Since the beginning of this housing market breakdown, I’ve struggled to answer questions regarding who to turn to for help for people who are at risk of losing their homes. I’ve seen first hand, many “modification specialists” who ask for upfront money to help homeowners reduce their interest rate, lower their principal balance or both. The majority of the time, the people making these promises take your money with little or no help at all. I’m certain there are success stories out there (I’ve heard of a few); however my suggestion is to hold on to your money and take an hour or two to review all of the information on Fannie Mae’s new web site: Knowyouroptions.com. It is the best site I’ve seen to start researching the possibility of a short sale, modifications, deed in lieu or even a “deed-for-lease”. The website has many other well-defined options that you can consider. First step, go to the “Resources” tab to find out if Fannie Mae owns your loan.

You can also go to the following website to see if Freddie Mac holds your loan: makinghomeaffordable.gov/loan_lookup. If Freddie or Fannie do not hold your loan, it may be difficult to figure out who’s the investor. For instance, you may be making out your check to Chase (the Servicer) and Deutsche Bank may hold the note (the investor). And yes, Chase will probably not tell you who owns your loan. This useful site also reviews options on how to “stay in your home” or how to “leave your home”. Currently I am hearing about more short sales as an alternative to foreclosure. The short sale is a much better solution. A foreclosure will keep you out of the housing market for 7 years as opposed to the 2 years of a short sale. I’ve seen the best results coming from Realtors who are working together with you and your lender’s “Loss Mitigation Department”. Once a short sale package is completed and submitted, you want to be in constant contact with the negotiator who is responsible for making a decision on your file. Julie McCoy and John Santarini, of ReMax Accord, in Lafayette, work together with their clients to keep constant pressure on the lender by calling the negotiator every day or two to find out where they are in the process. I’m certain that these negotiators are more responsive when a Realtor creates a positive relationship with them. Squeaky door gets the oil…

To conclude, Knowyouroptions.com will help you get in touch with a HUD approved Housing Counselor. At no charge for services, a counselor will help you assess your circumstances, identify your options, provide you with local resources and prepare you to talk with your mortgage company. They’ll also help you with the documentation that you will need to provide your lender. It certainly is not pleasant to get involved in the process of taking action to correct your housing situation, but it is imperative that you do something if you are in trouble. Knowyouroptions.com is definitely worth checking out.



-Peter Paredero, Senior Mortgage Consultant for Land Home Financial Services Inc. has resided in Pleasant Hill since 1994.

925 787-8746

pparedero@lhfinancial.com