Posts Tagged loan modification
I owe more on my house than it’s worth. What are my options?
Posted by David Leon in Foreclosure, Real Estate Law, Short sale, loan modifications on 28/04/2010
1. Do nothing. This will usually lead to a foreclosure of the house. The bank will obtain possession, and then file a “forcible entry and detainer” (called F.E.D. or F.E.&D). After the FED is filed, the bank will have the occupants of the home evicted, and their property placed in the street.
2. Attempt to do a loan modification. In a loan modification, a borrower is requesting the mortgage company to change the terms of a loan, such that the borrower can afford to keep the house.
3. Attempt to do a “short sale” on the house. This is a procedure in which you sell the house for less than what is owed. This requires the bank’s permission.
4. Attempt a work out plan with the bank. In these plans, the bank will offer different services. This can include a forbearance (agreement to suspend loan payments for a given time), recapitalization (taking the missed payments and adding them to the principal of the loan), or extending the loan (taking the missed payments and applying them to the end of the loan.)
If you would like to discuss this with our firm, please call us at (214) 696-0021, or click below to instant chat with us.
Please call me:
Or click here for Instant Messaging with our office (office hours only)
Post Footer automatically generated by Add Post Footer Plugin for wordpress.
I want to abandon my property and walk away from the loan. What should I do?
Posted by David Leon in Foreclosure, Real Estate Law, loan modifications on 17/06/2009
You have a few common options.
1. You can do nothing. The bank will proceed with its foreclosure action and reclaim the property. This is usually the worst option to take. In some cases, the mortgage company might not make enough on the sale to cover the loan. The bank may have the option to sue the borrower for the deficiency.
2. You can ask the bank to accept the property, and dispense with the foreclosure. In most cases, the bank will not take any further action. This is typically called a “deed in lieu of foreclosure.”
3. You can attempt to sell the property. If you sell it for more than the loan, plus closing costs, you keep the difference. If you sell it for less than the loan, the bank may waive the difference. This is called a “short sale.” In a short sale situation, the borrower should not receive any money from the sale. Also, the borrower may have to pay taxes for the amount of the debt that was forgiven by the short sale.
If you would like to discuss this with our firm, please call us at (214) 696-0021, or click below to instant chat with us.
Please call me:
Or click here for Instant Messaging with our office (office hours only)
Post Footer automatically generated by Add Post Footer Plugin for wordpress.
What parts of my loan can be changed with a mortgage modification?
Posted by David Leon in loan modifications on 31/05/2009
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.
If you would like to discuss this with our firm, please call us at (214) 696-0021, or click below to instant chat with us.
Please call me:
Or click here for Instant Messaging with our office (office hours only)
Post Footer automatically generated by Add Post Footer Plugin for wordpress.
What is a loan modification?
Posted by David Leon in loan modifications on 31/05/2009
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.
If you would like to discuss this with our firm, please call us at (214) 696-0021, or click below to instant chat with us.
Please call me:
Or click here for Instant Messaging with our office (office hours only)
Post Footer automatically generated by Add Post Footer Plugin for wordpress.
I had two liens on my house (first and second). The first lienholder foreclosed. Can the second lienholder do anything?
Posted by David Leon in Real Estate Law on 15/01/2009
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.)
If you would like to discuss this with our firm, please call us at (214) 696-0021, or click below to instant chat with us.
Please call me:
Or click here for Instant Messaging with our office (office hours only)
Post Footer automatically generated by Add Post Footer Plugin for wordpress.
I am behind on my mortgage. What happens next?
Posted by David Leon in Foreclosure, Legal news and errata, Real Estate Law, loan modifications on 15/01/2009
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.
If you would like to discuss this with our firm, please call us at (214) 696-0021, or click below to instant chat with us.
Please call me:
Or click here for Instant Messaging with our office (office hours only)
Post Footer automatically generated by Add Post Footer Plugin for wordpress.
I am behind on my mortgage. What happens next?
Posted by David Leon in Foreclosure, Legal news and errata, Real Estate Law, loan modifications on 15/01/2009
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. If you would like to discuss your problem with us, please call us at (214) 696-0021
If you would like to discuss this with our firm, please call us at (214) 696-0021, or click below to instant chat with us.
Please call me:
Or click here for Instant Messaging with our office (office hours only)
Post Footer automatically generated by Add Post Footer Plugin for wordpress.
The Leon Law Firm Dallas, Texas & NY, NY Business Lawyers (214) 696-0021
This is the Dallas, Texas law firm of David L. Leon, P.C.
Looking for the New York office of David L. Leon?
Please call me:
Or click here for Instant Messaging with our office (office hours only)
Translator
Friday, September 3, 1:40 am