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Archive for loan modification
Jan
30
Loan Modifications: Things You Must Know
Posted by: | CommentsFind a list of loan modification do’s and don’ts to help you avoid common pitfalls.
Know your rights.
More than 80% of mortgage contracts violate one or more lending laws-and most of them go unnoticed. They can give you the leverage you need to negotiate with your lender and stop foreclosure. Your loan modification attorney can help you understand your rights and use them to get the results you want.
Don’t wait too long.
The foreclosure process is designed so that you have time to get back on your feet and save your home. But that doesn’t mean it’s safe to procrastinate. The longer you wait, the harder it gets to get you out of that fix. As soon as you decide you need mortgage help, call for a loan modification help and get started.
Work with your lawyer.
Your Home Loan Modification doesn’t rest in the hands of your lender, your broker, or your loan modification attorney. These people can help, but you have to do your part and cooperate with your lawyer. Make sure to submit your paperwork on time, answer questions honestly, and give them a clear picture of your financial situation.
Don’t file for bankruptcy, unless you really have to.
Contrary to popular belief filing for bankrupcy doesn’t always stop forelcsure. But data from the American Bar Association shows that it doesn’t work that way. In fact, 96% of the people who file bankruptcy end up losing their homes anyway-so they’re left with a foreclosure AND a bankruptcy on their records. In some cases, bankruptcy is still a viable option, but don’t make any decisions without getting professional advice.
Get a backup plan.
Unfortunately everyone wont qualify for a mortgage loan modification. Maybe you’ve fallen too far behind, your lender may be simply hard to work with, or maybe you don’t need it after all. In any case, it’s always good to have a Plan B. Your mortgage modification attorney can help you find the best solution.
Talk to your lawyer about a short sales if you can’t get your mortgage modified. This involves selling your home for less than its fair market value and giving the proceeds to your lender. Although you still lose your home, it’s not as damaging to your credit as foreclosure, so it’s easier to get back on your feet.
Information about Loan Modification can be found by contacting a Loan Modification Consultant or call (888) 730-8881 now.
Jan
18
Understanding the Short Sale Process
Posted by: | CommentsSan Diego Foreclosures For Sale
In real estate industry, short sale has been considered to be one of the worst things that can happen to your house. Of course the top notch on the list is no other than foreclosure. Short sales seem to be much better than bankruptcy and foreclosure. When you plan to sell your house, majority might think you are doing a short sale. This is very common in the areas where house market values went down substantially. And such process has several advantages to those sellers who are on the verge of getting a foreclosure as well as buyers who find for a deal on their next house to live. But short sales can also be confusing, to give you an overview of this complexity, go over the rest of this article.
When you talk of short sale, this is primarily selling a house with a price lower than the mortgage value. A seller who faces the threat of foreclosure engages into a contract with their mortgage lender to get a price for the house that is less than the amount they borrowed. The seller has no income on the sale but stays away from the probable issues and prevents from making it a foreclosed property.
On the other hand, short sale can have some benefits. When sellers decide to dispose the property, they are free from going through the tedious process of foreclosure and avoid the impact of such on their credit record. In a short sale, the seller and the lender talk together and determine the details of the agreement, but it is usually the sellers who finish a short sale to put an end to the existing loan.
The major advantage to the buyers is the fact that they are transferring into a new house at a cheaper price. In addition to that, buyers may think that short sales have other advantage over foreclosures since they will not have any problems on removing the seller from the property.
Certainly, mortgage lenders have other advantages also. In such process, lenders do not have to undergo the complicated foreclosure proceedings. More than anything else, lenders are concerned in getting their money back, and they basically want to stay away from taking the responsibility for disposing the property. Thus, short sale can actually do well to them.
On the other hand, it is inevitable that you can encounter some drawbacks in this process. Initially, lenders will propose to ease the seller of the responsibility of settling the balance of the loan. Thus, sellers should obtain a firm commitment from lenders that says this is part of the agreement. Furthermore, as much as the sellers want to avoid foreclosure, short sale can still affect their credit record to some extent. Hence, sellers should tackle this matter with their lender to know how the procedures will be reported to the credit institutions.
One important thing to consider is that sellers are evaluated if they are qualified for a short sale or not. Take this as an example, few lenders will engage into a short sale transaction with sellers who have a good mode of payment. So, if you are a seller and planning to get a short sale, you will have to talk to your lender and ask the available alternatives.
Overall, if you are a buyer who is planning to enter into a short sale, it would be prudent to get an advice from a real estate broker who can give you a complete explanation of how the process works. In this manner, you can be prepared to incorporate all the necessary information to complete the transaction and live into you new abode.
Dec
25
Loan Modification Help Center â How to Stay in Your Home
Posted by: | CommentsSan Diego Foreclosures For Sale
Do you know who can qualify for a home loan modification? Odds are you don’t, very few people do, which is why a loan modification attorney can be an excellent resource, especially with the economy in such a difficult spot. These days, financial hardship is a reality for countless people in California. The state has double digit unemployment and even more people are working two or three jobs, or just working a job they are overqualified for to pay the bills. That being the case, people need professionals who can help them save money and help them save their homes. The financial hardships coupled with the fact that so many questionable loans were sold over the past few years puts homeowners in a position where more foreclosures are happing now than ever before.There are adjustable rate mortgages where the fixed term is up and the rate increases. Once the payment becomes too much to afford, may of the borrowers find that the stated income they used qualified them for loans far outside the scope of their finances. Loan modification attorneys have seen countless cases of this happening all across America.Candidates for attorney based loan modifications include victims of decreasing home values who now have no equity or even negative equity in their homes. California foreclosures include hundreds, if not thousands of people who owed more than their homes were worth. Many homeowners feel they don’t want to put the effort into try to pay a huge mortgage payment when they are upside down tens of thousands of dollar and property values keep crashing. California loan modification attorneys are seeing cases of hopeless people just giving up and walking away from their homes, people who don’t understand that they do indeed qualify for a California loan modification. If you have the proper loan modification attorney who knows what he’s doing, you can have your balance reduced substantially, allowing you to pay a lower monthly payment.Someone facing financial hardship is a textbook case of a borrower who qualifies for a California loan modification. What this means is that something happened n your life, something outside your control, that caused you to lose money, lose the ability to earn money, cut into your wages or something else along those lines. Homeowners with large savings accounts and a good monthly income rarely qualify for a loan modification, and rarely seek one.If you’re near foreclosure, and you have nowhere to turn, contact the Loan Modification Help Center. We can guide you towards a proper path which may help you stay in your home. Qualified loan modification attorneys such as ours are helping people from Eureka to San Diego with their impending foreclosures, and helping to stem the tide of the foreclosure wave.We have experience working with lenders, with banks and with other mortgage companies to get your monthly payments where you need them to be in order to keep your home. We work on your behalf and keep you informed throughout the process so that you know what’s going on with you and your family’s future.
Alex is a famous author who writes about Loan Modification. Loan Modification Help Center is a free resource for millions of people to find information regarding several topics related to loan modifications and resources to information.
Dec
25
Navigating A Short Sale
Posted by: | CommentsSan Diego Foreclosures For Sale
A short sale represents a great opportunity for a homeowner who owes more than their home is worth. Ideally, it gives them a chance to sell their home without owing the difference to their lender. As home values continue to decline, short sales have become one of the most viable solutions for millions of underwater homeowners who are facing foreclosure. Unfortunately, it is very difficult to successfully negotiate a short sale with most lenders today.
A short sale can also benefit the community in which the home is located. Foreclosed homes often stay vacant for many months before they are finally sold. Lenders have a policy of not performing any maintenance or repairs on a foreclosed property. As a result, the home begins to deteriorate and causes the values of surrounding properties to drop. When a short sale is purchased by a buyer or investor, the property is often fixed up and inhabited rather quickly, as these individuals have some real stake in the property. They will not let the property fall apart over time. Thus, the surrounding homes’ values will not suffer.
A short sale is only for the patient, however. A typical short sale process can take months without any guarantee of even being approved by the lender. It’s not uncommon for a month or two to elapse without an update from your lender. It’s important to recognize that the banks are understaffed and overwhelmed with homeowners seeking assistance with their mortgage payments. Homeowners who have second mortgages on their property will have an especially difficult time negotiating a successful short sale. They usually negotiate each mortgage separately, so it becomes doubly long and difficult to accomplish a short sale. You must also prove to your lender that you are incapable of staying current on your payments or paying off your mortgage in full. Your lender will also demand to see the contract between seller and buyer to ensure they are receiving all of the proceeds from the sale. Another point to consider is whether you will have any tax implications after a short sale. The IRS may consider the debt forgiven as income and tax you accordingly. A good attorney or accountant can assist with this. Between foreclosures, short sales, and loan modifications, the banks are beyond their limits. The best way to ascertain if you will qualify for a short sale is to determine how much you will be “short” on the sale.
Here is a basic way to determine just how “short” you will be on your short sale.
1. Home Value/Worth: Determine the approximate value of your home. A good way of doing this is to enlist a real estate agent to perform a Comparative Market Analysis on your property. A Comparative Market Analysis (CMA) is an in-depth analysis of a home’s current value by comparing properties in its surrounding area that have been sold, current listings, expired listings, and pending sales. A real estate agent uses a combination of these tools to estimate the value of a home.
2. Cost of Sale: This is where you calculate the approximate cost of a short sale. A property sale can include expenses such as broker fees/commissions, advertising costs, legal fees, and closing costs.
3. Total Value of All Loans: Calculate how much you owe on your property (this can include second mortgages, home equity loans, etc. ).
Next, subtract the total amount owed on the property and the estimated cost of the sale from the expected sale revenue. The number remaining is how much you will owe after the sale. This number is a good indicator of your chances of having a short sale approved by the bank. An experienced real estate agent can assist with this.
Here is a brief example:
1. Estimated Current Value of Home = $175,000
2. Amount owed on first mortgage: $200,000
3. Amount owed on second mortgage: $50,000
4. Estimated Sale Cost: $5,000
- Add up values 2,3,and 4 = $255,000
- Subtract from expected sale revenue (#1)
- =$80,000. This is the amount you are “short” and will need your lender to forgive.
Anyone can negotiate a short sale on their own, but this could be detrimental to the outcome. Having a professional negotiate a short sale for you can significantly increase your chances of success. With so many fly-by-night companies cropping up, it’s becoming difficult to hire someone you can trust. A law firm is always the best option when seeking to hire someone to negotiate on your behalf. A law firm is familiar with your State and Federal laws, and is also bound by them. Most lawyers will not risk their license and livelihood to make a quick buck off a consumer. Your lender will also take requests from a law firm much more seriously, and your short sale can move along much more quickly. An important obstacle to avoid during a short sale negotiation is a Promissory Note. A promissory note is essentially a promise to pay the bank back the difference after a short sale. This is very bad for the homeowner trying to negotiate a short sale, because it leaves them responsible for the balance of their loan. An attorney can assist a homeowner with dealing with a Promissory Note, but there are no guarantees.
Fortunately, lenders are beginning to understand the benefits of a short sale. The Comptroller of the Currency showed that lenders completed three times the amount short sales in the 4th quarter of 2008 than in the first quarter of 2008. Now is the best time to try to negotiate a short sale with your lender. They have begun to realize that in many cases a short sale is a better alternative to foreclosure. After a foreclosed home sits and falls apart over time, it becomes extremely difficult for the lender to sell it at a competitive price. A short sale also gives the homeowner the responsibility of making their home “sale ready” to increase the chances of selling the home for a fair price. This helps the lender recoup more money than they would from attempting to sell a foreclosed property that has fallen apart over time.
If you would like more information or need assistance with a short sale, please contact the CreditLawGroup at (800) 508-0041
Smith & Gromann, P.A./CreditLawGroup is a national law firm concentrating on providing representation to consumers, including those affected by the current mortgage and debt crisis. We provide cost-effective and accountable representation on the matters of: Foreclosure Postponement, Loan Modification, Mortgage Document Audits, Refinance and Transaction Services, Shortsale/Payoffs, IRS Debt Negotiation, Real Estate Tax Appeals, Credit Repair, & Debt Settlement. We are a real law firm representing clients under federal and state law. Don’t trust your future to unlicensed “consultants” and generic companies. With a law firm you can assure that your interests are properly represented on what are critical legal matters.
The hiring of a lawyer is an important decision that should not be based solely on advertisements, Before you decide, ask us to send you free written information about our qualifications and experience. This blog subject to the terms and disclosures set forth at www.creditlawgroup.com
Dec
24
The Las Vegas Quagmire
Posted by: | CommentsSan Diego Foreclosures For Sale
Las Vegas has some of the worst real estate/mortgage/foreclosure statistics in the country. It is estimated that 70% of homeowners are underwater and nearly 12% are delinquent on their mortgage payments. The city is considered to be the epicenter of the sub-prime mortgage meltdown. Homeowners attempting to do their own negotiations with their lenders have been sharing their stories. The themes and mishaps have a common thread. Nobody knows what’s going on.
After months of chasing Washington Mutual to work with him on a loan modification or some type of relief until business picks up again, one Las Vegas resident simply stopped making payments. This was after visiting the home loan modification center recently opened in Las Vegas by JP Morgan Chase, which received $25 billion in federal money and acquired Washington Mutual. His loan wasn’t in the Las Vegas office any more. It had been moved to the REO (real estate-owned) department in Dallas, Texas. He left several messages for someone at a number in Dallas, none of which was returned. In limbo, he said, “I’m so stressed. I’m losing sleep at night because of this. I don’t know where we’re going to be.” Since then, the trustee sale date has come and gone, his property has not been sold and Gomez has been living in his home for six months without making a mortgage payment. The knock on the door can come at any time but it hasn’t yet. Every day is spent on pins and needles.
Las Vegas, partially due to the sheer volume of properties that are upside down, has seen little in the way of government programs that lend a hand with foreclosures. Compounding the problem is the fact that scammers have descended on the city to take advantage of the desperate populace. Because negotiating with a bank on a loan modification requires expertise and knowledge typically beyond the average homeowner’s level of knowledge, it’s important to work with law firms that can prove that they have executed hundreds of modifications. That’s the way to guarantee that you’ll get the best shot at a successful modification and that you won’t get taken advantage of by a company that has just rolled into town and set up shop.
The problem in Vegas is that the prices have dropped so precipitously that there is virtually no chance of prices getting back to where people purchased their homes. Prices have fallen about 80% in some condominium developments, cutting prices from $250,000 to $50,000. With drops like that, getting back to even is like waiting for NASDAQ to get back above 5,000. A growing school of thought counsels that walking away, despite all the negative ramifications, is the best option for many homeowners. “My opinion is yes, most people who are upside down and underwater should walk away from their home,” Tom Love of Realty Executives said. “If you are negative hundreds of thousands of dollars, it’s a hole that you will never dig yourself out of. You may be better served to walk away and start the healing process.” Others are saying the same thing. “The emotional aspect of knowing you’re so far underwater is a real challenge for people,” said Chris Biaggi of All Western Mortgage. “Will I ever get my head above water? Knowing it will take years to get above water, if ever, some people recognize it’s better to cut their losses now and get on with life.”
One of the little known aspects of the “Making Home Affordable” plan is the net present value test. The calculation basically looks at the options of home loan modification versus foreclosure in terms of which one provides the best return for investors. In Vegas, the returns off of a foreclosure are so bad that that home loan modifications look like big winners for the lenders, even with massive concessions. JP Morgan Chase, one of the largest lenders in the area is becoming a big fan of modifications, if only to keep some cash flow coming out of the properties in their portfolio. The bank’s primary goal is to keep people in their home, but everything is based on ability to pay, Chase Bank spokesman Gary Kishner said. He added, “We’ve taken various tacks to try to reach as many people as we can and modify loans that can be modified,” he said. “If someone’s about to start a new job, maybe we’ll do a temporary forbearance. If there’s no light at the end of the tunnel, maybe their option is a short sale. Our goal is to take necessary steps to make this a one-time fix for the customer.”
The problems in Las Vegas are so deep, with so many homeowners upside down and home prices plummeting, the city is in a unique situation with a problem that government programs are not going to be able to fix, said Robert Gnaizda, counsel for San Diego-based Mabuhay Alliance. “At a certain point, when people are under water, you can’t rescue them by conventional means because home values keep going down,” Gnaizda said. He met with representatives from Sen. Harry Reid’s office in May to propose a $200 million pilot program for Las Vegas in which homeowners would become tenants, renting their homes back from the bank. Twenty percent of their rent would be applied to a down payment should they exercise an option to buy the house back within five years at 90 percent of its market value.
Desperate situations call for creative solutions and Las Vegas is in a desperate situation. Some analysts estimate there are more than 25,000 real estate-owned homes in Las Vegas waiting to be released by the banks, so the foreclosure and property value problems look like they will get worse before they get better. The pilot programs being proposed deserve a look simply because Las Vegas isn’t the only city in complete disarray. Something that works in Las Vegas may have applications Detroit or other cities with similar statistics. If the problem continues to worsen, homeowners, lenders, servicers, and investors will be looking for out of the box answers to problems that have no precedent. A successful pilot program, should it happen in Vegas, shouldn’t stay in Vegas.
Visit www.loanmodificationhelpcenter.org for more information on loan modifications.
Loan Modification Help Center is a free gathering place for resources and information on the rapidly evolving field of loan modifications. Visit www.loanmodificationhelpcenter.org for information about mortgage loan modification / loan modification companies reviews / loan modification programs