Home Loan Modification – Can I Avoid Foreclosure by Modifying?
Posted on | August 28, 2009 | 3 Comments
The home loan modification process is being sought out by many home owners who want to avoid foreclosure. With foreclosure rates increasing every single month there are many families out there that need their mortgage modified just to stay in their home. Making mortgage payments is much more difficult than it once was because many home owners are getting paid much less than they were just a few years ago. Some home owners are not getting paid at all!
With this being the case, the government had to step in a create a plan to help people stay in their home and avoid foreclosure. If you look at the google trends chart of loan modification you will notice that this was not even a searched keyword phrase until the beginning of 2008. It is now one of the most heavily searched phrases in the housing industry as many home owners would like to see their monthly mortgage payment lowered.
There are many companies and lawyers out there that can help you get a home loan modification but it will come at a price. Do not fear the thought of a lawyer entering the process. These lawyers are actually looking out for you and trying to help you stay in your home. Sometimes desperate times call for desperate measures so understand that even though you may not want to work with a lawyer, they could ultimately be the reason that you keep a roof over your families head.
One good thing about this struggling economy is that many of the companies and lawyers who offer this service WANT your business. You have the opportunity to be highly selective as these firms have popped up all over the place and they are advertising very hard. You have probably seen ads on television every single time you turn on the news. Make sure to contact several of these companies and firms before you make a final decision.
Getting a home loan modification could definitely help you avoid foreclosure and keep your home. It will take some hard work and a lot of time and effort with a lawyer but it can be done. Please realize that this is not going to be a quick process so be prepared to invest some time into this project. It will be well worth it in the long run as it is likely to keep your home in your possession.
Author: Tiffany Mann
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3 Responses to “Home Loan Modification – Can I Avoid Foreclosure by Modifying?”
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August 30th, 2009 @ 3:18 pm
I don’t think most of you get that the man on the street, Joe worker is in a battle to remain in their home. Due to no fault of their own, except maybe the desire to improve ones station in life. We listened to the “experts” sell us their loans, and took the money based on inflated values of our homes, because the same experts were making a fortune selling us loans and refinancing those bad loans with new bad loans.
Then when the bottom fell out, those same experts went to the goernment and asked for help. We gave it to them, and now they are selling us the same adjusting loans packaged in a new box.
What happens when in five years the intrest rates start clmbing and the banks start forclosing again? If not five years what about ten?
The result is the same. If the government wanted to help the average Joe they would fix the intrest rates on all modified loans.
my opinion.
Dep
August 30th, 2009 @ 4:04 pm
Doesn’t it seem strange that THE ONLY ADVICE government officials give homeowners having mortgage payment difficulties is to tell them to go back to their lender, or through a HUD/FHA Counselor (and then back to the lender) to obtain Home Loan Modification help?
Let’s investigate this for just a moment.
During the home sales boom cycle the lenders became VERY GREEDY. As the opportunity for profits went up, the ethics/morality/legality of the loans they made went down. Later in this process loans were even being made to persons with no jobs and little, or no income at all!
Oh, and where were the government officials during the loan feeding frenzy? They turned their heads and DID NOTHING!
The reports from borrowers who have completed Home Loan Modifications using the suggested government processes have been streaming in lately. VIRTUALLY ALL OF THESE REPORTS CONCLUDE THAT THE LENDER HAS GIVEN THE BORROWER VERY LITTLE, OR NO HELP AT ALL!!!
But, the government continues to tell borrowers that its assistance and the help of the lender is the best help available! WONDER WHY? IT’S ALL ABOUT THE MONEY!
Using this same logic, the best way to prepare your income tax and maximize your deductions is to go to the IRS for help!! Why do so many people (even the same government officials we are speaking about) hire help to prepare their taxes? SINCE WHEN HAS FREE HELP EVER BEEN THE BEST HELP AVAILABLE?
So, what does the AVERAGE OUTCOME of a Home Loan Modification THAT YOU ACTUALLY PAY FOR look like?
The firm I work for has averaged monthly mortgage payments reductions from between 20 – 50% for up to 5 years and the conversion of the existing loan to fixed interest rate in the 4 – 5% range for the full balance of the term of the mortgage! These are AVERAGES THAT COME FROM OVER 200 COMPLETED MODIFICATIONS!!
Our firm is NOT ATTORNEY-BASED, but does have substantial knowledge about specific legal issues. Our firm has reasonable performance guarantees, a 100% Money Back Guarantee and reasonable program fees (well under $2,500).
So, let’s do the math. Say you are a homeowner who has negative equity on an existing 6.75% fixed rate 30 year mortgage of $200k, that has a payment with interest of $1,298. Using the average results shown above, your new payment at only a 30% modification is $909 for up to 5 years and you will save well over $80,000 in interest over the life of the note!! NOW THAT’S A MORTGAGE MODIFICATION WORTH THE FEES, DON’T YOU THINK??
Ok, so you don’t plan on staying in the house much over 3 years – using these same numbers you will save over $14,000 in monthly payments alone in that time!! IS THAT A MODIFICATION WORTH THE FEES?
The answer is simple folks – THE LENDER AND THE GOVERNMENT THAT REPRESENTS THEM DOESN’T WANT TO GIVE THE MONEY BACK!
September 1st, 2009 @ 1:02 am
Lenders are horrible. Between the outrageous hold times and their almost blatant refusal to modify loans unless an attorney is involved, its amazing that only 200,000 Americans are being foreclosed on each month…
Appalling…