Mortgage applications decreased 2.6 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending December 16, 2011.

The Market Composite Index, a measure of mortgage loan application volume, decreased 2.6 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased 2.8 percent compared with the previous week. The Refinance Index decreased 1.6 percent from the previous week. The seasonally adjusted Purchase Index decreased 4.9 percent from one week earlier. The unadjusted Purchase Index decreased 7.5 percent compared with the previous week and was 6.9 percent lower than the same week one year ago.

The four week moving average for the seasonally adjusted Market Index is up 0.26 percent. The four week moving average is down 1.53 percent for the seasonally adjusted Purchase Index, while this average is up 1.32 percent for the Refinance Index.

“Continued anxiety surrounding the fragile economic situation in Europe led interest rates lower last week. However, refinance applications fell slightly, and purchase applications dropped further as we head into the end of the year,” said Michael Fratantoni, MBA’s Vice President of Research and Economics. “Remarkably low rates are not enough, as many homeowners continue to hold back due to lack of equity in their properties, poor credit and a weak job market.”

The refinance share of mortgage activity reached a high this year of 80.7 percent of total applications from 79.7 percent the previous week. The adjustable-rate mortgage (ARM) share of activity decreased to a low this year of 5.1 percent from 5.6 percent of total applications from the previous week.

The average loan size of all loans for home purchase in the US was $217,774 in November 2011, up from $213,430 in October 2011. The average loan size for a refinance increased from $217,153 in October to $220,523 in November. The average government purchase loan size declined from October to November, from $186,263 to $170,742. The largest purchase loans were made in the Pacific region at $308,307. The largest refinance loans were also made in the Pacific region at $304,509.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,500 or less) decreased to 4.08 percent, the lowest rate this year, from 4.12 percent, with points increasing to 0.49 from 0.45 (including the origination fee) for 80 percent loan-to-value (LTV) ratio loans. The effective rate also decreased from last week.

The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $417,500) decreased to 4.44 percent, the lowest rate this year, from 4.47 percent, with points decreasing to 0.37 from 0.45 (including the origination fee) for 80 percent loan-to-value (LTV) ratio loans. The effective rate also decreased from last week.

The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA decreased to 3.93 percent, the lowest rate this year, from 3.94 percent, with points decreasing to 0.63 from 0.68 (including the origination fee) for 80 percent loan-to-value (LTV) ratio loans. The effective rate also decreased from last week.

The average contract interest rate for 15-year fixed-rate mortgages decreased to 3.39 percent, the lowest rate this year, from 3.44 percent, with points decreasing to 0.40 from 0.52 (including the origination fee) for 80 percent LTV loans. The effective rate also decreased from last week.

The average contract interest rate for 5/1 ARMs decreased to 2.90 percent, the lowest rate this year, from 2.93 percent, with points decreasing to 0.46 from 0.53 (including the origination fee) for 80 percent loan-to-value (LTV) ratio loans. The effective rate also decreased from last week.

For more information, visit www.mortgagebankers.org.

Builder confidence in the market for newly built, single-family homes edged up two points from a downwardly revised number to 21 on the National Association of Home Builders/Wells Fargo Housing Market Index (HMI) for December. This marks a third consecutive month in which builder confidence has improved, and brings the index to its highest point since May of 2010.

“While builder confidence remains low, the consistent gains registered over the past several months are an indication that pockets of recovery are slowly starting to emerge in scattered housing markets,” said Bob Nielsen, chairman of the National Association of Home Builders (NAHB) and a home builder from Reno, Nev. “However, the difficulties that both builders and buyers continue to experience in accessing credit for new homes are holding back potential sales even in areas where economic conditions are improving.”

“This is the first time that builder confidence has improved for three consecutive months since mid-2009, which signifies a legitimate though slowly emerging upward trend,” said NAHB Chief Economist David Crowe. “While large inventories of foreclosed properties continue to plague the most distressed markets and consumer worries about job security and the challenges of selling an existing home remain significant factors, builders are reporting more inquiries and more interest among potential buyers than they have seen in previous months.”

Derived from a monthly survey that NAHB has been conducting for more than 20 years, the NAHB/Wells Fargo Housing Market Index gauges builder perceptions of current single-family home sales and sales expectations for the next six months as “good,” “fair” or “poor.” The survey also asks builders to rate traffic of prospective buyers as “high to very high,” “average” or “low to very low.” Scores from each component are then used to calculate a seasonally adjusted index where any number over 50 indicates that more builders view conditions as good than poor.

Each of the HMI’s three component indexes registered a third consecutive month of improvement in December. The component gauging current sales conditions rose two points in the latest month to 22, while the component gauging sales expectations in the next six months edged up one point to 26. The component gauging traffic of prospective buyers gained three points to 18, which is its highest level since May of 2008.

Builder confidence primarily gained strength in the South in December, where a four-point gain to 25 brought that region’s HMI score to its highest level since March of 2008. A one-point gain to 16 was registered in the West, while the Midwest held unchanged at 24 and the Northeast slipped one point to 15.

For more information, visit www.nahb.org.

Kitchens are where family and friends come to cook, eat and socialize. With 2012 just around the corner, kitchen design trends for the new year are an industry-wide hot topic, as experts predict where kitchen design is headed and which materials will be in vogue.

Home design experts predict that 2012 is going to be an exciting year for kitchen design because homeowners want more creativity in their homes and are becoming more thoughtful in their decision-making.

To begin a kitchen overhaul, homeowners shouldn’t be afraid to dispose of anything from the last two decades, especially Old World kitchen styles with heavy molding. Instead, homeowners should embrace new materials, like countertops made out of quartz, glass and wood, which can vary in style, shape and color. As we move into 2012, the overall trend is to keep it simple, energy-efficient, and comfort-oriented. De-clutter, go natural, lighten up and make it work for you and your household.

“Green design” will also become a standard request this year. Designers recommend homeowners choose to use energy-efficient items like compact fluorescent bulbs because they use two-thirds less energy. For those who do decide to “go green,” work with a professional lighting designer who can help introduce modern technology fixtures and more energy saving items.

For more information about home design, kitchen renovations and upgrades, follow @FaceYourKitchen on Twitter.

Amid a spate of positive economic news during the November survey period, consumer sentiment appears to have stabilized from previous levels, with only incremental improvement in the deeply negative housing market sentiment witnessed this summer.

According to results from Fannie Mae’s November National Housing Survey, home price expectations moved from negative to positive territory for the first time in six months, with respondents expecting home prices to increase by 0.2 percent over the next year. Overall, trends demonstrate that consumers are in a “wait and see” pattern as we move into 2012. This places consumer sentiment in line with Fannie Mae’s Economics & Mortgage Market Group’s November forecast of temporary economic improvement during the third and fourth quarters of 2011 leading into a slower economic growth path in 2012.

“Though their home price expectations have become slightly positive, consumers remain concerned about the direction of the economy and continue to view their household finances as being relatively flat,” says Doug Duncan, vice president and chief economist of Fannie Mae. “Most Americans expect no improvement in their personal financial situation in the next 12 months and will likely remain wary about undertaking the significant financial obligation associated with homeownership until their view of their income, expenses, and job security heads in a more positive direction.”

Twenty-two percent of respondents expect home prices to increase over the next year (up 3 percentage points since last month), while 22 percent say they expect home prices to decline, down 1 percentage point since last month. 53 percent say prices will stay the same, a 2 percentage point drop from October. 

Results show that 33 percent of Americans say that mortgage rates will go up over the next 12 months, down 3 percentage points from October and a return to the level seen in September.  Additionally, 68 percent of respondents say it is a good time to buy a home (down by 1 percentage point since last month), and just 10 percent say it is a good time to sell, which is unchanged from the previous two months.

On average, Americans expect home rental prices to increase by 3.2 percent over the next year, a 0.1 percent decrease from October.  While just 6 percent expect a decline in home rental prices (unchanged since last month), 41 percent of respondents believe that home rental prices will increase in the next 12 months.

The survey also concludes that 32 percent of Americans say they would rent their next home, while 63 percent say they would buy, down 3 percentage points since last month and a return to the level seen in September.

Surprisingly, 66 percent of respondents say their income is about the same, the highest number ever to report this. Sixteen percent of those surveyed say their household income has increased over the past 12 months (down 2 percentage points since October) while 18 percent say that their income has declined significantly.

Fifty-four percent report that their expenses are about the same compared to 12 months ago (up 3 percentage points versus October). Eight percent say their household expenses have decreased over the past 12 months (down 3 percentage points since October), while 37 percent say their expenses have increased significantly.

For detailed findings from the November 2011 survey, as well as technical notes on survey methodology and the questions asked of respondents associated with each monthly indicator, visit the Fannie Mae Monthly National Housing Survey site.

Not only does carpet add warmth and comfort to any room, it also helps keep the air free of allergens and pollutants when properly vacuumed and maintained.

Simply put, what falls to the carpet – such as allergens, common dust, pet dander and other pollutants – tends to stay on the carpet until it is vacuumed, unlike smooth surfaces that allow these particles to re-circulate. Properly maintained carpet leads to improved air quality and a healthier indoor environment because regular vacuuming with a Carpet and Rug Institute-certified vacuum cleaner locks pollutants in the machine and removes them from the air you breathe.

Here are several facts that support the use of carpet to help prevent asthma and allergy symptoms:

There is no scientific study linking the rise of allergy and asthma to the use of carpet. Indeed, several studies actually disprove any correlation.

A 15-year Swedish study found no link between carpet usage and the incidence of allergy or asthma. In fact, even when carpet usage in Sweden decreased by 70 percent, allergy reactions in the general population increased by 30 percent.

Carpet may even be helpful to people with asthma: an 18-nation study of nearly 20,000 people found a statistical relationship between carpeted bedrooms and reduced asthma and allergy symptoms and improved breathing.

A 2003 study of more than 4,600 school children in New Jersey found that having carpet in a child’s bedroom was associated with fewer missed school days and less need for asthma medication.

Studies have compared the distribution of airborne dust associated with normal activities on hard and soft flooring surfaces. Findings show that walking on hard surfaces disturbed more particles. These particles became airborne and entered the breathing zone. In contrast, carpeted surfaces trapped more particles so that walking disturbed fewer particles. The result was less dust in the breathing zone over carpeted floors. 

What You Can Do

Vacuum regularly and thoroughly. It may come as a surprise that something as simple as regular vacuuming can have a big impact on the air you breathe. When vacuuming, remember to keep the following guidelines in mind:

Use slow, repetitive front-to-back motions in an overlapping sequence. A quick once-over doesn’t do much. Move slightly to the left or to the right every four strokes.

Don’t ignore the corners or crevices where dust builds. Use the proper attachments to clean those difficult-to-reach areas.

“Top-down” cleaning saves you the step of vacuuming after dusting. Dust blinds, windowsills, and furniture surfaces first and then vacuum away any fallen dust.

Remember to remove and replace or empty vacuum bags when they are half to two-thirds full.

Use CRI Seal of Approval cleaning products. An independent laboratory tests solutions, spot removers, vacuums and deep cleaning extractors and systems. Only those that meet high performance standards receive the Seal of Approval.

Professionally clean your carpet every 12 to 18 months. Regular vacuuming removes soil and dust, but periodic professional cleaning is needed to remove embedded dirt.

For more information, visit www.certifiedcleaners.org. 

CoreLogic (NYSE: CLGX), a provider of information, analytics and business services, recently released its first ever Natural Hazard Risk Summary and Analysis detailing the record-breaking natural disasters that struck the United States in 2011. The report provides an analysis of significant hurricane, wildfire, tornado, flood and earthquake events, as well as a summary of potential risk in 2012 and the implications of unexpected changes in natural hazard frequency, intensity and geographic patterns.

Compiled by the CoreLogic Spatial Solutions business, the report provides an overview of the billions of dollars in property damage caused by these catastrophic events, while summarizing their structural, geographic and financial impact on the United States.

“Weather-wise, it has certainly proven to be a memorable year in the United States and around the world. In fact, the National Oceanic and Atmospheric Administration just released its total cost estimate of $52 billion and counting in damages resulting from natural disasters,” says Dr. Howard Botts, executive vice president and director of database development for CoreLogic Spatial Solutions. “Several major urban areas faced unexpected catastrophes in 2011, putting disaster readiness plans and emergency response teams to the test and causing severe damage in regions underprepared for unusual weather events. As a result, homeowners, insurers, government officials and even the news media have been forced to rethink the way they view, plan for and react to natural hazards.”

Among key findings, the CoreLogic 2011 Natural Hazard Risk Summary and Analysis report notes:

Hurricanes
• 2011 was the most expensive hurricane season for the U.S. since 2008. 
• Though only three named Atlantic storms made landfall, Hurricane Irene, Tropical Storm Lee and Tropical Storm Don, they caused at least $8 billion in damages, primarily from flooding. 
• Many risk experts feel it’s time to rethink national flood policies, especially in major metropolitan hubs like New York City.

Tornadoes
• The 2011 tornado season was the third most active since 1980, with 1,559 storms to date. 
• The “2011 Super Outbreak” that occurred between April 25 and April 28 has been identified as the largest tornado outbreak ever recorded, with 336 confirmed tornadoes spread across the South, Midwest and Northeast of the U.S. 
• Property, casualty and commercial insurers are now beginning to reevaluate risk for tornado damage well beyond the traditional geographic focus on “tornado alley” and adjacent areas.

Wildfires
• While the 2011 wildfire season continued the trend of having fewer but larger wildfires, there was a significant geographic shift in home losses over the past year from California, which had a cooler and wetter-than-average fire season, to the drought-affected states of Texas, New Mexico and Oklahoma. 
• In May, the largest fire in Arizona history, the Wallow fire, forced thousands of resident evacuations and burned more than 469,000 acres. 
• Texas and Oklahoma experienced a record number of wildfires. The Bastrop fire in Texas alone resulted in more than 1,600 homes and structures destroyed and 34,000 acres burned. 
• Wildfire trends indicate that wildfire activity often follows a cyclical pattern of increase and decrease due to changing seasonal weather patterns. Based on this, parts of California are expected to see a dramatic increase in wildfire acreage next year. 
• Persistent and intensifying drought conditions forecast for a large section of the U.S. for the coming year is expected to intensify and spread wildfire activity in early 2012.

Earthquakes
• The non-western U.S. earthquakes that occurred this year in Virginia and Oklahoma – events that startled many residents who believed earthquakes to be strictly a far western U.S. phenomenon. 
• A 5.8 magnitude earthquake hit central Virginia on August 23, and was felt throughout the eastern seaboard. The tremors caused damage to several iconic local structures, namely the National Cathedral and the Washington Monument. 
• In early November, Oklahoma experienced a series of low magnitude earthquakes, with a quake on November 5 registering a 5.6 magnitude, the strongest ever recorded in the state. 

Flooding
• CoreLogic estimates flood losses in the U.S. this year at approximately $10.67 billion, based on various flooding and storm events recorded in the National Climate Data Center. 
• The melting of an above-average snowpack across the northern Rocky Mountains, combined with abnormally high precipitation, caused the Missouri and Souris rivers to swell beyond their banks across the upper Midwest. 
• Record-breaking rainfall in the Ohio valley in the spring and summer, combined with melting snowpack, resulted in historical flooding along the Mississippi River and its tributaries. 
• The floods of 2011 heightened awareness of flood risk outside of the FEMA 100-year flood zones. There has also been an emphasized need to raise current flood protection standards for the critical and strategic infrastructures in the U.S. 
• Based on the trend pattern, 2012 should not be an extreme flood year – in fact, there should be several more years before the next extreme flood loss year. U.S. flood loss in 2012 is projected at approximately $3.53 billion.

“The natural disasters felt throughout the country this year will undoubtedly shape the nation’s response to these events in 2012,” says Dr. Botts. “The catastrophes we experienced as a nation have already impacted and will continue to impact the policies, procedures and safety measures in place for many homes and businesses. The year 2011 was a year that informed the general understanding of risk and, hopefully, will lead to improved preparedness for years to come.”

CoreLogic generated findings for the first annual Natural Hazard Risk Summary and Analysis mining the company’s comprehensive parcel database and natural hazard risk analytics as well as data from the National Climatic Data Center and NASA.

For a complete copy of the CoreLogic 2011 Natural Risk Summary and Analysis Report, which includes maps, charts and images, visit http://www.corelogic.com/2011NaturalRiskSummary.

For more information visit www.corelogic.com.

With increased activity in the kitchen and heightened energy use to combat the cold, families are at greater risk of home fires during the winter holiday season. The Electrical Safety Foundation International (ESFI) is encouraging families and communities across the country to take simple precautions to ensure that this celebratory time of year does not result in a fire-related tragedy.

National Fire Protection Association (NFPA) statistics indicate that 30 percent of all home fires and 38 percent of home fire deaths occur during the months of December, January and February. Additionally, almost two-thirds of home fire deaths result from fires that occur in homes without working smoke alarms.

Many of these simple precautions seem like common sense, but are often overlooked due to the hectic nature of the holiday season. In addition to taking preventative measures like testing smoke alarms, it is critical that families create and practice their fire escape plan to minimize tragedy if a fire does occur.

Follow these basic safety guidelines to help protect your family, guests and home from holiday home fires:

·         Stay in the kitchen when food is cooking. Unattended cooking is the leading cause of home fires in the United States.

·         Keep children at least three feet away from cooking appliances. Never leave a child unsupervised while cooking or when an electric or gas stove is within reach.

·         Keep towels, pot holders, curtains and other flammable items away from hot surfaces.

·         With greater activity in and around your home comes increased energy use. Be careful not to overburden your electrical system.

·         Keep space heaters out of high-traffic and exit areas, and at least three feet away from any combustible materials.

·         Do not use space heaters in rooms where children are unsupervised.

·         Turn space heaters off when you go to sleep or leave the room. Never leave a space heater unattended.

·         Install smoke alarms inside each bedroom, outside each sleeping area and on every level of your home. Test smoke alarms once a month to ensure they are working properly.

·         Make sure everyone in your family recognizes the sound of the smoke alarm and knows what it means.

·         Plan for a fire emergency before it happens. Be sure to explain your family fire escape plan to overnight houseguests and babysitters. 

For more information, visit www.holidaysafety.org. 

Consumer sentiment on housing expectations is stabilizing as the year winds down and consumers are adopting a “wait and see” attitude towards 2012, according to Fannie Mae’s November National Housing Survey. However, on one front there is consensus: rents will rise significantly.

On average, Americans expect home rental prices to increase by 3.2 percent over the next year. Some 41 percent said rents will increase next year, 48 percent expect rents to stay the same and only 6 percent expect them to fall. The November numbers showed a slight retreat from October, when 43 expected rents to rise and 47 expected them to stay the same.

Consumer expectations for next year exceed the current level of rent increases. The average monthly rent for all categories, including apartments and single-family homes, was $846 nationwide in the third quarter, up 2.5 percent from the same period a year earlier, according to Local Market Monitor. Reis, Inc. data puts the third quarter increases at 2.3 percent year-over-year in the 80 plus markets it tracks. The National Association of REALTORS® forecasts multifamily rents to rise 3.5 percent next year, virtually what consumers expect.

Rising rents impact the homeownership markets in two ways. Monthly mortgage payments on the median priced home-including taxes and insurance-are increasingly falling below average rent levels. In 15 cities today, it is less expensive to rent than to buy, according to the Wall Street Journal. Higher rents also make investment purchases of residential properties more attractive. Increasingly, investors are buying to rent out properties for extended periods of time rather than selling.

Consumer home price expectations changed slightly in November, moving from negative to positive territory for the first time in six months, with respondents expecting home prices to increase by 0.2 percent over the next year.

“Though their home price expectations have become slightly positive, consumers remain concerned about the direction of the economy and continue to view their household finances as being relatively flat,” said Doug Duncan, vice president and chief economist of Fannie Mae. “Most Americans expect no improvement in their personal financial situation in the next 12 months and will likely remain wary about undertaking the significant financial obligation associated with homeownership until their view of their income, expenses, and job security heads in a more positive direction.”

Highlights:
• Twenty-two percent of respondents expect home prices to increase over the next year (up 3 percentage points since last month), while 22 percent say they expect home prices to decline, down 1 percentage point since last month. 53 percent say prices will stay the same, a 2 percentage point drop from October.
• Thirty-three percent of Americans say that mortgage rates will go up over the next 12 months, down 3 percentage points from October and a return to the level seen in September.
• Sixty-eight percent of respondents say it is a good time to buy a home (down by 1 percentage point since last month), and just 10 percent say it is a good time to sell, which is unchanged from the previous two months.
• On average, Americans expect home rental prices to increase by 3.2 percent over the next year, a 0.1 percent decrease from October.
• Just 6 percent expect a decline in home rental prices (unchanged since last month), while 41 percent of respondents believe that home rental prices will increase in the next 12 months.
• Thirty-two percent of Americans say they would rent their next home, while 63 percent say they would buy, down 3 percentage points since last month and a return to the level seen.

For more information, visit www.realestateeconomywatch.com.

Young Americans under 30-a prime age group for first-time home buying-are feeling considerably better about their financial picture than they did a year ago, according to a major new study from Bankrate.

Nearly one-third of those younger than 30 say their overall situation is better today than it was last year and 25 feel more secure about their jobs than they did in November 2010.

By comparison, older Americans remain glum. Only 1 in 10 Americans age 30 to 64 feel more secure in their jobs now than they did a year ago. Three times as many feel less secure. Only 17 percent of those approaching retirement (age 50-64) feel better about their overall financial situation than a year ago.

Workers with less education and lower paying jobs feel less secure. Roughly a quarter of college grads feel less secure today than a year ago, but 34 percent with a high school education or less fell less secure. Among low earners (less than $30,000), only 19 percent feel better off, while 38 percent feel their overall finances are worse. Nearly half of those earning less than $50,000 say they’ll spend less on the holidays, versus about 30 percent of those earning more.

“Recent years have been hard, and that’s a tough feeling for some people to shake. Almost half of the people surveyed said their situation is about the same today as a year ago. Of the rest, more think their situation (is) worse than better. None of this surprises me because our national mood tilts toward pessimism right now. But I’m reminded of the old saying that it seems darkest right before the dawn.

Recent years have been hard, and that’s a tough feeling for some people to shake. Chances are good that those people will still feel bad even as their financial situation slowly improves. Even in the best of economic times, improvement comes in small increments. There aren’t a lot of “Hallelujah!” days in personal finance, commented Dan Danford, CFP, principal at Family Investment Center in St. Joseph, Mo.

For more information, visit www.realestateeconomywatch.com.

When the Obama administration rolled out the Home Affordable Modification Program (HAMP) in 2009, officials estimated 3 to 4 million borrowers would seek relief from their mortgages through the program amidst the worst recession and housing market collapse in decades.

More than two years later, those projections have proven to be optimistic, to say the least. According to the Treasury Department, about 700,000 homeowners had sought aid from HAMP through the third quarter of 2011.

That’s a long way from 3 million-plus.

“A lot of homeowners who are in dire straits with their mortgages can be intimidated by the confusing process for getting the help they need, but it doesn’t have to be that way,” says Stephfan Nurse, a loan modification expert and CEO of Consumer Education. “The key is knowing and understanding your options. With education, you are empowered.”

Nurse founded ConsumerEducationOnline.com for homeowners seeking loan modifications to get the information needed to navigate the process. It includes a free pre-qualifier, where homeowners can input their figures and determine for which modification program they qualify.

His “Mortgage Reduction” software uses the same guidelines as lenders and helps ensure that financial statements are complete and ready for lender approval. It also coaches homeowners, using video tutorials.

“Applying for a loan modification is a stressful process that can take several months without a lot of communication back and forth from the lender,” Nurse said. “The best way to ease that stress is to know as much as you can about your options and to understand what goes on behind the scenes to avoid simple mistakes.”

Among Nurse’s need-to-know items are:

• Make sure a loan modification is right for you: Ask yourself if you are emotionally attached to the home, because a lender likely will extend the terms of the mortgage to 40 years to reduce the monthly payment. If you’re underwater on the mortgage—if you owe more than the home is worth—a modification probably is not the answer because of the years added to the note. If you’re not emotionally tied to the home, ask local realtors about options such as short sales.

• A loan modification is not a refinance: A loan modification reduces your monthly mortgage payment without requiring any credit checks, appraisals, home equity or closing costs. The only qualification is financial hardship, which can include reduction in income, illness, divorce or any number of trying circumstances.

• HAMP is not your only option: The government may want you to think that, but the fact is, more than 70 percent of modifications now are internal modifications made available by the investor holding the mortgage note. The only way to get an internal modification is to ask for one. Worth noting: HAMP bases its modifications on gross income (your mortgage must exceed 31 percent of what you make in a month) while internal modifications are based on monthly net (after-tax) income.

• Be complete and thorough in your paperwork: Lenders receive thousands of faxes every day, so make sure your account number is on every page and that all questions and categories are filled out. A document manager who comes across an incomplete form may put it aside and move on to the next one. Just like that, the 30 days you may have to wait to hear from that manager becomes 60 or 90. It’s also best to follow up with the lender weekly.

“The process can be filled with stress, mistakes and misinformation,” Nurse said. “It was a journey to get your house. Be ready for the journey to keep it.”

For more information, visit www.consumereducationonline.com.