Ask a Lawyer, David L. Leon, Attorney, Dallas, Texas (214) 696-0021 » loan modification http://leonlaw.com/askalawyer Frequently asked questions about Texas law from David Leon, Attorney, Dallas, Texas, (214) 696-0021 Sat, 02 Jan 2010 03:37:30 +0000 http://wordpress.org/?v=2.9.2 en hourly 1 I want to abandon my property and walk away from the loan. What should I do? http://leonlaw.com/askalawyer/2009/06/17/i-want-to-abandon-my-property-and-walk-away-from-the-loan-what-should-i-do/ http://leonlaw.com/askalawyer/2009/06/17/i-want-to-abandon-my-property-and-walk-away-from-the-loan-what-should-i-do/#comments Thu, 18 Jun 2009 02:16:35 +0000 David Leon http://leonlaw.com/askalawyer/?p=583 You have a few common options.

1. You can do nothing. The bank will proceed with its foreclosure action and reclaim the property.
2. You can ask the bank to accept the property, and dispense with the foreclosure.
3. You can attempt to sell the property.


]]> http://leonlaw.com/askalawyer/2009/06/17/i-want-to-abandon-my-property-and-walk-away-from-the-loan-what-should-i-do/feed/ 2 What parts of my loan can be changed with a mortgage modification? http://leonlaw.com/askalawyer/2009/05/31/what-parts-of-my-loan-can-be-changed-with-a-mortgage-modification/ http://leonlaw.com/askalawyer/2009/05/31/what-parts-of-my-loan-can-be-changed-with-a-mortgage-modification/#comments Sun, 31 May 2009 22:06:02 +0000 David Leon http://leonlaw.com/askalawyer/?p=553 There are a few different terms of the mortgage that can be changed:

1. You can request that the interest rate be lowered during the term. This can reduce the amount of interest that you pay for your loan and lower your monthly payment. This is helpful if you have a high interest or adjustable rate mortgage (ARM) loan.

2. You can request that the principal of the loan be reduced. This is usually requested where the value of the home has decreased such that a borrower owes more than the home is worth.

There are other modifications, including changing the loan’s length.


]]> http://leonlaw.com/askalawyer/2009/05/31/what-parts-of-my-loan-can-be-changed-with-a-mortgage-modification/feed/ 0 What is a loan modification? http://leonlaw.com/askalawyer/2009/05/31/what-is-a-loan-modification/ http://leonlaw.com/askalawyer/2009/05/31/what-is-a-loan-modification/#comments Sun, 31 May 2009 22:01:43 +0000 David Leon http://leonlaw.com/askalawyer/?p=551 Typically, a loan modification is the alteration of a mortgage so that a borrower may have a chance to keep his or her home. The most common example is a person who has an “Adjustable Rate Mortgage” (ARM) loan, or an interest only “teaser rate” loan, and can no longer afford their house. A borrower may contact the lender and ask for help in modifying the loan so that s/he can keep the house.


]]> http://leonlaw.com/askalawyer/2009/05/31/what-is-a-loan-modification/feed/ 2 I had two liens on my house (first and second). The first lienholder foreclosed. Can the second lienholder do anything? http://leonlaw.com/askalawyer/2009/01/15/i-had-two-liens-on-my-house-first-and-second-the-first-lienholder-foreclosed-can-the-second-lienholder-do-anything/ http://leonlaw.com/askalawyer/2009/01/15/i-had-two-liens-on-my-house-first-and-second-the-first-lienholder-foreclosed-can-the-second-lienholder-do-anything/#comments Fri, 16 Jan 2009 04:56:49 +0000 David Leon http://leonlaw.com/askalawyer/?p=70 This is a common question. The answer is that a second lien holder’s security interest in your home is lost if the first lien holder forecloses. However, the debt is not wiped out, the obligation to pay still survives. If the second lien was a non-recourse note, then the second lien holder may not go after the borrower. (In Texas, home equity loans are non-recourse, so the lender may only look to the property for relief.)


]]> http://leonlaw.com/askalawyer/2009/01/15/i-had-two-liens-on-my-house-first-and-second-the-first-lienholder-foreclosed-can-the-second-lienholder-do-anything/feed/ 0 I am behind on my mortgage. What happens next? http://leonlaw.com/askalawyer/2009/01/15/i-am-behind-on-my-mortgage-what-happens-next-2/ http://leonlaw.com/askalawyer/2009/01/15/i-am-behind-on-my-mortgage-what-happens-next-2/#comments Fri, 16 Jan 2009 04:51:46 +0000 David Leon http://leonlaw.com/askalawyer/?p=67 This is becoming more and more common. Many people are facing adjustable rate mortgage (ARM) hikes, or their property values have declined to levels below their purchase value. Couple this with lost jobs, sudden illness or just plain bad luck, and you have a mortgage problem. As for what happens next, here is the process, in a very summarized way: If you do not pay your mortgage, you will be in default, per the terms of your mortgage agreement. Usually the first step is a call from the mortgage company asking you what happened. This is a time to ask for any programs that may help you save your home. If you are unable to work something out at this stage, the next step is for the mortgage company to issue you an acceleration notice. This means that the entire amount of the mortgage due immediately. After the acceleration, the mortgage company may file for a foreclosure, in which they can place the house for auction (typically on the first Tuesday of the month). After the house is sold at auction, the new owner may file suit for an eviction. If you are evicted, a constable will be issued to your home, remove the contents, and eject you from the house. As with most legal matters, the longer you wait to speak with someone, the more difficult it becomes to help you. If you are in trouble with your mortgage, then you should consider getting help as quickly as possible.


]]> http://leonlaw.com/askalawyer/2009/01/15/i-am-behind-on-my-mortgage-what-happens-next-2/feed/ 0 I am behind on my mortgage. What happens next? http://leonlaw.com/askalawyer/2009/01/15/i-am-behind-on-my-mortgage-what-happens-next/ http://leonlaw.com/askalawyer/2009/01/15/i-am-behind-on-my-mortgage-what-happens-next/#comments Fri, 16 Jan 2009 04:51:45 +0000 David Leon http://leonlaw.com/askalawyer/?p=66 This is becoming more and more common. Many people are facing adjustable rate mortgage (ARM) hikes, or their property values have declined to levels below their purchase value. Couple this with lost jobs, sudden illness or just plain bad luck, and you have a mortgage problem.

As for what happens next, here is the process, in a very summarized way:

If you do not pay your mortgage, you will be in default, per the terms of your mortgage agreement. Usually the first step is a call from the mortgage company asking you what happened. This is a time to ask for any programs that may help you save your home.

If you are unable to work something out at this stage, the next step is for the mortgage company to issue you an acceleration notice. This means that the entire amount of the mortgage due immediately.

After the acceleration, the mortgage company may file for a foreclosure, in which they can place the house for auction (typically on the first Tuesday of the month). After the house is sold at auction, the new owner may file suit for an eviction.

If you are evicted, a constable will be issued to your home, remove the contents, and eject you from the house.

As with most legal matters, the longer you wait to speak with someone, the more difficult it becomes to help you. If you are in trouble with your mortgage, then you should consider getting help as quickly as possible.


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