Loan
Modifications
Are
you getting threatened with a potential mortgage foreclosure? Having
your attorney negotiate a loan modification can help change some the
terms of your mortgage. For example, a lowered interest rate may make
your monthly payment more affordable to help avoid foreclosure.
Sometimes, past due payments can be rolled into the package to keep
you current.
Why
will a Lender give a Modification?
No
Bank really wants to foreclose a mortgage. Banks want to receive
payments and are not in the business of owning and maintaining real
estate. If the lender reviews your financial situation and determines
your ability to pay. They may be willing to talk. Even if the
lender's repayment plan does not give the bank the same value, it may
be a lot better than a foreclosure.
How
to Qualify For a Mortgage Modification
-
You
must have income (earned income, the longer the better!) - you should
have current pay stubs, bank account statements, W-2s and tax returns.
Business owners should have a current Profit and Loss Statement.
-
Have
a decline in income (reduction in hours, overtime, pay) This is usually
demonstrated by a Personal Financial Statement.
-
Suffered
an economic hardship. A letter detailing the hardship should be
included with the Modification request.
-
Little
or no equity in the property (market value, minus sales costs, are less
than the mortgage balance.)
Watch Out
for the Mortgage Foreclosure Scam!
This scam targets those who can least
afford to lose their money - people about to lose their homes to
foreclosure. The debt clearance, or credit protection, service claims
they will negotiate with your mortgage lender to allow you to stay in
the house. But first, you have to pay a big fee to them for their
services. Usually, they do nothing but take your money and then leave
the victim without the money and still stuck in foreclosure.
Call me
at (856)
665-2121 today!
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