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Loan
Modification
Falling home prices, widespread layoffs and adjustable rate
mortgages have set the stage for a record number of mortgage defaults.
It's no secret that we are experiencing a historic economic and housing crisis.
There are millions of homeowners who are upside down in their mortgages without
the ability to remain current with their monthly mortgage payments.
Alternative to Bankruptcy
Loan modification is an alternative to bankruptcy.
Often, if a homeowner can obtain a modification of their
mortgage, they can avoid filing for bankruptcy.
Today,
loan modification programs generally appear in three forms: (1) your
lender might offers an interest rate reduction; (2) your lender may extend the
length of your mortgage and add your missed payments to the end of your
mortgage; or (3) your lender might offer to reduce the principal amount of your
outstanding loan (principal reduction).
At our firm, a loan modification request includes a full and
complete financial analysis to make sure a loan modification is the best option
for you. You are a possible candidate for loan
modification if (1) your mortgage payments are too high but you could make a
lower, more reasonable monthly payment; (2) there has been a hardship that makes
it difficult for you to make your current monthly mortgage payment; and (3) you
owe more in your mortgage than your house is currently worth.
Remember, however, that loan modification is still at the
discretion of your lender. Since there is no guarantee that your lender
will modify your loan, it is that much more important to have the right help in
preparing your loan modification application and the right attorney advocating
on your behalf with your lender. We have the experience and skill to
assist homeowners in the loan modification process by advocating our clients'
financial hardships and by providing the necessary information to demonstrate
that a loan modification is feasible.
A loan modification may help you avoid bankruptcy and take the first
step towards reaching your goal of financial freedom. If you are buried
by a crushing mortgage, you owe it to yourself to consider
applying for a loan modification. It could
provide the peace of mind solution that you’ve been looking for.
HAMP and Other Government Programs
The
Emergency Economic Stabilization Act of 2008 was signed into law by
President Obama on October 3, 2008. In implementing the Act, the United States
Treasury has instituted a number of programs, including the “Home Affordable
Modification Program" (HAMP), the “Capital
Purchase Program”, and the “Troubled
Asset Relief Program” (“TARP”), among others. The stated goals of these
programs are to keep homeowners in their homes by modifying their mortgages with
such things as interest rate reductions, term extensions and principal
forbearance or forgiveness.
In fact, most major residential mortgage
servicers have committed to HAMP by signing formal
participation agreements
with the government in which the mortgage servicers
agree to postpone foreclosures and modify loans for eligible borrowers. Click
for a list of
Residential Mortgage Servicers committed to HAMP.
Fees
Unlike other companies, we charge a flat fee for our services. Beware of
loan modification companies that charge
high monthly fees and make few promises.
Click here to contact our
office if you are considering a
loan modification.
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