CAN’T REFI? MODIFY™
Loan Modifications 

I’ve been sending updates on the market, housing tips, financial tid-bits, etc over the years. At one point or other you have probably attended or registered for one of my Short Sale or other Financing Seminars here locally in Houston. As I have covered in these seminars, I am helping my clients and my referral partner’s clients save their homes through the Loan Modification process.

As you are probably well aware, banks are going under and those still in business are doing all they can to keep their portfolio of loans in good standing. A portfolio of non-performing assets is a major factor which prohibits lenders from raising more capital to write more loans. This is the major contributing factor of the liquidity crunch that has put many TOP lenders out of business in the last year.

This could be a great opportunity for you to help those you know. Whether you’re a financial advisor with clients struggling to make ends meet or a realtor trying to help a client from the foreclosure process, this might be the best news your client has heard lately.

What is Loan Modification?

• Reduction of rate, terms and possibly loan balance of the first and/or second loan.

• Starting with a clean slate and new loan with the current lender to get back on track.

• A means for the lender to help clients avoid falling behind on their payments and ultimately saving 10’s of thousands of dollars in legal fees avoiding foreclosure.

Who is a candidate?

• Homeowners with recent hardships that make coming up with that monthly mortgage payment difficult.

• Homeowners who find themselves in distress and want to avoid a short sale, Foreclosure or Bankruptcy.

Who is not a candidate?

• Homeowners who can afford their payments but are upside down.

• Homeowners who have too much equity.

How can Jay Pirotte Help?

I work with a network of attorneys in all 50 states who negotiate directly with the loss mitigation departments of the lender. This ensures the client is represented by a professional who has extensive knowledge of civil codes, knows the steps, properly prepares and packages the documentation to fast-track each case.

It is true that clients can do this on their own. They could also sell their home without the assistance of a Realtor, but should they take that chance? Something this important needs to be done right the first time as they may only have one shot.

This is not a legal loophole. Most lenders are willing to work with homeowners to keep them in their home. This is a very real and successful program that is not only helping homeowners keep their homes and credit intact, but helping to stabilize our housing markets and contribute to the eventual turn around in consumer sentiment.

Please touch base with me if you or anyone you know may benefit from this program.

Regards,

Jay Pirotte

832-594-5368

jay@yourbestloan.net

I get asked this question all the time so I thought this articles was a very good choice to share with all of you. Call me for your customized cost of waiting analysis.

Sure, housing’s in a hole. But there’s a potent case for buying now, whether it’s real estate or stocks!

Source: Article from Time Magazine

Famed Money Manager Peter Lynch is perhaps best known for his timeless wisdom that you can beat the pros by focusing on stocks of companies where you either work or shop or have some other edge. But a more relevant Lynchism today is this gem: Ignore the headlines. That’s no easy thing. How do you tune out all the chatter and ink on recession, housing, subprime woes, the credit crunch, rogue traders, insolvent bond insurers, $100 oil and nukes in Iran? It’s enough to make you sit on your thumbs and wait before making any big moves, but what, exactly, are you waiting for?

There has rarely been a moment in history when you couldn’t scare yourself into doing nothing. And yet, as Lynch observed nearly 20 years ago, “in spite of all the great and minor calamities that have occurred… all the thousands of reasons that the world might be coming to an end-owning stocks has continued to be twice as rewarding as owning bonds” atop reason to not buy stocks, in Lynch’s view, is if you don’t already own a home-in which case that should be your first investment, since an owner-occupied home is nearly always profitable. Through a spokesman, Lynch reaffirmed these views to me housing debacle and all.

When prices are falling, few people have the discipline to buy stocks, a house, gold, art or any other asset. But those who do pull the trigger excel in the long run. As John D. Rockefeller famously said, “The way to make in the streets.” and the streets are stained crimson.

Start with stocks they have been pummeled this year. GDP braked sharply last quarter and there has been plenty of panic about a recession. The Federal Reserve is slashing short-term interest rates at the fastest rate in decades. But if you stick to your steady, diversified plan while everyone else is retreating, you will be happy years from now.

For one thing, Fed rate cuts always lift the economy eventually, and the stock market typically starts responding just as headlines get gloomiest. Sure, the market could fall again

For one thing, Fed rate cuts always lift the economy eventually, and the stock market typically starts responding just as headlines get gloomiest. Sure, the market could fall again

As for housing, certainly some skepticism in order. Formerly sizzling markets in Florida, Nevada, Arizona and California probably haven’t seen the worst headlines yet, though they may well be close and “Jumbo” mortgages, those more than $417,000 are likely to remain artificially high for a few more months while banks work through their credit issues. But let’s say you are emotionally ready to be a homeowner. You have good credit, plan to stay put for five years and have been waiting for the perfect entry point. Its time to get serious- before an inevitable rise in interest rates wipes out your advantage. “The thing that will make home prices stop falling is the very same thing that will push mortgage rates higher,” says Jim Svinth, chief economist at mortgage firm Lending Tree.  So anything you gain by a further drop in prices might be offset by risingfinancing costs. 

Consider a typical home that sells for $400,000. You put down 20% and get a 30-year fixed-rate mortgage at today’s rate of 6.375%. Monthly principal and interest come to $1,996.  Let’s say that 12 months from now the same house goes for 10% less, or $360,000. But by then the recession is history and the Fed is jacking up rates to stem inflation. If mortgage costs rise .75%, to 7.125%, your monthly payments would be $1940 and you would have saved almost nothing. Meanwhile, home prices might steady and sellers might become less willing to negotiate. And you have spent a year living someplace you would rather not be. 

It’s more complicated if you must sell before you can buy. But that logjam won’t persist forever, and if it appears you’ll be trapped for a few years, try to refinance at today’s lower rates. Risks always seem most acute when the headlines give you ulcers. But that’s exactly when you should think long term and get off your thumbs. 

Conclusion:   If you waited a year to buy, you would have saved very littlespent a year living some place you’d rather not be, and missed out on ayear’s worth of tax benefits from owning real estate

Kevin Price, Host of the Houston Business Show (M-F at 11 AM on CNN 650) announced that Jay Pirotte has joined the program as a Business Show Advisor.  

Jay Pirotte is a 15 year veteran in the Lending business with over 2500 transactions. Through this he has proven himself to be an expert in his field. Jay and his team at Ball Park Mortgage have a system set in place to ensure the clients get the very best loan in the country regardless if he closes the loan or the competition does.

They believe that if they can show the true cost of each loan and people can see how it all works over time then they can make a more informed decision. According to Jay, “ A lot of lenders like to talk about how low their fees are or how great their rate is, but no one wants to talk about Total cost, Total cost lets you see how the each loan really stacks up over a specific period of time.”

Jay and the team at Ball Park Mortgage invite anyone looking to make a decision on a mortgage to take their Total Cost Challenge free of charge so that they know with out a doubt that their loan is the best for their specific situation. Small changes in your mortgage can have huge effects on your net worth.