and the foreclosure sale is finalized, if someone later turns up with the original note and proves that it is the proper holder of the note, and not the person who foreclosed on the property, the original borrower is STILL LIABLE.

That’s right. Someone took your home, and the Court allowed it because it believed that the lender proved that the note was lost and it was the proper party. Then someone legitimate shows up with the actual note and you still owe that person the money even though your property was taken with the blessing of the Court. How fair is that!

If you ever find yourself in Court without a lawyer, be sure to bring all of this to the attention of the judge. It might help open the Court’s eyes to the care with which everyone should proceed.

• How to use “Produce the Note” in Non-judicial Foreclosure States
• Produce The Note “How-To”
• “Produce the Note” Dates Back to 1600’s
• Success Fighting Foreclosure with Produce the Note
• Homeowners say “Produce the Note” to Stop Foreclosures!
• Homeowners’ Rallying Cry: Produce the Note

Fight Foreclosure: Make ‘Em Produce The Note!

Using the “produce the note” strategy is something all homeowners facing foreclosure can do. If you believe you’ve been treated unfairly, fight back. We have created templates for a legal request, a letter to your lender and a motion to compel to help you through the process.  Read the step by step “how to” under the videos.

Special note:  In some states, a lender can foreclose on your home without going to court.  These are called non-judicial foreclosure states.  You can still use the “Produce the Note” strategy in these states, but it takes a few more steps on your part.

WHO OWNS THE NOTE?

Your goal is to make certain the institution suing you is, in fact, the owner of the note (see steps to follow below). There is only one original note for your mortgage that has your signature on it. This is the document that proves you owe the debt.

During the lending boom, most mortgages were flipped and sold to another lender or servicer or sliced up and sold to investors as securitized packages on Wall Street. In the rush to turn these over as fast as possible to make the most money, many of the new lenders did not get the proper paperwork to show they own the note and mortgage. This is the key to the produce the note strategy. Now, many lenders are moving to foreclose on homeowners, resulting in part from problems they created, and don’t have the proper paperwork to prove they have a right to foreclose.

THE HARM

If you don’t challenge your lender, the court will simply allow the foreclosure to proceed. It’s important to hold lenders accountable for their carelessness. This is the biggest asset in your life. It’s just a piece of paper to them, and one they likely either lost or destroyed.

When you get a copy of the foreclosure suit, many lenders now automatically include a count to re-establish the note. It often reads like this: “…the Mortgage note has either been lost or destroyed and the Plaintiff is unable to state the manner in which this occurred.” In other words, they are admitting they don’t have the note that proves they have a right to foreclose.

If the lender is allowed to proceed without that proof, there is a possibility another institution, which may have bought your note along the way, will also try to collect the same debt from you again.

A Tennessee borrower recently had precisely that happen to her. Her lender, Ameriquest, foreclosed on her in July of 2007. About three months later, another bank sent her a default notice for the mortgage on the house she just lost. She called to find out what was going on. After being transferred from place to place and left on hold for lengthy periods of time, no one could explain what happened. They said they would get back to her, but never did. Now, she faces the risk of having her credit continually damaged for a debt she no longer owes.

FIGHT FOR FAIRNESS

This process is not intended to help you get your house for free. The primary goal is to delay the foreclosure and put pressure on the lender to negotiate. Despite all the hype about lenders wanting to help homeowners avoid foreclosure, most borrowers know that’s not the reality.

Too many homeowners have experienced lender resistance to their efforts to work out a payment structure to keep them in their homes. Many lenders bear responsibility for these defaults, because they put borrowers into unfair loans using deceptive, hard-sell practices and then made the problem worse with predatory servicing.

Most homeowners just want these lenders to give them reasonable terms on their mortgages, many of which were predatory to begin with. With the help of judges who see through these predatory practices, lenders will feel the pressure to work with borrowers to keep them in their homes. Don’t forget lenders made incredible amounts of money by using irresponsible practices to issue and service these loans. That greed led to the foreclosure crisis we’re in today. Allowing lenders to continue foreclosing on home after home, destroying our neighborhoods and our economy hurts us all. So, make it hard for your lender to take your home. Make ‘em produce the note!

STEPS TO FOLLOW

A. If your lender has already filed suit to foreclose on your home:

1. Use the first form. It’s a fill-in-the-blank legal request to your lender asking that the original note be produced, before it can proceed with the foreclosure. In some jurisdictions, the courts require the original request to be filed with the clerk of court and a copy of the request to be sent to the attorney representing the lender. To find out the rules where you live, call the Clerk of Court in your jurisdiction.
2. If the lender’s attorney does not respond within 30 days, file a motion to compel with the court and request that the court set a hearing on your motion. That, in effect, asks the judge to order the lender to produce the documents.
3. The judge will issue a ruling at your hearing. Many judges around the country are becoming more sympathetic to homeowners, because of the prevalence of predatory lending and servicing. In the past, many lenders have relied upon using lost note affidavits, but in many cases, that’s no longer enough to satisfy the judge. They are holding the lender to the letter of the law, requiring them to produce evidence that they are the true owners of the note. For example:

• In October 2007, Ohio Federal Court Judge Christopher Boyko dismissed 14 foreclosure cases brought by investors, ruling they failed to prove they owned the properties they were trying to seize.

B. If you are in default, but your lender has not yet filed suit against you:

1. Use the second form. It’s a fill-in-the-blank letter to your lender which also requests they produce the original note, before taking foreclosure action against you.
2. If the lender does not respond and files suit against you to foreclose, follow the steps above.

ALL CONTENT IN THIS POST HAS BEEN PROVIDED, WITH PERMISSION, BY  http://www.consumerwarningnetwork.com/

If you have been served with FORECLOSURE papers or you are behind in your payment, please feel free to call me anytime and I will help you any way I can.

Dawn Olson, Realtor, PME, RCC, CNHS

Bennett Commercial, LLC

815-735-9594

Suppose you’re behind on your house payments. You dial the phone number on your most recent mortgage statement, clear the usual hurdles, and finally reach someone who understands your situation and offers to help. You are one of the lucky homeowners who has a cooperative lender. Now what? What can you do to team up with your lender to optimize the outcome? This blog post reveals ten ways you can expedite the process and negotiate an affordable loan modification that enables you to catch up on any missed payments, lower your monthly mortgage payment, and keep your house.

The following 10 tips apply whether you are working directly with your lender or teaming up with an attorney, law firm, or other professional you hired to represent your interest. If you hired professional representation, team up with your representative and defer all correspondence and phone calls from your lender to your representative – don’t communicate with your lender unless your representative specifically advises you otherwise.

1. Come clean – honesty is the best policy

It can be tempting to bend the truth when you are trying to convince a lender to approve a loan modification. Some homeowners are embarrassed by something they did to place their finances in jeopardy – possibly a gambling addiction of substance abuse. Others try to fudge the numbers to make themselves eligible for a loan modification they cannot otherwise qualify for. Even worse, some homeowners lie to their partners or try to conceal the problem until it is too late to do anything about it.

Only by laying all your cards on the table and disclosing the truth can you begin to attend to the root cause of your financial hardship and then develop and implement solutions that put you back on the path to long-term financial health.

2. Understand your lender’s point of view

Regardless of how you ended up in the situation you’re in, blaming the lender or the mortgage broker or loan officer who placed you in your current mortgage does little good, unless you can prove your point in court. Usually, you have a better chance of resolving the problem by understanding your lender’s point of view, even if you don’t agree with it. So, what is the lender’s point of view?

Lenders lack any emotional attachment to the situation. To them, it all boils down to money. If you can show them that modifying your loan cost them less than a foreclosure and they believe you will honor the terms of the loan modification, they are likely to approve it. If not, then they are likely to reject it.

Keep in mind that some homeowners who don’t need loan modifications are also applying for them. Lenders need to protect their own interests from homeowners who are trying to cheat them out of their profits. As a result, they need to carefully screen out ineligible applicants, which can often make the process much more difficult and frustrating for homeowners who genuinely suffer financial hardship and need a loan modification.

3. Keep a cool head

Understandably, homeowners often become frustrated and angry when seeking assistance from their lender. Unfortunately, anger can result in the following:

• “Accidental” disconnects: The customer service rep you’re speaking with may put you on hold permanently or hang up “accidentally.”
• Lost files: Your file may get “lost” or “misplaced.”
• Rejection: Your lender may decide that you are unreasonable and that foreclosing would be less costly overall.
• A bad offer: Your lender may offer a workout solution that is worse than what you would get had you been nice about it. Or, you may be so exhausted that you agree with the first offer your lender puts on the table rather than negotiating a better deal rationally.

Tip: If you doubt your own ability to remain calm, cool, and collected during the entire process, consider hiring a professional to represent you.

4. Give them what they need

Prior to applying for a loan modification, call your lender or visit its website to obtain an application packet or a list of items you need to submit with your application. Some lenders allow you to apply online, but you usually have to ship or fax supporting documentation separately.

Find out exactly which forms you need to fill out and which documents your lender needs to process your application, and provide everything to your lender or representative in the manner specified. Label everything clearly and legibly with your name and loan number and provide a checklist of all items you’re submitting in your application packet. Arrange the items in the order listed by your lender, so whoever is processing your application does not have to search for items. Include a cover page that in large print lists your name and loan number as well as an items-included list.

5. Ask for what you want

Before discussing the terms of the loan modification with your lender, you should have a fairly clear idea of what you want and need. Answer the following questions for yourself. This will help you field questions from your lender:

• How much do you owe in late or missed payments?
• Can you catch up the missed payments?
• Do you need additional time to catch up on missed payments?
• How much can you realistically afford to pay each month?
• Do you really want to keep your home or would you prefer to sell if you could walk away not owing anything?

State clearly what you want up front. If your lender is unwilling to agree to the terms you need, you’re better off knowing that up front, so you can explore other options. Don’t waffle – it will only lead to misunderstandings and unsatisfactory “solutions.”

6. Let them do their job

While you should track the process of your loan modification application and any negotiations, avoid the temptation to micromanage the process. Knowing the timeline in advance can help you develop realistic expectations of when you will hear back from someone, so you don’t have to keep calling to check progress. Remember, the more time they spend on the phone consoling anxious applicants, the less time they have to review your application and work out a solution.

The lender should have a timeline for just about every step in the process. Your lender can probably even tell you how many days it takes for items you fax in to get to where they need to be. Some lenders have a 4-day delivery period for faxed items. Most timelines are in place because of the volume of requests. Ask how long the steps in the process take. Follow up when timelines near expiration.

7. Get your financial house in order

Most homeowners, even those who can readily afford their monthly house payments, could benefit from reviewing their income and expenses and drawing up a monthly budget. If you don’t have some way of tracking income and expenses with realistic goals in mind, put a tracking system in place today and start developing a budget.

If you have a computer, a personal accounting program, such as Quicken or Microsoft Money can come in very handy. These programs allow you to assign each entry to a specific category, such as groceries, clothing, entertainment, utilities, auto insurance, auto: gas, auto: maintenance; and so on. You can then generate reports showing monthly totals for spending in each category.

If you’re budget challenged, consider hiring an accountant or credit counselor to get you on track. It’s worth the investment.

8. Keep everyone posted of any changes

If anything changes related to your financial situation, be sure to keep your representative or lender (if you’re negotiating the loan modification on your own) in the loop. Withholding information that may affect your eligibility could cause problems.

9. Make sure the lender’s offer is truly affordable

Assuming you qualify for a loan modification, your lender will present you with an offer. Be sure to review the offer carefully and have your attorney look it over – before you sign on the dotted line. Make sure the monthly payment is truly affordable. If the loan modification is unaffordable or makes your budget so tight that you’re only one car repair or medical bill away from defaulting again, head back to the negotiating table to try to work out a better deal. It doesn’t do you or your lender any good to accept an agreement that puts you on the path to repeating this same scenario.

10. Hold up your end of the bargain

By the time you finalize your agreement, you and your lender will have invested a great deal of time and effort in hammering out the details. To ensure long-term success, put some effort into keeping your budget on track. If you are having trouble, consult a credit counselor, who can help hold you accountable for your spending. Budgeting can be tough at first, but it pays huge dividends down the road. Most people who acquire the necessary skills discover that by tweaking their spending priorities they have more than enough to cover their expenses.

The key to success is discipline and commitment. All the effort you spend setting up a plan is of no use if you don’t follow the plan you created. It’s like signing up for a gym membership and then never walking through the doors to work out. Reestablishing your financial health will be work, but the results will be worth the effort. Like that gym membership, you won’t realize results over night, but commitment to the routine will pay off.

Remember, loan modification success is a team effort. Do your part to achieve long-term success.

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