Posts Tagged ‘Feldman’

Feldman Law Center – The Four Road Blocks That are Slowing Loan Modifications

Hope and optimism emanating from the announcement of the Obama Administration’s “Making Home Affordable” plan have been replaced by the cold reality that the program has gotten off to start deemed by industry watchers as “anemic”.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 home 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.

Feldman Law Center ? Five Steps to a Loan Modification

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 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 mortgage 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 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.

Visit us at http://www.feldmanlawcenter.com or call 800-588-0425.

Feldman Law Center ? Loan Modification FAQs

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 say 30 years to 40 years.  There could be a principal reduction of the loan amount.  There are other ways and you could also have any combination of options.  All of this is geared towards lowering your monthly payments and making your mortgage more affordable.

Q: How common are loan modifications?

A: As the real estate crisis continues, loan modifications are becoming increasingly common.  Loan modifications have been around for a very long time, but only when many people are in danger of losing their homes does everyone begin to ask questions.  Some think loan modifications are a new invention, or a scam, but people with mortgages have been getting loan modifications for quite a while.

Q: Does the federal of California state government play a role in loan modifications?

A: As so many people are suffering due to the economic crisis, President Obama and the California legislature have passed various laws pressuring lenders to offer loan modifications.  Lenders are not opposed to loan modifications, especially at a time when so many Americans are facing foreclosure.  A foreclosure hurts the banks’ bottom lines, and the industry has already seen hundreds of billions of dollars in financial loss due to the mortgage crisis.  California passed a law in 2008 promoting loan modifications, and in early 2009 President Obama wasted no time in helping people get the loan modifications they need to stay in their homes.  With Freddie Mac and Fannie Mae in serious trouble due to foreclosures (both of which are federal entities), it behooves the federal government to act that much quicker in saving people’s livelihood.

As you can see, there is a lot of information out there on mortgage loan modifications, and many people are unaware as to whether or not they qualify.  If you are facing foreclosure or facing another financial crisis, contact a qualified California home loan modification attorney today and get “in the know.”

Visit us at http://www.feldmanlawcenter.com or call 800-588-0425.

Feldman Law Center ? What to do About Interest Rates

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 principal reduction, it could mean that a loan for $500,000 could be lowered to $380,000, which would obviously have a huge impact on your monthly mortgage payments.  You could also get the term lengthened, and go from a 30 year mortgage to a 40 year mortgage.  An extra ten years would give you an extra 120 months to spread out your payments, which would also lower your monthly mortgage payments.

Interest rates were at an all time low in December, and stayed there for quite a while.  However, they’ve gone up and down and recently have reached their highest point in quite a while.  This sort of uncertainty is not beneficial to your current situation, especially if you’re facing foreclosure.  The federal government has instituted many plans to lower interest rates, including using $600 billion to get more buyers into the market in hopes of stabilizing home prices and reviving the economy.  However, the federal government’s effectiveness has gone up and down.

Loan modification attorneys can be a trusted ally in the battle to keep your home.  A California loan modification attorney can give you the lowdown on your situation, as well as the many options available to you.  While getting an altered interest rate may be to your benefit, it could also be that other options work better for your situation.  Lowering your principal balance could be an option, and it would also be a great long term solution.  Changing the length of the loan could also be a great long term option, and both of these would lower your monthly payments.

If you are facing a foreclosure, or if you are facing some other type of financial crisis, a loan modification could be your best option.  These days, almost everyone is watching the economy, waiting for their own situation to worsen.  Unfortunately, these are tough times, but a loan modification attorney could help out quite a bit.

Visit us at feldmanlawcenter.com or call 800-588-0425.

Feldman Law Center – Loan Modification ? The Truth, The Whole Truth, And Nothing But The Truth!

Loan modification and stop foreclosure services should be provided by a reputable attorney and NOT a loan modification company that boasts “in house attorneys” or “attorney based”. Most so called Loan modification experts are misleading, giving home owners false promises and misrepresenting their services. We have seen many of these loan modification companies send home owners loan modification examples similar to the way they sold mortgages. Making statements and emailing examples with guaranteed or proposed principal reductions and charging up front fees as well as trying to collect monies at the close if they obtain a loan modification agreement. Honestly, these types of loan modification companies should be reported to the DRE and the Attorney General’s Office.

We have reviewed several loan modification agreements from loss mitigation companies offering to help stop foreclosure and found they all highly recommend you have “your attorney” review ALL documents including their contract before signing. Why would a borrower hire an attorney just to review a loan modification company’s agreement before signing? In addition, why would they then again hire an attorney to review the final loan modification agreement? The simple truth is, this is advised so you fully understand what you are signing. You must read the fine print and know how to interpret the agreement.

Why not just hire an attorney in the first place to negotiate with your lender and review ALL the documents as well as counsel you with a plan of action. Attorneys providing loan modification services and real estate negotiations are not as easy to find. The Feldman Law Center offers a flat fee for loan modification services that is much less than most loan modification companies. We have reviewed several loan modification service agreements from companies that charge up front fees and found them poor at best. DO NOT PAY UP FRONT FEES TO A LOAN MODIFICATION OR LOSS MITIGATION COMPANY THAT OFFERS STOP FORECLOSURE OR LOAN MODIFICATION SERVICES. THESE COMPANIES SEND THEIR FILES TO OUTSIDE LOAN PROCESSING COMPANIES PRAYING FOR A RESULT. OUR LOAN MODIFICATIONS TAKE 3 TO 6 WEEKS, NOT 3 TO 6 MONTHS!

Loan modification services should be provided from a Law Office that has experience negotiating with mortgage loan servicing companies for a multitude of reasons. The Feldman Law Center in California has long standing relationships and a sophisticated approach with all the major lenders and mortgage servicing companies and proven results. To see for yourself or for more information about loan modifications call us today or visit www.feldmanlawcenter.com .

Feldman Law Center ? How Common is Bankruptcy?

Bankruptcy can be a dirty word, and an even dirtier experience.  If you are facing a dangerous financial situation where bankruptcy seems like an option, you could be dealing with quite a bit of fear.  Part of what leads people to make bad decisions is thinking they are the first and only people to go through difficult financial situations.   However, when it comes to bankruptcy, many people have faced these unfortunate circumstances.  Loan modification attorneys work with people everyday who are considering bankruptcy as an option, thinking that bankruptcy will help them keep their homes.

Most recently, former pro bowl quarterback of the Cleveland Browns Bernie Kosar declared bankruptcy.  After donating millions to charity, lending tens of millions of dollars to friends and family and going through a messy divorce, Kosar finally had to succumb to the financial pressures.  Kosar has been a successful businessman, a skilled athlete and more.  Yet, in the midst of his success, financial troubles haunted him.  Many people make a great deal of money over their lives, yet they still face difficult financial situations.  Kosar still has to watch over his daughter, try to keep a roof over their heads and figure out the next steps in his life.  Declaring bankruptcy can impact someone in ways they never though of, and Kosar is going through those challenges.  Getting a loan is difficult, getting a reasonable interest rate is impossible, and it can even impact your career.

If you are facing foreclosure, you may think that a bankruptcy is the way you should go.  Bankruptcy professionals tout the benefits of declaring bankruptcy; however, bankruptcy has various negative impacts on your credit history, your finances and your life.  Declaring bankruptcy will stay on your credit report for years, up to a decade in fact.  That means that every loan, credit card and line of credit you ever get will be impacted by your bankruptcy.

Bankruptcy is also sold as an option to avoid foreclosure.  However, there are much better options to not only stave off foreclosure, but keep your credit in a much better place.  A California loan modification could be an alternative to bankruptcy that keeps your credit rating from falling through the floor and your interest rates from going through the roof.

California loan modification attorneys work hard to discover what your options are.  Rather than living in a home you think you can’t afford, a loan modification attorney can help you stay in that home for decades and give your family the future (and present) they deserve.  Your hard work to buy the home should not have to be ruined by a bad economy or a subprime mortgage loan.  With a skilled California home loan modification attorney working with you, the chance to stay in your home and build a better tomorrow is a reality.

Bankruptcy might seem like an option to avoid foreclosure, but all it does is further bury you in a financial hole.  A loan modification could be the way you avoid foreclosure and get out of your financial nightmare once and for all.

Visit Feldman Law Center at feldmanlawcenter.com or call 800-588-0425.

Feldman Law Center ? What Do Higher Taxes Mean for Loan Modifications?

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, and meets additional criteria, they could be eligible for the government plan. The FDIC even has a “mod in a box” home loan modification program that they are hoping to enlist lenders in taking part in. Even if you don’t take advantage of the government’s specific plans, and are a homeowner in a volatile financial situation, you can still opt to modify your home loan.

With the help of the Feldman Law Center, you can have a better chance at protecting your financial future. You do not know when home loan modifications will start to taper off, how long you will be at your current job, or how your taxes could be changed in the future. If you are concerned about your adjustable rate mortgage, or a potential bankruptcy or foreclosure, you need the help of experienced attorneys on your side.

The federal government as well as many state governments, are talking about increasing taxes. What is the potential fallout of that? Given the uncertainty we are facing now, it is hard to guess what higher taxes might result in. But perhaps homeowners would have to pay higher property taxes, or perhaps additional fees and penalties could be added to home loan modifications.

Debates on the efficacy of taxes, both low and high, are inevitable. Chances are good that tax rates and structures will soon change. Will this be good for your current situation? Will you pay more, or less? Will you be a part of the population paying for the benefit of others, or will you be the beneficiary? Obviously, this depends on many factors. It doesn’t seem prudent to generalize widely about this. Every situation will end up being different.

It might not be a good idea to wait for a loan modification. They are available now. Call the Feldman Law Center today. We specialize in loan modifications and are ready to assist you today.

Visit us at feldmanlawcenter.com or call 800-588-0425.