Tag Archives: Modification

Who Qualifies For a Loan Modification?

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During these trying times when mortgages, real estate prices and other financial arrangements are completely unstable, many homeowners are asking how they can qualify for a loan modification.  Both the FDIC and the federal treasury are strongly supporting loan modifications as a way to keep people in their homes.  Lenders don’t want to take back anyone’s home, homeowners obviously want to stay in their homes and the federal government wants what the people and lenders want.

Many people who are trying to keep their homes are asking questions such as:  who qualifies for a loan modification?  Homeowners throughout California who are trying to stay in their homes are interested in the loan modification process and want to learn more about California loan modifications.

Below are some basic tips on how to recognize whether or not you are eligible for a California loan modification (or loan modification in another state).

Borrowers (those with a mortgage) struggling to stay current on their mortgage payments may be eligible for a loan modification if their income is not sufficient to continue to make their mortgate payments and they are at risk of imminent default.  California homeowners may be eligible for a loan modification even if they are not currently behind on payments.  Several factors may cause this scenario:  loss of income; significant increase in expenses; or an interest rate that will resent to an unaffordable level.

Here are three ways to know if you qualify for a California or federal loan modification:

1).You occupy your house as your primary residence

2).Your monthly mortgage payment is greater than 31% of your monthly gross income

3).Your loan (mortgate) is not large enough to exceed current Fannie Mae and Freddie Mac limits

Loan Modification

A Loan Modification is a permanent change in one or more of the terms of a mortgagor’s loan, allows the loan to be reinstated, and results in a payment the mortgagor can afford.   You may be seeking a California or federal loan modification if you are having trouble paying your mortgage.  The key is to find a qualified loan modification attorney who understands loan modification law.

Loan modification attorneys will tell you that there are only three possible outcomes when a homeowner cannot make the payments on their mortgage:

1.The property goes back to the lender through a foreclosure or a “deed-in-lieu” and the property goes back out on the market.

2.The homeowner sells the home in a conventional sale or a “short sale” and the home goes back onto the market.

3.The lender (bank or mortgage company) modifies the loan so that the homeowner can make the payments and the home does not go back onto the market.

The loan modification option is the best solution, by far, for the lender, homeowner and country in almost all situations.  The loan modification process does not require any appraisals, credit reports or title reports because a loan modification is simply a renegotiation of the terms of an existing note.  A loan modification can consist of a reduction in the interest rate, a change from a fully amortized to interest only payments for a period of time, an extension of the loan term, a reduction of the principal balance of the loan and/or a resolution of any arrearages.

Loan Modifications are the best overall solution for the following reasons:

1.Families are kept in their homes through the loan modification process

2.Los modifications ease the financial pressure that causes stress in families

3.Loan Modifications have the least cost solution to the lenders, which is why many lenders are willing to do them

4.Loan modifications keep the house off of the market and therefore each loan modification represents a step closer to the solution to the current economic crisis.

5.Loan modifications are a market solution, meaning they aren’t taking taxpayer dollars.

6.Loan Modifications can be done quickly if you have an experienced loan modification attorney.

Loan Modification, Foreclosure Assistance, & Foreclosure Help by The Feldman Law Center

Loan modification is the focus on our website, however; we do provide our clients with proper legal advice and share expertise in the areas of real estate transactions, mortgage negotiations, loan modifications and debt settlement. The Feldman Law Center, a Loan Modification Attorney, was founded by Steven C. Feldman who has been licensed by the State Bar of California for over 25 years. We are consumer and homeowner advocates that will protect you from home foreclosure with our detailed loan modification program. The Law Offices were established to focus on real estate matters that include debt negotiation, predatory lending violations, settlements and loan modification. We are here to help stop foreclosure, and fight mortgage fraud.

Loan Modification Software: – Catch The Feasible Terms And Conditions

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Are you familiar with the term loan modification software? Basically a loan modification is a request which is made by the borrower to lender for making some modifications in the terms and conditions, so that the loan payments can become more affordable and beneficial. Mainly, loan modification term is concerned with many factors like lowering of the rate of interest, extension of the loan repayment and loan amount. These modifications give effective results to the borrowers and they can easily fulfill their requirements and demands.

Loan modification software is mainly used for making some modification or changes in the terms and conditions. Lenders keep in mind their benefits and profits, only then they offer the loan amount to the borrowers. More of the time, borrowers are dissatisfied with the offered loan amount and repayment duration. At that time, with the help of loan modification software, they can make the alterations. This process show effective results on those people, who are struggling to make repayments, do not have equity, facing higher rate of interest and a person in foreclosure etc.

Usually, loan modification is a permanent change which is made in the terms and conditions for the benefit of homeowner. This process makes the loan repayment mode easy and affordable, so that the borrowers can effortlessly repay the loan installments. Well, for applying the loan, borrowers are required to offer some documents like income proof, completely accurate financial statement that includes details of income and expenses. On the basis of these documents, loan amount is approved and it decides that the borrowers are eligible for the loan or not.

Loan modification software loans are secured by nature and are generally used by the homeowners. This loan option provides numerous facilities like reduces high interest rate; provide flexible repayment duration and affordable loan amount etc. to the borrowers. Nowadays, it has become more popular and famous among both the loan modification companies and homeowners.

Credit history is considered a strong factor for availing the Loan modification software. If you have good credit score and your financial status is good then you can easily obtain loan amount. On the other side, people, who are tagged with bad credit rating such as CCJs, IVAs, late loan payers, arrears etc. can also apply for modification software loans but they have to face comparatively higher interest rate.

For applying the loan amount online, an electronic application form is available on the internet. You have to mention personal information about yourself and the current account. On the client side, software is set up so that the customers can have a secure log into check their mortgage loan modification status. By this procedure, customers as well as companies save their time for checking the status.

Feldman Law Center – Loan Modification FAQs

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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 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.”