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.