A Loan Modification is a modification to the terms of an existing loan made by a lender in response to a borrower’s long-term inability to repay the loan. Loan modifications typically involve a reduction in the principal balance, interest rate or an extension of the terms. In some cases a different type of loan or any combination of the three. A lender might not be open to providing a loan modification to a borrower unless they are behind on their mortgage payments at least 4 months. By this time their credit is ruined and the lender or mortgage servicer can profit further by negotiating a forbearance agreement and collecting more fees.
A Loan Modification should be done by a Law Office and will stop foreclosure.
A Law office can use advanced legal techniques to achieve the most aggressive results for the client. An Attorney understands State and Federal laws as well as lending regulations. In some cases of RESPA or TILA violations an Attorney can threaten a recession of the loan or litigation, causing the lender to return ALL fees and interest paid through the loan. A Loan Modification company simply submits a package similar to a loan submission to have the lender review and decision. This DOES NOT achieve the best result for the borrower. In matter of fact it could make matters worse due to the fact one has exposed themselves to the lender without properly evaluating the entire situation. If the lender or broker has misrepresented the terms or worse yet committed bank fraud a Law Office can and should use the necessary means to bring the lender or broker to their knees to modify the loan and forgive some of the principal. In most cases a Real Estate Law Office can stop foreclosure without bankruptcy simply by calling the lender or mortgage loan servicing company and getting a 30 day extension for a loan modification.
Why should you use a Real Estate Attorney and not an Attorney based or Attorney backed Loan Modification Company?
A Law Office that specializes in real estate law can negotiate a loan modification agreement to stop foreclosure and get their client affordable mortgage payments. A loan modification with an attorney is different from forbearance and in most cases a forbearance agreement will require a borrower to bring in 100% of the arrearages. This is usually impossible for home owners already struggling with finances. A forbearance agreement provides short-term relief for borrowers who have temporary financial problems, while a loan modification agreement is a long-term solution for borrowers that normally will reduce the interest rate, change the terms of the mortgage and may reduce principal balance a combination of all three.
Example of a loan modification for an “option ARM” successfully completed from the Feldman Law Center in California.
We have completed the modification on this borrower the following are the terms of the loan modification:
New UPB $842,442.17
Term 40/30
P&I $3,192.29
Escrow $771.05
PITI $3,963.34
Due date 11/01/2008 (1st modified payment due in 2 months)
Maturity date 04/01/2036
Interest Rate 3.149% for the 1st two years, 4.149% for the 3rd year, and 5.149% on the 4th year and for the remainder term of the loan
Contribution $310.00
This client had a 7.50% interest rate and the loan recast to a $6,700.00 monthly payment. As you can see this is a drastic interest rate reduction with no negative amortization.
You may contact the FELDMAN LAW CENTER and request to see the clients actual document or listen to the recorded testimonial!
Loan modification is a term very unfamiliar to homeowners but not for very long. What most people are coming to realize is that losing their home to foreclosure is becoming a real possibility. Home foreclosure in America today is at an all time high and is affecting many homeowners that never believed they could lose their home to foreclosure. Homeowners are feeling the crunch of higher interest rates, fuel costs, and a slowing economy. A loan modification may be the only way for a homeowner to save their home. Negotiating with the bank for a modification of your home loan can be an overwhelming process for many homeowners. Major lenders such as Countrywide bank, Indy Mac bank, Wells Fargo, Bank of America, WAMU, New Century, Quicken Loans, Aurora, Aegis, EMC Mortgage, CITI Mortgage, Chase Bank, are overwhelmed with defaults and foreclosures. That is why retaining the services of an experienced law firm or real estate attorney rather than a loan modification company is of extreme importance. I have been around the mortgage industry for years and now find myself in the mix of the mortgage mess with an Option ARM loan that is due to explode in September.
The Mortgage Meltdown has hurt our entire economy as many families are facing foreclosure due to toxic mortgages and declining property values. California, Florida, Nevada, Arizona homeowners are the main sufferers as well as many of the Midwestern and east coast states. New mortgage laws to protect home owners are now in affect. If you want to find mortgage law information got to www.feldmanlawcenter.com or for foreclosure laws in your state you can simply Google your city and state foreclosure laws or find them on the Feldman Law Center web site. There is a wealth of information about loan modifications and other real estate services. In some cases the home owner may chose not o keep their home. In these instances an attorney can offer a deed in lieu of foreclosure and get a settlement offer from the lender. The truth is these people can hire an Attorney to represent them with their lender and save their home and their hard earned credit. Lenders are facing record losses and may not be willing to help home owners unless they are forced to listen. A letter of representation from a licensed real estate attorney seems to get their attention fast. You can find Mr. Steven Feldman at http://feldmanlawcenter.com/home.html
Showing posts with label loan modification scams. Show all posts
Showing posts with label loan modification scams. Show all posts
Wednesday, February 18, 2009
Feldman Law Center - Avoid Foreclosure
Real estate markets are slowing. Interest rates are trickling down and the phones are ringing off the hook at Feldman Law Center. Home owners are in a panic and fear not selling their home and the inability to refinance adjustable rate mortgages will cause default or foreclosure. Their only hope may be to modify their existing mortgage with a Mortgage Loan Modification. Unfortunately, mortgage servicing companies and lenders are overwhelmed with foreclosures and loss of consumer confidence.
The number of people asking for appointments to talk about Loan Modification Advice, Loan Modification Programs and potential legal recourse with their lender or mortgage broker is increasing daily. Most home owners with adjustable-rate loans are in fear of losing their home not to mention their hard earned credit.
Nearly a quarter of the nation's mortgages have rates scheduled to reset this year or next, which means higher payments for millions of homeowners. How many will default isn't known, but the Mortgage Bankers Association, which tracks delinquencies and foreclosures, expects an increase through the end of this year.
If you're in danger of falling behind on your mortgage, or if you're already delinquent, it's important to know what's ahead and what your options are. Usually, the faster you move, the more options you will have. We have saved many borrowers homes that were previously turned down for loan modification help because they were not in foreclosure.
The timeline
30 days: Your troubles actually start as soon as you miss a single payment. Lenders may not contact you until you've skipped a second payment, but most will report the first late payment and every subsequent delinquency to the credit bureaus. Even a single late payment can devastate your credit score, the three-digit number that lenders use to help gauge your creditworthiness. Each subsequent "late" further decreases your score, making it more difficult and expensive to get a loan or a refinance that might help your situation. In addition, lenders typically tack on late fees of 5% or so for each missed payment. These fees can be forgiven with a Loan Modification agreement.
90 days to one year: Eventually, if the payments aren't made, the lender will file a "notice of default" with a local courthouse and send you a letter saying that the foreclosure process will start unless you make good the missing payments. Unfortunately for most the reinstatement of the loan is found to be unaffordable thus complicating and deteriorating the communication between the home owner and mortgagor.
The Solution
A Loan Modification to the existing mortgage allowing the borrower to get back on track is the most sensible solution. Loan Modifications should not be confused with forbearance agreements offered by your lender. A forbearance agreement is typically a short term solution allowing the borrower to reinstate the loan and repay the rearranges. A Loan Modification is a permanent change to the interest rate and terms of the mortgage offering the borrower a loan term solution. Currently we are seeing Loan Modifications negotiated below current market interest rates. When applying for a Loan Modification with your lender it’s a good idea to hire a loan modification attorney to get the best results.
Lenders Loan Modification Agreement will always advise you to consult a attorney prior to signing as the loan terms may be permanently changed.
Warning Loan Modification Scam
Loan Modification Companies are soliciting troubled home owners making guarantees and boasting high success rates. These Loan Modification or Loss Mitigation companies are doing nothing more than getting an unaffordable short term forbearance agreements. They cannot help you and should not take your money if you are in foreclosure. They cannot help you if you are not behind in mortgage payments. If you are in fear of falling behind on your mortgage payment or facing foreclosure, Loan modification help with a licensed attorney is your best option. A Law Office that specializes in lender negotiations will certainly get the best results. A licensed attorney can use any leverage available to negotiate with your lender and get a Loan Modification that will save your home. The Feldman Law Center has earned the reputation as a reliable Law Office that gets the job done. Some Loan Modification and Stop Foreclosure Companies are running scams on home owners facing foreclosure. Please contact your states regulatory agency for details on the Loan Modification process with a Loan Modification Company.
The Feldman Law Center is owned and operated by Steven C. Feldman, attorney at law. Mr. Feldman has been a member of the California State Bar since 1983 and is well versed in federal loan modification law. To find out more information about the loan modification process visit http://www.feldmanlawcenter.com/
The number of people asking for appointments to talk about Loan Modification Advice, Loan Modification Programs and potential legal recourse with their lender or mortgage broker is increasing daily. Most home owners with adjustable-rate loans are in fear of losing their home not to mention their hard earned credit.
Nearly a quarter of the nation's mortgages have rates scheduled to reset this year or next, which means higher payments for millions of homeowners. How many will default isn't known, but the Mortgage Bankers Association, which tracks delinquencies and foreclosures, expects an increase through the end of this year.
If you're in danger of falling behind on your mortgage, or if you're already delinquent, it's important to know what's ahead and what your options are. Usually, the faster you move, the more options you will have. We have saved many borrowers homes that were previously turned down for loan modification help because they were not in foreclosure.
The timeline
30 days: Your troubles actually start as soon as you miss a single payment. Lenders may not contact you until you've skipped a second payment, but most will report the first late payment and every subsequent delinquency to the credit bureaus. Even a single late payment can devastate your credit score, the three-digit number that lenders use to help gauge your creditworthiness. Each subsequent "late" further decreases your score, making it more difficult and expensive to get a loan or a refinance that might help your situation. In addition, lenders typically tack on late fees of 5% or so for each missed payment. These fees can be forgiven with a Loan Modification agreement.
90 days to one year: Eventually, if the payments aren't made, the lender will file a "notice of default" with a local courthouse and send you a letter saying that the foreclosure process will start unless you make good the missing payments. Unfortunately for most the reinstatement of the loan is found to be unaffordable thus complicating and deteriorating the communication between the home owner and mortgagor.
The Solution
A Loan Modification to the existing mortgage allowing the borrower to get back on track is the most sensible solution. Loan Modifications should not be confused with forbearance agreements offered by your lender. A forbearance agreement is typically a short term solution allowing the borrower to reinstate the loan and repay the rearranges. A Loan Modification is a permanent change to the interest rate and terms of the mortgage offering the borrower a loan term solution. Currently we are seeing Loan Modifications negotiated below current market interest rates. When applying for a Loan Modification with your lender it’s a good idea to hire a loan modification attorney to get the best results.
Lenders Loan Modification Agreement will always advise you to consult a attorney prior to signing as the loan terms may be permanently changed.
Warning Loan Modification Scam
Loan Modification Companies are soliciting troubled home owners making guarantees and boasting high success rates. These Loan Modification or Loss Mitigation companies are doing nothing more than getting an unaffordable short term forbearance agreements. They cannot help you and should not take your money if you are in foreclosure. They cannot help you if you are not behind in mortgage payments. If you are in fear of falling behind on your mortgage payment or facing foreclosure, Loan modification help with a licensed attorney is your best option. A Law Office that specializes in lender negotiations will certainly get the best results. A licensed attorney can use any leverage available to negotiate with your lender and get a Loan Modification that will save your home. The Feldman Law Center has earned the reputation as a reliable Law Office that gets the job done. Some Loan Modification and Stop Foreclosure Companies are running scams on home owners facing foreclosure. Please contact your states regulatory agency for details on the Loan Modification process with a Loan Modification Company.
The Feldman Law Center is owned and operated by Steven C. Feldman, attorney at law. Mr. Feldman has been a member of the California State Bar since 1983 and is well versed in federal loan modification law. To find out more information about the loan modification process visit http://www.feldmanlawcenter.com/
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