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For those of you, or anyone you know, in need of renegotiating your mortgage, Town and Country is now able to help with this process.

 We are now been legally associated with a legal group that is working with lenders on renegotiating mortgages for all of the following reasons:

1.  You are under water (owe more than your house is worth)

2.  Your mortgage is/was an adjustable rate mortgage and payment adjustments will create an economical hardship

3.  Your work hours have been cut back making your current mortgage a hardship

4.  You would like to refi, but a refi does not make sense because it will not save enough to make a difference in your payments.

There are probably other reasons that will qualify.

Did you know that EVERY mortgage note has a "modification clause" in it, to help you stay in your house.  But, prior to 2007, only 2% of those trying to modify their mortgage via direct contact with the lender were successful, and of that 2%, almost 90% found themselves in distress again within 1 year?  This is because lenders do not WANT to help you, and they have a team of professionals that will do the least possible to assist you.

 The company we have aligned with is a team of attorneys currently specializing in assisting homeowners with this renegotiation process.  Because they are attorneys, working with lender attorneys, they know how to get the job done, ANd perhaps as importantly, they know how to draft a demand letter - which requires a response from lenders.  Currently they are suceeding in getting mortgage rates as low as 4% or less and getting loan balances reduced in most cases.  They do "demand" a loan reduction in every case, but are not always successful on that front.

Yes, there is a cost - but if your mortgage balance is reduced, AND your rate is reduced as well, the cost is less than a refinance transaction, and the savings could be very significant.  It is important for you to know that this process does NOT affect your credit scores.  You do not have to be delinquent on your mortgage to qualify.

 These modifications are available for primary residences only.  You cannot utilize these services to renegotiate rental properties. 

For my part, I am in training to qualify as an "expert witness" in order to assist the attorney with the process.  Having an expert witness (a licensed mortgage originator) on your side with paperwork documenting the benefit to you, assists the attorney in getting the best rates and terms for you.  I should complete my training by next week, but am able to talk with you about the process now.  I did complete part 1 of the training early this morning.

 Call me if you or anyone you know requires assistance. Believe me, I have tried to renegotiate my own loan, and have had NO success.  But I am going to let this company help me too.  It seems that almost every month I receive another notice from Zillow.com advising me of the value of my house dropping yet again. 

 For your part, you must do the following:

1.  Apply for a refinance transaction with a licensed loan originator - such as myself

2.  Provide a copy of a current credit report

3.  Provide a copy of your current mortgage payment statement

 I take it from there - turn over your paperwork to the attorney group who will review to determine if you could qualify for their assistance.  If it is determined that this process will very likely be successful, a meeting with an attorney assigned to you will be arranged.  The process takes only 60 days from start to finish (as opposed to your trying to negotiate with the lender directly, which can take up to 6 months).  There is no charge to you if the attorney deems that he/she cannot assist you. 

I have more information not covered in this email - so please call if you would like to talk about this process. 

 Best regards

Shelby Bateson

Town & Country Mortgage

503-819-6545 (direct phone)

Should you modify your current loan (also known as renegotiating your current mortgage) or should you refinance?  Which process is easier, least expensive, and most beneficial to you?

There is a lot of news, lots of unsoliticited calls, and lots of mail in your mailboxes and email inboxes about loan renegotiations and/or modifications.  In this current economic environment of falling house values, which is affecting millions of homeowners, the easiest, often least expensive alternative is to modify your current mortgage loan.  There is no title company involved, and no appraisal required.  In most cases, your damaged credit will not hurt your ability to get your loan modified.  But, there is ONE catch.  In order to qualify for a loan modification, you often cannot qualify for a refinance of your current mortgage. 

Here are some of the criteria that do qualify you for a loan modification:

1.  you have an adjustable rate mortgage that has recently reset, or is going to reset in the not too distant future.

2.  your house is worth less than you paid for it, and/or less than you owe.

3.  you have suffered a reduction of income since you purchased your home.

4.  you have an investment property that does not cash flow (rental income is less than the monthly payments).

5.  your bank will not discuss a loan modification with you because your income is commission only, or some other reason.

6.  your bank wants to charge you an excessive amount to discuss a loan modification with you.  Be very careful here.  There are a few banks that are offering to modify current loan terms.  I have heard stories about banks charging huge fees to help you, and the process can take up to 6 months!

If any of the above applies to you, I might be able to help you get your loan modified - which can include:

> a potential reduction in your loan balance that could be worth thousands of dollars off your existing loan.

> a substantial decrease in your loan interest rate, which could save you hundreds of dollars a month.  Sometimes the new modified rate is lower than the rate you can get with a refinance transaction.

At Town & Country Mortgage, we are working with local attorneys that are having huge success with getting loan balances reduced, and interest rates lowered to below prevailing interest rates for refinance transactions.  The trick here is to be working with attorneys that know Oregon and Washington markets, and know what banks are willing to do in Oregon and Washington.  While we, as individuals may run up against a "blank wall" trying to renegotiate the terms of our loans with our banks, attorneys know how to get this done for us, and the legal leverage to make it happen.  In most cases, the cost is lower than the cost to refinance, and the benefits are often much greater. 

If you, or someone you know, can benefit from a loan modification, please feel free to call anytime.  I can help you figure out which would be better for you, and hopefully help save you hundreds, even thousands of dollars in 2009.

I'm looking forward to working with you.

Best regards

Shelby

503-819-6545

Wow - have we had a snow storm over the last week!! I don't know about you, but I think I'm almost ready for rain again - definitely ready for some sunshine. This has been quite a week.

I hope that all of you are staying warm and safe during all this inclement weather. AND, I hope most of you live in areas where you are not being affected by power outages. It seems PGE just can't figure out what's going on in my area - power outage from very early morning yesterday until close to 2pm. Then a couple more outages this morning already. Just my neighborhood alone is keeping those PGE crews busy. They are some of the heros in this storm, in my book.

Rates today are a little higher than we saw last week. According to CNBC this morning, with yields at record lows on the 10 year Treasury bond, but prices high to buy those bonds, there are few buyers, which contributes to slightly higher mortgage rates this morning. We are still definitely at 5% or lower, but not as low as we've been. Those rates will come back though I think, for all the reasons mentioned last week.

The stock market is down slightly this morning, but trading, as expected, is very light. This is, after all, a holiday week, and most people are much more focused on the holidays. Locally, I expect most of us might be wondering how we are going to get to friends and family houses to celebrate.

Mortgage renegotiations??? I have received letters from several companies intimating that they represent my lender. When I have called, they are in fact, companies all over the country offering the same renegotiation services my office, Town and Country Mortgage is offering. The difference with these other companies so far, has been that I would be working with attornies all over the country, as opposed to local attornies who know our market. So, that said, I do want to emphasize that the attorney you will deal with, if you choose to utilize services I can offer, are local attorneys. You will meet with them face to face, and they will explain to you the process in all the detail you require to decide if this is an option you want to pursue. For my part, I will take a mortgage application for you, and if you are not eligible for a refinance transaction, or if a refinance transaction does not make sense for you, I will let you know you do not qualify, and will turn your file over to our attorneys for renegotiation. Then our office becomes the source for an expert witness for the attorney, to advise on what rates and terms you can qualify, and what loan balance makes sense for your property.

In most cases, our attorneys are using the real estate values on zillow.com to determine the value of your property, and therefore how much of your loan balance should be forgiven by the banks. If you are unsure what value zillow.com shows for your house, it is a free website - so look up your own house. Some neighborhoods in the Portland metro area have been very hard hit by falling values, while others have held their own relatively well.

Unless we have more significant news over the next 2 days (remember that all mortgage offices close at noon - 1pm on Wednesday, Christmas eve), this will be my last email to you until Friday. Yes - I will be working Friday, so please feel free to call if you have any questions or concern.

Please have a safe and sane and wonderful holiday. Stay warm and dry, and drive safely if you are driving.

Happy Holidays to each and every one of you.

Warm regards,

While bad economic news is still all that you see in the headlines - there is some good news out there!

Mortgage rates today are dipping towards that 5% - could actually hit that rate today or tomorrow - and many economists and analysts are forecasting we could see mortgage rates for 30 year fixed rate loans drop below *5% in the coming month or so. If you are thinking about a refinance or purchase, you should definitely get yourself pre-approved as quickly as possible. There is a huge advantage to short term locks over the more familiar 30 day rate locks. But your loan must be pre-approved, including an appraisal before we can take advantage of those short term locks.

Virtually all lenders are reporting rates around *5.125% today for those of you with credit scores at 720 or better and with loan to values under 95%.

Other news

Oil is under $46/barrel today, and expected to continue to drop towards $40/barrel as demand remains low.

Retail sales, in spite of "Black Friday" continue lower than retailers would like to see, with the exception of sales at Walmart.

The big 3 auto-makers are on Capital Hill today pleading their cases for a bailout.

But Credit remains tight and guidelines still very tight. There are no lenders out there willing to lend to anyone who looks like a potential foreclosure waiting to happen.

Following is some housing market news I received today. You might want to take a look at how housing values in the Portland area compare to the rest of the country - and heave a sigh of relief that we are far from the worst in the country. Still our inventories are very high, and great values abound right now.

Be very wary of letters arriving in many mailboxes about "we can get your loan re-negotiated for a fee." When economic times get tough, the scam artists come out in droves with many creative ways to separate you from your money. It does not take too many $4000 fees from victims, to set up a nice office and look very professional. There are agencies out there trying to help "under water" homeowners, such as Hope Now. Before you write anyone a check to "help" you, make sure you investigate the source very carefully. If you are unable to determine if the agency is legitimate, try Channel 2 (local ABC) news. They have an excellent help and investigation source for consumers in the Portland metro area and can get into places most of us can't access.

Here's that information about nationwide housing markets.

Going Down
With all the downturn in the real estate market the reality is not all areas are doing poorly and some are actually increasing in value.

So what areas are still going up?

Lancaster, Penn.
Population: 498,465
Median home price: $206,000
12-month change in home value: +1.6%
Affordability index: 3/10
Homes sold this year: 1,166
Home value vs. national average: Same
Top employer: R.R. Donnelly & Sons publishing company

Locals say Lancaster is a conservative lending market, which limits foreclosures.

Clarksville, Tenn.
Population: 265,062
Median home price: $130,000
12-month change in home value: +1.4%
Affordability index: 3/10
Homes sold this year: 2,081
Home value vs. national average: -37%
Top employer: Trane Corporation

The housing market is kept active by Clarksville's proximity to Fort Campbell. Traditionally a manufacturing town, the city also offers a robust retail economy, driven in part by Austin Peay State University.

Albuquerque, N.M.
Population: 832,774
Median home price: $172,000
12-month change in home value: +1%
Affordability index: 3/10
Homes sold this year: 7,100
Home value vs. national average: -17%
Top employer: Intel

Active retirees and immigrants have also migrated to the area, ensuring a well-rounded housing market. Experts project 9% population growth between 2006 and 2011, compared to 6% nationally.

Burlington, VT

Population: 145,360
Median home price: $250,000
12-month change in home value: +1%
Affordability index: 4/10
Homes sold this year: 592
Home value vs. national average: +21%
Top employer: IBM

Burlington's small-town mentality ensures that home lenders maintain personal relationships with their clients and help them stay within their spending means. Technology, health care, and education drive the local market.

Pittsburgh, Penn.

Population: 2,355,712
Median home price: $137,000
12-month change in home value: +.1%
Affordability index: 2/10
Homes sold this year: 7,634
Home value vs. national average: -33%
Top employer: University of Pittsburgh Medical Center

Despite its reputation as a gritty city of industry and steel, Pittsburgh is now driven by the health care and technology sectors.

Johnson City, Tenn.

Population: 193,554
Median home price: $120,000
12-month change in home value: -.4%
Affordability index: 3/10
Homes sold this year: 1,134
Home value vs. national average: -41%
Top employer: East Tennessee State University

What areas to avoid?

Home prices in the 10-city index have fallen for 26 consecutive months. The decline has broadened over the past 12 months, with prices dropping in every city of the 20-city index during September.

In the weakest market,
Phoenix, the 12-month loss came to 31.9%.
Las Vegas prices plummeted 31.3%
San Francisco recorded a 29.5% decline
Miami, down 28.4%
Los Angeles, down 27.6%;
San Diego, down 26.3%;
Washington, down 17%;
Chicago, down 10.1%;
New York, down 7.3%;
Boston, down 5.7%; and
Denver, down 5.4%.
Detroit, down 18.6%;
Tampa, Fla., down 18.5%;
Minneapolis, down 14%;
Seattle, down 9.8%;
Atlanta, down 9.5%;
Portland, Ore., down 8.6%; and
Cleveland, down 6.4%.