Posts Tagged Loan
Feldman Law Center – Five Steps to a Loan Modification
If you check the stock market on Monday, people will be saying the market is up and everything is looking better financially. If you check the market on Tuesday, all economists will be in complete agreement that the world is going to end in 48 hours. What does this mean for you? No one, not even the “experts,” have any clue where the economy is going or how long it will take for the country to climb out of this “Great Recession.”
Real estate has been a nightmare for many people as well. One minute the housing markets look great, and yet with unemployment at a 25 year high and climbing, no one has any idea what the future will bring. This affects available homes, available credit, interest rates and more. There is very little sure footing in today’s market, but with a loan modification, you could be closer to security than many other people.
Five Steps
Here are five steps you can take to get a loan modification:
1. Do your homework – Read as much as you can about loan modifications. While at work, while watching the ball game, while you are eating lunch – read and learn about loan modifications. This will only enhance your understanding of the industry and give you a sense of what a loan modification can do for you.
2. Get your ducks in a row – It is important to have your financial paperwork in order to get the loan modification that is going to work for you. That means tax returns, pay stubs, bank slips and more, all from the last few years. A bank is going to want to see your financial history, as well as your current financial situation in order to make a decision.
3. Talk to your spouse – You cannot get a loan modification without having the assistance and agreement of your spouse. While your financial situation may be dire, you must work together in order to make this happen.
4. Find a loan modification company – You can always attempt to get a loan modification on your own, but having a highly qualified loan modification attorney working with you might be the necessary help you need. Knowing how to fill the application out, how to file the paperwork, how to organize the communication between your side and the lender and much more can all be helped by a loan modification attorney. You wouldn’t go to court without an attorney, so do not try getting a loan modification without an attorney.
5. Calm yourself – It is important to be patient and understanding with yourself and your situation while trying to get a loan modification. It can be very easy to overreact and lose your calm. In fact, more marriages end because of financial troubles than for any other reason. So, giving yourself, your spouse and everyone else around you some slack will keep your relationships and your life in a good place.
Contact a loan modification attorney today, and begin the process of staying in your home.
Feldman Law Center – Home Loan Modifications as Homeowners Best Option
Feldman Law Center – News by Feldman Law Center – For all the negatives that have been written about loan modifications, and there have been a lot, the option is far and away the best option for struggling homeowners trying to stay in their homes and preserve their credit scores. As property values have plummeted, the possibility of selling or refinancing the home has been erased. That leaves foreclosure, a short sale, or short refinancing as the remaining options outside of a loan modification for homeowners to resolve their issues with their lenders. All of those options do extreme damage to credit scores and stay on the homeowners’ credit report for a minimum of seven years.
A home loan modification is basically a change in the terms of a homeowner’s existing mortgage with the objective of bringing the monthly mortgage payment back in line with the homeowner’s current financial situation. By modifying the existing mortgage, the transition doesn’t affect the credit score of the homeowner. Additionally, the credit score of the homeowner does not carry much weight in the modification process.
A home loan modification’s main feature is normally the alteration of terms on the existing mortgage’s first five years. It’s not unheard of for modifications to alter terms for the life of the mortgage but most of them cover the first five years. It is hoped by all that conditions in the economy, real estate values, and the job market improve enough by that time that homeowners will either be able to sell the property or afford payments at the higher levels that go into effect once the modified rates revert back to their original levels. The modification benefits the lender by keeping the homeowner in place, which results in continued cash flow from the property, and by preventing the property from going into foreclosure and back on to the books of the lender.
As simple as the process has been made to sound here, the negotiation of terms on a mortgage is not in the normal purview of a homeowner. Hiring legal representation is the best way for a homeowner to ensure that will get the best results possible for their personal situation. An attorney will base the negotiation for the loan modification on the homeowner’s total financial picture, including credit card and consumer debt. Where it makes sense, the firm may initiate debt negotiations, along with the home loan modification, on the other debts carried by the homeowner including credit cards, revolving debt, consumer loans, unpaid medical bills, etc.
The law firm will also assist in the drafting of a hardship letter, which details the conditions of the challenges facing the homeowner. Hardships can include an adjustable rate mortgage with payments that have increased to the point where they are out of reach of the homeowner, pay cuts, job losses, illness, or divorce. The hardship letter should also include the homeowners plan for dealing with and getting past the current hardship. From that point negotiations begin, the ultimate prize being the modification.
If you are struggling with your mortgage payments, are behind on payments, and/or facing foreclosure, talk to an attorney’s office that specializes in home loan modifications. The Feldman Law Center has executed over 600 loan modifications and has the experience and knowledge to get the best possible results to address your specific needs. Call them today at (949) 544 8224.