NORTH Idaho Real Estate Pro


Urgent NEW info: Distressed Home Owners / Seller's - Follow these Steps to Avoid Foreclosure and "Modify your Loan" - Effective Immediately - It's LAW!

This is NEW information.  They must work with you if you meet the 3-requirements below and follow the 4-steps below, and submitt a letter (sample below) or they are breaking the LAW.    Please pass this information on to your Distressed Homeowners and/or Sellers. This is effective IMMEDIATELY! Most distressed home owners are not aware that they have this option.

There is already a "Bailout" for home owners that was made into LAW on June 30, 2008.  As you know from several of my other Blogs we have been trying to find out how and where  to direct distressed Home Owners / Seller to get this help.  Finally, after 3-months, I believe I have the info we need.

Below, I have itemized the specifics and "HOW TO's" for Sellers to use this New Law,  Section 1403 of the New Housing Bill (HR 3221).  It requires Mortgage Services to modify loansfor homeowners and help them AVOID FORECLOSURE as long as certain requirements are met.  This law requires servicers to act in the best interest of all their investors and obligates them to modify the Home Owner's loan if they can afford the modified loan terms and if the lenders are likely to recover more for their investors by working with the Home Owner than by going all the way through the foreclosure process.

Here are the 3 (three) requirements:

1. Default on the mortgage either has already happened or is "reasonably foreseeable"

2. The home owner is living in the property as his or her primary residence

3. The lender is likely to recover more through the loan modification or workout than by forcing the home owner into foreclosure.

Here is a 4-Step process for you to follow when negotiating for this "Loan Modification" with your mortgage lender.

1. Make sure you are dealing with your lender's loss mitigation and/or work out department.

2. Write a hardship letter demonstrating job loss, serious medical condition, balloon payment coming due, adjustable rate reset or some other financial calamity that will make it impossible for you to continue making your mortgage payments as scheduled. Unless you are in imminent danger of default as required by this new law, lenders are not likely to work with you.

3. Send the lender your financial statements, employment records, tax returns and bank statements demonstrating how you would be able to afford the modified loan terms under your present financial circumstances

4. Send the lender a current appraisal of your home or some documentation on recent comparable sales in your neighborhood demonstrating the current value of your home. "The key is to demonstrate how the lender is likely to recover less money through foreclosure than they would by working with you in your proposed loan modification plan.

Please click on the below URL link for a SAMPLE letter you can use to renegotiate your loan:


Please contact me with any of your Real Estate / Relocation / Referral needs:

Coeur d'Alene, Idaho - City by the LakePam Jank, Realtor, GRI, CRS, ABR, RRS, PPS
Previews Property Specialist
Your North Idaho Real Estate Pro
FREE MLS Listings Search at:
Web:  Coeur d'Alene Idaho Homes for Sale
Phone:  208-661-2282
Fax:  208-772-628 Toll Free:  800-829-2555 EXT.1275
435 W. Hanley Avenue
Coeur d'Alene, ID  838315




Pam Jank, CRS, GRI, ABR, CNE, RRS, Realtor(c)Pam Jank, CRS, GRI, ABR, CNE, RRS, Realtor(c)
Your North Idaho Real Estate Pro - Your Free Local MLS Property Search Link
208-661-2282 or Toll Free 800-829-2555 ext. 1275
Coldwell Banker Schneidmiller Realty
1924 Northwest Blvd, Coeur d'Alene ID 83814


Equal Opportunity HousingEqual Opportunity Housing

 Lake Coeur d'Alene

Comment balloon 9 commentsPam Jank • October 01 2008 07:54AM


I've heard that the banks were only doing these after every other option was exhausted.  Several bank heads commented on the uselessness of this new option.

Posted by Randall Schrader (Competitive Insurance of Dundee) over 10 years ago

Randall, this is new information.  You are correct about the last 3-months.  However... this is NEW information, By LAW they must work with you if you meet the 3-requirements and do the letter. If they don't then they are breaking the LAW.  Check it out again..

Posted by Pam Jank, Your Coeur d'Alene & North Idaho Real Estate Pro (Coldwell Banker Schneidmiller Realty) over 10 years ago

Amy, I have emailed you the steps required including the link to this Blog.  If they fit the qualifications and do the steps indicated.... the lender has to work with them on "Loan Modification" Read the Blog... Follow the steps.... write the letter.  Let me know how it goes.

Posted by Pam Jank, Your Coeur d'Alene & North Idaho Real Estate Pro (Coldwell Banker Schneidmiller Realty) over 10 years ago

Pam, Great information to get out to the consumers who are finding themselves in this situation. Thanks for sharing the link.

Posted by Debbie Malone, From Lynchburg To The Lake (434) 546-0369 (Londeree's Real Estate & Property Management) over 10 years ago

Debbie, I am already helping a local business owner that did a subprime on her home in order to be able to start her business and her business is not doing well... She is now in distress.  So far it appears she is a candidate for "Loan Modification"  we will soon find out!

Posted by Pam Jank, Your Coeur d'Alene & North Idaho Real Estate Pro (Coldwell Banker Schneidmiller Realty) over 10 years ago

Pam, This is very useful information. We should all pass it on to our clients who are in need , rather than try to get a listing. I was talking to a customer last year and told her, "I am in the business of getting people into houses, and do not like to see them forced out of homes ."

Posted by Gita Bantwal, REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel (RE/MAX Centre Realtors) over 10 years ago

Gita,you are so right.  Not only do we get the satisfaction of knowing we were able to help someone in need, that person will always remember us and, more than likely, be our future client!  Relationships built today become our devoted clients tomorrow!

Posted by Pam Jank, Your Coeur d'Alene & North Idaho Real Estate Pro (Coldwell Banker Schneidmiller Realty) over 10 years ago

Pam, thanks for letting me know you found this information.  I'll pass it on to the individual I was telling you about.  Thanks

Posted by Tim Jank (Jank & Associates) over 10 years ago

Pam, thanks for putting this info together.  Hopefully, it will help alot of deserving home owners.

Posted by Ted Ewing (Simmons Built) over 10 years ago