Before you even start negotiating, you need to gather up all of your financial records. That includes proof of income for at least the past month or two, all of your paid and unpaid bills and two or three years of income tax returns. You need to be able to document both your income and expenses thoroughly.

When you are working with a lender to get a modification, you must keep records of everything that is said, as well as any correspondence sent or received. Some banks are notorious for saying they didn’t receive something when they did or trying to change the terms that were agreed to. Get a recording device for your phone and use it. Keep anything you get from the lender in the mail and keep copies of anything you send to the lender.

Save up the money you would normally be paying toward your mortgage payments, even if you don’t have enough to pay the full amount. When you are finally able to reach an agreement, the lender may require a lump sum amount to start the loan modification. You could be out of luck if you no longer have the money available.

Don’t agree to a plan you can’t stick to. Many times the bank will ask you to pay more than your regular payment for a few months to get your payments current. Where are you going to get the extra money to put toward your mortgage if you couldn’t even come up with the normal payment amount? Agreeing to a plan you can’t handle is worse than not having an agreement at all.

The Law Offices of Janian and Associates is a Real Estate Litigation law firm. California Loan Modification Janian and Associates protect homeowners from predatory lending practices and mortgage fraud. As many as 6 million families are expected to face foreclosure in the next several years.

Just what Options Do Individuals Experiencing Foreclosure Have? – This is often one of the most common foreclosure inquiries. People want to know if they can avoid foreclosure, and how to do it. There are many alternatives for people dealing with bankruptcy. Bankruptcy, debt settlement, and debt consolidation are excellent options. The most important point is to find out which option is best based on your financial situation.

Bankruptcy is the one choice that ought to be considered last, however. Bankruptcy destroys credit scores, making getting back on your feet after debt very tough. Debt settlement, however, allows you more flexibility on paying down your loans.

Just what Can I Do to Maintain My House? – This is among the biggest foreclosure questions and answers. To keep your house, you have to act the instant you get into debt. Most people choose to dismiss debt, simply because it stresses them out. This is certainly one of the worst decisions you could do.

Ignoring your debt doesn’t make it go away. It simply makes it continue to build up with nothing stopping it. The moment you see you’re in debt, contact your loan provider. Explain to them about your situation, and come up with a deal. In many cases, they will be inclined to work with you, because they do not want to lose all the money they’ve lent you.

These are 2 of the most often asked foreclosure q and a’s. If you’re struggling with foreclosure, understand that you are able to prevent it. If you take action the moment you get into debt, you have a good possibility of maintaining your home. To begin, visit gguidelines for loan modification.

Related: my loan modification denied

When you have to sell your home through foreclosure or short sale, is there any way to prevent a deficiency judgment from being awarded? What happens in those situations?

The only way to avoid a deficiency judgment before it happens is to negotiate with the bank about the terms of a short sale. In these cases, the bank has a choice whether to maintain the property at their expense or allow the home to be sold at less than its value. When they know that the homeowner doesn’t have the resources to pay the debt anyway, occasionally the bank will cut their losses, approve the short sale, and forego the collections process.

When that isn’t possible, depending on state law, the homeowner may have a deficiency judgment on their hands, whether the short sale was approved or the foreclosure went through. At that point, the debt only goes away through payoff or bankruptcy.

What will be the amount of the deficiency judgment? In the case of a foreclosure, the judge will take the balance due on the mortgage and subtract the greater of the high bid at the auction or the appraised value of the home. When the house is sold in a short sale, the amount the bank received from the sale is subtracted from the mortgage balance.

In either case, the homeowner is ordered by the court to pay back the leftover debt. It is entirely possible to have more than one deficiency judgment if there was more than one mortgage on that home.

The very first thing that a deficiency judgment does is to earn interest. The bank may add its REO expenses, which gives them even more money on which to charge interest. Florida allows banks to charge an interest rate of 11 percent per year for deficiency judgments. What does your state allow?

After establishing the new debt from the deficiency judgment, a bank typically turns around and sells the debt for pennies on the dollar. Banks know that collecting money from someone who couldn’t pay their mortgage is not worth their time and expense. They prefer to cut their losses and unload the debt on someone else.

Besides the deficiency judgment, the former homeowner also has a wounded credit report and a lower FICO score. Having a foreclosure on record is one thing, but a deficiency judgment or a low FICO score could influence a critical decision by others on whether to give that person a job, a loan, or a rental home.

With the number of foreclosures increasing faster than ever, the number of deficiency judgments are increasing right along with them. As the government re-evaluates how foreclosures are done in various scenarios, they may also reconsider how deficiency judgments are handled as well. On the other hand, they may not.

In the meantime, if you are about to lose your home, your best bet is to try talking with the lender. You or your agent may be able to help their loss mitigation department see how cost-effective it is for them to tell the credit bureaus that your mortgage is “paid in full as agreed.” If you don’t take the time to negotiate now, you could be paying for it later.

Need to know more about how deficiency judgments can affect people? Visit the Strategic Real Estate Coach website. You’ll gain access to weekly webinars on current events in the mortgage industry and more!

For most home owners, contacting the lender at the first sign of financial problems seems to be not so good of an idea. Most are embarrassed to discuss money issues to others or they simply don’t see the need to inform their lender right away of their present financial standing. But the truth is, asking for your lender’s help will save you a lot of trouble and it could help you save your home. As bad as you think you situation is,trust me, your lender has many more clients in a worse spot then you are. Your Lender is always willing to talk to you about a way to help.

Most people have the perception that lenders, think only of themselves and don’t care about the borrowers. This leads to the common notion that lenders show no mercy to homeowners who have defaulted on payments and will foreclose at the first opportunity. The truth is lenders like owners will do everything they can to avoid home foreclosures. So again, the best way to save your home is to work with your lender to solve the problem.

Lenders usually send a Notice of Default, also known as a NOD, if you miss payments for 3 consecutive months. DO NOT wait until you get the Notice to take action. Call your lender as soon as possible. Inform them why you have defaulted on a payment and ask for an alternative payment schedule or temporary lower rates until your finances have returned to normal.

Make sure you talk to your lender, inform them the cause of your delay, and ask for payment alternatives. Don’t wait too long before you make a move to save your home. Act fast, understand the gravity of the situation and do something. It is your obligation to pay your mortgage but when worst comes to worst, your lender will help you keep your home.

Doc Schmyz has invested all over the US and Mexico. His free website shares Real estate investing information for all over the US. Find real estate information by state

Let’s not get hung up considering the negatives before we start. We ought to think and become more analytical. Let’s look at the differences between mortgage refinance and mortgage modification, and consider them individually.

We will begin our discussion by analyzing the meaning of the two terms at issue. A refinance necessitates the payoff of the existing loan with an entirely new loan. On the contrary, a mortgage modification does not constitute a new loan. Rather, it is a “modification” in the existing loan agreement. If refinancing is denied, whether for known or unknown reasons, modification may be the instrument of preference, particularly for the homeowner struggling to maintain his/her house payment. Yes, I hear your objection that refinancing involves fees and modification requires negotiation with unpredictable individuals.. It’s actually a valid objection, I agree. However, let me bring to your attention the fact that Congress is holding mortgage lenders’ feet to the fire, challenging Legislators to speed the pace of modification approvals. Congress’ efforts are proof that efforts are being expended to bring this madness to a rapid end!

It is important to realize that there is a great deal of information currently available to assist individuals in mortgage modification. There is also financial assistance available to those who desire to pursue mortgage refinance. Additionally, consider that refinancing requires that a lender verify your credit history to determine if you are credit-worthy. Contrariwise, mortgage modification does not require a credit check.

It is also important that you realize that you’ll get a reduction in your monthly expenses, etc. This should signify that you’ll no longer be struggling just to keep your head above water each month due to burdensome mortgage payments. Furthermore, you will be able to remain in your own home and not have to transfer your children to a new school. In addition to the foregoing, there are many additional advantages!

Admittedly, there are many reasons for you to consider obtaining either a mortgage refinance or mortgage modification. Remember, the choice is yours.

Look at this seriously for a moment. Maybe you really should obtain either a mortgage refinance or mortgage modification to assist you in your efforts to remain in your home. This is just one of the many benefits of procuring a much-more manageable mortgage payment.

Interested in learning more about a mortgage refinance? Then visit us today. There you will learn more about mortgage modification and even a powerful mortgage modification system.

The timing for researching on a great deal for a new house couldn’t be better then it currently is, but first you should be aware on the pros and cons of purchasing homes through a government auctions as compared to the standard way using a realtor.

Here are some advantages to purchasing a foreclosed or pre-foreclosed home:

- The great prices available on foreclosed/pre-foreclosed homes is obviously the number one advantage.

- Many homes are in good condition for much less than their market value.

- Many more different types of homes to choose from then in the past.

- No Realtors to have to go through or agency fees to pay (although you should still get advice from someone who knows something about real estate).

- Insurance is optional. Results in additional monthly savings.

- Great investment opportunity (i.e. rent out or flip that house)

- Not as risky as stock investing, plus you will own something of physical worth.

Disadvantages:

- A mortgage could be hard to obtain, unless you have borrowing leverage

- You need to be aware of any existing liens, judgements, or unpaid taxes still on the property.

The most important thing is to make sure that the home you’re interested in is clear of all liens. You should also find out in advance what payment options the government auction will allow, and if required have your bank loan in place ahead of time. Make sure you have some decent cash saved up just in case, just as you would for purchasing a house through an agency.

Government auctions are being held all around the US and Canada. You can find information about upcoming auctions and pre-foreclosures (homes you can buy before the auction) on the internet along with detailed listings on the homes that will be for sale. Purchasing a home through a government auction can be a very rewarding adventure but doing your research ahead of time will allow you to be prepared. In fact I would recommend attending a few auctions before you are ready to purchase so that you become familiar with that environment.

The author is currently researching Homedics Back Massager and Homedics Massage Chair for a magazine article on massage.

According to the Home Affordable Modification Program:

Mortgage lenders have to send confirmation in writing that they received your loan modification request.

Mortgage lenders need to approve or reject your loan modification request within 30 days of receiving your application.

If a mortgage lender denies your application, they have to offer another option to help you avoid the foreclosure process.

Now with the Home Affordable Modification Program getting support with loan modification is much easier. The processing time is much faster.

However, some homeowners have experienced the opposite. There have been instances in which homeowners actually qualified for loan modification but the mortgage lenders took too long to look at the applications. In these cases the homes went into foreclosure because the applications were not approved in time to stop foreclosure.

Many other home owners have said that their banks are not providing any type of loan modification assistance at all.

An experienced loan modification legal expert is the best resource if you are facing foreclosure. Most will provide you with a free consultation and inform you of your rights and best options. You need a professional that is acquainted with the laws and able to negotiate on your behalf.

A qualified law firm will guide you through the entire process and help you get your loan modification approved.

Janian and Associates uses the information from the forensic loan audit to uncover the real terms of the loan, to determine if there are any applicable federal law violations, and find out if there are any hidden fees and/or commission earned by your broker and/or lender. This provides leverage for negotiating a loan modification.

Call Janian and Associates for a free consultation with a Loan Modification Attorney.

However, while this legislation is looking to the future to prevent another financial collapse and stop deceptive practices, the homeowner is not protected from the banks right now. Every day, the banks are misleading people who are in foreclosure with false promises of loan mods. This is why more and more, homeowners are taking matters into their own hands. They are coming to companies like Tila Solutions who provide complete forensic loan audits and use the results to get the banks to finally approve the loan modification.

One by one, American homeowners have fallen prey to the banks that originally mislead them with their deceptive lending practices, despite the laws that protected the borrowers. Let’s not lose sight of the fact that the banks simply chose not to follow those laws. If they had, we wouldn’t be a nation in foreclosure today. It becomes clear that Congress knows the problems exist otherwise they wouldn’t be forming a new agency to prevent future deceptive mortgage practices. But what does the homeowner who is losing his home do now? Most just lose their homes. But they do not have to. The laws that should have protected them when the lenders issued the loan can still protect them now – if the homeowner will reach out to use those laws. Forensic loan audits will reveal what the bank did wrong and open the doors to stopping foreclosure, and finalizing a loan mod.

So why is Congress turning a blind eye to the banks as they currently lie to and mislead the homeowners? Most often done by offering loan mods to them while foreclosing on those very people they said qualified? And why are the banks continuing to turn people down in record numbers?

Could there be any truth to the concerns that many people have expressed? Tila Solutions has received thousands of calls. The homeowner believed the bank’s “offers of help.” They believed it when the lender said they did not have to address the foreclosure process — that it was just a formality or a way for the lender to stay on top of the file. They believed their lender when he said that they could work directly with the lender and get the loan modified — which would automatically bring the foreclosure to a stop. Sadly, far too many of them found that actually yes, the foreclosure did stop: when the lender auctioned off their home.

What would have happened if a homeowner had known that his lender deceived him with the original loan? Would have been so likely to blindly trust that the lender really wasn’t going to auction off his home (even though the lender’s attorney firm provided him with an auction date) and was going to give him a loan mod? Probably not. Do you think the homeowner would have had the courage and wisdom to get his loan investigated?

Many homeowners are doing just that now. The attitude today is to stop trusting the bank. And it comes as no surprise: Countless forensics audits have been done, and consistently they reveal the same thing: Banks ignored the laws: the violations are found in the loan. Foreclosure doesn’t have to end in a disqualification for loan mod and an auction date. In fact, with the use of Forensic Loan Audits, homeowners are saving their homes? The lender stopped foreclosure because he actually took the homeowner seriously and got him the loan mod.

Forensic Loan Audits has been the only thing consistently saving more homes than any other approach. When homeowners get a forensic loan audit done all the TILA, RESPA, HOEPA and ECOA violations are found and revealed. Fraud is also found in 79% of the loans that forensics are conducted on. When people contact Tila Solutions, they get not only a forensic loan audit, but also a free negotiations service. A Tila negotiator provides the results of that audit to the lender and real negotiations get underway. More homes have been saved from foreclosure with the use of a forensic loan audit than any other way currently known. The laws that prevented deceptive lending practices do exist. They existed at the time the bankers went on a free-for-all, carelessly lending money and misleading homeowners. There is no need to be in foreclosure, The federal laws can help you.

Tila Consultants help countless homeowners each month, determining if there is any way that the federal laws which currently do exist can help bring an end to the current deceptive practices that lenders are involved in. A Tila Solutions Consultant can be found by visiting the website at http://www.tilasolutions.com/ or by calling 1 – 307 – 459 – 0252.

Tags: Tila Solutions, Tila, Tila-now, Loan Mod, Loan Modification, Forensic Loan Audit, Loan forensics, Foreclosure, stop foreclosure, scam, predatory loans

The buzz word loan modification simply refers to a change in the terms of a mortgage arrangement. The change is often a loss that was facilitated by either the mitigation department or by a lender when a a homeowner failed to make their payments on their mortgage, or simply just fell behind due to financial hardships.

Some borrowers attempt to negotiate modified terms for their mortgage with their lender. However, those that acquire professional loan modification services usually have a better chance of being approved and having their mortgage lowered to a more feasible rate.

Loan modification service providers thoroughly analyze a homeowner’s financial position, determine best possible options, aid with accurately completing all of the necessary paper work, and work directly with the lender.

This is beneficial to you as a homeowner for the following reasons:

* Your interest rate on your existing loan has the possibility of being decreased.

* Your interest rate may be converted to a fixed rate instead of a variable rate.

* Your repayment for the mortgage loan may be stretched.

* Your balance of the entire loan may be lowered.

* Your credit rating is not damaged by a foreclosure.

* You protect your home.

As you see there are many advantages for the homeowner. It is important to note that loan modification is also particularly beneficial for the actual lender as well. How? Lenders do not want your abode, they make money by lending money, not by foreclosing on homes. They prefer you to be able to pay your mortgage. With the assistance of a professional loan modification service provider such as Janian and Associates, you can successfully restructure your mortgage and protect your home from foreclosure.

Call janian and associates for a free consultation with a loan modification attorney.

Today, many homeowners contact Tila Solutions looking for a solution to get their lender to stop disqualifying them, and stop the foreclosure process on them. Through the use of Forensic Loan Audits, Tila Solutions has been very instrumental in helping these homeowners. You can find out more about Forensic Loan audits and predatory loans at tila-now.com.

Even so, there are thousands of people who do not understand how lenders make money off the foreclosure process. Here is an excerpt from a FAQ section of a foreclosure website that may shed some light on this:

“Who pays the foreclosure fee and costs?
If the borrower brings the loan current or pays it off, the borrower is responsible to the lender for the foreclosure fee and costs.”

“ . . .If the property is sold to an outside bidder at the foreclosure auction, the foreclosure expenses will be paid by the bidder.”
You may wonder if this is a new trend. Perhaps this post from a distressed homeowner trying to pay off a foreclosure in 2006 will help you to see how this is not a new money maker for lenders:

“HELP!! Foreclosure Fees? Posted by Brad on October 10, 2006 at 08:46:51:

“We are currently 4 months behind on the mortgage. My house is in foreclosure and scheduled to sell on November 7th. I have been trying to work with the mortgage company to salvage the house. I sent in everything asked of me two weeks ago and called every day (sometimes up to three times per day) last week leaving messages for my work out agent to call me on my cell rather than the home since I work. I FINALLY got a hold of her yesterday and she said that since she could not talk to me last week, the matter had been closed out and the original late fees of $400 had now jumped to $1200 and they would again jump this Wednesday. . . .”

“Just got the agreement papers to sign today and the fees have gone up an additional $500 from what they told me they would agree to yesterday. They want 2 months mortgage today and the rest ($576) extra over the next 9 months.”

In 2007, foreclosure fees were being scrutinized and it was discovered that as many as half the loans in chapter 13 bankruptcy had questionable foreclosure fees. You can see this for yourself with this New York Times Article: http://www.nytimes.com/2007/11/06/business/06mortgage.html

That was then, and this is now: CNN Money reported that Bank of America would have to pay out 108 million dollars to settle claims that Countrywide charged homeowners inflated foreclosure fees.

So the next time you hear that your lender will modify your loan free of charge, just remember that they don’t. The trend appears to be to keep your loan mod extending month after month, while they rack up foreclosure fees. If you do get approved for a loan mod, do miss the point that the foreclosure fees are being added to your principal balance, and you will be paying them off at a “reduced interest rate” for the next two or three decades.

There are again, thousands of reports on file of Lenders convincing people that they have no rights, and that they can count on the lender for help (you know the ones suing you). Saddest of all are the stories of homeowners who lost their homes because they believed their lenders when they convinced them that they did not need professional help. So often, those foreclosures could have been stopped.

Homeowners would be wise to listen to these words from this 13-year-old boy, because he is right. (His post comes from a comment made to the CNN Money News article of June 18, 2010 entitled Foreclosure tricks cost Countrywide $108 million – his typos have purposely not been corrected.) You may recall that this was the settlement fee that Bank of America will have to pay out to victims of Countrywide’s inflated foreclosure fee practices:

“Matthew Hutchinson Jun 18
“The reason they are able to add all this extra fees is due to them counting on people either being scared, in shock or just plain stupid. They try to take advantage of the publics ignorence on these matters and they are counting all that extra ill gotten money cause they are hoping the people being foreclosed on are dumb as dirt!
“I am 13 and see that it is not right to rip off people that way, but if we did that to them in anyway we would go to jail! No justice at all, unless your rich and in charge!”

You do not have to let the bank rip you off. Just contact a Tila Solutions Consultant. They can help you. Tila Solutions uses loan Forensics to locate all the federal laws that were violated when the lender gave you the loan. Contact a Tila Solutions Consultant at 1 – 307 – 459 – 0232 or visit their website at http://www.tila-now.com . They can help you – often when nobody else can.