Upside Down Mortgage

Archive for April, 2008

Predatory Lending Lawsuits

Question: Adding to Carrie's Questions?

The law 348.301 trumps the truth and lending law. Concerning loans. Texas is one of the few states which or cannot win a lawsuit for predatory lending. During the early 2000 when all the auto manufacturers we're being sued, in all 48 states, Texas residents could not sue. Understanding the questions Carrie is asking is simple. (the law is hidden, because it's not disclosed to consumers on their loan documents) We shouldn't get mad, get educated, before you buy.

Answer: Okay. Do you have a question?

IS YOUR HOME IN DANGER OF FORECLOSURE?

If you're new around here, you might want to subscribe to our Upside-Down Mortgage RSS feed. It's quite likely the only feed of it's type on the internet!

Loan Modification Broward

Can a real estate agent effectively represent the homeowner in negotiations with the bank or review the paperwork with respect to deficiency and loan forgiveness?

The answer is NO. In today’s market of surging foreclosures, the need for an attorney that concentrates in foreclosure defense has become irrefutable. Many analysts have spent countless hours discussing why foreclosures have hit record numbers over the last few years, but the reasons are irrelevant. For consumers affected, it is imperative to begin to rebuild and repair, time better spent controlling the damage set forth. And, the important thing to remember is that this can be achieved; by hiring an attorney to fight foreclosure status and/or identifying potential alternatives, such as short sales or loan modifications on behalf of their clients.

Although each foreclosure situation is different, an attorney will begin any foreclosure procedure by researching any violations or discrepancies written in your mortgage contract; this will strengthen your defense in the foreclosure proceedings. Banks are much more likely to negotiate a deal after an attorney advises them of the violations to the law found within your mortgage contract. The information is used as leverage in defending your case and negotiating an apt settlement.

As mentioned above, there are options to just giving your home up in foreclosure. The term "short sale" has been tossed around quite a bit, but many are unfamiliar with its definition. In short, a short sale is nothing more than negotiating with lien holders a payoff for less than what they are owed, or rather a sale of a debt, generally on a piece of real estate that is ‘short’ of the full debt amount. It does not extinguish the remaining balance unless settlement is clearly indicated on the acceptance of offer. Payments for the remaining balance are negotiated and must be agreed upon by both the lender and borrower.

Loan modifications, on the other hand, do not require selling the home; and allows the bank to make loan payments more affordable for borrowers. They may change interest rates, loan terms, loan balances, or other parts of the loan agreement. The most common loan modifications are lowering the interest rate, reducing the principal balance, 'fixing' adjustable interest rates, forgiveness of payment defaults & fees, or any combination of these. A loan modification can help homeowners who can not refinance or afford their current mortgage payments.

There are several other alternatives that may also be appropriate, based on an individual’s situation. An experienced Foreclosure Defense Attorney will be able to advise their clients of these options.

KALIS & KLEIMAN is a Foreclosure Defense law firm serving clients in Davie, Ft. Lauderdale, Hollywood, Plantation, Weston, Lauderhill, Hallandale, Pembroke Pines and all of Broward and South Florida. Kalis & Kleiman also serves clients in Ocala, Gainesville and Central Florida. Together Neal and Scott have more than 50 years of combined experience and have participated in thousands of transactions, settlements and trials. Kalis & Kleiman have earned a reputation of legal excellence and a history of successfully managing Foreclosure Defense cases. Headquartered in Davie, Florida, at 7320 Griffin Road, Suite 109. Attorney Neal Kalis and M. Scott Kleiman can be contacted at (954) 791-0506. Additional information about the law Firm of KALIS & KLEIMAN may be obtained from the firm's website at www.kaliskleiman.com.

About the Author:

Article Source: ArticlesBase.com - Surging Foreclosures… Need For Foreclosure Defense Attorney Irrefutable

Miami Loan Modification Help - Stop Foreclosure

Mortgage Modification Counseling

This is  great question.  Because there are two schools of thought on the loan modification cost issue.

School of thought #1 – loan modification should be free

This is absolutely true.  In fact, anyone can apply for a loan modification directly through their lender and in most cases it will be free.  Zip, zero, zilch!  Free.  Many homeowners go this route and have some success working directly with their lender to get their home loan modified.

Also, there are government agencies that are set up to help homeowners in trouble that want loan modification advice.  If you want help or advice you can check with a HUD approved counseling agency.  You could also check with your state department of real estate or similar to find out what resources are available to you at the State level to assist you with getting a home loan modification.  All of these options are free to you.

School of thought #2 – Higher a professional or expert modification company to get the job done right.

There it is hire… hire = money.  Well, that’s the truth of it, it’s going to cost some money to go down this path.  A Quality loan modification company is going to charge somewhere between $2,500 and $3,500 for their services.  Anybody that’s charging less I would seriously wonder if it isn’t somebody down in their basement negotiating with your bank.

Is it worth it.  Absolutely!  Why? Because a professional loan modification company is going to bring a lot more knowledge and expertise to the table than you have on your own.  Look, you’re an expert at what you do but more than likely you’re not well versed in the legal aspects of mortgage banking, state lending laws, RESPA laws, TILLA laws and all of the other legal aspects that go into a mortgage.  A professional modification company will have lawyers on staff or retainer that have expertise in these areas that they can bring to bear on your lender.

Also, an expert loan modification company is going to have already established relationships at all of the major banks.  When you as the consumer get turned down… they can reach out to these contacts and get the modification done.  These industry relationships have a lot of value when it comes to getting loan modifications approved.

Let’s be honest with each other for a moment – do you really think the banks care about you and getting the best deal possible for you.  Or is it more likely they are mostly concerned with their own bottom line and their own concerns.

As a homeowner, trying to do a loan modification on your own, you are more than likely not familiar with all the different types of deals your bank is structuring and giving out.  You wouldn’t know that if your bank offers you a fixed 5% rate that they gave a 4% rate to the next guy in a similar situation.  That 1% difference on a $200,000 loan would cost you an extra $42,772 over 30 years.   A professional home loan modification company will know what a good deal is and represents your interests with the bank – they’ll know what a good deal looks like and if they're worth their salt they won’t accept anything less than a good deal for you.

Finally, and I think this one is really one of the huge bonuses to clients of an expert loan modification company – you don’t have to worry about it.  If you’re trying to negotiate your own loan modification then you’re walking around stressed all the time wondering if you’re screwing it up, worrying about why the bank isn’t calling back, and wondering if you’ll get declined.  Engaging the services of a professional mortgage modification company relieves you of that stress and anxiety, and lets you enjoy your life a little more.  It frees your mind up to focus on your family, or work, or whatever you want.

For some homeowners there is a lot of value in having a professional on their team... for others... not so much.  As a consumer you need to choose the best option for you and then move forward and take action.

About the Author:

In 1998 Mr. Richards graduated from University with a bachelor’s degree in Business Management and Finance. He founded a successful company that helped hundreds of homeowners to get on the path to financial freedom. He also over 7 years experience in the home mortgage industry. He loves helping people! Especially when it comes to helping them keep their homes and pay off their debts.

Mr. Richards is happily married with four beautiful children. He is currently serving as a consultant for SureFast">http://www.SureFastLoanModification.com”">SureFast Loan Modification.com.

Visit our blog at All">http://surefast.wordpress.com”">All About Loan Modifications

Article Source: ArticlesBase.com - How Much Does A Home Loan Mortgage Modification Cost?

American Debt Counseling