Upside Down Mortgage

Archive for November, 2007

Loan Modification Letter To Lender

Over the course of the last year, federal laws regarding loan modifications have changed radically.  Between the end of George W. Bush’s presidency and Barak Obama’s new administration, federal laws  have opened new opportunities for homeowners to avert foreclosure and have access to loan modifications.

Basically, there are four core laws which create the guidelines for all mortgages.  These laws attempt to make the guidelines uniform, based upon equality and that they be administered fairly.  All lenders are required to operate under certain rules, regulations and procedures when taking loan applications.  The rules are: the Real Estate Settlement Procedures Act (RESPA), the Truth in Lending Act (TILA), Equal Credit Opportunity ACT (ECOA) and the Fair Credit Reporting Act (FCRA).  Some of these laws are quite old and were passed in a very different era, but Congress hopes that these rules provide the kinds of guidance that will help people borrow money to get a home without being taken advantage of.

RESPA requires lenders to give a good faith estimate of all closing costs that you are likely to pay.  The hope is to keep the borrower from being forced to pay hidden fees at closing.

TILA requires that annual percentage rate (APR), term of the loan and total costs be disclosed to a borrower prior to extending credit to the borrower.  This information must be obvious on documents presented to the consumer before signing, as well as on periodic billing statements (although that is less often).    Obviously, subprime mortgages, and other “creative†forms of mortgages, may have violated this law.

ECOA prohibits any discrimination in lending based on race, creed, religion, national origin, sex, marital status or age.  Discrimination does not just mean refusing to give a mortgage, it could also mean taking advantage of people and giving them unfavorable mortgage terms just because of their minority status.  

FCRA promotes accuracy, fairness and privacy of information in the files of consumer reporting agencies.  When you apply for a mortgage, the lender always pulls a credit report and FCRA gives you access to the report they pull.  If you have ever been rejected for a credit card, you will doubtless have received a letter explaining the decision and informing you of your right to view your credit report; this is due to FCRA.

California loan modification attorneys are familiar with the state and federal laws governing loan modifications, as well as how those laws can be used to benefit your situation.  If you are facing foreclosure, there is a chance that your mortgage company might have violated one of these statutes.  This could be used as leverage either during a loan modification or even during litigation.  The federal government is still investigation how often mortgage companies such as Countrywide violated these laws in selling people subprime mortgages.  Having a mortgage with a highly fluctuating interest rate certainly seems to violate some of the federal laws mentioned above, as does the tactic of lying about the borrower’s income (which some real estate agents did quite often).  A loan modification attorney can be a big help in figuring out just how the laws governing mortgages can benefit you.

About the Author:

Loan Modification Help Center is a free gathering place for resources and information on the rapidly evolving field of loan modifications. The internet is over flowing with information on this subject with the problem being that there can be as much bad information and advice as good. For a homeowner struggling with mortgage payments and facing the possibility of foreclosure, the importance of getting straightforward information with no agenda or ulterior motive is of utmost importance. The resources we make available at Loan Modification Help Center are just what homeowners need as they seek to understand their options and get the information they need to make the critical decisions involved in a loan modification. For more information about loan modification programs visit loanmodificationhelpcenter.org.

Article Source: ArticlesBase.com - Loan Modification Help Center – Federal Law Governing Mortgage Lending

Loan Modification: 3 Things You MUST Know

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Mortgage Modification Budget Worksheet

Dealing with mortgage problems including loan modification and foreclosures is fraught with several pitfalls due to the multiplicity of complicated laws and bylaws. Most homeowners do not have any knowledge of the thin lines, hidden charges, the old and outdated clauses, and the latest changes that are made from time to time.

The legal implications of these laws are beyond the comprehension of the common homeowners. Most people just append their signatures on the dotted lines at the end of the application forms. They feel shocked when they receive unexpected demands and notifications from the lenders or the banks.

Most borrowers are generally tight on budget and are reluctant to engage the services of qualified and experienced attorneys. They, therefore, tend to trust what is mentioned in the headlines of the lenders’ ads.

Some homeowners sit silently and do nothing to stop the process of foreclosure thinking that the law will take its own course and there is nothing they can do about it. If you consult a loan modification attorney, you will be surprised to discover that you can save your home from foreclosure by seeking modification in your loan terms.

The rate of interest on your loan can be substantially reduced. The loan term can be increased and the principal balance amount too can be slashed. There are several laws that only an expert attorney is expected to know and an ordinary homeowner remains unaware about them.

It is always advisable to seek the advice and assistance of a reputed attorney who has sufficient expertise and experience in handling the loan modification and foreclosure cases. Their services are needed all the more if you are lagging behind on your mortgage payments, facing penalties and other charges, suffering financial scarcity, apprehending foreclosure auction, or, have been trapped into debt by a predatory lender.

A loan modification attorney can negotiate with your lender on your behalf to reduce the rate of interest to your affordability level. They can help in getting exemptions on fees that are charged for default payments and also negotiate for a reduction in the principal balance.

As a layman you may not be able to present your case for loan modification in a heart-felt and convincing manner. You have to submit your application with a completed budget worksheet to enable the lender to consider the loan on new terms.

An experienced attorney is much better qualified to present your hardship letter in such a way that your loan modification proposals are not declined. As a worried and tensed borrower, you may not be able to do so in the best possible way.

It must be known that scores of loan modification assistance companies have cropped up in recent years to take advantage of the collapse of the real estate market. They consist of people who were erstwhile mortgage brokers. They are more likely to mess up your matters than provide any helpful solution.

Some of these companies try to defraud the hapless homeowners of their hard earned money by offering false promises of relief. Others charge them for auditing their accounts. They point out accounting defects that have no relevance to the current loan situation of the borrowers and extract heavy fees from them in the name of correcting the problems.

A reputed loan application and foreclosure attorney will surely not ruin his reputation by resorting to such low methods. They are the perfect choice to get you out of the furnace and back on the path of a stable financial situation.

About the Author:

Tony parker writes about home loan defense. Home Loan Defense can save you from foreclosure. Our attorneys will walk you through the options you have, options that lenders completely disregard, which can keep you from losing your home.

Article Source: ArticlesBase.com - The Importance of Using an Attorney to Handle Loan Modifications and Foreclosures

Obama Loan Modification Bank Of America

If are searching for information about a Bank of America mortgage loan modification, you will want to check out the link below.  They have a free calculator that will tell you what your new monthly payment would be if you were approved.

This calculator runs off of the Obama Mortgage Plan (or the HAM program).  Within these guidelines, your monthly mortgage payment will be capped off at 31% of your net monthly income. 

This is accomplished with 3 steps, but stops when the cap is reached.  For example:

1. Lowering your interest rate to 2%

2. Increasing the term of your mortgage loan, i.e. from 30 years to 40 years.

3. Reducing your prinicpal balance.

The last one is very rare.  This is because when you lower the interest rate as low as 2% and increase the terms of the loan, most people are usually under the 31% cap and there is no need to reduce your balance.

I know everyone is looking for a balance reduction, but think about this.  This program actually makes your payments affordable.  That is what you need if you are facing a financial hardship and are struggling to make your payments.  A payment reduction is all you need to think about if you are trying to keep your home. Getting a 2% interest rate is going to drop your monthly payments big time!

Plus, you did purchase the home for that price.  It's good to remember that, even if you bought in "05-'06 and you've seen your values plummet.  Real estate is a risk, after all.

Ok, go to this website and check out the loan modification calculator.  This can tell you what to expect your new payment to be if you are approved for this program.  Bank of America does have these guidelines in place, so all you need to do is get approved and your good.

Not as easy as it seems, however.  You need to have your financial information presented correctly to Bank of America or you will be denied for sure, like thousands of other homeowners.

If you like the new payment from the calculator and would like assistance getting that payment, just fill out the form to the right of the calculator and someone will be glad to help make that payment a reality for you.

About the Author:

To see what your Bank of America mortgage payment would be with an Obama loan modification, just go to bank of america loan modification or loan" target="_blank">www.theloanmodificationcompany.org">loan modification bank of america. The calculator is free to use and it does not ask for any personal information. If you would like assistance in obtaining that payment, I suggest you contact them for help!

Article Source: ArticlesBase.com - Bank of America Mortgage Loan Modification Calculator - Calculate Your New Payment Today!

ISYU NGAYON: Obama's Mortgage Rescue