Tuesday, December 28, 2010
Key is to find a qualified Loan Modification Attorney Like Kramer & Kaslow
Loan Modifications can be done quickly if you have an experienced loan modification attorney. Click here to contact The Law Offices of Kramer and Kaslow for help with your home.
During these trying times when mortgages, real estate prices and other financial arrangements are completely unstable, many homeowners are asking how they can qualify for a loan modification. Both the FDIC and the federal treasury are strongly supporting loan modifications as a way to keep people in their homes. Lenders don’t want to take back anyone’s home, homeowners obviously want to stay in their homes and the federal government wants what the people and lenders want.
Many people who are trying to keep their homes are asking questions such as: who qualifies for a loan modification? Homeowners throughout California who are trying to stay in their homes are interested in the loan modification process and want to learn more about California loan modifications.
Below are some basic tips on how to recognize whether or not you are eligible for a California loan modification (or loan modification in another state).
Borrowers (those with a mortgage) struggling to stay current on their mortgage payments may be eligible for a loan modification if their income is not sufficient to continue to make their mortgage payments and they are at risk of imminent default. California homeowners may be eligible for a loan modification even if they are not currently behind on payments. Several factors may cause this scenario: loss of income; significant increase in expenses; or an interest rate that will resent to an unaffordable level.
Here are three ways to know if you qualify for a California or federal loan modification:
1).You occupy your house as your primary residence
2).Your monthly mortgage payment is greater than 31% of your monthly gross income
3).Your loan (mortgate) is not large enough to exceed current Fannie Mae and Freddie Mac limits
Loan Modification
A Loan Modification is a permanent change in one or more of the terms of a mortgagor’s loan, allows the loan to be reinstated, and results in a payment the mortgagor can afford. You may be seeking a California or federal loan modification if you are having trouble paying your mortgage. The key is to find a qualified loan modification attorney who understands loan modification law. Click here to contact The Law Offices of Kramer and Kaslow.
Loan modification attorneys will tell you that there are only three possible outcomes when a homeowner cannot make the payments on their mortgage:
1.The property goes back to the lender through a foreclosure or a “deed-in-lieu” and the property goes back out on the market.
2.The homeowner sells the home in a conventional sale or a “short sale” and the home goes back onto the market.
3.The lender (bank or mortgage company) modifies the loan so that the homeowner can make the payments and the home does not go back onto the market.
The loan modification option is the best solution, by far, for the lender, homeowner and country in almost all situations. The loan modification process does not require any appraisals, credit reports or title reports because a loan modification is simply a renegotiation of the terms of an existing note. A loan modification can consist of a reduction in the interest rate, a change from a fully amortized to interest only payments for a period of time, an extension of the loan term, a reduction of the principal balance of the loan and/or a resolution of any arrearages.
Loan Modifications are the best overall solution for the following reasons:
1. Families are kept in their homes through the loan modification process
2. Loan modifications ease the financial pressure that causes stress in families
3. Loan Modifications have the least cost solution to the lenders, which is why many lenders are willing to do them
4. Loan modifications keep the house off of the market and therefore each loan modification represents a step closer to the solution to the current economic crisis.
5. Loan modifications are a market solution, meaning they aren’t taking taxpayer dollars.
6. Loan Modifications can be done quickly if you have an experienced loan modification attorney.
Monday, December 27, 2010
Best California Loan Modification Programs
Get the right legal representation. Click here to contact The Law Offices of Kramer and Kaslow for help with your home.
Do you live in California? Are you looking for mortgage loan modification information in California?
Mortgage modification can be a helpful technique. However the personal loan modification requirements to make sense for both the lender and also the home owner. Are you seeking for Loan Modification - California?
Lenders usually lack the incentive to grant lengthy term loan modifications to homeowners who:
*Have no hardship -- Personal loan modification is granted to solve a issue. If there's not a issue the loan modification will solve, then why go via the mortgage modification method!
*Have unresolved or irresolvable hardships -- If the hardship is not resolved or resolvable in the extremely close future, then it will possibly look like the house owner can't pay for the house, and a mortgage modification won't be granted.
*Can't pay for the residence -- If the homeowner aren't able to afford the home, loan modifications are unlikely to solve the homeowners' difficulty.
However, despite the lack of affordability issue, lenders are possible to grant a "temporary" personal loan modification in this case while other options are pursued.
*Don't need outside help -- If the home owner is feasible to make the monthly payments without the lender's financial assistance with a loan modification, then why ought to the lender incur any losses if they do not need to?
Mortgage modifications are more possible to be granted exactly where a hardship existed that's now resolved. By approving personal loan modifications, lenders believe they're helping property owner get back on their feet financially so they can resume regular normal monthly payments.
A word of caution -- it has been proven that lenders will supply a temporary mortgage modification even when they know the house owners aren't able to afford the home. The intent is to get the payments, and they don't generally care what the sources of funds are, or if it produces other hardships for the property owners. Loan providers wish to maximize their revenues, but in the end, are not involved if this depletes the homeowners' savings and creates other budgetary imbalances for the homeowners.
For assist in obtaining a loan modification in California, you need to go to the following website. They can help you get your loan modification approved quick, with no upfront fees.
A good loan modification will lower your monthly payments to 31% of your monthly income or less, allowing you to make your payments easily each month. This is well worth the small cost of having someone who knows what they are doing represent you in your loan modification negotiations.
Thursday, December 23, 2010
How to screw up a mortgage modification
Don't let your mortgage modification be screwed up. Click here to contact The Law Offices of Kramer and Kaslow for help with your home and the proper legal representation.
I have no idea the story behind this mortgage modification, but it doesn’t matter why it was needed. What matters is that the consumer appears to have done everything right. She did all the paperwork, paid exactly as she was told to, kept making phone calls to ensure that everything was in order… and then one day Bank of America says they’re foreclosing because she’s supposedly behind.
Assuming this woman is telling the truth, she did exactly what she was supposed to. Bank of America’s systems failed, and she is now paying the price. Her credit is ruined. There is a credible threat of foreclosure. And all because Bank of America screwed up and will not take responsibility.
I know that mistakes happen. But Bank of America needs to step up, admit their mistake, and make this right. The consumer should not have to guess whether the BOA person on the phone is telling the truth or lying. The consumer should not have to figure out if the BOA person is just plain wrong. What is the consumer supposed to do if she keeps getting a different story every time she calls?
This woman had an approved mortgage modification. She paid the new payment. Heck, she even paid more each month. Bank of America failed to complete the process on their end, and it appears the consumer had zero blame in that. She got her paperwork in on time. She kept calling to make sure everything was okay. And she was told that it was. Bank of America screwed up and the consumer is being penalized because of it.
Wednesday, December 22, 2010
Will Modifying Second Mortgage Help Prevent Foreclosure?
Click here to contact The Law Offices of Kramer and Kaslow for help with your home.
Some homeowners who have gained assistance from the Making Home Affordable modification program often have found that they are still in a situation where meeting their monthly mortgage payment is difficult due to various costs. There have been homeowners who stated that meeting monthly payments within a modification plan are still too expensive, and this has usually been traced to the fact that a second mortgage may be present on their home loan.
Yet, the Second Lien Modification Program was set in place as a way to address this issue which many homeowners are facing. Under the guidelines set forth by the Making Home Affordable Program, homeowners who have their first lien modified through the modification program will be offered, by their servicer, the opportunity to modify their second lien. Obviously, homeowners who are suffering from payments related to their second mortgage will benefit from this option similarly to a primary home loan modification, which when used together, can lower the overall home loan costs which a homeowner must meet month-to-month.
Also, homeowners who qualify for the Second Lien Modification Program may qualify for a principal reduction of up to $1,250, which equates to $250 per year for five years. These outlines, which again are set forth by the Making Home Affordable Program, are used by many of the major mortgage servicers who are working with homeowners to provide foreclosure prevention assistance during these difficult economic times which homeowners are facing, so finding a servicer who participates in the Second Modification Program has not been difficult for homeowners, as countless financial institutions are participating in the federal modification plan as well.
However, programs like the Second Lien Modification initiative are not guaranteed to prevent foreclosure for homeowners who are suffering from factors like unemployment or other financial troubles. While many of these foreclosure prevention efforts do offer lower monthly payments on home loans, there are still homeowners who are defaulting and facing foreclosure as a result. Yet, homeowners are still being encouraged to contact their mortgage servicer or consult resources like the Making Home Affordable website as a way to gain information about modification opportunities or simply begin the process of a home loan modification with their primary mortgage servicer.
Monday, December 20, 2010
How Not To Get Scammed When Doing A Mortgage Modification
First get good legal representation! Click here to contact The Law Offices of Kramer and Kaslow for help with your home.
Mortgage modification was devised to offer householders an option apart from submitting for foreclosure. A mortgage modification signifies you generate a encounter your lender to completely change the phrases of your mortgage. Oftentimes, this indicates reducing the interest rate. To offset the damage of the loan provider from curiosity payments, the period of the mortgage mortgage is oftentimes greater when carrying out home loan modification.
Naturally, the con men have additionally discovered the foreclosures boom and greater need for home loan modification. The disadvantages typically involve a producer offering you all kinds of guarantees in trade for an upfront cost for their ‘services’. You can possess to discover how to steer clear of these drawbacks.
Usually, when you apply for loan modification, you’re seeking for fast results. If you get a full money back guarantee, you can be almost 100% certain it’s a swindle. Simply because the loan modification is not in cost of the decision, they can’t full money back guarantee everything regarding the results.
It typically requires at the very least a month or two just before the financial institution also seems at a mortgage loan modification application. Most mortgage modification organizations can promise you everything, because they don’t care if they can make it function or not. They are only serious in the upfront fee, so they’ll concur to any conditions.
When you would want to get a mortgage modification, be certain to do business with a reputable law firm or business. Don’t rush into signing with a company that doesn’t feel completely right. There are con men around all over the place and you need to be careful.
Thursday, December 16, 2010
Mortgage modification spark lawsuits; Have Kramer Kaslow represent you loans re http://ping.fm/pKblC
Mortgage modification snags spark lawsuits; Have Kramer Kaslow represent you
When lawsuits are involved...better have a lawyer! Click here to contact The Law Offices of Kramer and Kaslow for help with your home.
By Stephanie Armour, USA TODAY
Anthony and April Soper's financial troubles were only starting last October when they applied for a mortgage adjustment through the Obama administration's Home Affordable Modification Program.
Bank of America, their mortgage servicer, put them on a HAMP trial payment plan in December that cut their monthly payments from about $4,000 a month to about $3,130 a month.
They say they made their reduced monthly payments early and did everything else that was asked of them. But they didn't get a permanent modification, and they say they don't know why.
Instead, according to a lawsuit they've brought against Bank of America, they are now more than $8,000 behind on a mortgage that had been current 12 months ago. Each of their credit scores has dropped by nearly 100 points. And, they allege, Bank of America has threatened them with foreclosure.
"We jumped through all their hoops, and they did nothing but cause us heartache," says April, 41.
Whether the Lake Stevens, Wash., couple keep their home may hinge on the outcome of a legal strategy that aims to join struggling homeowners with similar experiences in the HAMP program in a class-action lawsuit against the nation's largest bank. On Sept. 30 in Nashville, a federal court hearing is scheduled to consider consolidating the Sopers' case with more than a dozen others against Bank of America.
Similar lawsuits, also seeking class-action status, are pending against other major servicers such as JPMorgan Chase and Wells Fargo. Taken together, the cases threaten to amplify a growing public frustration with mortgage servicers' treatment of HAMP borrowers and HAMP's modest results. Permanent modifications, which lower mortgage payments to 31% of a borrower's pretax monthly income for five years, have been given to only about a third of the 1.3 million borrowers in trial plans since the program's launch in April 2009.
Most of the lawsuits allege that the three- or four-month trial payment plans are contracts, and that Bank of America and other servicers broke them by not giving permanent modifications to homeowners who made their trial payments on time and provided the necessary documentation.
Servicers have asked courts to dismiss some of the cases, saying the trial plans are not contracts. Bank of America, which says it plans to seek dismissal of the Soper case, argues in a court filing in a similar case that it must consider borrowers for a HAMP modification, but that it has discretion in granting permanent modifications.
The bank also argues that homeowners have no case because courts have dismissed earlier HAMP-related lawsuits against mortgage servicers. Those cases claimed that in denying some homeowners modifications, the servicers had breached the contracts they made with the Treasury Department when they agreed to participate in HAMP. Courts said homeowners could not sue on those grounds because they weren't parties to the contracts between the government and the servicers.
Lawyers for homeowners say they are now making a different legal argument: that Bank of America and others broke contracts made directly with homeowners.
"Borrowers have said we should be able to enforce the contract between Treasury and mortgage servicers, and many courts have rejected that. Our cases are the first filed that touch on a contract between servicers and borrowers," says Kevin Costello, a lawyer with Roddy Klein & Ryan in Boston, which represents homeowners in cases against Bank of America, JPMorgan Chase and Wells Fargo.
"This litigation is spreading all across the country. People have been relying on a promise all along, and then they get a denial. Then they find themselves in that much worse of a hole," he says.
Many homeowners could be affected: Nearly 620,000 trial modifications since spring 2009 have been canceled, according to an Aug. 20 Treasury report.
Chronicles of delays
The lawsuits allege servicers are purposely denying permanent modifications and keeping loans in default so lenders can profit from heftier late fees and other charges. Court filings provide detailed chronologies of borrowers who allege that over periods of months, they repeatedly sent banks requested documents that the banks said they didn't receive, made inquiries that went unanswered, and received promises of help that were later contradicted or denied by other representatives.
"Bank of America has serially strung out, delayed, and otherwise hindered the modification processes that it contractually undertook to facilitate when it accepted" billions of dollars in government bailout funds in 2008, the Sopers' complaint alleges.
By failing to live up to its obligations, according to the court filing, "Bank of America has left thousands of borrowers in a state of limbo — often worse off than they were before they sought a modification from Bank of America."
The Sopers' complaint alleges that Bank of America customer service representatives are instructed to mislead homeowners who call to inquire about loan modifications they've applied for. The complaint, citing information provided by unnamed former employees, says "representatives regularly inform homeowners that modification documents were not received on time or not received at all when, in fact, all documents have been received."
When homeowners are denied permanent modifications, even those who were current before going on reduced-payment trials are considered in default, and servicers tell them they must immediately pay the difference between their trial payments and their higher former payments to avoid foreclosure, according to the Sopers' complaint and others.
Borrowers' mortgage debt in default rises further the longer they stay in trial plans.
By making trial payments during and after the plan's scheduled end, the Sopers' complaint alleges, they "forgo other remedies that might be pursued to save their homes" such as restructuring their debt by filing for bankruptcy, or pursuing other ways to deal with their default, such as selling their homes.
Foreclosure proceedings have started against some borrowers while they were on trial plans, violating a Treasury directive, according to the lawsuits. Homeowners' credit scores have also been damaged when servicers cancel trial plans, then report the amounts in default to credit bureaus.
Some court filings claim bank employees have demanded upfront fees to start consideration of a modification — in violation of HAMP rules — or told homeowners to stop paying mortgages in order to start a trial modification. The Sopers' complaint alleges an unnamed homeowner was illegally asked to pay $1,400 upfront to Bank of America to be considered for a modification.
In another case, Alex Lam of New York alleges he was told he could only be considered for a HAMP trial modification if he stopped paying his mortgage for several months, according to a lawsuit filed in U.S. District Court in Brooklyn against JPMorgan. He skipped two months of payments in 2009 and says he was denied a permanent modification. JPMorgan declined to comment.
Homeowners' lawyers say there is no effective way to appeal mortgage servicers' decisions because Treasury has no ability to overturn a decision.
Watchdogs' criticisms
Government watchdogs, too, have raised similar criticisms about the HAMP program, as well as about servicers' performance and Treasury's oversight.
The Congressional Oversight Panel, which oversees the government fund that pays for HAMP, said in an April report it "is deeply concerned about the unacceptable quality of the denial and cancellation reasons, and strongly urges Treasury to take swift action."
A Government Accountability Office report in June found servicers were erroneously denying permanent modifications to some homeowners because servicers were inaccurately applying a formula used to determine if the value of modifying the mortgage was greater than the proceeds from foreclosing. The number of homeowners who had been wrongly denied could "range from a handful to thousands."
When errors have been found, Treasury says, it has made servicers go back and fix problems, and re-do their work as a check on their decision-making. It also says that 45% of those who started trials but were ineligible for permanent adjustments received an alternative modification through their servicer. Fewer than 2% have gone to foreclosure sale, according to Treasury.
Some homeowners say they've already lost their homes to foreclosure because a permanent HAMP modification was denied to them.
Jennifer Voltaire, 33, of Medford, Mass., alleges Wells Fargo approved her for a trial HAMP modification, which lowered her payments starting in December 2009, according to court filings in U.S. District Court inMassachusetts. Voltaire is a co-plaintiff in the case.
But after making regular payments, Voltaire was told in May that she was being taken out of the HAMP program and was $40,000 in default, the lawsuit alleges. After she protested, Wells Fargo agreed to reconsider her for a HAMP modification, according to the complaint, but in July, the bank took possession of the home.
"I was literally crying my eyes out," Voltaire says. "I put everything I have into this house, into getting my kids out of the projects. That's the part that really hurts. My kids could look at me like I failed."
Wells Fargo agreed not to sell her house pending further court action. Voltaire is still staying there and making her trial plan payments.
In its motion to dismiss the lawsuit brought by Voltaire and others, Wells Fargo said the plaintiffs have not adequately shown that their trial modifications were contracts to enter into permanent modifications. It says homeowners benefited from being able to make reduced monthly payments while staying in their homes.
Treasury Department officials say homeowners in HAMP trial plans are not promised permanent modifications.
But the Soper lawsuit and others quote language from some trial plan agreements that states: "If I am in compliance with this trial period plan and my representations ... continue to be true in all material respects, then the servicer will provide me with a Home Affordable Modification Agreement ... that would amend and supplement the mortgage on the property, and the note secured by the mortgage."
"They get a letter from the bank that says, 'If I comply, I'm entitled to a HAMP modification.' That's a contract. The bank has not performed under the contract," says Steve Berman, a lawyer with Hagens Berman Sobol and Shapiro in Seattle, who represents the Sopers and other homeowners in HAMP cases.
Evolving rules
The Obama administration's rapid launch of HAMP and its changing guidelines since then may have contributed to the program's administrative confusion. When HAMP began in 2009, servicers enrolled borrowers in trial modifications without verifying income or financial hardship. That brought immediate financial relief to more people, but ineligible homeowners were not weeded out until they completed trial plans. In June, the government began requiring participating servicers to verify applicants' income and financial hardship before starting trials. Treasury says that has improved the rate of conversions to permanent modifications.
"The HAMP program was an unprecedented response to an enormous crisis in this country's housing market. The administration needed to act quickly." says Phyllis Caldwell, Treasury's chief of the homeownership preservation office.
Meanwhile, the number of homeowners claiming improper denials of HAMP modifications is climbing.
One is Peter Salinas, 52, who struggled to pay his mortgage after the economy collapsed and his wife developed cancer. He appealed to his lender for help.
Salinas says he felt elated last year when he received a HAMP trial modification slashing $500 off his monthly payments. But later, he was told he made too much money to qualify for permanently reduced payments, he says. Wells Fargo threatened foreclosure if he didn't pay $9,000, the difference between his original mortgage and what he paid during the trial.
His servicer, Wells Fargo, declined to comment on his situation. Salinas is working with Gulfcoast Legal Services, a not-for-profit civil legal aid office, that says it is preparing a lawsuit against the lender.
"I was convinced I was doing everything right," says Salinas, a reporter for an automotive trade publication who lives near Bradenton, Fla. "I wasn't trying to walk away from this mortgage. It's just infuriating."
Kramer Kaslow: What is a Loan Modification and Who Qualifies for One? re mortgage loans http://ping.fm/Fi3Yx
What is a Loan Modification and Who Qualifies for One?
Click here to contact The Law Offices of Kramer and Kaslow for help with your home.
What is a loan modification?
Whether you call it a loan modification, mortgage modification, restructuring, or workout plan, it’s when a borrower — who is facing great financial hardship and is having difficulty making their mortgage payments — works with their lender to change the terms of their mortgage loan. The workout plan could result in temporary or permanent changes to the mortgage rate, term and monthly payment of the loan. The plan’s goal is to help the borrower reduce their monthly mortgage payments to 31% of their gross income. Under Obama’s plan, loan modifications will be standardized, with uniform loan modification guidelines used by Fannie and Freddie Mac, and then they will be implemented throughout the entire mortgage industry.
Who is eligible for a loan modification?
According to the Department of Treasury: “Anyone with high combined mortgage debt compared to income or who is “underwater” (with a combined mortgage balance higher than the current market value of his house) may be eligible for a loan modification. This initiative will also include borrowers who show other indications of being at risk of default. Eligibility for the program will sunset at the end of three years.”
As reported in the LA Times, “This program applies to borrowers who are unable to make — or are struggling to make — mortgage payments that exceed 38% of their monthly income. If the lender agrees to lower the interest rate or reduce the principal amount to bring the payment to 38% of the borrower’s income, the government will pay half of the additional cost to the lender to reduce the payment to 31% of the borrower’s income.”
Who’s not eligible for a loan modification? Speculators — or those who bought homes for investment purposes. All homes must be owner/occupied. Also, mortgages with amounts above the conforming loan limits would not be eligible.
How does someone get a loan modification?
The details of the plan will not be released until March 4, but, in the meantime, call your lender — the company where you got your loan — and ask for the loss mitigation department. Honestly state your situation. They will assess it via phone calls and paperwork and determine whether you qualify for a modification and might tell you to wait until March 4, when details are revealed. Keep copious, detailed notes on who you speak with and details of the conversations so you have documentation down the road if you are faced with foreclosure.
Also depending on the direness of your financial difficulties, it’s always good to hire legal counsel. Get a referral from your local state bar association. Or, call a local HUD-Approved Housing Counseling Agency for guidance.
One word of warning: This new bill has spawned a whole new wave of loan modification salespeople who might be perfectly fine and those who are not. Be careful.
Why would lenders modify your loan?
Incentives. According to USA Today, the plan also includes incentives to encourage mortgage servicers — who collect fees for refinanced and delinquent mortgages — to work with qualified borrowers to modify loans. Servicers will get $1,000 for each eligible modification they make, and another $1,000 a year for three years as long as the homeowner remains current on payments. Homeowners who stay in their properties and are current will get a monthly balance reduction to help reduce their loan principal. That will amount to up to $1,000 a year for five years.
Also, banks would rather have you stay in your home — even if they’re not making the full amount they signed up for — rather than have the house go to foreclosure. They stand to lose more if you foreclosure than if your loan is modified.
Click here to read more.
Click here to read more.
Wednesday, December 15, 2010
Alternate Mortgage Modification with Kramer and Kaslow
Click here to contact The Law Offices of Kramer and Kaslow for help with your home.
The government loan modification program is intended to help keep homeowners in their home. The main goal of mortgage home loan modification is to makes mortgage payments more affordable and fit into your current budget.
A Mortgage Modification is something that supports the banks and the struggling homeowner at the same time. Banks don’t want to have properties on their book at the end of the year. So, it will be beneficial for you to get into a really good for you to understand the home loan modification.
The Obama Home Loan Modification aims at helping those struggling homeowners who are finding it difficult to pay the loan back to the traditional lenders and banks. If you are seriously interested in modifying your home loan then Obama loan Modification will be the best of all. You should hurry after reading this blog because the administration is trying to keep their rules and policies extremely simple and comfortable. Obama Administration has plans to support all the struggling home owners by the end of his tenure. “Obama administration has committed on helping those who are undergoing financial distress.
All of us have heard much about mortgage modification industry lately and most of it is negative and less positive sides. If you are looking for a mortgage modification then I would suggest you to read this article. You may also want to know about the HAMP- Home Affordability Modification Plan by Obama Administration.
Mortgages form the financial underpinnings of the nation’s housing market and have allowed more than two-thirds of households to own their own homes.
The US government has allotted $75 million to all those are afraid of possible foreclosures.” The main Goal of the Obama Administration is to promote a mutual progress and stability to both the home owners and the housing market. To achieve their target they have come with an amazing idea of providing incentives to the agencies that would help the home owners to modify their loans and provide tax credit to the home buyers.
The banks and the traditional home loan lenders are playing smart when it comes to home loan modifications. They only give alternative modification plans to homeowners who may either be rejected from the mortgage assistance plan from the Making Home Affordable Program or who may default even when a modification program is in place. Be advised that the modification will only decrease the interest rate and help you in your financially stressful times. Your over all mortgage loan amounts will not be affected drastically, you still owe the amount that you borrowed from the company.
Modification is only for the ones who are honest homeowners and not for those who just want rip off the lenders. Honesty is the best policy on both the sides. If you want lenders to be honest with you, you will have to be honest yourself!
The whole process is very complicated, but lenders are getting used to it. It will be advisable to you to get any kind of loan negotiator. Online lenders would work for in this case. If your loan modification is complicated chances are the lenders will help you to get through with it. Making home affordable program is the best government intervention in the Real Estate Market! Don’t be late for applying to get the most affordable mortgage rate. The goal of loan modification program is to alter the input parts of your loan including lowering the interest rates, the monthly mortgage payment, years, and penalties and accumulate interest in a way that the mortgage can be remunerated from your available income.
Tuesday, December 14, 2010
What Every Homeowner Needs To Know To Survive When Facing Foreclosure
Click here to contact The Law Offices of Kramer and Kaslow for help with your home.
How to Avoid Foreclosure -What Are Your Options?
FORECLOSURE!
It’s a harsh word that most people avoid thinking about…until they have to. If you are several months behind on your mortgage, without money for professional help, and at the end of your rope…foreclosure may be the ONLY thing you can think about.
It’s a harsh word that most people avoid thinking about…until they have to. If you are several months behind on your mortgage, without money for professional help, and at the end of your rope…foreclosure may be the ONLY thing you can think about.
You may be in a difficult situation, but it is not hopeless. Foreclosure is not your only option! I’ve got good news for you. You do have alternatives. You just can’t see them right now. But by the time you finish this short guide, your vision will have cleared and options for your future…good options…will be right before your eyes.
You are not alone! In the United States, foreclosure filings have increased consistently over the past few years, with more new foreclosures reported in every quarter, pushing the foreclosure market to record levels. So you are not alone. But if you’re like the many thousands of people facing foreclosure, you’re scared and confused. You’re overwhelmed by the legal mumbo-jumbo of foreclosure litigation. You don’t know who or what to trust. Or maybe you’ve worked with mortgage brokers. They promise the world – or world-class loans – and then they don’t deliver. And then there’s the holder of your mortgage who is unwilling (maybe after months of negotiating) to budge an inch when it comes to working out a more affordable payment plan.
After all you’ve probably been through, I’m not surprised that you’ve given up hope for a ‘good’ solution and may feel resigned to accepting foreclosure and the years of damage it will do to your credit rating. Once again, STOP! Don’t fall into despair. Things are not as bad as they seem. There are other options.
A helping hand when you need it. Contact Kramer and Kaslow.
This Survival Guide is exactly what the name says it is: a simple, no-nonsense approach to foreclosures. It was created to help you and other homeowners become better informed about the details of the foreclosure process. I believe that knowledge is power…and I hope that this guide will give you the power to avoid foreclosure entirely.
This Survival Guide is exactly what the name says it is: a simple, no-nonsense approach to foreclosures. It was created to help you and other homeowners become better informed about the details of the foreclosure process. I believe that knowledge is power…and I hope that this guide will give you the power to avoid foreclosure entirely.
Once you know the facts, you’ll be able to make a well-reasoned and thoughtful decision and then take action with the confidence that you’re doing what’s best for you.
On the next couple of pages, we are going to take a look at your different options and the pros and cons of each. You will be given the information you need to make a well-educated decision regarding your situation.
What Are Your Options?
Forbearance
Forbearance is a payment plan that a debtor enters into with a lender when they are unable to make timely payments, often due to illness or another temporary situation. In forbearance, the lender will allow you to delay payments for a short period. You agree that after missing payments for a few months you will bring the account current by making larger payments. The problem is, more than 85% of debtors default after the first payment. They cannot continue to make the inflated payments after the forbearance period ends, and they are right back where they started.
Forbearance is a payment plan that a debtor enters into with a lender when they are unable to make timely payments, often due to illness or another temporary situation. In forbearance, the lender will allow you to delay payments for a short period. You agree that after missing payments for a few months you will bring the account current by making larger payments. The problem is, more than 85% of debtors default after the first payment. They cannot continue to make the inflated payments after the forbearance period ends, and they are right back where they started.
Loan Modification
A loan modification is a permanent change in one or more of the terms of a mortgagor’s loan. This may help you catch up by reducing the monthly payments to a more affordable level. You may qualify if you have recovered from a financial problem and can afford the new payment amount. However, Loss Mitigation Departments are now undermanned, under experienced, and overworked. Nightmare stories abound on the subject of patrons having to hound and harass Loss Mitigation Departments to get their paperwork pushed through to escape foreclosure. After all the hassle, most homeowners are still denied any help and end up in foreclosure.
A loan modification is a permanent change in one or more of the terms of a mortgagor’s loan. This may help you catch up by reducing the monthly payments to a more affordable level. You may qualify if you have recovered from a financial problem and can afford the new payment amount. However, Loss Mitigation Departments are now undermanned, under experienced, and overworked. Nightmare stories abound on the subject of patrons having to hound and harass Loss Mitigation Departments to get their paperwork pushed through to escape foreclosure. After all the hassle, most homeowners are still denied any help and end up in foreclosure.
Partial Claim
Your lender may be able to work with you to obtain a one-time payment (loan to be paid at end of mortgage) from the FHA-Insurance fund to bring your mortgage current. You may qualify if your loan is 4-12 months delinquent and you are able to start making full mortgage payments.
Your lender may be able to work with you to obtain a one-time payment (loan to be paid at end of mortgage) from the FHA-Insurance fund to bring your mortgage current. You may qualify if your loan is 4-12 months delinquent and you are able to start making full mortgage payments.
Deed-In-Lieu (Voluntary Foreclosure)
As a last resort, you may be able to voluntarily “give back” your property to the lender. You may qualify if you are in default and don’t qualify for any of the other options, your attempts at selling the house before foreclosure were unsuccessful, and you don’t have another FHA mortgage in default. “Foreclosure” will most likely be reported on your credit report.
As a last resort, you may be able to voluntarily “give back” your property to the lender. You may qualify if you are in default and don’t qualify for any of the other options, your attempts at selling the house before foreclosure were unsuccessful, and you don’t have another FHA mortgage in default. “Foreclosure” will most likely be reported on your credit report.
Loan Assumption
This is where someone else takes over the payments of your loan, usually in exchange for your property. Loans made after 1988 are almost never assumable.
This is where someone else takes over the payments of your loan, usually in exchange for your property. Loans made after 1988 are almost never assumable.
Bankruptcy
Many debtors will spend a lot of money for an attorney to file a Chapter 13 bankruptcy – which is really a payment plan – only to lose the house. In essence you are paying the attorney instead of the lender. Before acting, know how much the process will cost and what your new increased monthly payment will be. Also know that if you miss one payment, your Chapter 13 will be dismissed and you will need to file Chapter 7. This will cost more attorney fees, assets, including your house will be liquidated and your credit report will still show a foreclosure.
Many debtors will spend a lot of money for an attorney to file a Chapter 13 bankruptcy – which is really a payment plan – only to lose the house. In essence you are paying the attorney instead of the lender. Before acting, know how much the process will cost and what your new increased monthly payment will be. Also know that if you miss one payment, your Chapter 13 will be dismissed and you will need to file Chapter 7. This will cost more attorney fees, assets, including your house will be liquidated and your credit report will still show a foreclosure.
Sale of Property
If the homeowner has equity in the property they can and should consider selling the property. The homeowner will receive a check at closing for equity over and above what is owed and closing costs paid. Most homeowners in foreclosure, however, have little or no equity. Be careful listing with a Realtor that can tie up your property for months.
If the homeowner has equity in the property they can and should consider selling the property. The homeowner will receive a check at closing for equity over and above what is owed and closing costs paid. Most homeowners in foreclosure, however, have little or no equity. Be careful listing with a Realtor that can tie up your property for months.
Do Nothing
When it comes to the threat of foreclosure, procrastination is a prescription for disaster. Doing nothing changes nothing. Unless you take action, you will end up in foreclosure and your credit will suffer for the next 5-7 years.
When it comes to the threat of foreclosure, procrastination is a prescription for disaster. Doing nothing changes nothing. Unless you take action, you will end up in foreclosure and your credit will suffer for the next 5-7 years.
Pre-Foreclosure Sale (Short Sale)
The pre-foreclosure sale program allows the lender in default to sell his/her home and use the net sale proceeds to satisfy the mortgage debt, even though these proceeds are less than the amount owed. It has two major advantages over a foreclosure: (1) You may be eligible for a new home loan after just 2 years instead of 5. (2) You should be able to avoid a deficiency judgment. When a house is sold at auction, the chances of the foreclosing lender filing a deficiency judgment increases dramatically. They will have years to come after you or to sell it to someone else who will.
The pre-foreclosure sale program allows the lender in default to sell his/her home and use the net sale proceeds to satisfy the mortgage debt, even though these proceeds are less than the amount owed. It has two major advantages over a foreclosure: (1) You may be eligible for a new home loan after just 2 years instead of 5. (2) You should be able to avoid a deficiency judgment. When a house is sold at auction, the chances of the foreclosing lender filing a deficiency judgment increases dramatically. They will have years to come after you or to sell it to someone else who will.
As you can see, there are several options to consider – but consider you must! You cannot afford to stick your head in the sand like an ostrich and do nothing. Being in the state of denial is a bad state to be in! And as we said earlier, procrastination is a prescription for disaster.
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