Monthly Archives: December 2015

MORTGAGE MODIFICATION

HAMP Modification

Mortgage modification changes the terms of a loan to make the monthly payment more affordable. Changes may be made to the interest rate or to the number of years the borrower has to repay the loan. A mortgage modification may also be called a loan modification, loan restructuring, or workout plan.

Most mortgage lenders are only set up to take your payments, or service the loan. They then forward the payments to the investor that actually owns your loan or note.  Ask if your mortgage lender is only a servicer, and if so, ask them for the phone number to the investor that actually owns your home. Generally, the note owner must approve the loan modification.

What is HAMP?

Making Home Affordable is a federal program that offers qualified homeowners a loan modification to help make mortgage payments affordable. This modification is known as the Home Affordable Modification Program or HAMP.

The Home Affordable Modification Program (HAMP) is implemented through a 2009 Making Home Affordable (MHA) program designed to stabilize the housing market and help struggling homeowners obtain relief and avoid foreclosure. (HAMP) provides eligible borrowers the opportunity to lower their first lien mortgage payment to affordable and sustainable levels through a uniform loan modification process. Both borrowers who are current on their mortgage and those who are behind on their payments are eligible for a modification; however, the borrower must demonstrate that default is looming.

Before you hire a lawyer:

Understand the basics about mortgage modification. Mortgage modification is permanent. Decide if it is worth paying a mortgage lawyer. You have the right to handle the modification negotiations by yourself if you desire.

MORTGAGE LAWYER

A mortgage modification is a change to the original terms of a mortgage. If you think that your mortgage payment is too high and you are having trouble making your payments and are in danger of default, hiring a mortgage lawyer may be worth considering. Many homeowners worry that hiring a lawyer is too expensive; however, there are mortgage lawyers who do pro bono work and nonprofit legal aid programs that offer free or inexpensive services.

The decision to hire a mortgage lawyer may be a matter of time versus money. The average home owner will have to spend several hours a week on the phone or in the lender’s office trying to work out a loan modification. Home owners who don’t have that kind of time may prefer to hire a lawyer for professional help.

The borrower will be required to sign paper work that that authorizes the mortgage lawyer or other representative they’ve hired to speak to the lender about their situation because the lender has a responsibility to protect the borrower’s privacy from unauthorized inquiries. Hiring lawyer just might make the difference between getting your mortgage restructured and losing your home.

Before you hire a lawyer:

Understand the basics about mortgage modification. Mortgage modification is permanent. Decide if it is worth paying a mortgage lawyer. You have the right to handle the modification negotiations by yourself if you desire.

Remember:

Mortgage modification is a complicated field that requires years of experience. This is a complicated area you are discouraged from coming to any firm conclusions too soon. There are many factors that determine the path that is best for you.

MORTGAGE ATTORNEY

mortgage attorney will assess the initial terms of your loan, the value of the modification process, and the actions taken by the lender in servicing the loan. Mortgage litigation allows the homeowner to take the financial institution to court. The homeowner can no longer be overlooked until the institution decides to foreclose. The attorney will provide litigation support giving homeowners their day in court and the chance to resolve their disputes and negotiate on an equal level with their lender.

A mortgage attorney will identify bad acts by the lender such as:

  • Accounting mistakes
  • Hold ups in the modification progression
  • Causing modification ineligibility or decrease in equity
  • Failure to institute a permanent change
  • Continuing with foreclosure while in modification evaluation
  • Encouraging defaulters to fall further behind

A mortgage attorney prepares and files lawsuits when facts show that the lender unnecessarily prolonged the modification process; hurting your equity and credit. They review the loan modification history, the basis of modification delays and modification denials, and whether the lender acted illegally. They will sue your lender by preparing a summary of facts showing the judge the homeowners’ story and by drafting the legal arguments showing how the lender violated the law.

Mortgage attorneys often see a pattern of excessive postponements; lenders losing documents over and over again, bank staff telling you that your fax was not received, putting you on hold for unnecessary periods of time, or simply not returning your calls. Lenders often put off helping or have no intention of helping as they try to stall until it is too late. There is a time limit to sue a lender or financial institution based on the length of the written legal agreement.

MORTGAGE ASSISTANCE

If you are having trouble paying your mortgage and need assistance, you are not alone. Lots of Americans just like you are suffering financial setbacks. Your mortgage lender has ways to help you reduce or suspend your payments until you get back on your feet. Don’t wait. The longer you put off contacting your lender, the further behind you will fall, making it harder to create a plan that works for you.

What to do:

  1. Add up your income and expenses. Look for ways to cut costs. If you can’t find enough to make your payment, decide how much you CAN afford to pay.
  2. Look for your lender’s contact information. It should be on your mortgage statement or in your mortgage payment book.
  3. Have this information ready: Mortgage loan number (account number); Other mortgage paperwork or notices you’ve received recently; Recent pay stubs; Latest tax return; Your list of expenses

Beware of criminals or scammers that charge big fees and promise to get results immediately. You may end up with nothing in the end. Don’t give up; seek assistance right away, even before you miss a payment. Lenders would rather receive partial payment than take possession of a home for which they must find a buyer. Government agencies and non-profit organizations stand ready to help.

Act quickly. Time is an important factor in resolving payment difficulties. Be wary of anyone who tells you not to contact your lender or seek help. Think about a “Plan B” if you can’t keep your home. The most important thing is to address the situation as soon as you have a problem, investigate the various options available regarding mortgage modifications and refinancing and seek help from reputable, qualified advisors.

 

Make home affordable

The Make Home Affordable programs have helped millions of home owners save more than $500 a month on mortgage payments. People in many states are struggling because of soaring unemployment rates or steep home price declines since the housing market downturn.

Get help

Making Home Affordable (MHA) is designed to help you get mortgage help and avoid foreclosure. Programs offered under MHA include:

  • Home Affordable Refinance Program (HARP). Designed to lower your monthly mortgage payments, making them more affordable and sustainable for the long-term.
  • Home Affordable Foreclosure Alternatives Program (HAFA). If you’re current on your mortgage, but have had difficulty refinancing, HARP could provide a solution. Even if you owe more than your home is worth, if your mortgage is owned by Fannie Mae or Freddie Mac, you could save with HARP.
  • Home affordable Unemployment Program (UP). Provides homeowners the opportunity to exit their homes and be relieved of their remaining mortgage debt through a short sale or a deed-in-lieu of foreclosure (DIL). It also provides homeowners with $10,000 in relocation assistance.
  • Federal Housing Administration Short Refinance for Borrowers With Negative Equity (FHA Short Refinance). If you’re up-to-date on your mortgage payments, but owe more than your home is worth, a FHA Short Refinance could get you into a more affordable, more stable, FHA-insured mortgage.
  • Hardest Hit Fund Programs (HHF). Programs in 18 states and the District of Columbia designed to provide assistance to struggling homeowners through modification, mortgage payment assistance, and transition assistance programs.

Before you apply

First prepare what you will need. You will need to provide your mortgage company with information about your mortgage and finances. The exact information required will depend on your specific situation and your mortgage company. Nevertheless, you should be prepared to provide information about your income, expenses, assets, debt and hardship.

LOAN MODIFICATION

A loan modification means you are re-structuring the current loan’s term, interest rate, and/or payments. At times, a portion of your principal balance may even be forgiven. Loan modification is sometimes referred to as a mortgage modification, loan restructuring, or a workout plan. The modifications are designed to give you the chance to stay in your home and avoid foreclosure.

How do I apply?

The first step is to call your lender. Ask to talk with someone about a loan modification. Keep detailed notes of exactly who you talk to during each phone call. Use a folder or binder and keep copies of everything you receive from the bank or servicer. Gather all the documents the lender asks for and keep records of your expenses. Be sure to put your request in writing after the initial phone call.

Who can qualify?

Qualified applicants are homeowners that will be able to show adequate income to cover the newly adjusted monthly payments. Inconsistent income or very low income could mean your request for modification may be denied. General guidelines for payment amount should be less than or equal to 30% of your monthly income.

What can I expect?

Loan modification is not difficult, however, it may be time consuming and tedious. Be persistent with your mortgage lender. The process could take several months to complete. Once the final paperwork is filed, you can expect to be put on a trial period for a few months. After the trial period is over, the modification will become permanent. During the trial period you cannot sell your home.

LOAN MODIFICATION COMPANY

LOAN MODIFICATION LAWYER

FORECLOSURE HELP

If you are having trouble making your mortgage payments, take heart. You are not alone. The early 2000 housing boom led to record homeownership, however, a large number of these were subprime loans. Subprime loans were offered at a higher interest rate and higher prepayment penalties. Many others were adjustable rate mortgages whose interest rate significantly increased after the initial low-rate period.

Are you thinking of hiring a lawyer?

Should homeowners who want to obtain a loan modification from their lender hire a lawyer to help them achieve that goal? Lawyers say their services can be helpful, but lenders contend that such services are an unnecessary expenditure of money that would be better applied to overdue mortgage payments. Lawyers can help borrowers understand their legal rights, negotiate with their lender, complete the required paperwork for a loan modification and even stop a foreclosure sale. A forestalled sale wouldn’t necessarily guarantee a successful loan modification, but could give the borrower more time to catch up on the mortgage payments or complete a loan modification trial period. There are some cases where the borrower may need a lawyer’s assistance.

 

What about a loan modification company?

Many lenders can be difficult to work with when trying to negotiate a loan modification. This is why people often consider using a loan modification company or mortgage modification company who specializes in negotiating the terms of their home loans with the lender on behalf of the homeowner. A loan modification company provides advice, resources, and services needed so the new terms are in favor of the borrower. Working with a home loan modification company can help home owners to maintain their property and prevent their credit score from taking any additional hits.

LOAN MODIFICATION COMPANY

Many lenders can be difficult to work with when trying to negotiate a loan modification. This is why people often consider using a loan modification company or mortgage modification company who specializes in negotiating the terms of their home loans with the lender on behalf of the homeowner. A loan modification company provides advice, resources, and services needed so the new terms are in favor of the borrower. Working with a home loan modification company can help home owners to maintain their property and prevent their credit score from taking any additional hits.

What do I need to know about fees?

Fees generally range from zero for a not-for-profit organization to as much as 2% of the value of your loan. Paying the fee upfront is recommended in the case that the loan amount is not successfully reduced and the fee is charged as a percentage after the fact.

What about fraud?

It is important as a borrower to be aware of fraud. There are many legitimate companies that are knowledgeable and competent; nevertheless, there is a portion of the industry that seeks to exploit clients. To avoid these types of companies, do research and ask lots of questions. Loan modification scammers prey on desperate homeowners and the representative may say just about anything to close the deal.

It is important that your case is handled correctly the first time. Most mortgage lenders will only allow one modification every 12 months. Choosing a valid company to work with can help ensure the modification is handles right the first time.

 

 

LOAN MODIFICATION ATTORNEY

A home owner may hire a loan modification attorney to provide legal services for the purpose of providing expert advice regarding home mortgages. An attorney will evaluate all of the documents and factors effecting the home owner’s finances, personal hardships, mortgage loan terms, and organize a strategy for negotiating a new, more favorable agreement. This loan negotiation or loan modification is designed for the specific purpose of keeping the home owner in their property.

The attorney will provide the home owner with a comprehensive review of their loan documents finances and the current value of the property. This review will help to identify the most favorable terms for a loan modification and also identify any rights or claims the property owner may have relative to his/her mortgage loan(s) and provide influence in negotiating a loan modification. Additional experts may be hired as necessary.

Usually the home owner agrees to pay a flat fee for these services. The fee will be required in full before the performance of services. An attorney may contract with other companies to compile information and advise the attorney of policies within the bank or mortgage institution. The attorney and staff are responsible for overseeing this contracted work.

If a loan modification is not possible, the attorney will advise the property owner as to the viable alternatives. An attorney cannot guarantee that an owner will receive specific terms or conditions from the mortgage lender. Some lenders contend that hiring the services of an attorney are unnecessary.

 

 

HAMP Modification

What is HAMP?

Making Home Affordable is a federal program that offers qualified homeowners a loan modification to help make mortgage payments affordable. This modification is known as the Home Affordable Modification Program or HAMP.

The Home Affordable Modification Program (HAMP) is implemented through a 2009 Making Home Affordable (MHA) program designed to stabilize the housing market and help struggling homeowners obtain relief and avoid foreclosure. (HAMP) provides eligible borrowers the opportunity to lower their first lien mortgage payment to affordable and sustainable levels through a uniform loan modification process. Both borrowers who are current on their mortgage and those who are behind on their payments are eligible for a modification; however, the borrower must demonstrate that default is looming.

Other Program Requirements include, but are not limited to:

  1. The loan must have originated before January 1, 2009.
  2. The monthly mortgage payment ratio must be greater than 31% of the borrower’s monthly gross income.
  3. The loan must be secured by a one-to-four unit property which is the borrower’s principal residence. One-to-four unit investment properties are eligible for HAMP Tier 2 modifications, even if the borrower does not reside at the property.
  4. Borrowers must submit a hardship affidavit explaining why they cannot make full mortgage payments.
  5. Borrowers must agree to set up an escrow account for taxes and hazard and flood insurance, if one does not already exist.
  6. Borrowers must certify that they have not been convicted within the last ten years of felony larceny, theft, fraud, forgery, money laundering, or tax evasion in connection with a mortgage or real estate transaction.