New American Funding is a HUD
approved FHA direct lender. We staff
an expert team of loan specialists that
can help you get out of your existing
adjustable rate mortgage into an
affordable 30 year government insured
loan. In addition, we staff a full team
of loan modification specialists to
assists you in saving your home from
foreclosure.
approved FHA direct lender. We staff
an expert team of loan specialists that
can help you get out of your existing
adjustable rate mortgage into an
affordable 30 year government insured
loan. In addition, we staff a full team
of loan modification specialists to
assists you in saving your home from
foreclosure.
More Information..
Irvine, CA (PRWEB) May 25, 2008 -- The President of New American Funding,
Rick Arvielo, says there is a ‘Perfect Storm’ brewing when it comes to borrowers
qualifying for a new home loan, but unfortunately, this storm is blowing people
right out of their homes. He says to truly appreciate where the average mortgage
holder is going, it’s important to understand where they have been.
Rick Arvielo, says there is a ‘Perfect Storm’ brewing when it comes to borrowers
qualifying for a new home loan, but unfortunately, this storm is blowing people
right out of their homes. He says to truly appreciate where the average mortgage
holder is going, it’s important to understand where they have been.
| About New American Funding |
According to Arvielo, qualifying for a loan one year ago couldn’t have been
easier. Stated/Stated 100% financing for Subprime borrowers meant buyers didn’
t have to qualify from an income or asset perspective and they could borrow
100% of the value of their loan. Investors were saved because homes were
worth more six months later. Borrowers in trouble could bail themselves out with
a new loan. Now, declining values coupled with yesterday’s loose lending
guidelines and high Loan to Value’s have borrowers stranded without a new loan
option as their loans race towards unmanageable interest rate resets. “There
simply is no new loan for these people,” says Arvielo.
Arvielo goes on to state, “The only solution is for someone to spearhead an effort
to organize the current note holders of these loans and create a streamlined
work-out opportunity for lenders to work on the borrowers behalf to qualify them
in a ‘what if’ scenario. Considering some debt forgiveness or providing seconds
to accommodate the shortfall would circumvent the ultimate outcome of taking the
loans back. I am sure these current note holders would gladly consider this
option. There is plenty of pent up capacity within the lending community to
conduct the qualifying diligence.”
Arvielo observes, when the borrower’s loan resets and they stop making
payments, the scenario is grim for everyone. “The borrower’s credit and dream of
homeownership is ruined. The foreclosed property becomes blight on the
neighborhood furthering the declination of value which casts other borrowers into
this same dilemma and the Note holder’s fare worst of all. Typically, they have to
evict and foreclose, then rehab and REO, paying full commission on a reduced
fire sale price. The ‘All-In’ cost can easily climb to 50 or 60% of the note. And,
with an unprecedented volume of foreclosures, the lenders ability to assimilate
these houses serves to push out the cycle leading to mounting losses for them
and prolonged degradation of the neighborhoods.”
Arvielo says FHA is being touted as a bailout option. “FHASecure and the
proposed FHAModernization will help, but unless someone comes up with a
solution to declining values and the Debt to Income dilemma, it will fall well short
of heading off this pending doom. We are already talking to thousands of
borrowers that are desperate and disqualified due to these issues.”
To further the pain, Arvielo observes, major investors are now imposing their own
Fico overlays to FHA. FHA has long maintained that Fico isn’t used to determine
eligebilty. Unfortunately, major large investors on which the industry relies to sell
their loans are now imposing their own restriction to things like Fico scores which
serves to further the entrapment. Borrowers that qualify but also have lower Fico
scores are out of luck and out of options. And, in many cases forced out of their
homes,” says Arvielo.
At New American we are doing what we can to qualify borrowers interested in
FHA financing. And, for borrowers trapped, we are working to negotiate with their
current investors to alter their existing notes to free the borrower. We have had
success doing so with several loan servicing companies. Our hope is that the
industry can get together and agree on a protocol to work this out or increasing
foreclosures will certainly be the result
About New American Funding
New American Funding is committed to providing top quality service. The
company offers a wide range of loan programs that are competitively priced.
Using the latest technology, the company has made the borrowing process
simple and convenient. New American Funding offers competitive rates and
eliminates fees associated with a loan arranged through a broker. The company’
s loan consultants listen to clients’ needs and make sure they understand
completely, then discuss the options and make sure clients thoroughly
understand them. From application through funding, New American Funding
makes the loan process simple and convenient. For more information, please
visit www.newamericanfunding.com.
Media Contact:
Rick Arvielo
President of New American Funding
1-800-426-5626
rarvielo@nafinc.com
easier. Stated/Stated 100% financing for Subprime borrowers meant buyers didn’
t have to qualify from an income or asset perspective and they could borrow
100% of the value of their loan. Investors were saved because homes were
worth more six months later. Borrowers in trouble could bail themselves out with
a new loan. Now, declining values coupled with yesterday’s loose lending
guidelines and high Loan to Value’s have borrowers stranded without a new loan
option as their loans race towards unmanageable interest rate resets. “There
simply is no new loan for these people,” says Arvielo.
Arvielo goes on to state, “The only solution is for someone to spearhead an effort
to organize the current note holders of these loans and create a streamlined
work-out opportunity for lenders to work on the borrowers behalf to qualify them
in a ‘what if’ scenario. Considering some debt forgiveness or providing seconds
to accommodate the shortfall would circumvent the ultimate outcome of taking the
loans back. I am sure these current note holders would gladly consider this
option. There is plenty of pent up capacity within the lending community to
conduct the qualifying diligence.”
Arvielo observes, when the borrower’s loan resets and they stop making
payments, the scenario is grim for everyone. “The borrower’s credit and dream of
homeownership is ruined. The foreclosed property becomes blight on the
neighborhood furthering the declination of value which casts other borrowers into
this same dilemma and the Note holder’s fare worst of all. Typically, they have to
evict and foreclose, then rehab and REO, paying full commission on a reduced
fire sale price. The ‘All-In’ cost can easily climb to 50 or 60% of the note. And,
with an unprecedented volume of foreclosures, the lenders ability to assimilate
these houses serves to push out the cycle leading to mounting losses for them
and prolonged degradation of the neighborhoods.”
Arvielo says FHA is being touted as a bailout option. “FHASecure and the
proposed FHAModernization will help, but unless someone comes up with a
solution to declining values and the Debt to Income dilemma, it will fall well short
of heading off this pending doom. We are already talking to thousands of
borrowers that are desperate and disqualified due to these issues.”
To further the pain, Arvielo observes, major investors are now imposing their own
Fico overlays to FHA. FHA has long maintained that Fico isn’t used to determine
eligebilty. Unfortunately, major large investors on which the industry relies to sell
their loans are now imposing their own restriction to things like Fico scores which
serves to further the entrapment. Borrowers that qualify but also have lower Fico
scores are out of luck and out of options. And, in many cases forced out of their
homes,” says Arvielo.
At New American we are doing what we can to qualify borrowers interested in
FHA financing. And, for borrowers trapped, we are working to negotiate with their
current investors to alter their existing notes to free the borrower. We have had
success doing so with several loan servicing companies. Our hope is that the
industry can get together and agree on a protocol to work this out or increasing
foreclosures will certainly be the result
About New American Funding
New American Funding is committed to providing top quality service. The
company offers a wide range of loan programs that are competitively priced.
Using the latest technology, the company has made the borrowing process
simple and convenient. New American Funding offers competitive rates and
eliminates fees associated with a loan arranged through a broker. The company’
s loan consultants listen to clients’ needs and make sure they understand
completely, then discuss the options and make sure clients thoroughly
understand them. From application through funding, New American Funding
makes the loan process simple and convenient. For more information, please
visit www.newamericanfunding.com.
Media Contact:
Rick Arvielo
President of New American Funding
1-800-426-5626
rarvielo@nafinc.com
| Karl's Story |
------------------------------------------------------------------------------------------------
LISTEN TO WHAT WE WERE ABLE TO DO FOR HIM
SITUATION: Karl's home value had dropped significantly and he owed $150,000
more than what it was worth trapping him in a risky adjustable loan which he could
no longer afford. We were able to negotiate off a whopping $138,000 with his
lender and get him into a 30 year fixed loan saving him over $842.00 per month
on his payments! We saved him $138,000 off what he owed and $842 per month!!
more than what it was worth trapping him in a risky adjustable loan which he could
no longer afford. We were able to negotiate off a whopping $138,000 with his
lender and get him into a 30 year fixed loan saving him over $842.00 per month
on his payments! We saved him $138,000 off what he owed and $842 per month!!
Please visit our BLOG and
discuss your ideas or problems
with other homeowners caught
up in this national epidemic.
discuss your ideas or problems
with other homeowners caught
up in this national epidemic.
1-800-426-5626
| Our business is helping families stay in their homes |
1-800-426-5626
Loan Modification Experts with a proven
track record through TheBrokerNetwork.com
track record through TheBrokerNetwork.com
| CUSTOMER TIPS |
Advice and Timelines:
EST timeline to completion –
60-120 days.
***Depending on Servicer/Lenders
individual turn times.***
1. Any and all items requested from
your lender should be delivered
within 3 days! Many lenders will
cancel a file for inactivity if items
requested are not received by them in
a very timely fashion and you don’t
want to start over from the beginning.
2. Reference your loan number on
every document page during the
follow up process.
3. Update financials every 30 days
along with cover letter “Updated
Financials”.
4.Be diligent and patient.
EST timeline to completion –
60-120 days.
***Depending on Servicer/Lenders
individual turn times.***
1. Any and all items requested from
your lender should be delivered
within 3 days! Many lenders will
cancel a file for inactivity if items
requested are not received by them in
a very timely fashion and you don’t
want to start over from the beginning.
2. Reference your loan number on
every document page during the
follow up process.
3. Update financials every 30 days
along with cover letter “Updated
Financials”.
4.Be diligent and patient.
