By Crispin Lozano
The Mortgage Bankers Association (MBA) reported that foreclosures will hit a high mark this fall. The actual data reported as of June 30, 2009 showed a record 9.24% of all mortgages are delinquent. This represents about 4 million homeowners who are 30 days behind on their mortgages. In addition, there are 4.3% of all mortgages that are already in the process of foreclosure. This means that there are a combined 13.16% of all mortgages that are delinquent and are in the process of foreclosure as of June 30, 2009.
The reasons for the increase in delinquencies are (1) more option Adjustable Rate Mortgages (ARM) are resetting to higher rates triggering defaults and (2) more prime fixed-rate loans are defaulting due to job losses. In California, Notices of Default (the start of foreclosure process) were sent to 108,000 households in July 2009 alone.
Question: What should homeowner do to avoid situation when a Notice of Default is forthcoming?
Answer: Homeowners should consult with a loan modification attorney to protect their rights and save their home. The banks are very slow in responding to loan modification request. Bank of America and Wells Fargo bank (which accounted for majority of all mortgages) reported to have modified loans of a mere 5% and 6% respectively of the delinquent borrowers. The main reason is that the staffs in the Loss Mitigation Department of the bank are so busy that they have insufficient time to analyze the individual borrower’s case. There is huge number of applicants but the banks staffs are insufficient to serve them effectively. Many of my clients tried to do the loan modification themselves but they are unsuccessful. After they signed up for our services we immediately contacted the banks and they ultimately agreed to offer modification terms to our clients.
Question: What types of loan can be modified under the Obama program?
Answer: The Obama Loan Modification Program will modify loans that are secured through Fannie Mae and Freddie Mac. FHA loans have their own program of loan modification.
Question: What should borrowers with FHA guaranteed loan do to request modification?
Answer: Borrowers with FHA guaranteed loans should contact their lender and request loan modification. They may also contact a reputable attorney who do loan modification to negotiate with the lender.
Question: Can a homeowner apply for loan modification while in bankruptcy proceedings?
Answer: Yes. However, it is better to apply for loan modification before filing bankruptcy because you have a better chance of getting better terms in modifying your loan.
Question: May a borrower request loan modification while in foreclosure?
Answer: Yes. A foreclosure process starts when you received a Notice of Default (NOD) registered with the county recorder’s office. It ends when the property is sold in a public auction at a Trustee Sale. Upon receipt of the NOD you should immediately contact an attorney to do a loan modification. It is important to do this immediately because the Loss Mitigation Department of the bank is very busy and it will take sometime before they finally look at your case. In the NOD you are given 90 days to come up with the payment for all missed payments. If you cannot come up with the payments within 90 days, the lender will send you a Notice of Trustee Sale and will publish the property for sale at a public auction within the succeeding 20 days. After the 20 days of publication and no loan modification is agreed upon, the property will be sold to the highest bidder in a public auction.
Note: This is not a legal advice. You need to talk to an attorney about your specific case. Our office offer FREE initial consultation on Loan Modification only.
Crispin Caday Lozano is an active member of the State Bar of California since 1999. He graduated Juris Doctor (Law Degree) from Western State University School of Law in Fullerton, California. He is a licensed Real Estate Broker #01297744 since October 2001. He is also a Certified Public Accountant and a Bachelor of Business Administration Cum Laude graduate. His offices are located at 17057 Bellflower Blvd. Suite 205, Bellflower, CA 90706 and 1290 B Street, Suite 205, Hayward, California 94541 and at 777 N. First St., Suite 333, San Jose, CA 95112. You can contact him at telephone (562) 461-1355 and (510) 538-7188.
The Mortgage Bankers Association (MBA) reported that foreclosures will hit a high mark this fall. The actual data reported as of June 30, 2009 showed a record 9.24% of all mortgages are delinquent. This represents about 4 million homeowners who are 30 days behind on their mortgages. In addition, there are 4.3% of all mortgages that are already in the process of foreclosure. This means that there are a combined 13.16% of all mortgages that are delinquent and are in the process of foreclosure as of June 30, 2009.
The reasons for the increase in delinquencies are (1) more option Adjustable Rate Mortgages (ARM) are resetting to higher rates triggering defaults and (2) more prime fixed-rate loans are defaulting due to job losses. In California, Notices of Default (the start of foreclosure process) were sent to 108,000 households in July 2009 alone.
Question: What should homeowner do to avoid situation when a Notice of Default is forthcoming?
Answer: Homeowners should consult with a loan modification attorney to protect their rights and save their home. The banks are very slow in responding to loan modification request. Bank of America and Wells Fargo bank (which accounted for majority of all mortgages) reported to have modified loans of a mere 5% and 6% respectively of the delinquent borrowers. The main reason is that the staffs in the Loss Mitigation Department of the bank are so busy that they have insufficient time to analyze the individual borrower’s case. There is huge number of applicants but the banks staffs are insufficient to serve them effectively. Many of my clients tried to do the loan modification themselves but they are unsuccessful. After they signed up for our services we immediately contacted the banks and they ultimately agreed to offer modification terms to our clients.
Question: What types of loan can be modified under the Obama program?
Answer: The Obama Loan Modification Program will modify loans that are secured through Fannie Mae and Freddie Mac. FHA loans have their own program of loan modification.
Question: What should borrowers with FHA guaranteed loan do to request modification?
Answer: Borrowers with FHA guaranteed loans should contact their lender and request loan modification. They may also contact a reputable attorney who do loan modification to negotiate with the lender.
Question: Can a homeowner apply for loan modification while in bankruptcy proceedings?
Answer: Yes. However, it is better to apply for loan modification before filing bankruptcy because you have a better chance of getting better terms in modifying your loan.
Question: May a borrower request loan modification while in foreclosure?
Answer: Yes. A foreclosure process starts when you received a Notice of Default (NOD) registered with the county recorder’s office. It ends when the property is sold in a public auction at a Trustee Sale. Upon receipt of the NOD you should immediately contact an attorney to do a loan modification. It is important to do this immediately because the Loss Mitigation Department of the bank is very busy and it will take sometime before they finally look at your case. In the NOD you are given 90 days to come up with the payment for all missed payments. If you cannot come up with the payments within 90 days, the lender will send you a Notice of Trustee Sale and will publish the property for sale at a public auction within the succeeding 20 days. After the 20 days of publication and no loan modification is agreed upon, the property will be sold to the highest bidder in a public auction.
Note: This is not a legal advice. You need to talk to an attorney about your specific case. Our office offer FREE initial consultation on Loan Modification only.
Crispin Caday Lozano is an active member of the State Bar of California since 1999. He graduated Juris Doctor (Law Degree) from Western State University School of Law in Fullerton, California. He is a licensed Real Estate Broker #01297744 since October 2001. He is also a Certified Public Accountant and a Bachelor of Business Administration Cum Laude graduate. His offices are located at 17057 Bellflower Blvd. Suite 205, Bellflower, CA 90706 and 1290 B Street, Suite 205, Hayward, California 94541 and at 777 N. First St., Suite 333, San Jose, CA 95112. You can contact him at telephone (562) 461-1355 and (510) 538-7188.
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