Loan Modification, Bankruptcy Avoid Foreclosures & Save your Home
January 30th, 2010 by adminThe economy is facing recession and with it comes the struggle to keep up with the monthly mortgage bills. In such a case the strategy and ability to protect your home from foreclosure depends on where you are on the foreclosure timeline which one should be aware of to avoid foreclosure. The foreclosure timeline is-
When a borrower has missed several months of mortgage payments (generally about three months) the lender files a Notice of Default with the county recorder. The NOD identifies the default amount and the date by which the borrower must pay off the default.
When a Notice of Trustee Sale is sent after 90 days has elapsed after the NOD is filed when the lender has the right to file a Notice of Trustee Sale. It is done 20 days prior to the sale. It contains the date, time and location of the sale and posted on the property and in public location as well.
When Trustee Sale Auction held at the place and time as mentioned in the Notice of Trustee Sale. The successful bidder receives a trustee’s deed to the property once the sale is completed.
Now when you are aware of the time line, it is important to ascertain and come to a conclusion on saving your dream home from an unfortunate foreclosure. The most obvious way to save your home is to work out a mutually beneficial payment plan with your lender, or to revise the terms of your original loan agreement in order to make manageable mortgage payments to your lender. Lenders can help you out in the loan modification process but it can be frustrating for the borrower due to pressure of work on the lender. In such a case online law firms looks at all of the aspects of your loan agreement and gives you the best possible leverage when negotiating the terms of your loan with your lender.
Borrowers can also feel protected from engaging in unfair lending practices through a number of federal laws. Borrowers can be the victim of predatory lending practices without even knowing a bit about it. In such a scenario, a forensic loan audit is done on the original loan documents and if you have been a victim of predatory lending, you may have the right to file a lawsuit against your lender and to put a stop to the foreclosure process for the duration of the suit.
The next best option is to declare Bankruptcy which puts an immediate stop on the foreclosure process, hence providing with an opportunity to start fresh on your finances. It is the solution that you can resort to when you are the facing the difficulty in paying your monthly mortgage bills and getting into additional debts. The solutions are, therefore attainable to enter into a loan modification process and working out on a mutually beneficial payment plan, protection from predatory lending practices on the part of the borrower and declaring bankruptcy in order to avoid foreclosures. Online law firms have expert attorneys who specialize in loan modifications and foreclosure prevention to help out in moments of recovery.
Verified Loan Modification Results
January 23rd, 2010 by adminA retiring Chicago city employee had her home loan with CitiMortgage modified to 2 percent on a 40 year amortization and granted a two month payment holiday to rebuild reserves. Her husband has social security and a small pension but She was facing a large drop in pay as her retirement date of June 30, 2009 was fast approaching.
She would be receiving a pension at only 40% of her prior pay and she didn’t have enough social security quarters to draw her own benefit. They had never been late on their mortgage so making a case for not being able to afford it might look opportunistic. I was very reluctant to take on this client because 31% of their future combined income was so low that I just couldn’t imagine CitiMortgage coming through for them so I advised that they try to sell the property while I made their plea for Making Home Affordable (MHA) with CitiMortgage.
They had listed their home with a local realtor and weren’t able to get any bites even at what they owed so this was a scary situation all the way around. I have only the highest regards for CitiMortgage loss mitigation department because they were willing to work on preventing a train wreck rather than watch idly by. This was a fairly aggressive loan mod application because our client maintained her perfect credit and headed off future problems by contacting us in advance of her drop in pay. See www.illinoismortgagemods.com to read more typical results.
A St. Charles residential contractor gave up on waiting for building to rebound and retired to a small carpentry pension and social security. I prepared his Chapter 7 bankruptcy so that he could strip away all his other debt and try to hang onto his home. I then submitted a mortgage modification request to Chase/EMC and they very generously modified his subprime loan into a prime loan and cut his payment by 50%. There is now no question he will be able to afford the payments going forward and enjoy retirement as a homeowner.
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
Feldman Law Center – The Home Loan Modification Jungle
January 7th, 2010 by adminFeldman Law Center – News by Feldman Law Center – “It’s a jungle out there, kiddies…” ? Jimmy Buffet
Jimmy Buffet wasn’t talking about the home loan modification process, but he could have been. For home owners attempting to pick their way through a loan modification on their own, the experience is not much different than heading into the wild without a guide. Getting lost (waiting weeks for a reply to the simplest questions), taking wrong turns requiring backtracking (multiple submissions of the same paperwork), and surprise attacks from wildlife (rejection of your application for the slightest mis-step) are all part of the territory.
Steven Feldman, of The Feldman Law Center in Mission Viejo, California said recently, “We’ve negotiated loan modifications with just about every lender and servicer in the business. It’s amazing how each one has a slightly different method of measuring qualifying criteria, how much weight certain information carries, and what constitutes a deal breaker.”
The same information submitted to different lenders will often result in completely different outcomes. Amounts in disposable income, in terms of what is too much and what is too little, have different thresholds at different lenders. The same can be said for debt-to-income ratios, current income, expenses, and estimated payment capability. The tiniest of variations in set parameters between lenders can make a huge difference in the number and types of homeowners that qualify for home loan modifications.
The key for homeowners is to align themselves with firms that are familiar with what each lender considers as the key targets for financial information. To that, Mr. Feldman said, “Having executed over six hundred modifications, we feel like we have a pretty good handle on what each lender/servicer is looking for in terms of what financial information qualifies an applicant and what doesn’t.” He added, “Back in the day, mortgages were a pretty straightforward proposition. A fixed interest rate, 360 identical payment coupons, and payoff at maturity in thirty years were the standard. Now, with so many moving parts in a mortgage, you have to stay on top of all them because they all inter-relate and a couple of bucks here or there can make the difference between getting what you want and being turned down.”
The company line for lenders and servicers is that they follow parameters set within the Obama administration’s Home Affordable Modification Program, but attorneys with hundreds of executed modifications behind them tend to disagree. Mr. Feldman is one of them. He said, “We know of several instances where homeowners with almost identical incomes, ratios, etc. applied with different lenders. There were approvals by one lender while others were turned down. The key is knowing what the lenders want so the information can be presented in a manner that suits their protocol.”
Getting a guide for a trip in through a jungle is seen as plain common sense. Just like going on safari, the complexities of negotiating a successful home loan modification require guidance with expertise, knowledge, and experience. Get an attorney to guide your home loan modification. It may not save your life but it could save your home.
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:
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
Mortgage loan modification and the law
December 30th, 2009 by adminThe passage of legislation that affects the mortgage industry has taken a major upswing.
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.
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.
Loan Modification- Serves Fruitful in Reducing Mortgage Payments & Avoiding Foreclosures
December 21st, 2009 by adminA loan modification reduces monthly mortgage payments and makes them more affordable for you. Loan modifications can be done whether or not a person is behind in the loan payments, based on his or her financial situation, current hardship, and ability to make smaller payments. Loan modification is a permanent change to the terms of your mortgage or home loan. A loan modification can result in a lower monthly payment through an interest rate reduction, increasing the length of the loan, lowering of the principal balance, setting up payments for back-interest owed, or a combination of these options, lowering or fixing interest rates.
Loan modifications avoid foreclosure and this option is gaining in popularity as lenders realize that keeping homeowners in their home actually might save them money. Foreclosure is an expensive process for banks, and with the current downturn in real estate values, lenders do not want millions of dollars getting into foreclosures. Since the cost of modification can be much less than the cost of foreclosure, banks and lenders are often willing to negotiate reasonable terms and modify existing mortgage payment terms.
So you have made the right decision to go for loan modification according to what is discussed above. But filing it on your own can make you wait longer for things to get into shape and your loan modification to take place. Given the present housing crisis, banks and lenders have been overwhelmed with loan modification requests and are very difficult to work with. Consulting attorneys can help you through this ordeal and take the burden off of your shoulders. Attorneys know the way things are and they are in constant negotiation with many of the major lenders in the country. This enables us to negotiate the lowest rate for your loan modification in the most expedient manner possible. Most of the banks are already involved in predatory lending lawsuits, and want to make loan modification process run smoothly for our attorneys. Working with attorneys enables you to use progressive tactics to accomplish aggressive solutions. The attorneys can then examine your financial statements, income and expenses, as well as the lender’s expenses and terms, and negotiate to get you the best loan terms that fit your present financial situation.
How can I access that I need to go for a Loan Modification?
The first and foremost condition which can make you think about loan modification is the inability to refinance due to loss of equity, owing more than your home is worth. Next comes the inability to refinance due to late or irregular mortgage payments, then if you are facing financial hardship arising out of loss of job, loss of income due to divorce or a sudden death of a earning family member or due to medical expenses and a financial condition leading to foreclosure.
In any of the above cases loan modification can be applied for and doing it on your own could be trouble some for you to stick to your phone explaining your case again and again. There is a constant run for you from pillar to post including wastage of valuable time and in such a scenario, consulting an attorney can serve worthwhile for you to get loan modifications done that will reduce mortgage payments considerably and avoid foreclosures.
Feldman Law Center – Loan Modification FAQs
December 20th, 2009 by adminYou may have a number of questions regarding loan modifications and how they can help you avoid foreclosure. Loan modifications have been all over the news lately. President Obama has passed major, historic legislation giving homeowners more access to loan modifications; the California legislature has also passed legislation promoting loan modifications.
Here are some questions and some answers for loan modifications:
Q: What is a loan modification?
A: A loan modification is an agreement between a lender and a borrower to change the original terms of a loan in order to make payments more affordable. For homeowners, a California loan modification could be a way to stay in their home. A loan modification attorney can be a major asset when trying to get a loan modification.
Q: How can a loan modification be accomplished?
A: There are actually a number of different ways to get a loan modification. The interest rate on a loan can be either lowered temporarily, or permanently set at a lower rate. An adjustable rate could be set to a fixed rate. The term of the loan could be changed, from say 30 years to 40 years. There could be a principal reduction of the loan amount. There are other ways and you could also have any combination of options. All of this is geared towards lowering your monthly payments and making your mortgage more affordable.
Q: How common are loan modifications?
A: As the real estate crisis continues, loan modifications are becoming increasingly common. Loan modifications have been around for a very long time, but only when many people are in danger of losing their homes does everyone begin to ask questions. Some think loan modifications are a new invention, or a scam, but people with mortgages have been getting loan modifications for quite a while.
Q: Does the federal of California state government play a role in loan modifications?
A: As so many people are suffering due to the economic crisis, President Obama and the California legislature have passed various laws pressuring lenders to offer loan modifications. Lenders are not opposed to loan modifications, especially at a time when so many Americans are facing foreclosure. A foreclosure hurts the banks’ bottom lines, and the industry has already seen hundreds of billions of dollars in financial loss due to the mortgage crisis. California passed a law in 2008 promoting loan modifications, and in early 2009 President Obama wasted no time in helping people get the loan modifications they need to stay in their homes. With Freddie Mac and Fannie Mae in serious trouble due to foreclosures (both of which are federal entities), it behooves the federal government to act that much quicker in saving people’s livelihood.
As you can see, there is a lot of information out there on loan modifications, and many people are unaware as to whether or not they qualify. If you are facing foreclosure or facing another financial crisis, contact a qualified California home loan modification attorney today and get “in the know.”
Loan Modification- Serves Fruitful in Reducing Mortgage Payments & Avoiding Foreclosures
December 19th, 2009 by adminA loan modification reduces monthly mortgage payments and makes them more affordable for you. Loan modifications can be done whether or not a person is behind in the loan payments, based on his or her financial situation, current hardship, and ability to make smaller payments. Loan modification is a permanent change to the terms of your mortgage or home loan. A loan modification can result in a lower monthly payment through an interest rate reduction, increasing the length of the loan, lowering of the principal balance, setting up payments for back-interest owed, or a combination of these options, lowering or fixing interest rates.
Loan modifications avoid foreclosure and this option is gaining in popularity as lenders realize that keeping homeowners in their home actually might save them money. Foreclosure is an expensive process for banks, and with the current downturn in real estate values, lenders do not want millions of dollars getting into foreclosures. Since the cost of modification can be much less than the cost of foreclosure, banks and lenders are often willing to negotiate reasonable terms and modify existing mortgage payment terms.
So you have made the right decision to go for loan modification according to what is discussed above. But filing it on your own can make you wait longer for things to get into shape and your loan modification to take place. Given the present housing crisis, banks and lenders have been overwhelmed with loan modification requests and are very difficult to work with. Consulting attorneys can help you through this ordeal and take the burden off of your shoulders. Attorneys know the way things are and they are in constant negotiation with many of the major lenders in the country. This enables us to negotiate the lowest rate for your loan modification in the most expedient manner possible. Most of the banks are already involved in predatory lending lawsuits, and want to make loan modification process run smoothly for our attorneys. Working with attorneys enables you to use progressive tactics to accomplish aggressive solutions. The attorneys can then examine your financial statements, income and expenses, as well as the lender’s expenses and terms, and negotiate to get you the best loan terms that fit your present financial situation.
How can I access that I need to go for a Loan Modification?
The first and foremost condition which can make you think about loan modification is the inability to refinance due to loss of equity, owing more than your home is worth. Next comes the inability to refinance due to late or irregular mortgage payments, then if you are facing financial hardship arising out of loss of job, loss of income due to divorce or a sudden death of a earning family member or due to medical expenses and a financial condition leading to foreclosure.
In any of the above cases loan modification can be applied for and doing it on your own could be trouble some for you to stick to your phone explaining your case again and again. There is a constant run for you from pillar to post including wastage of valuable time and in such a scenario, consulting an attorney can serve worthwhile for you to get loan modifications done that will reduce mortgage payments considerably and avoid foreclosures.
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
Loan Modification Help Center – Is It Too Late For a Loan Modification?
December 13th, 2009 by adminYour spouse lost her job, your wages were cut, you got behind on the mortgage, then got even further behind and now you have received a foreclosure notice in the mail. You start to question whether or not you have options, and whether or not it is worth even putting up a fight any longer.
Truth is, it is not too late. A loan modification could help you, and a California home loan modification attorney could work with you to stop that foreclosure dead in its tracks. The common myth about loan modifications is that once the wheels of foreclosure have begun to spin there is nothing you can do to stop them. However, as long as you still reside in the home, meaning that you have not voluntarily abandoned it, or that the home has not been sold at auction, you may still have time to work out a loan modification with your lender. The sooner you take action, the more options you will have available to you. Time is of the essence, but you must contact your California home loan modification attorney to see what your options are.
Demonstrating a good faith effort by contacting your lender can often buy you extra time. Banks and lenders suffer a financial loss on most foreclosures, and are willing to discuss loan modifications, even late into the foreclosure process.
California loan modification attorneys understand the complex nature of loan modifications, and have intimate knowledge of lenders, banks, the foreclosure process and other options available to you. Without this knowledge, the sense of hopelessness associated with foreclosure may lead you to make a poor decision. Truth be told, foreclosure is only a term, and until your home is auctioned off (or until you walk away) you are still in control.
In fact, loan modifications are becoming so vital to the real estate industry, banks, lenders, mortgage companies and America in general, that numerous business associations are calling for greater access to them. For example, the American Society of Appraisers is calling for more loan modifications throughout the country. Various industries are calling for the same thing, because loan modifications are keeping people in their homes. Hardly anyone is well-served by millions of homes going into foreclosure, leaving people on the street, living with their parents or without a hope.
There are tens of thousands of stories about people living in California who were able to stay in their homes, avoid foreclosure and live there they wanted to. One small business owner had prostate cancer and fell eight months behind on his mortgage on a house he had owned for 20 years. A California loan modification attorney stopped the foreclosure auction, cut his interest rate by more than 7% and the monthly payment by more than $1,800. Another story about a mother of two from the Inland Empire who was also a widow was almost heartbreaking, until a California home loan modification attorney helped her cut her payments in half.
Stories such as this are true, and could be your story, but only if you act quickly and find out what your options are.
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.
