Save my house - Expert reveals industry secrets

The banking industry has robbed millions of people of their homes. They made loans to people who could not afford them. For years there were standards that required the borrower make at least three times their house payments. They created no income verification loans. These had no debt ratio calculations

One might think they would have been prosecuted. Instead they are making record bonuses funded by government bailouts. They aren't doing it. Why. But that's not happening. Why is that?

Traditionally lenders tried to avoid foreclosures. That isn't the situation anymore. Real estate values are now on the upswing. Especially in markets hit hardest by foreclosures. Whomever owns the property stands to make a profit. The lenders losses are already covered by bailout funds. They are now pushing the foreclosures in an effort to build up their real estate portfolios to sell them at a profit later.

What can the average homeowner do to "Save my house?"

You should try to understand how lenders think. You made a commitment to pay them when you took the loan. If you exagerrated your income, you may have committed fraud. Lenders believed you when you said you would make the loan payments on time.

You'll have to convince the lender that there is a good reason why you can't make the payments. Falling real estate values is not a good reason. You must exhibit a change that causes you not to be able to make your house payments. Loss of a job is an acceptable reason for not being able to make your payments. Business owners can claim a fall off in business. Escalating loan payments may be another.

A hardship letter is necessary. If you aren't sure how to construct a hardship letter, there is a lot of help available. You'll need to document the steps you took to get you in this situation. If you were lied to or deceived in any way by the loan officer that took your application, you need to document it. In many cases, borrowers were told their payments would not change from the low initial teaser rates.

Most loan mods lower the payments by reducing the interest rates or lengthening the time need to pay it back. Bankers usually don't reduce the loan balance. If they lowered the balance, they would have to show losses on their real estate portfolio. It doesn't mean it never happens. Recently lenders are offering home owners lower balances if the short sale procedure show the property is worth less. The biggest problem is you must first commit to a short sale before they make this kind of offer. Understanding the banking business is extremely difficult even for professionals. Loan modification consultants are available to explain and negotiate the process. They usually don't charge for consultation.