Toll Free: (877) 417-7770
Phone: (603) 747-9988
Fax: (877) 800-9152
What is a loan modification?
April 1st, 2010 | Comments Off
What is a Loan Modification?
A Loan Modification is a negotiation between a lender and a borrower whereas the loan terms are restructured without refinancing. The rate and terms of the loan are restruc- tured to fit the current financial situation of the borrower.
Banks and lenders would rather take less money and keep homeowners in their home making a payment that they can afford, rather than go through the expense of foreclosing on the home, hiring a listing agent, rehabilitating the home, and letting it sit empty on the market for months, only to lose thousands in the process.
A loan modification is a good solution for those who cannot refinance, are behind on payments or struggling to make the payments, have experienced a genuine hardship, and want to stay in the home. A loan modification is a permanent solution and is not meant to be used as a temporary stop to the foreclosure process.
Are lenders and banks really willing to negotiate?
Absolutely! In these market conditions, banks and lenders have been mandated by the govern- ment to do everything they can to work out a payment plan with their borrowers. This is a great thing for today’s borrowers especially for those who are running late on their pay- ments or are having trouble making them on time.
Lenders do not want to foreclose on your home unless they have no other alternative. If you can present them with a realistic proposal that makes sense, they are very open and receptive to the loan modification process.
Who qualifies for a loan modification?
Anyone who can prove they are having a tough time or “hardship”. Especially those who are at least one month behind on a mortgage payment, those with negative amortizing loans, those with loans that are about to adjust, those who are upside down on their loan and those who would rather keep their home than do a short sale. One of the perks when doing loan modifications is that there are no credit checks so everyone qualifies in that aspect.
The bigger the hardship you are having, the more negotiating power you have with your lender. Remember, they don’t want to foreclose on any more homes. They would rather keep someone in the home and create a solution that will be affordable rather than go through the cost and expense of foreclosing on the property.
Many homeowners feel there is no help for them once they fall behind. Dargon Law Firm, PLLC can help you to modify the terms of your current loan and keep your home!
The Latest Loan Modification Plan: Don’t Get Your Hopes Up
March 26th, 2010 | No Comments »
The loan modification application process is not a simple task. Here at the Dargon Law Firm PLLC we can assist in the loan modification application process.
Call 1-877-417-7770 for a free consultation
Things To Consider Before Walking Away From Your Mortgage
March 18th, 2010 | No Comments »
Millions of middle-class Americans today are in a similar situation. They are struggling with their mortgage payments, and cannot sell because they are a long way underwater, owing more on their home than it is worth. They have wiped out their savings trying to keep up. One worker in six is either unemployed or underemployed, and there is a tsunami of rate resets coming in the next two years. No one forced them to borrow –but no one forced the banks to lend either. More important right now is how they get out of it.
No matter how bad things get, you should always know your options. The Dargon Law Firm can assist you in modifying your mortgage, and help you understand your other debt relief options. For more information, speak to one of our consultants today.
Call 1-877-417-7770 for a free consultation.
Bank of America Boosts Mortgage Modifications
March 12th, 2010 | Comments Off
To qualify for a permanent loan modification, a borrower with a trial modification is required to make three consecutive monthly mortgage payments and complete the documentation. There has been concern that many applicants wouldn’t be able to meet the requirements because of the amount of paperwork and additional training and processing required by lenders.
Let the Dargon Law Firm PLLC help get the loan modification that you need. For a free consultation please call 1-877-417-7770
Housing Crisis -The New “Neverending Story”
March 8th, 2010 | Comments Off
The massive influx of homeowners trying to get their piece of the “Making-Housing-Affordable-Pie” has left attorneys over their heads with loan modification cases. In an effort to even out the case load, many attorneys have begun to venture into the realm of loan modifications and real estate law. One attorney in particular, Liz Quick from Kirkland, Washington, tells her story to NPR:
“My background is mostly in personal injury litigation,” Quick says. “Interestingly, Mr. Mirkab didn’t find me that way, he was looking for a real estate attorney, which I am not”…
Quick didn’t plan to get into foreclosures and loan modification…
[Lately], Quick’s not alone. With so many homeowners trying to stay afloat in the recession, people need legal help more than ever. But they’re also having more trouble than ever affording it. Legal aid offices are swamped. So attorneys around the country have been volunteering their services, even if it means diving into an area of law they’ve never practiced before.
“I almost feel more like a lender and a banker than I do a lawyer at times, because we’re really just trying to put a deal together,” she says.
But Quick isn’t a lender or a banker. And according to Seattle attorney Melissa Huelsman, there’s a lot for her to know.
“They’re going to have to learn about all the lending laws, the Truth and Lending Act, the Real Estate Settlement Procedures Act, as well as what other common law and state law claims you bring,” says Huelsman, who’s worked in predatory lending and mortgage fraud for eight years.
Her syllabus goes on and on: Federal laws. State laws. Local procedures. Labyrinthine paper trails that purportedly lead to promissory notes. The ins and outs of lending institutions and their morass of forms.
“It’s hard to tell people to leap into this area of law because it’s difficult and complex,” Huelsman says. “And yet we’re trying to get lawyers to have a basic understanding, because we desperately, desperately need help.”
Huelsman says the housing crisis has created far too many potential clients for her or her colleagues to handle. So she’s been teaching the tricks of her trade at foreclosure boot camps in Washington State — seminars for attorneys who are new to foreclosure and lending law but want to take pro bono clients.
Source: Brian Reed
http://www.npr.org/templates/story/story.php?storyId=104063764
Thousands of Eligible People Ignored by Lenders
March 5th, 2010 | No Comments »
On Feb. 17, 2010, the Treasury Department released data showing how the largest mortgage servicers participating in the administration’s $75 billion foreclosure prevention program have been performing. The data show activity through January 30, 2010. The estimated number of “Eligible Loans” comes from the Treasury Department and is based on the number of eligible loans that are more than 60 days delinquent. The program features a three-month trial period for modifications before they’re eligible to become permanent. However, many trials have gone much longer. Our “In Trial” estimate shows how many are still within that three-month period, and our estimate of the number of trials “In Limbo” shows how many have gone longer.
According to the federal government, vast numbers of people are eligible for loan modifications under the HAMP program. However, only a minute number have been offered a loan modification.
The Dargon Law Firm can help negotiate the terms of your current mortgage to lower your monthly payments and get you back on your feet. For a free consultation please call
1-877-417-7770
Can Bankruptcy Stop Foreclosure Permanently?
March 4th, 2010 | No Comments »
Can Bankruptcy Stop Foreclosure Permanently? Discover When Homes and Mortgages Are at Risk in Chapter 7 and 13
Many homeowners wonder: “Can bankruptcy stop foreclosure?” Find out when lenders may force enforce mortgages despite filing under Chapter 7 or 13.
Filing Chapter 7 or Chapter 13 prevents all creditors from continuing efforts to collect debts. Protection specifically applies to the collection of past due mortgage payments. For a short period of time, all debtors receive the broad-sweeping statutory protection provided by the U.S. Bankruptcy Code. Chapter 7 and Chapter 13 operate differently however and the ways bankruptcy can stop foreclosure deserve careful consideration. All debtors who seek to avoid foreclosure permanently must eventually resume making mortgage payments.
Can Bankruptcy Stop Foreclosure in Chapter 7 Forever?
Filing under any chapter immediately prevents the enforcement of a mortgage. In Chapter 7, the relief afforded by the automatic stay may be temporary. So long as mortgage payments remain unpaid, creditors may request permission to resume collection efforts. In Chapter 7, bankruptcy can stop foreclosure permanently but only so long as all mortgage payments remain current.
In most cases, permission to lift the automatic stay requires at least 30 days and may require substantially more time. As a practical consideration, Chapter 7 bankruptcy can stop foreclosure easily for 60 days that allows debtors time to bring mortgage payments current over four pay periods.
Nevertheless, the court will eventually grant a creditor’s motion if payments are not made. Anyone who cannot bring mortgage payments current in a Chapter 7 case and desires to stop foreclosure should consider filing Chapter 13. Debtors may include past due mortgage payments in a Chapter 13 repayment plan and create a legal fiction that all included payments are current.
Why Can Bankruptcy Stop Foreclosure in Chapter 13 Without Payment?
Filing Chapter 13 bankruptcy can stop foreclosure so long as the trustee assigned to case receives actual payment. The first Chapter 13 payment is due within 30 days after the commencement of a case. If payments to a trustee do not remain current, the court may grant a motion to lift the automatic stay or may alternatively dismiss a debtor’s case.
Dargon Law Firm, PLLC can help you save your home! Our firm offers experienced attorneys that specialize in Bankruptcy and can assist you with all of your questions and needs.
The Mortgage Refinancing Catch-22
March 4th, 2010 | No Comments »
Although mortgage rates are extremely low, most existing homeowners are not able to take advantage of them due to stricter standards and reduced equity. Because the borrowers who are able to refinance tend to be the best qualified and least likely to be in trouble, many homeowners who currently have ARM loans will not be able to refinance as rates go up and will default as their payments become unaffordable. See the following post from Expected Returns.
With help from the Dargon Law Firm, we can help negotiate with your lender to reduce your current mortgage payment, rather than refinancing. If you or anyone you know is having trouble paying their mortgage, please us at 1-877-417-7770