| The climate of the subprime mortgage era and its | | | | after a significant set back. If the bank does a loan |
| loose lending guidelines are long behind us. | | | | modification, gives you a more affordable payment, |
| | | | | they lose potential interest gain. The bank secures |
| The subprime lending practices have left many | | | | interest and principal and you secure your home. The |
| homeowners on the brink of foreclosure due to risky | | | | most costly proposition is a consummated foreclosure. |
| ARM mortgage loans written between 2002-2006. | | | | |
| The government recently started a rescue package | | | | The bank does not want your home. The bank with |
| bailing out insolvent banks. In this package there is a | | | | do a loan modification if you or your attorney |
| provision for these bank and hedge companies to | | | | supervised counselor communicates with them. The |
| place a moratorium on subprime mortgage | | | | first step and first advantage of having a |
| foreclosures. This is mutually beneficial for the bank | | | | representative petition your mortgage servicer is the |
| and the homeowner. The bank will see less losses | | | | loan document audit. This is something that involves a |
| due to foreclosure proceedings,and property values in | | | | knowledge of apr calculations,state fee |
| return will eventually stabilize. The Hope Now program | | | | thresholds,compliance regulations,and RESPA. The |
| recently passed in government mandates that the | | | | average homeowner is not aware that what the |
| lenders that got us into this mess, are to work with | | | | mortgage company did is illegal. We are seeing |
| borrowers to curtail any further losses for the bank in | | | | staggering numbers of TIL,RESPA violations. The |
| foreclosure. This is great news for the struggling | | | | predatory lending laws that are state specific have |
| homeowner in forclosure. The lender is now, more | | | | been the main culprit second to TIL (Truth In Lending |
| than ever, willing to modify your mortgage(loan | | | | Act) violations. |
| modification) to keep you in your home and agree on | | | | |
| a reasonable monthly payment. You must be able to | | | | The lender is required to disclose the APR in the TIL. |
| demonstrate a reasonable ability to pay, but a loan | | | | The lender that is in violation knows that litigation may |
| modification is about keeping you in your home. | | | | be imminent if they don't do a loan modification for a |
| | | | | borrower in trouble. A loan modification needs to |
| Foreclosures are costly for neighborhoods and for | | | | explain the reason for financial hardship. The lender will |
| banks. Foreclosure involves attorney retainers for | | | | want to see that by modifying the loan you have the |
| 1000's of loans on a banks books that could benefit | | | | means to support the modified payment. A loan |
| from a loan modification. Some of these properties | | | | modification is not an interim solution. It is a long term |
| that could benefit from a loan modification have little or | | | | conversion for an ARM to a lower,affordable monthly |
| no remaining equity. A loan modification is a better | | | | payment without closing costs. |
| alternative that a short sale for the homeowner and | | | | |
| the bank. (SHORT SALE: Is where the borrower sells | | | | If you or a loved one are facing foreclosure or fear |
| the property for less than the mortgage balance) A | | | | you may not be able to make your next mortgage |
| Short sale drives a neighborhood price down, the only | | | | payment, you need to call me for a free consultation. |
| person who benefits is the investor that buys the | | | | |
| property via short sale. Your neighbors suffer a lower | | | | The longer you delay the further you become from |
| property value, The bank sustains losses, and you still | | | | HOPE NOW. |
| have to leave your home with no money to rebuild | | | | |