Paying off your mortgage faster may not be your goal when you first buy a house, but after a few years your financial situation may change. If you have more income than you did when you first bought the house, you might consider paying off your mortgage early.
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.
Imagine if you had hired a law firm to help you save you and your family's home, but that law firm ended up splitting up and forgetting about your case. This homeowner faced that exact situation, and needed reliable help to help him ensure that his home stayed in hiMortgage s possession.
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.
Many people who were on the outside looking in at the foreclosure crisis didn't understand that many peoples situations were seemingly made worse by attempting to rectify their situation with their banks. This is probably why Washington never came up with an adequate solution to the foreclosure crisis.
Stop. Hammer-time! On the Sale Date
Consider the case of this homeowner- he had been fighting for a loan modification on his own for years prior to retaining us. Two years prior, he had lost his job and attempted to get a loan modification on his family's home, because he couldn't afford his mortgage payment, which was nearly $3500 each month. He was granted a pre-modification trial payment plan. He made the trial payments, but his bank, Wells Fargo, said he owed too much on the property for them to complete a loan modification. Afterward, Wells Fargo suggested that he try a modification again, but his house was actually sold via foreclosure auction when his modification documents did not arrive in time (the sale was rescinded afterward). By the time he retained us (April 2012) another sale date was already set on his house and he was tired of handling the situation on his own.
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.
A trial loan modification is usually the next-to-last step for homeowners who have successfully applied for a loan modification. Lenders give homeowners trial loan modifications to test their ability to pay a mortgage payment under terms that have been optimized to fit a homeowners' financial situation. Trial loan modifications usually last for 3 months, and if all 3 payments are paid in full and on time, then the mortgage lender will begin the process of offering a permanent loan modification.
For most people, a trial loan modification is like a bridge into the "promised land" of financial stability. If they're able to successfully cross over that bridge after fighting to reach it for several months, then their financial lives will be in a much better position than before.
The Imploding Housing Market
According to an article in CNN Money, the number of foreclosures reached staggering levels in 2007 with 405,000 homeowners losing their homes. Based on the previous year's numbers, repossessions in 2007 were up an astonishing 51%. Yet, the situation continued to worsen with December's foreclosure numbers skyrocketing to 97% over the previous December's filings. For the year 2007, the total filings, which included auction sale notices, default notices, and bank repossessions, towered to an unimaginable 75% over the filings in 2006. Needless to say, the housing market and the nation's economy were in dire straits.
The only certainty in life is uncertainty. Even in the face of uncertainty, everyone wants to be certain that they'll have their slice of the American Pie, which usually equates to a mortgage. At the peak of the housing market bubble, people were simply being approved for more American pie than their stomach or wallet could afford. The end result has been a staggering number of foreclosures.
If you think that ignoring errors on your credit report falls into the category of 'not worth sweating over,' think again. Mistakes on your credit report, whether they are tiny errors or major mistakes, can damage your credit rating and may indicate possible fradulent activity. If you find information that you believe is inaccurate, you have the right to dispute it free of charge.
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.
For any homeowner, the prospect of losing their home because they can’t make the mortgage payments can be a frightening experience. Since the Great Recession began, many borrowers have experienced problems making ends meet because of losing a job, divorce, medical issues and other situations.
In addition, during the real estate boom, it was common for borrowers to get duped into take on risky adjustable-rate mortgages (ARMs) to get into homes they could not otherwise afford. ARMs have low “teaser rates” for at least the first year. This feature helps borrowers qualify bigger mortgages.
After the introductory rate expires, the lender can adjust the interest rate on the loan at predetermined intervals, which can send monthly payments skyrocketing.
