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Have you just received a notice of default or has the house actually been foreclosed on? Loan modifications are something you do to try to avoid foreclosure. Depending on your situation, you may want to consult a loan attorney who specializes in loan mods. I've heard The Castle Law Group is supposed to be excellent. Their website is http://www.castlelawgroup.com. It's actually really informative and explains what loan modifications are and how they work.
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∙ 15y ago
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Is a modification the best way to go to stop foreclosure?
The best way to stop a foreclosure is to honor the terms of the loan agreement. How you get to that point depends on many factors. A modification is a new loan agreement that superceeds and changes the original agreement and is designed for individuals with a long term material change in their financial situation that prohibits them from making scheduled loan payments. If an adjustable-rate mortgage adjusts to a point where the payments are not affordable, or a borrower suffers long term income reduction or loss, a modification of the interest rate or repayment term of the loan may save the home from foreclosure. It is an important tool and is one of the best ways to stop foreclosure. The key is that the modification must be beneficial to both the lender and the borrower. However, when some people use the term "stop foreclosure" they really mean "stall foreclosure". If a person finances a home that is beyond their reasonable means and they find themselves unable to make payment without unreasonable changes to the loan terms (such as principle balance reductions or 60 year repayment terms) then a foreclosure is often ultimately unavoidable. An unaffordable home is still an unaffordable home even if an interest rate is lowered or borrowers are given a chance to catch up on payments. While it is possible to get a balance reduction, it is very rare, and very long loan repayment terms are usually not allowed by law or regulation. In these cases, a modification request may extend the time it takes to foreclose (even lasting years), but the end result is still foreclosure. Bankruptcy filings also halt foreclosure proceedings and are used by many borrowers as a last resort to foreclosure.
Can a mortgagee include late charges on loan modification?
No because a loan modification is set in place to give the client a fresh start. The client should waive all the late fees that he/she had before the loan modification.
How do you get loan modification?
You have to apply to your lender for a loan modification. Some people use attorneys to make application on their behalf, and others choose to go the "do it yourself mortgage modification" route. If you decide to do your own home loan modification, make sure you get your paperwork correct. You need to know precisely what your lender requires, otherwise your application will be rejected. It may be a good idea to buy a loan modification system that can show you, step by step, how to go about the loan modification application.
Is a new deed issued in a loan modification?
No. Deeds affect ownership of the property. A new deed isn't necessary for a loan modification.
Which companies offer mortgage loan modification?
"Every mortgage lender or mortgage servicer offers mortgage loan modification. There are also many third party companies that offer mortgage loan modification, but work with them at your own risk."
How do you do a loan modification to your loan?
When facing a foreclosure or something of that nature, you have to make a loan modification so that it doesn't affect any other financial firms or accounts you have. So you will have to visit www.modificationhelpnetwork.com
Will a loan modification application stall foreclosure proceedings?
I know of people who applied for the modification but all the while the mortgage company proceeded with the foreclosure. So, yes they still will foreclosure apparently. Its like one hand doesn't know what the other is doing. the individuals that I know had to file chapter 13 bankruptcy to stop the foreclosure sale from happening
How safe is your mortgage when you enter into a loan modification?
Many homeowners believe that, if they can just get a loan modification and lower their monthly bills, they will be out of foreclosure. With the lenders' ability to make temporary loan modifications, though, this is turning out not to be the case in many situations. For instance, banks may approve a temporary modification of the terms of a loan and require homeowners to make a series of payments on this plan. Even if the payments are made on time and as agreed, the bank can terminate the modification agreement. Mortgage companies are under few obligations to turn a temporary modification into a permanent modification, despite whether or not the borrowers have successfully completed the plan or not. Banks can collect lower payments from homeowners for months, and then put the home back into foreclosure. Thus, a loan modification may not be a safe way to stop foreclosure for the long term. Obviously, making on-time payments on a temporary loan modification may help, but the lenders have made it so that these plans can act as nothing more than a further collection effort before a property is finally foreclosed on.
Can you do both foreclosure and debt settlement at the same time?
Hello There, Yes you can. I would suggest you to also look into an option called Loan Modification. It is like negotiation with your creditor for the mortgage. Make sure you work with some Loan Modification company before foreclosure. IMPORTANT: Do not opt for any Loan modification company that asks you for upfront fees. If you cannot find 1, get in touch with me, I have a friend in CA who does the same. I can ask him to help you out. Thanks This is not legal advice.
Can I fight a bank foreclosure?
The only way to fight a foreclosure is to either get a reinstatement, payoff or loan modification. The only other way would be to file bankruptcy and reorganize your finances, which will also buy time.
Alternatives to Foreclosure?
Foreclosure can really hurt your credit score and make it harder for you to get a loan for a car, another home or anything else you may need. The good news is that there are alternative to help keep you out of foreclosure and keep your home. One of the best options for those who are at immediate risk of default on their home loan is a mortgage modification. A modification can lower your monthly payment, stretch out the life of your loan and even reduce the balance owed on your mortgage to help make your monthly payments more affordable.
will California Civil Code 2823.6 stop forclosure?
In many situations, it can help borrowers avoid foreclosure. Civil Code 2823.6 requires lenders to accept loan modifications (i.e. lower monthly payments, etc) in most foreclosure circumstances. You must pursue a loan modification agreement, however, and take the necessary steps to stop foreclosure.
Do you have to go to court for a foreclosure summons if you have a modification loan?
It depends on the terms of your modification loan and the specific requirements of the foreclosure process in your area. You may still need to attend court proceedings related to the foreclosure summons if the terms of your modification loan do not fully resolve the situation or if there are legal issues to address in court. It is advisable to consult with a legal professional for guidance specific to your circumstances.
Is a modification the best way to go to stop foreclosure?
The best way to stop a foreclosure is to honor the terms of the loan agreement. How you get to that point depends on many factors. A modification is a new loan agreement that superceeds and changes the original agreement and is designed for individuals with a long term material change in their financial situation that prohibits them from making scheduled loan payments. If an adjustable-rate mortgage adjusts to a point where the payments are not affordable, or a borrower suffers long term income reduction or loss, a modification of the interest rate or repayment term of the loan may save the home from foreclosure. It is an important tool and is one of the best ways to stop foreclosure. The key is that the modification must be beneficial to both the lender and the borrower. However, when some people use the term "stop foreclosure" they really mean "stall foreclosure". If a person finances a home that is beyond their reasonable means and they find themselves unable to make payment without unreasonable changes to the loan terms (such as principle balance reductions or 60 year repayment terms) then a foreclosure is often ultimately unavoidable. An unaffordable home is still an unaffordable home even if an interest rate is lowered or borrowers are given a chance to catch up on payments. While it is possible to get a balance reduction, it is very rare, and very long loan repayment terms are usually not allowed by law or regulation. In these cases, a modification request may extend the time it takes to foreclose (even lasting years), but the end result is still foreclosure. Bankruptcy filings also halt foreclosure proceedings and are used by many borrowers as a last resort to foreclosure.
How can i get my house of the forclosure list?
You can do a short sale or pay whatever you owe the bank. Loan modification may work, but that generally needs to be done before entering foreclosure.
Who do you contact when scammed on loan?
Personal loan for foreclosure
Is a closing agent required for a loan modification in New York?
The answer is no. I am a Certified Signing Agent and I am also a Loan Modification Consultant, but that does not mean that I need to be one in order to become a loan modification consultant. Glena
