Last month House Banking Committee Chairman Barney Frank (D-Mass.) said modify my note programs may be helping more homeowners but they aren’t anywhere near the level they should be. These programs are coming in the form of the Obama’s Making Home Affordable (MHA) and HAMP, plus many more attorney mortgage modification options that are offered by the mortgage companies. In general, homeowners are very much in agreement with Barney Frank’s assessment about Loan Adjustment and Loan Modifications Programs.
Earlier this year, the “cramdown” legislation, passed the Senate but not the House. The “cramdown” permitted bankruptcy judges to Mortgage Adjustment primary home loans; basically it gave them the authority to force the credit unions to do a Note Modifications. The reason it didn’t pass the House is that mortgage lenders promised they’d take care of the problem and help families avoid foreclosure through Loan Modifications.
So far, mortgage companies are not taking care of the problem and are far from the Governments expectations of providing Note Workout to homeowners. Too many homeowners that should be qualifying for the Note Modifications are still being denied. mortgage companies such as Bank of America are at the top of the list for not meeting Government expectations on banks. Remember, these financial institutions received millions of dollars of Troubled Asset Relief Program (TARP) money or easier to say, tax payers tax money that was implemented during the Bush Administration!
Those in the credit unions industry must understand that if there are not a significant number of Loan Modifications to stop this problem that there is a strong argument to revive the bankruptcy “cramdown” legislation. It seems extremely strong that the way the servicers are handle Loan Adjustment that it is not sufficient enough to handle the current problem. It will surely strengthen the comeback of the “cramdown” legislation and this time it would probably pass.
Last month many cities hits double digit marks for unemployment. This can only follow with elevating homes needing Loan Modifications to avoid foreclosure as unemployment correlates to the number of foreclosures.
In addition, seniors close to retirement have found that their retirement is gone, lost by Wall Street. Or they had to borrower from retirement to pay their mortgage because they couldn’t get a Note Adjustment. Some have even borrowed money from their credit cards and have racked up a significant amount of debt to just pay their mortgage.
Some homeowners have filed for bankruptcy to relieve themselves of all debt but their home loan so that they can qualify for a Loan Adjustment. If you plan on doing this make sure your Attorney carves the home out of the bankruptcy and that it is written clearly in the paperwork. In general, you will need that specific information from the Bankruptcy Attorney in order to qualify for a Mortgage Workout. Consulting with a Loan Modification Attorney and having them handle your loan modification would be the best bet to get your Mortgage Adjustment done correctly.
Showing posts with label stop foreclosure. Show all posts
Showing posts with label stop foreclosure. Show all posts
Thursday, September 10, 2009
Monday, July 6, 2009
A Big Foreclosure Moratorium To Increase Loan Workouts
The california attorney loan modification Prevention Act, signed by Gov. Schwarzenegger, adds 90 days onto the time period between when homeowners defaulting on a note and when their home can be repossessed in foreclosure. Banks can avoid the 90-day holdup by having a comprehensive program in place to make mortgage more affordable by reducing the interest rate. Such programs must be approved by regulators.
The goal is to compel Banks to do systematic loan modification across California to reduce the foreclosure rate. California’s save my home rate is said to be the highest in the nation. Of course we have all read the stories of even seemingly rich celebrities losing their multi-million dollar mansions to foreclosure in recent months. The slowing down and stopping of foreclosures is seen in large part as the path back to economical stability in many states.
In the past few months, 15 lenders have agreed to implement the Obama plan, according to the Web site MakingHomeAffordable.gov. Government spokespersons have said that about 100,000 homeowners nationwide have been sent offers for trial modifications, a relatively modest number compared with the administration's goal of helping 3 million to 4 million homeowners to avoid foreclosure.
In California, the Department of Corporations will determine whether banks qualify for an exemption from the moratorium. About a dozen mortgage companies had applied as of last week, said department spokesperson Mark Leyes; they will now have a 30-day grace period while their applications are reviewed. A list of the participating banks will be posted on www.corp.ca.gov.
The department will monitor the Banks success rate regularly, to make sure that they have a program in place. Still, there is no guarantee in the law that anyone is going to get a loan workout. The hope is that http://www.callalms.com/loan-modification-news-blog/viewpost/95 will make a good-faith effort to make loans affordable and sustainable for homeowners. It is also the hope that homeowners in turn will be able to keep up with their new mortgage payments without undue financial strain. This in turn, will result in homeowners again feeling comfortable to start spending their money and pouring it back into the economy.
The California law, like the Obama plan, says that can determine whether a foreclosure or a loan workout is more cost-effective and can pick the cheaper option.
You can visit http://www.callalms.com to learn more about the laws and get free tips on how to succeed at your loan modification. If you want to get an immediate responce from an attorney backed loan modification firm based out of california please feel free to use the quick application that can be found at http://www.callalms.com/secure-online-application where you can do a secure online inquiry that will be followed up on within one hour by a professional.
The goal is to compel Banks to do systematic loan modification across California to reduce the foreclosure rate. California’s save my home rate is said to be the highest in the nation. Of course we have all read the stories of even seemingly rich celebrities losing their multi-million dollar mansions to foreclosure in recent months. The slowing down and stopping of foreclosures is seen in large part as the path back to economical stability in many states.
In the past few months, 15 lenders have agreed to implement the Obama plan, according to the Web site MakingHomeAffordable.gov. Government spokespersons have said that about 100,000 homeowners nationwide have been sent offers for trial modifications, a relatively modest number compared with the administration's goal of helping 3 million to 4 million homeowners to avoid foreclosure.
In California, the Department of Corporations will determine whether banks qualify for an exemption from the moratorium. About a dozen mortgage companies had applied as of last week, said department spokesperson Mark Leyes; they will now have a 30-day grace period while their applications are reviewed. A list of the participating banks will be posted on www.corp.ca.gov.
The department will monitor the Banks success rate regularly, to make sure that they have a program in place. Still, there is no guarantee in the law that anyone is going to get a loan workout. The hope is that http://www.callalms.com/loan-modification-news-blog/viewpost/95 will make a good-faith effort to make loans affordable and sustainable for homeowners. It is also the hope that homeowners in turn will be able to keep up with their new mortgage payments without undue financial strain. This in turn, will result in homeowners again feeling comfortable to start spending their money and pouring it back into the economy.
The California law, like the Obama plan, says that can determine whether a foreclosure or a loan workout is more cost-effective and can pick the cheaper option.
You can visit http://www.callalms.com to learn more about the laws and get free tips on how to succeed at your loan modification. If you want to get an immediate responce from an attorney backed loan modification firm based out of california please feel free to use the quick application that can be found at http://www.callalms.com/secure-online-application where you can do a secure online inquiry that will be followed up on within one hour by a professional.
Sunday, June 28, 2009
The Issues In The World Of Loan Modifications Include Needless Foreclosures!!!
Needless foreclosures are happening all around us. It happens every day; mortgage companies are foreclosing on properties even though it costs more to foreclose then to provide a loan workout. In this case, common sense tells any sane person that it is a needless foreclosure. So, be aware that the mortgage servicers these days just don’t have common sense!
For example, it can cost the Investors who held the mortgage about $50,000 to foreclose on a home. It may have cost only $25,000 to make the mortgage affordable to the homeowner by reducing the interest rate. Modifying the loan note would keep the homeowner in their home and save the investor money.
stop needless foreclosure
Mortgage contracts are often modified, at some cost to the banks, to prevent the larger cost of a foreclosure. Loan modifications can include adding the unpaid interest to the loan balance, calculating a new payment to make the payment more affordable, lengthening the term of the loan, or reducing the interest rate. In cases where the property is worth less than the loan balance, the balance may be reduced.
There can be some major impediments to loan modification. Borrower denial is a big one. Developing a new loan contract that a distressed homeowner can live with requires full participation of the homeowner. But many homeowners in trouble don't contact their mortgage companies and may not respond when contacted. It is recommended to take the burden off your shoulder and contact an Attorney based firm to handle your loan modification attorney as all the work is then handled by them and not you.
Some loans are owned by Investors, not the banks. Third-party lenders in which the firm servicing the loan does not own it is quite common. Investors restrict servicers from modifying loan contracts because their interests are different. Investors want modifications only if the alternative is a more costly liquidation or foreclosure. lenders, in contrast, want to protect their servicing fees, which they receive only from loans in good standing. Homeowners just want to be able to afford the monthly payment of their dwellings.
Most lenders unfortunately suffer from, and cause homeowners to suffer through, a lack of proper staffing. Many interactions between homeowners and lenders are handled by relatively unskilled employees. Homeowners in serious trouble are referred to a smaller number of more skilled and specialized staff that are armed with stronger abilities in the attorney loan modification area. With the onset of the mortgage crisis, lenders were caught short of a critical resource. While they now claim to have expanded their staffs to handle the workflow, a financial disincentive to staff adequately remains.
Many of the homeowners in trouble have two mortgages with different lenders, which complicate matters. The lenders looking to modify the first mortgage has to make sure the borrower can afford both mortgages and that the second mortgage lender does not upset the apple cart by foreclosing. As it currently stands it seems some lenders are prepared to work with second-mortgage lenders, and some are not.
Situations like these make it harder on both parties to cut a swath through the path to attorney mortgage modification.
For example, it can cost the Investors who held the mortgage about $50,000 to foreclose on a home. It may have cost only $25,000 to make the mortgage affordable to the homeowner by reducing the interest rate. Modifying the loan note would keep the homeowner in their home and save the investor money.
stop needless foreclosure
Mortgage contracts are often modified, at some cost to the banks, to prevent the larger cost of a foreclosure. Loan modifications can include adding the unpaid interest to the loan balance, calculating a new payment to make the payment more affordable, lengthening the term of the loan, or reducing the interest rate. In cases where the property is worth less than the loan balance, the balance may be reduced.
There can be some major impediments to loan modification. Borrower denial is a big one. Developing a new loan contract that a distressed homeowner can live with requires full participation of the homeowner. But many homeowners in trouble don't contact their mortgage companies and may not respond when contacted. It is recommended to take the burden off your shoulder and contact an Attorney based firm to handle your loan modification attorney as all the work is then handled by them and not you.
Some loans are owned by Investors, not the banks. Third-party lenders in which the firm servicing the loan does not own it is quite common. Investors restrict servicers from modifying loan contracts because their interests are different. Investors want modifications only if the alternative is a more costly liquidation or foreclosure. lenders, in contrast, want to protect their servicing fees, which they receive only from loans in good standing. Homeowners just want to be able to afford the monthly payment of their dwellings.
Most lenders unfortunately suffer from, and cause homeowners to suffer through, a lack of proper staffing. Many interactions between homeowners and lenders are handled by relatively unskilled employees. Homeowners in serious trouble are referred to a smaller number of more skilled and specialized staff that are armed with stronger abilities in the attorney loan modification area. With the onset of the mortgage crisis, lenders were caught short of a critical resource. While they now claim to have expanded their staffs to handle the workflow, a financial disincentive to staff adequately remains.
Many of the homeowners in trouble have two mortgages with different lenders, which complicate matters. The lenders looking to modify the first mortgage has to make sure the borrower can afford both mortgages and that the second mortgage lender does not upset the apple cart by foreclosing. As it currently stands it seems some lenders are prepared to work with second-mortgage lenders, and some are not.
Situations like these make it harder on both parties to cut a swath through the path to attorney mortgage modification.
Sunday, April 26, 2009
Financial Statements For Loan Modifications
One of the leading factors used in applying for a attorney loan modification is a change in your financial situation that makes paying your current mortgage a hardship. The financial statement you provide to your lender during a loan workout request is the single most important document to prove your case.
This is the “make or break” document that for the most part is one of the main documents that the lender bases their decision on.There are many documents that you will have to provide to your lender when you receive your loan mod package. One of the most important will be the financial statement. Often times the lender includes a simple one page financial form in your loan mod paperwork. Pay special attention to this document and complete it with great care because more often than not this will be the first document the lender will review when they are attempting to consider your worthiness for a loan modification!
The financial statement is a complete breakdown of all of your household income is NOT like getting approved for a normal home loan. When you applied for your current loan your lender looked at your last two years income history. They compared this against only the minimum payments for any debt reporting on your credit report to determine if you could afford the mortgage payment. With a loan modification it is quite different. They are going to look at all sources of your household income. For W-2’s employee, last two paychecks for borrowers are fine. One major difference in how a lender evaluates a loan modification versus the original loan is how expenses are treated.
The lender will request a complete picture of your monthly expenses. In the original loan the lender evaluated your minimum payments for accounts reporting on your credit report. With a loan mod, all household expenses are evaluated, such as child support. The list of your expenses is quite detailed. There are no exact guidelines that the lenders have written in qualifying expense ratios. That is why it is important to find a company that has experience in dealing with your particular lender. However, If the homeowner has plenty of income and can afford the current payment, and then a loan modification is not warranted. The lender is not about to tell you how to complete this section and help the homeowner adjust this section to help qualify for a loan mod. It many cases, the homeowner may need to cut expenses or figure out ways to increase income.
The best way to get help in this section is through a loan modification company that is experienced with each lender, and can show a track record of working with that lender. Remember, the lender does not have any written guidelines for this section and thus puts you as the homeowner in a disadvantage with the lender.Contracting the services of a qualified attorney backed loan modification company can help you ensure that you have properly filled out your financial statement so that you have the maximum chance of receiving a loan modification. You can apply for a free loan modification consultation now and we will be happy to review your financial situation with you in detail. http://www.callalms.com
This is the “make or break” document that for the most part is one of the main documents that the lender bases their decision on.There are many documents that you will have to provide to your lender when you receive your loan mod package. One of the most important will be the financial statement. Often times the lender includes a simple one page financial form in your loan mod paperwork. Pay special attention to this document and complete it with great care because more often than not this will be the first document the lender will review when they are attempting to consider your worthiness for a loan modification!
What is the financial statement?
The financial statement is a complete breakdown of all of your household income is NOT like getting approved for a normal home loan. When you applied for your current loan your lender looked at your last two years income history. They compared this against only the minimum payments for any debt reporting on your credit report to determine if you could afford the mortgage payment. With a loan modification it is quite different. They are going to look at all sources of your household income. For W-2’s employee, last two paychecks for borrowers are fine. One major difference in how a lender evaluates a loan modification versus the original loan is how expenses are treated.
The lender will request a complete picture of your monthly expenses. In the original loan the lender evaluated your minimum payments for accounts reporting on your credit report. With a loan mod, all household expenses are evaluated, such as child support. The list of your expenses is quite detailed. There are no exact guidelines that the lenders have written in qualifying expense ratios. That is why it is important to find a company that has experience in dealing with your particular lender. However, If the homeowner has plenty of income and can afford the current payment, and then a loan modification is not warranted. The lender is not about to tell you how to complete this section and help the homeowner adjust this section to help qualify for a loan mod. It many cases, the homeowner may need to cut expenses or figure out ways to increase income.
The best way to get help in this section is through a loan modification company that is experienced with each lender, and can show a track record of working with that lender. Remember, the lender does not have any written guidelines for this section and thus puts you as the homeowner in a disadvantage with the lender.Contracting the services of a qualified attorney backed loan modification company can help you ensure that you have properly filled out your financial statement so that you have the maximum chance of receiving a loan modification. You can apply for a free loan modification consultation now and we will be happy to review your financial situation with you in detail. http://www.callalms.com
Thursday, April 16, 2009
The loan mod process can be cause for much frustration for homeowners that are looking for help. If you are considering contacting your lender about a loan modification to save your home from foreclosure, you need to get as much information upfront as possible so you will be prepared and able to present your case in the best possible light. With the current economic crisis many lenders are gaining additional programs to help modify loans for their clients. To help you understand how the process works, here are the Top 10 Questions and Answers about loan modifications:
1. Can the loan mod include late payments that are due? Per HUD, the accrued late charges should be waived by the lender at the time of the loan modification. Lenders handle this differently, which is why it’s important to know the tactics of each particular servicer
2. What Is A Hardship? Each situation for each homeowner that caused them to fall behind on their home loan is different, but generally the lenders consider divorce to be acceptable reasons to consider a loan workout. It’s critical to include a complete and detailed hardship letter along with your loan modification request.
3. Do the new Government programs make it any easier to get a loan modified? The Federal government has allocated $75 billion dollars to subsidize lenders who offer a loan workout to their clients. The Federal Government is offering incentives to homeowners to modify loans and make payments on time. The short answer is YES
4. Can I get pre-qualified for a loan modification? In order to find out how likely it is that your lender will modify your mortgage it’s important to understand your financial situation. We must look at your income before being able to say with any certainty that we can get your lender to modify your loan. Often people try to make themselves look destitute which is not good because then the lender will assume you cannot afford any payment no matter how low. Also showing too much surplus of income will trigger the lender to think you do not need a loan modification. It’s important to strike a balance between the two
5. What is a loan modification anyway? A loan modification is a change in one or more terms of a borrower's mortgage note in the long term.
6. Is it worth it to pay someone to do the loan modification for me? You can definitely try to get a loan modification as a home owner, however, the success rate and negotiations for the best terms is not as successful as an Attorney negotiating on your behalf. The Attorneys know what can be negotiated and if need can do a site legal violations that force the banks
7. For a modification is it required to be behind on the loan? Most lenders are now doing loan workouts for their clients that are not behind, but who are able to prove to their bank that due to imminent interest rate increases, they will no longer be able to afford the loan payment under the terms of their loan. If you have some other type of hardship it’s important to be starting the process with your lender as early as possible
8. Can I Stop Foreclosure If I get a loan modification? The short answer is YES. The entire point of doing a loan modification is to get a homeowner into a payment that will be sustainable in the long term for their particular situation.
9. What happens to my arrearages? The payments you are currently behind on can be added to the back of the loan to bring you up to a current status.
10. Do I need An Attorney to negotiate better terms. A great example is that if you go to court, would you bring an Attorney, and the answer is yes. Again, the strength in negotiations is by far in the hands of an Attorney. The cost is minimal, less then a refinance and is recouped usually in two to three months.
11. What is the first step to getting a attorney loan modification? Definitely spend time educating yourself. Go to www.ripoff.com to see what Attorneys or Companies have been “black” listed! Do as much research and ask as many questions as possible. Do not feel rushed; if you’re talking to a modification company that is rushing you, it is a red flag. This about finding a Company that really cares about helping you and is in good standing.
You can get the help you need to find out if you qualify for a attorney loan modprogram by using our easy online application form. We will Find out if you meet the approval guidelines and how to increase your chances of getting a loan mod for you. Don’t waste any time since the further you fall behind the more difficult it will become to turn things around. Stay in communication and stay educated about your options!
1. Can the loan mod include late payments that are due? Per HUD, the accrued late charges should be waived by the lender at the time of the loan modification. Lenders handle this differently, which is why it’s important to know the tactics of each particular servicer
2. What Is A Hardship? Each situation for each homeowner that caused them to fall behind on their home loan is different, but generally the lenders consider divorce to be acceptable reasons to consider a loan workout. It’s critical to include a complete and detailed hardship letter along with your loan modification request.
3. Do the new Government programs make it any easier to get a loan modified? The Federal government has allocated $75 billion dollars to subsidize lenders who offer a loan workout to their clients. The Federal Government is offering incentives to homeowners to modify loans and make payments on time. The short answer is YES
4. Can I get pre-qualified for a loan modification? In order to find out how likely it is that your lender will modify your mortgage it’s important to understand your financial situation. We must look at your income before being able to say with any certainty that we can get your lender to modify your loan. Often people try to make themselves look destitute which is not good because then the lender will assume you cannot afford any payment no matter how low. Also showing too much surplus of income will trigger the lender to think you do not need a loan modification. It’s important to strike a balance between the two
5. What is a loan modification anyway? A loan modification is a change in one or more terms of a borrower's mortgage note in the long term.
6. Is it worth it to pay someone to do the loan modification for me? You can definitely try to get a loan modification as a home owner, however, the success rate and negotiations for the best terms is not as successful as an Attorney negotiating on your behalf. The Attorneys know what can be negotiated and if need can do a site legal violations that force the banks
7. For a modification is it required to be behind on the loan? Most lenders are now doing loan workouts for their clients that are not behind, but who are able to prove to their bank that due to imminent interest rate increases, they will no longer be able to afford the loan payment under the terms of their loan. If you have some other type of hardship it’s important to be starting the process with your lender as early as possible
8. Can I Stop Foreclosure If I get a loan modification? The short answer is YES. The entire point of doing a loan modification is to get a homeowner into a payment that will be sustainable in the long term for their particular situation.
9. What happens to my arrearages? The payments you are currently behind on can be added to the back of the loan to bring you up to a current status.
10. Do I need An Attorney to negotiate better terms. A great example is that if you go to court, would you bring an Attorney, and the answer is yes. Again, the strength in negotiations is by far in the hands of an Attorney. The cost is minimal, less then a refinance and is recouped usually in two to three months.
11. What is the first step to getting a attorney loan modification? Definitely spend time educating yourself. Go to www.ripoff.com to see what Attorneys or Companies have been “black” listed! Do as much research and ask as many questions as possible. Do not feel rushed; if you’re talking to a modification company that is rushing you, it is a red flag. This about finding a Company that really cares about helping you and is in good standing.
You can get the help you need to find out if you qualify for a attorney loan modprogram by using our easy online application form. We will Find out if you meet the approval guidelines and how to increase your chances of getting a loan mod for you. Don’t waste any time since the further you fall behind the more difficult it will become to turn things around. Stay in communication and stay educated about your options!
Tuesday, March 17, 2009
Attorney loan modifications
A California loan modification is becoming more and more popular. As a California based Loan Modification Company that is assisting clients in the worst housing market in our country, we have seen first-hand exactly how necessary our services are to our nation, our state, and our community. Many borrowers just don’t know how to properly structure their financial affidavit to their lenders when trying to do a loan modification. There is a fine balance between showing too much debt and showing enough of a financial burden to qualify for a serious loan modification that will significantly lower the monthly payments of your loan.
This is why it is imperative that homeowners who are currently behind on their mortgage payments, or soon will be falling behind on their payments, engage the services of a professional loan modification company that is backed by an experienced real estate attorney who will aggressively fight on their behalf to lower the monthly mortgage payment on their loans.
Lenders have several options when modifying a loan. They can lower the interest rate, reduce the principle balance, extend the terms of the loan, or anything else that will modify the loan in order to make the monthly payment more affordable for the home owner. Our Attorney based loan modification services utilize any and all means to negotiate a lower payment on your behalf.
There is no need for you to have sleepless nights wondering if you have properly packaged and submitted your loan modification request to your lender. Contact a loan modification company that has the professional experience and resources to fight for you to save your home and stop foreclosure today!
For more info please visit http://www.callalms.com and fill out our quick inquiry form for immediate response.
Read the full article here: http://www.callalms.com/loan-modification-news-blog/viewpost/70
This is why it is imperative that homeowners who are currently behind on their mortgage payments, or soon will be falling behind on their payments, engage the services of a professional loan modification company that is backed by an experienced real estate attorney who will aggressively fight on their behalf to lower the monthly mortgage payment on their loans.
Lenders have several options when modifying a loan. They can lower the interest rate, reduce the principle balance, extend the terms of the loan, or anything else that will modify the loan in order to make the monthly payment more affordable for the home owner. Our Attorney based loan modification services utilize any and all means to negotiate a lower payment on your behalf.
There is no need for you to have sleepless nights wondering if you have properly packaged and submitted your loan modification request to your lender. Contact a loan modification company that has the professional experience and resources to fight for you to save your home and stop foreclosure today!
For more info please visit http://www.callalms.com and fill out our quick inquiry form for immediate response.
Read the full article here: http://www.callalms.com/loan-modification-news-blog/viewpost/70
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