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Learning Center by Feldman Law Center
This Feldman Law Center learning center is an information resource for California homeowners to learn about home loan modifications, both California and federal, and to learn about home loan modification attorneys.
Home Loan Modification
Loan Modification FAQ's
Foreclosure FAQ’s
Why Do Lenders Prefer Loan Modification over Foreclosure?
From our experience, dealing with lenders when it comes to home loan modifications can be difficult, which is why we suggest letting an experienced home loan modification attorney work with you as opposed to going it alone. That being the case, lenders actually benefit incredibly from the home loan modification process. Home loan modifications save lenders countless dollars that would be lost in a foreclosure. It’s faster and cheaper for lenders to go through a home loan modification. This is the type of information the Feldman Law Center knows and understands, and why our experienced loan modification specialists can expertly guide you through the process.
How to Apply and Qualify For a Loan Modification
In a nutshell, you’re asking your lender to change the mortgage terms on the basis of your financial hardship. Millions of Americans are going through this process as we speak, and it may just be the solution you’ve been looking for. If the situation is handled correctly, you can get your loan modified within a relatively short period of time and being making payments. The challenge is that it’s not quite as simple as it sounds. Lenders are difficult to deal with and won’t be willing to change your mortgage rate at the drop of a hat. With a strong case though and the right home loan modification attorney, it’s more than possible to modify your home loan and stay in your home.
It requires the following steps:
- Initial consultation – start the process by contacting the Feldman Law Center, and our home loan modification attorneys will contact you right away to begin assessing your current financial situation, as well as your potential options.
- Paperwork – once you’ve set things in motion, the Feldman Law Center’s home loan modification specialists will need the following:
- Proof of income (pay stubs)
- Four or more months of bank statements
- A hardship letter
- Monthly expense sheet detailing your expenses
- Your most recent mortgage statement
- 2 years of W2 forms
- 2 years of tax returns
- Negotiations - your home loan modification attorney will begin the negotiations as soon as you send your application and paperwork. This is where the real work begins and where your California home loan modification attorney begins saving you real money. A good loan modification attorney will negotiate aggressively until the bank makes an offer that suits your financial capacity.
- Approval – once your lender and home loan modification attorney reach an agreement, they’ll send you a document detailing the offer for your approval. Once you sign it, you can relax and enjoy peace of mind.
Things To Consider Before Getting A Loan Modification
Choosing a home loan modification isn’t a decision to be made on a whim. It can indeed be the answer to a better mortgage, but it’s not a guarantee to solve all of your money problems. Here are some questions to ask yourself if you’re thinking about a California home loan modification or federal home loan modification:
- Do I qualify? – Lenders have different requirements, but if you have a job and are able to prove your financial hardship, it should be possible.
- How far behind am I? – You must build the case to your lender, but there are limits as to how far behind you can be; this is why we recommend contacting the Feldman Law Center today, before it’s too late.
- Can I afford it? – A home loan modification might cost you anywhere from $2,000 to $5,000. You have to measure whether or not you can refinance your mortgage, pay all your bills, feed your family, etc. This is a decision only you can make.
- How much equity do I have? – Equity value is probably the biggest factor affecting your lender’s decision. Enough equity to cover foreclosure expenses and deferred interest might mean that foreclosure is cheaper for your bank. The Feldman Law Center will work with you on issues such as this.
- Can I Stay On Track? – A home loan modification isn’t a magic wand to wave away your problems. You still have to make payments, take care of your obligations and so forth.
Choose Your Loan Modification Company Carefully
The Feldman Law Center has been California’s premier home loan modification company for years. Our experienced home loan modification specialists can walk you through the process and make sure your future is protected. Here are some key points to pay attention to while choosing a home loan modification company:
- Why type of company are they? Many “fly-by-night” companies are around trying to take advantage of people. But the Feldman Law Center has been in this business for years and intends to stay an industry leader. And remember, since the Feldman Law Center is a law firm, it is bound by a tight set of legal rules which others are not bound by.
- How long has the company been in modifications? – The Feldman Law Center has years of experience at this, has seen the home loan modification laws change rapidly and is able to adjust to any twists and turns you may face.
- Does the company negotiate directly with the lender, or do they “outsource” this function? – The Feldman Law Center handles every aspect of your home loan modification. We aren’t going to pass off the responsibility of your home loan modification; instead we work with you every step of the way to ensure you’re informed and aware of what’s going on.
Types of Loan Modifications
There are many ways in which the home loan modification specialists at the Feldman Law Center can make your mortgage affordable.
- Waving or reducing the delinquent balance
- The Feldman Law Center can negotiate with your lender to reduce the amount of late charges you owe, and possibly even eliminate them altogether. We can also add it to your principal, so you won’t have to pay it up front.
- Reducing your interest rate
- The infamous “sub-prime” lenders with their notoriously high interest rates are one of the main reasons so many people are losing their homes. The Feldman Law Center has been successful in lowering the interest rate in countless negotiations. With a lower interest rate, you can better handle your monthly payments and stay up-to-date with your mortgage.
- Extension of the term
- Your lender can add years to your loan term, which allows you to spread out the payments (often this is the best arrangement if your income has changed and payments are unmanageable).
- Shift to fixed-rate plan.
- Many people who fall behind on their mortgage payments are in adjustable-rate mortgages. Their interest rates are determined by market indicators and can change from month to month. A fixed-rate mortgage uses the same rate for the term of the loan and is better for the long run. Because it’s more secure, you’re less likely to be affected by economic slowdown.
- Reduction of principal.
- In some cases, it may be cheaper for your lender to simply reduce the amount you owe. While this isn’t common, since they still lose money in the process, it is possible and it’s usually granted when the costs of undergoing foreclosure or a short sale are greater than the amount they can write off.
RESOURCES
Feldman Law Center: Profile - Business Exchange Press Release - The Feldman Law Center's Code of Ethics and Practices Loan Modification - Feldman Law Center Feldman Law Center, Mission Viejo CA 92691 Feldman Law Center - The Cream Rises in Loan Modifications Feldman Law Center - Ten Tips for a Successful Home Loan Modification Feldman Law Center - Saving Thousands with a Loan Modification – Debt Settlement Combination Feldman Law Center - Mission Viejo, CA, 92891 - Citysearch Feldman Law Center - The New York Times gets it About Half Right Feldmanlawcenter.com - Feldman Law Center Company News Feldman Law Center
