AboutDiann and Glen Tonnesen Expertise My husband and I have been selling real estate in the Las Vegas Valley for over 24 years, and have personally helped over a 1,000 familes call Las Vegas home. We can answer any questions you might have on buying or selling new or resale homes, condos, high rises, and vacant land. We are also mortgage brokers and can answer financing questions as well. In addition we have the number one ranked site on Google for Las Vegas real estate which contains over 400 pages of information on buying and selling real estate in Las Vegas, Henderson and Boulder City. Check out our Las Vegas related web sites at:
Experience We have been licensed in Nevada since 1983 and have personally sold well over 1,000 homes. Previously we worked with Century 21 for 16 years locally and were ranked as the top agents in the state and region, as well as within the top 20 of all Century 21 agents nationally. Currently we work for Prudential Americana Group Realtors and are ranked in the top 10 of all Prudential agents nationally for number of homes sold.
Publications CNN, PRWeb, Las Vegas Review Journal, multiple real estate blogs
Education/Credentials college
Awards and Honors Ranked within the top 20 of all Century 21 sales associates nationally numerous years
Ranked within the top 10 of all Prudential sales associates numerous years
Multiple years ranked as top agents in our various offices
Quality service award winners multiple years
I am a 63 year old legal assistant. My firm went bankrupt in June. I am fighting for my unemployment. Summer is not a busy time unless you are a bankruptcy paralegal in the legal field. I am pretty confident that I will get a position this month.
I notified my mortgage co., Citibank, over 30 days ago of my situation through the government sponsored Home Preservation Group. I presently have an ARM at 4.75%. I understand that under a loan modification you can get a 2% 30 year mortgage. Do I need to hire a private party to get this going? I don't think I should have to and really can't afford it.
I have never been late on a mortgage payment in my life. My mortgage is not upside down. I purchased my home in 2002. I have not made my August or Sept. mortgage payments. I spoke with a counselor about a month ago but nothing else has been communicated re: the loan modification. I have only received a notice re: nonpayment of mortgage.
I am receiving Social Security, actively seeking work. I have never disclosed to the mortgage co. that I have roommates. What do you suggest the best strategy in order to get a loan modification.
Your assistance is greatly appreciated.
ANSWER: Dear Cheryl, So sorry to hear about your company going bankrupt. So many people are unemployed in our economy these days, it is scary.
You do not need to hire a private company to do a loan modification, but it takes real perserverance to do one on your own. It can literally take six months to get one approved, and there are no guarantees. You need to speak with your loan company yourself, not through the Home Preservation Group. Ask to speak to the loss mitigation specialist that has been assigned to your file. You will need to have ready your hardship letter detailing why you are unemployed and can no longer afford the payments, the last two months of bank statements for all your accounts, the previous year's tax returns, a year to date statement of income, and a detailed accounting of all your monthly expenses including mortgage payment, credit card payments, car and health insurance, food, clothing, utilities, and any other bills you pay on a regular basis.
As far as interest rate, I have not heard of anyone getting a modification at 2% that was documented, though rumors are running rampant. (I have also heard rumors of banks lowering the principal amounts but have not seen one case of that being documented. It would start an avalanche!) The lowest modified rate I have heard of that is documented is at 4%.
Keep in mind that allowing a loan modification is an option for a mortgage company, it is not mandatory. They are interested in doing modifications on homes where they are going to lose a ton of money on resale if they have to foreclose. They may have to eventually foreclose anyway, but the longer they can keep someone in the home making those payments, the better for them.
Quite honestly, if your mortgage is not upside down, the mortgage company does not have any incentive for doing a modification for you. If they have to foreclose, they might even make money by selling your home which would actually help alleviate their other losses.
I know that is NOT what you wanted to hear, but I really can't see them granting you a modification on a home that is not upside down. I think it is so sad that people who have been responsible all their lives are not helped at all by the current laws, but those who overspent their incomes are getting a free pass. It is very unjust.
How much longer before your ARM adjusts? It might be a better strategy to catch up on the payments and get your credit rating back, then try to refinance to a fixed rate loan. (Did you know that on a loan modification you do NOT have to be behind in payments? Again they are looking at their potential loss if they have to foreclose as the most important factor in deciding to grant a modification.)
I am going to hope that you find a job soon so that you can get back on your feet, Cheryl! That is probably your best option at this point. Please let me know if you have any other questions I can try to help with.
---------- FOLLOW-UP ----------
QUESTION: sorry I hit the wrong key and did not finish.
I did not expect my ARM to go down this year so I attempted to get refinancing from Citi but they would not agree to 100% so that was a big waste. What do you know about ARM's going down. Is the index in my favor?
Cheryl
ANSWER: Cheryl, no one can predict which way the market will turn. (If you anyone promises you they can, run!) Over 26 years in real estate there have been numerous times I have heard every "expert" in the country say rates were going down, only to find that later that week they went up because of some unforeseen factor.
I am so sorry to hear they won't do a refi for you. You are in a really tough position. I truly wish I had more suggestions for you, but other than trying to hang on and wait out the market until it recovers (and maybe get even more roomates), you are in "mortgage Siberia" as I call it. Your only other option is to sell to get out from under the payments.
Again, not what you wanted to hear, but as you seem very sharp I suspect you have already thought of all this.
---------- FOLLOW-UP ----------
QUESTION: Of course I have thought of selling. I would not make a profit. My realtor thinks things will turn around in a year but as you know that is strictly a guess. I don't think it will get "right" for five years.
But I have solved one of my problems - age discrimination. I had a face lift and I look great. So wish me luck I have an interview tomorrow. Can you believe an attorney told me in a "subtle" way that I was too old to work for him and as it was I looked 10 years younger than my age before I had the procedure. I really feel will get a job. You are wonderful!!!
Answer Good luck on the job interview!! And congrats on the face lift - I am all in favor of them and had a mini one myself last year. There is nothing better than feeling good about yourself!
Yes, I can believe that there is age discrimination, but just think how you would not want to work for anyone that short sighted who thinks age is a detriment. In my own personal experience I have found that more "mature" employees actually have a better work ethic and tend to be a lot more stable! The manager for my team is now almost 61 and a true gem. Tons of experience and she does not stop working, no matter what the hour, until the job is done. I know I can leave town and never worry about what is going on while I am gone.
The only reason I suggested selling is to get out from underneath of the payments as long as you would have a good viable alternative. I don't know where you live, but it really depends on the local market on how long it will take to turn around. Hopefully another job will take care of the problem in the interim? Again, best of luck. Hope you nail the interview!!
