What Can A Loan Modification Attorney Do For Me?

Finding yourself at the mercy of a mortgage company that wishes to foreclose upon your home is never a good situation. Working with customer service reps at various companies can often be frustrating and pointless. It seems that each person you speak with may provide a different answer and outcome to your individual situation. You waste time and energy getting nowhere, while the time for handling the crisis is quickly running out. You know that you need a loan modification to save your home, but you do not know how to accomplish this important task.

A loan modification attorney could be your answer. Attorneys, who are qualified to deal with mortgage companies and experienced enough to know the tricks of the trade, could help you save your home. A loan modification can make the difference between keeping your beloved home and being forced into an apartment, or worse.

A loan modification attorney can assist you in dealing with the mortgage company. They can ensure that all the paperwork is processed properly and on time. They can assist you in making sure the repayment plan is one you can easily afford and still keep your home.

Loan modifications could be the only way to lower your monthly payment, bring your mortgage into current status again and lower your interest rate. When you use the services of a loan modification attorney you may also be able to have some of the interest payments waived, roll over past due payments to the end of the loan and, possibly, reduce the amount of your overall debt. These are things that can be done, when handled by a professional.

Attorneys are trained negotiators. They know and understand the rights of their clients and will push the mortgage companies to comply with these rights. The mortgage company has the ability to renegotiate a mortgage. However, they may encourage their service representatives to pass up on negotiations and head straight for foreclosure.

A loan modification attorney could help you at a time when you are most vulnerable. An economy that is not quite stable brings about hardships in many forms. All too often, people who would not normally be in this situation, find themselves about to lose their homes. Many of these foreclosures could have been avoided had the home owners utilized an attorney and the loan modification program.

If you have found yourself in this predicament, there is help available. Loan modification attorneys could help you save your home.

Loan Modification: How Much Can You Save?

Loan modifications are designed to make mortgages more affordable for homeowners. Whether you get an interest rate reduction, a term extension, or a principal forgiveness, the point of getting your loan modified is to reduce your payments so that you can more easily afford it. But how much does a loan modification really save you?

Nationwide, the average homeowner saves $812 a month after a loan modification. Of course, this is far from indicative—the figures can vary from a couple of hundred to several thousand dollars. Below are some of the factors that affect your potential loan modification savings.

Debt-to-income ratio
This number indicates how much of your monthly income goes into debt payments. This includes not just your mortgage, but also your credit cards, student loans, car loans, and other debts you currently have. Most banks will try to fit your monthly payments down to 31% of your debt-to-income ratio, the standard set by the government.

Principal balance
The amount you currently owe is probably the biggest factor in your loan modification payments. For a loan modification to make sense to your lender, your monthly payments must be a reasonable percentage of your balance. Generally, the larger the unpaid amount, the more the bank loses in a loan modification and the smaller your chances of approval.

Type of modification
The most common form of loan modification is an interest rate adjustment. By lowering your interest rates, the bank reduces the amount you pay every month without reducing your principal. The government allows interest rates as low as 2% on a loan modification, if it means bringing the payments down to affordable levels.

Other structure types
If reducing your interest to 2% does not help, your lender may propose other ways to bring your monthly payments down. A common alternative is a term extension, wherein your payments are spread out over a longer period. In some cases a lender may also reduce the principal itself, although this isn’t common in the loan modification market.

Loan modification alternatives
Some homeowners are simply too far behind or are in too much hardship to afford the payments, even after a loan modification. In this case, lenders usually offer other ways to prevent foreclosure, such as a short sale or a deed-in-lieu. These won’t let you keep your home, but they let you get rid of the heavy mortgage without the stress and damage of a foreclosure.

Getting a Loan Modification for Your Second Mortgage

Last year, getting a loan modification for a second home was close to impossible - with two different parties holding stake, there wasn’t much chance for a second mortgage to get approved. But thanks to new changes in President Obama’s home loan modification program, people who have second mortgages in default can now get the help they need. Read on to learn more about getting a federal loan modification for second mortgages, and how you can make the most of it.

Who’s in it?
The program is voluntary, but most major lenders have already signed up and more are expected to join in. To find out whether your lender is taking part, call up the bank’s loss mitigation department—it’s the office that usually takes care of loan modification plans. If they’re not part of it, chances are they offer a different program for second mortgages.

How does it work?
The government encourages lenders to participate by offering a $1,500 incentive for every home loan modification they approve. Upon getting approved, borrowers will also get a $500 upfront payment and additional $250 over the next three years, credited against their outstanding balance, provided they do not default again during the period.

How does it change my mortgage?
The home loan modification can reduce your interest rate to as low as 1% for as long as five years. The numbers may vary according to factors such as your income, your current balance, and your payment history. Other loan modification plans also exist, such as a principal reduction or an extension of loan terms. The type of assistance you get depends on how well you can negotiate with your lender and the current state of your mortgage.

How do I qualify?
The qualifications for a second home loan modification are more or less the same as for a primary home. First of all, you need to present a valid hardship to justify falling behind—a medical emergency, job or income loss, or a death in the family. The lender will most likely assess you based on your debt-to-income ratio—the total amount of debt you have versus your total monthly income—so you may also need to present a source of income.

Getting a second loan modification can be complicated, but it’s not difficult. If you’re considering a home loan modification on your second mortgage, you may want to work with a loan modification attorney—a professional who can guide you through the whole process from application to signing day. Look for one with specific experience in your area and property type, and make sure to plan ahead to ensure the best results.

Bank of America Loan Modification Tips

As one of the leading mortgage lenders in the country, Bank of America is also one of the first to support the government’s mortgage loan modification program. Homeowners who have trouble keeping up with their mortgage can now get their loans restructured to more comfortable terms, allowing them to stay in their homes and avoid foreclosure. If you’re considering a Bank of America mortgage loan modification, read on for some tips and tricks to help you get the best deal.

Make the call. The first step to any mortgage loan modification is to call the lender yourself. Bank of America handles loan modification applications through its Loss Mitigation department, so make sure you have the right person on the line. It may take a while since the bank receives thousands of requests a day, but waiting is part of the process—it just takes a bit of patience.

Hire a lawyer. One of the best ways to ease up the mortgage loan modification process is to work with a loan modification attorney. For one thing, he or she will already have links with local banks, so it’s easier to get to the right people. They can also help you decide what terms to demand, how to negotiate your case, and what alternatives to consider in case the mortgage loan modification doesn’t work out.

Gather your documents. A lot of paperwork goes into mortgage loan modification, and most of them have to do with your finances. Bank of America will want recent financial statements, pay stubs and other proof of income, tax forms, and your mortgage bills for at least the past two months. Make sure to have all these on hand before handing in your kit; otherwise your application could be significantly delayed or even rejected.

Write a hardship letter. The hardship letter is another important element in your mortgage loan modification. This is where you get to tell the story behind all the paperwork. Talk about how you lost your job or had to pay medical bills, and more importantly, explain how you plan to get back on track now that the hardship is over. Your loan modification attorney can help you draft the letter to meet the bank’s standards.

Stay in touch. It’s important to stay updated once your application is in. Not only does it ensure that things are moving; it also shows the bank that you’re motivated and willing to work your way out of financial trouble. Call up the bank around once a week to ask about your application, and make sure to keep a record of every correspondence you receive.

Avoid Foreclosure With Loan Modification

As more and more people fall into default and risk losing their homes, the government has come up with numerous ways to help them avoid foreclosure. Among the most popular approaches is loan modification, which basically involves changing the terms of one’s mortgage to make it more manageable. With a good loan modification program, you not only get to stay in your home—you also get your finances back on track. This article offers more reasons to call a loan modification lawyer and get started today.

Stay in your home
Obviously the biggest advantage of a loan modification is that you get to keep your home. You don’t have to worry about relocating, nor do you have to suffer the social stigma of a foreclosure. And since you don’t have to take out a new mortgage afterwards, you’re open to other financial options in the future. As soon as you’re back on your feet, you can start applying for new credit and improving your portfolio over time.

Choose your terms
There are several ways a loan modification can be done: lowering interest rates, forgiving part of the principal, cancelling late fees and penalties, or extending the life of the loan. With a good loan modification lawyer, you can negotiate with your lender for terms that really fit your needs, rather than just reduce losses on their part. To make sure you get the terms you need, set clear goals at the outset and take time to plan it out with your lawyer.

Get government support
The government is currently vamping up its efforts to avoid foreclosure, and this includes encouraging lenders to modify loans. Both prime and sub-prime mortgages, as well as second mortgages, are now eligible for loan modification assistance. Lenders are also given more incentive to help troubled borrowers avoid foreclosure. Ask your loan modification lawyer about government loan modifications and see how you can qualify.

Save your credit
Other loss mitigation options, such as short sales and forbearance, have a negative effect on your credit report. While they’re not as drastic as a foreclosure (which can last up to ten years), they still take a good amount of time to clear up, and that can further keep you from becoming stable. Loan modification leaves little to no signs on your credit, so you can start rebuilding your finances—or even take out new loans—as soon as it’s approved.

Prepare a Winning Loan Modification Application

Loan modification has no doubt won its place as the best way to avoid foreclosure and get one’s mortgage back on track. But the fact is that not every loan modification application gets approved, and even completing the paperwork may not be enough to qualify. At the end of the day, it’s a question of whether or not a loan modification will make financial sense to the lender, rather than what’s best for you.

But that doesn’t mean your loan modification application is out of your hands. Below are some steps you can take to ensure a successful application with your bank.

Start early.
Before the program was popularized, borrowers typically had to be at least 90 days in default to apply for a loan modification. However, with new government policies, anyone can now submit a loan modification application, even if their mortgage is current. As soon as you start having difficulty making ends meet, call up your lender and ask about your options. That way, you can start finding solutions before it gets too complicated.

Do your research.
Most loans today are either owned by one lender or converted into mortgage-backed securities, which are basically “pieces” of the mortgage distributed between several investors. Mortgages that fall under the latter are harder to modify because there are more parties concerned, each of which has to approve the loan modification application. Find out who owns your mortgage by calling your bank or looking it up on government websites.

Write a convincing letter.
The hardship letter is one of the main requirements in a loan modification application. It’s where you explain to your lender how you fell behind and convince them that you can stay current once the loan is modified. Make sure to keep everything factual—you can appeal to emotion by drawing attention to certain details, but you can’t exaggerate or twist the facts. Most importantly, keep it brief but detailed—too short and you can’t really explain much; too long and the agent won’t even want to read it.

Work with the pros.
If you’re not sure you can do it yourself, consider hiring a loan modification attorney. He or she can help you make quicker contact with the lender, prepare your loan modification application, and give you advice on staying on track once your loan is modified. It may cost more at the outset, but the assurance and convenience it offers can be well worth your money.

Getting a First Horizon Loan Modification

First Horizon is one of the most established financial servicers in the United States, having been established in 1834 and playing a big role in the recent sub-prime mortgage boom. Today, it is also among the most active providers of loan modification, a process that allows struggling homeowners to get more comfortable mortgage terms. If you're looking to get a First Horizon loan modification, read on for a simple borrower's guide.

Qualifications
As with any other lender, the main requirement for a First Horizon loan modification is a valid hardship that justifies the borrower's falling behind. A borrower may apply for loan modification without being in default, as long as he or she can prove difficulty in meeting monthly payments. Adjustable-rate or high-rate mortgages are good candidates for loan modification. Other parameters include:

-a stable income
-ability to afford the reduced rates
-clear bankruptcy record (i.e. the home should not be in bankruptcy)

Hardship letter
One of the first things the lender will require is a hardship letter, wherein you explain the nature of your hardship and justify your loan modification request. Valid reasons include medical emergencies, job loss or income loss, divorce, or a death in the family. Make sure to keep your letter factual and simple--agents go through thousands of letters a day and lengthy texts are likely to be pushed to the back.

When should one apply?
The simple answer is as soon as possible. Most people who need loan modification are already in danger of foreclosure, so time is of the essence. As soon as you miss a payment or foresee financial difficulty, you can call up the bank and start comparing your options. Remember, thousands of other borrowers are seeking a First Horizon loan modification, so the earlier you get started, the faster you can get back on track.

How are loans modified?
A First Horizon loan modification can come in any of several forms, depending on what makes the most financial sense. The most common types are:

-reduction of interest rate;
-change from an adjustable-rate to a 30-year fixed-rate mortgage;
-extension of loan terms;
-distributing late payments and penalties to monthly payments; and
-direct reduction on the principal (usually offered on homes with negative equity).

If the borrower doesn't qualify for loan modification, he or she can also look into other solutions that can minimize the damage or avoid foreclosure. One of the most common alternatives is a short sale, where the home is sold for less than the value owed and the proceeds paid to the bank as full payment. Consider working with a loan modification attorney to increase your chances of approval and learn more about your loss mitigation options.

Loan Modification Options for California Homeowners

Millions of homeowners have applied for and gotten loan modifications in the past year, mostly as a result of the Obama administration's loan modification program. But efficient as it is, few homeowners are aware that loan modification takes on many forms--and that each one suits a different kind of borrower. If you're working with a loan modification attorney California firm, it helps to know at least some of your options. Below are some of the most common forms of loan modification and how they can help you.

Interest rate reduction: This is the most common solution and often the primary approach of a loan modification attorney California. As the name implies, the lender simply cuts down your interest rate. To give you an idea of what it does, cutting the rate from 6% to 3% on a 30-year fixed-rate mortgage can reduce monthly payments by about 30%.

Loan term extension: A lender may also decide to extend the loan term rather than reduce the interest rate. They are generally more expensive for the lender and are thus given only in special cases, often when a sub-prime adjustable-rate mortgage reverts to the regular rate. Extending a 30-year mortgage to 40 years cuts down monthly costs by about 8%.

Financing of arrears: If a borrower has accumulated a large amount of late fees, the lender may decide to add them to the loan balance instead of charge them up front. This will make the payments temporarily higher, so it usually doesn't work for most borrowers. However, this is often a bank's first offer because it costs them less than most types.

Interest rate freeze: This plan is generally designed for people who have adjustable-rate mortgages where the introductory period is nearing its end. Before the interest rate jumps to twice the current rate or more, the lender "freezes" it so that it stays affordable. This costs more for the bank, however, so it takes a good deal of negotiation to get approved.

Principal reduction: Under this plan, the lender simply forgives part of the amount owed on the home. This generally makes the most savings for the borrower, but constitutes the biggest loss for the lender. To get a principal reduction, one may need a loan modification attorney California with specific experience to justify his cause.

Remember, not every plan works for every borrower, and sometimes one is simply better off with a different solution. To help you better understand your options, find a competent California Loan Modification Attorney and start working on your loan modification today.

Mortgage Modification: Pitfalls to Watch Out for

Mortgage modification is among the biggest industries to have sprung up from the real estate crash. With government backing and widespread participation from lenders, it has become the solution of choice of many homeowners looking to save their homes. But just like any financial offer, mortgage modifications have their share of weak spots. And when it’s your home at stake, you’ll want to put a bit more effort into your choices and make sure you play it safe. Here are some of the most common weak spots of loan modification and how they can be avoided.

You can only try once. Borrowers who get denied a mortgage modification cannot file a second application. However, surprisingly few borrowers know this, and send off their application kits with missing documents or poorly drafted letters. For a major investment like real estate, the last thing you want is to take chances.  

Plan your first attempt carefully—work with experienced professionals and don’t hesitate to invest in good service. And once you get your mortgage modification, make sure to go over all the rules. Sometimes, an attractive offer may actually include hidden costs that don’t really help, and may even push you further into debt.

Lenders don’t have anything to gain. While the program offers incentives to lenders who facilitate loan modifications, sometimes it still makes more financial sense for them to foreclose or agree on a short sale. After all, if you’ve been behind on your payments, they don’t want to risk losing more by keeping you on board. That’s why the requirements are tight and the rules for staying on the program are stricter than in regular loans. A good mortgage modification attorney can help you negotiate more efficiently. Look for ways to convince your lender that modifying your loan makes more sense than foreclosing.

There’s a high rate of fraud.
Mortgage modification companies have turned up by the thousands as the housing crisis tightened its grip on homeowners. But with this fast spread comes a real risk: thousands of homeowners have been tricked into paying companies that don’t really do anything to help. While the government has put in steps to prevent mortgage modification fraud, the best thing to do is still to choose wisely. Upfront payments are the first sign of a loan modification fraud - if someone asks you to pay before doing anything to help you, turn your back immediately and look for another company.

Countrywide Loan Modification: Things to Remember

Countrywide Financial, now known as Bank of America Home Loans, is one of the biggest players in the mortgage industry. In 2006, the height of the sub-prime mortgage boom, Countrywide loans accounted for 20% of all mortgages in the U.S. So it’s not surprising that as the housing market slowed, Countrywide loan modification has received a lot of interest from troubled homeowners. If you have a Countrywide loan that’s in default, this guide offers useful tips on getting a Countrywide loan modification and steering clear of foreclosure.

Proving financial hardship
One of the first requirements for a Countrywide loan modification is financial hardship. You must prove to the agent that your default was caused by inevitable circumstances, such as job loss, medical emergencies or military service. Everything should be contained in a hardship letter - a letter that explains the circumstances of your default and how the loan modification can get you back on track. Make sure to provide solid proof of your hardship: medical bills, contracts, or a confirmation from your employer.

Gathering documents
Many people who qualify for a Countrywide loan modification don’t make it past the trial period because of missing documentation. This has prompted the FHA to change its rules so that all the paperwork is required upfront. Before making that first call, make sure you have everything you need to paint a clear picture of your financial situation. Gather bank statements, credit card and mortgage bills, utility bills, tax forms, and income stubs for at least the past two months, and make sure they’re consistent with your claims.

Budgeting for the future
The bank will also want to know how you plan to stay on track after being given a Countrywide loan modification. The loan may be affordable at the moment, but will you be able to keep it up? Provide proof that you can maintain the loan in the long run, not just for the trial period. A loan modification attorney can help you write down your expenses and create a reasonable monthly budget. That way, you can set realistic goals and know when an offer makes financial sense.

Remember, a Countrywide loan modification is only as effective as you make it. Make the most of the system by following the rules and working with experienced professionals. With careful planning and execution, you can get your loan modified, regain financial stability, and start living on your own terms once and for all.

Loss Mitigation and Lending Under the FHA Rule Change

The Federal Housing Administration (FHA) made significant rule changes last week that can affect its current and future mortgage borrowers, as well as those seeking loss mitigation assistance from FHA-backed lenders. The changes involve an overall tightening of its lending standards, as the agency met a serious crunch as a result of the recession and housing crisis.

Higher cash-downs
The most significant change is the increase in the mortgage insurance premium to be paid upfront. Where borrowers previously paid 1.75% of the loan amount as the one-time premium, they now have to put down 2.25%. However, the option to pay insurance in monthly premiums is still open. The FHA is also proposing an increase in the cap for annual premiums, which is currently 0.55% of the loan amount.

Minimum credit scores
Previously, any borrower could get an FHA mortgage with only a 3.5% down payment. Under the new rules, however, borrowers would need a credit score of at least 580 to get these terms. Otherwise, the minimum down payment will be set at 10%. For homeowners currently receiving loss mitigation help, such as loan modification, this can affect their chances of getting home financing in the future.

Stricter terms
Homeowners who qualify under these new terms will also have to deal with tighter lending terms. Lenders may impose tighter penalties on missed payments and raise their standards for approving potential borrowers. Loss mitigation options may also be limited for people with poor credit to start with, and common solutions such as loan modification may be harder to obtain except under the government program.

Seller assistance
The limit for seller concessions—a form of financial assistance extended by sellers to their buyers—will be reduced to 3% from a previous 6%. This can be in the form of shared closing costs or upgrades to the property. The practice, which helps homeowners sell their homes without lowering their price, puts the FHA at greater risk by effectively inflating the home’s appraised value, according to Stevens.

Lender monitoring
The FHA will also put a closer watch on lenders, particularly the “outlier” companies that originated the sub-prime loans that put the industry under water. Stevens said he is focused on finding and stopping these lenders through intense monitoring procedures, including the online reporting of lender performance rankings. He has also urged Congress to take action against lenders whose loans do not meet FHA guidelines.

Real Cost of Home Loan Modification

For most homeowners, the general idea is that home loan modification will save them money and help them get back on their feet. What few of them know, however, is that there are costs associated with loan modification, and that sometimes the savings aren’t really worth the price. More importantly, few realize that not all home loan modification companies will give them their money’s worth.

So what really goes into a loan modification? How much of the price is worth paying if you’re a struggling homeowner? This guide shows you some of the costs you can expect.

Loan modification fees
First of all, there are fees for the loan modification itself—basically a fee for the lender who goes through all the trouble of opening your file and crunching your numbers. This amount is decided on by the bank, and according to recent studies, can range anywhere from $800 to $8,000. Make sure to ask for a breakdown of the costs—more often than not, there are lots of steps you can save on by doing them yourself.

Service fees
A lot of paperwork goes into a home loan modification, and with thousands of borrowers coming in at a time, the costs can quickly add up for the bank. While the services are less expensive than loan modification fees, they usually have to be paid upfront and may not be given back if the loan modification isn’t approved. Service fees can be as low as $400 in some banks and as much as $1,500 in others.

Third-party assistance
Many homeowners choose to work with a home loan modification attorney to negotiate with the bank on their behalf. This speeds up the process and takes a lot of weight off the borrower’s shoulders. However, it also tends to be expensive: companies charge anywhere between $3,000 and $8,000 for a home loan modification. If you think the time and effort it saves is worth the price, then working with a lawyer may be a good choice.

Besides the financial costs, there are also other consequences to consider before deciding to get your loan modified. For example, a home loan modification requires a heavy investment in time—as much as 12 hours of phone calls, filling out paperwork, and gathering financial documents. The effect of the home loan modification on your credit score and taxes should also be taken into account.

At the end of the day, it’s still a case-to-case basis: if you think the amount of time, effort and money you put in is worth saving your home, then a home loan modification is a good choice for you.

Mortgage Modification & Credit Score

Does a Mortgage Modification Affect Your Credit Score?

Mortgage modification has grown significantly more popular in recent months, a result of the housing crash and the spate of mortgage defaults that followed. But while it has helped a good number of homeowners, many are still reluctant to get a mortgage loan modification. One of the main reasons is its potential effect on one’s credit rating over the long term.

Sure, it’s not as damaging as a short sale or a foreclosure, which can stay on your record for up to ten years. But in a credit-conscious society, a drop in your credit score can have major effects in your lifestyle. So how does a mortgage modification really affect your credit score, and what can you do about it?

Circumstances of default
The first thing to keep in mind is that by the time you apply for a loan modification, there may already have been damage to your credit score. Because modifying means accepting less profitable terms, most banks require you to be at least a month behind (sometimes even more) to qualify for a mortgage modification. But each payment you miss ends up on your credit report, and even if a loan mod gets you back on track, it’ll still take a while to clear it up. So your first step should be to call up your lender and know their policies—and decide whether the new terms are worth the added delinquency.

Reporting policies
Another important factor is how your lender views the mortgage loan modification. Some will consider your loan reinstated and carry on as normal, but others can report it to the credit bureaus as a negative mark. So while you do save money upfront, you may have to pay for it with a sharp blow to your credit score. Banks rarely bring up this matter with their borrowers, so it’s your job to inquire - call up the Loss Mitigation department and simply ask how mortgage loan modifications are reported.

Your credit requirements
For some homeowners, a reduced credit score is actually a fair trade-off considering the money they’ll be saving. If you don’t plan on taking out new loans in the next few years, a mortgage modification may be worth the credit score drop. Consider your future credit requirements: will you need a new credit card, a car loan, or a student loan in the years to come? If you think you’ll need that score before you’re fully back on track, try negotiating with your lender or ask about more credit-friendly alternatives.

Understanding the Chase Loan Modification Program

Chase Bank holds a significant part of the country's troubled mortgages, and one of the ways they try to help is by participating in the government's loan modification program. Distressed homeowners can now get their Chase loans modified to more comfortable terms, allowing them to keep their homes and get their lives back on track. The bank offers a four-step guide to getting a Chase loan modification, which goes down as follows:

1. Gather your financial information. Your loan adviser needs a thorough picture of your financial situation to see whether you qualify for a Chase home loan modification. The documentation varies from case to case, but it always helps to be as detailed as possible - at the very least, it shows that you're willing to cooperate and have the initiative to do your part. The bank offers a printable Homeowner's Information Packet on its website, which can give you a better idea of what you need to do.

2. Wait for review and keep contact. Once the bank receives your application kit, agents will review your case and decide whether or not to give you a Chase loan modification. The length of time varies depending on how complex your situation is, and the bank may call you back to request additional information such as home insurance and appraisals. Make sure to stay in touch and respond to any requests as soon as possible - the more responsive you are, the sooner you can get your Chase home loan modification approved.

3. Review your terms. As soon as the bank reaches a decision, they will send you a letter outlining your new mortgage terms. This includes the official start date of your Chase loan modification, as well as your first due date. At this point, it helps to work with a real estate agent or financial advisor who can explain the terms more clearly. Make sure to read the fine print and understand each claim - even a slight misunderstanding can mean a difference of several thousand dollars over time.

4. Sign your commitment letter. Your Chase home loan modification becomes official when you sign the commitment letter and submit it to the bank. As per government regulations, you usually start off on a three-month trial period, during which you will have to provide additional paperwork and keep your payments regular. After the trial phase, provided you comply with the requirements, your Chase loan modification becomes permanent and you can start getting back on your feet.

Premier Home Loan Modification Attorney Launches Complete Loss Mitigation Services

CDLoanMod.com, premier loan modification attorney firm announces the launch of a complete home loan modification package designed specifically for homeowners in need of mortgage help.

Homeowners looking to take advantage of the government's Home Affordable loan modification program can now turn to CDLoanmod.com, a premier loss mitigation company specializing in mortgage assistance and foreclosure prevention. The California-based firm now offers a complete loss mitigation service designed specifically for homeowners in need of mortgage help.

CDLoanmod.com offers a step-by-step guide to home loan modification, starting with a free consultation where experts assess the borrower's situation and determine his or her financial needs. The first step is usually determining whether or not a mortgage loan modification is really the best choice, as some homeowners are better off with short sales or other forms of loss mitigation. ....

Details Here: Premier Home Loan Modification Attorney Launches Complete Loss Mitigation Services

Tips to Get The Best Home Loan Modification Deal

Start early.
In the past, only people who were seriously delinquent or already foreclosure could get home loan modifications. However, lenders have become more lenient as government support gave them more incentive to modify loans. Starting early shows the lender that you’re responsible and determined enough to keep your mortgage on track.

Get professional help.
You may be tempted to handle the loan modification on your own to save money, but getting help from the pros can give you a serious advantage. A loan modification attorney or representative can get you in touch with the right department, help you gather the right documents, and plan your application according to your lender’s policies.

Do your research.
Most loans today are either owned by one bank or shared by many as mortgage-backed securities. Generally, sliced-up loans are harder to modify because there’s more than one entity with an interest on the loan. Find out who owns your loan by calling your lender or checking government sites like Fannie Mae or Freddie Mac.

Provide accurate information.
One of the first requirements for a home loan modification program is a hardship letter. Here, you explain why you fell behind and how you plan to get back on your feet. Lenders will need to verify all your claims, so don’t try to embellish your story. As much as possible, back it up with documents such as pay stubs, tax forms, and bank statements.

Set realistic goals.
Many lenders will offer new terms that are only slightly better than your current one. Don’t settle for a less-than-ideal deal out of desperation. A good loan modification attorney can help you negotiate more effectively and get a home loan modification program that makes financial sense for both you and your bank.

Countrywide Loan Modification

How does a countrywide loan modification work and who can apply for it?

If you are delinquent with your mortgage payments time is definitely not on your side and you must act quick. All homeowners whom are in need of a countrywide loan modification will need to submit an application packet in order for them to be considered for a countrywide loan modification.

In order to be considered for this program, borrowers will need to prove that they can meet the guidelines for this program and approval criteria. The most important basics are:

1. Borrower(s) must live in the subject property as your primary residence
2. Borrower(s) monthly mortgage payment must be more than 31% of your gross monthly income
3. The borrower(s) mortgage must have been originated prior to January 1, 2009 and be less than $729,750
4. Borrower must be suffering a financial hardship and be able to prove it.

A Countrywide loan modification might be the help you need to keep your home, seek professional help if you don't understand this process.

Document Checklist for Loan Modification

By Loan Modification Attorney

Home loan modification may be the best way to get out of delinquency and save your home. But promising as it is, a loan modification can only work if you do your part in the process. Reports from major lenders show that most loan modifications fail because people don't comply with the requirements, particularly when it comes to paperwork. It may seem like a big task, but it's not as complicated as it seems - and it's always worth the effort to save your home.

Your home loan modification attorney can help you gather the documents you need to complete your application. To help you get started, here's a list of loan modification documents required by most major lenders.

Hardship letter
This is basically a letter explaining the circumstances of your default and how you have recovered. Make sure every claim can be backed up with solid evidence such as bank records, and don't exaggerate or play down details. Your home loan modification attorney can help you draft your letter to meet your lender's standards. Most lenders also require a photo ID and a copy of your social security card.

Proof of income
Steady income is one of the main requirements for a Home Loan Modification. Your bank will want to see proof that you'll be able to make your payments once the loan is modified. The general requirement is two months' worth of pay stubs and tax returns for the last two years, or if you're self-employed, your latest IRS filing plus proof of two months' worth of income. If you're getting child support, pension, or other sources of income, you'll need to provide proof of these as well.

Financial status
Your bank will want to know how your current finances are, and whether you have assets other than your home. Provide bank statements from your current accounts, including checking and savings. If applicable, you can also submit statements from your 401(K), profit sharing plan, IRA, or retirement account. Investment accounts such as stocks and bonds can also serve as proof of assets. Your home loan modification attorney can help you determine which ones will be most valuable in your case.

Mortgage documents
Most lenders will ask for your latest mortgage statement, as well as any recent correspondence you have received from them. If your mortgage payment doesn't include insurance and taxes, you may need to provide these statements as well.

Other bills
Not all lenders will require utility bills such as gas, electricity, phone and water, but it won't hurt to put in some as well. These will give your bank an idea of your monthly expenditure, which in turn helps them find a suitable home loan modification plan. Other useful documents include garbage pickup bills, home insurance policies, and homeowners' association dues.

About the Author:
The Author is a loan modification program specialist who writes on various Loan Modification related topics to help people understand the Loan Modification process and help them save their homes from foreclosure. For more helpful articles visit the author's blog at http://loanmodification2009.wordpress.com
Article Source: ArticleSnatch Free Article Directory

5 Tips Every Loan Modification Firm Talks About

Author: Loan Modification Attorney

Here’s a list of loan modification do’s and don’ts to help you avoid common pitfalls.

Do know your rights.
More than 80% of mortgage contracts violate one or more lending laws—and most of them go unnoticed. But these violations can be your biggest weapon in the loan modification process. 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.


Do 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.
Many people think that filing for bankruptcy can help them stop foreclosure. 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.


Do have a backup plan.
Not all people will 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.

If you can’t get your loan modified, talk to your lawyer about a short sale. 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.

Article Source: http://www.articlesbase.com/mortgage-articles/5-tips-every-loan-modification-firm-talks-about-702150.html

About the Author:
The Loan Modification Firm has all the experience and knowledge that is needed to get the job done. The Loan Modification Attorney can be reached at Law Offices of Marc R. Tow Just Call 800-738-1170 or visit Home Loan Modification
For a Free consultation talk to our Loan Modification Lawyer or go through the Loan Modification FAQs

What is Predatory Lending?

Author: CDLoanmod

Predatory Lending is a practice wherein a lender forces you into abusive or unfair lending terms. This can be in the form of high interest rates, unreasonable penalties, and hidden fees that aren’t part of the mortgage contract. Often, the contract is written out so that it’s all but impossible for the borrower to get out of it, even when it puts them under financial stress. In fact, studies show that most of today’s foreclosures and defaults can be traced to some form of predatory lending.

How do I know I’m a victim?

Many predatory mortgages are so subtle that the borrower doesn’t know it—until things get out of hand and they’re facing foreclosure. But the earlier you take action, the faster you can set things right. Here are some signs that tell you if you’re on the losing end of the deal.

• Excessive fees. Some fees can be financed but are not directly affected by the interest rate. This makes them easy to disguise or manipulate. Fees below 1% of your loan amount are usually no cause for concern, but if they add up to more than 5%, you should get suspicious. 
  
• Prepayment penalties. It’s common for lenders to charge you a penalty if you pay off your loan in advance. This is to make up for the interest they lose by letting you off early. The penalty is considered abusive if it’s effective for more than three years or is worth more than six months of interest.
• Yield Spread Premiums. This is a fancy name for the kickbacks your lender pays a broker to steer you into a high-interest or sub-prime loan. If you see this term on your bill, you’re probably paying more interest than is legally acceptable.
• Refinancing offers. If your lender offers you a tempting refinance package, think twice about it. It may be a form of loan flipping, a practice they use to generate income without giving you any tangible benefits. In the long term, the refinance can simply drain your equity and increase your monthly payments.
• Mandatory arbitration. This is one of the most common predatory practices. Mandatory arbitration is a provision in many contracts that bans you from going to court if you find the terms abusive. You’re basically being denied of your rights to justice.

What are my rights?

Most cases of predatory lending violate the Real Estate Settlement Procedures Act (RESPA) and the Truth in Lending Act (TILA). These laws were put in place to protect borrowers like you, but lenders continue to violate them every day and trick millions of people out of their money. The best way to protect yourself is to know these laws and the rights they give you.


For one thing, you always have the right to speak up whenever you feel you’re being cheated. Sometimes it’s as simple as calling your lender and asking them to explain vague or overly high charges. They may or may not give a useful answer, but it’s important to let them know you’re not being fooled.


Even if you’re already in foreclosure, there are always steps you can take to correct the situation and save your home. Find a competent lawyer to help you out and look for RESPA and TILA violations in your contract. In most cases, the laws can help stop foreclosure and even give pay you back in damages.


What can I do?

If predatory lending has put you in serious financial trouble, one thing you can do is apply for a loan modification. This is a simple way to restructure the terms of your loan into something more reasonable and helps you stop foreclosure. All you need to do is call a loan modification attorney, a person who specializes in talking to lenders and negotiating for proper mortgage assistance.

You will have to provide some documents so that they can properly assess your case, including a hardship letter that explains your situation. Your Loan modification attorney can use violations to negotiate better settlements with your lender. These may include misleading disclosures, exorbitant fees, or any of the signs mentioned above. Nearly every mortgage has at least one violation, but it takes a good understanding of the law to point them out.

After submitting your application, your attorney will start negotiating for better rates. When needed, they will use RESPA and TILA violations as leverage for getting the best loan modification offers. When it’s approved, you’ll receive a document detailing the mortgage modification, whether it’s a a lower interest rate, or some form of mortgage assistance. Once you approve it, you can keep your home and start paying off your mortgage at a comfortable pace.
About the Author:
The Loan Modification Department is composed of a team of attorneys, mortgage and real estate professionals, and hardship analysts. Our lead attorney is Christian M. Dillon, an experienced lawyer specializing in loan modifications and RESPA and TILA violation cases.
For a Free consultation talk to our Loan Modification Lawyer or go through the Loan Modification FAQs

Article Source: ArticlesBase.com - What is Predatory Lending?

When Home Loan Modification Fails: Your Alternatives

Home loan modification is no doubt the most popular way for homeowners to avoid foreclosure and stay off the streets. But let's face it, loan modification doesn't work out for everyone, and some people are simply better off with other forms of loss mitigation. Most people view these alternatives as "last resort" options, but that's not always the case. Depending on your situation, they may work better for you in the long term than loan modification.

That's why it's important to know your options. If you've been turned down or simply want a backup plan, here are some of the most popular home loan modification alternatives to help you out.

Forbearance plan: In this plan, your lender temporarily reduces your monthly payments so that you can get your finances in order. Once you're back on track, you pay off the difference and return to your regular payments. This is usually offered to people who have suffered temporary income loss, have been refused a home loan modification, and who can prove that they can improve their situation within 6 to 18 months.

Partial claim: In a partial claim, your lender gives you a loan to pay off your arrears and reinstate your mortgage. You will then continue paying your existing mortgage as is, and start paying the partial claim once the original loan is paid off, or when the property is sold. This method works best for people who have suffered a temporary hardship and have since recovered, but do not qualify for a regular home loan modification.

Short sale: A short sale, sometimes called a pre-foreclosure sale, involves selling your home for less than the amount owed on it, usually at a price that you and your lender have agreed on. The proceeds of the sale are then forwarded to your lender and considered full payment for the loan. This means you still lose your home, but unlike foreclosure, it doesn’t do as much damage to your credit score.

Deed in lieu of foreclosure: As the name suggests, the deed in lieu of foreclosure allows you to turn over the rights to your property to the bank instead of going through the whole foreclosure process (which ends up with the same thing anyway). This is usually done when home loan modification and other loss mitigation methods have failed to rescue the loan. This is sometimes called "voluntary conveyance of property rights".

Do it Yourself Loan Modification

Loan Modification is the primary option that the homeowners are looking forward to help them in these troubled times. American goverment is also promoting loan modification to help people facing financial hardships save their home from foreclosure.

Loan Modification process takes time and effort. Hiring a loan modification specialist is always an option but it doesn't always come cheap. That is why many people want to do it them selves is called a Do it Yourself Loan Modification process.

Do it Yourself Loan Modification is obviously cheaper, gives you better control of the outcome, and carries a lower risk of fraud. But it still pays to play it safe and make sure you do things right. If you're considering a DIY loan modification, here's a quick guide to help you make the right decisions.



Know your lender's policies.
Each lender has its own take on dealing with delinquent borrowers. For one thing, not all companies will accept applications before the interest increases or shifts to an adjustable rate. Some will only approve borrowers who have been delinquent for at least three months. Before showing up, make a call or talk to a representative to see if you qualify. Simply being informed can tell the lender that you're serious about getting back on track.

Request a loan modification package.
Most lenders have a written loan modification package that includes everything you'll need for a do it yourself loan modification, including a rundown of their policies and loan modification requirements. Call your bank and see if they can mail you a package. That way, you can fill out the forms at your own pace and have time to think over your answers, rather than do it hastily in front of a waiting representative.

Make an accurate financial report.
While a good hardship letter can help, lenders really just want to know that the hardship's over and you can start paying them again. So make a detailed report of your income and expenses, and back everything up with tax forms, pay stubs and W-2s. If you’ve lost income due to illness or job loss, make sure to note whether it's permanent or temporary.

Stay calm.
A typical loan modification representative has to deal with hundreds or even thousands of troubled borrowers every day, each one with a sad story to tell. The last thing they need is an irate caller who demands immediate service - it's the best way to get your paper to the bottom of the pile.

Document everything.
Major lenders have had recent trouble keeping up with vast volumes of loan modification applications, and among the main problems is when files get lost in processing. To avoid delays, record every call, letter and fax you send and receive, complete with the dates and titles. This is especially important for Do It Yourself loan modifications, as you don't have an agent to organize things for you.


Do It Yourself Loan Modification: FAQs

Is it your best option?
No two homeowners are in exactly the same boat, so it's hard to tell whether or not a loan modification is your only resort. Some people would fare better with a short sale, while others are better off refinancing. With a self loan modification, you don't have an expert to help you go through your options. At the very least, get to know what other solutions there are, so you know where to go in case your loan modification doesn't work out.

Can you afford it?
How do you know you'll be able to afford the loan modification itself? Again, since you don't have an expert guiding your every decision, you'll need to think over every step you take. Take the time to assess your finances and what terms you can afford, so you can set your goals properly. Don't forget to consider processing costs, your current debts, and other bills you’ll be paying alongside your mortgage.

How much will it cost you?
There are always costs associated with loan modification, whether you do it alone or with a professional team. Even when you come to your bank asking for financial help, most lenders will take every opportunity they can to make money - and the little costs do add up. Before even calling your bank, ask around and see how much it really costs overall, including the fees for paperwork and information requests.

What are your goals?
There's more than one way to go about loan modification, and it's important to know which approach works best for you. Do you want a lower interest rate, an extension of your term, or part of your principal waived? Your choice can affect everything from your credit record to your long-term financial plans. Before starting a DIY loan modification, set your goals right and plan to do it within a reasonable time frame.


Will you be able to keep up?
Finally, you need plan out your finances for after getting your loan modification. Although it may take up a big chunk, mortgage isn’t the only thing you pay for every month. Take an hour or two to write down all your monthly expenses and compare them with your current income. Most banks evaluate applications according to debt-to-income ratio, so doing this can also help your chances of getting approved.


Risks in Doing It Yourself

If you're thinking of doing a DIY loan modification, here are some of the risks you need to be aware of:

Long response times: Recent studies have shown that the average loan modification entails up to 50 hours of phone time, most of it spent on hold. Without a lawyer or representative who can get you directly to the Loss Mitigation department, you’ll often find yourself on queue with thousands of other callers. When time is of the essence - as is often the case when you're facing foreclosure - such delays can end up costing you your home. Try going directly to your bank’s office to see if you can apply in person.

Decision making: Loan modifications take a good deal of time and planning, and that's where professional help comes in handy. Unless you've had previous experience, a DIY loan modification will involve tricky decisions that can make or break your case. For example, how do you know what terms to ask for? Which goals make the most sense considering your financial situation? Even with a do it yourself loan modification, it helps to at least consult a professional who can steer you in the right direction.

Difficult negotiations: Bargaining with your lender is often the trickiest part of a do it yourself loan modification. Working with a lawyer adds credibility to your case and allows you to make stronger arguments, and that can make all the difference. A lawyer can also bring his market knowledge to the table, citing lending laws and violations that can help tilt the odds in your favor. With a Do It Yourself loan modification, your resources are limited, and you can be sure your lender will use it to their advantage.

Unfair deals: It's not uncommon for a lender to make offers that don't really improve your situation - at best, they'll only delay foreclosure by a few weeks. Banks are at least twice as likely to do this with borrowers on a do it yourself loan modification plan, as they often don't have the market knowledge to tell a good deal from the bad. With a good team on your side, you can negotiate for better terms and keep trying until you get the mortgage assistance you deserve.

Resources:
Loan Modification News
Obama's Making Home Affordable Program