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Loan Modification Assistance
[April 24, 2008] by Foreclosure Help
Filed under: ARM Mortgate payments increased, Foreclosure Options, How to Stop Foreclosure, Loan Modification Assistance, Need a Loan Modification, free foreclosure help

If you need loan modification assistance we can help. We have helping homeowners acquiring loan modifications for over 4 years now and have been saving homes for over 6 years. Not only do we know the business of foreclosure assistance but we actually worked in the loss mitigation industry as homeowner retention negotiators in both prime and subprime. If you have had a hardship in your life but it has been resolved and you can now afford your home we can help stop foreclosure. If you are facing an increase in your interest rate that will put your payments out of reach we can help you stop foreclosure also. Click this link (Stop Foreclosure) and we will contact you and discuss your issues and once we take your case we really push for a loan modification and work on fixing your interest rate or extending your term to get a payment you can afford. We are here for you.

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Loan Modification
[March 8, 2008] by Foreclosure Help
Filed under: Foreclosure Options

Loan Modification
A loan modification is a permanent change in one or more of the original loan terms on a homeowners original loan, which allows reinstatement of the loan and prevents foreclosure. As a foreclosure prevention alternative, a lender may consider modifications which:

Capitalize delinquent interest, escrow, fees, and costs (based on permission on P&S Agreement)
Implement a step rate mortgage
Extend the term of a mortgage
Reduce and modify the interest rate
Or any combination of the above considerations.

What a loan modification does:

Instantly removes a loan from foreclosure
brings a loan current (we are able to negotiate in some instances with $0.00 out of pocket)
Adjusts the term and rate of the mortgage

Different Types of Loan Modifications:

Straight Capitalization Modification - This modification adds delinquent interest to the principal balance and the loan is re-amortized over the existing interest rate and term
Term Extension - This modification extends the term (number of months). The rate stays the same and the re-amortization is done same as straight cap listed above. The term can not exceed your original mortgage term (if you started with a 30 year mortgage the term can not extend past the 30 years from modified date)
Step Rate Modification - This modification also adds the delinquent interest to the principal balance but the interest rate is temporarily reduced to allow a homeowner the opportunity to afford the payment. The typical step rate modification would drop 1% for every year and they typically do not last longer than 3 years.
Interest Rate Modification - This modification adds delinquent interest to the principal balance and the loan and the loan is re-amortized at a reduced interest rate.
A combination of any of the above

Want to learn more Loss Mitigation Training

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Foreclosure Options after Sheriff Sale
[March 3, 2008] by Foreclosure Help
Filed under: Foreclosure Options

Depending on the state you live you may have time after the sale of your home in foreclosure to live before you are evicted. During what is called the redemption period you have to option to sell or refinance the property to avoid foreclosure. Again, depending on the state in which your house was foreclosed you have a period of time to stop the foreclosure eviction process, this time frame is know as the redemption period and banks have to just sit and wait for that time to come before they can put the property into REO unless the house was purchased at the foreclosure sale. You must be aware that the clock is still ticking during the redemption period and they need to act quickly or risk losing their home to foreclosure. You will need an exit strategy in order to keep the foreclosure off of your record and stop the foreclosure process. During the foreclosure process and shortly after the sheriff sale you must have a plan to stop the foreclosure on your home, some states have a redemption period for 6 months or more you must continue to seek out foreclosure options. Most options to stop foreclosure take time and there is no waiting or negotiating with the bank during the redemption period. A few of the strategies to consider to stop foreclosure are to refinance. Unless you have plenty of equity in your house and know a hard money lender (lenders who specialize in poor credit loans but consider the equity in the property may be willing to write a new loan despite the foreclosure) this is a tough foreclosure option to complete. The most used option to stop foreclosure after the sheriff sale is selling the property and if you are in a long redemption state or owe too much money on the house there is a possibility for a short sale (selling the house for less than the mortgage balance). The lender may be willing to take less, rather than having to evict you and then sell the property through a Realtor on the open market. There are no reinstatement options during the redemption period so the loan has to be taken out (sold or refinanced). You must remember the mortgage company does not want the property they want the property off of their books or else they are going to have to sell for themselves, creativity is the name of the game.

The last possible option you can use a family member or someone you can trust. The foreclosure option is called a leaseback. With this option you sell your property, to a family member or someone you trust, and lease the property back for an established period of time. This can be a great homesaving technique you just need to be sure to have everything in writing. Business between family members or friends can get difficult so document the entire process.

If you are unable to save the home you can still use the redemption period to live rent free for a few months to pay off other debts and save up for a down payment for your next home. Be sure you know how long the redemption period is for your state and stay in touch with your lender during the process to keep track of the time left before you are evicted.

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