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Testimonials |
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Loan Modifications and Other Loss Mitigation Options |
The goal is to fight the Foreclosure By Achieving A Loan Modification that Fits Your Needs |
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If your goal is to save your home, then a loan restructure is your option. We will try to effect a loan modification for you by following these steps:
1. We will have to perform an examination on your closing documents to detect the violations that might have occurred at the time of closing. Also we will examine if the loan has been securitized and whether the payments we applied correctly according to the mortgage and the note. |
2. You need to provide a valid reason for the bank to effect a loan restructure. This is known as "hardship". Reasonable examples of hardships are divorce, loss of income, loss of job, separation, health problems, etc.
3. Your financial situation has to be analyzed in detail. Most of the reasons homeowners get disqualified when they apply by themselves is that their financial worksheet is always erroneous.
This means that even though you are experiencing hardship, you still have to prove to the bank that your net income less your expenses gives you a surplus of $50-$200.00.
Additionally, your monthly mortgage payment divided by your gross income has to be above 31% if you are applying for a HAMP loan modification. If this ratio is less than 31%, then the HAMP program might not be available, but you still can qualify for other "in house" programs.
All these three steps have to be combined to effect a successful loan restructure. The more leverage you can create will work on your benefit. Most homeowners believe that they do not have to show banks the violations committed at the time of closing or at the time of transfer. That is wrong. The more leverage you create, the more advantageous it will be for your negotiation.
If your goal is not to save your property but to wipe out any deficiency that you might owe to the bank, our attorneys and realtors can help you with a short sale or deed in lieu of foreclosure.
Short sale means that the bank agrees to accept the sale of your house to another buyer at a price that is lower than the amount you owe. This price is shorter than your debt amount, but the bank accepts it and forgives the difference (forbearance of the deficiency). In that case, you can walk out of the loan without any further liability.
Furthermore, if the short sale does not work because there is no buyer available to buy your property, the next step will be to return the deed to the bank in lieu of foreclosure. At the same time, the bank will release the deficiency so you will not owe any balance.
There are many options available to you. |
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- Loan Modifications
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