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Foreclosures Increasing Across America - Loan Modification News

Wednesday, December 16

There was hope that in spite of the economic downturn, the federal loan modification program would help people stay in their homes.  Both the federal government and the California state government have passed laws promoting loan modifications.  However, in spite of the government’s best efforts and the investment world’s highest hopes, foreclosures have not decreased at the desired rates.

Numbers that were released in America’s major urban areas showed increased foreclosure activity.  In New York City, foreclosures were up in Queens by 9% from a year ago; and in Brooklyn, foreclosures increased 92% from the first quarter to the second quarter.  In Seattle, foreclosures were up by 105% from the first quarter of 2009 to the second quarter.

In Los Angeles, the foreclosure numbers are dreadful as well.  From the first quarter of 2009 until the second quarter, foreclosures were up 47% in first time foreclosures.  That means that one in every 230 homes in Los Angeles is scheduled for auction.  In a city with tens of millions of homes, that means tens of thousands of homes going into foreclosure.

It could be time for homeowners to depend upon the help of a qualified loan modification attorney as opposed to massive federal and state loan modification programs.  Federal loan modification programs may not be able to work with the speed and accuracy that some homeowners need.  Loan modification attorneys understand the industry, understand the lenders, and know how to get the best and quickest results possible.  

If you trust your homeownership to the federal loan modification program, or if you are attempting to handle your loan modification on your own, you could be leaving yourself open to some major challenges.  The federal loan modification program has not produced the desired results, with many critics being harsh towards the Obama Administration’s efforts as a result.  There are many statistics which suggest that handling your own loan modification will lead to poor results.  It was reported that almost half of the loan modifications handled by homeowners in early 2009 fell back into foreclosure proceedings because of poor applications.

A California loan modification attorney can walk you through the loan modification process and help you get all your “ducks in a row” before sending your information into the bank for a loan modification.  As seasoned California loan modification professionals, we understand how to successfully present your information so that lenders will reply in a favorable manner.

Foreclosure proceedings can happen for a number of reasons; if you lose income, if your interest rate spikes or if some other unforeseen event occurs, you could be facing serious foreclosure proceedings.  In such a situation, you need a qualified loan modification attorney to help you keep your home.  Few loan modification attorney teams can offer the kind of experience, knowledge and success that the Feldman Law Center can offer our clients.  It is a difficult landscape to navigate, but with a team of seasoned professionals, you can achieve the loan modification you are interested in.  A California loan modification attorney could be your best friend if you are facing foreclosure.

Do It Yourself Loan Modifications Are Bad News

Wednesday, December 16

Loan modifications have become a major focus for homeowners, for the government, for banks and for other interested parties.  Although loan modifications have been around for some time, the renewed focus on them stems from their ability to combat the wave of foreclosures which have cropped up over the last two or three years.  

A loan modification is a negotiation between the homeowner and the lender where the terms of the home mortgage loan are changed so that the borrower gets a lower monthly mortgage payment.  This is done to keep the homeowner free from foreclosure.  A loan modification can be achieved by lowering the interest rate on the loan temporarily or permanently, getting any late fees eliminated, getting a principal reduction on the loan or some other option.

Using a skilled California loan modification attorney is probably the best way to go about getting a California loan modification.  However, there are options available to people which do not involve a California loan modification attorney.  Many of these options are foolhardy though, because they do not involve a skilled professional.  One such option is the “Do It Yourself” items that are popping up all over California.

The do it yourself options include books, different types of software, seminars, infomercials and more.  They state that you do not need a loan modification attorney, a loan modification company or anyone else to help you get a quality loan modification.  However, what these products fail to mention is loan modifications often fail if the loan modification application is not properly filled out.  Thousands of Americans have had their loan modifications fall apart because they did not have an experienced professional helping them in the process.

For example, a new loan modification do it yourself kit seems to pop up every week, getting people to fork over $97 or more for a e-book, a CD or some other product that might have a great deal of information, but that lacks any real instruction.  While few doubt the information on these kits, they lack the kind of tailored approach necessary to get a good response from banks and lenders.  Some of these kits simply steal information from loan modification attorney websites and pass off the copied information as their own.  They can put people into dangerous situations by making them think they have the tools necessary to save their homes, when instead they have made no progress.

These loan modification kits are not regulated, and are often sold by people just looking to make a quick buck.  Some are sold for as little as $19.95, which sounds like a great deal.  However, a kit can’t make phone calls to your lender for you, can’t help you fill out your application for you and can’t help you negotiate with your lender when they are playing hardball.  All a kit can do is make you feel like you’ve got a chance.  It’s like giving someone Paper Mache armor to go out to battle.

At the Feldman Law Center, our skilled California loan modification attorney team can help you stay in your home, avoid foreclosure and have a bright tomorrow.

Banks are Feeling the Hurt - Loan Modification Help Center

Wednesday, December 16

The Feldman Law Center works with borrowers everyday who have difficult financial problems based in part on their strenuous mortgage loans.  Trying to find relief from banks is a major challenge, in part from because of the problems banks are having.  Banks are frustrated by their mounting losses due to their own poor financial planning, and people are hurting as a result.

Case in point, on September 25, 2009 the Wall Street Journal had the following stories on the front page of their Money & Investing section:  “Home sales Sap the Dow, Down 41.11”; “Losses on Banks’ Big Loans: $53 Billion”; and, “Raters Race Fresh Push in House Over Claims.”  The major global banks, and some of the more regional ones, are hurting so bad from the housing crisis that they are grasping at straws wherever they can.  Sales of new and used homes are down, banks are losing money on large loans (those starting at $20 million), and credit raters are being hammered by politicians and the general public.

If you are facing a foreclosure on your home, this should alarm you for a few different reasons.  For starters, if you are a homeowner who needs a loan modification, you are going to have to convince the bank that you are able to continue to make payments and that it’s better to give you a loan modification than to foreclose on your home.  However, banks are almost in a “slash and burn” mentality, where they are simply looking for the easiest way out of their jam.  Rather than look at long term gains, banks such as Fifth Third Bancorp are looking for quick ways to remedy their multi-million dollar financial losses.

Another reason for concern is the high turnover rate of bank executives and bank policy.  Banks are trading executives like they’re baseball cards, making their financial policies an ever-changing landscape.  For homeowners, this could be good or bad.  It could be good, because with the right California loan modification attorney, it might be the right time to take advantage of the situation and get the best deal possible.  However, it could be bad, because a deal that exists today might not exist tomorrow.  If a homeowner tries to contact a bank executive they were dealing with a month ago, that person might no longer work at that bank.

Lastly, with the credit ratings in flux, it means that the way banks determine credit rates will continue to change.  Again, this could go either way for homeowners, because banks are on totally new ground.  One of the biggest ways that homeowners get loan modifications is by getting a change in their interest rate.  Banks determine interest rates by taking a number of factors into consideration.  As these factors begin to change, having a qualified California loan modification attorney working with you to take advantage of possible changes in your favor is important.

Being able to stay on top of the news coming out of the banking industry is near impossible for any California homeowner, and having a qualified California loan modification attorney working on your behalf is incredibly valuable.

Avoiding Shady Loan Modification Companies

Wednesday, December 16

At the Feldman Law Center, many of our loan modification attorneys have seen the number of loan modification companies pop up, seemingly overnight.  Many of them cannot actually get loan modifications for clients, so they waste the time and money of those who are in need of serious assistance.  Our goal is for every loan modification attorney on our staff to exhaust every possible resource in getting our clients the best loan modification possible.

Here are some things to look for, or questions to ask, to make sure you are not getting scammed by a loan modification company:

Look out for false promises – Any loan modification company that “guarantees” a loan modification is probably lying.  Even the best loan modification attorney can be turned down by the banks.  It is up to you to find a skilled, experienced loan modification attorney who knows how to work the system.

Ask the loan modification representative how long they have been around – “Fly by night” companies are the biggest scammers, setting up shops seemingly overnight and then taking advantage of people before they leave town. You should be looking for a loan modification company that has been around for a few years, and preferably a loan modification law firm that has been around since before our recent economic crisis.

Make sure you are working with a loan modification attorney – Only a licensed, practicing attorney can legally represent you during the loan modification process.  If the loan modification company you are working with does not have a loan modification attorney on hand, avoid the company.

Proof of success – Any business will have client testimonials or a way to prove their track record.  You should ask the loan modification company if they have referrals or ways to prove that they have successfully completed loan modifications for other people.

Have reasonable fees – Any loan modification attorney or loan modification company is going to charge you a fee, that’s the way the world works.  However, make sure you are comfortable with the fees and that you believe the fees will lead to results.

Make sure they can stop the foreclosure process – Any loan modification attorney should be able to legally halt the foreclosure process.  This should absolutely be a priority for you and your loan modification attorney.

Be wary of virtual companies – You aren’t buying music online, you are trying to keep your home.  Make sure the loan modification company or loan modification attorney has an actual office that you can go to.

Make sure the loan modification company works in California – If someone from another state contacts you, you should consider long and hard whether or not they can help you.  In fact, attorneys who are licensed to practice law in one state may not be licensed in another state.  If you live in California, get a California loan modification attorney.

These are just a few of the areas you can examine and research in order to know if your loan modification company is on the “up and up.”

Visit us at http://www.feldmanlawcenter.com or call 800-588-0425. Foreclosure Help