Loan Modification - Home Mortgage Loss Mitigation Process - www.ModificationHotline.com

Go to Loan Modification Interview - Part 2

Announcer: Good morning it is 11:05 am, do you know where your home equity is?
Welcome to the Velocity of Money. Here now to answer your questions about real estate, capitol, equity, funding, and finance, your host of the Velocity of Money, Michael J Barnes

Michael: Welcome to the Velocity of Money you are listening to KFNX 1100 and once again one of my favorite guests Mr. Brett Fallon. Brett thanks for being here

Brett: thanks for having me.

Michael: Brett has brought with him some updates on the economy and how things are changing theses days and he brought some great information to discuss with you. We talk about all these different things in the economy and let's be honest there are a lot of problems out there no one can dispute that the unemployment rate is the highest it's been in many year with Fannie Mae, Freddie Mac AIG being taken over by the government Lehman brothers Bear Sterns, WAMU, Countrywide all gone, banks and insurance companies getting their bailout the auto industry is the next one to get a bailout we're already working on our second stimulus package. 95% of the people according to President elect Obama are going to be getting a tax cut soon. Where is all of the money for all of this going to come from? It just seems to be a downward spiral. Brett's got some great insight on this that he wants' to talk about and some more unfortunately a little bit more dismal news, just want you to know before you drive off a cliff there is light at the end of the tunnel We are going to talk about that so Brett, why don't you share a little information if you could.

Brett: Yeah, I would be happy to, you mentioned a couple of things in your opening comments and one was about the market seems to be anticipating bad news and it certainly surprising it was a pretty significant down day on wall street again today, most of that was attributed to two things. Retailers such as Best Buy and Macy's came out with their projections for consumer spending. Best Buy actually said something to the effect that it is the lowest level of consumer spending that they have ever experienced in the history of their business.

Michael: and Best Buy is actually one of those that is going to stick it out

Brett: and Best Buy is actually one that hopefully will stick it out as we know Circuit City is filling for bankruptcy. The other thing that you mentioned was jobless rate has climbed the number has definitely increased the NEBR is the government agency that is responsible for reporting when a recession begins and when it ends. They call it. They officially have not called one but I think every reasonable person believes that we have been in one and probably have been in one for some time already.

Michael: so right supposedly there is some technical factor that says this is a recession that doesn't mean that we flip the switch and boom here we are out of the recession is that right?

Brett: That is absolutely right and in hindsight is how they judge that time of when it started and when it comes to an end and it's usually several months after the fact, but it remains to be seen We believe we are in a recession but we are going to talk about a couple of things that people are feeling this economic crunch and what they can do about it. Specifically as it is regarding their home ownership and their mortgaging a couple of interesting things that came out, Secretary of the Treasury Hank Paulson today made an announcement this morning regarding a change in the governments, they call it a rescue plan. Others call it a bailout

Michael: that's the 700 billion dollar thing right?

Brett: That's the 700 hundred billion dollar thingies

Michael: that most people are not happy with

Brett: Yes, and apparently Wall Street is unhappy with the changes that took place, pretty significant. The idea at the time this legislation was passed in congress and ultimately signed by president bush into law was to use the funds to buy the bad assets mortgage backed assets from banks and lending institutions they changed that and recanted that today, Hank Paulson specifically announced that they are no longer going to be using those funds that The current plan calls for 250 billion dollars of the 700 billion to be used to buy stock of those banks and financial institutions

Michael: Question for you Mr. Fallon, Does Hank Paulson does he need to get approval for this?

Brett: One of the things that have been discussed all week long has been was the fact that that as this legislation was passed and approved is that he has full power to make these types of decisions without the benefit of it being discussed through congress and those traditional channels. He is currently the most powerful man in the world.

Michael: He has the whole checking account to himself to decide what the best distribution of those funds is.

Brett: It certainly appears that way and apparently he changed his mind and announced it today.

Michael: well, in the past we have talked a lot about loan modifications and since the first time we started talking about loan modifications the whole space has changed. Everything about loan modifications since our very first broadcast talking about it, we don't talk about it every week, but we do talk about it allot. It has changed so much, when we started anybody who had a significant hardship or financial hardship or had one of these toxic mortgages that had adjusted would be able to qualify for a loan modification. These things have changed all of a sudden and not all across the board, Brett you made a comment earlier that people are concerned that once these servicers do these modifications they could be subject to lawsuits right?

Brett: Yes, it is amazing how quickly things have changed over the course of the last couple of weeks, it seems this information and this news is changing almost hour by hour at this point one of the things that came out regarding this mortgage modification program is from Barney Frank," Congress should act to restructure the servicing of home mortgages." So the idea is that they are catching on to something that you and your team at velocity financial were ahead of the curve on in terms of loan modifications. Knowing that those rules for a hardship and why you are entitled to one have definitely changed. Now it is more of a situation where in order to stop foreclosure to stop the problems associated with this mass foreclosure market place. Modifications are being talked about amongst the banks now. Barney Franks comments today he stressed how these voluntary inducements to get theses private entities to protect homeowners form The government has fallen short and Hank Paulson has fallen short of putting their weight behind this concept. Although I personally believe that is the next evolution of this. Loan Modifications are a critical step for people who are feeling this economic crisis and for people who want to stay in a home, for people who need this type of assistance. The idea is you have a short window of opportunity here before something else significant changes were you may no longer be entitled to you heard a group, you know this we talked about it, Citigroup came out and made the announcement that they were going to suspend their pursuit of foreclosures in certain areas of the country that have the highest unemployment rate that was the caveat. We will see how big the scope of that gets but the whole idea is for you as a mortgage owner as a home owner with a mortgage If you need to establish a modification to an existing loan in order to have more favorable terms in interest, a more favorable monthly payment, a way to keep that home, you have to look at this option.

Michael: Yes, and I appreciate you saying that one of the things that Citigroup announced they were going to be doing was giving people teaser rates of 1%. Look anybody with a brain can realize that, that is ludicrous. What got us into this situation in the first place was huge banks just like that one giving people toxic mortgages with fake interest rates and pick your own payment do whatever the heck you want to, is exactly what they are trying to do again. Essentially what they are talking about is giving people a short window of a very low interest rate but they are going to be back in the same situation in the future. That's why the loan modifications that we do that we hire on your behalf the national network of attorney's that we use. We go for the throat we are not looking to get you a 1% interest rate for the next 12 months We are looking to get you a lifelong or for the term of the loan if possible the very lowest interest rate available and fix it or extend the term so you can actually sustain that payment well beyond the short term if you should happen to be one of those people falling prey to all of the economic woes. I want to real quick give the information out the website is ModificationHotline.com One thing I want to point out before we have to go to a break if you know of anyone out there, that has a GMAC mortgage whether it be a GMAC first mortgage or second mortgage you have got to tune in to the second segment you are not going to believe this scam that's out there gong against people with these loans so stay turned to the velocity of money and KFNX