The lender and the borrower are two entities that work together to make a mortgage successful. As it is the duty of the borrower to comply with the payment demands of the mortgage, the lender or Mortgage Company will not tolerate any defaulting from the borrower.
The ultimate move of the mortgage company to get back their property is often filing a lawsuit against the borower.
The obvious reason why your mortgage lender would sue you
When there is a default in payment for a mortgage and the borrower seems not to have a solution to come up with for resolving the situation, the lender has no option but to go through the legal means of the court. He knows he has the upper hand here with the terms of agreement on the mortgage loan repayment.
Expect the worst when you don’t have cogent defense
If you are charged and if you appear in court with no clear cut reasons for your defaulting, expect to get the worst in foreclosure proceedings. Your case can only be looked into by the judge if you have evidence and good explanation to give for the default. For example, if you recently have spent a lot on your ill spouse, a divorce situation, a loss of job and just in the process of securing a new one are some good explanations that can stop your lender from going ahead with serving you a foreclosure notice.
You will definitely need a loan modification lawyer to help you in the proceedings. A loan modification company, such as loanmoddepot.com can help in presenting your case with good details that will be looked into by the judge. You can find more help at https://loanmoddepot.com/ regarding making the right approaches for your case.
The chances of getting your loan modification approved would depend on how well you present your case as a borrower to the lender or Mortgage Company. While some people don’t really have much problem with getting their loan approved, many struggle with this process.
It is hoped that with the steps provided in this article, you should be able to go about this in a manner that would put you in a better position of getting your loan modification approved with or without a loan modification company.
Show why a loan modification is needed to your lender
This is the starting point you have to do right to get going. Here is where you have to let your mortgage company inform about your plight and the need for a loan modification. You can present a well-drafted hardship letter on your financial situation at the time.
Let the mortgage company see the genuine willingness to keep the house
It is also important to let your lender know that you are very much interested in keeping the house and with the loan modification, you’ll be able to pay the loan conveniently.
Inform the mortgage company about your recent progress
At this point, you may want the mortgage company to know your financial recovery, such as getting a new job, getting well again and the rest of other good things that would help you with the new modification payment.
Bring out the evidence of your new financial statement
With a financial document of your finances, your lender will be able to measure your actual financial level and have the trust that you’d be able to comply with new modifications. Your credit report would be very appropriate here. Let your loan modification attorney help you here. Loanmoddepot.com is a reputed loan modification company that you should consider to get professional help.
Loan modification servicers act as agents to the lender. They are different from a loan modification firm. They are responsible to the lender in several areas, such as they collect payments from the borrower, manage the accounts of a loan and also process loan modification applications forwarded by the loan borrower.
There are some violations that they may take place while processing a loan modification request from the borrower. Here are some common loan modification mistakes that the mortgage servicers often make:
Stating that a homeowner has to be in default to be eligible for a loan modification
This is one common violation. From the government policy on home modification, this is a wrong demand. According to the Obama’s Home Affordable Modification Program (HAMP), it is stated that a borrower can apply for a loan modification if the homeowner is defaulting payment or is most likely sensing that defaulting is looming.
Delay in application processing
This is another common violation that often prevents a homeowner from getting through a loan modification process. In this case, it is possible that some documents might be missing. With the new federal rules, this is put on a check to favor the homeowner in saving time and getting a modification approved.
Failing to convert trial modification to a permanent one
According to the government HAMP program, a three month’s trial of a loan modification should be made a permanent one when it is obvious that the borrower can comply with the payment terms of the new arrangement. Mortgage servicers are reluctant about this by keeping a borrower much longer in the new terms.
There are some other violations committed by mortgage servicers. You can ask your loan modification attorney to help you out if you realize that violations have been committed against you. You can visit loanmoddepot.com/ for loan modification related guides.
When a homeowner is late in paying his mortgage, the lender can take possession of the home with foreclosure. Foreclosure is a legal process which differs from state to state. A local loan modification attorney will be the right person to guide you in the matter and knowing your rights when it comes to foreclosure will help you a long way.
What is Foreclosure?
When the homeowner starts missing on the payments, the lender can take charge of the home to repay the debt owed on the property. The first step when the homeowner misses a mortgage payment is sending a written default notice which is a formal letter to inform the defaulter. The homeowner is given time to pay the mortgage amount with interest, penalty and attorney charges and other fees allowed by the state. The lender can go for non-judicial foreclosure or judicial foreclosure depending on the state. You can check the loan modification options that exist to know what suits you the best.
The Working of Foreclosure
Once the lender decides to foreclose, he will issue a notice of default at the office of the county where the home is based. This usually happens after the third mortgage payment is missed. But once it starts, it moves fast. In 10 days, the notice of default will be published in the newspapers and the same notice will reach you by mail within 30 days. When you receive the notice, you can contact the defense attorney for foreclosure to protect your interest.
The Notice of Default will keep you posted about the steps you need to take to rectify the defaulted mortgage. Usually, 3 months are given for this settlement or sometimes the lender can fix a date for sale and your house can be sold in the next month. After that, you will get 10 days to vacate the home.
There is always an emotional part of foreclosure which may affect the whole family. Foreclosure is a psychological as well as a financial blow. You have to take it calmly as you know although the foreclosure proceeding are going on, you will get notice to vacate the house when the new owner buys the home. When the proceedings start, you can take a house on rent or buy a new home.
Why should there be fear when Foreclosure starts?
When you face problems to pay your mortgage, you can contact a loan modification company to make some arrangements. Foreclosure is an orderly process, so there should be no fear. There are millions of foreclosures with financial crises. With the financial downturn, your home may not be worth the amount you are paying and if you have a little money kept aside you might be able to get a house for half the price. There might have several months after the foreclosure to move out during which time you can make arrangements for the future.
Ways to take Life in your Stride
According to the terms of the mortgage, there might be loan modification options that you can avail. If foreclosure starts and a new owner takes your home, you will receive a written notice to vacate. Then in 30 days, you will have to leave your home. In such circumstances you can take a home on rent. You have to pay the rent for the first month and keep a deposit. In many of these cases, they offer one or two months of free rents once you pay the first month’s rent.
If you keep the home clean, the owner will be happy with you. You can stay in rental apartment till you can regularize you credit rating and go for fresh loan for a house. If you contact real estate agents you might be able to make a better deal.
How do you know when you really need to apply for a loan modification? Many homeowners don’t know until it’s too late and thus they get stuck with all the hassles of applying for mortgage modification. Here are some common situations that lead to the need for a loan modification on mortgage.
This is one of the main reasons that tell you that you are in need of a loan modification. Hardship means a circumstance that has made your life difficult, like death of the primary earner of the family, a disability, a chronic illness or even divorce. You will be required to write a letter of hardship explaining what has changed in your life that has made it difficult, and you’ll need to gather your pay stubs and bank statements as proof of the hardship.
This means that you have a debt that is higher than the value of your house. Loan modification would be a good idea to give you some slack on your payments. In this case, the loan providers would usually decrease the interest on the mortgage payment in order for you to pay off the debt as well as make the mortgage payments on time.
If you are on the verge of foreclosure, there is no clearer sign for you to apply for a loan modification. Checking with different loan modification companies to hire a loan modification attorney would be a good step for advice in order to avoid foreclosure.
Many people think that loan modification is just an easy way out; but without the right loan modification specialist, the whole process could be a hassle. Visit loanmoddepot.com to get all the information you need in this regard.
If you have lost your home due to foreclosure and the foreclosure still does not cover the amount you owe to the lender, he may be able to garnish your wages depending on a few factors. The first factor is dependent on whether the foreclosure is judicial or non-judicial, whether the loan that you took was the first time, and whether the home loans in the state that you live in are non-recourse or recourse loans.
What are the Rights of the Lenders to Garnish Wages?
Loan modification help will guide you to take care of wage garnishment. Before a lender starts to garnish wages from the borrower, he has to get a judgement from the court to garnish wages. Often, private lenders as well as mortgage companies do not come under this category. Before a mortgage lender can garnish the wages of a borrower, he has to sue the borrower and avail a judgement to get the money.
How can Wages be garnished?
A loan modification inspector will be able to provide you advise in order to prevent attachment of wages. If the lender goes to court regarding the amount that is owed to him by the borrower, then the wages of the borrower can be garnished. As per this judgement, the employer can hold back the amount and pay it to the lender. But there are certain creditors, like the IRS that do not require a court judgement to attach wages. There are also limits to the amounts that can be garnished from the wages.
But sometimes, the borrower can make an objection to attachment of the wages. Wage attachments are used when the debt is being recovered and it continues till the debt is fully recovered. There can only be one wage attachment in the employee’s wages at a time. Simultaneously, a child support order may be allowed to operate with a levy of tax. The amount attached by the employer is remitted as per the court order.
In conclusion, a mortgage company can garnish wages if they have a court order to do so after foreclosure.
There is no need to waste time when it is clear to you that making continuous payment of your mortgage will not be possible anymore. This is the mistake that many people make and waste precious time worrying. By the time they finally decide on what to do, it may appear too late with the time available in their hands to really do something worthwhile.
If you find yourself in this situation, here are what you should do to save your home from foreclosure. These steps would help you get a loan modification done for you at the time that is still safe.
Contact your Mortgage Company or lender
This is the first thing to do. You must start talking to put you in a better position with the mortgage lender when the time would come to process a mortgage loan modification officially. When your lender knows about your plight and finds that you are committed to making a way out, he is bound to reason with you for saving the home; knowing that it would also benefit him.
Start a loan modification process
It is not enough to just make an unofficial statement about your finances, thus forward a hardship letter through your loan modification attorney. Give a detailed reason why things have to be changed. Maybe you are now spending on a health condition, or you’re divorced, or your family member is in a critical medical situation and so on. You may get professional help from a loan modification firm, like loanmoddepot.com for a good guide and draft of this letter because this will set the stage for anything to be continued.
Your loan modification lawyer would help you in this area to get a copy of your financial statement for validating your claims. This will be needed for the processing to continue.
Becoming a homeowner is a great step even if it has to come with the mortgage. On the event that making continuous payment for the mortgage is getting impossible, you have options that you can take to avoid facing foreclosure and eventually losing your home through a sheriff sale. Here in this article, we’ll look at a few of the available ways to follow in this regard.
Apply for a loan modification
Loan modification is often the first step taken by many people when paying mortgages becomes difficult. If your income status can cope with an adjustment to the monthly payment with lower interest rate and other adjustments, you should call your loan modification attorney to start a modification process for you. If you think this will not be the best idea, a deed in lieu of foreclosure should be another option.
Deed in lieu of foreclosure
This simply means giving the property back to the lender or bank. This will be a mutual work-out plan between you and the mortgage company. This is far better than having a sale through foreclosure. You will not have that kind of damage to your credit like a foreclosure would do.
Remember that this is not always welcomed by the lender and don’t be surprised to have a no for an answer. When this happens there is yet one more option – a short sale.
Go for a short sale
A short sale is advisable especially if you have some equity in the property. You can have a quick sale that is enough for you to pay off the loan amount and you may also make some profit in the process, who knows!
Before following any of these methods, always contact a loan modification company like loanmoddepot.com/ for guidance.
If you have lost your job and now you are having problems in paying mortgage, contact a loan modification consultant to know the best way to fix this problem so that you can save your home. He can tell you if your loan can be modified and how it can be modified to your best advantage. If there is no way to modify your mortgage, he will tell you how best to face the foreclosure.
How to take a House on Rent?
When foreclosure proceedings are going on, it is best to take a house on rent. When you do that, you have to pay the rent for the first month and then keep a deposit. If you keep the rental apartment neat and tidy and do not enjoy a lavish lifestyle, you will be able to stay there for long. In some states, the owners offer one or two months of free rent. When you rent a house, you will enjoy a lot of facilities, like no property taxes, no mortgage payments and others.
Ways to have a Home if your Home is foreclosed
The housing market is in trouble with millions of homeowners facing foreclosure. If you too are facing foreclosure then you can try for a home elsewhere at the half price of your current home. If your current home facing foreclosure is not worth the price you are paying, the loan modification companies and real estate agents will be able to help you with a smaller home with two bathrooms and two garages where you can pay just $350 a month with insurance and taxes.
After a real estate agent shows you the home, check with a local lawyer if all the papers of the home are in order and then make the investment.
Do not lose hope if you are facing foreclosure, as there are a lot of properties for sale for just half the price.