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.
Are you a California homeowner in danger of losing your home because of financial difficulties? The federal loan modification programs Making Home Affordable (MHA) and the Home Affordable Modification Program (HAMP) are here to help! Under the programs, homeowners who have loans originating before Jan. 1, 2009 and owe less than $729,750 and who’s loans are backed by either Freddie Mac or Fannie Mae will be eligible for federal government backed loan modifications. Homeowners that are delinquent on their payments or can show that they will soon have difficulty with payments are eligible as well!
California has been hit hard by the foreclosure crisis, and it’s not over yet. With many adjustable rate mortgages ready to reset, a state that already has 25% of the nation’s foreclosures may be hit again. California hold over 50% of the nation’s ARMs, many of which are about to increase their interest rates, leading to even more foreclosures in the state. The housing programs MHA and HAMP were to provide relief for thousands of homeowners, and yet due to constraining guidelines and an unwillingness to negotiate on part of the banks, foreclosures have increased across the state. As a result, District Attorney Edmund Brown Jr. has taken the initiative on the housing crisis.
Many homeowners try to do a California Loan Modification on their own and do not know how to fill out the California Loan Modification paperwork given to them by their bank. When they do complete the California Loan Modification paperwork and submit it to their bank they soon find out they are denied.
With the Obama Loan Modification Programs such as Home Affordable Modification Program (HAMP) and Making Home Affordable (MHA), many homeowners want to take advantage of these monies that the government has set aside to encourage banks to participate in California Loan Modifications. As of July, statistics show that only 9 percent of those applying for loan modifications are actually getting the loan modification. Secondly, 10 lenders have not changed a thing and have not modified one mortgage!!
There is no clear definition of a California Loan Modification or how to go about getting a California Loan Modification. Homeowner’s trying to get a California Loan Modification on their own are denied left in right by their banks. The main reason being that they just don’t know how to complete the California Loan Modification paperwork, and the banks are not willing to help them or consult with them.
Many of the lenders are re-evaluating loan modification applicants that were turned down previously but may be considered viable borrowers under the new guidelines. Part of the motivation for the lender’s willingness to grant a chance to applicants for loan modifications could be the incentives paid to them over time of up to three to five years for successful loan modifications. Lenders can receive incentive payments just for trying to implement loan modifications so it’s no surprise that they are taking a more flexible stance. With more government funds directed at reducing a borrower’s loan to income ratio to a maximum of thirty one percent, lenders are becoming increasingly comfortable with executing loan modifications with homeowners that were considered as high risks nine months ago.
The Presidents plan to rescue the troubled housing market’s philosophy is based on helping struggling homeowners stay in their homes so that plummeting property values slow and begin to taper off, and thus forming a bottom. There are many who refute this idea based on the fact that over 50% of loans modified in the first quarter of 2008 re-defaulted within six months.
Are you late on your payments?
Are you upside down on your house?
Is your rate adjusting?
Have you tried to refinance, but have been declined?
Do you fear foreclosure?
A Loan Modification is the best tool if you are behind on your mortgage and are headed towards foreclosure. With a loan modification, the mortgage loan is renegotiated to a more affordable payment then what you already have.
Here at CallALMS.com, our contracted Attorney’s negotiate successful mortgage loan modifications on your behalf with your bank to save your house. Our Attorney’s are retained by you and have a 99% success rate in their negotiations, else your money back!
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