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Questions About Mortgage Modification
I spent quite some time surfing the web to find the questions about getting a mortgage loan modification. By far the two biggest issues were why they take so long; and why there are so many crooks out there. I answered both those issues in my first article. You can get the general answers at the site listed below. Here, I publish the other frequent questions I’ve seen. For anyone who has confidence in the mortgage modification process, they should be just as important. But usually a representative has to quell the uproar before they get to the significant issues. And yes, there is an uproar. What about second or third liens? I read several blogs that reported second or third liens couldn’t be modified. That is absolutely false. It may be that the Home Affordable plan makes no arrangements for those modifications, but our attorney firms do indeed negotiate those liens also. No problem for us. Can Non-Owner Occupied investment property mortgages be modified? Yes they can. The only requirement is that your primary residence mortgage be in good standing. Can Homeowners in Default do a Loan Mod? Yes, any homeowner can apply for a loan mod. Typically however, lenders stall the process and are making loan modification more and more difficult. There is a critical time-sensitive element here that no one out there complaining about the mortgage modification process addresses. That is why our attorneys are so successful. There is a bunch of legal persuasion necessary in this process. If a homeowner is in foreclosure, our attorneys need a minimum of 12 days prior to the foreclosure sale to get the foreclosure stopped. The homeowner must know that a modification process does not automatically halt a foreclosure. Homes have been foreclosed on in the middle of a modification application before. One more reason to have an expert attorney in your corner. Please realize that each lender can have their own requirements. Some lenders require that the homeowner be 30, 60, and even 90 days behind before they will do a loan modification. This is becoming increasingly a rare occurrence, however. It's one more aspect that frustrates today's distressed homeowners with the banking system; but also one more reason to have an attorney in your corner. Your application could be shelved until the lender pulls their head out. When you do get your modification, your late payments will be tacked on to the end of the term. Make your payments for a year and your credit score will recover. Again, it’s the banks idea, not ours. What is the Default Rate of Homeowners Who have Done a Loan Mod? 80% of homeowners who do a loan mod WITHOUT an attorney group go back into default after successful completion of their loan modification. It appears this is because the terms negotiated were doomed to failure. 40% of homeowners who do a loan mod WITH an attorney group have gone back into default after successful completion of their loan mod. We can't speak for the effiency of those other attorneys. We can speak for our system and evaluation of the homeowner to afford the terms we negotiate for them. We see no reason for you to attempt modification twice. Why is this? We see that attorney groups do a much better job at loan modification with the lenders than the homeowner or investor can do for themselves. Attorneys get better interest rate reductions, better terms, and thus a better solution for the homeowner. My attorneys focus on getting affordable terms the first time. We are better than the national average because we accept files that we believe we can get a feasable solution accomplished. If we don't believe you will be able to make the payments that we are negotiating, we don't do the modification. There is another up and coming business centered around ‘Debt Settlement.’ The plain fact is that many of the mortgage loan modification clients who successfully modify don’t learn their lesson and take advantage of their second chance to their peril. There are hints of individuals with new successful loan modifications going out and jumping into the cesspool of extreme debt a second time. It does no good to get a second chance at clearing debt and then running up debt a second time. Why not just file Bankruptcy? Statistics show that once, and if, a bankruptcy is discharged; 80% of homes then lapse into foreclosure anyway. Bankruptcy as an alternative almost never works. It just stalls the inevitable. You're much better off pursuing a mortgage loan modification in the first place. Or explore a Short Sale if you have decided it’s better to abandon your home and mortgage. It’s obvious to me that covering all the ramifications and possibilities of settling an individual’s extreme debt will take numerous articles. The goal here is to answer all the questions out there. I’m having a good time finding them. I do hope the home-owner who reads this starts prioritizing their goals. Keep your home or short sell it. It doesn’t matter what the answers are, just as long as you don’t run away and do nothing. That is the worst of all decisions. Let someone help. I hope to hear from you Chris Dix www.Mortgage-Mod-Monster.com Article Directory: http://www.articledashboard.com Chris Dix www.Mortgage-Mod-Monster.com |
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