Real estate markets are slowing. Interest rates are trickling down and the phones are ringing off the hook at Feldman Law Center. Home owners are in a panic and fear not selling their home and the inability to refinance adjustable rate mortgages will cause default or foreclosure. Their only hope may be to modify their existing mortgage with a Mortgage Loan Modification. Unfortunately, mortgage servicing companies and lenders are overwhelmed with foreclosures and loss of consumer confidence.
The number of people asking for appointments to talk about Loan Modification Advice, Loan Modification Programs and potential legal recourse with their lender or mortgage broker is increasing daily. Most home owners with adjustable-rate loans are in fear of losing their home not to mention their hard earned credit.
Nearly a quarter of the nation's mortgages have rates scheduled to reset this year or next, which means higher payments for millions of homeowners. How many will default isn't known, but the Mortgage Bankers Association, which tracks delinquencies and foreclosures, expects an increase through the end of this year.
If you're in danger of falling behind on your mortgage, or if you're already delinquent, it's important to know what's ahead and what your options are. Usually, the faster you move, the more options you will have. We have saved many borrowers homes that were previously turned down for loan modification help because they were not in foreclosure.
The timeline
30 days: Your troubles actually start as soon as you miss a single payment. Lenders may not contact you until you've skipped a second payment, but most will report the first late payment and every subsequent delinquency to the credit bureaus. Even a single late payment can devastate your credit score, the three-digit number that lenders use to help gauge your creditworthiness. Each subsequent "late" further decreases your score, making it more difficult and expensive to get a loan or a refinance that might help your situation. In addition, lenders typically tack on late fees of 5% or so for each missed payment. These fees can be forgiven with a Loan Modification agreement.
90 days to one year: Eventually, if the payments aren't made, the lender will file a "notice of default" with a local courthouse and send you a letter saying that the foreclosure process will start unless you make good the missing payments. Unfortunately for most the reinstatement of the loan is found to be unaffordable thus complicating and deteriorating the communication between the home owner and mortgagor.
The Solution
A Loan Modification to the existing mortgage allowing the borrower to get back on track is the most sensible solution. Loan Modifications should not be confused with forbearance agreements offered by your lender. A forbearance agreement is typically a short term solution allowing the borrower to reinstate the loan and repay the rearranges. A Loan Modification is a permanent change to the interest rate and terms of the mortgage offering the borrower a loan term solution. Currently we are seeing Loan Modifications negotiated below current market interest rates. When applying for a Loan Modification with your lender it’s a good idea to hire a loan modification attorney to get the best results.
Lenders Loan Modification Agreement will always advise you to consult a attorney prior to signing as the loan terms may be permanently changed.
Warning Loan Modification Scam
Loan Modification Companies are soliciting troubled home owners making guarantees and boasting high success rates. These Loan Modification or Loss Mitigation companies are doing nothing more than getting an unaffordable short term forbearance agreements. They cannot help you and should not take your money if you are in foreclosure. They cannot help you if you are not behind in mortgage payments. If you are in fear of falling behind on your mortgage payment or facing foreclosure, Loan modification help with a licensed attorney is your best option. A Law Office that specializes in lender negotiations will certainly get the best results. A licensed attorney can use any leverage available to negotiate with your lender and get a Loan Modification that will save your home. The Feldman Law Center has earned the reputation as a reliable Law Office that gets the job done. Some Loan Modification and Stop Foreclosure Companies are running scams on home owners facing foreclosure. Please contact your states regulatory agency for details on the Loan Modification process with a Loan Modification Company.
The Feldman Law Center is owned and operated by Steven C. Feldman, attorney at law. Mr. Feldman has been a member of the California State Bar since 1983 and is well versed in federal loan modification law. To find out more information about the loan modification process visit http://www.feldmanlawcenter.com/
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