Foreclosure rates are at an all-time high in the US right now. Stories of houses being abandoned by their owners and turned back over to the bank are all too common. The funny thing is that the banks don't even want the houses back, as they aren't in the real estate business; they're in the business of banking. This is an important fact to keep in mind if you happen to be in a place where you can't afford to pay for your mortgage anymore. Whether you're in financial distress in general, unable to keep up with your adjustable rate mortgage or some other bind, there ARE programs out there that will help you restructure your current loan and allow you to keep your house and get your loan back in order.
These programs are referred to as Loan Modification, Loss Mitigation, or Home Loan Workout programs. You do need to exercise caution when enrolling in this type of program and make sure you are working with a reputable company, but the programs can be extremely successful and can offer great financial relief.
Take, for example, a borrower with a $400,000 mortgage loan at 8%, living in a home worth $340,000. Once the home has been foreclosed, the bank has to either re-list the home on the market or sell it at an auction. Re-listing or auctioning off the home could potentially add another $60,000 in losses for the bank.
If the bank takes the loss by re-listing or auctioning off the home, they're looking at a total loss of nearly $120,000. A modified mortgage loan of a 30 year fixed rate, and a lower interest rate of 5.25% would instead have the bank looking forward to almost $400,000 in interest payments over the life of the new loan. Talk about win/win!
Homeowners can occasionally be successful at working out loan modifications on their own, however default rates with attorney-backed modifications are 5% or less. Self-help modifications are defaulting at over 50%. This is why banks prefer to work with attorneys.
More often than not, if an attorney structures a loan modification for you and it doesn't work out, their fee is refundable. You're likely to see incredible results from restructured loans! Loan principal reductions, interest rate reductions, extended payment terms and lower monthly payments are all feasible when you modify you loan.
We can give you a free consultation to see what can be done to best fix the financial fiasco you're dealing with. If you're having problems making your current mortgage payment or you're dealing with an adjustable rate mortgage that doesn't work for you anymore, give us a call at 1-888-282-1011 and get some more information about our loan modification program!
These programs are referred to as Loan Modification, Loss Mitigation, or Home Loan Workout programs. You do need to exercise caution when enrolling in this type of program and make sure you are working with a reputable company, but the programs can be extremely successful and can offer great financial relief.
Take, for example, a borrower with a $400,000 mortgage loan at 8%, living in a home worth $340,000. Once the home has been foreclosed, the bank has to either re-list the home on the market or sell it at an auction. Re-listing or auctioning off the home could potentially add another $60,000 in losses for the bank.
If the bank takes the loss by re-listing or auctioning off the home, they're looking at a total loss of nearly $120,000. A modified mortgage loan of a 30 year fixed rate, and a lower interest rate of 5.25% would instead have the bank looking forward to almost $400,000 in interest payments over the life of the new loan. Talk about win/win!
Homeowners can occasionally be successful at working out loan modifications on their own, however default rates with attorney-backed modifications are 5% or less. Self-help modifications are defaulting at over 50%. This is why banks prefer to work with attorneys.
More often than not, if an attorney structures a loan modification for you and it doesn't work out, their fee is refundable. You're likely to see incredible results from restructured loans! Loan principal reductions, interest rate reductions, extended payment terms and lower monthly payments are all feasible when you modify you loan.
We can give you a free consultation to see what can be done to best fix the financial fiasco you're dealing with. If you're having problems making your current mortgage payment or you're dealing with an adjustable rate mortgage that doesn't work for you anymore, give us a call at 1-888-282-1011 and get some more information about our loan modification program!
About the Author:
Jon Ochs has over 12 years experience in the credit and debt industry and is the founder/CEO of NCA Credit Repair, the Best Loan Modificiations in the nation.
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