All About Mortgage Loan Modification Process & Bankruptcy

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Presentation Description

Americans hold an estimated $10 trillion in mortgage debt for a family residence. While the mortgage payment may be a stretch during “normal” circumstances, a financial difficulty can lead you with few options. Read the whole PDF to understand how loan modification can help you solve debt repayment and modify your interest rate.

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Presentation Transcript

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M O D I F I C A T I O N NATHAN A BERNEMAN M O R T G A G E L O A N A L L A B O U T

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The average mortgage for first-time homeowners is 260386 but the combined cost of the mortgage utilities and insurance can range upwards of 1500. Americans hold an estimated 10 trillion in mortgage debt for a family residence. You could modify or refinance your home loan. Or you can file for bankruptcy.

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A loan modification is a change to your terms to mitigate loss. The change can extend the number of years for repayment forebear reduces your principal balance or reduces your interest rate. What is a Loan Modification

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The modification of your mortgage loan should get you out of your current haphazard situation and allow you to get back on your feet financially. The goal of the loan modification is to make your payment more affordable but the goal for your lender is to avoid a default or the loss of any more money than necessary. Modifying a Mortgage Loan

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Depending on your loan your situation and other factors the lender can offer modification options including:

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A loan extension--from 30-to- 40 years for example. • A lowered interest rate. • An agreement to add the arrears to the loan debt. • The conversion of the loan from an adjusted-to-fixed-rate mortgage. • A possible deferral or even forgiveness of part of the principal on your loan.

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While the lender doesnt technically have to offer generous terms or offers to help mitigate your financial hardship but its often worth it for the lender to work with you so they can avoid the cost and inconvenience of foreclosure.

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Depending on your financial situation and hardship you may also be eligible for other government programs that can get you even more favorable terms. The Flex Modification Program for example is designed to prevent foreclosure. Even if you arent eligible for government programs your lender may offer a modification program to meet your needs.

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Who Can Qualify For a Loan Modification

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You might qualify for a loan modification if your loan is owned by a bank or mortgage company. You could also be eligible if your loan is a Fannie Mae or Freddie Mac loan. Other qualifying factors could include:

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Your house value has declined so such a degree that you now owe more than your home is worth. Youre spending more than 31 of your income on your housing costs every month. Your current financial situation puts you in danger of default or you may have already defaulted.

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How Can a Bankruptcy Attorney Assist You Get Loan Modification

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A loan modification can happen concurrently or separately from your bankruptcy. Either way a bankruptcy attorney should be able to assist you in navigating the process. He or she can review the paperwork make sure the agreement is in your financial best interest and consult with you on how to best accomplish the loan modification. The law does not require a lender to offer a loan modification. The lender is only required to review your application. Having a lawyer in your corner to review offer advice and to advocate on your behalf with the lender is always beneficial.

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NathanAbernamanAPC bernemanlawfirm.com 8054927045 Nathan-A-Berneman-APC

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