HAMP, HAMP 2, HARP, HAFA, and all the other loan modification programs that are offered… they can be confusing. There seems to be a new government program every week to help people stay in their homes.
Maybe you have grown frustrated and tired from a lack of success with your mortgage company. Or the horror stories you have heard may have stopped you from trying for a loan modification at all.
How many trial modification periods have you finished without a permanent loan modification offer?
How many times has the mortgage company or loan servicer lost your paperwork?
Imagine faxing your loan modification paperwork to the lender, for it to print out and feed right into a shredder below the fax machine where it was received.
That is the frustrating feeling you may be experiencing.
If you allow me to assist you in the loan modification process, you get a different approach. One with multiple solutions and strategies offered.
If you are in foreclosure, that lawsuit can be defended while helping with your loan modification. All too often, you are told that a modification is being processed, yet the bank starts or continues the foreclosure process when you were told they would stop. You may find yourself staring at an auction date for your home.
If you have other debt, or an underwater second mortgage, bankruptcy may be your best solution. There is a mortgage mediation program in our bankruptcy court. Its success for loan modifications has been significantly higher than outside of bankruptcy or in state court. The chapter 13 trustee states the success rate is over 80%.
Most loan modifications are geared towards mortgages on primary residences and restructured payments at 31% of your gross income (before taxes are taken out of your paycheck).
Added benefits may include: principal reduction, interest rate reduction, or waiving interest already owed.
But be careful of: extending the length of your loan (40 year mortgages) or balloon payments. I have seen loan modification offers that looked good at first glance, but were not a financial improvement for the client.
Most importantly, you should not let your mortgage company give you advice on your loan modification options. You should not let them talk you into going behind on your mortgage before you can be considered for a loan modification.
Did you know that some mortgage servicers get paid more if your loan is not current? Maybe that is why they told you to go behind in payments?
When issues of restructuring your mortgage and avoiding foreclosure arise, call me for legal advice on your available options.