The Foreclosure Mitigation Company

“I Want To Keep My Home – Will A Loan Modification Help?”

The simple answer is “I don’t know”.

As a pre-foreclosure specialist, I come across many homeowners that would like to keep their home, but don’t know what their options are.   They may have thought about getting a loan modification as you can’t help but see advertising all over the place for this today, or maybe they received a letter from their lenders stating that they would like to help them with a workout plan (loan mod) so they can stay in their home.

If you haven’t done so already, first and foremost I suggest that you contact your lender directly and let them know your situation and ask what solutions they are offering their customers who want to stay in their home but are having a hard time with their current payment structure.   They typically do not charge their customers for this service.   Now, if after doing this you feel like you’re not getting the attention or help that you need or you still have questions, check out these free resources and possible solutions below.

Keep in mind, and not to be discouraging, loan modifications do not work for many and sometimes are not the best solution no matter what the desire is.   A recent report came out stating that over 50% of the loan modifcations completed last year in 2008 have already since defaulted and are at risk of foreclosure.

This is a significant fact – The Center for Responsible Lending made this statement:

“The reality is that lenders are just not doing them [loan mofications], and even with the assistance of HOPE NOW or ACORN or any other housing counseling agency, assistance and true help is hard to come by.”

~ Center for Responsible Lending http://www.responsiblelending.org/

ACORN: http://acorn.org/ or Acorn Housing: http://acornhousing.org/index.php

Hope Now: http://www.hopenow.com/

NEIGHBORHOOD ASSISTANCE CORP OF AMERICA

https://www.naca.com/index_main.jsp

If you have gone through the above options and you’d like to learn more, I’ve included links under Blogroll.

Your Possible Options:

Modifications
• Extend the term of the loan to 30 years, 40 years, and even 50 years.
• Reduce interest-only accounts all the way down to 3.25%.
• Change interest only accounts into 30, 40, 50 year fixed rate terms with interest rate reductions all the way down to 5.25%.

Forbearances (payment suspension 3-12 months)
• Your lender can do this for temporary (short term) financial hardships.
• Homeowner must be able to provide a letter of hardship with specific details.

Short Sales
• We can help homeowners and their chosen real estate agent process the paperwork.
• This option saves the homeowners credit score and forgives the deficiency balance.

Deed in lieu of foreclosure
• Must have had home listed for sale a minimum of 90 days with a licensed real estate agent or broker before your lender will proceed with this option.
• The Lender takes back the home and sells the property themselves
• This option saves the homeowners credit score and forgives the deficiency balance.

Formal Repayment Plans
• Your can structure a repayment plan that suits the homeowners current financial situation which will allow them to keep the property and stop the foreclosure process.

Please note that the above is for informational purposes only and that I am not offering any type of service related to loan modifications.

Kenny Wagner
Short Sale Specialist
Foreclosure Mitigation Specialist
The Foreclosure Mitigation Company

1-702-204-3945 Direct
1-206-971-5033 Fax

kenny@tfmcpartners.com