Elliot discusses mortgage modification and how to stay in your home if you are facing foreclosure.
Archives for April 2016
Video: Underwater Homes & Foreclosure
April 12, 2016 by
In this video Elliot discusses the subject of underwater homes and foreclosure.
Loan Modifications: What Are They Really? Part: 2
April 8, 2016 by
The first step in obtaining a mortgage modification is for the homeowner to apply to their bank, loan servicing organization or the investor holding their mortgage for a modification. This requires the homeowner to fill out a mortgage modification application and provide the documentation requested. The modification should also contain a hardship letter explaining that the homeowner has had a legitimate hardship situation that will motivate the bank loan servicer or investor to cooperate with them concerning obtaining a mortgage modification. In addition, most mortgage modification applications require the submission of tax returns, bank statements and pay stubs by the homeowner.
Home Affordable Mortgage Program (HAMP)
The federal mortgage lending program called HAMP is a program created by President Obama’s administration. This program does not work well. Approximately one homeowner in five is successful in obtaining a mortgage modification under this program. Many homeowners presume that they will be given a mortgage modification if they simply submit an application. This is simply not the case. The large majority of homeowners who submit mortgage modifications will never obtain a mortgage modification.
Banks and Financial Institutions
Many homeowners who come to my office presume that the financial institutions which hold their mortgages are interested in helping them. Unfortunately, that is generally not the case. The financial institutions which hold mortgages are interested in making money! If they find the homeowner does not meet their criteria related to the profitability of the mortgage, they usually will not grant a mortgage modification. Banks and other financial institutions are not social service agencies. They are financial institutions which seek to make a profit that benefits their shareholders. Not all homeowners are good candidates for mortgage modifications. However, there is a way of maximizing the potential of obtaining a mortgage modification. When homes are in foreclosure, and the homeowner retains counsel who submits numerous affirmative defenses and countersues the bank to set the mortgage aside, the banks and their attorneys pay more attention to the applications of these homeowners for modifications. This can increase the homeowners chances of obtaining a reasonable and fair mortgage modification. This is an example of the expression, “the squeaky wheel gets more grease.”
What You Shouldn’t Do When Facing Foreclosure
April 4, 2016 by
There are many published articles on the topic of what you should do if your home is going into foreclosure. This article is not going to discuss these issues. The purpose of this article is to tell you exactly what you shouldn’t do when facing the possibility of foreclosure.
The first thing you shouldn’t do is to sign over the deed to your home to someone else. Some despicable individuals and companies seek to take advantage of families in financial trouble by promising to get them their mortgages current. They have this bait and switch plan where they request you turn your home over to them. They then claim they will get a mortgage modification because their credit or circumstances is better than yours and thereafter they will sign the mortgage and deed back over to the beleaguered family. This is a bait and switch type of fraud designed to cause families to lose their homes. What these fraudulent companies do is refinance the property, take the equity out of the home, and thereafter let the foreclosure lawsuit proceed against the property. They then walk away from the situation leaving the homeowner in a worse situation than they were to begin with. Now there is no equity in their home, the homeowner no longer owns their home, and their options in dealing with the potential foreclosure are usually reduced or eliminated.
Do Not Ignore a Legal Document From the Bank or Their Lawyers
Facing a foreclosure lawsuit due to negative financial or personal circumstances can be difficult. It is easier to run from your life’s problems. However, ignoring the fact that your home is going into foreclosure is not a solution to your problem. This will exacerbate the problem by limiting the possibility of you and your family staying in your home. If you are contacted by your bank, mortgage company, or servicing company with requests, you should honor those requests and try to cooperate with them. If they are threatening you, you should hire a foreclosure attorney to advise you on how to deal with the situation. Competent, experienced foreclosure defense lawyers have developed a variety of techniques to help beleaguered homeowners stay in their homes.
Be Leery of Mortgage Modification Companies That Promise Stellar Results
There are many mortgage modification companies marketing their services to the public in the United States. Many of these companies more or less claim if you are breathing we will get you a mortgage modification. These companies are taking advantage of families in trouble. They present success rates which are usually unrealistic. Mortgage modification companies are no more successful in obtaining mortgage modifications for their customers than homeowners who submit mortgage modifications on their own. Many of these modification companies are hustlers taking advantage of people by asking for large up front fees based on false promises. Be sure to check with your local bar association, or the Better Business Bureau before hiring an attorney or mortgage modification company that claims they will get you a mortgage modification or stop your foreclosure from moving forward.
