loan modifications--- save money and read this

Many people have asked me about these loan modification programs that you see advertised.

Don't be fooled. A home owner that wants to modify their loan needs to go to their servicing company to do that.

These companies that advertise that they can modify the loan are just a middleman and they charge some pretty hefty fees to do what the homeowner can do themselves.

You may have heard that CHFA now has a program that will allow a first time buyer to use a large portion of their $8,000 tax credit to pay off the down payment loan from CHFA after they get their tax credit. This program allows the buyer to get a deferred interest and payment loan for the down payment on an FHA Loan to buy the home and then pay that 2nd loan back once the tax credit has been received.

If you are trying to sell a condo or have a buyer for a condo you will be interested to know this. You probably know that a condo complex needs to be FHA approved in order to do an FHA loan there.

Now we are finding more and more convention loan programs that are requiring a similar approval. In addition Fannie Mae is requiring a buyer to get insurance for the interior of the property. It's the same thing as renters insurance.