Feldman Law Center – Home Loan Modifications as Homeowners Best Option
January 20th, 2010 by adminFeldman Law Center – News by Feldman Law Center – For all the negatives that have been written about loan modifications, and there have been a lot, the option is far and away the best option for struggling homeowners trying to stay in their homes and preserve their credit scores. As property values have plummeted, the possibility of selling or refinancing the home has been erased. That leaves foreclosure, a short sale, or short refinancing as the remaining options outside of a loan modification for homeowners to resolve their issues with their lenders. All of those options do extreme damage to credit scores and stay on the homeowners’ credit report for a minimum of seven years.
A home loan modification is basically a change in the terms of a homeowner’s existing mortgage with the objective of bringing the monthly mortgage payment back in line with the homeowner’s current financial situation. By modifying the existing mortgage, the transition doesn’t affect the credit score of the homeowner. Additionally, the credit score of the homeowner does not carry much weight in the modification process.
A home loan modification’s main feature is normally the alteration of terms on the existing mortgage’s first five years. It’s not unheard of for modifications to alter terms for the life of the mortgage but most of them cover the first five years. It is hoped by all that conditions in the economy, real estate values, and the job market improve enough by that time that homeowners will either be able to sell the property or afford payments at the higher levels that go into effect once the modified rates revert back to their original levels. The modification benefits the lender by keeping the homeowner in place, which results in continued cash flow from the property, and by preventing the property from going into foreclosure and back on to the books of the lender.
As simple as the process has been made to sound here, the negotiation of terms on a mortgage is not in the normal purview of a homeowner. Hiring legal representation is the best way for a homeowner to ensure that will get the best results possible for their personal situation. An attorney will base the negotiation for the loan modification on the homeowner’s total financial picture, including credit card and consumer debt. Where it makes sense, the firm may initiate debt negotiations, along with the home loan modification, on the other debts carried by the homeowner including credit cards, revolving debt, consumer loans, unpaid medical bills, etc.
The law firm will also assist in the drafting of a hardship letter, which details the conditions of the challenges facing the homeowner. Hardships can include an adjustable rate mortgage with payments that have increased to the point where they are out of reach of the homeowner, pay cuts, job losses, illness, or divorce. The hardship letter should also include the homeowners plan for dealing with and getting past the current hardship. From that point negotiations begin, the ultimate prize being the modification.
If you are struggling with your mortgage payments, are behind on payments, and/or facing foreclosure, talk to an attorney’s office that specializes in home loan modifications. The Feldman Law Center has executed over 600 loan modifications and has the experience and knowledge to get the best possible results to address your specific needs. Call them today at (949) 544 8224.
Bob The Homeowner Versus Net Present Value
January 17th, 2010 by adminA little known aspect of the Obama Administration’s “Making Home Affordable” plan is the “Net Present Value” test which essentially determines whether a loan modification or a foreclosure and sale will provide a better return for the investors behind the mortgage in question. The calculation takes the proposed monthly payment in a home loan modification and multiplies it over the life of the loan (payment x 12 months x 30 years). If that total comes in above what a sale and foreclosure would yield, the calculation would favor a modification. If it falls short, the calculation would lean toward foreclosure and sale.
Foreclosures in many scenarios will favor the investors while a modification often works to the advantage of the servicer. For the investor, a foreclosure and subsequent sale may result in a loss of principle but money coming back to the investor can be re-invested in other vehicles which can provide yield and returns. The disadvantage for the servicers is that, without monthly payments from the property, they lose the fees they were able to charge the investor for handling the payments, billing, and communication with the homeowner. A loan modification, on the other hand, benefits the servicer by keeping the payment stream, and the fees they can charge on it, alive. The modification hurts the investor by forcing a mark to market valuation which reflects the loss on the mortgage (also known as a haircut) due to a lower interest rate and, if applicable, a reduction in principle.
The third party in the game is the homeowner (Bob) applying for the loan modification. It’s likely that the homeowner has heard of “Making Home Affordable” and is very aware of the 2% interest rates that were part of the headlines generated by the plan. Naturally, that’s the rate he wants. Unfortunately, getting Bob a 2% interest rate is not in the interest of either the investor or the servicer of his mortgage. For the investor, the lower the interest rate goes the bigger the haircut. Memorializing it in a modification will turn a theoretical haircut into an actual loss on the books. For the servicer, an interest rate at that low level can push the NPV score to a point where the test favors foreclosure over modification. If Bob’s property isn’t considered a lost cause it’s extremely unlikely that he’s going to see anything close to that 2% rate.
One of the other variables is Bob’s commission based income. His payments are going to be capped at 31% of his average monthly income, which has dropped considerably. In fact, it’s dropped so much that even by maxing his payment out at 31% of his monthly pay he falls below the estimated foreclosure and sale score. Conditions dictate foreclosure according to the net present value test.
The investor, seeing a score that clearly calls for foreclosure takes a look at sales statistics for Bob’s town and his neighborhood. Nothing is moving and foreclosure backlogs are growing. Average bids at auctions are coming in at less than 60% of the loan amount. Less than 2% of foreclosed houses are selling at auction. The estimate on what the property can realize in a foreclosure and sale is way too high for current conditions. If the house sells, and it’s a big if, it won’t be for anything near the price used in the NPV calculation. The investor decides to pull back on the foreclosure due to the regular hits he’s already taking in his portfolio and his aversion to putting another property into the portfolio. The pullback on the foreclosure doesn’t mean he’s going to allow for a modification, however. There’s a haircut waiting with the modification as well. This property is going to sit in limbo while things work themselves out.
There won’t be any communication regarding this stalemate between Bob, the servicer, or the lender. From Bob’s point of view the servicer’s people aren’t responsive and aren’t calling him back. The truth of the matter is that the servicer’s processors know as much about Bob’s situation as Bob does; not much. The sides settle in to the day to day of nothing happening which stretches to months.
The commentary from homeowners that have tried to modify their mortgages under the guidelines of Making Home Affordable runs along a thread very similar to that of our theoretical Bob. While much of the delay can be attributed to overload, staffing, and training issues at the lenders and servicers, the stalemate between servicers and their investors is bogging things down as well. The Safe Harbor Bill, passed by Congress in May, was aimed directly at this standoff. Its main objective was to remove the threat of lawsuits filed by investors when they felt that the servicers were acting on their own best interests in approving loan modifications.
While there may be a conflict of interest currently, neither side wants to go to war over this issue. Despite the increased autonomy given the servicers, it’s likely that they will still want to be on the same page with investors to preserve long standing relationships that have worked well over time. It therefore looks like limbo, status quo, and homeowners waiting for a knock on the door will rule the day and the near term.
Feldman Law Center – Federal Government Prodding Loan Companies
January 13th, 2010 by adminLoan modifications have grown in popularity over the years because they have been increasingly successful in keeping people in their homes. As a result, the federal government has become a big fan of loan modifications and is getting more involved. The Obama administration is pressing mortgage servicing companies to step up their efforts to modify troubled loans under its housing rescue program. The White House is frustrated with the pace at which homes are being foreclosed on, as well as the pace with which loan modifications are being processed.
The Obama administration has seen a significant “ramp up” of loan modification activity, but it often times does not seem like enough when so many people are hurting. Federal loan modifications have helped some people stay in their homes, but the federal government often cannot give enough attention to all of the people who need help right now. Think about the millions upon millions of homeowners who need assistance with their mortgages and how few government representatives there are helping them. What many people need is a California loan modification attorney working with them, one on one, to keep their homes.
Housing counselors say they are disappointed by the progress made so far under the current Administration’s program, saying they are not getting anywhere near the results they were hoping for. They are saying the services are not up to par, which often means that there are not enough people answering phones for those who are calling. Sometimes, housing counselors have to educate the staff about their own programs, which means the government is not properly educating the people who were hired to help the public. In fact, Maeve Elise Brown of the Housing and Economic Rights Advocates said “Homeowners on their own are not able to navigate the system.”
All of this translates into homeowners needing an advocate who can take the time to listen to their needs, help them with their problem and be their advocate when no one else is helping them. A qualified loan modification attorney can walk you through all of the challenges and headaches that people are dealing with, whether you are considering a foreclosure, short sale or bankruptcy. A loan modification attorney can act on your behalf and aggressively fight for you, your family and your home.
Loan modifications can help you avoid foreclosure and stay in your home by renegotiating your mortgage terms to get your monthly payments much lower. This can be done by lowering your interest rate, getting a fixed rate instead of an adjustable interest rate, getting a principal reduction or some other option. A qualified California loan modification attorney will be able to effectively negotiate with banks and lenders, getting you the best terms possible for your loan modification. These are not easy times we live in, and everyone around you might be facing the most difficult financial circumstances anyone has faced in the last fifty years. However, with a loan modification attorney, you can rest assured that you have someone working on your behalf to help you avoid the storm.
Visit us at http://www.feldmanlawcenter.com or call 800-588-0425
Legal Disclaimer
The information contained herein is provided for general information and advertising purposes only and is not intended to convey a legal option nor legal advice for any particular case or situation. Nothing in this article shall create an attorney-client relationship. Nothing sent to this law office via e-mail shall constitute an attorney-client relationship. Nothing contained in this article shall be construed to be a guarantee or prediction of result. Prior results are provided for general information purposes only and do not guaranty, warranty or predict a similar outcome with respect to any future matter. Results achieved depend on individual circumstances and not everyone will qualify or be successful in restructuring their mortgage loan.
Author: Greg Feldman
Home Loan Modification Myths Circulating During This Time of Economical Difficulty
January 10th, 2010 by adminEveryone is talking about home loan modification. Even though this has always been a option for homeowners struggling to pay their mortgages, the process of renegotiating the terms of your loan and having it adjusted by the bank or lending institution, is much more commonplace today. Even so, there are still many myths and misconceptions about home loan modification.
Since the President’s new Making Home Affordable (MHA) plan has been introduced, there is now an understandable series of steps lenders must follow before granting home modification loans. There is $75 billion set aside for the Homeowner Stability Initiative that is to be used for loan modifications between March 4, 2009 and December 31, 2012
Lenders participating in this program are paid money to adjust your loan and this incentive makes a modified loan a much better deal than foreclosure or something else. Through this method, the MHA hopes to help 4-5 million homeowners get back on their feet financially and keep their homes.
There is still a lot of false information about the MHA plan. Some people think that participation is mandatory and lenders are being forced into the plan. This is not true, there is a clean set of procedures for modifying loans and the plan does give lenders incentives to work out modifications, but no lender must participate.
The bank has to decide if a modified loan will be more profitable than foreclosing and they will choose the option that gives them the most profit. Foreclosure is a very expensive, lengthy, unprofitable process for lenders. With the recent incentive payments offered by the MHA plan, lenders usually decide that they would rather modify a loan than proceed with foreclosure.
Another common misunderstanding is that the Homeowner Stability Initiative plan will help speculators and house flippers. This is also false. To qualify for a loan modification in the MHA plan, the homeowner must be living in the home to which the mortgage applies. This will be checked. Vacant, condemned, investment properties and second homes are not eligible.
There are a lot of home loan modification myths circulating during this time of economical difficulty. The MHA plan is new and people have yet to learn about it. Learn the facts and understand this loan modification plan.
Learn all you can about home loan modifications and don’t let false information keep you from applying for this new program. You can avoid foreclosure and lower your mortgage payments
Loan Modification Problems in Las Vegas
January 7th, 2010 by adminThere is a lot hand wringing and anxiety in the media these days regarding paying fees for loan modifications. Barack Obama was even quoted as saying, “If you have to pay, walk away”. Generally speaking, the “do it yourself and save a lot of money theory” is advanced with regularity as something anyone can do. That is, until people in the real world actually try to do it by themselves. An article chronicling the labors and frustrations of people that have tried to modify their own loans was recently posted in the Las Vegas Sun. It is a must-read for anyone contemplating the do-it-yourself path toward a loan modification.
Some quotes and comments:
10 Frequently Asked Questions on Loan Modifications
January 4th, 2010 by adminQ) Is unemployment considered a hardship?
Weight Loss Meal Plans – How They Can be Effective?
January 1st, 2010 by adminWhen it comes to sloughing off some excessive pounds from the body, I have seen many individuals confused and thinking that what they have to incorporate and apply to their lifestyle so they would slough off the excessive pounds from their body which they have gained with the course of time. According to me, weight loss meal plans and weight loss diet plans can be the sole answer for your concerns because you don’t want those excessive pounds in your abdominal area to remain for a long period of time. If you won’t divert your attention towards weight loss meal plans or weight loss diet plans then you will be exposing your body towards several hazardous aliments and disorders.
If you consider a weight loss mean plan as an option for your weight loss which is healthy and designed considering your body type then you won’t only lose a considerable amount of weight from the different parts of your body but you would also improve your overall health and physical appearance as well.
However, before selecting any particular type of weight loss diet plan for yourself, you should make sure that you are seeking advice from your physician because he/she can assure you that whether this type of weight loss meal plan will suit your body or not. If you get a green signal from your physician then you select a particular type of weight loss meal plan for yourself. However, I would like make one thing very clear that once you opt for a weight loss meal plan then you must stick to the plan unless it is completed. If you give up in the middle of the plan, then you might face some negative consequences in the days to come.
There are lots of different characteristics of different weight loss meal plans, however, I would like to share some of them with you so you can identify the effectiveness of a particular type of meal plan.
? An effective weight loss meal plan will be dependant on natural foods.
? You would be advised to consume frequent meals (5-6 meals a day but in small proportions)
? Fruits and vegetables will make the most of your weight loss meal plan
? There will be a check and balance in your calorie intake
Above mentioned were some of the highlighted characteristics of different weight loss meal plans. You must find out these characteristics in your plan before making any final decision.
Feldman Law Center – Avoiding Loan Modification Scams
December 31st, 2009 by adminAvoiding a loan modification scam can be difficult, especially if you have not done your homework. Today, recent statistics show that one in ten homeowners is either in foreclosure or behind on their payments. This means there are millions of homeowners in dangerous financial positions, with millions more on the brink of chaos. There are so many loan modification companies in California, let alone America, that keeping on top of the illegitimate ones is impossible.
Here are some common loan modification scams being perpetrated throughout California:
The Disappearing Foreclosure Professional ? This is the kind of person who promises the world, then takes a payment and finally just vanishes. This individual will perform little or no service, will take your money and will leave you with all the problems you had to start with.
Loan Modification Helpers ? In this situation, a loan modification “expert” claiming they can negotiate directly with your bank. However, they never produce the results they promise. Sometimes, the expert will gain your trust and try to get you to make payments directly to them. Unfortunately, this loan modification scam can take quite a bit of your money.
Sale and Leaseback Scams ? There are people out there claiming to be able to bail you out of a jam. You sign over your house to the scam artist and then pay that person rent. They then claim that they will sell the house back to you at a bargain price later. Of course, being that this is a scam, these people often sell the house out from under the former owner, and they don’t tell the current occupants. What winds up happening is that you rent the home you used to own, then the home gets sold and you are left homeless.
Books and Seminars ? While attending a loan modification seminar, or buying a “do your own loan modification” book is not necessarily a scam, they can be misleading. Good writers and good public speakers can often portray a scenario as being much easier than it really is. For example, the loan modification process is complex, and there is quite a bit on the line for you and your family. A loan modification seminar or loan modification book will suggest that it is a simple process that you can handle all on your own. However, without a solid understanding of real estate, mortgages, foreclosure, the courts and lenders, doing a loan modification on your own is extremely difficult. You wind up exposing yourself to all kinds of mistakes, and without someone helping you there is a great chance you could be taken advantage of by a lender.
Finding a quality loan modification company is important. The Feldman Law Center has been around for many years, and we are constantly helping people who are facing foreclosure and other financial challenges. If you are afraid of losing your home, a California loan modification attorney can walk you through the loan modification process, negotiate with lenders and help keep you in your home, where you belong.
Visit us at http://www.feldmanlawcenter.com or call 800-588-0425
Legal Disclaimer
The information contained herein is provided for general information and advertising purposes only and is not intended to convey a legal option nor legal advice for any particular case or situation. Nothing in this article shall create an attorney-client relationship. Nothing sent to this law office via e-mail shall constitute an attorney-client relationship. Nothing contained in this article shall be construed to be a guarantee or prediction of result. Prior results are provided for general information purposes only and do not guaranty, warranty or predict a similar outcome with respect to any future matter. Results achieved depend on individual circumstances and not everyone will qualify or be successful in restructuring their mortgage loan.
Author: Greg Feldman
The Early Stages of This Loan Modification Plan
December 28th, 2009 by adminWhen the first stages of discussions and talks got underway on Obama’s loan modification program, many people responded with good cheer and a healthy dose of curiosity. Many politicians were uncomfortable in their division of their stance against, and with Obama’s loan modification plan, that would provide incentives for lenders to help homeowners keep or modify their mortgages on their homes. There of course, are stipulations for the handing out and the usage of these loans. This includes a lending company to stimulate the housing economy by loan modifications to a homeowner deemed eligible to receive the loan. Each year the recipeints could receive up to a thousand dollars for up to five years in the maintenance of their mortgage.
Within the early stages of this loan modification plan, many people were already bailing out of their mortgages by the thousands and leaving lenders with a bad taste for helping America’s homeowner at all. On the other side, with money already being given to these large corporate banks, holding companies and investment companies, most American’s were already losing their faith in the companies who handle, negotiate, process and finalize their loans.
This seemed to be a standoff at first with politicians heating up the talk radio shows, firing rounds at the President from their political podiums, and hounding the House and Senate representatives with fervor over the government bailouts. This was not something that suddenly sounded just and fair for the average American, because once again, the Federal government was bailing out the bad guys.
The reports of the housing industry’s downfall, came on the heels of homeowners being served with eviction notices, while still other people were ultimately defaulting on loans that had sky-rocketed to momentous proportions. This grand scheme of Obama’s loan modification program came into the light as a way to use federal money, up to the tune of 9 million dollars to help lenders adjust and modify their client’s home mortgages. How sad to see the Federal government bailing out these same companies that were looking for their own skins to be saved, while still closing down on the necks of the American people they were set upon to make loans to.
This was just one of Obama’s first ventures into helping America get back onto its feet, and it comes hot on the heels of the occupancy of the oval office. With the promise of the American dream held in the hands of the federal government, one wonders just what the loan modification will eventually do for the American homeowner.
How to Get Your Mortgage Modified
December 25th, 2009 by adminAll of the major lenders are really getting up to speed with the Making Home Affordable (MHA) loan modification program. This is essentially a “Cash for Clunkers” program for distressed homeowners. If you think that you may qualify to trade in that clunker subprime loan or perhaps are facing future interest rate adjustments on a prime loan then the time to act is now.
This is an incredibly generous government program that can help homeowners adjust their mortgage payments to their financial situation rather than market conditions. A new home buyer with perfect credit, a large down payment and plenty of income might qualify for 5.5% on a 30 year fixed mortgage whereas a current homeowner with terrible credit, no equity and reduced income can qualify for as low as 2%. Hey, no one said life is fair.
There are many people who can benefit for the MHA program. Have you experienced a reduction in income? Has your mortgage rate adjusted up? Have you gotten so far behind that you can’t catch up but could make future payments at a lower rate if your loan was reset? Are you just in a really lousy subprime loan and would like something better? It is possible to seek a loan modification on your own directly with your lender or through a government counseling center. That should be easier to do but the fact is that it isn’t.
Many of my clients have tried to do it on their own and were frustrated. By all means don’t even consider paying anyone a large upfront fee to seek a loan modification on your behalf however, I do recommend that you consider using a real estate attorney that requires only a small retainer and charges for obtaining loan modifications and not just for applying for them. You can get a free online evaluation at www.illinoismortgagemods.com Whichever route you choose, the lenders for Making Home Affordable all have the same guidelines and will need to review the same documents.
Gather your 2008 federal tax return, last 30 days paystubs, last two months bank statements, be able to express your hardship in continuing your current mortgage payments. If you are self employed then the 2007 tax return may also be needed and a year to date profit & loss.
The website referred to above has a H&R tax preparer registered with the IRS on staff (In addition to a Real Estate Attorney) so preparing past due returns and a current profit & loss can be done quickly.
Why do I Need The Knowledgable Attorneys And New Hope Mortgage Solutions to Get a Loan Modification?
December 23rd, 2009 by adminEveryone needs a Loan Modification…but who can really get them done the right way? Of course you would not want a temporary fix, you would want a fixed. After all that’s what got most people in this to begin with.
Can you do it alone? Statistics say you have about a 2% chance. The banks are not helping people as they should. There are a ton of people on You Tube and bloggers chatting about their horrible experiences as we speak. Or read…
Can the government programs that offer free help get a loan modification done? The reports on the HOPE NOW program, the only free program offered ….Well the program was offered two years ago, and designed to help 1,500,000 homeowners. As of July 30th, the program has only helped 125 of those homeowners. And please check those numbers out on Google for yourself. The program is a flop.
Let’s face it….The programs that have been offered by the government have not been successful because after paying all that money to the banks to bail them out, where would Obama get the money?
So who do you turn to for help? The answer is very simple it will take experienced, knowledgeable attorneys that have worked for years negotiating with banks lenders, and servicers to help these homeowners. New Hope Mortgage Solutions works for a network of these attorneys. New Hope Mortgage Solutions and the attorneys they work for have saved hundreds of homes since just January 2009. The attorney’s that employ New Hope Mortgage Solutions have at least six or more year’s minimum experience. This is what you need to achieve a real Loan Modification. The first thing that happens when a homeowner becomes ninety days late on their mortgage is, they receive a letter from an attorney. This attorney is employed by your lender. Don’t you feel as if your home is worth having an attorney and a company that has serious experience in this field represent you? Below are some articles really worth reading and watching…before you make your decision. It’s a tough world out there in the banking industry. Now let’s see what the experts have to say…
Click on the links I have provided below, and take a look for yourself. Having an attorney is vital in the loss mitigation process. It also prevents from getting involved with scamming loan mod companies. As you are actually retaining an Attorney with New Hope Mortgage Solutions
http://www.consumerwarningnetwork.com/2009/08/31/home-loan-modification-run-around-continues/
http://www.consumerwarningnetwork.com/2009/08/27/why-banks-make-it-so-tough-to-get-a-loan-modification/
http://blogs.trb.com/business/columnists/brackey/blog/2009/08/loan_modifications_not_happeni_1.html
http://www.bloomberg.com/apps/news?pid=20601087&sid=aYdgQkXu9eBg
Everyone but government deleveraging
First it was Wall Street. Now it’s households that are paying down their debts and starting to save a little. In the meantime, the government is still borrowing like there’s no tomorrow, hoping to ease credit-contraction pains. WSJ’s David Wessel discusses.
The composite ratio, which tracks eight closed-end installment loan categories, also hit a high at 3.35% of all outstanding accounts, seasonally adjusted, compared with the first quarter’s 3.23%. This is the sixth straight quarter that delinquencies have risen.
The culprit is the snowballing result of the longest and deepest recession since the Great Depression, according to ABA Chief Economist James Chessen.
“The problems now are the cumulative effect of the economy and job losses,” he said. “Every single month there are jobs being lost and when income falls it makes it very difficult for consumers to meet debt obligations.”
Unemployment is at 9.7%, the highest since June 1983. The government is scheduled to release September employment numbers on Friday.
“Six consecutive quarters of job losses have taken their toll,” Chessen added. “It’s stunning what’s happened. There’s a lot of pain out there as people try to make ends meet.”
“The picture won’t change until the labor market improves and the economy picks up steam,” he added. “That’s going to take time.”
If you feel you are having problems with your current financial situation, call New Hope Mortgage Solutions www.newhopemortgagesolutions or email Angella at angella@newhopemortgagesolutions.com to get a free evaluation of what can be done for your current situation. Angella will also take a free application (with a scheduled appointment) to see if you have the ratios the lenders are looking for. “The Making Homes Affordable Program”, has been very successful for us says Angella. Our attorneys have unmatched experience in the industry, and that is what counts”. “We really take our time with the homeowners, its a tough spot to be in and we want to ensure we are making this as easy as we can”. The banks are just not budging without legal representation, and that’s the truth. The banks are much more willing to speak to someone that understands the process, and has a case that is ready to go into Mitigation. Most clients have no idea of the amount of documentation and work that actually goes into actually completing a Loan Modification. With all the homeowners now not being able to qualify for a refinance or have enough equity to sell their properties, hopes for a loan modification is all they have left. Our only wish is that the homeowners are realizing the banks and the government is not just qualifying people. You must have an attorney who knows the process, and a company that works for the attorneys to walk through everything with the homeowners.
Loan Modification Help Center – How Loan Modifications Help People
December 22nd, 2009 by adminIt’s one thing to tout the promises of loan modifications, it’s a much more impressive thing to demonstrate how they have helped people avoid foreclosure and stay in their homes. Homeowners throughout America who have embraced home loan modifications have seen their lives altered for the better, and many of them have cried tears of joy at being able to remain in their homes with their families.
One man, Juliano, got a home loan modification which caused the lenders to stop the foreclosure sale. He was assisted by a loan modification company during a difficult time in his life, and has a great story to tell, instead of being just another statistic. Another man, Aaron, who is married, almost had his house sold out from under him! However, with the help of a qualified home loan modification company, he was able to keep himself and his family in his home.
A particular heart breaking story involved a woman who was in dire straits. She lost her job and went through a divorce, on top of facing a home foreclosure! The lack of equity in her home made selling it a huge challenge, and her inability to make her monthly payments meant that foreclosure was right around the corner. However after contacting a qualified home loan modification company, they renegotiated the terms of her home mortgage loan which allowed her to stay in her home and avoid foreclosure. There are countless other people who avoided foreclosure, avoided a short sale and were able to stay in their homes with their families due to the help of a loan modification attorney.
Millions of Americans are learning more about home loan modifications, and California loan modification attorneys have helped countless Californians stay in their houses. So many people have become statistics, falling victim to the current economic crisis because they were either unprepared or lacked knowledge. If people really understood just what a California home loan modification attorney could do for them, neighborhoods would have a lot less foreclosure signs.
A home loan modification could be made to the rate or the balance of your mortgage, lowering your monthly payments and giving you the option to stay in your home. Home loan modification specialists will negotiate with your lender/bank, getting them to agree to new loan terms, terms that favor your situation. Being in financial duress can be embarrassing, and you may feel as if you’re all alone in the world. However, as evidenced by the above examples, there are so many people who need help right now that reaching out for assistance actually makes you more normal.
People can be hampered by the strangest things when it comes to finances: shame; stubbornness; lack of knowledge; and other easy to fix situations. A home loan modification can be the answer most people are looking for to stay in their homes. If you need help staying in your home, contact a California home loan modification specialist. Their California home loan modification attorneys will work with you to assure you stay in your home for a long time.
Visit us at http://www.loanmodificationhelpcenter.org/ or call 800-359-6941.
Legal Disclaimer
The information contained herein is provided for general information and advertising purposes only and is not intended to convey a legal option nor legal advice for any particular case or situation. Nothing in this article shall create an attorney-client relationship. Nothing sent to this law office via e-mail shall constitute an attorney-client relationship. Nothing contained in this article shall be construed to be a guarantee or prediction of result. Prior results are provided for general information purposes only and do not guaranty, warranty or predict a similar outcome with respect to any future matter. Results achieved depend on individual circumstances and not everyone will qualify or be successful in restructuring their mortgage loan.
The Determining Factor is Your Specific Loan
December 18th, 2009 by adminIf you are one of so many Americans who has fallen victim to the economic recession and is finding it harder and harder to pay your monthly mortgage? If you are, you should make an appointment with a financial advisor who can go over the pros and cons of home loan modification versus FHA refinancing.
There are two options available for homeowners who cannot pay their mortgage loans. They are a loan modification and FHA refinancing. The one you choose depends mainly on who insures your loan. If you don’t know, call your lender and ask. There are three main insurers: Freddie Mac, Fannie Mae, and the Federal Housing Administration (FHA). These companies do not lend you money; they insure it. This means lenders have less of a risk and subsequently will offer you a lower interest rate.
Is there a difference between insurers? Not really. The determining factor is your specific loan and who insures it. There isn’t much difference between a mortgage insured by FHA and a loan insured by Fannie Mae or Freddie Mac. The insurer only really matters when restructuring enters the picture. Loans insured by Fannie Mae or Freddie Mac can participate in the new Making Home Affordable mortgage loan modifications. If the FHA insures the loan, refinancing is available through Hope for Homeowners plan.
With a FHA loan, the homeowner should investigate refinancing. The Hope for Homeowners initiative offers hope to homeowners who have been denied refinancing in the past. Lower property values have disqualified many people from refinancing. When a house loses value, it loses equity. If equity had dropped 20%, homeowners were not eligible for traditional refinancing.
There is a standard procedure for lowering your monthly mortgage payments through a Making Home Affordable loan modification plan. There are incentive payments for both lenders and borrowers that will help lead to favorable loan modification and encourage economic stability. If you have a FHA insured loan, you can get a home modification but not through the Making Home Affordable plan. The programs that deal with FHA loan modifications are not as straight forward, strict and they do not follow the same procedures.
It is not hard to understand the differences between loan modifications and FHA refinancing if you have the right information. Research it and talk to a financial advisor about reducing
Three Different Strategies to Stop Foreclosure on a Home
December 15th, 2009 by adminThree Different Strategies to Stop Foreclosure on a Home Stopping a foreclosure is no easy task, but it’s not impossible either. There are three methods that are commonly used to stop foreclosure: bankruptcy, refinancing and loan modification. Each of these methods tackles the problem of foreclosure from a different angle. The first method you can use to stop foreclosure on your home is to refinance your mortgage. When you refinance, you get a new loan to replace the old one, and the original mortgage is paid off. If you are able to refinance your home, your old lender will have to stop foreclosure proceedings because you no longer owe them any money. Your mortgage is now with the new lender. If you want to try refinancing your home, it is best to do it as soon as you know you are going to have problems keeping up with your payments. You will have a better chance of qualifying for a new mortgage loan if your credit report still shows you up-to-date on your current mortgage. Time is of the essence when considering this method. It works best as prevention. You can also halt foreclosure proceedings by filing for chapter thirteen bankruptcy reorganization. This procedure can sometimes save a home from foreclosure because it allows you to come up with a plan for paying off your debts that creditors must go along with.
However, when you file for bankruptcy, it can stay on your credit report for ten years. If your concern is more for remaining in your current home than keeping your credit report from getting too filled up with negatives, this solution might be right for you. You should talk about your situation with a qualified bankruptcy attorney who has plenty of experience representing people who are going through foreclosure. You may be able to get a free consultation so that you don’t have to pay the attorney unless you go through with the bankruptcy. The third method that can stop foreclosure on a home is loan modification. That is the process of making payment arrangements with your lender that change the payment terms on the loan so that you are able to make the payments. Most lenders require you to be behind on your payments before they will talk to you about a loan modification.
However, if you wait too long they will not work with you either. Loan modifications can be tricky, so you might want to work with a loan modification company to help you get through the process. You can also buy books that contain instructions to help you fill out the forms that you will be required to complete during the loan modification process. Hopefully, one of these three methods will help you stop the foreclosure on your house so that you can remain in your home. Research all of the methods carefully to determine whether they will help you with your situation. Each method has its own set of risks, and only you can decide which course of action to take.
DIY Loan Modification
December 15th, 2009 by adminDid you know you can do your loan modification on your own, without having to pay for the service of a professional? Many consumers today are looking to cut the cost of their mortgage, and a loan modification is one way to do that. However there are no guarantees that your request for a loan modification will go through, and that’s when consumers are faced with a choice. Do you take the chances to do it yourself, or do you leave it in the hands of a company?
Do it yourself loan modification is a complicated business, however it is very possible to accomplish. If you decide you are going to give it a try on your own, there are two important things to keep in mind. First and probably most important, you need to be honest with yourself, and with your lenders. When you submit your application, your lenders are going to want to see hard evidence that your debt to income ration, or DTIR, is what you claim it is. If there is any hint to them that you may be lying, or inflating the numbers, you will not be approved.
The second important thing to remember when performing a DIY loan modification is to keep record of everything. Get every person’s name and title when you make phone calls, reference promises and comments, keep track of dates and times. Write down everything piece of information you hear. Your mortgage company is not out to steal from you, however they are a large business, and sometimes miscommunication ensues. You want to make sure you keep a tab on everything just in case.
If you are ready to start modifying your loan, give your mortgage company a call. Don’t waste your time with customer service, because they can’t help you. Instead, ask to be transferred to the loss mitigation department. It may also be beneficial to ask for the direct line to this department, to save time when calling later. When you reach the department, explain your situation to them.
Tell them you may be delinquent on your loan and you need to modify it to avoid falling further behind, or foreclosure. Don’t say for certain that you are going to go through foreclosure, because a lender will not waste their time with you. You are just trying to convey the seriousness of the situation, and that it requires immediate attention.
At this point they are going to ask you a handful of basic questions. Just remember to be very honest with them. If the company decides that you qualify for a loan modification, they will send you everything you need to complete the DIY loan modification process
