Monthly Archives: September 2015

Why So Many People Find it Hard to Get a Loan Modification from the Bank

When it comes to getting a mortgage modification agreed by the bank, many people will find that they are rejected, especially when they have been paying their mortgage payments on time. So what are the reasons for this rejection?

Well, investors, banks and lenders only offer people a mortgage so they can make money. Unfortunately, they are a business which is why they will not concern themselves with anything else other than making money. It may sound harsh but as with any business out there today they are only still in business because they make money. It’s not until you understand the reality of this that you will be able to see why you may or may not get a mortgage modification.

Reality check

Now if the bank sees you as a risk of defaulting then you will not get a modified loan, even if you have been making repayments on time, and have been since you first received the mortgage, then there is a slim chance to none. Unfortunately, wanting a lower payment or you don’t want to have less of an income due to over spending, will not be a compelling enough reason for the lender to agree to a modification mortgage.

Although this may be unfair, this is the reality of it so using a loan modification company is one avenue you should seriously consider. They have the expert skills and knowledge to make that impossible goal a reality.

Avoid Foreclosure and get a loan modification with lower payments.

Let LoanModDepot.com find a solution for you. Get Started Today!

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Why Does the Bank Offer Loan Modifications?

Making a change to your loan agreements is called a loan modification. What this does is makes your repayments more affordable, and stops you from defaulting on your loan. The reason that banks offer loan modifications is because it works out cheaper for them to help you than to end up having to chase you for an eventual debt.

Why are loan modifications offered by the bank?

The following are reasons as to why you would be offered a loan modification by the bank.

  • You have stopped making payments
  • If your home could be up for foreclosure
  • They would have to hire someone to collect on the debt you have with them
  • You may declare yourself bankrupt and then they get nothing or very little in return

Your bank does not to have to resort to any of the above, if they offer you a modification on your loan. If the modification is agreed and set in place then your credit will not affected and there would be no financial cost for the bank.

The last thing the bank wants is to manage property, so rather than be left with lots of properties because homeowners can’t keep up with their repayments, the bank looks for an alternative and that just happens to be a loan modification.

So if you feel that you are possibly looking at being in this very same predicament then speak to your bank about the option of a loan modification. It is better to talk to them about it, than ignore it, in the hope that it goes away.

Avoid Foreclosure and get a loan modification with lower payments.

Let LoanModDepot.com find a solution for you. Get Started Today!

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How many months are you behind on your mortgage payments:

Who Your Loan is with Could Make All the Difference

Having your loan with certain companies can have an effect on whether you are more likely to get a loan modification. If you got a “conforming” loan the chance of getting a modification loan is more likely. The reason why this is the case is because government controlled loans such as Freddie Mac and Fannie Mae can absorb any losses, plus they are placed under more pressure to help try and stop foreclosures.

FHA loans

FHA loans are backed by HUD, and if you have one of these loans then you are even more likely to get help modifying your loan. The rules of the FHA state that before foreclosure happens the lender has to try and come to some agreement, and it because of this rule that your odds of getting a modification mortgage is even better. However, with the loan being insured by HUD means that they make the final decision.

Bearing this in mind though, an FHA lender is not allowed to offer a loan modification loan upfront, but as long as the homeowner asks for the mortgage modification first, the lender must try and come to a resolution which the law states they are obligated to do and before foreclosing. This information definitely goes in favor of the borrower, which is something that people are not aware of, and it is because of this that most people give up at the first hurdle.

The same thing applies to anyone with a “sub-prime”, “alt-A” or “portfolio” you are more likely to get a mortgage modification, but only if you fall into certain scenarios.

Avoid Foreclosure and get a loan modification with lower payments.

Let LoanModDepot.com find a solution for you. Get Started Today!

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How many months are you behind on your mortgage payments:

Various Ways to Stop a Foreclosure

There are ways in which to avoid the foreclosure process, which is good news for anyone who is facing the possibility of this. Unfortunately, depending on what options you have available to you not all of them end up in you keeping your home.

The following are a few of the options available.

  • Forbearance Plan
  • Refinance
  • Partial Claim
  • Loan Modification
  • Short Sale
  • Short Refinance
  • Pre-Foreclosure Sale
  • Deed in Lieu Foreclosure

There is also another option but this is something that only the bank would agree to. This is called an interest-only home loan or a shorter-term ARM which will lower the costs of your monthly mortgage. Although, these may sound like a good idea at the time, eventually these loans will reset at sometime in the future and when they do you could find yourself back in the tight spot you were trying to get out of in the first place. However, for the time being getting back on your feet is what you are looking for so these types of loans can help in buying you back some time.

Forbearance Plan – this is a payment plan set up between you and your lender, this plan suspends or eases your payments until you have caught up with your failed payments, therefore bringing your repayments up to date.

Avoid Foreclosure and get a loan modification with lower payments.

Let LoanModDepot.com find a solution for you. Get Started Today!

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What is your Foreclosure/Mortgage Status:
How many months are you behind on your mortgage payments:

Using an Attorney has its Advantages

Getting help with a mortgage is one thing but needing help because your home is on the verge of foreclosure, is an entirely different matter altogether. It is in this instance that many homeowners turn to a modification lawyer, as the success of getting approved for a loan modification is very slim, especially if you have never found yourself in this kind of situation before. Many people will hire a modification attorney as more and more people are finding success with a lawyer, when it comes to getting their request for a loan modification approved.

Advantages of using a modification lawyer

There are always things that you need to cautious about, and using an attorney in a loan modification case maybe one of those things, depending on who you talk to about modification attorneys. As with many things, not everyone will have a good experience and using a lawyer is no different. But while there are disadvantages, there are also advantages to hiring an attorney.

One advantage of hiring a lawyer in a modification case is that they can advise the borrower on the many federal government and state prevention tactics on foreclosure and homeowner-assistance programs there are available today.

Another advantage is that hiring an attorney will mean that they are regulated and how they operate is governed by the state. An attorney has to follow certain rules when it comes to working with debt recovery firms and for profit foreclosure prevention. Therefore, when it comes to being scammed or taken advantage of, the rules, regulations and standards a lawyer has to work to are put in place by associations of the state bar.

Avoid Foreclosure and get a loan modification with lower payments.

Let LoanModDepot.com find a solution for you. Get Started Today!

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What is your Foreclosure/Mortgage Status:
How many months are you behind on your mortgage payments:

The not so Successful Story of HAMP

Although, there is constant talk of loan modifications not being agreed, there are some people who have actually had their loan modifications approved. However, it seems that getting the modification approved is not the only problem facing homeowners today.

It has been found that homeowners are having problems keeping up with their agreed modifications, and suddenly the amount they agreed upon is now too large an amount, and they are unable to afford the payments. Therefore, many of these people’s homes are now being foreclosed on.

Obama Administration

HAMP was created by the Obama administration back in 2009 as a way of saving the millions of borrower’s homes in the wake of the housing collapse. $75 billion was provided and this amount was supposed to help reduce monthly payments to 31% of the homeowner’s income.

The administration estimated at the time, that 4 million homeowners would be helped by HAMP in avoiding foreclosure. However, this has turned out not to be the case and the program has not reached enough Americans who are still struggling, due to a program that has faced criticism and is plagued with delays. Even now homeowners are still making complaints about the denial process and its lack of transparency and also the pace of reviews.

Problems Still Being Faced

Although, there are still many problems with the system which has been put in place, HAMP has looking on the bright side helped almost 6.5 million borrower’s in their fight to avoid foreclosure as of 2009.

So even though HAMP has helped as many homeowner’s as it has, there are still far too many other homeowner’s who are not getting the help that they need in order to keep a roof above their head.

Avoid Foreclosure and get a loan modification with lower payments.

Let LoanModDepot.com find a solution for you. Get Started Today!

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Property Value:
Lender Name:
Loan Balance:
What is your Foreclosure/Mortgage Status:
How many months are you behind on your mortgage payments:

The Loan Modification Process

Going through the loan modification process isn’t something that happens over night. The following steps will help you on your way to hopefully achieving your final goal:

  1. Know your goals – Your current situation will be assessed by a loan modification specialist, and they can then determine which avenue you should realistically be taking
  2. Are you eligible – Your requirements for eligibility will be looked at in full
  3. Provide and look over your documents – which ever mortgage modification specialist looks at your mortgage documents, they will be able to liaise with their legal team about your options, so make sure you have these documents ASAP
  4. Get the loan modification application and your documents submitted – after having your documents reviewed, your application for a mortgage modification will be completed, it is then submitted to the legal counsel of the lender or the lender themselves
  5. Patience is required – the application has to be reviewed so do not expect to hear anything back from your loan specialist for at least a few days
  6. Your application maybe reviewed – the legal team or lender may want additional information from you, to confirm the accuracy of your loan modification application if this is the case then expect the application to take a while longer
  7. The loan modification needs to be negotiated – once the loan modification has been agreed, you are then given the choice as to whether you want to accept their offer or not. Loan modification specialists excel at seeking mortgage relief and this is usually dealt with quickly

Avoid Foreclosure and get a loan modification with lower payments.

Let LoanModDepot.com find a solution for you. Get Started Today!

First Name:
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Property Address:
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Property Value:
Lender Name:
Loan Balance:
What is your Foreclosure/Mortgage Status:
How many months are you behind on your mortgage payments:

The Foreclosure Process Explained Further

Notice of Default

This is something you will receive if your payment is late by 30 days or more, what this notice is telling you, is that you need to make payment or further action will be taken. What the notice will contain is the following:

  • Your name
  • The details of your property
  • The number of days you are late in paying
  • The outstanding amount you owe
  • A statement which indicates you are in default, under the mortgage and note terms which you signed when you bought your home

You may also find that a brief explanation stating that if the default isn’t brought up to date straight away, and that the bank will have no other option other than to take further action, which will include foreclosure. Unfortunately, not all NOD’s are written that friendly, and generally the statement they contain is rather coarse telling the homeowner that they are in default. It will also indicate that the note and mortgage has been accelerated, and you only have X amount of days to pay the arrears.

The Foreclosure Notice

If you still choose not to respond and the bank is not satisfied, then you will eventually get a foreclosure notice. The details within it are:

  • Foreclosure proceedings have been initiated by the bank
  • Your home has been scheduled for sale at an auction
  • It will include the amount you owe the bank
  • What the percentage of the interest is
  • Contact details of the attorney the bank is using

Avoid Foreclosure and get a loan modification with lower payments.

Let LoanModDepot.com find a solution for you. Get Started Today!

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Property Value:
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Loan Balance:
What is your Foreclosure/Mortgage Status:
How many months are you behind on your mortgage payments:

The Final Step in the Foreclosure Process

The Foreclosure Sale and Losing Your Home

The foreclosure sale is the final part of the process, but there are some jurisdictions where this is not always the case. Once your property has had a bid on it at the auction then you automatically lose any rights you had to your home. If no one bids on your property then it automatically goes to the bank by default. Either way you will have to move out or find yourself evicted.

There are some states that have what is called a redemption period, which follows the sale of your property, what this does is gives you the chance to buy your property back. Therefore, depending on what state it is that you live in, if you find yourself in this situation then make sure that you find out if this option is available to you.

The Auction

The bank will set an opening bid, what this amount covers is the amount you owe the bank, so your mortgage and any other penalties and interest that have accrued before the sale began. If at the auction no one places a bid on your property of the asking price or more, then the property automatically transfers over to the bank by default. Otherwise, the highest bidder gets the property.

If you are possibly facing the foreclosure process, then you may decide to experience the process in your local area for yourself. You can find out whereabouts the sales will be held including the dates and times at your county’s register of deeds. If you find that your home is up for auction, attend the sale, that way you will know who purchased your home and if it has actually been sold.

This information is extremely important, as it may come in handy at a later stage if you find that you then have the resources to actually buy your home back, or if for some reason there was a delay in your home being sold.

If this is the case then this will give you the opportunity to get your home back.

Avoid Foreclosure and get a loan modification with lower payments.

Let LoanModDepot.com find a solution for you. Get Started Today!

First Name:
Last Name:
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Phone:
Property Address:
City:
State:
Zip:
Property Value:
Lender Name:
Loan Balance:
What is your Foreclosure/Mortgage Status:
How many months are you behind on your mortgage payments:

Reasons to File a Loan Modification Lawsuit

An eligible homeowner will go through the process of negotiating with their lender what is called a loan modification, if they find that for whatever reason they are unable to keep up with their originally agreed mortgage agreement. A loan modification is a great way in which to reset the payment terms and amount if the homeowner has found themselves in financial hardship. Things such as:

  • Lower interest rate
  • Late fees or arrears can be forgiven
  • You may even be given extra time in which to pay

However, if the loan modification has been put in place and either party the lender or the borrower misuses the process of a mortgage modification then either one of them can face a mortgage modification lawsuit.

Homeowners

If the borrower believes that they have been scammed or unlawfully treated, such as meeting all the requirements and yet still having been turned down for a loan modification, they can follow a process step by step which will enable them to sue individuals or lenders, who they feel they have been defrauded by.

Allegations against the Scammer or Lender

A lender, a financial or legal professional can have allegations brought against them, in a loan modification lawsuit. The following are just some of the reasons why:

  • Your documentation has claimed to have been lost by the bank
  • The initial loan was predatory
  • The contract was breached
  • Your home was lost due to a leaseback scheme which was initiated by the individual or business

Avoid Foreclosure and get a loan modification with lower payments.

Let LoanModDepot.com find a solution for you. Get Started Today!

First Name:
Last Name:
Email:
Phone:
Property Address:
City:
State:
Zip:
Property Value:
Lender Name:
Loan Balance:
What is your Foreclosure/Mortgage Status:
How many months are you behind on your mortgage payments: