In today’s unpredictable economy, you can’t take anything for granted. You don’t know if you’ll have a job tomorrow, if you will be asked to take an unpaid vacation, or if the interest rate on your home mortgage will spike. What if gas prices soar? Will a trip to the grocery store for your family’s weekly necessities cost more? So much of the territory that our country, and the world, is venturing into is unchartered.While we don’t know what the future holds, we can try to plan appropriately for it. How can you prepare yourself for future expenses, save money, or spend less in your current situation? Many wise people are considering these questions now.In addition to planning for the future, we can also take advantage of the opportunities that we are offered today. One opportunity being offered to many troubled homeowners is a home loan modification.President Obama’s housing plan involves offering many people a chance to modify their home loans. If a distressed homeowner lives in his or her property, falls within the requirements for the amount they owe, ... Read more..
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After months vehement opposition to most of what the Obama administration has tried to push forward to help struggling homeowners, mortgage investors have thrown their support behind one of the biggest failures of the Bush Administration. The Federal Housing Administration's Hope for Homeowners (H4H) program, estimated at its outset to be able to help 400,000 homeowners, only originated one new loan. As he Obama Administration tried to breathe life back into H4H, the mortgage investors saw some potential and started coming around. Part of what they liked was taxpayer money bailing them out of bad investments. The spin on H4H is that it aims to ease a struggling borrower's debt burden by allowing for a principal reduction to bring a homeowner to approximately even between the size of the mortgage and the value of the home. The mortgage investors would forgive some of the borrower's debt as part of the principle reduction and then get cashed out by receiving a check from Treasury for something less than the home's current value. Being able to roll up to the government sponsored ... Read more..
President Obama’s historic presidency began in the midst of possibly the worst financial crisis since the Great Depression. The housing and real estate markets seemingly jumped off of a cliff, taking with it the financial stability of every other industry. Obama passed sweeping legislation to help homeowners make payments and deal with the financial crisis while staying in their homes. This plan in turn helps lenders who need homeowners to continue making their mortgage payments. A key part of this plan is the loan modification process, which now helps homeowners even more.The federal government is relying heavily on loan modifications with the Helping Families Save Their Homes Act of 2009 and Making Home Affordable Program. Under these programs, current borrowers who are at imminent risk of default may qualify for a loan modification as long as the immanency of the default is tied to a specific event. By specific event, they mean a pending interest rate increase in your mortgage loan or a demonstrable change in economic situation such as your spouse losing his/her job or a severe medical condition.Ultimately, ... Read more..
When people hear about loan modifications, they learn that one of the most common ways to lower your monthly mortgage payments is to adjust your interest rate. For example, if you have an adjustable rate mortgage, you could get your interest rate lowered for some period of time. You could also switch from an adjustable rate mortgage to a fixed rate mortgage, and this way not only would your mortgage payment be cheaper, but you could know what it will be over the long haul.The challenge is, adjusting your interest rate, or setting your interest rate permanently may not be your best option. It may seem simple, but you could have other choices available to you that you are not aware of. One of the benefits of having a loan modification attorney working with you is that they may be aware of options you are not aware of.For example, a loan modification does not necessarily have to involve an interest rate adjustment. Other loan modification options involve principal reductions and lengthening the term of your loan. If you get a ... Read more..
You may have a number of questions regarding loan modifications and how they can help you avoid foreclosure. Loan modifications have been all over the news lately. President Obama has passed major, historic legislation giving homeowners more access to loan modifications; the California legislature has also passed legislation promoting loan modifications.Here are some questions and some answers for loan modifications:Q: What is a loan modification?A: A loan modification is an agreement between a lender and a borrower to change the original terms of a loan in order to make payments more affordable. For homeowners, a California loan modification could be a way to stay in their home. A loan modification attorney can be a major asset when trying to get a loan modification.Q: How can a loan modification be accomplished?A: There are actually a number of different ways to get a loan modification. The interest rate on a loan can be either lowered temporarily, or permanently set at a lower rate. An adjustable rate could be set to a fixed rate. The term of the loan could be changed, from ... Read more..
