6. What are the HAMP loan modification guidelines?
Initial qualifications are as follows:
7. Why should I hire a California loan modification attorney?
Have questions about loan modifications? Below I’ve tried to address some of the most common questions and concerns about loan modifications in hopes of shedding some light on what can be a very stressful process. Hopefully this can give borrowers a general outline of what to expect from their banks and the loan modification process and some different ways of going about getting what you want out of it.
It is important to note that every bank has found their own way of interpreting the Home Affordable Modification Program (HAMP) guidelines, so experiences will vary depending on who your lender is. For specific information its important to contact your lender or attorney.
Many mortgage holders, when working a note workout, in CA think they can hop a home Modification for every state. They think, they should be able to skip a note payment just like the one they skipped when they bought their house and when they refinanced. The homeowner, thought wow, skipping a home payment would be great and really help me, so let’s do this home loan note payment. Of course it did not make to me, as there is no free lunch and the homeowner never really skips it; instead the interest is rolled into the new note. In essence, the homeowner has paid the mortgage in advance, but may not really understand that, no matter how many ways you explain it to them.
Many people are confused about the loan modification process. Because different banks all have their own procedures and qualifications, this is understandable. When adding in the guidelines provided by the Making Homes Affordable (MHA) program and the Home Affordable Modification Program (HAMP), figuring out how to go about negotiating a successful loan modification can be a nightmare. As a result, many homeowners turn to third party Attorneys to help them with their loan modification.
Look no further, as I have a Wachovia Attorney Loan Modification success story from Laguna Beach California. I have to first start my story by saying that my client had been trying for months on her own to negotiate her own loan modification with Wachovia.
She was 3 months behind on her payments and was in one of those original “pick a pay” programs from World Savings at a rate of 6.875%. The “pick a pays” are not exactly the same as the Washington (WAMU)/Chase or Countrywide/BOA negative amortization programs. However, these are those programs that were frowned upon by many! They seemed to be the dirty word in the industry, but I think they were great for certain homeowners because the interests rates were very low on some and allowed cash flow for those that needed it during tough times.
As foreclosure filings remain high, in the month of August foreclosure filings remained relatively flat. Realty Trac counted over 350,000 foreclosure filings nationally in August and says that its data covers over 90% of households nationally.
Recently with more banks forcing homeowners during the short sale process to sign promissory notes to repay some of the debt could force more homeowners into foreclosure and out of the short sale process. Usually, by this point most homeowners have tried a loan modification but were struggling with the banks to get one.
Many homeowners are just not able to make their monthly payments and are receiving foreclosures notices left and right. They do everything they can from calling their bank, borrowing money from friends and family, taking it out of credit cards and then finally taking out of their retirement. They make the endless calls to their lender with no help just trying to get a loan modification and getting no help. When their banks aren’t responding and usually don’t they pick up the phone and call a loan modification attorney to help them save their home. This is their last resort in hopes of qualifying for Making Home Affordable, HAMP, or just any loan modification program that is available to get them into a more affordable mortgage payment.
How do I know if I am Eligible for a Modification under the Home Affordable Modification Program (HAMP)?
Step 1 is to see if you may be eligible for a Loan Modification under HAMP:
1. You must occupy your home as a primary residence, i.e. owner-occupant of a one to four unit home; and also have an unpaid principal balance that is equal to or less than:
2. Have a first lien mortgage that was originated on or before January 1, 2009;
There have been many times when we have had a homeowner come into one of our Attorney’s Office and demand that a Loan Modification be done immediately. As a homeowner, walking off the street into an Attorney’s office and being unprepared is a waste of time by both the homeowner and Attorney. The Attorney needs all paperwork in advance and at times needs to contact the homeowners bank before any discussions with the homeowner begins. So, please get all required paperwork in full to the Attorney as quick as possible and let the Attorney review your case and do their homework. Note that a loan modification cannot begin without a full and completed Loan Modification Package. A partially complete package does not give a clear picture to the Attorney of the client’s financial picture!
A Loan Modification is a permanent change in one or more of the terms of a homeowner’s loan that allows the loan to be modified with new terms, and results in a payment the homeowner can afford. It is not a refinance and does not require a certain credit score as they are not taken into consideration.
In utilizing the Loan Modification option to bring an asset current, can the lender include all fees?
Legal fees and related foreclosure costs for work actually completed and applicable to the current default episode may be capitalized into the modified principal balance.
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