The current economic crisis has had far-reaching effects. Small businesses are closing or being absorbed into larger ones, unemployment is extremely high, and jobs are still being cut. Even financial institutions have not been immune to the changes in all areas of the economy.
One area that has certainly received a great deal of publicity during all this is the mortgage industry. Currently, it is a buyer’s market, with a plethora of homes being offered for sale, either through real estate companies, by the owners, or through auctions or other venues.
One reason for this situation is the fact that home foreclosures have increased in tremendous proportions. This, of course, is due to the “ripple effect” that is being felt as a result of the overall economic situation.
Any change in employment, whether it is a job loss or a salary reduction, affects income. No or reduced income makes it extremely difficult, if not impossible to keep up with mortgage payments. If too many mortgage payments are missed, then foreclosure proceedings can and will become a very real possibility.
There are options, however, for homeowners who may be faced with problems meeting their mortgages. Some, such as bankruptcy, are very extreme, and the impact will continue to be felt long after the overall economic picture changes. (And, eventually, it will change. When, for how long, and in what manner remains to be seen.)
Other options may provide a short-term solution; however, because it is unknown when conditions will change, a “quick-fix” may not turn out to be as successful as thought. Because of this, it is important that a solution be found that will benefit a homeowner both now and in the future.
A more viable option may be mortgage loan modification. Also known as loan restructuring or mortgage rate reduction, this simply means that efforts are made to reduce a current mortgage payment so that the homeowner can avoid foreclosure or bankruptcy and yet keep the current home.
www.loanmodificationhelpcenter.org is a website devoted to a great extent to mortgage loan modification. This simple-to-navigate website that has understandable information concerning the many options, including mortgage loan modification, that are available to homeowners. Additionally, it provides a means in which real, workable solutions may be found that can help alleviate homeowner concerns, rather than just temporarily ease them.
Because mortgage loan modification does require a significant level of expertise, it is important for a homeowner to have access to those professionals who can provide the highest quality service. www.FeldmanLawCenter.com describes the type of services that are available for anything involving real estate, including loan modification.
There are ways in which homeowners can meet and overcome crises caused by the economic situation, both overall and in the mortgage industry. Knowing where to look is the first step in acquiring the necessary information that is timely and factual, thereby allowing a homeowner to make wise decisions that will be effective both now and when the economic situation changes.
About Feldman Law Center
The Feldman Law Center is one of the premier loan modification companies in California, and our skilled loan modification professionals are trained to successfully and carefully guide homeowners through the loan modification process. The Feldman Law Center can negotiate with your current lender if you are behind on your mortgage and need help.
A loan modification is arguably the most effective tool you can use if you are behind on your mortgage and in the midst of a financial hardship. At the Feldman Law Center, we do our best to guide you through the process of restructuring your mortgage through a California loan modification, FDIC loan modification or other available program. Once you’ve done a loan modification, the mortgage loan is restructured so that it is affordable and can fit comfortably into your budget. After you’ve gone through the loan modification process, you’ll have an affordable monthly payment instead of an overwhelming monthly drain on your already tight finances.
Loan Modifications
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.
Our loan modification professionals are heavily trained to both guide you through the loan modification process and to know about all the programs available to you. The FDIC and the state of California (as well as other government agencies) have programs that you may be eligible for and which may keep you in your home. Our main goal in assisting you with your California loan modification or FDIC loan modification is to keep you in your home and to avoid foreclosure.
Loan Modification Attorney
We employ full time loan modification attorneys on site who will assist you in handling paperwork, negotiating with lenders whenever possible and understanding all the legal traps that would otherwise cause you trouble. While many other companies are simply an outsourcing program that can’t actually assist you, we guide you through the loan modification from start to finish.
Loan Modification Agreements
One of the ways our loan modification professionals and loan modification attorneys can assist you is in navigating loan modification agreements. These agreements come in various forms, but quite often they involve the reduction of the mortgage’s interest rate for a specific period of time. This is done so that the homeowner can continue to make payments and stay in the home. Loan modifications can also be designed to increase the amortization term (say 40 years instead of 30) which will also cause the payment to decrease. Principal loan reductions are rare, but they do happen where the bank actually writes down the principal amount.
Mortgage Lenders
Lenders would rather modify a loan than have a foreclosure. Our loan modification professionals understand this fact and use that to your advantage. We regularly work with banks and other lenders to write down, modify and otherwise renegotiate loans. Our years of experience in the loan modification industry are unparalleled, and our track record of success is unmatched. We have helped countless homeowners stay in their homes through California loan modifications, FDIC loan modifications and other types of loan modifications.
Visit us at Feldman Law Center or call 800-588-0425.
Legal DisclaimerThe 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.
Monday, May 11, 2009
Who Qualifies for a Loan Modification? - Feldman Law Center
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 mortgate 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:
- You occupy your house as your primary residence
- Your monthly mortgage payment is greater than 31% of your monthly gross income
- Your loan (mortgate) is not large enough to exceed current Fannie Mae and Freddie Mac limits
Loan Modification
The key is to find a qualified loan modification attorney who understands loan modification law.
Loan modification attorneys will tell you that there are only three possible outcomes when a homeowner cannot make the payments on their mortgage:
- The property goes back to the lender through a foreclosure or a “deed-in-lieu” and the property goes back out on the market.
- The homeowner sells the home in a conventional sale or a “short sale” and the home goes back onto the market.
- 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:
- Families are kept in their homes through the loan modification process
- Loan modifications ease the financial pressure that causes stress in families
- Loan Modifications have the least cost solution to the lenders, which is why many lenders are willing to do them
- 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.
- Loan modifications are a market solution, meaning they aren’t taking taxpayer dollars.
- Loan Modifications can be done quickly if you have an experienced loan modification attorney.
- Loan Modification, Foreclosure Assistance, & Foreclosure Help by The Feldman Law Center
Loan modification is the focus on our website, however; we do provide our clients with proper legal advice and share expertise in the areas of real estate transactions, mortgage negotiations, loan modifications and debt settlement. The Feldman Law Center, a Loan Modification Attorney, was founded by Steven C. Feldman who has been licensed by the State Bar of California for over 25 years. We are consumer and homeowner advocates that will protect you from home foreclosure with our detailed loan modification program. The Law Offices were established to focus on real estate matters that include debt negotiation, predatory lending violations, settlements and loan modification. We are here to help stop foreclosure, and fight mortgage fraud.
About Feldman Law Center
The Feldman Law Center is one of the premier loan modification companies in California, and our skilled loan modification professionals are trained to successfully and carefully guide homeowners through the loan modification process. The Feldman Law Center can negotiate with your current lender if you are behind on your mortgage and need help.
A loan modification is arguably the most effective tool you can use if you are behind on your mortgage and in the midst of a financial hardship. At the Feldman Law Center, we do our best to guide you through the process of restructuring your mortgage through a California loan modification, FDIC loan modification or other available program. Once you’ve done a loan modification, the mortgage loan is restructured so that it is affordable and can fit comfortably into your budget. After you’ve gone through the loan modification process, you’ll have an affordable monthly payment instead of an overwhelming monthly drain on your already tight finances.
Loan Modifications
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.
Our loan modification professionals are heavily trained to both guide you through the loan modification process and to know about all the programs available to you. The FDIC and the state of California (as well as other government agencies) have programs that you may be eligible for and which may keep you in your home. Our main goal in assisting you with your California loan modification or FDIC loan modification is to keep you in your home and to avoid foreclosure.
Loan Modification Attorney
We employ full time loan modification attorneys on site who will assist you in handling paperwork, negotiating with lenders whenever possible and understanding all the legal traps that would otherwise cause you trouble. While many other companies are simply an outsourcing program that can’t actually assist you, we guide you through the loan modification from start to finish.
Loan Modification Agreements
One of the ways our loan modification professionals and loan modification attorneys can assist you is in navigating loan modification agreements. These agreements come in various forms, but quite often they involve the reduction of the mortgage’s interest rate for a specific period of time. This is done so that the homeowner can continue to make payments and stay in the home. Loan modifications can also be designed to increase the amortization term (say 40 years instead of 30) which will also cause the payment to decrease. Principal loan reductions are rare, but they do happen where the bank actually writes down the principal amount.
Mortgage Lenders
Lenders would rather modify a loan than have a foreclosure. Our loan modification professionals understand this fact and use that to your advantage. We regularly work with banks and other lenders to write down, modify and otherwise renegotiate loans. Our years of experience in the loan modification industry are unparalleled, and our track record of success is unmatched. We have helped countless homeowners stay in their homes through California loan modifications, FDIC loan modifications and other types of loan modifications.
Visit us at Feldman Law Center or call 800-588-0425.
Legal DisclaimerThe 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.
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 mortgate 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:
- You occupy your house as your primary residence
- Your monthly mortgage payment is greater than 31% of your monthly gross income
- Your loan (mortgate) is not large enough to exceed current Fannie Mae and Freddie Mac limits
Loan Modification
The key is to find a qualified loan modification attorney who understands loan modification law.
Loan modification attorneys will tell you that there are only three possible outcomes when a homeowner cannot make the payments on their mortgage:
- The property goes back to the lender through a foreclosure or a “deed-in-lieu” and the property goes back out on the market.
- The homeowner sells the home in a conventional sale or a “short sale” and the home goes back onto the market.
- 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:
- Families are kept in their homes through the loan modification process
- Loan modifications ease the financial pressure that causes stress in families
- Loan Modifications have the least cost solution to the lenders, which is why many lenders are willing to do them
- 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.
- Loan modifications are a market solution, meaning they aren’t taking taxpayer dollars.
- Loan Modifications can be done quickly if you have an experienced loan modification attorney.
- Loan Modification, Foreclosure Assistance, & Foreclosure Help by The Feldman Law Center
Loan modification is the focus on our website, however; we do provide our clients with proper legal advice and share expertise in the areas of real estate transactions, mortgage negotiations, loan modifications and debt settlement. The Feldman Law Center, a Loan Modification Attorney, was founded by Steven C. Feldman who has been licensed by the State Bar of California for over 25 years. We are consumer and homeowner advocates that will protect you from home foreclosure with our detailed loan modification program. The Law Offices were established to focus on real estate matters that include debt negotiation, predatory lending violations, settlements and loan modification. We are here to help stop foreclosure, and fight mortgage fraud.
About Feldman Law Center
The Feldman Law Center is one of the premier loan modification companies in California, and our skilled loan modification professionals are trained to successfully and carefully guide homeowners through the loan modification process. The Feldman Law Center can negotiate with your current lender if you are behind on your mortgage and need help.
A loan modification is arguably the most effective tool you can use if you are behind on your mortgage and in the midst of a financial hardship. At the Feldman Law Center, we do our best to guide you through the process of restructuring your mortgage through a California loan modification, FDIC loan modification or other available program. Once you’ve done a loan modification, the mortgage loan is restructured so that it is affordable and can fit comfortably into your budget. After you’ve gone through the loan modification process, you’ll have an affordable monthly payment instead of an overwhelming monthly drain on your already tight finances.
Loan Modifications
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.
Our loan modification professionals are heavily trained to both guide you through the loan modification process and to know about all the programs available to you. The FDIC and the state of California (as well as other government agencies) have programs that you may be eligible for and which may keep you in your home. Our main goal in assisting you with your California loan modification or FDIC loan modification is to keep you in your home and to avoid foreclosure.
Loan Modification Attorney
We employ full time loan modification attorneys on site who will assist you in handling paperwork, negotiating with lenders whenever possible and understanding all the legal traps that would otherwise cause you trouble. While many other companies are simply an outsourcing program that can’t actually assist you, we guide you through the loan modification from start to finish.
Loan Modification Agreements
One of the ways our loan modification professionals and loan modification attorneys can assist you is in navigating loan modification agreements. These agreements come in various forms, but quite often they involve the reduction of the mortgage’s interest rate for a specific period of time. This is done so that the homeowner can continue to make payments and stay in the home. Loan modifications can also be designed to increase the amortization term (say 40 years instead of 30) which will also cause the payment to decrease. Principal loan reductions are rare, but they do happen where the bank actually writes down the principal amount.
Mortgage Lenders
Lenders would rather modify a loan than have a foreclosure. Our loan modification professionals understand this fact and use that to your advantage. We regularly work with banks and other lenders to write down, modify and otherwise renegotiate loans. Our years of experience in the loan modification industry are unparalleled, and our track record of success is unmatched. We have helped countless homeowners stay in their homes through California loan modifications, FDIC loan modifications and other types of loan modifications.
Visit us at Feldman Law Center or call 800-588-0425.
Legal DisclaimerThe 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.
Wednesday, May 6, 2009
$1.45 Trillion In Mortgage Debt Bought By Fed - Feldman Law Center
With the markets appearing to possibly be rebounding from record losses, economic experts are scrambling to ensure the small improvement catapults as far as possible within the current struggling American economic situation. Thus, to help this improvement gain even more momentum, the Fed announced a plan to buy $300 million in T-Bills. In addition, the Fed also included a promise to buy $1.45 trillion in mortgage debt.
While some people are confused on why this drastic measure is being taken, the main goal is to stimulate banks and lenders to begin lending money again. Ultimately, the stimulation of banks and lenders to actually lend is the main goal of all government stimulus packages. When the housing market began to show signs of economic distress, lenders tightened up their lending practices. However, when foreclosures became an everyday occurrence, they began to practically halt all lending altogether which created an intense economic problem in America.
Thus, lately bills focusing on loan modification (such as the newly House approved “Helping Families Save Their Homes in Bankruptcy Act of 2009”) are in the forefront to not only help those homeowners who can no longer pay their mortgages, but also help stimulate lenders and banks to begin lending again.
After the Fed announced their $1.45 trillion mortgage debt promise, long term interest rates dropped immediately. Thus, all financial analysts on Wall Street applauded the Fed for their continuous efforts to help the American economic conditions improve for the long haul. While it’s clear the mortgage debt will be bought by the Fed, it’s unclear whether these strategies will actually show a long term positive economic growth in America or if the action will only show temporary short-term economic improvements overall.
According to Bloomberg, the decision will add $750 billion in the purchases of mortgage-backed securities issued by the government this year (Fannie Mae, Freddie Mac, Ginnie Mae). Coupled with a previous plan of $217.1 billion in net purchases by the Fed out of $500 billion through June, this could lead to great economic stability.
For those homeowners struggling to pay their mortgage, this news may be welcomed. However, many are still in need of immediate assistance to avoid default and foreclosure. They can gain assistance from The Feldman Law Center by visiting www.FeldmanLawCenter.com, where professionals can help homeowners negotiate with lenders and avoid home foreclosure. Whether a homeowner is under financial hardship and cannot pay their mortgage, think they’ve been a victim of predatory lending on their mortgage, already have a foreclosure date set up or want to avoid their credit being ruined for the next ten years due to foreclosure, there is help to be had at The Feldman Law Center.
While some people are confused on why this drastic measure is being taken, the main goal is to stimulate banks and lenders to begin lending money again. Ultimately, the stimulation of banks and lenders to actually lend is the main goal of all government stimulus packages. When the housing market began to show signs of economic distress, lenders tightened up their lending practices. However, when foreclosures became an everyday occurrence, they began to practically halt all lending altogether which created an intense economic problem in America.
Thus, lately bills focusing on loan modification (such as the newly House approved “Helping Families Save Their Homes in Bankruptcy Act of 2009”) are in the forefront to not only help those homeowners who can no longer pay their mortgages, but also help stimulate lenders and banks to begin lending again.
After the Fed announced their $1.45 trillion mortgage debt promise, long term interest rates dropped immediately. Thus, all financial analysts on Wall Street applauded the Fed for their continuous efforts to help the American economic conditions improve for the long haul. While it’s clear the mortgage debt will be bought by the Fed, it’s unclear whether these strategies will actually show a long term positive economic growth in America or if the action will only show temporary short-term economic improvements overall.
According to Bloomberg, the decision will add $750 billion in the purchases of mortgage-backed securities issued by the government this year (Fannie Mae, Freddie Mac, Ginnie Mae). Coupled with a previous plan of $217.1 billion in net purchases by the Fed out of $500 billion through June, this could lead to great economic stability.
For those homeowners struggling to pay their mortgage, this news may be welcomed. However, many are still in need of immediate assistance to avoid default and foreclosure. They can gain assistance from The Feldman Law Center by visiting www.FeldmanLawCenter.com, where professionals can help homeowners negotiate with lenders and avoid home foreclosure. Whether a homeowner is under financial hardship and cannot pay their mortgage, think they’ve been a victim of predatory lending on their mortgage, already have a foreclosure date set up or want to avoid their credit being ruined for the next ten years due to foreclosure, there is help to be had at The Feldman Law Center.
Bankruptcy Loan Modification Bill Is Approved By House - Feldman Law Center
Last week, a bill which allows bankruptcy judges to lower mortgage payments was approved by the house and will now be sent to the Senate. This bill is expected to show great relief to struggling homeowners unable to meet their monthly mortgage payments currently. Before the bill was approved by the House, major banks and lenders voiced their strong opposition stating the act of lowering mortgage payments would only drive up housing costs over time. Those homeowners interested in learning more about mortgage relief can visit www.loanmodificationhelpcenter.org for more information. This free website allows anyone to gather more information on loan modification or the process of avoiding bankruptcy due to mortgage default.
Last year, mortgage defaults hit an all-time high of 5.4 million, according to national reports. In fact, a survey conducted by the Mortgage Bankers Association showed nearly 12% of homeowners were in foreclosure or were behind in their mortgage payments as of the end of 2008. Thus, it is clear there is a real problem with homeowners being able to meet their monthly payment obligations at this time of American economic struggle.
As part of President Obama’s housing sector rescue program, this bill technically gives permission to judges to reduce any principal and interest rates on mortgages in trouble. Previously a bill was passed giving judges the authority to modify car loan and student loan payments, but mortgage modifications were not a part of that particular bill.
This mortgage modification bill is meant to persuade banks to help trouble borrowers more, by providing more arrangements and alternatives to bankruptcy. However, the bill’s critics still think the increase in current bankruptcy fillings will make mortgage rates higher and be more damaging in the long run of the housing industry.
As a compromise, Housing Secretary Shaun Donovan developed a compromise which includes the limiting of bankruptcy options for homeowners. This limit allows the bankruptcy option to only be available to those homeowners who have previously tried other methods of assistance. Thus, if a homeowner wants to file for bankruptcy loan modification, the homeowner must first approach the lender about other solutions. In addition, lenders shall get 30 days to draw up alternative offers and possible bankruptcy alternatives. This compromise also allows judges to look at each individual case to see if the terms from the lender fit within the housing plan of debt-to-income ratio of 31%.
While many of the nation’s representatives feel this bill is certainly flawed in some areas, most feel it ensures bankruptcy will be a homeowner’s last choice when it comes to their mortgage options. Those banks and lenders who choose to participate in this Hope for Homeowners loan modification program will get an incentive of federal insurance from $100,000 to $250,000, permanently.
For more information about Loan Modification call 800-470-0865 or visit Feldman Law Center
Last year, mortgage defaults hit an all-time high of 5.4 million, according to national reports. In fact, a survey conducted by the Mortgage Bankers Association showed nearly 12% of homeowners were in foreclosure or were behind in their mortgage payments as of the end of 2008. Thus, it is clear there is a real problem with homeowners being able to meet their monthly payment obligations at this time of American economic struggle.
As part of President Obama’s housing sector rescue program, this bill technically gives permission to judges to reduce any principal and interest rates on mortgages in trouble. Previously a bill was passed giving judges the authority to modify car loan and student loan payments, but mortgage modifications were not a part of that particular bill.
This mortgage modification bill is meant to persuade banks to help trouble borrowers more, by providing more arrangements and alternatives to bankruptcy. However, the bill’s critics still think the increase in current bankruptcy fillings will make mortgage rates higher and be more damaging in the long run of the housing industry.
As a compromise, Housing Secretary Shaun Donovan developed a compromise which includes the limiting of bankruptcy options for homeowners. This limit allows the bankruptcy option to only be available to those homeowners who have previously tried other methods of assistance. Thus, if a homeowner wants to file for bankruptcy loan modification, the homeowner must first approach the lender about other solutions. In addition, lenders shall get 30 days to draw up alternative offers and possible bankruptcy alternatives. This compromise also allows judges to look at each individual case to see if the terms from the lender fit within the housing plan of debt-to-income ratio of 31%.
While many of the nation’s representatives feel this bill is certainly flawed in some areas, most feel it ensures bankruptcy will be a homeowner’s last choice when it comes to their mortgage options. Those banks and lenders who choose to participate in this Hope for Homeowners loan modification program will get an incentive of federal insurance from $100,000 to $250,000, permanently.
For more information about Loan Modification call 800-470-0865 or visit Feldman Law Center
Monday, May 4, 2009
Who Qualifies for a Loan Modification? | Feldman Law Center
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:
· You occupy your house as your primary residence
· Your monthly mortgage payment is greater than 31% of your monthly gross income
· Your loan (mortgage) 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.
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. Los 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.
Loan Modification, Foreclosure Assistance, & Foreclosure Help by The Feldman Law Center
Loan modification is the focus on our website, however; we do provide our clients with proper legal advice and share expertise in the areas of real estate transactions, mortgage negotiations, loan modifications and debt settlement. The Feldman Law Center, a Loan Modification Attorney, was founded by Steven C. Feldman who has been licensed by the State Bar of California for over 25 years. We are consumer and homeowner advocates that will protect you from home foreclosure with our detailed loan modification program. The Law Offices were established to focus on real estate matters that include debt negotiation, predatory lending violations, settlements and loan modification. We are here to help stop foreclosure, and fight mortgage fraud.
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:
· You occupy your house as your primary residence
· Your monthly mortgage payment is greater than 31% of your monthly gross income
· Your loan (mortgage) 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.
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. Los 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.
Loan Modification, Foreclosure Assistance, & Foreclosure Help by The Feldman Law Center
Loan modification is the focus on our website, however; we do provide our clients with proper legal advice and share expertise in the areas of real estate transactions, mortgage negotiations, loan modifications and debt settlement. The Feldman Law Center, a Loan Modification Attorney, was founded by Steven C. Feldman who has been licensed by the State Bar of California for over 25 years. We are consumer and homeowner advocates that will protect you from home foreclosure with our detailed loan modification program. The Law Offices were established to focus on real estate matters that include debt negotiation, predatory lending violations, settlements and loan modification. We are here to help stop foreclosure, and fight mortgage fraud.
Subscribe to:
Posts (Atom)
