Feldman Law Center

Press Release – The Feldman Law Center’s Code of Ethics and Practices

Feldman Law Center – The Cream Rises in Loan Modifications

Feldman Law Center – Ten Tips for a Successful Home Loan Modification

Feldman Law Center – Saving Thousands with a Loan Modification – Debt Settlement Combination

Feldman Law Center – Mission Viejo, CA, 92891 – Citysearch

Feldman Law Center – The New York Times gets it About Half Right

Feldmanlawcenter.com – Feldman Law Center Company News

Press Release – The Feldman Law Center’s Code of Ethics and Practices

Feldman Law Center Trulia Profile

The Labyrinth – Feldman Law Center – Loan Modification Help by Feldman Law Center

2009-08-13T06:59:00.001-07:00

Feldman Law Center – News by Feldman Law Center — If homeowners are holding on to one aspect of the Obama Administration’s Homeowner Affordability and Stability Plan, it’s “2%”. Of the multitude of calls that come in to The Feldman Law Center, a majority of them sound something like “How do I qualify for a 2% mortgage?”

The promise of the program, in general, has been muted by its slow uptake by lenders and mortgage servicers and the incredibly slow response time for those that have applied with them for home loan modifications. Some homeowners are waiting months just to hear whether they qualify, while their foreclosure creeps ever closer.
The one issue being proved out is that attorney driven home loan modifications are moving faster and have a much better chance of getting approved. Steve Feldman, Senior Partner at The Feldman Law Center agreed saying, “We took the time to understand the guidelines and we’re familiar with the different protocols at the various lenders, so we’re very comfortable with navigating the process.”

The new program has carried with it the problems of learning the guidelines, integrating systems, and training staff, all of which have slowed the process to a crawl at many of the lenders. Fifteen lenders, in addition to FNMA and FHLMC, are participating in the program. That group lists the biggest lenders in the country including BankAmerica, JP Morgan Chase, CitiMortgage, and Wells Fargo but the banks are still very limited in how many applications they can process at any given time.
Homeowners unfamiliar with guidelines and the lender’s interpretations of them are getting different answers from different people at the banks and requests for multiple submissions for paperwork as files are passed from one overworked processor to the next. Another impediment is that the bulk of original loans were packaged and sold to domestic and international institutional investors. The mortgages are handled by servicers that process payments, do billing, and keep records but don’t actually own the mortgage paper. This brings a third party into the negotiations that may or may not agree with the new terms of a modified loan. Congress recently passed a “safe harbor law” that gives servicers more autonomy in their loan modification approval process but whether that increases the number of completed modifications remains to be seen.

Jobs cutbacks and unemployment are now the largest single factor causing homeowners to struggle with their payments. “Employment issues started with people that worked directly in the real estate and mortgage areas, and then spread to the people that relied on business from those sectors like furniture, flooring, etc”, Mr. Feldman said, “Now, with the economy as soft as it is, unemployment is spread across the entire job market. We’re seeing home loan modification applications from all walks of life.”

Borrowers who have received foreclosure documents from lenders/servicers and those who may soon miss a mortgage payment are eligible for the Homeowner Affordability and Stability Plan. To be eligible, a borrower must live in the home, have a monthly mortgage payment larger than 31 percent of their gross income, bought their homes before January 1st 2009, and owe less than $729,750 on the mortgage. The cap of the size of the mortgage excludes many homeowners on both coasts and other affluent areas.

Under the most basic guidelines of the plan, the monthly payments of those who are approved for a modification are lowered to the 31 percent limit. Lenders can do this by reducing interest rates to as low as 2 percent, by extending the term of the loan to 40 years or by deferring principal. The plan has provisions to cover some of the homeowner’s mortgage balance in order to reach the 31% of gross income level. The plan also rewards borrowers and lenders for modifications where payments are made for twelve consecutive months.

About 100,000 homeowners across the country so far have been extended loan modification offers, according to Meg Reilly, a spokeswoman for the Treasury Department. “We are absolutely working to make things move faster and provide relief to more homeowners as soon as possible,” Ms. Reilly said. “We are encouraging servicers to staff up, establishing a hotline for homeowners, looking for new tools to expedite this process, working with communities to get the word out about resources available to homeowners.”

JP Morgan chase has 15,000 homeowners in trial modifications and Wells Fargo has enrolled approximately 3,000. A trial typically lasts 3 months and reduces a homeowner’s mortgage payments while the home loan modification is being processed. If the homeowner is late or misses a payment the loan modification process is stopped and the homeowner is immediately disqualified. There are no statistics at this point covering how many homeowners have been disqualified from the trial aspect of the modification process.

With a million foreclosure already filed through May, industry watchers agree that more needs to be done but there are additional challenges that may prevent homeowners from receiving home loan modifications. One of those challenges is an aspect of the program that allows servicers to run what is known as a net present value test, which determines whether a loan modification would be a better value for the mortgage investors than foreclosure. In places where property values have been hard hit and many people owe more than their properties are worth, servicers are more likely to opt for mortgage loan modifications because the homes would not bring in enough money in a foreclosure sale, if the homes could be sold at all.

On the other hand, the net present value test would favor foreclosure in places like New York City, where values are still high and loan amounts are much higher than other areas of the country. There, servicers might have to give more concessions in a modification to bring them in line with homeowners’ current financial picture. If homes haven’t lost as much value, on a relative basis, and there are indications that they could be sold at auction then foreclosure would provide a better return for the investors.

At issue, is that servicers are using their own criteria for the net present value tests and are not required to tell borrowers the details of how they run them and how they determine a home’s value. The calculations derived from the test put homeowners at the mercy of the investors in terms of a foreclosure decision but they have no idea on how the decision is made. The incentives provided by the program to servicers are intended, in part, to mitigate the results of the net present value tests but at the higher price ranges they don’t pay enough money to alter the outcome of the test.

According to Steve Feldman, “This is one of the areas where we add the most value for our clients”, referring to the net present value tests, “A lot of homeowners trying to do this on their own are getting bogged down and disqualified at this point in their modification. Our process gets the homeowner through the net present value test as quickly as possible.” Homeowners on the brink of foreclosure may want to consider those words before walking through the labyrinth of home loan modifications on their own.

For more information visit Feldman Law Center at www.feldmanlawcenter.com.

Resources:
Feldman Law Center: Profile – Business Exchange

Feldman Law Center – The Cream Rises in Loan Modifications

Feldman Law Center – Ten Tips for a Successful Home Loan Modification

Feldman Law Center – Saving Thousands with a Loan Modification – Debt Settlement Combination

Feldman Law Center – Mission Viejo, CA, 92891 – Citysearch

Feldman Law Center – The New York Times gets it About Half Right

Feldmanlawcenter.com – Feldman Law Center Company News

Feldman Law Center Trulia Profile

Feldman Law Center – Why Loan Modifications Are Better Than Bankruptcies

2009-08-12T06:49:00.000-07:00

Feldman Law Center – News by Feldman Law Center – Feldman Law Center: If you are considering bankruptcy because of the debt you owe on your house, you probably know something about filing for bankruptcy, but are still checking out the options that you have.

Chapter 7 Bankruptcy, sometimes referred to as a “straight bankruptcy,” is where your non-exempt property is sold and the cash proceeds are given to your creditors. This method of filing for bankruptcy has become more difficult recently, due to new legislation on the issue.

Chapter 13 Bankruptcy allows you to reorganize your debts – consolidating your debts and paying them off, free of interest, over a time period of three to five years. This plan prevents creditors from collecting from you during the terms of the contract, as required by Federal Courts. However, you must have a consistent source of income for this type of bankruptcy to be approved, and you must continue to pay for your monthly living expenses as well as the debts you consolidate.

Although both Chapter 7 and Chapter 13 bankruptcy can help you to get rid of some of your debts, filing for bankruptcy does cost money, and the legal battle can take time. A bankruptcy also stays on your credit report for ten years, marring your credit score, which can affect your ability to rent property or get a job, among other things. It also affects your short-term ability to get credit. In the past, bankruptcy was a popular way of dealing with mounting debts, such as too-high mortgage payments.

Bankruptcy has become an increasingly difficult legal process to complete, it may not actually get you out of your mortgage agreement, and it is a major blemish on your credit history. The attorneys of The Feldman Law Center believe that you have other options, and that you should avoid foreclosure at all costs.

If you have been making late payments on your loan, have a climbing adjustable interest rate, or have not paid interest and fees on your mortgage, one option that you should consider is a loan modification. One of our California loan modification attorneys can help you negotiate your loan agreement with your mortgage company. The attorneys at the Feldman Law Center not only know the latest regulations regarding home loan modifications, but they are able to negotiate a more favorable contract with your lender than you would be able to do on your own. Some positive changes that can result from a loan modification include a lower interest rate on your mortgage, forgiveness of some of the amount you owe, stabilization of an adjustable rate mortgage, negotiation of lower monthly payments, and more.

Not only can the above things result from enlisting the help of a home loan modification attorney, but you can also avoid the expense and time that a bankruptcy would entail. A loan modification will not adversely affect your credit report like a bankruptcy will, and you can stay in your house and retain the money that you’ve already paid towards your mortgage. An attorney at the Feldman Law Center can help you get these results more quickly than you could do on your own, and can save you the hassle of filing for bankruptcy. Contact us today for your free consultation.

About Feldman Law Center
The Feldman Law Center was founded for the purpose of negotiating mortgage loan modifications on behalf of their clients. These negotiations have two major goals; to reduce monthly mortgage payments to a level of affordability for the homeowner and to either stop foreclosure proceedings. The mission at The Feldman Law Center is to provide the highest level of professional service while delivering the best possible result on each mortgage loan modification we negotiate on the behalf of the families we represent.

Having negotiated over 500 attorney driven loan modifications, we realize that each homeowner’s situation is unique and that each modification may require a different approach than the one before it. To that end, we can always call on our 25 years of negotiating, knowledge, and real estate experience to provide the most optimal solutions for each family’s situation. While we are negotiating your mortgage loan modification with your lenders our friendly and compassionate team will keep you updated all the way on how the process is advancing.

Resources:

Press Release – The Feldman Law Center’s Code of Ethics and Practices

Feldman Law Center – The Cream Rises in Loan Modifications

Feldman Law Center – Ten Tips for a Successful Home Loan Modification

Feldman Law Center – Saving Thousands with a Loan Modification – Debt Settlement Combination

Feldman Law Center – Mission Viejo, CA, 92891 – Citysearch

Feldman Law Center – The New York Times gets it About Half Right

Feldmanlawcenter.com – Feldman Law Center Company News

Press Release – The Feldman Law Center’s Code of Ethics and Practices

Feldman Law Center Trulia Profile

Feldman Law Center – Why Does It Seem Like Everyone is in Foreclosure?

2009-08-11T06:34:00.000-07:00

At the Feldman Law Center, we have seen many homeowners wrestle with the difficult financial challenges facing everyone today. However, it is not just homeowners who are wrestling with difficult financial circumstances. Fortune 500 companies are declaring bankruptcy, banks are failing and even politicians are having a hard time selling their homes. One amazing occurrence that the entire financial industry is paying attention to is how many commercial foreclosures and bankruptcies there are.

For example, in the first half of 2009, the bankruptcy and debt restructuring activity among major corporations increased 329 percent! For major corporations, loan modifications are not an option, and they must handle their debts much differently. The industries facing the highest number of bankruptcies include financial services, manufacturing and industrials, real estate and consumer retail.

Other signs of financial trauma include United States Secretary of the Treasury Timothy Geithner having a hard time selling his home. It was also reported that 1,200 businesses in Rhode Island were threatened with foreclosure for not paying their taxes. That is not 100 businesses, but over 1,000 businesses could face foreclosure for allegedly not paying taxes. It seems like there is just a smaller amount of money than ever before, and everyone is trying to get what they can. State governments are fighting city governments, large corporations are fighting small businesses and the average homeowner is trying to keep their home out of the foreclosure process.

As mentioned earlier, General Motors can’t just call a loan modification attorney and try to get a loan modification for all of their manufacturing plants. However, a homeowner can do just that, and save himself or herself the pain and embarrassment of a foreclosure. A mortgage loan modification is an agreement between the borrower and the lender to renegotiate the terms of a home mortgage loan. A home loan modification could change the interest rate, eliminate late fees and penalties, adjust the length of the loan and much more.

Another major asset in the loan modification process is a loan modification attorney. A loan modification attorney can offer a specialized skill which is incredibly valuable to anyone looking for a great loan modification. A loan modification can provide excellent advice and counsel, as well as a particular skill in negotiating a home loan modification. Negotiating with lenders can be trick, and even in a difficult financial time like we are in now, banks and mortgages companies do not want to give up too much. Banks will take advantage of every situation they can, but with a California loan modification attorney on your side, you can have a highly trained professional representing you.

If you are in a difficult financial circumstance, you can comfort yourself with the knowledge that you do not have the debt problems that a large corporation has and you have many more options as well. A loan modification attorney can help you get the best mortgage loan modification possible and help you stay in your home for the long term.

Visit Feldman Law Center at http://www.feldmanlawcenter.com or call 800-588-0425.

About Feldman Law Center
The Feldman Law Center was founded for the purpose of negotiating loan modifications on behalf of their clients. These negotiations have two major goals; to reduce monthly mortgage payments to a level of affordability for the homeowner and to either stop or avoid foreclosure proceedings. The mission at The Feldman Law Center is to provide the highest level of professional service while delivering the best possible result on each loan modification we negotiate on the behalf of the families we represent.

Having negotiated over 500 attorney driven loan modifications, we realize that each homeowner’s situation is unique and that each modification may require a different approach than the one before it. To that end, we can always call on our 25 years of negotiating, knowledge, and real estate experience to provide the most optimal solutions for each family’s situation. While we are negotiating your loan modification with your lenders our friendly and compassionate team will keep you updated all the way on how the process is advancing.

Resources:
Feldman Law Center: Profile – Business Exchange

Feldman Law Center – The Cream Rises in Loan Modifications

Feldman Law Center – Ten Tips for a Successful Home Loan Modification

Feldman Law Center – Saving Thousands with a Loan Modification – Debt Settlement Combination

Feldman Law Center – Mission Viejo, CA, 92891 – Citysearch

Feldman Law Center – The New York Times gets it About Half Right

Feldmanlawcenter.com – Feldman Law Center Company News

Press Release – The Feldman Law Center’s Code of Ethics and Practices

Feldman Law Center Trulia Profile

Feldman Law Center – Loan Modifications Ramped Up by Government

2009-08-10T07:27:00.000-07:00

Feldman Law Center – News by Feldman Law Center — The world of loan modifications is ever changing, and proof positive is the federal government’s ever-expanding role in influencing banks to offer loan modifications. It was recently reported that the government is frustrated with the progress of their federal loan modification program, and are trying to influence major banks to increase the number of loan modifications for homeowners. Of course, increasing the number of mortgage loan modifications means relaxing the standards which they are currently using to allow for loan modifications.

Banks such as Bank of America, Citigroup, J.P. Morgan Chase and Wells Fargo were all summoned to a meeting in Washington, D.C. to discuss ways to improve the federal loan modification program, which was announced in February 2009. The Obama Administration put a great deal of effort and hope into the program, but it has not yet produced the kinds of results people thought it would. The administration’s goal is to complete 500,000 trial home loan modifications, although some analysts fear this is far too optimistic. The government has discussed ways to expand the program, including ways to simultaneously modify mortgages and home equity loans. When President Obama took office earlier this year, the number of foreclosures was sky rocketing due in large part to the subprime mortgage crisis and the adjustable rate mortgages (ARMs) which were offered so rampantly. As a result, millions of Americans were losing their homes and the government felt it needed to intervene.

While the level of government involvement is new, loan modifications, are nothing new. California loan modification attorneys have been helping people stay in their homes for years, by helping them get home loan modifications without government interference. Millions of people throughout California have used California loan modification attorneys for their California home loan modifications because attorneys carry a special place in our current culture. When a loan modification attorney calls a bank or lender, they get a much quicker response because they have the law on their side. When people try to handle loan modifications on their own, they usually do not know what they are doing exactly and can make many mistakes as a result.

The recent government programs have helped a few people, but since the banks all have huge bureaucracies and the federal government is one giant bureaucracy, people often get lost in process. Trying to call the federal loan modification program hotline can cause major headaches, and trying to get one huge bureaucracy to call another huge bureaucracy can take months and months. While it is encouraging that the federal government is trying to help the average homeowner, a loan modification attorney can get better results in less time.

A loan modification can help adjust a number of mortgage terms to lower your monthly mortgage payment, thus allowing you an affordable payment you can pay consistently. California loan modification attorneys, such as those at the Feldman Law Center, have years of experience in helping people avoid foreclosure and stay in their homes. Our loan modification attorney team is highly skilled in helping California homeowners in avoiding foreclosure, avoiding bankruptcy, avoiding a short sale and avoiding the “just walk away” option.

Visit us at http://www.feldmanlawcenter.com or call 800-588-0425.

About Feldman Law Center
The Feldman Law Center was founded for the purpose of negotiating loan modifications on behalf of their clients. These negotiations have two major goals; to reduce monthly mortgage payments to a level of affordability for the homeowner and to either stop foreclosure proceedings. The mission at The Feldman Law Center is to provide the highest level of professional service while delivering the best possible result on each loan modification we negotiate on the behalf of the families we represent.

Having negotiated over 500 attorney driven loan modifications, we realize that each homeowner’s situation is unique and that each modification may require a different approach than the one before it. To that end, we can always call on our 25 years of negotiating, knowledge, and real estate experience to provide the most optimal solutions for each family’s situation. While we are negotiating your loan modification with your lenders our friendly and compassionate team will keep you updated all the way on how the process is advancing.

Resources:
Feldman Law Center: Profile – Business Exchange

Feldman Law Center – The Cream Rises in Loan Modifications

Feldman Law Center – Ten Tips for a Successful Home Loan Modification

Feldman Law Center – Saving Thousands with a Loan Modification – Debt Settlement Combination

Feldman Law Center – Mission Viejo, CA, 92891 – Citysearch

Feldman Law Center – The New York Times gets it About Half Right

Feldmanlawcenter.com – Feldman Law Center Company News

Feldman Law Center Trulia Profile
Feldman Law Center: Profile – Business Exchange
Press Release – The Feldman Law Center’s Code of Ethics and Practices
Loan Modification – Feldman Law Center
Feldman Law Center

Feldman Law Center Trulia Profile

Feldman Law Center – News Regarding FDIC Loan Modifications

2009-08-07T06:27:00.000-07:00

Feldman Law Center – News by Feldman Law Center — At the Feldman Law Center, our loan modification attorney team keeps their eye on all loan modification news in order to properly inform and education every client we work with. Our California loan modification company works hard to provide top notch advice as well as a skilled legal ability to get you the best loan modification agreement possible.

Recently, the federal government has been paying far more attention to the loan modification process than they have in the past. The Federal Deposit Insurance Corporation (FDIC) and the Federal Housing Administration have rolled out plans over the last year to combat the rising foreclosure proceedings. The FDIC loan modification program and the FHA loan modification program have received some heavy criticism from large financial institutions such as Moody’s Investor Services. In a recent Moody’s report, the FDIC loan modification program may eventually reduce cumulative losses for mortgage loans involved in the subprime mortgage crisis. The FDIC loan modification program is designed to help more people get quality loan modifications by creating a streamlined framework with key incentives, including: a loss-sharing arrangement for existing investors; and a thousand dollar stipend for every successful home loan modification.

Ultimately however, Moody’s feels that the participation in the FDIC loan modification program might be limited, which weakens the effectiveness of the program. The FDIC loan modification program will have a lesser cumulative impact on the losses suffered by banks, lenders and homeowners.

A California loan modification can be had by utilizing the skills of a California loan modification attorney. At the Feldman Law Center, our loan modification law firm can provide the kind of unique experience and highly sought after knowledge necessary to procure a loan modification. Working with any lender or federal agency involves lots of red tape and bureaucratic road blocks; but with a skilled loan modification attorney, you could overcome those challenges.

Many people are interested in how a mortgage loan modification can help them change their financial situation and keep them in their house for the long haul. Throughout California, foreclosure signs are popping up in neighborhoods all over the state, and even in some areas that never thought it would happen to them. Even such neighborhoods as Beverly Hills, Bel Air and Walnut Creek are suffering from the subprime crisis, and everyone in the state is suffering as a result. California unemployment has reached double digits, and it could get much worse.

A mortgage loan modification is an agreement between the debtor and the mortgage company to renegotiate the terms of the mortgage loan. This is done so that the borrower can have an affordable, reasonable monthly payment, allowing them to keep making payments over the long haul. A California home loan modification attorney can help the borrower negotiate with the lender, arrange the loan modification application and communicate with the bank or lender. With a loan modification attorney at your side, you can get the best loan modification possible and keep yourself and your family in your home.

About Feldman Law Center
The Feldman Law Center was founded for the purpose of negotiating loan modifications on behalf of their clients. These negotiations have two major goals; to reduce monthly mortgage payments to a level of affordability for the homeowner and to either stop foreclosure proceedings. The mission at The Feldman Law Center is to provide the highest level of professional service while delivering the best possible result on each loan modification we negotiate on the behalf of the families we represent.

Having negotiated over 500 attorney driven loan modifications, we realize that each homeowner’s situation is unique and that each modification may require a different approach than the one before it. To that end, we can always call on our 25 years of negotiating, knowledge, and real estate experience to provide the most optimal solutions for each family’s situation. While we are negotiating your loan modification with your lenders our friendly and compassionate team will keep you updated all the way on how the process is advancing.

Resources:

Feldman Law Center-Behind the Numbers in the OCC and OTS Mortgage Metrics Summary for First Quarter 2009

2009-08-06T07:03:00.001-07:00

Feldman Law Center – News by Feldman Law Center:

The report recently released by the Comptroller of the Currency and the Office of Thrift Supervision showed some startling numbers for the first quarter, made worse by the knowledge that anecdotal evidence shows that the numbers for the second quarter of the year will likely be worse. The problems popping up all over the economy in general in the real estate market appear to be deeper and broader while assistance in the form of The Obama administration’s Making Home Affordable plan has been slow to arrive. Here’s some of the data and what it signifies for the real estate market:

* Serious delinquencies on prime loans, which account for two-thirds of all U.S. mortgages, rose to 661,914 in the first quarter from 250,986 a year earlier, according to the report. Overall, mortgages 60 days or more past due rose 88 percent from last year. Representing $4 trillion in mortgages, any incremental slippage in these numbers translates to major numbers in terms of inventory and dollars.
* The data shows 5.9 percent of the 21.8 million Fannie Mae and Freddie Mac loans serviced by national banks or thrifts were at least days 30 days late, in foreclosure or subject to bankruptcy, compared with 3.2 percent a year earlier. That’s 1.2 million properties that were struggling in an economy that has worsened since the report.
* Seriously delinquent mortgages (60 or more days past due or involving delinquent bankrupt borrowers) continued to increase across all mortgage categories. Economic contraction continued to weigh on homeowners.
* Foreclosures in process also increased during the quarter to 844,389, or about 2.5 percent of all serviced loans, as moratoriums on foreclosures expired during the first quarter. This increase represented a 22 percent jump from the previous quarter and a 73 percent rise from the first quarter of 2008. Moratoriums continued to expire into the second quarter resulting in benchmark of one million foreclosures being reached in May.

The OCC/OTS report initiated coverage on loan modification metrics. The report gave results on a total of 185,186 loans that were modified in the quarter:

* Almost two thirds of modified loans employed combinations where at least two terms were modified to reduce the mortgage payment.
* Capitalization of delinquent interest, fees, and advances, combined with interest rate reductions and extended maturities were the most common combinations.
* On completed loan modifications, 70.2 percent included a capitalization of missed payments and fees, 63.2 percent reduced the interest rate, and 25.1 included an extended maturity.
* Modifications that reduced monthly payments by 20 percent or more jumped 19 percent from the previous quarter, to 29 percent of all modifications. Studies have shown that home loan modifications that lower payments by 20% or more go into default at less than half the rate of those that reduce payments by less.
* By contrast, mortgage loan modifications that increased payments made up only 19 percent of the total, a drop of 25 percent from the previous quarter. Not surprisingly, these types of modification are falling out of favor due to their high re-default rate.

The report indicated that the main cause of foreclosures has morphed from ill-fated and risky subprimes to unemployment and a recessed economy. Considering that both of those areas continued to deteriorate over the second quarter, the next report from the OCC/OTS could be an eye opener.

About Feldman Law Center

The Feldman Law Center is one of California’s top loan modification companies, providing excellent service to our clients and is completely focused on keeping everyone one of our clients in their homes. Our mortgage loan modification experts work tirelessly to provide every homeowner we work with the information, guidance and support they need to modify their mortgages and keep the homes they’ve worked to buy.
About Loan Modifications
If you’re unfamiliar with what a loan modification is, a home loan modification is quite possibly the most effective tool you can utilize if you are behind on your mortgage, and are in the midst of a financial hardship, in order to save your home from interesting foreclosure. A mortgage loan modification is literally is a process where the terms of a mortgage are modified outside the original terms of the contract agreed to by the lender and borrower (i.e mortgagor and mortgagee). In general, any loan can be modified. The Feldman Law Center knows every law in California (and the country) that may be able to keep you in your home. Lenders would rather renegotiate the terms of your loan, and possibly even negotiate a principle reduction, than let the house go into foreclosure.
With years of experience negotiating with lenders, as well as years of experience keeping people in their homes, the Feldman Law Center is one of the most experienced loan modification firms in all of California.

Related Resources:
Feldman Law Center: Profile – Business Exchange

Press Release – The Feldman Law Center’s Code of Ethics and Practices

Feldman Law Center – The Cream Rises in Loan Modifications

Feldman Law Center – Ten Tips for a Successful Home Loan Modification

Feldman Law Center – Saving Thousands with a Loan Modification – Debt Settlement Combination

Feldman Law Center – Mission Viejo, CA, 92891 – Citysearch

Feldman Law Center – The New York Times gets it About Half Right

Feldmanlawcenter.com – Feldman Law Center Company News

Feldman Law Center: Profile – Business Exchange
Feldman Law Center
Loan Modification – Feldman Law Center
Feldman Law Center, Mission Viejo CA 92691

Feldman Law Center – Loan Modifications – Important things you must be aware of

2009-08-05T09:12:00.000-07:00

Feldman Law Center - News by Feldman Law Center — Let’s face it; times are tough for everyone these days. On the top of the list are homeowners struggling with their mortgage payments as well as other financial hardships. Most of the news heard lately about “mortgage relief” and “bailouts” does not appear to be helping homeowners facing default or foreclosure as we may have anticipated. The truth is, mortgage lenders don’t do loan modifications unless they are forced to, one way or another. To make matters worse loan modification companies offering stop foreclosure or loan modification services may be placing borrowers in worse situations by re-submitting all their financial information to the lender for a loan modification. In most cases these loan modifications are denied and now the lender has updated information that may even implicate the troubled homeowner in mortgage fraud. Many borrowers who bought or refinanced a home in the last three years used a Mortgage Broker who sold them an ARM or worse yet Option ARM loan while inflated home values and stated income allowed them to borrow more than the home was worth. Real estate agents, mortgage brokers, appraisers, loan officers, underwriters as well as bank executives made a killing in this market, and now we’re really feeling the effect. Most homeowners can’t refinance these days due to drastic property value declines, bank failures as well as financial hardships most are facing due to the “credit crunch” and our troubled economy.

So with all the lenders “smoke and mirrors” and bad news surrounding us what’s a troubled homeowner to do?

A loan modification seems to be the best option, as well as your only hope if you want to keep your home. Currently, one out of six homeowners nationwide is in default or foreclosure. Loan modification companies are coming out of nowhere boasting they are going to use TILA and RESPA violations to go after mortgage loan servicers and force them to modify your loan and reduce your principal balance. This just isn’t true. In matter of fact and loan modification company that is not a Law Office has absolutely NO leverage against your lender. Honestly, do you think a Loan Modification Company that offers you NO legal representation or a Loan Modification Attorney that offers a Loan Modification service is going to sue your lender? In addition, some attorneys out there would like you to believe a law suit is going to save your home. It may, but trust me; it’s going to cost a fortune. In some cases when a attorney can prove “predatory lending” or significant TILA or RESPA violations a simple phone call can get the job done. Borrowers need to be very careful these days in their approach with the lender. A lender does not have to modify your loan just because the property value dropped, that is not considered a hardship to them and they certainly don’t have to reduce the principal balance but they will in some cases. The Feldman Law Center is a Law Office that specializes in representing troubled homeowners imminent danger of losing their home, whether they are behind in their mortgage payments or not . Saving homes and offering sound legal advice is what we do, and we’re the best in the business. Troubled borrowers need proper representation with their lender, limiting our client’s exposure as well as fighting for the best possible loan modification is what we do best.

We are not here to milk our client’s for hefty retainers and leave them for dead, in matter of fact our fees are modest considering what you get with the Feldman Law Center. Our sophisticated approach drives proven results that save our clients homes. We have modified mortgages for lenders employees as well as many high level executives. We deal directly with the banks executives and not the minimum wage loss mitigation employees you will find on your own or with a loan modification company.

WARNING: Attorney based and assisted loan modification companies are NOT law offices and only offer “smoke and mirrors” as a means to get you to trust them. The Attorney Generals office as well as the Department of Real Estate simply cannot keep up with the loan modification companies operating illegally & unethically.

Important things you must be aware of:

1) Do not give any up front fees to loan modification or stop foreclosure companies boasting “attorney based”, “attorney backed” or “attorney assisted”!

2) Do not pay for a forensic loan audit unless it is performed by a Law Office, an attorney is the only person that may use lending violations as leverage!

3) Do not use a loan modification company unless they have an up front fee agreement approved by the DRE and offer a 100% money back guarantee!

4) Do not trust just anyone with your difficult situation; contact a Law Office and hire an attorney who specializes in Loan Modification and Loss Mitigation services!

There are many companies using the words “attorney”, “legal”, “lawyer” and so on. The bottom line is, these loan modification companies are wrongfully using this language unless they properly disclose they are NOT a Law Firm. Also, not to mention giving you advice that could cost you to lose your home and put your family on the street. Struggling homeowners need real help during these difficult times and not some ex- loan officer trying to get a fat commission or give them advice. The Feldman Law Center offers troubled borrowers real solutions and legal representation with creditors at a very reasonable flat fee. We do not believe in milking our clients with monthly billing for legal services and offering false hope. We offer straight talk, sound legal advice and the best possible results utilizing our expert negotiation skills and Federal Mortgage Laws. Call us today and see the difference for yourself. We will be more than happy answer any questions and share our knowledge as well as our proven results. We take great pride in our work and strive to be the #1 Law Firm in the country offering loan modification services.

Mr. Steven C. Feldman, ESQ. is available Monday – Friday during normal operating hours for in office appointments or a free consultation.

Call Feldman Law Center at 800-527-8497 or visit www.feldmanlawcenter.com

About Feldman Law Center
The Feldman Law Center was founded for the purpose of negotiating loan modifications on behalf of their clients. These negotiations have two major goals; to reduce monthly mortgage payments to a level of affordability for the homeowner and to either stop or avoid foreclosure proceedings. The mission at The Feldman Law Center is to provide the highest level of professional service while delivering the best possible result on each home loan modification we negotiate on the behalf of the families we represent.

Having negotiated over 500 attorney driven mortgage loan modifications, we realize that each homeowner’s situation is unique and that each modification may require a different approach than the one before it. To that end, we can always call on our 25 years of negotiating, knowledge, and real estate experience to provide the most optimal solutions for each family’s situation. While we are negotiating your mortgage loan modification with your lenders our friendly and compassionate team will keep you updated all the way on how the process is advancing.

Resources:

Feldman Law Center
Feldman Law Center: Profile – Business Exchange
Feldman Law Center Trulia Blog
Feldman Law Center, Mission Viejo CA 92691 – Merchant Circle Listing

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2009-08-04T08:53:00.001-07:00

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Feldman Law Center — Why You May Not Get That 2% Interest Rate by Feldman Law Center

2009-08-04T08:28:00.001-07:00

Feldman Law Center – Press Release by Feldman Law Center: Much has been made of the 2% base rate included in the guidelines for the Obama Administration’s “Making Home Affordable” plan. It’s been well documented that the plan is off to a very slow start with current estimates of approximately 50,000 loan modifications in process. Less talked about, at least so far, is that the 2% headline interest rate of the plan may be unavailable to most homeowners seeking loan modifications that follow the plan’s guidelines.

As the saying goes, “The devil is always in the details” and Making Home Affordable has a detail which goes by the name of the “Net Present Value” test. Many of the mortgages which were originated during the boom in real estate, including those considered to be toxic, were sold to investors on Wall Street, from pension funds, and insurance companies (like AIG). These investors didn’t have the infrastructure or experience to collect payments, prepare statements, etc. so they left the handling of those matters to loan servicers like Saxon Mortgage (now a part of JP Morgan Chase). These servicers interface with the homeowner on all matters, including home loan modifications. For that work, they receive a small percentage off of each of the homeowner’s monthly mortgage checks as their fee.

An unintended consequence of the meltdown in real estate prices and skyrocketing default rates is there is now a conflict of interest between servicers and the investors that employ them. The foundation of that conflict is this; with monthly mortgage payments functioning as the lifeline of the servicers, their priority is to keep those payments going. To that end, granting loan modifications, even with drastic cuts in interest rates, is a much better outcome for the servicer than not receiving payments at all and/or having the home go into foreclosure. Aggressive loan modifications which benefit the servicers often hurt the investors by forcing markdowns on value of loans in their portfolio, hence, the conflict of interest.

Having experienced this conflict prior to the unveiling of Making Home Affordable, investor groups insisted that the net present value test be added to the plan to protect their interests. A net present value (NPV) calculation works this way:

1) Determine the proposed monthly mortgage payment for the life of the modified loan
2) Calculate the total return in dollars over the life of the loan – monthly payment x 12 months x 30 years = total return
3) Estimate the value of what the foreclosed home would sell for at auction
4) The highest number between the total return and the estimated selling price at foreclosure determines what action will be taken.

Motivated to keep properties generating monthly payments and out of foreclosure, servicers will negotiate the highest interest rate possible, within the constraints of the plan and what the homeowner can afford, to generate higher fees and to make sure that the net present value test comes out on the side of loan modification. With higher fees and the net present value test driving the negotiations in a loan modification, granting 2% interest rates becomes a very low priority and in some cases a deal killer for the servicers.

Congress, hearing the cries from their constituencies, has backed the efforts of the mortgage servicers by passing the “Safe Harbor Law” in May. The law protects servicers from lawsuits filed by investors claiming that the servicers are acting in their own best interests in mortgage loan modifications, at the expense of the aggrieved investors. It also gives servicers more autonomy in their structuring their home loan modifications.

The net present value test can present formidable challenges to the loan modification process due to many factors that are constantly changing. In New York City, for example, overall property values have remained relatively high but income levels have dropped. Limited by Making Home Affordable guidelines, mortgage payments cannot exceed 31% of the homeowner’s monthly income. The cap on payments can result in a net present value outcome that favors foreclosure on a property. Industry watchers have expressed concerns that the relative resilience in real estate values in the city could actually work against homeowners.
At the opposite end of the spectrum are cities such as Las Vegas and Detroit where property values have dropped as a much as 80%. These are areas where the net present value tests favor mortgage loan modifications but homeowners are walking away, forcing the properties back to the investors.

The next issue for investors wishing to foreclose is whether they can actually sell properties at auction. In California, approximately 17,000 out of 111,000 foreclosed properties went up for sale at the most recent auctions. Of the 17,000 properties, banks took back 85% of the properties when bids averaged only 59% of the outstanding loan balances. The lack of foreclosure sales across the country has led to a massive backlog of foreclosed properties that are either being kept off the market, put up repeatedly at auction, or for sale to private parties.
With unfavorable outcomes on either side of the net present value test, it’s apparent that investors are deciding not to decide on either action. The advantage of leaving properties in limbo is that they don’t have to be marked to market until action is taken, a necessary concession from Congress granted to investor groups in March. That way they can carry the properties in their portfolios at values that don’t trigger capital requirements. If it all sounds like a house of cards, well, at least it’s house.

About Feldman Law Center

Resources:

The Feldman Law Center can negotiate with your current lender if you are behind on your mortgage & need help. Feldman Law Center is a experienced California …

Feldman Law Center Blog on Trulia

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Feldman Law Center – Unemployment and Foreclosures

2009-08-03T06:48:00.000-07:00

Feldman Law Center - News by Feldman Law Center — Toxic mortgages approved for borrowers that couldn’t afford them may have started the meltdown in mortgages but the current wave of foreclosures is being fueled by rampant unemployment across the country. Evidence of that is now being provided by the acceleration of defaults in mortgages granted to high credit score borrowers, commonly known as prime mortgages. The report of May’s 9.4% unemployment rate is more bad news for lenders and their investors as the biggest sector of the mortgage market is now showing a default rate greater than that of the sub-primes.
The rising unemployment rate, which has increased every month since the first quarter of 2007, is threatening to reverse any of the currently small gains being made in stabilizing the housing market. In many cases, unemployment can trump any mortgage relief effort short of foreclosure due to the fact that the best terms on a home loan modification, for example, are not going to work if the homeowner can’t write a monthly mortgage check to the lender.

Regardless of the type of mortgage, the current default ratios are stunning. In total a record 12 percent of homeowners with a mortgage were behind on their payments in the first quarter, the Mortgage Bankers Association (MBA) said Thursday. The mortgages which started blowing up first, adjustable rate mortgages for sub-prime borrowers are still a significant factor in foreclosures. Today, almost half of all subprime ARMs are past due or in foreclosure. In states like New Jersey, Florida, and New York those rates exceed 55%.

The riskiest tranches of the adjustable subprimes began defaulting en masse in the fourth quarter of 2006, starting a domino effect of sub-prime lender closures leading to the freeze of the credit markets in the third quarter of 2007. The general opinion at the time was that the defaults would be contained to the sub-prime market with the possibility of some spillover to the most marginal of the Alt-A loans. Instead, foreclosures and unemployment began working as mutually re-enforcing factors and defaults climbed the ladder of credit scores, reaching and accelerating defaults in the prime mortgages in the second half of 2008. Six percent of the fixed rate primes are now past due, in default, or foreclosure, an increase of 100% over this time last year. The dynamic between unemployment, foreclosures and their effect on the economy has led to the longest recession since World War II.

Four states, California, Arizona, Nevada, and Florida represent almost half of new foreclosures and carry the highest number of delinquencies in fixed rate prime mortgages. It’s no coincidence that these states carry some of the highest unemployment numbers in the country as well.
The relationship between unemployment and foreclosures now has industry watchers wondering whether the Obama Administration is spending its energy, and funds, on the right target. Their reasoning is that if unemployment continues to grow at the current pace, the “Making Home Affordable” plan won’t matter because homeowners are not going to be able to afford even the best offers for a home loan modification if they’re not working. A better approach, they say, would be for the government to take a regulatory role on the mortgage market, develop an accreditation program for law firms doing home loan modifications, and put their main focus on boosting the economy.

Having negotiated over 500 attorney driven mortgage loan modifications, we realize that each homeowner’s situation is unique and that each modification may require a different approach than the one before it. To that end, we can always call on our 25 years of negotiating, knowledge, and real estate experience to provide the most optimal solutions for each family’s situation. While we are negotiating your mortgage loan modification with your lenders our friendly and compassionate team will keep you updated all the way on how the process is advancing.

Obama’s Consumer Financial Protection Agency by Feldman Law Center

2009-07-31T06:48:00.000-07:00

Feldman Law Center – News by Feldman Law Center — Part of Obama’s plan to overhaul regulation of the mortgage industry, unveiled last week, would create a Consumer Financial Protection Agency to monitor consumer financial products and change the entire process of getting a mortgage. With a stated goal of developing a mortgage process that is as simple as signing up for a retirement plan, the President’s proposal centers on an automatic offering of a “plain vanilla loan” to potential homebuyers. These loans would offer fixed interest rates and 30 year maturities, unless the borrower opts for a loan with riskier terms such as interest only or adjustable rates.

The plan has received vehement opposition from the mortgage and banking industries who say that government-approved mortgages would restrict borrowers’ options, make loans harder to get, and make them potentially more expensive. Powerful trade groups like the American Bankers Association, for example, oppose creating a consumer financial protection agency. Even lobbying groups open to the idea of a consumer-products regulator question whether the government should suggest which mortgages are best for consumers. “We don’t want to stifle innovation, and we don’t want to stifle competition,” said John Courson, president of the Mortgage Bankers Association.

One thing that would definitely be restricted, and one of the main factors behind these groups’ opposition to the plan, will be the potential commissions that mortgage brokers can charge when they sell a mortgage. For example, administration officials want to curb the fees that brokers and lenders receive tied to inflated mortgage rates. Brokers argue the incorporating those fees are a way for borrowers to amortize the costs of a loan without having to come up with thousands of dollars in closing costs. Another aspect of the plan would link compensation to whether the borrower ends up defaulting on the mortgage. “There’s no reason that we should have to assume that risk,” said Marc Savitt, president of the National Association of Mortgage Brokers. The group’s stance is that while a mortgage broker can facilitate a loan, the ultimate approval for the mortgage comes from the lender.

Mortgage brokers’ fees were typically highest on the most creative and dangerous of the mortgage varieties. With those mortgages a thing of the past, volume, commissions, and their share of new business has dwindled. Mortgage brokers’ share of new loans has dropped from a high of 60% to the current 20%, on much lower volume. Fixed rate mortgages have increased from a low of 50% of the total of new loans originated in 2004-05 to 95% today.
As the plan stands now, the newly created agency would approve a set of mortgages including fixed and adjustable rate mortgages. Approval for vanilla mortgages would be similar to the “prime mortgage” approval process. Potential home buyers could still get mortgages outside of the government approved versions but disclosure of risks and dire warnings will accompany them.
Supporters of the new regulatory agency say that it is needed as much to protect borrowers from themselves as from predatory lending practices. Many borrowers went through the process of getting their mortgage without ever taking the time to understand exactly how the loans they were applying for worked and where the risks were. Still, previous Congressional efforts to regulate the mortgage industry have consistently broken down over the years, even on simple issues such paperwork reduction, so the fight could be long, drawn out, and years in the making.

About Feldman Law Center
The Feldman Law Center is one of California’s top loan modification companies, providing excellent service to our clients and is completely focused on keeping everyone one of our clients in their homes. Our loan modification experts work tirelessly to provide every homeowner we work with the information, guidance and support they need to modify their mortgages and keep the homes they’ve worked to buy.

About Loan Modifications
If you’re unfamiliar with what a loan modification is, a mortgage loan modification is quite possibly the most effective tool you can utilize if you are behind on your mortgage, and are in the midst of a financial hardship, in order to save your home from interesting foreclosure. A loan modification is literally is a process where the terms of a mortgage are modified outside the original terms of the contract agreed to by the lender and borrower (i.e mortgagor and mortgagee). In general, any loan can be modified. The Feldman Law Center knows every law in California (and the country) that may be able to keep you in your home. Lenders would rather renegotiate the terms of your loan, and possibly even negotiate a principle reduction, than let the house go into foreclosure.

With years of experience negotiating with lenders, as well as years of experience keeping people in their homes, the Feldman Law Center is one of the most experienced loan modification firms in all of California. To learn more about loan modification programs and loan modification process visit Feldman Law Center at www.feldmanlawcenter.com or call 800-588-0425.

Mortgage Investors Seek a Taxpayer Bailout – by Feldman Law Center

2009-07-30T06:39:00.000-07:00

Feldman Law Center – News by Feldman Law Center

After months vehement opposition to most of what the Obama administration has tried to push forward to help struggling homeowners, mortgage investors have thrown their support behind one of the biggest failures of the Bush Administration. The Federal Housing Administration’s Hope for Homeowners (H4H) program, estimated at its outset to be able to help 400,000 homeowners, only originated one new loan.

As he Obama Administration tried to breathe life back into H4H, the mortgage investors saw some potential and started coming around. Part of what they liked was taxpayer money bailing them out of bad investments. The spin on H4H is that it aims to ease a struggling borrower’s debt burden by allowing for a principal reduction to bring a homeowner to approximately even between the size of the mortgage and the value of the home. The mortgage investors would forgive some of the borrower’s debt as part of the principle reduction and then get cashed out by receiving a check from Treasury for something less than the home’s current value.

Being able to roll up to the government sponsored trough and cash out with more taxpayer dollars is, by far, the best option presented to the investors since the bubble started popping in 2006. H4H will allow them to cash out of delinquent mortgages, convert a liability into cash, get a defaulting bond off the books, lick their wounds, and move on. Under the plan, taxpayers will become the new investors in residential real estate, at a time when professional investors are either fleeing or sitting on their hands waiting for the bottom to fall out of the market.

The Obama Administration’s Making Home Affordable home loan modification plan has frustrated mortgage investors as they have had to take a back seat in home loan modification process, with their loan servicers in the driver’s seat. The recent passage of a safe harbor bill by Congress in May added salt to the investor’s wounds by granting loan servicers even more autonomy in their loan modification negotiations. Those negotiations basically yield one of two outcomes for the investors: either a lowered interest rate on their bond with the possibility reduced principle, and a longer maturity or a home that’s going into foreclosure. With the small percentage of sales at auctions, foreclosures are building a huge backlog as bids often come in at 60% or less of the mortgage balance. The FHA plan gives them a third option of putting cash in their pockets without having to worry about selling the property.

The recently updated version of the H4H program is simplified, costs less, and has some incentives but, in its current construct, is still a dog that won’t hunt. A bunch of details need to be worked out, like profit splits with taxpayers and lenders, should a participating homeowner sell at a profit. That part is another aspect of the plan the investors love. Being able to participate in profits after cashing out is as good as it gets coming out of a situation as convoluted and costly as the current foreclosure debacle.

Another issue is that H4H breaks a single refi into three mortgages under the original design of the plan, which is probably one of the reasons that it yielded only one mortgage origination the first time around. Scott Simon, from Pimco, likes the FHA plan but knows it still needs work. “Unfortunately there are still too many devils in the current details for it to be widely used,” he said. Investors are hoping that the plan will be streamlined in continued meetings between HUD officials, the Treasury Department, the Federal Deposit Insurance Corp., and the White House.
Under the new design of H4H, homeowners get a mortgage with a smaller balance which is then sold to investors as a 100% taxpayer-backed bond. Ideally the mortgage balance will be reduced enough to give the homeowner an equity position in the home which, combined with lower mortgage payments, would greatly reduce the chance of foreclosure. That conclusion was backed by a recent Fitch rating report which estimated that 65 to 75% of subprime mortgages that were modified will end up going back into default, a huge jump from the current default rate of 50%. When those modifications include a principle reduction the default rate decreases by about 30%, according to the report.

Christopher Mayer, a vice dean and professor of real estate at Columbia University, in a recent interview said that “ …investors realize that H4H isn’t some grand solution and are championing it primarily because they see it as better alternative to the government’s modification program. They see the modifications as delay, delay, delay.”
Mayer supports the safe harbor bill that protects servicers and would like to see loan modifications increase. He doubts that the government’s efforts to subsidize this push for H4H will work out as planned. Seeing the plan for the investor bailout that it is he said, “This is just going to be a morass for taxpayers. Sometimes the best thing to do is foreclose and foreclose quickly. Speed is incredibly important in this business.”

About Feldman Law Center
The Feldman Law Center is one of California’s top loan modification companies, providing excellent service to our clients and is completely focused on keeping everyone one of our clients in their homes. Our loan modification experts work tirelessly to provide every homeowner we work with the information, guidance and support they need to modify their mortgages and keep the homes they’ve worked to buy.

About Loan Modifications
If you’re unfamiliar with what a loan modification is, a mortgage loan modification is quite possibly the most effective tool you can utilize if you are behind on your mortgage, and are in the midst of a financial hardship, in order to save your home from interesting foreclosure. A loan modification is literally is a process where the terms of a mortgage are modified outside the original terms of the contract agreed to by the lender and borrower (i.e mortgagor and mortgagee). In general, any loan can be modified. The Feldman Law Center knows every law in California (and the country) that may be able to keep you in your home. Lenders would rather renegotiate the terms of your loan, and possibly even negotiate a principle reduction, than let the house go into foreclosure.
With years of experience negotiating with lenders, as well as years of experience keeping people in their homes, the Feldman Law Center is one of the most experienced loan modification firms in all of California. Visit feldmanlawcenter.com for more information.

Limbo and Home Loan Modifications – Feldman Law Center

2009-07-29T06:36:00.000-07:00

Feldman Law Center – News by Feldman Law Center — As the foreclosure backlog grows, a new class of American homeowners as described by a recent article in the Washington Post is growing by the month. These are homeowners that have fallen into a financial limbo where they are badly behind on payments, but their lenders have not yet foreclosed on the home. “I have even begged them for a foreclosure,” delinquent mortgage-holder Charlotte Jensen said. Behind on payments and not willing to wait for an eviction notice, she filed for bankruptcy, and left the home. Nearly a year later, still with no further payments, Bank of America has yet to take back the home.

The total of the backlog is estimated at one million borrowers, sits on top of the one million foreclosure actions that had been taken this year through May. It presents a major obstacle for any kind of rebound or stability in the country’s hard hit real estate markets. It’s also an obstacle than can drive the market lower and then keep it there indefinitely. Banks are currently doing the best they can not to flood the market with foreclosures but each sale, when one occurs, is counted as a “comp” for appraisal purposes. Everything similar gets indexed to the comp until the next sells at a lower price. For evidence of properties being kept off of the market one need only look at one of highest foreclosure states in the country. California had 111,000 foreclosed properties which could have gone to auction in May. Of that number, only 17,000 went to auction and only 2,000 sold. If those kinds of numbers repeat for just a few months, the state will have a backlog that will take years to unwind. Properties that aren’t sold on the way down would most likely be sold as prices stabilize or start to bounce back, which would mute any recovery.
“Lenders are having an immensely difficult time handling the capacity. They are torn between loan modification, short sales, foreclosures, and they are finding they can’t do all these things at once, and do them well, so we’re seeing a lot of things falling through the cracks,” said Howard Glaser, a housing industry consultant and a housing official during the Clinton administration.
Mortgage lenders and investors in that scenario would be looking at more losses as a result of the mortgage crisis. “It just means foreclosure rates are going to keep rising,” said Patrick Newport, an economist for IHS Global Insight. Without an end to the downward spiral in prices any kind of meaningful recovery in the economy will be impossible.

Another issue is the growing conflict of interest between mortgage investors and the companies that service the loans for them. In many cases, what is good for the servicers is bad for the investors and vice versa. For instance, in a home loan modification versus foreclosure situation, the servicer will favor the modification because it keeps payments and fees they can charge on them alive. The mortgage investors, seeing the potential for a decrease in cash flow as a result of the modification, will favor foreclosure as a means of getting their money out of the deal. The resulting stalemate can cause a house to sit in limbo while the servicers and lenders decide a course of action. For the homeowners in the situation, the stalemate can be beneficial as it allows them to stay in the house but the stress of knowing that an eviction can come at any time is tough to deal with.

While some of the backlog reflects the inability of lenders to keep up with the sheer volume of delinquent properties, another reason is an intentional slowdown in the pace of foreclosures as government and industry try to work with borrowers who want to stay in their homes. Fannie Mae and Freddie Mac, the government-run mortgage financing companies, put a temporary moratorium on foreclosures late last year, some states imposed moratoriums, and many of the country’s largest lenders voluntarily participated as well. The extra time gave lenders time to see how the guidelines of the Obama Administration’s “Making Home Affordable” would work and which borrowers could be helped by modifying their current mortgages under the plan. Many of those moratoriums started expiring at the end of the first quarter of this year, and foreclosures have been setting records on a monthly basis since then.

With potentially millions of foreclosed homes on the market and more coming every day, Prices have been hit across the country. The prices for existing homes fell another 16% in May versus the prices one year prior. The growing backlog of homes in limbo indicates that foreclosure rates are likely to increase dramatically during the second half of this year and into 2010. Some estimates are calling for foreclosures to reach 2.4 million by year end. Bob Bellack, chairman of Zetabid, which auctions foreclosed properties, said “Prices will fall to the point where you have equilibrium, and it won’t reach that until there is no longer this foreclosure overhang.”
Financial firms that carry mortgages or mortgage-backed securities on their books are scrambling to stem past and anticipated losses with any means possible. Whether a sign of desperation or not, mortgage investors have thrown their support behind the Hope for Homeowners plan, a leftover from the Bush Administration which was considered an absolute flop the first time around. Intended to help over 400,000 homeowners at its outset, the plan originated only one loan. If the economy doesn’t turn, and without some sort of government assistance, continued foreclosures will result in continuing rounds of losses for investors.
Being in limbo has allowed some homeowners the time to save money while not making mortgage payments and take action through the home loan modification process to save their homes from foreclosure. In general, however, statistics don’t bode well for homeowners once they start missing payments. According to a March report from NeighborWorks America, a large housing counseling group, 60 percent of homeowners go into foreclosure after missing more than four payments.

Normal protocol is for the foreclosure process to start after the third payment has been missed but now it’s common for a foreclosure process to take nine months or more to get started, said Guy Cecala, publisher of Inside Mortgage Finance. “No one is in a rush, lender-wise, to deal with the property,” he said. “If you have to sell at a loss, why rush?”

Another protocol has lenders writing down the value of the home six months after an owner stops making payments, but the total loss is not recorded until the property is sold in foreclosure, said Mark Zandi, chief economist of Moody’s Economy.com. “Some may feel that the property is worth more than the market can bear at this time, and they are willing to wait until the market improves”, he said. “They don’t want to sell it into a completely depressed market.”
The typical foreclosure process varies by state and has been slowed down by the constant incoming volume. The timeline of the process is also dependent on who actually owns the mortgage and whether a bankruptcy has been filed by the homeowner. One of the biggest issues in the process now is that the phase preceding eviction, sale at auction, isn’t happening. Lenders, considering their workload and the costs of each foreclosure, aren’t eager to start a process which isn’t likely to be seen through to completion so limbo is the next best option.
“During that period, where the property is in limbo, until there has been a sale of the property, the homeowner is still the owner, technically,” said John Rao of the National Consumer Law Center. Despite being seriously delinquent, homeowners can apply for a home loan modification to stay in their homes, even if they were turned down previously. Success after being turned down can be achieved if the homeowner has been hired into a new job, is generating more income, and/or by hiring legal representation to renegotiate the terms of the existing mortgage. The odds of approval are also increasing due to lenders’ reluctance toward taking more properties into foreclosure. Whatever they may have thought about home loan modifications before, at this point they’re a better option than either foreclosure or sitting in limbo.

About Loan Modifications
If you’re unfamiliar with what a loan modification is, a mortgage loan modification is quite possibly the most effective tool you can utilize if you are behind on your mortgage, and are in the midst of a financial hardship, in order to save your home from interesting foreclosure. A loan modification is literally is a process where the terms of a mortgage are modified outside the original terms of the contract agreed to by the lender and borrower (i.e mortgagor and mortgagee). In general, any loan can be modified. The Feldman Law Center knows every law in California (and the country) that may be able to keep you in your home. Lenders would rather renegotiate the terms of your loan, and possibly even negotiate a principle reduction, than let the house go into foreclosure.
With years of experience negotiating with lenders, as well as years of experience keeping people in their homes, the Feldman Law Center is one of the most experienced loan modification firms in all of California.

Visit www.feldmanlawcenter.com or call 800-527-8497 for more information about California loan modifications.

Feldman Law Center – Why Loan Modifications Are Better Than Short Sales

2009-07-28T07:55:00.000-07:00

Feldman Law Center – News by Feldman Law Center — When facing the loss of their house, short sales are a method that some people choose to use in order to stop foreclosure from taking place. This tactic takes place when it seems likely that the bank will lose less money than it would with a foreclosure.

By definition, a short sale means that the home is being sold for less than is owed on the mortgage. In evaluating the pros and cons of a short sale, some of the cons include: having to pay taxes, insurance, and mortgage payments on the property until the house is sold; competing with other bargain basement-priced homes in the area; getting a negative mark on your credit report; losing all of your investment in the property; and the possibility of still owing money towards the mortgage of a home that you no longer own or live in. After dealing with all of these problems associated with a short sale of your house, you still have to find a place for you and your family to live. While a short sale may be one of the options you have, we believe that there are better options out there for you.

If you are facing a similar problem, you should consider a home loan modification. Many California companies offer loan modifications, but not all companies have the benefit of experienced, licensed attorneys. The Feldman Law Center specializes in California loan modifications, which can help you avoid a foreclosure, bankruptcy, or short sale on your home. An attorney can help secure the most advantageous deal for you, your family, and your property.

Loan modifications are one of the best options to choose when facing the loss of your home. When comparing a home loan modification to a short sale, you could potentially avoid all of the cons of a short sale. You would stay in your home, keep the investment you’ve made in the home, and avoid the hassle and expense of completing a short sale and finding new accommodations.

Most California loan modifications include lowering or fixing the interest rate of your mortgage, which means that monthly payments would be stabilized to an amount that is more attainable for you. It can also include reducing the principle balance that you owe or forgiving some of your mortgage payment defaults or missed payments on fees. A modification completed by one of our loan modification attorneys can include any or all of the above features. The main advantage of having an attorney complete the negotiations with a lender is that our attorneys can achieve better results than you can achieve alone, and can achieve them more quickly.

The attorneys of The Feldman Law Center are experienced negotiators of home loan modifications. Our founder, Steven C. Feldman has been licensed by the State Bar of California for over 25 years. Free quotes and consultations are available for you to help you make the most of your current situation. Contact us today and let us help you with your home loan modification.

Visit us at http://www.feldmanlawcenter.com or call 800-588-0425.

About Feldman Law Center
The Feldman Law Center is one of California’s top loan modification companies, providing excellent service to our clients and is completely focused on keeping everyone one of our clients in their homes. Our loan modification experts work tirelessly to provide every homeowner we work with the information, guidance and support they need to modify their mortgages and keep the homes they’ve worked to buy.

About Loan Modifications
If you’re unfamiliar with what a loan modification is, a loan modification is quite possibly the most effective tool you can utilize if you are behind on your mortgage, and are in the midst of a financial hardship, in order to save your home from interesting foreclosure. A loan modification is literally is a process where the terms of a mortgage are modified outside the original terms of the contract agreed to by the lender and borrower (i.e mortgagor and mortgagee). In general, any loan can be modified. The Feldman Law Center knows every law in California (and the country) that may be able to keep you in your home. Lenders would rather renegotiate the terms of your loan, and possibly even negotiate a principle reduction, than let the house go into foreclosure.
With years of experience negotiating with lenders, as well as years of experience keeping people in their homes, the Feldman Law Center is one of the most experienced loan modification companies in all of California.

Feldman Law Center – What to do About Interest Rates?

2009-07-27T06:45:00.000-07:00

Feldman Law Center – News by Feldman Law Center — When people hear about loan modifications, they learn that one of the most common ways to lower your monthly mortgage payments is to adjust your interest rate. For example, if you have an adjustable rate mortgage, you could get your interest rate lowered for some period of time. You could also switch from an adjustable rate mortgage to a fixed rate mortgage, and this way not only would your mortgage payment be cheaper, but you could know what it will be over the long haul.

The challenge is, adjusting your interest rate, or setting your interest rate permanently may not be your best option. It may seem simple, but you could have other choices available to you that you are not aware of. One of the benefits of having a loan modification attorney working with you is that they may be aware of options you are not aware of.

For example, a loan modification does not necessarily have to involve an interest rate adjustment. Other loan modification options involve principal reduction and lengthening the term of your loan. If you get a principal reduction, it could mean that a loan for $500,000 could be lowered to $380,000, which would obviously have a huge impact on your monthly mortgage payments. You could also get the term lengthened, and go from a 30 year mortgage to a 40 year mortgage. An extra ten years would give you an extra 120 months to spread out your payments, which would also lower your monthly mortgage payments.

Interest rates were at an all time low in December, and stayed there for quite a while. However, they’ve gone up and down and recently have reached their highest point in quite a while. This sort of uncertainty is not beneficial to your current situation, especially if you’re facing foreclosure. The federal government has instituted many plans to lower interest rates, including using $600 billion to get more buyers into the market in hopes of stabilizing home prices and reviving the economy. However, the federal government’s effectiveness has gone up and down.
Loan modification attorneys can be a trusted ally in the battle to keep your home. A California loan modification attorney can give you the lowdown on your situation, as well as the many options available to you. While getting an altered interest rate may be to your benefit, it could also be that other options work better for your situation. Lowering your principal balance could be an option, and it would also be a great long term solution. Changing the length of the loan could also be a great long term option, and both of these would lower your monthly payments.

If you are facing a foreclosure, or if you are facing some other type of financial crisis, a loan modification could be your best option. These days, almost everyone is watching the economy, waiting for their own situation to worsen. Unfortunately, these are tough times, but a loan modification attorney could help out quite a bit.

Visit us at http://www.feldmanlawcenter.com/ or call 800-588-0425.

About Feldman Law Center
The Feldman Law Center is one of California’s top loan modification companies, providing excellent service to our clients and is completely focused on keeping everyone one of our clients in their homes. Our mortgage loan modification experts work tirelessly to provide every homeowner we work with the information, guidance and support they need to modify their mortgages and keep the homes they’ve worked to buy.

About Loan Modifications
If you’re unfamiliar with what a loan modification is, a home loan modification is quite possibly the most effective tool you can utilize if you are behind on your mortgage, and are in the midst of a financial hardship, in order to save your home from interesting foreclosure. A loan modification is literally is a process where the terms of a mortgage are modified outside the original terms of the contract agreed to by the lender and borrower (i.e mortgagor and mortgagee). In general, any loan can be modified. The Feldman Law Center knows every law in California (and the country) that may be able to keep you in your home. Lenders would rather renegotiate the terms of your loan, and possibly even negotiate a principle reduction, than let the house go into foreclosure.With years of experience negotiating with lenders, as well as years of experience keeping people in their homes, the Feldman Law Center is one of the most experienced loan modification firms in all of California.

Resources:
Feldman Law Center: Profile – Business Exchange
Feldman Law Center
Feldman Law Center – The New York Times gets it About Half Right
Feldmanlawcenter.com – Feldman Law Center Company News

Feldman Law Center – What Do Higher Taxes Mean for Loan Modifications?

2009-07-24T06:44:00.000-07:00

Feldman Law Center - News by Feldman Law Center -- In today’s unpredictable economy, you can’t take anything for granted. You don’t know if you’ll have a job tomorrow, if you will be asked to take an unpaid vacation, or if the interest rate on your home mortgage will spike. What if gas prices soar? Will a trip to the grocery store for your family’s weekly necessities cost more? So much of the territory that our country, and the world, is venturing into is unchartered.

While we don’t know what the future holds, we can try to plan appropriately for it. How can you prepare yourself for future expenses, save money, or spend less in your current situation? Many wise people are considering these questions now.
In addition to planning for the future, we can also take advantage of the opportunities that we are offered today. One opportunity being offered to many troubled homeowners is a home loan modification.

President Obama’s housing plan involves offering many people a chance to modify their home loans. If a distressed homeowner lives in his or her property, falls within the requirements for the amount they owe, and meets additional criteria, they could be eligible for the government plan. The FDIC even has a “mod in a box” home loan modification program that they are hoping to enlist lenders in taking part in. Even if you don’t take advantage of the government’s specific plans, and are a homeowner in a volatile financial situation, you can still opt to modify your home loan.

With the help of the Feldman Law Center, you can have a better chance at protecting your financial future. You do not know when home loan modifications will start to taper off, how long you will be at your current job, or how your taxes could be changed in the future. If you are concerned about your adjustable rate mortgage, or a potential bankruptcy or foreclosure, you need the help of experienced attorneys on your side.

The federal government as well as many state governments, are talking about increasing taxes. What is the potential fallout of that? Given the uncertainty we are facing now, it is hard to guess what higher taxes might result in. But perhaps homeowners would have to pay higher property taxes, or perhaps additional fees and penalties could be added to home loan modifications.
Debates on the efficacy of taxes, both low and high, are inevitable. Chances are good that tax rates and structures will soon change. Will this be good for your current situation? Will you pay more, or less? Will you be a part of the population paying for the benefit of others, or will you be the beneficiary? Obviously, this depends on many factors. It doesn’t seem prudent to generalize widely about this. Every situation will end up being different.

It might not be a good idea to wait for a loan modification. They are available now. Call the Feldman Law Center today. We specialize in loan modifications and are ready to assist you today.
Visit us at http://www.feldmanlawcenter.com/ or call 800-588-0425.

About Feldman Law Center
The Feldman Law Center is one of California’s top loan modification companies, providing excellent service to our clients and is completely focused on keeping everyone one of our clients in their homes. Our loan modification experts work tirelessly to provide every homeowner we work with the information, guidance and support they need to modify their mortgages and keep the homes they’ve worked to buy.

About Loan Modifications
If you’re unfamiliar with what a loan modification is, a mortgage loan modification is quite possibly the most effective tool you can utilize if you are behind on your mortgage, and are in the midst of a financial hardship, in order to save your home from interesting foreclosure. A loan modification is literally is a process where the terms of a mortgage are modified outside the original terms of the contract agreed to by the lender and borrower (i.e mortgagor and mortgagee). In general, any loan can be modified. The Feldman Law Center knows every law in California (and the country) that may be able to keep you in your home. Lenders would rather renegotiate the terms of your loan, and possibly even negotiate a principle reduction, than let the house go into foreclosure.With years of experience negotiating with lenders, as well as years of experience keeping people in their homes, the Feldman Law Center is one of the most experienced loan modification companies in all of California.

Feldman Law Center – The Specifics of President Obama’s Plan

2009-07-22T06:36:00.001-07:00

Feldman Law Center – News by Feldman Law Center — President Obama’s historic presidency began in the midst of possibly the worst financial crisis since the Great Depression. The housing and real estate markets seemingly jumped off of a cliff, taking with it the financial stability of every other industry. Obama passed sweeping legislation to help homeowners make payments and deal with the financial crisis while staying in their homes. This plan in turn helps lenders who need homeowners to continue making their mortgage payments. A key part of this plan is the loan modification process, which now helps homeowners even more.

The federal government is relying heavily on loan modifications with the Helping Families Save Their Homes Act of 2009 and Making Home Affordable Program. Under these programs, current borrowers who are at imminent risk of default may qualify for a loan modification as long as the immanency of the default is tied to a specific event. By specific event, they mean a pending interest rate increase in your mortgage loan or a demonstrable change in economic situation such as your spouse losing his/her job or a severe medical condition.

Ultimately, the plan centers around the thought that struggling borrowers can stay in their homes as long as they make their monthly payments (regardless of the sharp decline in value). The plan has many backers, including billionaire Warrant Buffet. In a recent letter to shareholders, Buffet wrote “Commentary about the current housing crisis often ignores the crucial fact that more foreclosures do not occur because a house is worth less than its mortgage (so-called ‘upside-down’ loans). Rather, foreclosures take place because borrowers can’t pay the monthly payment that they agreed to pay.”

In the end, regardless of what the cause is for the foreclosures, homeowners are looking for ways to stay in their homes and everyone is hoping that Obama’s plan is the path toward that reality. For homeowners facing foreclosure, struggling to make payments, and overwhelmed by creditor and lender phone calls, having someone they can trust by their side could make a huge difference. During these difficult financial times, California loan modification attorneys are doing their best to be more than just an attorney; they are trying to be a confidante.

A California loan modification attorney can sit down with you and discuss your options and if any new options were opened up under the Obama plan. At the Feldman Law Center, our California loan modification attorney team is up to date with all federal and state laws governing loan modifications. FDIC loan modifications, California loan modifications and more all fall under our jurisdiction. We can help you find the program that’s right for you and your financial situation.

Millions of California residents are investigating California loan modifications as a possible solution to their financial troubles and as a way to avoid foreclosure. If you find yourself in this situation, you should contact a loan modification attorney and get as informed as you can about all the state and federal loan modification programs available to you.

About Loan Modifications
If you’re unfamiliar with what a loan modification is, a loan modification is quite possibly the most effective tool you can utilize if you are behind on your mortgage, and are in the midst of a financial hardship, in order to save your home from interesting foreclosure. A loan modification is literally is a process where the terms of a mortgage are modified outside the original terms of the contract agreed to by the lender and borrower (i.e mortgagor and mortgagee). In general, any loan can be modified. The Feldman Law Center knows every law in California (and the country) that may be able to keep you in your home. Lenders would rather renegotiate the terms of your loan, and possibly even negotiate a principle reduction, than let the house go into foreclosure.
With years of experience negotiating with lenders, as well as years of experience keeping people in their homes, the Feldman Law Center is one of the most experienced loan modification firms in all of California. Visit us at http://www.feldmanlawcenter.com or call 800-588-0425.

Feldman Law Center – Loan Modification FAQs

2009-07-21T06:34:00.001-07:00

Feldman Law Center – News by Feldman Law Center — You may have a number of questions regarding loan modifications and how they can help you avoid foreclosure. Loan modifications have been all over the news lately. President Obama has passed major, historic legislation giving homeowners more access to loan modifications; the California legislature has also passed legislation promoting loan modifications.

Here are some questions and some answers for loan modifications:

Q: What is a loan modification?

A: A loan modification is an agreement between a lender and a borrower to change the original terms of a loan in order to make payments more affordable. For homeowners, a California loan modification could be a way to stay in their home. A loan modification attorney can be a major asset when trying to get a loan modification.

Q: How can a loan modification be accomplished?

A: There are actually a number of different ways to get a loan modification. The interest rate on a loan can be either lowered temporarily, or permanently set at a lower rate. An adjustable rate could be set to a fixed rate. The term of the loan could be changed, from say 30 years to 40 years. There could be a principal reduction of the loan amount. There are other ways and you could also have any combination of options. All of this is geared towards lowering your monthly payments and making your mortgage more affordable.

Q: How common are loan modifications?

A: As the real estate crisis continues, loan modifications are becoming increasingly common. They have been around for a very long time, but only when many people are in danger of losing their homes does everyone begin to ask questions. Some think loan modifications are a new invention, or a scam, but people with mortgages have been getting loan modifications for quite a while.

Q: Does the federal of California state government play a role in loan modifications?

A: As so many people are suffering due to the economic crisis, President Obama and the California legislature have passed various laws pressuring lenders to offer loan modifications. Lenders are not opposed to loan modifications, especially at a time when so many Americans are facing foreclosure. A foreclosure hurts the banks’ bottom lines, and the industry has already seen hundreds of billions of dollars in financial loss due to the mortgage crisis. California passed a law in 2008 promoting loan modifications, and in early 2009 President Obama wasted no time in helping people get the mortgage loan modifications they need to stay in their homes. With Freddie Mac and Fannie Mae in serious trouble due to foreclosures (both of which are federal entities), it behooves the federal government to act that much quicker in saving people’s livelihood.

As you can see, there is a lot of information out there on loan modifications, and many people are unaware as to whether or not they qualify. If you are facing foreclosure or facing another financial crisis, contact a qualified California loan modification attorney today and get “in the know.”

Visit us at http://www.feldmanlawcenter.com or call 800-588-0425.

About Feldman Law Center

About Loan Modifications
If you’re unfamiliar with what a loan modification is, a loan modification is quite possibly the most effective tool you can utilize if you are behind on your mortgage, and are in the midst of a financial hardship, in order to save your home from interesting foreclosure. A loan modification is literally is a process where the terms of a mortgage are modified outside the original terms of the contract agreed to by the lender and borrower (i.e mortgagor and mortgagee). In general, any loan can be modified. The Feldman Law Center knows every law in California (and the country) that may be able to keep you in your home. Lenders would rather renegotiate the terms of your loan, and possibly even negotiate a principle reduction, than let the house go into foreclosure.
With years of experience negotiating with lenders, as well as years of experience keeping people in their homes, the Feldman Law Center is one of the most experienced loan modification firms in all of California.

Resources:
Feldman Law Center
Feldman Law Center: Profile – Business Exchange
Loan Modification – Feldman Law Center

Feldman Law Center – How Common is Bankruptcy?

2009-07-20T08:21:00.000-07:00

Feldman Law Center – News by Feldman Law Center — Bankruptcy can be a dirty word, and an even dirtier experience. If you are facing a dangerous financial situation where bankruptcy seems like an option, you could be dealing with quite a bit of fear. Part of what leads people to make bad decisions is thinking they are the first and only people to go through difficult financial situations. However, when it comes to bankruptcy, many people have faced these unfortunate circumstances. Loan modification attorneys work with people everyday who are considering bankruptcy as an option, thinking that bankruptcy will help them keep their homes.

Most recently, former pro bowl quarterback of the Cleveland Browns Bernie Kosar declared bankruptcy. After donating millions to charity, lending tens of millions of dollars to friends and family and going through a messy divorce, Kosar finally had to succumb to the financial pressures. Kosar has been a successful businessman, a skilled athlete and more. Yet, in the midst of his success, financial troubles haunted him. Many people make a great deal of money over their lives, yet they still face difficult financial situations. Kosar still has to watch over his daughter, try to keep a roof over their heads and figure out the next steps in his life. Declaring bankruptcy can impact someone in ways they never though of, and Kosar is going through those challenges. Getting a loan is difficult, getting a reasonable interest rate is impossible, and it can even impact your career.

If you are facing foreclosure, you may think that a bankruptcy is the way you should go. Bankruptcy professionals tout the benefits of declaring bankruptcy; however, bankruptcy has various negative impacts on your credit history, your finances and your life. Declaring bankruptcy will stay on your credit report for years, up to a decade in fact. That means that every loan, credit card and line of credit you ever get will be impacted by your bankruptcy.

Bankruptcy is also sold as an option to avoid foreclosure. However, there are much better options to not only stave off foreclosure, but keep your credit in a much better place. A California loan modification could be an alternative to bankruptcy that keeps your credit rating from falling through the floor and your interest rates from going through the roof.

California loan modification attorneys work hard to discover what your options are. Rather than living in a home you think you can’t afford, a loan modification attorney can help you stay in that home for decades and give your family the future (and present) they deserve. Your hard work to buy the home should not have to be ruined by a bad economy or a subprime mortgage loan. With a skilled California home loan modification attorney working with you, the chance to stay in your home and build a better tomorrow is a reality.

Bankruptcy might seem like an option to avoid foreclosure, but all it does is further bury you in a financial hole. A loan modification could be the way you avoid foreclosure and get out of your financial nightmare once and for all.

Visit us at www.feldmanlawcenter.com or call 800-588-0425.

About Feldman Law Center

The Feldman Law Center is one of California’s top loan modification companies, providing excellent service to our clients and is completely focused on keeping everyone one of our clients in their homes. Our loan modification experts work tirelessly to provide every homeowner we work with the information, guidance and support they need to modify their mortgages and keep the homes they’ve worked to buy.

About Loan Modifications
If you’re unfamiliar with what a loan modification is, a loan modification is quite possibly the most effective tool you can utilize if you are behind on your mortgage, and are in the midst of a financial hardship, in order to save your home from interesting foreclosure. A loan modification is literally is a process where the terms of a mortgage are modified outside the original terms of the contract agreed to by the lender and borrower (i.e mortgagor and mortgagee). In general, any loan can be modified. The Feldman Law Center knows every law in California (and the country) that may be able to keep you in your home. Lenders would rather renegotiate the terms of your loan, and possibly even negotiate a principle reduction, than let the house go into foreclosure.
With years of experience negotiating with lenders, as well as years of experience keeping people in their homes, the Feldman Law Center is one of the most experienced loan modification firms in all of California.

Resources:

Press Release – The Feldman Law Center’s Code of Ethics and Practices

Feldman Law Center, Mission Viejo CA 92691
Feldman Law Center: Profile – Business Exchange

Feldman Law Center – Five Steps to a Loan Modification

2009-07-17T06:57:00.001-07:00

Feldman Law Center – News by Feldman Law Center – -If you check the stock market on Monday, people will be saying the market is up and everything is looking better financially. If you check the market on Tuesday, all economists will be in complete agreement that the world is going to end in 48 hours. What does this mean for you? No one, not even the “experts,” have any clue where the economy is going or how long it will take for the country to climb out of this “Great Recession.”

Real estate has been a nightmare for many people as well. One minute the housing markets look great, and yet with unemployment at a 25 year high and climbing, no one has any idea what the future will bring. This affects available homes, available credit, interest rates and more. There is very little sure footing in today’s market, but with a loan modification, you could be closer to security than many other people.

Five Steps

Here are five steps you can take to get a loan modification:

1. Do your homework – Read as much as you can about loan modifications. While at work, while watching the ball game, while you are eating lunch – read and learn about loan modifications. This will only enhance your understanding of the industry and give you a sense of what a loan modification can do for you.

2. Get your ducks in a row – It is important to have your financial paperwork in order to get the mortgage loan modification that is going to work for you. That means tax returns, pay stubs, bank slips and more, all from the last few years. A bank is going to want to see your financial history, as well as your current financial situation in order to make a decision.

3. Talk to your spouse – You cannot get a home loan modification without having the assistance and agreement of your spouse. While your financial situation may be dire, you must work together in order to make this happen.

4. Find a loan modification company – You can always attempt to get a loan modification on your own, but having a highly qualified loan modification attorney working with you might be the necessary help you need. Knowing how to fill the application out, how to file the paperwork, how to organize the communication between your side and the lender and much more can all be helped by a loan modification attorney. You wouldn’t go to court without an attorney, so do not try getting a loan modification without an attorney.

5. Calm yourself – It is important to be patient and understanding with yourself and your situation while trying to get a mortgage loan modification. It can be very easy to overreact and lose your calm. In fact, more marriages end because of financial troubles than for any other reason. So, giving yourself, your spouse and everyone else around you some slack will keep your relationships and your life in a good place.

Contact a loan modification attorney today, and begin the process of staying in your home.

Having negotiated over 500 attorney driven loan modifications, we realize that each homeowner’s situation is unique and that each modification may require a different approach than the one before it. To that end, we can always call on our 25 years of negotiating, knowledge, and real estate experience to provide the most optimal solutions for each family’s situation. While we are negotiating your loan modification with your lenders our friendly and compassionate team will keep you updated all the way on how the process is advancing.

Resources:

Press Release – The Feldman Law Center’s Code of Ethics and Practices

Feldman Law Center – The Cream Rises in Loan Modifications

Feldman Law Center – Ten Tips for a Successful Home Loan Modification

Feldman Law Center – Saving Thousands with a Loan Modification – Debt Settlement Combination

Feldman Law Center – Mission Viejo, CA, 92891 – Citysearch

Feldman Law Center – The New York Times gets it About Half Right

Feldmanlawcenter.com – Feldman Law Center Company News

Tags: mortgage loan modification, loan modification companies, home loan modification, loan modification agreement, loan modification company, hardship loan modification, California loan modifications, fdic loan modification, home loan modifications, loan modification programs, loan modification advice, loan modification help, loan modification process

Feldman Law Center – Harvard’s Study, Citi’s Recommendations and Home Loan Modifications

2009-07-16T06:40:00.000-07:00

Feldman Law Center – News by Feldman Law Center — A new report from Harvard’s Joint Center for Housing Studies indicates that if there is to be any stabilization in the housing market, it will be at “…extremely low levels that will make the climb up all that more difficult.” Muting any of the recent news in the steadiness of new construction and sales are housing price declines, a record level of foreclosures, rising interest rates, and a shrinking job market. Summing up the study, Nicolas P. Retsinas, Director of the Joint Center said, “Although there are some signs of improvement or at least steadiness in new construction and sales, housing starts stand near 60+ year lows and any life in home sales is coming from distressed foreclosure sales, temporary first-time buyer tax credits, and low interest rates that moved higher in recent weeks.”

Sounding like they were trying to find anything at all possible to spin to the positive, the center was optimistic about the coming of age of the “echo baby boom”, counting on the largest generation in American history to “refuel demand for housing of all types”. Considering that the EBB’s are witnessing the meltdown firsthand, it’s hard to make a convincing argument that the collective will be urgently buying real estate any time soon.

Separately Roger Orf, CEO of Citigroup Property Investors, was calling for governments to force banks to sell their foreclosed properties in a process he dubbed “creative destruction”. Orf favors an immediate clearing of the deck in terms of toxic properties as opposed to the malaise of a gradual unwinding of assets. Orf doesn’t expect fully functioning property lending markets to return before 2011, by when he hoped banks will have completed repair of their capital bases through a wave of real estate sales. The amount of damage to real estate prices as a result of Mr. Orf’s proposal is unknown but when the government forced savings and loans to sell their junk bond portfolios in the early 90’s prices dropped by up to 85% on bonds that were paying interest and backed with solid financials. In that instance, buyers simply stepped aside and let bond prices plummet to levels that carried no risk for the buyers.

What both reports signify is that the need for home loan modifications will continue for the next few years as prices either stabilize or drop and interest rates on mortgages continue to reset and recast. With a relatively small number of reluctant and extremely careful new homebuyers the lenders, servicers, and investors behind today’s mortgages could become much more interested in getting loan modifications completed, especially if a modification is the only way to generate cash flow from a property in a portfolio. While it’s unlikely that Mr. Orf’s proposition ever comes to pass, the foreclosure of properties will become less desirable if more buyers don’t materialize or if the value of REO’s at the banks continues to decrease.

With over six hundred completed loan modifications The Feldman Law Center proven home loan modification process can help homeowners to either avoid or stop foreclosure proceeding. If you are struggling with your payments and worried about the possibility of foreclosure, call The Feldman Law Center at (800) 527 8497. Take the first step toward regaining control of your mortgage payments today.

Having negotiated over 500 attorney driven loan modifications, we realize that each homeowner’s situation is unique and that each modification may require a different approach than the one before it. To that end, we can always call on our 25 years of negotiating, knowledge, and real estate experience to provide the most optimal solutions for each family’s situation. While we are negotiating your loan modification with your lenders our friendly and compassionate team will keep you updated all the way on how the process is advancing.

Tags: mortgage loan modification, loan modification companies, home loan modification, loan modification agreement, loan modification company, hardship loan modification, California loan modifications, fdic loan modification, home loan modifications, loan modification attorney, loan modification programs, loan modification advice, federal loan modification law, loan modification help, Principle Reduction, loan modification process

Feldman Law Center – The Four Road Blocks That are Slowing Loan Modifications

2009-07-15T06:59:00.000-07:00

Feldman Law Center – News by Feldman Law Center — Hope and optimism emanating from the announcement of the Obama Administration’s “Making Home Affordable” plan have been replaced by the cold reality that the program has gotten off to start deemed by industry watchers as “anemic”. After almost four months since President Obama first announced the $75 billion mortgage rescue effort, the administration continues to tweak the program in an attempt to reach its originally stated objective of saving up to 5 million homeowners from foreclosure. Standing between the anemic start and lofty goals of the program are four roadblocks:

1) Overloaded loan modification processors – While the specifics of the plan were released in the first week of March, lenders couldn’t start handling applications until systems were re-programmed and processors were brought up to speed, which took an additional four to six weeks. Processors were immediately buried with stacks of applications that had been accumulating during the conversion to the new guidelines. Participants in the process report that servicers are still digging out from the initial rush as applications continue to flood their desks. Troubled borrowers, many backed up against the possibility of foreclosure, have become increasingly frustrated to the point where they have abandoned the process to retain their own legal assistance. JP Morgan Chase spokesman Tom Kelly recently said of the ramp-up, “It’s an enormous task. We’re moving quickly, although not as quickly as an individual might wish.”

2) Investors – The massive sums of money that supported the real estate/mortgage boom came from investors on Wall Street, pensions, and other institutions. Servicers say those investors are now balking at some of the terms being presented when a loan needs to be modified. The net present value test, a little known aspect of the plan, allows for a calculation to determine whether the greater return for investors will be achieved via modification or foreclosure. In the modification versus foreclosure decision, investors have been threatening lawsuits against servicers when the servicers are deemed to not be acting in the best interests of their investors. The threatened legal action adds another layer to the mortgage loan modification process and can draw out the approval process even more. The “safe harbor” bill recently passed by Congress was intended to alleviate that logjam by protecting servicers from investor lawsuits but it’s likely that lawsuits will arrive on the servicers doorsteps anyway, safe harbor or not.

3) Lenders – Lenders are caught in a three sided bind between the above mentioned borrowers/investors and their own capital structure. No longer required to mark their loans to market, they can carry the value of the loans in their own portfolios at values they can rationalize, whether factual or not. Loan modifications could generate reviews of portfolio values, and nobody wants to go there in the current environment.

4) Unemployment – According to John Taylor, head of the National Community Reinvestment Coalition, “Unemployment is becoming a bigger factor than almost anything.” When sub-prime mortgages started blowing up it was attributed to the risks inherent in lending to lower quality borrowers. Increasing unemployment, in addition to taking down the lower quality borrowers, is now hitting prime mortgages. In fact, primes are now going into default at a much faster rate than sub-primes as previously solid borrowers are now being affected by the contracting economy.

Of the four roadblocks, the toughest barrier is unemployment due to the fact that, regardless of credit scores, if a homeowner doesn’t have a job a loan modification isn’t going to help. Short sales, cash for keys, or foreclosure become the next options. At that point every side of the three sided bind ends up on the losing end.

Resources:

Press Release – The Feldman Law Center’s Code of Ethics and Practices

Feldman Law Center – The Cream Rises in Loan Modifications

Feldman Law Center – Ten Tips for a Successful Home Loan Modification

Feldman Law Center – Saving Thousands with a Loan Modification – Debt Settlement Combination

Feldman Law Center – Mission Viejo, CA, 92891 – Citysearch

Feldman Law Center – The New York Times gets it About Half Right

Feldmanlawcenter.com – Feldman Law Center Company News

Having negotiated over 500 attorney driven loan modifications, we realize that each homeowner’s situation is unique and that each modification may require a different approach than the one before it. To that end, we can always call on our 25 years of negotiating, knowledge, and real estate experience to provide the most optimal solutions for each family’s situation. While we are negotiating your loan modification with your lenders our friendly and compassionate team will keep you updated all the way on how the process is advancing.

Tags: mortgage loan modification, loan modification companies, home loan modification, loan modification agreement, loan modification company, hardship loan modification, California loan modifications, fdic loan modification, home loan modifications, loan modification attorney, loan modification programs, loan modification advice, federal loan modification law, loan modification help, Principle Reduction, loan modification process

Feldman Law Center – Bob the Homeowner versus Net Present Value

2009-07-14T07:51:00.000-07:00

Feldman Law Center – News by Feldman Law Center – A little known aspect of the Obama Administration’s “Making Home Affordable” plan is the “Net Present Value” test which essentially determines whether a loan modification or a foreclosure and sale will provide a better return for the investors behind the mortgage in question. The calculation takes the proposed monthly payment in a home loan modification and multiplies it over the life of the loan (payment x 12 months x 30 years). If that total comes in above what a sale and foreclosure would yield, the calculation would favor a modification. If it falls short, the calculation would lean toward foreclosure and sale.

Foreclosures in many scenarios will favor the investors while a modification often works to the advantage of the servicer. For the investor, a foreclosure and subsequent sale may result in a loss of principle but money coming back to the investor can be re-invested in other vehicles which can provide yield and returns. The disadvantage for the servicers is that, without monthly payments from the property, they lose the fees they were able to charge the investor for handling the payments, billing, and communication with the homeowner. A loan modification, on the other hand, benefits the servicer by keeping the payment stream, and the fees they can charge on it, alive. The modification hurts the investor by forcing a mark to market valuation which reflects the loss on the mortgage (also known as a haircut) due to a lower interest rate and, if applicable, a reduction in principle.

The third party in the game is the homeowner (Bob) applying for the loan modification. It’s likely that the homeowner has heard of “Making Home Affordable” and is very aware of the 2% interest rates that were part of the headlines generated by the plan. Naturally, that’s the rate he wants. Unfortunately, getting Bob a 2% interest rate is not in the interest of either the investor or the servicer of his mortgage. For the investor, the lower the interest rate goes the bigger the haircut. Memorializing it in a modification will turn a theoretical haircut into an actual loss on the books. For the servicer, an interest rate at that low level can push the NPV score to a point where the test favors foreclosure over modification. If Bob’s property isn’t considered a lost cause it’s extremely unlikely that he’s going to see anything close to that 2% rate.

One of the other variables is Bob’s commission based income. His payments are going to be capped at 31% of his average monthly income, which has dropped considerably. In fact, it’s dropped so much that even by maxing his payment out at 31% of his monthly pay he falls below the estimated foreclosure and sale score. Conditions dictate foreclosure according to the net present value test.

The investor, seeing a score that clearly calls for foreclosure takes a look at sales statistics for Bob’s town and his neighborhood. Nothing is moving and foreclosure backlogs are growing. Average bids at auctions are coming in at less than 60% of the loan amount. Less than 2% of foreclosed houses are selling at auction. The estimate on what the property can realize in a foreclosure and sale is way too high for current conditions. If the house sells, and it’s a big if, it won’t be for anything near the price used in the NPV calculation. The investor decides to pull back on the foreclosure due to the regular hits he’s already taking in his portfolio and his aversion to putting another property into the portfolio. The pullback on the foreclosure doesn’t mean he’s going to allow for a modification, however. There’s a haircut waiting with the modification as well. This property is going to sit in limbo while things work themselves out.

There won’t be any communication regarding this stalemate between Bob, the servicer, or the lender. From Bob’s point of view the servicer’s people aren’t responsive and aren’t calling him back. The truth of the matter is that the servicer’s processors know as much about Bob’s situation as Bob does; not much. The sides settle in to the day to day of nothing happening which stretches to months.

The commentary from homeowners that have tried to modify their mortgages under the guidelines of Making Home Affordable runs along a thread very similar to that of our theoretical Bob. While much of the delay can be attributed to overload, staffing, and training issues at the lenders and servicers, the stalemate between servicers and their investors is bogging things down as well. The Safe Harbor Bill, passed by Congress in May, was aimed directly at this standoff. Its main objective was to remove the threat of lawsuits filed by investors when they felt that the servicers were acting on their own best interests in approving loan modifications.

While there may be a conflict of interest currently, neither side wants to go to war over this issue. Despite the increased autonomy given the servicers, it’s likely that they will still want to be on the same page with investors to preserve long standing relationships that have worked well over time. It therefore looks like limbo, status quo, and homeowners waiting for a knock on the door will rule the day and the near term.

Those homeowners seeking to avoid this quagmire would be best served to hire legal representation familiar with the process to either navigate the Making Home Affordable guidelines or to modify their mortgages independently from the government program. With over 600 successful mortgage loan modifications negotiated on behalf of their clients, The Feldman Law Center is well suited to guide you through your loan modification. Call them today at (949) 544 8224

About Feldman Law Center
The Feldman Law Center was founded for the purpose of negotiating home loan modifications on behalf of their clients. These negotiations have two major goals; to reduce monthly mortgage payments to a level of affordability for the homeowner and to either stop or avoid foreclosure proceedings. The mission at The Feldman Law Center is to provide the highest level of professional service while delivering the best possible result on each loan modification we negotiate on the behalf of the families we represent.

Having negotiated over 500 attorney driven loan modifications, we realize that each homeowner’s situation is unique and that each modification may require a different approach than the one before it. To that end, we can always call on our 25 years of negotiating, knowledge, and real estate experience to provide the most optimal solutions for each family’s situation. While we are negotiating your loan modification with your lenders our friendly and compassionate team will keep you updated all the way on how the process is advancing.

Resources:

Press Release – The Feldman Law Center’s Code of Ethics and Practices