Posted on January 16, 2012 in Mortgage

Mortgage Foreclosure is a complex process that involves many different aspects and elements. Consequently, foreclosure defense is an area of law that encompasses a variety of legal issues. There are several different workout options that banks, lenders and borrowers must be aware of and consider. Sometimes lenders will offer a mortgage loan forbearance to a homeowner who is experiencing a temporary or short-term hardship.

Essentially, a mortgage forbearance is designed to allow a homeowner who has fallen behind on mortgage loan payments to become current on those payments over a condensed period of time. With a forebearance agreement, the lender basically gives the homeowner an extension, typically 6 months, to bring their payments current.

Sometimes the homeowner is charged for the delinquent amount in equal monthly installments over the forbearance period but some lenders will require the borrower pay part or all of the delinquency upfront. In some situations the lender will agree to a temporary suspension or reduction of mortgage payments. If a lender is willing to agree to reduce or suspend mortgage payments, the unpaid payments will be added to the principal of the loan and will be due when the loan matures. Forbearance agreements are negotiated between the lender and the borrower.

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 Posted on December 30, 2011 in Foreclosure

There are many who do not want to leave their home even if they are underwater, meaning the amount owed on the mortgage is greater than the value of the home and property. One option for borrowers who really want to keep their house is a loan modification. A loan modification is when the bank alters the terms of a mortgage to reduce amount of the monthly payment. If the bank will give borrowers a better interest rate it may matter less that the house is underwater, especially if the home has unique characteristics or sentimental value. Sometimes borrowers are also able to obtain a reduction in principle through the loan modification process. It is not unusual to obtain 2% interest rate and extended terms of 40 years to help make mortgages more affordable.

Although anyone may apply for a loan modification, it is recommended that you consult a foreclosure defense attorney if a loan modification is a desirable option. Again, beware of “loan modification specialists” or other entities who will submit a modification application for a fee. Some of these are scams.

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 Posted on December 20, 2011 in Mortgage

For many borrowers, a strategic default is a good option. A strategic default is when the borrowers decides to stop making their mortgage payments. A strategic default generally is used for properties that are “under water”, meaning that the value of the property is lower than the debt owed. Why a strategic default? There are many reasons. For example, many banks will not consider loan modifications or other workout options unless the borrower is in default, meaning that the borrower has missed mortgage payments.

However, although a strategic default may be a viable option for many borrowers who are interesting in fighting back against the bank, there are many factors to consider. One such factor is that a strategic default will inevitably result in a negative credit rating. Those interested in pursuing a strategic default should consult an attorney for advice and further information.

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 Posted on December 10, 2011 in Loan Modification

It is true that banks claim to lose loan modification paperwork. It is also true that thousands of homeowners throughout our country are frustrated by lenders clogging the loan modification process by losing paperwork. It is the norm within the mortgage modification industry that the bank loses paperwork and homeowners must re-submit paperwork over and over again. Bank of America has even been sued for withholding government funds intending to save homeowners from foreclosure and a basis of the claim is the excuse of lost of documents. The allegations are that Bank of America intentionally deferred or wrongfully declined mortgage modifications that should have fallen under the Home Assistance Modification Program otherwise known as “HAMP.” Perhaps this is most frustrating because banks have advised people to stop
paying their mortgage so that they can potentially qualify for a loan modification.

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 Posted on December 06, 2011 in Loan Modification

It is important when applying for a loan modification to have proof that the paperwork was forwarded to the lender to the address or fax number provided. It can be a defense to a foreclosure claim if a lender is not in compliance with what is expected of them under the HAMP program.

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 Posted on December 02, 2011 in Foreclosure

It is not recommended anyone use an out of state service that claims it can help you through the foreclosure process as many of those are scams. Many of these services will also claim to be loan modification experts and offer to help negotiating a loan modification with your lender. Debt consolidation is another popular option to help in these troubled economic times but often fails. The best thing to do is contact a lawyer that works in the area of Foreclosure Defense and Strategic Default.

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 Posted on November 23, 2011 in Real Estate

Why has my property dropped more than 25% in value if housing prices have in general dropped approximately 25% over the past several years?

The answer maybe fraudulent bank appraisals – in many circumstances. Many appraisers were under pressure by banks and mortgage brokers to appraise properties at contract prices even though properties actually were not worth the appraised value. The consumer believed that the bank was willing to appraise the property out then it must be a good investment because why else would the bank loan money on the property. The consumer justifiably so relied on the banks sophistication to justify taking out loans.

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 Posted on November 04, 2011 in Foreclosure

In today's uncertain real estate market, many individuals and families are facing foreclosure. There are a variety of options available to those who are currently in foreclosure proceedings or are making high monthly payments on a mortgage that is for more than the value of the house or property. Some of the most common options are listed below:

1.Sell the house if you have equity. If someone has enough equity to sell and cannot afford the house it may be time to get something smaller or even rent. Economists are torn as to when and if the housing market is coming back and many homeowners have been thinking for years it will come back as value continues to decline.
2.Loan modification is a great option for many. It does generally require a default to get the lender to listen. The stories folks hear about the banks loosing paperwork and offering modification that are unrealistic and unreasonable are common. Loan modification is a good alternative if you qualify. You could have your rate potentially cut in more than half and in some circumstances the bank may even reduce principle. An attorney should be hired for the loan modification process that is experienced in loan modifications.
3.Short Sale works for many. A short sale allows you to sell the home and often times the bank will let you out of the debt but not all the time.
4.Deed in lieu of foreclosure should be one of the top options but unfortunately we find that banks are not very helpful and cooperative with this option.
5.Walking away from the house is a common option in todays troubled times. If you are going to walk away you should talk with an attorney as you may be making the wrong decision.
6.Renting the house could be an option or taking on a roommate can help with expenses.
7.Consent foreclosure is like a deed in lieu once the foreclosure process starts and the banks seem to be more interested in consent foreclosures then deed in lieu.
8.Combination of the above is often a good option as well.

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