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Loan Modification During Bankruptcy

Homeowners hoping to get a loan modification with Countrywide may want to rethink their options. Countrywide Financial, best known for excessive lending practices that led to widespread defaults, now has so many bad debts on its books that it may have to tighten up its loan modification service.

Home Loan Modification allows defaulting borrowers to work out new terms with Countrywide, so that they can avoid foreclosure and stay on track. Countrywide began offering the service through their Home Retention Department at the height of last year’s real estate bubble. However, due to the volume of requests coming in, many cases were delayed and resulted in foreclosure. The company hit an all-time low in 2008 and was recently bought out by the Bank of America.

In line with the change, the Loan Modification Department of the Law Offices of Marc R. Tow is also taking measures to protect its clients. The firm, one of the leading loan modification services in the country, will only negotiate modifications with Countrywide for clients with viable cases and those who are in serious financial trouble.

Changes are also expected in national Loan Modification policies. While loan modification is still open to borrowers not in default, new laws may soon limit the service only to those in bankruptcy or serious delinquency. This will allow lenders and loan modification companies to focus their attention to clients who are most in need.

The firm will continue to help clients with loans serviced by other companies. Besides loan modification, the Law Offices of Marc R. Tow also offers assistance with loss mitigation alternatives such as short sales.

About the Author:

The Loan Modification Department is composed of a team of attorneys, mortgage and real estate professionals, and hardship analysts. Lead by Expert Loan Modification Attorney Marc R. Tow, Loan Modification Department has helped thousands of American Home Owners save their Homes and decrease their loan payments. For more information Just Call 800-738-1170 or Visit our website http://www.cdloanmod.com/

Source - Countrywide to Tighten Up Loan Modifications

Las Vegas Bankruptcy Attorneys Haines and Krieger - Loan Modification

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Mortgage Modification Bankruptcy Bill

An increasingly  popular alternative to foreclosure is the loan modification,  an agreement where the bank and borrowers reduce the cost of the loan for a  period of time to allow payments to be made on time.  A loan modification is  much like a mortgage refinance in that the objective is to find you a more  affordable mortgage payment for your financial situation.  Refinancing your  existing mortgage to obtain a more affordable mortgage payment could still be  an option.  However loan modification is often the best solution for the  homeowner that has incurred a financial hardship that prevents other mortgage  financing or payment options. The purpose of a loan modification is to help  make the loan more affordable to the borrower.

A Loan Modification is a permanent change in one or more of the terms of a  mortgagor’s loan, allows the loan to be reinstated, and results in a payment  the mortgagor can afford.  Loan modification is a relatively new term for  most people, but with the current market conditions and mortgage crisis, it  is becoming increasingly popular.  When possible, loan modification is a  preferable alternative to bankruptcy.  Additionally, loan modification is a  more fiscally  attractive solution for any lender.

Loan modification programs are typically designed for homeowners who are  having difficulty making their mortgage payment, but who can’t qualify to  refinance their mortgage.  Loan modification may include reducing the  interest rate, extending the term of the loan from 30 to 40 years, or adding  missed payments to loan balance.  Loan modifications are not the same as debt  consolidations, refinancing loans, or even forbearances.  Loan modifications  stop foreclosure proceedings and instead reinstate the loans as they are  being modified.

The lenders motivation in modifying a loan is that this is a better  alternative to foreclosure.  However, homeowners today are under the false  impression that they cannot apply for a home loan modification if they are  not in foreclosure.  A loan modification allows the lender to transform a non- performing asset into a performing one and avoid the cost of foreclosure.   The bottom line is that a loan modification is intended to reduce the  payments for the borrower, make it more affordable, and reduce the risk that  the homeowner will default on the loan.

So here again, loan modification is preferable, in that a renegotiated loan  agreement allows you to keep paying down your monthly mortgage while  maintaining your credit rating.  Whether it’s reducing the borrower’s note  rate or monthly payment, or extending the maturity date, a loan modification  is a possible option for a borrower in default.

Understanding the plight facing homeowners today and the very real threat of  foreclosure,  assistance during the process of applying for a loan  modification is essential. It is important to make the lender work with the  homeowner to provide the best possible solution before it is too late.  In  the final analysis, loan modification is usually preferable to filing for  bankruptcy and is a fundamentally sounder strategy than defaulting on the  entire mortgage and creating costly foreclosure proceedings.

Bill M | www.hotmortagedeal.com

About the Author:

Bill leverages his 18 years of experience in the financial services industry to write informative articles for the non-industry reader. Learn more at www.hotmortgagedeal.com

Article Source: ArticlesBase.com - Loan Modification Tips

Bankruptcy Mortgage Modification Bill

Foreclosure is always a race against time. Although a home loan modification can slow the process, you have fewer options the longer you wait. Not all lenders have the staff or experience to handle mortgage loan modifications. Even with a capable attorney, the process can drag on for months.

But you don’t have to sit and wait. There are some things you can do to speed up the process. Once your home loan modification is under way, these steps can help you get more positive results.

1. Put everything on paper. It’s not uncommon for lenders, especially smaller ones, to lose track of your application. To prevent delays, make sure all your efforts are documented and kept on file. This includes all the calls you make and receive, both from your lender and loan modification attorney. Keep receipts of all your transactions, and make copies so you don’t have to let go of the originals.

2. Do your own financial statements. Part of every home loan modification is a financial worksheet, which will be your main basis for qualification. Most lenders have their own forms, but it won’t hurt to make your own as well. If your lender insists on using their worksheet, at least you’ll have all the information ready.

3. Be as detailed as possible. Too much information is better than too little, and it limits the chances that they’ll call you for more information. A typical worksheet for a mortgage loan modification will include the following:

-Your contact information (address, home phone and work phone, fax and email)

-Information about your property, including the estimated value

-Your current income

-Any additional income, such as welfare, child support, etc.

-Your estimated total value, including other assets such as real estate, investments, savings and checking accounts, IRAs, 401(k), stocks and bonds

-Liabilities, such as existing loans, monthly bills, medical expenses, and tax liens

4. Keep all your bills. The financial worksheet will require you to dig up old bills and hold on to the ones that keep coming. This will help you keep the information as accurate as possible. You may also need to present these bills (or copies of them) along with your hardship letter, which explains why you need a mortgage loan modification. Even if they don’t ask for it, it’s best to include them anyway. That way, there’s no reason for your lender to doubt your statement. The more proof you have, the better your chances of getting that home loan modification.

Be sure to submit as much truthful and verifiable information to your loan modification attorney so they are able to compile the best case to submit you your lender.

About the Author:

Loan modification Department helps you legally change the terms of your mortgage so that you can pay it off better. But you can't expect lenders to make it easy. In fact, many homeowners fail to reach a reasonable settlement with their lenders, and even those who do have to settle for less-than-satisfactory setups. That's where your loan modification attorney comes in.

Article Source: ArticlesBase.com - How to Speed Up the Loan Modification Process ?