Mortgages

A Mortgage Loan Modification is the process of altering or modifying the terms of an existing mortgage. Loan modification may take the form of interest rate reductions, amortization extensions (longer loan payback period), or principal reduction, or any combination of the three above. The goal of loan modifications is to simply allow homeowners (borrowers) to stay in their residences, while making changes to their monthly payments that make it more affordable and realistic to continue making the monthly payments. Loan modifications are not legal actions, but are good faith negotiations to alter existing mortgage terms.

In response to the recent housing and mortgage crisis, the Obama Administration has launched a program called Make Home Affordable, on March 18, 2009. You can view the details of the plan at http://www.makinghomeaffordable.gov/index.html. Through this link you can find out if you qualify under the plan either for a refinance or a loan modification, and you can obtain free help through one of the HUD-approved organizations listed on the website. If you meet all the required criteria listed, we encourage you contact one of the approved non-profit organizations near you for free help.

If you do not qualify or you have been turned down (as many applicants have) by your lender for a loan modification, contact your bank directly and find out if you can apply for a modification anyway.  Most banks today are willing to work with borrowers to modify loans, which benefits everyone.  In fact, you DO NOT need an attorney or anyone else to help you with your mortgage modification.  No attorney or anyone can promise that they "know" something "special" that will get your modification done faster.  In fact, the CA Attorney General has filed suit against and/or is investigating many so called foreclosure help companies.  In fact, if you would rather pay someone to do this for you, DO NOT pay all the fees upfront.  See if you can pay upon successful completion of your modification.  Otherwise, WALK AWAY.

HOW CAN WE HELP?

We have found that many homeowners (if not most) who initially obtain a loan modification because they were having difficulties paying their mortgage, tend to face the same problem down the road.  As such, they may be forced to face other tough options such as bankruptcy.  If you have obtained a loan modification but are unable to keep up with your new payments, perhaps it is time to seriously consider bankruptcy as your next step.  Even if you have obtained an affordable modification of your mortgage payments, bankruptcy may still be a great choice whereby you can keep your home (making the new affordable payments), and yet having the opportunity to eliminate your other debts.

If you would like a free consultation - right over the phone - regarding bankruptcy, please contact our office by calling us toll free at 1-877-467-3690.