Loan Modification Information, Part 2
6. What are the HAMP loan modification guidelines? Initial qualifications are as follows: • Have a monthly mortgage payment over 31% of your monthly gross income. • If the home is a single unit, the unpaid principle must be under $729,750. • You must be the owner-occupant of the home. • The loan must have originated before January 1, 2009. • Must have a mortgage that is unpayable due to a documentable financial hardship. 7. Why should I hire a California loan modification attorney? Loan modifications can be tricky things. Dealing with guidelines, deadlines, bank agents and the stress of impending foreclosure can overwhelm even the most organized homeowner. In fact, over 50% of borrowers who negotiate their own loan modifications end up defaulting on their new payments a few months after being approved. Why is this? First off, banks know that most borrowers are desperate. Don’t forget that a bank’s primary purpose is to make money, and don’t underestimate its methods of doing so. Banks frequently mislead, delay and misinform borrowers in order to push them to desperation, after which they will offer the borrower a modification that is barely better than their original loan and sometimes even worse. Banks collect government incentives for approving permanent modifications, so if they can collect these payments and then the house a few months later, they probably will. It is important for borrowers signing loan modification agreements to realize that after accepting a permanent modification you cannot reapply for another one until a year has passed. Read the details of your new agreement carefully. That being said, hiring a professional can help you get better results from your loan modification, as well as easing what is already a highly stressful process. Loan modification attorneys are professionals who stake their reputations and businesses on their performance. Attorneys have the resources and personnel to stay on top of the numerous deadlines and paperwork required for a loan modification. Additionally, they have experience working with the banks and know who to contact when a problem arises and exactly how to fix it. Not only that, but loan modification attorneys can go back over you original loan modification documents and check for errors or mistakes they can take advantage of to get the borrower a better deal from the bank. Because of this, loan modifications negotiated by professionals have a higher rate of success as well as a higher satisfaction rate with the final result. Sure you can represent yourself in court or in front of the IRS, but wouldn’t you prefer to have an attorney there with you? A loan modification is no different. 8. How can I protect myself from loan modification scams? Whenever there is a crisis, there will always be people around trying to take advantage of others. Even if you are looking down the barrel of a foreclosure, it is important to take your time and ensure that you protect yourself from scams. If you are looking into hiring a loan modification company or attorney, be sure to check them out with your State’s Bar association and the Better Business Bureau to see if they have any complaints against them. California recently published a list of attorneys under investigation for fraudulent loan modification practices, and I am sure other states have similar information available. Additionally, California has its own laws against loan modification services collecting upfront fees from clients. Senate Bill 94 specifically prohibits anyone providing loan modification assistance from collecting upfront fees, including retainers. Many other states have passed similar laws, so if your prospective attorney is asking you for money in advance, be alert. A money back guarantee isn’t good enough. About Author We at American Loan and Mitigation Specialists are dedicated to bringing home owners the very best service when it comes to their loan modifications. We know this process can be extremely stressful and difficult to go through. Our representatives are with you every step of the way providing updates, counseling and information regarding loan modifications. If you have any questions about loan modifications, don't hesitate to visit us at www.callalms.com today and browse our wealth of information on loan modifications or get in contact with one of our agents! Disclaimer: Article submitters are solely responsible for the content of their articles. ArtiLib can't be held liable for the contents of the articles. Report Abuse |
Show All Results Show Filtered Results Browse By Category Pets  Sub-Category(s) Cats |
| Contact ArtiLib| Privacy Policy| Terms of Service |