The professional loan modification experts at www.adjustMYLOAN.com just wanted to take a second and thank the brave men and women in the Armed Forces that tirelessly defend our great country. Our owner Cody Sperber was a member of the United States Navy (honorable discharge) and understands the hard work and dedication each member of our military (and their families) go through each and every day. So to the past, present, and future soldiers of our great country we want to say thank you and happy Memorial Day 2009.
ADJUSTMYLOAN.COM EXPLAINS ARIZONA’S ANTI-DEFICIENCY LAW
Okay…first a quick disclaimer: AdjustMyLoan.com (Arizona Loan Modification Experts) is not giving you legal advice, stop foreclosure advice, or creating any type of client-Attorney relationship. This is informational only and we suggest you speak with a trained real estate / tax attorney about your specific situation and the rules / laws in Arizona as they pertain to Arizona’s Anti-Deficiency Statutes. Now, on to the good stuff.
When a homeowner purchases residential property in Arizona and defaults on their loan(s), their lender(s) have certain remedies they can pursue. They can sue the borrower directly or conduct either a Judicial or Non-Judicial foreclosure. Since Arizona is a Trust / Deed state, in most cases lender(s) file for foreclosure (sending you a Notice Of Default) and conduct a Trustee Sale (non-judicial foreclosure).
In some states, when a home is sold at a foreclosure sale and the amount it sells for is not enough to cover the underlying debt secured by the real estate, the lender can come after the homeowner for the Deficiency. Arizona has two “Anti-Deficiency” statues that will often apply to loans secured by residential real estate that can protect you from this happening! The first one applies to mortgages that are foreclosed on judicially (this practice is rarely used anymore but if you want to learn more, see A.R.S. 33-729(A)). The second Anti-Deficiency statute applies only to deeds of trust when foreclosed via a trustee sale (see A.R.S. 33-814(G)).
This is the anti-deficiency rule most homeowners care about and the one we will focus on.
In order to be protected under this statute, you must have residential property that is used for single-family or dual-family dwelling, and on 2 1/2 acres or less. (Commercial properties and Multi-Family units larger than a duplex are not protected under this statute) Next, you want to understand what kind of money you borrowed. Answer this question; Did the money you borrowed pay for all or part of the home you purchased?
PURCHASE MONEY
If all or part of the money you borrowed was used to purchase the property, NO DEFICIENCY will be available except in the case of voluntary waste (A.R.S. 33-729(A)). Voluntary Waste is when you damage the home and diminish the value (so if you are short selling your home or letting it go to foreclosure, don’t hire a salvage company to come gut the property…you can be held liable for all damages!!!) We consider money borrowed to purchase the property as “Purchase Money” because you basically went to a bank and borrowed money to buy a home and the home itself was the only security for the loan!
Refinance loans also fall under this protection as long as you did not get a “Cash Out Refi”. The law is a little unclear if a lender can actually come after you if you did a “Cash Out Refi” because the Anti-Deficiency protection under A.R.S. 33-729 (A) applies to loans used for payment of all “or part” of the purchase price! (See Bank One v. Beauvais, 188 Ariz. 245, 937 P. 2d 809 (App. 1997)) So if you did a “Cash Out Refi” and you are being sued for a deficiency, you may have a chance….but probably not!
NON PURCHASE MONEY
If the money you borrowed was not used to purchase the property “Non-Purchase Money“, then you might have a problem (Home Equity Lines of Credit fall under this type of money). Your lender can choose to either sue you directly on the note and waive security of the mortgage or deed of trust, file a Judicial Foreclosure and after the sale sue you for any deficiencies, or just continue with a Trustee Sale. If they just continue on with the Trustee Sale, then you are in the clear and should be protected against further judgements (See A.R.S. 33-814 (G)). If the lender decides to file a Judicial Foreclosure they will file a lawsuit and seek a judgement foreclosure on the mortgage or deed of trust. This process is expensive and time consuming (sometimes lasting up to 12 months). If this happens, the homeowner will have up to 6 months from the date of the filing to bring the loan current, but if they fail to do so, the property will be sold at a sheriff’s sale and the lender will have up to 3 months to sue for the deficiency. The amount of deficiency is typically limited to the difference between the total amount owed and the fair market value of the property (not necessarily the auction price). Lastly, the lender can just sue on the note, forgoing any security in the property. They would do this if you have little or no equity, have other collectible assets, and they do not want to wait up to a year for a Judicial Foreclosure to work its way through the system. THIS IS THE ONE YOU NEED TO BE WORRIED ABOUT AND IF YOU DO GET SUED…HIRE AN ATTORNEY IMMEDIATLY!
FHA, VA, AND HUD LOANS
These type of loans have different collection rules and can result in action against the person. If you have these type of loans, we suggest you get real proactive real quick when working with the lender(s) and if you do get in trouble, hire an attorney to represent you!
SUMMARY OF ALL THIS LEGAL MUMBO JUMBO
Arizona is a Trust / Deed state meaning we use Deeds of Trust to secure residential real estate. If you have a single family or duplex home on 2 1/2 acres or less, and your loan is “Purchase Money”, you are protectedfrom deficiency regardless if the lender uses a trustee sale or judicial foreclosure.
If your loan is NOT “Purchase Money” you may be liable for any deficiency if your lender uses a Judicial Foreclosure, or waives the deed of trust and sues directly on the note. If your lender decides to do the traditional Trustee Sale, you are protected from further deficiency judgements!
CAN AN ARIZONA LOAN MODIFICATION GIVE ME DEFICIENCY PROBLEMS?
No, an Arizona Loan Modification will not trigger a deficiency judgement because you are not selling the property, you are just recasting the mortgage. AdjustMyLoan.com helps homeowners audit, package, propose, and negotiate loan modifications on their behalf. In every loan modification proposal we build, we ask for a reduction in the principal amount owed (Principal Balance Reduction). Many homeowners are “upside down” in their mortgage(s) and owe as much or more than their home is currently worth so we attempt to reduce the amount owed to reset the loan back to current market values. If approved by your lender(s), this Principal Balance Reduction can trigger a tax event and the lender could issue a 1099(c) in the amount that was written off, BUT WILL NOT AFFECT OR CAUSE A DEFICIENCY EVENT! We ask all lender(s) to waive their right to 1099(c) our clients as part of the acceptance of our proposals…in most instances this works and the lender absorbs the tax ramifications as part of the deal!
ADJUSTMYLOAN.COM “ARIZONA LOAN MODFICATION EXPERTS” WANTS TO EARN YOUR BUSINESS!
AdjustMyLoan.com is a national loan modification company based out of Phoenix, Arizona. Our Loan Modification Experts want to educate homeowners on any “Stop Foreclosure” options available to them and teach them how a loan modification can help them avoid foreclosure, lower their monthly mortgage payment, and maintain their credit. We are a member of the Better Business Bureau and have many referrals and testimonials to prove our business ethics. We offer FREE LOAN MODIFICATION CONSULTATIONS to see if you qualify for any Arizona Loan Modification Programs and have a tracking system so you can follow your loan modification progress from start to finish. If you are interested in learning how a loan modification can help you and your family, call the phone number below today!
WWW.ADJUSTMYLOAN.COM ANSWERS THE MOST FREQUENTLY ASKED LOAN MODIFICATION QUESTIONS!
WHAT IS A LOAN MODIFICATION?
Sometimes called Loan Restructuring or Mortgage Modification, a Loan Modification is an adjustment to your existing loan by your lender(s) as a response to your long-term inability to pay your mortgage. Loan modifications typically involve an adjustment of your interest rate, an extension of the length of the term of the loan, or a principal balance reduction all resulting in LOWER MONTHLY MORTGAGE PAYMENTS! A lender would choose to modify your loan if the cost of doing so would be less than the cost of default and foreclosure.AdjustMyLoan.com specializes in Loan Modifications and forbearance agreements.
CAN I ATTEMPT A LOAN MODIFICATION MYSELF?
Although in theory you could do your own loan modification, consider this: Do you have the experience, time, legal understanding, and energy to take on your own negotiations?Your lenders are never going to offer you the best loan terms right up front!In fact, they are going to push you in a direction that is in their best interest.
The loan modification experts at AdjustMyLoan.com audit, package, propose, and negotiate your Loan Modification to get you the absolute best loan terms available.
WHAT QUALIFIES ME FOR A LOAN MODIFICATION?
While there are some basic Loan Modification qualifications, each lender has their own requirements that continue to change.Typically, if you are stuck in a mortgage with a high interest rate, have a verifiable hardship that is preventing you from paying your mortgage, and provable monthly income you will qualify for most lender programs.
What if I am current?
Being behind on payments definitely helps motivate your lenders, however we have accomplished loan mods for homeowners with current mortgage payments.
Both primary and investment properties could qualify and your best bet is to call the loan modification experts at AdjustMyLoan.com for a Free Loan Modification Consultation: 1-800-557-7573 toll free or 480-968-5626 local.
HOW LONG DOES THE LOAN MODIFICATION PROCESS TAKE?
In most instances, a loan modification takes 60-90 days…but it could take longer, especially if we are requesting a principal balance reduction and your lenders legal department gets involved.By hiring professionals like those found at AdjustMyLoan.com you are assuring the fastest resolution possible.
You lender(s) would choose to accept a loan modification proposal if the cost of doing so was less than the cost of short selling or foreclosing on your home.In most cases a loan modification can be a win-win situation for both you and your lender…and a proper proposal is the key to conveying your situation.
Loan modification requests are paperwork intensive, and AdjustMyLoan.com’s Loan Modification Negotiators build proposals specific to your situation.
WHAT IS PREDATORY LENDING?
Predatory Lending is a term that refers to various illegal and immoral activities many lenders engage in when originating a home loan. Examples of predatory lending include equity stripping, asset-based lending, non-disclosure, and the notorious interest rate bait and switch.
These practices are a major cause of foreclosures, poor credit and unmanageable financial burdens. A Forensic Loan Audit by a trained professional can uncover these predatory violations and AdjustMyLoan.com conducts these audits on every qualified file!
WHY SHOULD I CHOOSE ADJUSTMYLOAN.COM OVER OTHER LOAN MODIFICATION COMPANIES?
AdjustMyLoan.com is a nationwide loss mitigation company based out of Phoenix, Arizona that specializes in loan modifications and forbearance agreements. We are a member of the Better Business Bureau and we have hundreds of happy clients and testimonials. In addition, we offer ongoing training for our professional staff and a tracking system so you can follow your Loan Modification progress. Our Loan Modification Blog is packed with loan modification news, do-it-yourself loan modification tips, and current loan modification programs. Lastly, we charge no upfront fee for our loan modification service and have a solid money back guarantee. If you are interested in a FREE LOAN MODIFICATION CONSULTATION, please visit our website www.AdjustMyLoan.com.
PROFESSIONAL LOAN MODIFICATION COMPANY ADJUSTMYLOAN.COM ADDS BILLBOARD ADVERTISING TO ITS MARKETING PORTFOLIO!
From Radio (KFNN tuesdays from 12-1pm), online video’s, AdjustMyLoan.com website’s, to LOAN MODIFICATION Billboards, AdjustMyLoan.com is truly a PROFESSIONAL LOAN MODIFICATION COMPANY that wants to earn your business. We spend thousands of dollars each month to spread the word that LOAN MODIFICATIONS can help you lower your monthly mortgage payment, AVOID FORECLOSURE, and keep you in your home! Our LOAN MODIFICATION EXPERTS can audit, package, propose, and negotiate a LOAN MODIFICATION on your behalf…AND WE DO NOT CHARGE YOU ANY EXPENSIVE UPFRONT RETAINER FEE’S!!!
BEWARE: THERE ARE MANY “FLY-BY-NIGHT” LOAN MODIFICATION FIRMS POPPING UP ALL OVER ARIZONA TRYING TO CHARGE YOU HUGE UPFRONT RETAINER FEE’S. THESE COMPANIES ARE NOTHING MORE THAN AMBULANCE CHASING ATTORNEY’S OR EX-LOAN OFFICERS THAT CANNOT HACK IT IN TODAYS REAL ESTATE MARKET! DO NOT GET STUCK PAYING THESE HUGE UPFRONT FEE’S WHEN YOU COULD CALL ADJUSTMYLOAN.COM AND GET BETTER SERVICE WITH NO UPFRONT FEES!
For a FREE LOAN MODIFICATION CONSUTLATION call 1-800-557-7573 (toll free) or 480-968-5626 (local).
Okay…we know this post is mainly for bragging rights, but how could we resist letting the world know that www.AdjustMyLoan.com is ranked #1 on Google for “Arizona Loan Modification Company”, “Phoenix Loan Modification”, “Arizona Loan Mods”, “Arizona Loan Modification Experts”, “Arizona Loan Modification”, and “Attorney Based Loan Modification Company”!
We are not some “Fly-By-Night” company that charges HUGE upfront fee’s and takes advantage of homeowners in distress. Instead, we are a Professional Loan Modification Company based in Phoenix, Arizona that CHARGES NO UPFRONT FEE’S for our ArizonaLoan Modification Service. We invite you to challenge us and see if our reputation stands up to your standards. We want to earn your business and our integrity / business ethics will make you feel comfortable from the first phone call you make to us.
SO WHERE DO WE GO FROM HERE?
Qualifying for one of our Loan Modification Programs is easy. Just call one of our customer relationship managers and get pre-qualified. The process takes a few minutes and is absolutely free. Once pre-qualified, we will help you gather the necessary documentation needed to build a professional Arizona Loan Modification Proposal. Then we will package and propose your Arizona Loan Modification and begin negotiating on your behalf. At the same time, our affiliated real estate Attorney will conduct Forensic Loan Audit on your original loan paperwork to uncover any Predatory Lending Violations that may have occurred. We will use any violations found as our negotiation “trump card” and get you the best loan terms possible.
FREE LOAN MODIFICATION CONSULTATIONS - WE WANT TO EARN YOUR BUSINESS!
WHAT IS A LOAN MODIFICATION AND WHY WOULD A BANK ACCEPT A LOAN MODIFICATION?
LOAN MODIFICATION DEFINED!
An ARIZONA LOAN MODIFICATION in its simplest form is the alteration of your current loan terms in order to lower your monthly payment and keep you out of foreclosure. Loan modifications typically involve a reduction in the interest rate on the loan, an extension of the length of the term of the loan, a reduction in the principal amount you owe, or any combination of the three. A lender might be open to modifying a loan because the cost of doing so is less than the cost of default, and/or the borrower owe more than the property is worth.
For borrowers who can prove their ability to consistently repay a modified loan, the bank will allow certain changes to their loan terms. Sometimes the changes can be temporary, such as an interest rate freeze for a period of a few years, or more permanent such as stretching out the length of the term from 20 to 30 or even 40 years. Anything is possible…from interest rate reductions, stretching out amortization, reducing the principal balance, to adding an interest only feature are all commonly asked for modifications.
At the end of the day, the whole goal behind an ARIZONA LOAN MODIFICATION is to negotiate an affordable and sustainable monthly payment that suits your income level. Banks do not want to revisit your file and typically will not give you another chance so make sure you create, and acquire the appropriate modification terms. Also, keep in mind that your banks loss mitigation department will take into account your entire monthly budget (income and expenses) so do not over estimate what you can afford for housing. If requested, your lender should send out an INCOME /EXPENSE form for you to fill out. Be honest about your total monthly expenses and income. Use the form to determine what you can afford for a new mortgage payment…and since it will be based on your specific situation and backed up by your bank statements / paycheck stubs, you will have the negotiating power to ask for that specific amount. (Compared to you just pulling a monthly payment from the air and proposing that to the bank)
WHY WOULD A BANK MODIFY A LOAN?
The general perception by many troubled homeowners in today’s market is that banks do not want to foreclosure on their home. This thought is not necessarily true. No bank wants to foreclose on a property in a declining market, but their decision to foreclose or LOAN MODIFY is based simply on the numbers. What we mean by this is that your lender(s) truly only care about one thing…which solution is going to net them the most money! As long as you are paying on time, your bank has a valuable income producing asset that gets sold and resold as a mortgage backed security on Wall Street. When you stop making your mortgage payments, your loan gets transferred to the loss mitigation department. From this point forward your bank is losing money. The following is a general scenario to help you understand the expenses a bank incurs once you stop making your payments.
Let’s say you owe $350,000 on your house and it is currently worth $305,000. You have an interest only loan that is set to adjust the beginning of next year. You can no longer afford your payments for whatever reason so you stop making them.
Balance Owed: $350,000
Today’s Market Value: $305,000
Interest Rate: 6%
Amortization: 30 years
Interest Only Payment: $1750 / month
Cause Of Loss To The Bank
Approx. Amount Of Loss ($)
Missed Interest Only Payments (8 Months = Avg. AZ Foreclosure Process)
$14,000
Total House Depreciation
$45,000
Attorneys Fees And Trustee Paperwork Costs
$1,500
Holding Costs Once They Become The Owner (4 Month Avg. Time To Sell)
$7,000
Selling And Closing Costs To Sell An REO (Real Estate Owned). Remember that most properties are selling at a 5% discount from market value plus the Realtor and closing costs involved with selling real estate…estimated 10%.
$30,500
Total Estimated Loss
$ 98,000
Now we know that this scenario is a general estimate of expenses, but we believe that this information should help you build the foundation of your loan modification proposal. BANKS DO NOT WANT TO BECOME HOMEOWNERS AND WANT TO MINIMIZE THEIR LOSS! As you can see, the bank stands to lose almost $100,000 on a $300,000 house…if your scenario for a LOAN MODIFICATION is better, and you can prove it through documentation, then you stand a great chance of a successful LOAN MODIFICATION.
WHY CHOOSE ADJUSTMYLOAN.COM TO CONDUCT MY LOAN MODIFICATION?
There are many so called “LOAN MODIFICATION” companies out there that are simply NOT QUALIFIED to help you re-negotiate your current loan terms with your lender(s). Most are simply loan officers and brokers that can no longer do loans due to the current credit crisis so they began marketing themselves as “LOAN MODIFICATION EXPERTS“. Anyone can package and propose a LOAN MODIFICATION to a bank , even you…but do you really think the bank is just going to give you the best deal right away? Absolutely not…what you need is the professional negotiating experience found in the AdjustMyLoan.com LOAN MODIFICATION TEAM.
Do not allow just any ARIZONA LOAN MODIFICATION COMPANY “look-a-like” to conduct your LOAN MODIFICATION. Imagine the difference a few interest percentage (%) points can make on your monthly payment! Imagine being able to wipe out that negative equity you have and obtain a PRINCIPAL BALANCE REDUCTION on the principal amount you owe! WWW.ADJUSTMYLOAN.COM is an ATTORNEY BASED LOAN MODIFICATION COMPANY where your LOAN MODIFICATION is audited, packaged, proposed, and negotiated by a staff of PROFESSIONALLOSS MITIGATION EXPERTS that specialize in LOAN MODIFICATIONS and utilize the findings of a FORENSIC LOAN AUDIT by a trained real estate Attorney to get the job done.
WHY IS IT IMPORTANT TO HAVE A FORENSIC LOAN AUDIT DONE?
A FORENSIC LOAN AUDIT is considered by many to be the “secret” to obtaining a loan modification with your lender(s). Sometimes called a FORENSIC LOAN DOCUMENT REVIEW or MORTGAGE AUDIT, the main purpose is to determine if there are violations of federal law! Almost 70% of loans conducted in the last 7 years, and almost 95% of all sub-prime loans have major RESPA (Real Estate Settlement & Procedures Act) and TILA(Truth In Lending) violations. The only way to find these violations is to conduct a FORENSIC LOAN AUDIT by a qualified person…in most instances a trained Attorney! If found, through an Attorney ran negotiation process, most lenders choose to renegotiate the terms of the loan to something more affordable to avoid litigation! The whole goal here is to uncover any predatory loan practices and push for a favorable LOAN MODIFICATION. If you are researching different companies to conduct your LOAN MOD, please take into consideration whether or not they are performing a detailed loan review by an Attorney! Don’t be fooled by loan/mortgage companies that jumped into the LOSS MITIGATION BUSINESS yesterday…hire a company that has real experience negotiating LOAN MODIFICATIONS and can fight for you.
ADJUSTMYLOAN.COM is a NATIONAL LOSS MITIGATION COMPANY that specializes in ATTORNEY BASED LOAN MODIFICATIONS. Our team of LOAN MODIFICATION SPECIALISTS is comprised of Attorneys, processors, professional negotiators, short sale and foreclosure experts, loan officers, Realtors, and financial advisors. Our state of the art facilities are located in downtown Phoenix, Arizona. We believe that our experience and relationships with most major lenders, as well as the fact that we conduct FORENSIC LOAN AUDITS on every file by a qualified Attorney gives us a strategic advantage over our competition! We are members of the BBB, have many referrals and testimonials to prove our business ethics, and a proven track record that produces real results! Plus, our pricing is so competitive we wouldn’t understand why you would want to go anywhere else!
Disclaimer: We are not giving you legal advice…please contact a qualified real estate attorney for specific legal questions you may have about your situation.
WOW, First off, we want to say it is amazing at the number of “Fly by Night” Loan Modification Companies we are seeing popping up everywhere! It is sad that homeowners are going to be bombarded with “Foreclosure Consulting” companies who promise to “Modify” their note for an upfront fee. BEWARE OF ANY LOAN MODIFICATION COMPANY TRYING TO CHARGE YOU A LARGE UPFRONT FEE FOR THEIR SERVICES! AdjustMyLoan.com offers FREE LOAN MODIFICATION CONSULTATIONS AND DOES NOT CHARGE ANY UPFRONT FEE’S.
So, how can you tell the reputable Loan Modification Companies from the bad Loan Modification Companies? Research! Any reputable Loan Mod Company should give you easy access to learn about their company, employees, and background. Many of these “Knock-Off” Loan Mod Agencies are nothing more than loan officers and brokers that couldn’t hack it in the loan industry any more and are jumping over to the loan modification industry so they can make a quick buck. These are the same people that put you in the loan that got you in trouble…why would anyone want to go back to these same people for help???
At AdjustMyLoan.com, we believe in transparency. Any potential client of ours gets a “Worry-Free Guarantee” when dealing with us. First, we have an amazing staff of highly educated and skilled employees that consist of a Paralegal that manages our Loan Mod Negotiation department, highly trained Loan Modification Negotiators, Loan Modification Processors, customer relationship agents, a compliance officers who double checks all of our paperwork, and a trained real estate Attorney who conducts Forensic Loan Audits to uncover any Predatory Lending Violations that may have occured durring loan origination! Second, WE CHARGE NO UPFRONT FEES, offer a Money-Back Guarantee, and only get paid if we complete a Loan Modification on your behalf. Third, we have an on-line database system that allows you to log in and see the status / notes on your loan modification file. Fourth, we are brick and mortar…located in downtown Phoenix, Arizona in a building we own (were not going anywhere). Fifth, we are members of the Better Business Bureau, D&B, and Privacy Guard so you can verify our business ethics. Lastly, we have many testimonials and referrals for you to verify our ability to get the job done.
Oh, and we also put everything we say we are going to do in writing, have a 3 day rescission period just in case you change your mind (you get all your money and paperwork back), and offer free advice how to handle your own loan modification on our website.
OUR FREE LOAN MODIFICATION CONSULTATION TAKES ABOUT 15 MINUTES AND COULD CHANGE YOUR LIFE! Imagine lowering your monthly mortgage payments and freeing up cash flow to pay off your other bills. Once you get pre-qualified with us, we will help you complete a full application, gather the necessary documentation your lender(s) will require, then we take over from there. We do all the work, and you enjoy all the benefits!
LOAN MODIFICATION PROGRAMS, SERVICE, AND ADVICE- That is what AdjustMyLoan.com offers our clients! If you are interested in learning more, please visit our Loan Modification Website or call us today!
We believe that our experience and relationships with most major lenders, as well as the fact that we conduct Forensic Loan Audits on every qualified file by a trained real estate Attorney gives us a strategic advantage over our competition! Call us today and take advantage of our FREE LOAN MODIFICATION CONSULTATION!
Loan Modification Company AdjustMyLoan.com Investigates The 10 Ways To Stop Foreclosure!
In this post we are going to take a look at the different ways to Stop Foreclosure. We explain these options in order to give you a better understanding of your situation and show you how a Loan Modification by a qualified Loan Modification Company like AdjustMyLoan.com can help you Stop Foreclosure and stay in your home. Pay special attention to the first five options because these are your choices if you are trying to save your house. Understanding available solutions will help you formulate your plan giving you the best chance for a successful outcome. Remember, we are not giving you legal or tax advice and recommend you contact a professional to verify our information.
1. FORBEARANCE
“Forbearance” is an agreement with your bank/lender to Stop the Foreclosurein exchange for paying the overdue amount (called “arrearages”). The arrearagesare paid in either one lump sum, or a schedule of payments over a period of time (typically 6‐12 months). In some cases, your lender may even allow you to pay reduced monthly payments until you get back on your feet. More than likely, they will INCREASE your monthly payments to cover your owed arrears. Of course, your lender will only agree to forbearance if you can afford to resume your monthly payments. For example, if you got behind on your monthly payments because you lost your job, but were recently rehired, your lender might consider forbearance. Unfortunately, most homeowners Facing Foreclosure cannot come up with the money to make up back payments, nor can they afford higher monthly payments.
Bottom Line: To take advantage of this solution, you must be able to:
1. Pay the arrearages in a lump sum and be able to resume your monthly payments, or
2. Afford higher monthly payments (i.e. your original monthly mortgage payment plus a portion of the arrearages) until the arrears are paid off.
2. LOAN MODIFICATION
“Loan Modification” means changing the terms of your mortgage. (Also called “recasting” the mortgage.) For example, lowering the interest rate, increasing the loan amount, extending the amount of time you have to repay the loan, and/or other changes that your lender agrees to. A lender will typically consider a Loan Modification if you will be able to make your new mortgage payments after the change. For example, if you lost your job and got a lower paying job, your lender may lower your monthly payments, but increase the number of years you must pay your mortgage. There are temporary and permanent loan modifications and each lender will try and put you in a loan modification program that is in their best interest! Hiring a company like www.AdjustMyLoan.com will give you the professional representation you deserve so you receive the BEST LOAN MODIFICATION TERMS possible!
Bottom Line: To take advantage of this solution, you must be able to show your lender that you can afford the new monthly payments once the loan is modified.
ADJUSTMYLOAN.COM is a NATIONAL LOSS MITIGATION COMPANY based out of Phoenix, Arizona that specializes in LOAN MODIFICATIONS and forebearance agreements. Our professional staff is ready to help audit, package, propose, and negotiate a loan modification on your behalf. We offer FREE LOAN MODIFICATION CONSULTATIONS and DO NOT CHARGE ANY UPFRONT FEES for our LOAN MODIFICATION SERVICE. Call 1-800-557-7573 today and get the professional help you deserve.
3. FHA “Partial Claim” LOAN
If you have an FHA‐insured (Federal Housing Administration) loan, you may qualify for a one‐time “partial claim” loan. To qualify, our mortgage must be delinquent 4‐12 months and you must be able to resume full mortgage payments. When your lender files a “partial claim”, FHA/HUD (Housing and Urban Development) pays your mortgage current. However, in exchange for the “partial claim” loan, FHA/HUD puts a lien on your home and gives you an interest‐free loan that is due when your mortgage is pain in full (for example, after a refinance or when you sell your house). In other words, you have to eventually pay FHA/HUD back for the amount of money they paid your lender, but you don’t have to pay them back until you pay off your mortgage or sell your house. Visit www.hud.for more information.gov
Bottom Line: To take advantage of this solution, you must:
1. Have an FHA‐insured mortgage.
2. Not already have a “partial claim” loan from FHA/HUD.
3. Be delinquent at least 4 months, and no more than 12 months.
4. Show that you can afford to make the monthly payments in the future.
5. Remember that, sooner or later, you will have to pay back the amount of the “partial claim” loan.
4. REFINANCING YOUR MORTGAGE
“Refinancing” is when a lender (either your current lender or a new lender) gives you a new mortgage to replace your current mortgage. Of course, the new mortgage will likely be more than your current mortgage because the points, late payments, and other fees will be added to it. Unfortunately, most homeowners Facing Foreclosure cannot refinance because they do not have good credit or enough equity in their house. “Equity” is the difference between what your house is worth and the amount of the loans against it. For example, if your house is worth $300,000 and you owe $250,000 on a 1st mortgage and $15,000 on a 2nd mortgage, you have $35,000 in equity because $300,000 house value, less $250,000 representing the mortgage less $15,000 second mortgage = $35,000 equity.
Bottom Line: To take advantage of this solution, you must:
1. Have good credit and /or enough income to qualify for a new loan, and/or
2. Have a substantial amount of equity in your home; sufficient to meet the lender’s guidelines.
5. ANOTHER LOAN (i.e. 2nd mortgage, 3rd mortgage, etc.)
This is a new mortgage in addition to the mortgage(s) you already have on your house. The money from this loan is used to bring your mortgage current and stop the foreclosure. Unfortunately, the new loan will have a high interest rate (similar to most credit cards) and cost 5‐10 points. A “point” is 1% of the borrowed amount. For example, if you borrow $10,000, 10 points =$1,000. Also, since it’s another loan, keep in mind that you’ll have higher monthly payments. Beware of this trap, because if you cannot afford your current monthly payment(s), how will you afford higher monthly payments?
Bottom Line: To take advantage of this solution, you must:
1. Have a lot of equity in your house, and
2. Be able to afford the additional payment each month.
6. DEED‐IN‐LIEU OF FORECLOSURE (DIF)
A “Deed In Lieu Of Foreclosure” is when you voluntarily give your house back to your lender and move out. In exchange, the lender Stops the Foreclosure and agrees not to sue you for more money if the house is sold for less than the amount you owed. Since a DIF does not wipe out junior liens (i.e. 2nd mortgage or other liens), banks will usually not accept a DIF because they do not want to inherit the junior liens against the house. Also, you will not receive any money for your house when you use a DIF.
Bottom Line: In general, to take advantage of this solution, you must only have one mortgage. If you have a 2nd mortgage, 3rd mortgage, etc, most banks will not accept a DIF.
7. SELL YOUR HOUSE TO A REGULAR HOME BUYER
Unless your financial situation has improved, selling your house is one of the best -and in most cases, the only- way to stop the foreclosure. Although you probably want to stay in your house, the truth is that selling your house and moving is a lot less painful than Losing Your House To Foreclosure and having to move anyway. At least if you sell your home, it will be on your terms - not the lender’s -and your have a better chance of getting some cash out of your house. Plus, you’ll Stop the Foreclosure and save your credit. If you decide to sell your house to a regular home buyer, you can either try to sell it yourself or use a real estate agent. If you sell your house yourself, you’ll save money on real estate agent commissions. However, it will probably take longer to sell…time you don’t have. You will also have to spend time and money advertising andshowing the house to potential buyer. You will also have to understand how to write up a contract and where to go to complete the transaction (title agency). If you sell your house through a real estate agent, you’ll probably sell your house a lot quicker and probably at a higher price. But you’ll have to pay a commission to the agent (typically 6% which, on a $300,000 home is $18,000).
Bottom line: To take advantage of this solution, you must:
1. Have enough time (typically 3 ‐ 6 months, or more considering current market conditions) to find a qualified buyer and close escrow before the foreclosure auction.
2. Have enough equity to pay the real estate agent’s commissions (if you use an agent), and
3. Have enough time and money to perform all necessary repairs or you can sell the property as is for a lesser price.
8. SELL YOUR HOUSE TO AN INVESTOR
If you don’t have enough time to sell your house to a regular home buyer, don’t have enough equity to pay a real estate agent’s commissions, and/or don’t have the time or money to perform repairs, then selling to an investor is probably your best bet. An investor won’t pay full price for your house, but he/she can close quickly, pay you all cash, and buy your house in “as‐is” condition. This allows you to stop the foreclosure, save your credit, and get cash to move and/or pay other expenses and bills.
Warning: There are a lot of beginning investors out there who are not as experienced in this sort of situation. They may have good intentions but often will create a bigger disaster for your situation when time is of the essence is handling your matter. What you need now is an experienced team of professionals so if you choose this option, please call 602‐626‐3598.
Warning #2: Whatever you do, don’t let anyone talk you into paying for help without first verifying the person’s company and expertise! It is not likely that a paid, so‐called professional will be able to help you with your situation. Get all of the facts and check the Better Business Bureau before you do anything.
Bottom Line: To sell your property to an investor you must sell our house at a discount because the investor will have costs to fix your home to resell it. Just be sure to find a reputable company or investor that you know you can trust!
9. A SHORT SALE
A “Short Sale” is an agreement with your lender to accept less money than they’re owed as full payment for your loan. This solution often makes sense when you owe more than the property is worth. For example, if you owe $500,000 but your property is only worth $420,000, a short sale may be your only option. Rather than trying to negotiate a short sale yourself, call a professional who is experienced in negotiating with lenders. A short sale requires selling your property to an end buyer who will live there, or an investor who will Negotiate With Your Lender on your behalf. There are no guarantees that the lender will accept the short sale. Keep in mind that your bank does not want your house back! It is considered a non‐performing asset and they cannot have too many on their books! They want to work something out with you. As part of the short sale agreement, the lender prohibits you from receiving any proceeds from the sale. In other words, the investor cannot give you any money for your house.
Bottom Line: To take advantage of this solution, you should talk to an experienced Short Sale Negotiator. AdjustMyLoan.com has such professionals on its staff that can help you, however we only do Arizona Short Sales! Ask us for more information about your lender’s recourse on short sales. We have an informational report we can give you when we meet called How Property Owners in Foreclosure / Short Sale can avoid paying Taxes on 1099.
10. BANKRUPTCY
It is very important you understand how bankruptcy works and we suggest you meet with a bankruptcy attorney before considering this option. Many people use bankruptcy as a scare tactic. There are several different “chapters” of bankruptcy. Some are work‐out others are wipe‐out, but here is the general idea. When someone files bankruptcy it’s almost like someone builds a “bullet‐proof” barrier around the house. No one can touch you! However, you are not free of all responsibility and most people do not understand that. We are not bankruptcy attorneys, but you need to know the difference between a Chapter 7 and a Chapter 13 bankruptcy so you know what happens. Like we mentioned earlier, some bankruptcies are “work out” others are “wipe out“. The two that we will focus on are the Chapter 7 and Chapter 13. These are the most common in your situation. Chapter 7 is the “wipe out” and Chapter 13 is the “work out”. Bankruptcy is a federal court action designed to help individuals repays their debts or eliminate their debts depending on their circumstances. Chapter 13 bankruptcies are designed to reorganize debts in an effort to repay all debt. Chapter 7 bankruptcies are geared more towards liquidation of assets. Both Chapter 7 and Chapter 13 immediately stop the foreclosure process and any creditors from taking further action against you.
Here is how Chapter 7 works. When someone files a Chapter 7 bankruptcy, all assets and creditor collections are technically frozen which is called an automatic stay. The person filing bankruptcy cannot buy or sell anything, nor can they give away their property. If they try to sell their home, the court could order the receiving party to return it to the custody of the court appointed Trustee. Unsecured debts such as credit cards, unsecured loans, etc. are typically eliminated, although you should confer with your attorney on the rules regarding this. Then the trustee or attorney who represents the court and the creditors will look at all the assets (house, car, furniture, and equipment) a thing of value and decide what must be liquidated to pay some of the debt that was wiped out. The statute provides that there are some minimal assets a person filing bankruptcy may keep. If the homeowners are involved in a pending foreclosure, a Chapter 7 will Stop The Foreclosure Process temporarily. Usually, your lender will request the court appointed Trustee to release the property from the automatic stay so they may continue with the foreclosure process. Once the property has been released from the bankruptcy, the foreclosure process starts up again.
Chapter 13 is a little different. When someone files a Chapter 13, they usually keep their assets and repay their debts in a debt consolidation plan. Whatever amount is agreed upon has to be paid to the Bankruptcy Court every month for the next 3‐5 years. The homeowner usually keeps their house, car, and other assets. The homeowner is required to stay current with the mortgage payments and pays the amount agreed upon. If any payments are missed, the trustee will dismiss the bankruptcy and the foreclosure process will begin again. Bankruptcy is usually a last resort and should not be used to stop foreclosure unless you have no other option or else you need the protection of a bankruptcy due to other circumstances. If you feel this may be your best option, please seek legal advice.
Bottom Line: To take advantage of this solution you should consult an experienced bankruptcy attorney. We are not in the business of giving legal advice and in no way are we bankruptcy experts. This information is deemed reliable but no guarantees or warranties are expressed or implied!
WE CURRENTLY ARE CONDUCTING LOAN MODIFICATIONS IN THE FOLLOWING STATES:
ARIZONA LOAN MODIFICATION, ARIZONA LOAN MODIFICATIONS, LOAN MODIFICATION ARIZONA, CALIFORNIA LOAN MODIFICATION, CALIFORNIA LOAN MODIFICATIONS, FLORIDA LOAN MODIFICATION, FLORIDA LOAN MODIFICATIONS, NEVADA LOAN MODIFICATION, NEVADA LOAN MODIFICATIONS, NEW MEXICO LOAN MODIFICATION, NEW MEXICO LOAN MODIFICATIONS, OREGON LOAN MODIFICATION, OREGON LOAN MODIFICATIONS, WASHINGTON LOAN MODIFICATIONS, WASHINGTON LOAN MODIFICATIONS, NEW YORK LOAN MODIFICATIONS, NEW YORK LOAN MODIFICATIONS, MASSACHUSETTS LOAN MODIFICATION, MASSACHUSETTS LOAN MODIFICATIONS, MICHIGAN LOAN MODIFICATION, MICHIGAN LOAN MODIFICATIONS, OHIO LOAN MODIFICATION, OHIO LOAN MODIFICATIONS, GEORGIA LOAN MODIFICATION, GEORGIA LOAN MODIFICATIONS, MARYLAND LOAN MODIFICATION, MARYLAND LOAN MODIFICATIONS, COLORADO LOAN MODIFICATION, COLORADO LOAN MODIFICATIONS
If you are a homeowner facing foreclosure an searching for a solution to save your home, there are options available to you. A loan modification is a way to renegotiate your current loan terms, adjusting your interest rate, principal amount owed, or length of loan in order to lower your monthly payments. A lender is willing to do a LOAN MODIFICATION because it is a cheaper alternative than foreclosure.
As great of a solution a loan modification is, there are many “fly by night foreclosure rescue” companies out there looking to take advantage of your situation! BEWARE OF THE FOLLOWING LOAN MODIFICATION SCAM.
LARGE UPFRONT FEE SCAM:
These scams typically start by either a phone call, or an “official” looking document that uses scare tactics to get the homeowner all worked up about losing their home. Then, they offer a loan modification stating that it takes anywhere from 2-10 weeks to complete. They then charge a large upfront fee (typically $3000 - $7000) and promise to have a 98% success rate. They state that they have been helping homeowners for years and only they can help you. They offer a 100% money back guarantee if your not satisfied. This sounds good so you decide that you will do anything to save your home and pay. Once your money is collected upfront, in many instances you loan never gets modified. After some time the homeowner gets curious as to why they have not heard from the company or individual with an update. They start investigating and realize that the company does not have a physical address, nor will return their phone calls or money. The company or individual uses excuses such as “the homeowner never provided all the documentation needed” to get away with not doing any work. At the end of the day, the homeowner looses their home to foreclosure because it is typically too late by the time the realize they were scammed!
WHAT YOU NEED TO DO TO PROTECT YOURSELF:
MAKE SURE THE PERSON YOU ARE DEALING WITH HAS A PHYSICAL BUSINESS ADDRESS AND BUSINESS PHONE NUMBER.
MAKE SURE THE COMPANY YOU ARE DEALING WITH IS A MEMBER OF THE BBB
DO NOT PAY A LARGE UPFRONT FEE…A SMALL FEE IS OKAY BUT YOU SHOULD NOT HAVE TO PAY UNLESS THE LOAN MODIFICATION IS SUCCESSFULL.
MAKE SURE THE COMPANY YOU ARE USING HAS AN ONLINE TRACKING SYSTEM SO YOU CAN SEE THE PROGRESS OF YOUR LOAN MODIFICATION AT ALL TIMES
MAKE SURE YOU MEET THE COMPANY AT THEIR OFFICE AND SEE THAT THEY ARE CONDUCTING BUSINESS (GET TO KNOW THE COMPANY)
GET REFERRALS AND TESTIMONIALS TO VERIFY COMPANIES HISTORY
GET COPIES OF ALL PAPERWORK THAT OUTLINES THE BUSINESS RELATIONSHIP
Our “Worry Free Guarantee” provides you peace of mind when you need it most. WE ARE NOT A FORECLOSURE BAILOUT COMPANY! We are an PROFESSIONAL LOAN MODIFICATION COMPANY that specializes in loan modifications and short sales. Our expert loan modification negotiators will pre-qualify, package, propose, and negotiate a LOAN MODIFICATION on your behalf! We pride ourselves on being members of the BBB and in good standing. That we put all of our promises and guarantees in writing and have a 3 day rescission period in case you change your mind. That we have many referrals and testimonials. That we are located in downtown Phoenix, Arizona in a state of the art building that we own! THAT WE CHARGE NO UPFRONT FEE’S FOR OUR LOAN MODIFICATION SERVICE! Lastly, that we have an online tracking system that updates you on your loan modifications progress. We have spent hundreds of thousands of dollars building our company and advertising so we can help as many homeowners avoid foreclosure and stay in their homes. Our commitment to getting the job done and conducting business with honor and integrity is displayed to you from the second that you call! LOAN MODIFICATION INFORMATION
NATIONAL FORECLOSURE TIMETABLE AND HOW IT AFFECTS A LOAN MODIFICATION.
Each states foreclosure timetable is different and there is no strict industry standard. Your lender(s) can, at their own discretion, file for foreclosure at any time once you start missing your mortgage payments. You can in theory conduct a loan modification when you are current on your mortgage payments. It is difficult to do because your lender has little reason to take a loss on income when you are able to make your monthly payments. Most homeowners get the best loan modifications once they miss a payment or two but if you wait too long, and a foreclosure auction date is set, it becomes much more difficult to complete a loan modification with your lender(s). If you have already received a Notice of Default, immediately hire an Attorney Based Loan Modification Company such as www.AdjustMyLoan.com to conduct a Forensic Loan Audit and professionally negotiate your loan modification.
Below is a chart from Realtytrac.com displaying the approximate time it takes after NOD is filed for the home to go to the foreclosure auction. Remember that the Notice of Default (NOD) is generally filed 90-120 days after the account becomes delinquent. (These numbers are an estimate and are subject to change without notice. Information deemed reliable but does not claim 100% accuracy).
State
Judicial
Non‐ Judicial
Process Period (Days)
Sale Publication (Days)
Redemption Period (Days)
Sale/NTS
Alabama
•
•
49‐74
21
365
Trustee
Alaska
•
•
105
65
365*
Trustee
Arizona
•
•
90+
41
30‐180*
Trustee
Arkansas
•
•
70
30
365*
Trustee
California
•
•
117
21
365*
Trustee
Colorado
•
•
145
60
None
Trustee
Connecticut
•
•
62
NA
Court Decides
Court
Delaware
•
•
170‐210
60‐90
None
Sheriff
District of Columbia
•
•
47
18
None
Trustee
Florida
•
•
135
NA
None
Court
Georgia
•
•
37
32
None
Trustee
Hawaii
•
•
220
60
None
Trustee
Idaho
•
•
150
45
365
Trustee
Illinois
•
•
300
NA
90
Court
Indiana
•
•
261
120
None
Sheriff
Iowa
•
•
160
30
20
Sheriff
Kansas
•
•
130
21
365
Sheriff
Kentucky
•
•
147
NA
365
Court
Louisiana
•
•
180
NA
None
Sheriff
Maine
•
•
240
30
90
Court
Maryland
•
•
46
30
Court Decides
Court
Massachusetts
•
•
75
41
None
Court
Michigan
•
•
60
30
30‐365
Sheriff
Minnesota
•
•
90‐100
7
1825
Sheriff
Mississippi
•
•
90
30
None
Trustee
Missouri
•
•
60
10
365
Trustee
Montana
•
•
150
50
None
Trustee
Nebraska
•
•
142
NA
None
Sheriff
Nevada
•
•
116
80
None
Trustee
New Hampshire
•
•
59
24
None
Trustee
New Jersey
•
•
270
NA
10
Sheriff
New Mexico
•
•
180
NA
30‐270
Court
New York
•
•
445
NA
None
Court
North Carolina
•
•
110
25
None
Sheriff
North Dakota
•
•
150
NA
180‐365
Sheriff
Ohio
•
•
217
NA
None
Sheriff
Oklahoma
•
•
186
NA
None
Sheriff
Oregon
•
•
150
30
180
Trustee
Pennsylvania
•
•
270
NA
None
Sheriff
Rhode Island
•
•
62
21
None
Trustee
South Carolina
•
•
150
NA
None
Court
South Dakota
•
•
150
23
30‐365
Sheriff
Tennessee
•
•
40‐45
20‐25
730
Trustee
Texas
•
•
27
NA
None
Trustee
Utah
•
•
142
NA
Court Decides
Trustee
Vermont
•
•
95
NA
180‐365
Court
Virginia
•
•
45
14‐28
None
Trustee
Washington
•
•
135
90
None
Trustee
West Virginia
•
•
60‐90
30‐60
None
Trustee
Wisconsin
•
•
290
NA
365
Sheriff
Wyoming
•
•
60
25
90‐365
Sheriff
ARIZONA’S FORECLOSURE TIMELINE
Since we are from Arizona and specialize in Arizona Loan Modifications, we will highlight Arizona’s foreclosure timeline in a little more detail. Arizona’s foreclosure timetable is typically 6‐8 months in length. In most cases, the delinquency period lasts 90‐120 days and a Notice Of Default (NOD) is filed. This paperwork instructs your trustee to begin the foreclosure process. From the date that this paperwork is filed until the day you lose your home at auction is exactly 91 days. After your foreclosure auction, there is no redemption period like there is in some states. A sheriff, or the new homeowner that purchased your home at the auction will evict you from the home and it is legally theirs! The chart below gives you a good visual of how Arizona’s foreclosure process works:
You Lender(s) Rationale During The Foreclosure Process
First A Quick Disclaimer…no one is instructing a homeowner to miss their mortgage payments. In fact, if you are able to make your mortgage payments, then you should not be reading this eBook. Each borrower signed a notarized document promising to repay their loan within the agreed upon terms and should honor such a commitment if they can. A loan modification is designed to help homeowners who cannot afford their mortgage payment. Also, each bank is different. This section is designed to give you a general understanding of the rational from the banks point of view. With each passing day, rules, standards, and guidelines are changing.
Homeowner Is Less Than 30 Days Late:
While in theory it can be done, in most cases a bank will offer a loan modification during this period due to the fact that if you can pay your mortgage, why should they take a loss. The exception of this is if there was some predatory lending violation in their loan documents. Having an attorney conduct a Forensic Loan Document Review can uncover any RESPA and/or TILA and/or HOEPA violations and then threaten your lender with a lawsuit. This will typically expedite the loan modification process and get things done even when you are not behind on payments. Obviously this can get real expensive real quick!
Homeowner Is 30-90 Days Late:
We call this the panic period. As you begin to miss your payments, the bank slowly switches from customer service mode to debt collector mode. Depending on your lender, this period can be frustrating and confusing. Whenever a mortgage goes into default, it gets transferred to a department called loss mitigation. This department’s sole responsibility is to collect a debt, or at least minimize that particular lenders loss. Remember, they are not there to be your friend or your coach. They are working solely for themselves so keep this in mind when they are telling you what options are available. They will try and lead you in a direction that they want you to go. Also, at first you will not be dealing with the real decision maker so keep this in mind when you are pleading your case. More than likely you will have to submit some initial paperwork (your loan modification proposal) and have it reviewed before anyone offers you any solutions. Don’t be concerned if your bank sends you letters threatening foreclosure. USE THE THREAT OF FORECLOSURE TO YOUR ADVANTAGE WHEN NEGOTIATING. What we mean by this is if the bank feels like you have given up and are not emotionally tied to the house anymore, they will be less likely to use scare tactics to bully you around. Lastly, don’t be surprised when your lender(s) tell you one thing on the phone and then send you a letter threatening you further. This is common and you should not worry yet. In Arizona, the foreclosure process generally takes 6-7 months so you still have plenty of time…check your states foreclosure timeline to see where in the process you currently are! If you decide to hire a loan modification negotiation company, they will supply your bank with a letter of authorization giving them permission to negotiate on your behalf…this will generally stop the harassing phone calls from bothering you!
The 30-90 days late phase marks the beginning of the negotiation period and you could complete your LOAN MODIFICATION within this timeframe if you are well prepared and a good negotiator. Typically your bank will start you off offering some sort of forbearance agreement. A forbearance agreement is a short term (typically 2-4 months) suspension of your mortgage payments to help you get caught up on other bills. The principal and interest that accrue (called your arrears) will generally be added to the back side of your loan or spread out over the next 12 month period (raising your monthly payment). Sometimes a temporary interest rate drop is offered (for 1-5 years). This is considered a “temporary loan modification” and may sound like a good plan at first, but realize that this is a temporary fix that you will have to deal with again in the future. Once your forbearance period is over, the bank will expect to get paid all of those missed payments, plus interest, plus fees! Make sure that if you take this solution you get the temporary interest rate reduction along with it.
NOTE: A well developed proposal with proven income and a reasonable modification can be approved in this time period, but do not be surprised if the bank does not pay much attention to you yet. The point of a loan modification is to avoid foreclosure and since you are just entering into the negotiations, there is little sense of urgency from the banks point of view.
Homeowner Is 91-150 Days Late:
This is the period to get things done. Since you are doing this yourself, your chance for a successful loan modification is greatest during this timeframe. Somewhere during this phase a NOD will be filed and your lender(s) will become more desperate to come up with a solution. By now you should have your proposal completed and submitted to your lender(s) and your negotiating hat on. Your main focus should be a permanent interest rate adjustment, lengthening of your loan terms, a principal balance reduction to readjust your loan back down to current market values, or some combination of the three. This may not be possible for every homeowner, but should be attempted. Do not wait too long to agree on a loan modification…your bank may request a “good faith” payment and more paperwork which you want to avoid. If they request a few payments just to confirm you ability to pay, make sure they put it in writing that if you make the payments, the modification will be accepted and complete.
NOTE: Don’t panic if you loan modification is taking longer than expected. Many lenders will postpone filling the NOD if you are in the middle of a loan modification negotiation. The key is to start the process immediately after missing your first payment and continually pressuring your lender(s) for an acceptable resolution.
Homeowners Is 150+ Days Late:
Your ability to negotiate a loan modification is not over until the home has been sold at auction however if you are in this period, you should be contacting an Professional Loan Modification company like www.AdjustMyLoan.com. If you have not done so yet, you have very little time to submit your loan modification proposal to the bank. At this point, your ability to prove stable income at a level that is acceptable to the bank is your only hope for a loan modification acceptance. At this point, you should be considering a real estate short sale as a backup plan. A real estate short sale is the process where you can sell your house for less than what you currently owe. If you are located in the state of Arizona, and you want to learn more about a real estate short sale, go to www.ForeclosureCounseling.com/arizonashortsale.html.
NOTE: Loan modification guidelines change weekly and if you were denied a loan modification in the past, it might not be a bad idea to re-attempt it again, especially if your expenses or income has changed. Also, keep in mind that the bank will try to modify your loan to fit your exact monthly budget. Remember to include all of your hard and soft expenses and do not leave anything out. Many homeowners try and show the bank that they cut costs (which are a good idea when writing your hardship letter but not good for your INCOME / EXPENSE worksheet). Get rid of luxury items such as ATV’s and boats, but it is okay to have high soft expenses such as gas and food each month. Our end goal is to get your final mortgage payment affordable to you and this is achieved by being generous with expenses.
STOP…DON’T TRY AND DO A LOAN MODIFICATION ON YOUR OWN!
ALTHOUGH YOU COULD DO A LOAN MODIFICATION ON YOUR OWN, WE ALL KNOW THAT YOU BANK IS NOT GOING TO JUST OFFER YOU A LOAN MODIFICATION THAT IS IN YOUR BEST INTEREST! AT WWW.ADJUSTMYLOAN.COM, WE SPECIALIZE IN LOAN MODIFICATIONS WHERE OUR PROFESSIONAL LOAN MODIFICATION NEGOTIATORS PACKAGE, PROPOSE, AND NEGOTIATE A LOAN MODIFICATION ON YOUR BEHALF. WE UTILIZE A TRAINED REAL ESTATE ATTORNEY TO AUDIT YOUR ORIGINAL LOAN DOCUMENTATION (FORENSIC LOAN AUDIT) TO UNCOVER ANY PREDATATORY LENDING VIOLATIONS THAT MAY HAVE OCCURED DURRING LOAN ORIGINATION. IF ANY VIOLATIONS ARE FOUND, WE WILL HAVE MORE NEGOTIATING POWER TO GET YOU THE BEST LOAN TERMS POSSIBLE. DON’T LEAVE ANY TERMS ON THE TABLE. IF YOU WANT A PRINCIPAL BALANCE REDUCTION, OR A MASSIVE DROP IN YOUR MONTHLY PAYMENTS, HIRE ADJUSTMYLOAN.COM FOR YOUR FORENSIC LOAN AUDIT AND LOAN MODIFICATION NEGOTIATION NEEDS!
