Feldman Law Center – News by Feldman Law Center – California’s recently passed anti-foreclosure bill exempted most lenders in the state from its regulations with loopholes big enough to drive a truck through. Trumpeted by legislators as another layer of protection for homeowners, the bill exempted the largest lenders in the state including Wells Fargo, Bank of America, and JP Morgan Chase because they already had loan modification programs in place. Even for the rare lender that might have been out of compliance with the law, and then subject its regulations, adding a loan modification program would exempt it from the mandated 90 day postponement of foreclosure proceedings on delinquent homeowners. It was with amazement then that industry watchers marveled at the June foreclosure statistics which showed that foreclosures actually declined even as the state’s default filings increased. Many of the comments made it sound like lenders in California might actually be giving homeowners a break. ForeclosureRadar Chief Executive Sean O’Toole said, “A number of lenders appear to have self-imposed California’s latest foreclosure moratorium on themselves, despite having received an exemption from it.” The numbers definitely bear out that there could have been more foreclosures and more properties put up for auction in the month of June. An example of lenders’ restraint is Bank of America, which cut their notice of trustee sale filings by 48% from May to June. Seemingly puzzled by the decrease, Mr. O’Toole commented, “… (it’s) an outcome we are struggling to find an explanation for.” One thing for certain is that the ultimate explanation won’t have anything to do with lenders cutting homeowners a break because they feel sorry for them. It’s much more likely that what is being called a self imposed moratorium is based on the lenders choosing the lesser of two evils and the law of supply and demand. A look at a couple of statistics from the California auctions illustrates what the lenders are dealing with and why there aren’t more properties going to auction: * Of 22,291 foreclosures taken to auction only 2,687, representing 12% of the total, were sold. * Opening bids as set by lenders averaged 39.3% lower than the mortgage balance. * Almost half of the properties sold at auction were discounted by 50% or more. * Despite the steep discounts and the relatively limited supply, lenders were forced to take back 87% of the properties submitted for auction. Those are pretty grim stats given that the 22,000 properties that actually went to auction represents less than 20% of the amount that could have been submitted. Putting salt in the wound, the 2,600 properties that did sell were done at steep discounts and represent about 2% of the total of homes that could have been sold. A lender looking at those numbers would have no motivation at all to foreclose save for special situations where there is perceived value or a buyer waiting on the other side. Under normal circumstances, foreclosures typically run in an orderly three part process starting with the filing of a notice of default (NOD). The property then goes to auction at a trustee sale where it is either sold or taken back by the lender. The current bottleneck is occurring at part three of that process because homes aren’t selling and lenders are already flooded with properties in their REO departments. Continuing to foreclose at a brisk pace only adds to the existing backlog, building a supply that isn’t even close to being met by demand. In that situation the lesser evil is to leave the property in limbo and hope that borrowers can fix their mortgage problem or modify the existing loan. Leaving properties in limbo also benefits lenders by allowing them to carry properties on their books at a value of their choosing due to Congress’ relaxing of mark to market rules in the spring. A foreclosure sale forces the adjustment of valuation on properties sold at auction so even if properties were selling, it’s unlikely that lenders would be willing to accept massive write-downs at current valuations. In an environment where just about any action a lender can take results in a loss of some sort, moving as slowly as possible might be the only way to minimize damage on a daily basis. It could be that a write-down pace on 2% of the REO portfolio each month is a number that lenders can live with at the moment. Whatever the reason, the break that homeowners are getting right now is subject to change at a moment’s notice. For more information about loan modification ( mortgage loan modification) visit Feldman Law Center at www.feldmanlawcenter.com About Feldman Law Center: The Feldman Law Center was founded for the purpose of negotiating loan modifications on behalf of their clients. These negotiations have two major goals; to reduce monthly mortgage payments to a level of affordability for the homeowner and to either stop or avoid foreclosure proceedings. The mission at The Feldman Law Center is to provide the highest level of professional service while delivering the best possible result on each loan modification we negotiate on the behalf of the families we represent. Having negotiated over 500 attorney driven mortgage loan modifications, we realize that each homeowner’s situation is unique and that each modification may require a different approach than the one before it. To that end, we can always call on our 25 years of negotiating, knowledge, and real estate experience to provide the most optimal solutions for each family’s situation. While we are negotiating your loan modification with your lenders our friendly and compassionate team will keep you updated all the way on how the process is advancing. The people at The Feldman Law Center completely understand the stress of being behind in your monthly payments and the sleepless nights that can be brought on by an impending foreclosure. Rest assured that we will stand with you all the way through the loan modification process and that we are driven to get the best outcome possible for you and your family. If you are struggling with your monthly payments and worried about the threat of foreclosure, we can help. Call The Feldman Law Center today at 800-588-0425. Resources: Feldman Law Center: Profile – Business Exchange Press Release – The Feldman Law Center’s Code of Ethics and Practices Loan Modification – Feldman Law Center Feldman Law Center, Mission Viejo CA 92691 Feldman Law Center – The Cream Rises in Loan Modifications Feldman Law Center – Ten Tips for a Successful Home Loan Modification Feldman Law Center – Saving Thousands with a Loan Modification – Debt Settlement Combination Feldman Law Center – Mission Viejo, CA, 92891 – Citysearch Feldman Law Center – The New York Times gets it About Half Right Feldmanlawcenter.com – Feldman Law Center Company News Feldman Law Center Feldman Law Center Trulia Profile
Feldman Law Center – News by Feldman Law Center — If homeowners are holding on to one aspect of the Obama Administration’s Homeowner Affordability and Stability Plan, it’s “2%”. Of the multitude of calls that come in to The Feldman Law Center, a majority of them sound something like “How do I qualify for a 2% mortgage?” The promise of the program, in general, has been muted by its slow uptake by lenders and mortgage servicers and the incredibly slow response time for those that have applied with them for home loan modifications. Some homeowners are waiting months just to hear whether they qualify, while their foreclosure creeps ever closer. The one issue being proved out is that attorney driven home loan modifications are moving faster and have a much better chance of getting approved. Steve Feldman, Senior Partner at The Feldman Law Center agreed saying, “We took the time to understand the guidelines and we’re familiar with the different protocols at the various lenders, so we’re very comfortable with navigating the process.” The new program has carried with it the problems of learning the guidelines, integrating systems, and training staff, all of which have slowed the process to a crawl at many of the lenders. Fifteen lenders, in addition to FNMA and FHLMC, are participating in the program. That group lists the biggest lenders in the country including BankAmerica, JP Morgan Chase, CitiMortgage, and Wells Fargo but the banks are still very limited in how many applications they can process at any given time. Homeowners unfamiliar with guidelines and the lender’s interpretations of them are getting different answers from different people at the banks and requests for multiple submissions for paperwork as files are passed from one overworked processor to the next. Another impediment is that the bulk of original loans were packaged and sold to domestic and international institutional investors. The mortgages are handled by servicers that process payments, do billing, and keep records but don’t actually own the mortgage paper. This brings a third party into the negotiations that may or may not agree with the new terms of a modified loan. Congress recently passed a “safe harbor law” that gives servicers more autonomy in their loan modification approval process but whether that increases the number of completed modifications remains to be seen. Jobs cutbacks and unemployment are now the largest single factor causing homeowners to struggle with their payments. “Employment issues started with people that worked directly in the real estate and mortgage areas, and then spread to the people that relied on business from those sectors like furniture, flooring, etc”, Mr. Feldman said, “Now, with the economy as soft as it is, unemployment is spread across the entire job market. We’re seeing home loan modification applications from all walks of life.” Borrowers who have received foreclosure documents from lenders/servicers and those who may soon miss a mortgage payment are eligible for the Homeowner Affordability and Stability Plan. To be eligible, a borrower must live in the home, have a monthly mortgage payment larger than 31 percent of their gross income, bought their homes before January 1st 2009, and owe less than $729,750 on the mortgage. The cap of the size of the mortgage excludes many homeowners on both coasts and other affluent areas. Under the most basic guidelines of the plan, the monthly payments of those who are approved for a modification are lowered to the 31 percent limit. Lenders can do this by reducing interest rates to as low as 2 percent, by extending the term of the loan to 40 years or by deferring principal. The plan has provisions to cover some of the homeowner’s mortgage balance in order to reach the 31% of gross income level. The plan also rewards borrowers and lenders for modifications where payments are made for twelve consecutive months. About 100,000 homeowners across the country so far have been extended loan modification offers, according to Meg Reilly, a spokeswoman for the Treasury Department. “We are absolutely working to make things move faster and provide relief to more homeowners as soon as possible,” Ms. Reilly said. “We are encouraging servicers to staff up, establishing a hotline for homeowners, looking for new tools to expedite this process, working with communities to get the word out about resources available to homeowners.” JP Morgan chase has 15,000 homeowners in trial modifications and Wells Fargo has enrolled approximately 3,000. A trial typically lasts 3 months and reduces a homeowner’s mortgage payments while the home loan modification is being processed. If the homeowner is late or misses a payment the loan modification process is stopped and the homeowner is immediately disqualified. There are no statistics at this point covering how many homeowners have been disqualified from the trial aspect of the modification process. With a million foreclosure already filed through May, industry watchers agree that more needs to be done but there are additional challenges that may prevent homeowners from receiving home loan modifications. One of those challenges is an aspect of the program that allows servicers to run what is known as a net present value test, which determines whether a loan modification would be a better value for the mortgage investors than foreclosure. In places where property values have been hard hit and many people owe more than their properties are worth, servicers are more likely to opt for mortgage loan modifications because the homes would not bring in enough money in a foreclosure sale, if the homes could be sold at all. On the other hand, the net present value test would favor foreclosure in places like New York City, where values are still high and loan amounts are much higher than other areas of the country. There, servicers might have to give more concessions in a modification to bring them in line with homeowners’ current financial picture. If homes haven’t lost as much value, on a relative basis, and there are indications that they could be sold at auction then foreclosure would provide a better return for the investors. At issue, is that servicers are using their own criteria for the net present value tests and are not required to tell borrowers the details of how they run them and how they determine a home’s value. The calculations derived from the test put homeowners at the mercy of the investors in terms of a foreclosure decision but they have no idea on how the decision is made. The incentives provided by the program to servicers are intended, in part, to mitigate the results of the net present value tests but at the higher price ranges they don’t pay enough money to alter the outcome of the test. According to Steve Feldman, “This is one of the areas where we add the most value for our clients”, referring to the net present value tests, “A lot of homeowners trying to do this on their own are getting bogged down and disqualified at this point in their modification. Our process gets the homeowner through the net present value test as quickly as possible.” Homeowners on the brink of foreclosure may want to consider those words before walking through the labyrinth of home loan modifications on their own. For more information visit Feldman Law Center at www.feldmanlawcenter.com. Resources:Feldman Law Center: Profile – Business Exchange Press Release – The Feldman Law Center’s Code of Ethics and Practices Loan Modification – Feldman Law Center Feldman Law Center, Mission Viejo CA 92691 Feldman Law Center – The Cream Rises in Loan Modifications Feldman Law Center – Ten Tips for a Successful Home Loan Modification Feldman Law Center – Saving Thousands with a Loan Modification – Debt Settlement Combination Feldman Law Center – Mission Viejo, CA, 92891 – Citysearch Feldman Law Center – The New York Times gets it About Half Right Feldmanlawcenter.com – Feldman Law Center Company News Feldman Law Center Feldman Law Center Trulia Profile
Feldman Law Center – News by Feldman Law Center — At the Feldman Law Center, our loan modification attorney team keeps their eye on all loan modification news in order to properly inform and education every client we work with. Our California loan modification company works hard to provide top notch advice as well as a skilled legal ability to get you the best loan modification agreement possible. Recently, the federal government has been paying far more attention to the loan modification process than they have in the past. The Federal Deposit Insurance Corporation (FDIC) and the Federal Housing Administration have rolled out plans over the last year to combat the rising foreclosure proceedings. The FDIC loan modification program and the FHA loan modification program have received some heavy criticism from large financial institutions such as Moody’s Investor Services. In a recent Moody’s report, the FDIC loan modification program may eventually reduce cumulative losses for mortgage loans involved in the subprime mortgage crisis. The FDIC loan modification program is designed to help more people get quality loan modifications by creating a streamlined framework with key incentives, including: a loss-sharing arrangement for existing investors; and a thousand dollar stipend for every successful home loan modification. Ultimately however, Moody’s feels that the participation in the FDIC loan modification program might be limited, which weakens the effectiveness of the program. The FDIC loan modification program will have a lesser cumulative impact on the losses suffered by banks, lenders and homeowners. A California loan modification can be had by utilizing the skills of a California loan modification attorney. At the Feldman Law Center, our loan modification law firm can provide the kind of unique experience and highly sought after knowledge necessary to procure a loan modification. Working with any lender or federal agency involves lots of red tape and bureaucratic road blocks; but with a skilled loan modification attorney, you could overcome those challenges. Many people are interested in how a mortgage loan modification can help them change their financial situation and keep them in their house for the long haul. Throughout California, foreclosure signs are popping up in neighborhoods all over the state, and even in some areas that never thought it would happen to them. Even such neighborhoods as Beverly Hills, Bel Air and Walnut Creek are suffering from the subprime crisis, and everyone in the state is suffering as a result. California unemployment has reached double digits, and it could get much worse. A mortgage loan modification is an agreement between the debtor and the mortgage company to renegotiate the terms of the mortgage loan. This is done so that the borrower can have an affordable, reasonable monthly payment, allowing them to keep making payments over the long haul. A California home loan modification attorney can help the borrower negotiate with the lender, arrange the loan modification application and communicate with the bank or lender. With a loan modification attorney at your side, you can get the best loan modification possible and keep yourself and your family in your home. About Feldman Law Center The Feldman Law Center was founded for the purpose of negotiating loan modifications on behalf of their clients. These negotiations have two major goals; to reduce monthly mortgage payments to a level of affordability for the homeowner and to either stop foreclosure proceedings. The mission at The Feldman Law Center is to provide the highest level of professional service while delivering the best possible result on each loan modification we negotiate on the behalf of the families we represent. Having negotiated over 500 attorney driven loan modifications, we realize that each homeowner’s situation is unique and that each modification may require a different approach than the one before it. To that end, we can always call on our 25 years of negotiating, knowledge, and real estate experience to provide the most optimal solutions for each family’s situation. While we are negotiating your loan modification with your lenders our friendly and compassionate team will keep you updated all the way on how the process is advancing. The people at The Feldman Law Center completely understand the stress of being behind in your monthly payments and the sleepless nights that can be brought on by an impending foreclosure. Rest assured that we will stand with you all the way through the loan modification process and that we are driven to get the best outcome possible for you and your family. If you are struggling with your monthly payments and worried about the threat of foreclosure, we can help. Call The Feldman Law Center today at 800-588-0425. Resources: Feldman Law Center Trulia Profile Feldman Law Center: Profile – Business ExchangePress Release – The Feldman Law Center’s Code of Ethics and PracticesLoan Modification – Feldman Law CenterFeldman Law Center
Feldman Law Center – Press Release by Feldman Law Center: Much has been made of the 2% base rate included in the guidelines for the Obama Administration’s “Making Home Affordable” plan. It’s been well documented that the plan is off to a very slow start with current estimates of approximately 50,000 loan modifications in process. Less talked about, at least so far, is that the 2% headline interest rate of the plan may be unavailable to most homeowners seeking loan modifications that follow the plan’s guidelines. As the saying goes, “The devil is always in the details” and Making Home Affordable has a detail which goes by the name of the “Net Present Value” test. Many of the mortgages which were originated during the boom in real estate, including those considered to be toxic, were sold to investors on Wall Street, from pension funds, and insurance companies (like AIG). These investors didn’t have the infrastructure or experience to collect payments, prepare statements, etc. so they left the handling of those matters to loan servicers like Saxon Mortgage (now a part of JP Morgan Chase). These servicers interface with the homeowner on all matters, including home loan modifications. For that work, they receive a small percentage off of each of the homeowner’s monthly mortgage checks as their fee. An unintended consequence of the meltdown in real estate prices and skyrocketing default rates is there is now a conflict of interest between servicers and the investors that employ them. The foundation of that conflict is this; with monthly mortgage payments functioning as the lifeline of the servicers, their priority is to keep those payments going. To that end, granting loan modifications, even with drastic cuts in interest rates, is a much better outcome for the servicer than not receiving payments at all and/or having the home go into foreclosure. Aggressive loan modifications which benefit the servicers often hurt the investors by forcing markdowns on value of loans in their portfolio, hence, the conflict of interest. Having experienced this conflict prior to the unveiling of Making Home Affordable, investor groups insisted that the net present value test be added to the plan to protect their interests. A net present value (NPV) calculation works this way: 1) Determine the proposed monthly mortgage payment for the life of the modified loan 2) Calculate the total return in dollars over the life of the loan – monthly payment x 12 months x 30 years = total return 3) Estimate the value of what the foreclosed home would sell for at auction 4) The highest number between the total return and the estimated selling price at foreclosure determines what action will be taken. Motivated to keep properties generating monthly payments and out of foreclosure, servicers will negotiate the highest interest rate possible, within the constraints of the plan and what the homeowner can afford, to generate higher fees and to make sure that the net present value test comes out on the side of loan modification. With higher fees and the net present value test driving the negotiations in a loan modification, granting 2% interest rates becomes a very low priority and in some cases a deal killer for the servicers. Congress, hearing the cries from their constituencies, has backed the efforts of the mortgage servicers by passing the “Safe Harbor Law” in May. The law protects servicers from lawsuits filed by investors claiming that the servicers are acting in their own best interests in mortgage loan modifications, at the expense of the aggrieved investors. It also gives servicers more autonomy in their structuring their home loan modifications. The net present value test can present formidable challenges to the loan modification process due to many factors that are constantly changing. In New York City, for example, overall property values have remained relatively high but income levels have dropped. Limited by Making Home Affordable guidelines, mortgage payments cannot exceed 31% of the homeowner’s monthly income. The cap on payments can result in a net present value outcome that favors foreclosure on a property. Industry watchers have expressed concerns that the relative resilience in real estate values in the city could actually work against homeowners. At the opposite end of the spectrum are cities such as Las Vegas and Detroit where property values have dropped as a much as 80%. These are areas where the net present value tests favor mortgage loan modifications but homeowners are walking away, forcing the properties back to the investors. The next issue for investors wishing to foreclose is whether they can actually sell properties at auction. In California, approximately 17,000 out of 111,000 foreclosed properties went up for sale at the most recent auctions. Of the 17,000 properties, banks took back 85% of the properties when bids averaged only 59% of the outstanding loan balances. The lack of foreclosure sales across the country has led to a massive backlog of foreclosed properties that are either being kept off the market, put up repeatedly at auction, or for sale to private parties. With unfavorable outcomes on either side of the net present value test, it’s apparent that investors are deciding not to decide on either action. The advantage of leaving properties in limbo is that they don’t have to be marked to market until action is taken, a necessary concession from Congress granted to investor groups in March. That way they can carry the properties in their portfolios at values that don’t trigger capital requirements. If it all sounds like a house of cards, well, at least it’s house. About Feldman Law Center The Feldman Law Center was founded for the purpose of negotiating loan modifications on behalf of their clients. These negotiations have two major goals; to reduce monthly mortgage payments to a level of affordability for the homeowner and to either stop or avoid foreclosure proceedings. The mission at The Feldman Law Center is to provide the highest level of professional service while delivering the best possible result on each loan modification we negotiate on the behalf of the families we represent. Having negotiated over 500 attorney driven loan modifications, we realize that each homeowner’s situation is unique and that each modification may require a different approach than the one before it. To that end, we can always call on our 25 years of negotiating, knowledge, and real estate experience to provide the most optimal solutions for each family’s situation. While we are negotiating your mortgage loan modification with your lenders our friendly and compassionate team will keep you updated all the way on how the process is advancing. The people at The Feldman Law Center completely understand the stress of being behind in your monthly payments and the sleepless nights that can be brought on by an impending foreclosure. Rest assured that we will stand with you all the way through the loan modification process and that we are driven to get the best outcome possible for you and your family. If you are struggling with your monthly payments and worried about the threat of foreclosure, we can help. Call The Feldman Law Center today at 800-588-0425 or visit www.feldmanlawcenter.com Resources: The Feldman Law Centercan negotiate with your current lender if you are behind on your mortgage & need help. Feldman Law Centeris a experienced California … Feldman Law Center Blog on Trulia Feldman Law Center - Weebly Feldman Law Center - Merchant Circle Listing
Feldman Law Center - News by Feldman Law Center — Toxic mortgages approved for borrowers that couldn’t afford them may have started the meltdown in mortgages but the current wave of foreclosures is being fueled by rampant unemployment across the country. Evidence of that is now being provided by the acceleration of defaults in mortgages granted to high credit score borrowers, commonly known as prime mortgages. The report of May’s 9.4% unemployment rate is more bad news for lenders and their investors as the biggest sector of the mortgage market is now showing a default rate greater than that of the sub-primes. The rising unemployment rate, which has increased every month since the first quarter of 2007, is threatening to reverse any of the currently small gains being made in stabilizing the housing market. In many cases, unemployment can trump any mortgage relief effort short of foreclosure due to the fact that the best terms on a home loan modification, for example, are not going to work if the homeowner can’t write a monthly mortgage check to the lender. Regardless of the type of mortgage, the current default ratios are stunning. In total a record 12 percent of homeowners with a mortgage were behind on their payments in the first quarter, the Mortgage Bankers Association (MBA) said Thursday. The mortgages which started blowing up first, adjustable rate mortgages for sub-prime borrowers are still a significant factor in foreclosures. Today, almost half of all subprime ARMs are past due or in foreclosure. In states like New Jersey, Florida, and New York those rates exceed 55%. The riskiest tranches of the adjustable subprimes began defaulting en masse in the fourth quarter of 2006, starting a domino effect of sub-prime lender closures leading to the freeze of the credit markets in the third quarter of 2007. The general opinion at the time was that the defaults would be contained to the sub-prime market with the possibility of some spillover to the most marginal of the Alt-A loans. Instead, foreclosures and unemployment began working as mutually re-enforcing factors and defaults climbed the ladder of credit scores, reaching and accelerating defaults in the prime mortgages in the second half of 2008. Six percent of the fixed rate primes are now past due, in default, or foreclosure, an increase of 100% over this time last year. The dynamic between unemployment, foreclosures and their effect on the economy has led to the longest recession since World War II. Four states, California, Arizona, Nevada, and Florida represent almost half of new foreclosures and carry the highest number of delinquencies in fixed rate prime mortgages. It’s no coincidence that these states carry some of the highest unemployment numbers in the country as well. The relationship between unemployment and foreclosures now has industry watchers wondering whether the Obama Administration is spending its energy, and funds, on the right target. Their reasoning is that if unemployment continues to grow at the current pace, the “Making Home Affordable” plan won’t matter because homeowners are not going to be able to afford even the best offers for a home loan modification if they’re not working. A better approach, they say, would be for the government to take a regulatory role on the mortgage market, develop an accreditation program for law firms doing home loan modifications, and put their main focus on boosting the economy. About Feldman Law Center The Feldman Law Center was founded for the purpose of negotiating loan modifications on behalf of their clients. These negotiations have two major goals; to reduce monthly mortgage payments to a level of affordability for the homeowner and to either stop or avoid foreclosure proceedings. The mission at The Feldman Law Center is to provide the highest level of professional service while delivering the best possible result on each loan modification we negotiate on the behalf of the families we represent. Having negotiated over 500 attorney driven mortgage loan modifications, we realize that each homeowner’s situation is unique and that each modification may require a different approach than the one before it. To that end, we can always call on our 25 years of negotiating, knowledge, and real estate experience to provide the most optimal solutions for each family’s situation. While we are negotiating your mortgage loan modification with your lenders our friendly and compassionate team will keep you updated all the way on how the process is advancing. The people at The Feldman Law Center completely understand the stress of being behind in your monthly payments and the sleepless nights that can be brought on by an impending foreclosure. Rest assured that we will stand with you all the way through the loan modification process and that we are driven to get the best outcome possible for you and your family. If you are struggling with your monthly payments and worried about the threat of foreclosure, we can help. Call The Feldman Law Center today at 800-588-0425 or visit www.feldmanlawcenter.com.
Feldman Law Center – News by Feldman Law Center – -If you check the stock market on Monday, people will be saying the market is up and everything is looking better financially. If you check the market on Tuesday, all economists will be in complete agreement that the world is going to end in 48 hours. What does this mean for you? No one, not even the “experts,” have any clue where the economy is going or how long it will take for the country to climb out of this “Great Recession.”
Real estate has been a nightmare for many people as well. One minute the housing markets look great, and yet with unemployment at a 25 year high and climbing, no one has any idea what the future will bring. This affects available homes, available credit, interest rates and more. There is very little sure footing in today’s market, but with a loan modification, you could be closer to security than many other people.
Five Steps
Here are five steps you can take to get a loan modification:
1. Do your homework – Read as much as you can about loan modifications. While at work, while watching the ball game, while you are eating lunch – read and learn about loan modifications. This will only enhance your understanding of the industry and give you a sense of what a loan modification can do for you.
2. Get your ducks in a row – It is important to have your financial paperwork in order to get the mortgage loan modification that is going to work for you. That means tax returns, pay stubs, bank slips and more, all from the last few years. A bank is going to want to see your financial history, as well as your current financial situation in order to make a decision.
3. Talk to your spouse – You cannot get a home loan modification without having the assistance and agreement of your spouse. While your financial situation may be dire, you must work together in order to make this happen.
4. Find a loan modification company – You can always attempt to get a loan modification on your own, but having a highly qualified loan modification attorney working with you might be the necessary help you need. Knowing how to fill the application out, how to file the paperwork, how to organize the communication between your side and the lender and much more can all be helped by a loan modification attorney. You wouldn’t go to court without an attorney, so do not try getting a loan modification without an attorney.
5. Calm yourself – It is important to be patient and understanding with yourself and your situation while trying to get a mortgage loan modification. It can be very easy to overreact and lose your calm. In fact, more marriages end because of financial troubles than for any other reason. So, giving yourself, your spouse and everyone else around you some slack will keep your relationships and your life in a good place.
Contact a loan modification attorney today, and begin the process of staying in your home.
About Feldman Law Center
The Feldman Law Center was founded for the purpose of negotiating loan modifications on behalf of their clients. These negotiations have two major goals; to reduce monthly mortgage payments to a level of affordability for the homeowner and to either stop or avoid foreclosure proceedings. The mission at The Feldman Law Center is to provide the highest level of professional service while delivering the best possible result on each loan modification we negotiate on the behalf of the families we represent.
Having negotiated over 500 attorney driven loan modifications, we realize that each homeowner’s situation is unique and that each modification may require a different approach than the one before it. To that end, we can always call on our 25 years of negotiating, knowledge, and real estate experience to provide the most optimal solutions for each family’s situation. While we are negotiating your loan modification with your lenders our friendly and compassionate team will keep you updated all the way on how the process is advancing.
The people at The Feldman Law Center completely understand the stress of being behind in your monthly payments and the sleepless nights that can be brought on by an impending foreclosure. Rest assured that we will stand with you all the way through the loan modification process and that we are driven to get the best outcome possible for you and your family. If you are struggling with your monthly payments and worried about the threat of foreclosure, we can help. Call The Feldman Law Center today at 800-588-0425 or visit www.feldmanlawcenter.com
Resources:
Feldman Law Center: Profile – Business Exchange
Press Release – The Feldman Law Center’s Code of Ethics and Practices
Loan Modification – Feldman Law Center
Feldman Law Center, Mission Viejo CA 92691
Feldman Law Center – The Cream Rises in Loan Modifications
Feldman Law Center – Ten Tips for a Successful Home Loan Modification
Feldman Law Center – Saving Thousands with a Loan Modification – Debt Settlement Combination
Feldman Law Center – Mission Viejo, CA, 92891 – Citysearch
Feldman Law Center – The New York Times gets it About Half Right
Feldmanlawcenter.com – Feldman Law Center Company News
Tags: mortgage loan modification, loan modification companies, home loan modification, loan modification agreement, loan modification company, hardship loan modification, California loan modifications, fdic loan modification, home loan modifications, loan modification programs, loan modification advice, loan modification help, loan modification process
Feldman Law Center – News by Feldman Law Center — Hope and optimism emanating from the announcement of the Obama Administration’s “Making Home Affordable” plan have been replaced by the cold reality that the program has gotten off to start deemed by industry watchers as “anemic”. After almost four months since President Obama first announced the $75 billion mortgage rescue effort, the administration continues to tweak the program in an attempt to reach its originally stated objective of saving up to 5 million homeowners from foreclosure. Standing between the anemic start and lofty goals of the program are four roadblocks:
1) Overloaded loan modification processors – While the specifics of the plan were released in the first week of March, lenders couldn’t start handling applications until systems were re-programmed and processors were brought up to speed, which took an additional four to six weeks. Processors were immediately buried with stacks of applications that had been accumulating during the conversion to the new guidelines. Participants in the process report that servicers are still digging out from the initial rush as applications continue to flood their desks. Troubled borrowers, many backed up against the possibility of foreclosure, have become increasingly frustrated to the point where they have abandoned the process to retain their own legal assistance. JP Morgan Chase spokesman Tom Kelly recently said of the ramp-up, “It’s an enormous task. We’re moving quickly, although not as quickly as an individual might wish.”
2) Investors – The massive sums of money that supported the real estate/mortgage boom came from investors on Wall Street, pensions, and other institutions. Servicers say those investors are now balking at some of the terms being presented when a loan needs to be modified. The net present value test, a little known aspect of the plan, allows for a calculation to determine whether the greater return for investors will be achieved via modification or foreclosure. In the modification versus foreclosure decision, investors have been threatening lawsuits against servicers when the servicers are deemed to not be acting in the best interests of their investors. The threatened legal action adds another layer to the mortgage loan modification process and can draw out the approval process even more. The “safe harbor” bill recently passed by Congress was intended to alleviate that logjam by protecting servicers from investor lawsuits but it’s likely that lawsuits will arrive on the servicers doorsteps anyway, safe harbor or not.
3) Lenders – Lenders are caught in a three sided bind between the above mentioned borrowers/investors and their own capital structure. No longer required to mark their loans to market, they can carry the value of the loans in their own portfolios at values they can rationalize, whether factual or not. Loan modifications could generate reviews of portfolio values, and nobody wants to go there in the current environment.
4) Unemployment – According to John Taylor, head of the National Community Reinvestment Coalition, “Unemployment is becoming a bigger factor than almost anything.” When sub-prime mortgages started blowing up it was attributed to the risks inherent in lending to lower quality borrowers. Increasing unemployment, in addition to taking down the lower quality borrowers, is now hitting prime mortgages. In fact, primes are now going into default at a much faster rate than sub-primes as previously solid borrowers are now being affected by the contracting economy.
Of the four roadblocks, the toughest barrier is unemployment due to the fact that, regardless of credit scores, if a homeowner doesn’t have a job a loan modification isn’t going to help. Short sales, cash for keys, or foreclosure become the next options. At that point every side of the three sided bind ends up on the losing end.
Resources:
Feldman Law Center: Profile – Business Exchange
Press Release – The Feldman Law Center’s Code of Ethics and Practices
Loan Modification – Feldman Law Center
Feldman Law Center, Mission Viejo CA 92691
Feldman Law Center – The Cream Rises in Loan Modifications
Feldman Law Center – Ten Tips for a Successful Home Loan Modification
Feldman Law Center – Saving Thousands with a Loan Modification – Debt Settlement Combination
Feldman Law Center – Mission Viejo, CA, 92891 – Citysearch
Feldman Law Center – The New York Times gets it About Half Right
Feldmanlawcenter.com – Feldman Law Center Company News
About Feldman Law Center
The Feldman Law Center was founded for the purpose of negotiating loan modifications on behalf of their clients. These negotiations have two major goals; to reduce monthly mortgage payments to a level of affordability for the homeowner and to either stop or avoid foreclosure proceedings. The mission at The Feldman Law Center is to provide the highest level of professional service while delivering the best possible result on each loan modification we negotiate on the behalf of the families we represent.
Having negotiated over 500 attorney driven loan modifications, we realize that each homeowner’s situation is unique and that each modification may require a different approach than the one before it. To that end, we can always call on our 25 years of negotiating, knowledge, and real estate experience to provide the most optimal solutions for each family’s situation. While we are negotiating your loan modification with your lenders our friendly and compassionate team will keep you updated all the way on how the process is advancing.
The people at The Feldman Law Center completely understand the stress of being behind in your monthly payments and the sleepless nights that can be brought on by an impending foreclosure. Rest assured that we will stand with you all the way through the loan modification process and that we are driven to get the best outcome possible for you and your family. If you are struggling with your monthly payments and worried about the threat of foreclosure, we can help. Call The Feldman Law Center today at 800-588-0425 or visit www.feldmanlawcenter.com
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