Maria Said

Archive for August, 2009

I wanted to use this heading for one of my print ads but the publisher and my account rep thought it was “too negative”. With identity theft being the fastest growing crime, we must all become more aware of what personal information we divulge to strangers.
When you apply for a home loan, you are in essence turning over your wallet to a stranger by providing a copy of your driver’s license and social security card (effective 2003 as a result of the Patriot Act). What’s more, you will also need to provide information on your income and assets, and because a credit report from all 3 reporting companies is required, your credit history becomes part of your application.
Most of us were raised to be trusting individuals so we trust that our private information doesn’t end up in the wrong hands, in the hands of dishonest people and criminals. If this were true, why is identity theft the fastest growing crime?
When you fill out a loan application online or you receive a phone call about refinancing your home, who is at the other end? Do you know these companies and who works for them? How many employees have access to your personal information? What kind of screening process do they use for hiring people? Do they ever allow temporary help for filing, answering phones, etc? Could you meet them in person or find them if there is a problem? How do you know they are who they say they are?
We need to be proactive in protecting our identities. Ask questions that can be verified. Use reverse phone and address lookups to check that someone didn’t start business last week and is working from a cell phone. Check the company’s ownership and licensing through your state records. Check with the Better Business Bureau for an acceptable record. Not having a record with the BBB isn’t necessarily a good thing as it probably means they haven’t been doing business long. Mortgage companies are ranked #10 for number of complaints with the Central Florida BBB.
I’m betting that no one who read the introductory question and answered “yes”. No, they wouldn’t trust a stranger to hold their wallet but they would trust a stranger with their financial and personal information.
I would love to help you with your home loan. I’ve been a Windermere homeowner for over 11 years and you can check me out via all of the sources I’ve listed. Call me if you want information on how to access public records and check me out. The person that does your home loan is going to know a lot about you and you need to know a lot about the person doing your home loan.

The Home Affordable Modification Program (HAMP or HMP Fannie Mae Announcement 09-05R) allows home loan servicing companies modify home loans to make home ownership more affordable for financially troubled borrowers. This can be achieved by lowering the interest rate as low as 2%; amortize the loan amount up to 40 years; and reducing the principal amount of the loan.

Is anyone getting these modifications?

Bank of American announced that they have modified loans that have saved financially troubled homeowners as much as $823 million or an average savings of $195 per month. On my current Bank of American loan, this would mean an interest rate reduction of less than 1% without changing the loan term or principal amount. Bank of America has received $52.5 BILLION in TARP money but admits to helping taxpayers to the tune of less than $1 billion!

I personally know of only one person who has received a decent loan modification offer. Litton Servicing offered to drop his 9.25% to around 5%. I’ve checked with friends and business colleagues and they don’t know of ANYONE who has been helped.

Please let me hear from you if you are a loan modification success story. I think we’re all ready for some good news!