In the United States right now, foreclosure rates are higher than they've ever been. Homeowners are literally fleeing their homes and letting the banks deal with what they leave behind. Since banks are in the banking business and not the real estate business, they don't really want the houses back. If you're in a place where you think you'd be better off leaving your home because you can no longer afford your mortgage payment, you should first look into one of the many programs available to you! It IS possible to re-work your mortgage loan to better suit your financial needs.
Loss Mitigation, Loan Modification and Home Loan workout programs are three options you have. Many companies offer one or all of the programs just mentioned, but before signing up with any company, check them out first! Make sure they are reputable. Financial relief is possible with a successful program offered by the right company.
Take, for example, a borrower with a $400,000 mortgage loan at 8%, living in a home worth $340,000. Once the home has been foreclosed, the bank has to either re-list the home on the market or sell it at an auction. Re-listing or auctioning off the home could potentially add another $60,000 in losses for the bank.
In this example, bank will lose at least $120,000 if a client decides to "walk away". Through modification and lowering interest rate to 5.25% on a 30yr fixed term, bank will make close to $400,000 in future interest payments. The result is a win-win for all parties involved.
Homeowners can occasionally be successful at working out loan modifications on their own, however default rates with attorney-backed modifications are 5% or less. Self-help modifications are defaulting at over 50%. This is why banks prefer to work with attorneys.
More often than not, if an attorney structures a loan modification for you and it doesn't work out, their fee is refundable. You're likely to see incredible results from restructured loans! Loan principal reductions, interest rate reductions, extended payment terms and lower monthly payments are all feasible when you modify you loan.
If you are having trouble making your current mortgage payments or are in an adjustable rate mortgage that has or is about to adjust, give us a call and get a free consultation to see what can be done for you. There is no charge unless we determine that we can help and you decide to get started. Give us a call at 1.888.282.1011 and ask about our home loan modification program. - 15485
Loss Mitigation, Loan Modification and Home Loan workout programs are three options you have. Many companies offer one or all of the programs just mentioned, but before signing up with any company, check them out first! Make sure they are reputable. Financial relief is possible with a successful program offered by the right company.
Take, for example, a borrower with a $400,000 mortgage loan at 8%, living in a home worth $340,000. Once the home has been foreclosed, the bank has to either re-list the home on the market or sell it at an auction. Re-listing or auctioning off the home could potentially add another $60,000 in losses for the bank.
In this example, bank will lose at least $120,000 if a client decides to "walk away". Through modification and lowering interest rate to 5.25% on a 30yr fixed term, bank will make close to $400,000 in future interest payments. The result is a win-win for all parties involved.
Homeowners can occasionally be successful at working out loan modifications on their own, however default rates with attorney-backed modifications are 5% or less. Self-help modifications are defaulting at over 50%. This is why banks prefer to work with attorneys.
More often than not, if an attorney structures a loan modification for you and it doesn't work out, their fee is refundable. You're likely to see incredible results from restructured loans! Loan principal reductions, interest rate reductions, extended payment terms and lower monthly payments are all feasible when you modify you loan.
If you are having trouble making your current mortgage payments or are in an adjustable rate mortgage that has or is about to adjust, give us a call and get a free consultation to see what can be done for you. There is no charge unless we determine that we can help and you decide to get started. Give us a call at 1.888.282.1011 and ask about our home loan modification program. - 15485
About the Author:
Jon Ochs is the founder/CEO of NCA Credit Repair Inc., a nationally recognized and trusted Credit Repair Company.
