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Feldman Law Center – What to do About Interest Rates

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 reductions 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.

Feldman Law Center – How Common is Bankruptcy?

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.