If your loan modification was denied, don't worry: you're not alone. Loan modifications may be one of the hardest things to get approved without the assistance of an experienced attorney. After denial, your next step will depend on the reason why you were denied and where your home is in the foreclosure process.
By Suffolk County Bankruptcy Lawyer, the Law Offices of Allison B. Crain & Associates
Regional Spotlight—New York ranks third in the nation in the number of homeowners delinquent on their mortgages or in foreclosure, the Mortgage Bankers Association recently reported. In 2013, the number of foreclosures reached a three-year high in the state. Experts speculate that the number of high foreclosures is partially due to a still-sluggish local economy. While the unemployment rate is lower than it has been since the end of the Great Recession, many jobs are lower-paying and the unemployment rate is still higher than it was before 2008.
Delays in processing foreclosures
By John Voket
I received some important information issued through the Connecticut Public Interest Research Group - ConnPIRG - which is one of a network of these nonprofit consumer agencies operating across the country.
ConnPIRG issued a notice that new Consumer Financial Protection Bureau (CFPB) rules are now in effect that will help protect homeowners and homebuyers from the mortgage abuses they say led to the housing crisis.
According to loan modification expert David Ramos, prior to the proliferation of subprime loans and the mass securitization of mortgages, “the loan modification system was a lot more simple.” The process required a homeowner to contact the mortgage servicer to work out an agreement to change the terms of the loan.
During the years leading up to the housing market collapse, banks and other entities started packaging these loans and selling them to investors as mortgage-backed securities. Loans that could previously be traced back to the mortgage lenders were now owned by Wall Street investors, which greatly complicated the traditional loan modification process.
When these mortgages soured and the default rate skyrocketed, the event contributed to the financial crisis that occurred in 2008. Subsequently, taxpayers’ bailed out of big banks to the tune of $750 billion.
In March 2009, the Obama Administration introduced the Home Affordable Modification Program (HAMP). After the first year results of HAMP filtered in, it became obvious that the program was not working as intended.
A home loan modification is a process in which the mortgage is modified outside of the original mortgage to new terms and agreements. The resulting mortgage usually results in lower monthly payments, but the new mortgage also commonly has longer terms and potentially higher interest. The overall effect of a loan modification is to make the monthly payments more affordable for the homeowner.
Although home loan modifications are viable solutions, many homeowners choose to pursue their own modification, which results in an unsuccessful home loan modification and the bank foreclosing on the home. On the other hand, the loan modification experts at Amerihope Alliance Legal Services are among the best and most effective in the industry at getting home loan modifications approved.
Even Dracula would be embarrassed by the bloodthirst of some attorneys for people's money. Oftentimes these lawyers put money before people, and lives can be destroyed or seriously altered in this process. There are ways to avoid becoming a victim of their thirst, and to make sure that the foreclosure defense attorney of your choice is out for the bank's blood, not yours.
Hire the Right Person for the Job
If your house was flooded, you wouldn't call an electrician. If you had cataracts, you wouldn't call your general practitioner. It's a mystery why so many people hire lawyers who don't specialize in foreclosure defense to defend their homes from foreclosure. While many bloodthirsty "general practitioner" attorneys would have you believe that they have what it takes to save your home from foreclosure, foreclosure defense takes a specialist who is not only experienced in the art of foreclosure defense, but is actively working on current foreclosure defense cases. Don't worry, although the word "specialist" usually brings to mind expensive costs, that is not necessarily the case with these attorneys. Many foreclosure defense attorneys are sensitive to the needs of people in foreclosure, and have alternative fee structures that are designed to help those who are in financial trouble. Some foreclosure defense attorneys even offer loan modification as an ancillary service, which will help concerned homeowners kill two birds with one stone.
No Outcome Is Guaranteed
If a lawyer guarantees a "win" or a certain result on a case, then RUN! Bloodthirsty attorneys will often do this to goad unsuspecting people into signing up. The truth is that foreclosure defense is an involved process that involves plenty of negotiation with the bank's lawyers; no result is guaranteed. The only thing an attorney should guarantee is that they will do their utmost to save you and your home from the ravages of foreclosure.
The big banks have done a lot of wrong, but one of the most shameful things that they've done is deny deserving homeowners loan modifications. Many homeowners have lost their homes because of this. It would be one thing if banks simply denied these loan mods on the spot after accepting the modification applications, but instead, they usually lead homeowners on wild goose chases for months- or years- before denying their loan modification, or will often offer homeowners a loan modification, but with terms that are much worse than what homeowners deserve.
We often receive questions from our readers about the Foreclosure Process in Illinois.
Below are 5 common questions about foreclosure in Illinois.
Remember, if you have a question you can leave it in the comments below, or contact our law firm at 877-882-5338 us for a more private matter.
1.) How Does the new Illinois Foreclosure Law Affect Me?
From a reader in Bloomington, Illinois
The new foreclosure law in Illinois affects you because it protects you from a wrongful foreclosure.
Disclaimer: These results should not be taken as a guarantee, as each case is unique. We have helped over 5,000 homeowners, here is one of their stories.
A newly single Florida homeowner had endured a financial hardship for nearly half a decade, and by the time he was able to begin picking up the pieces, he was 5 years and over $156,000 behind on his mortgage payments to Ocwen Financial. This homeowner was locked into a monthly mortgage payment of $2,341.74 at an astronomically high 10.30% interest rate. He had already been offered a loan modification which he wasn't able to afford, and his home was about to be sold in foreclosure if he didn't do something quickly. However, this homeowner's situation changed completely in the months after he retained our firm this February 2013.
Disclaimer: These results should not be taken as a guarantee, as each case is unique. We have helped over 5,000 homeowners, here is one of their stories.
A Florida homeowner was having difficulty paying his monthly mortgage payment and was fearful of losing his home. His fear was well-founded, because he was nearly 1.5 years behind and over $52,000 past due on his monthly mortgage payments to Bank of America. This situation was further exasperated by the high cost of his monthly payment: nearly $3,400 monthly.
