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Banks Report Benefits from Loan Modifications

Over the last three years, banks have failed at an increasingly alarming rate.  This year, more banks have failed in the first seven or eight months than in all of last year.  Recently, the failure of a behemoth bank named “Colonial BancGroup” out of Alabama was shocking.  The bank had tens of billions of dollars in assets, including quite a few billion dollars in mortgages.  These sorts of challenges scare governments, banks, financial institutions and investors.  The federal government has had to battle this fear by implementing stimulus programs, loan modification programs and other forms of aid to banks and consumers.

 

While the stimulus programs have come under fire, and people are protesting federal debt, banks are benefiting from the loan modifications they have been agreeing to.  Loan modifications limit foreclosures by giving homeowners another way to stay in their homes.

For example, OneWest Bank of Pasadena is the savings bank which was created from the ashes of IndyMac Bancorp, a financial institution that collapsed under the weight of its bad mortgages.  IndyMac was one of the leading banks in the subprime mortgage crisis.  They even had a quite a few mortgages where the income of the homeowner was not properly documented.

While some of the mortgages have had problems, loan modifications have gone a long way to helping banks build a profit.  The IndyMac situation is a semi-crisis, as they had a run on the bank and had to shut their doors.  However, between the loan modification efforts of California loan modification attorneys and renewed ownership, the new OneWest Bank of Pasadena actually posted a profit.  This is a long way from over however.  OneWest had $137 million worth of foreclosed homes on their books on June 30, which is up from $18 million on March 31.  However, without the loan modification efforts of qualified California loan modification attorneys, there is no telling how much larger the $137 million number would be.

It is reported that of the $6.6 billion in mortgages that OneWest has in its portfolio, nearly $2 billion were delinquent and/or facing foreclosure.  With such a substantial number, the bank is desperately seeking ways to keep these people in their homes.  Unlike global banks such as JP Morgan and Citi, OneWest is regional and cannot afford to simply write off billions of dollars in losses year after year.  They need the homeowners to find ways to keep current with their mortgage payments, which absolutely includes loan modifications.

A California loan modification attorney can help any homeowner decide if a loan modification is right for their situation.  A loan modification is a way to lower your monthly mortgage payments to an amount that is more affordable for the homeowner, thus allowing him or her to stay in their home and avoid foreclosure.  Loan modifications have been around for quite a long time, but were not really paid much attention to until recently. 

If you are facing foreclosure, if your home value has faced a severe decrease in value or if you are afraid of falling way behind on your payments, contact a qualified California loan modification attorney today.

Visit us at http://www.loanmodificationhelpcenter.org/ or call 800-359-6941.

Legal Disclaimer

The information contained herein is provided for general information and advertising purposes only and is not intended to convey a legal option nor legal advice for any particular case or situation. Nothing in this article shall create an attorney-client relationship. Nothing sent to this law office via e-mail shall constitute an attorney-client relationship. Nothing contained in this article shall be construed to be a guarantee or prediction of result. Prior results are provided for general information purposes only and do not guaranty, warranty or predict a similar outcome with respect to any future matter.   Results achieved depend on individual circumstances and not everyone will qualify or be successful in restructuring their mortgage loan.

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We can help you stop foreclosure with a loan modification in the following states:

If you need help understanding your option of taking advantage of the home loan modification process, the help is available to you everywhere. The process is quite tricky and it is highly recommended that you do indeed seek legal advice before signing on the dotted line, in order receive the most efficient and cost-effective modification to your mortgage payment.

Where do I get Advice
There is advice all over the web on how to receive a loan modification; some of this advice is quite helpful, while some is quite dreadful. There is also the opportunity to hire a professional service that will help you go through the paperwork and work with the lender to help you get all the benefits that you deserve, due to a hardship. Loan modification is a process that must be understood completely and thoroughly. This article can actually offer you an insight on the process of loan modification and tips that will better help you as a homeowner save your home from the risk of a foreclosure.

Loan Modification Advice
First and foremost, it is important to determine if you are eligible for a loan modification. This requires writing a letter of hardship explaining to the lender what exactly the reason is for your late payments and the fact that you are unable to pay your mortgage. Doing a loan modification on your own requires more than just advice. Becoming educated about the process is more important. This is perhaps a good reason to hire a professional loan modification company to take part in the process. They will handle everything for you, while educating you in the progression. There is a fee charged for hiring these companies, but in turn your mortgage payment can be lowered quite a bit and professionals can even find things in your original loan papers that may prove that the lender may have broken the law during your original mortgage signing.

If you do choose to take the big leap of the loan modification process on your own, you must first contact the lender and they will lead you to the correct department, normally the loss mitigation department. You may not want to directly say that you are in the process foreclosure. We do not want the lender to think your situation is not worth their time before hearing you out. Always document anything relating to the loan modification process, every phone call and any other information you may receive during the process must be documented. Always discuss every option available with your lender, so that you may come up with the best alternative for you. It is true you will save money going directly through your lender and let’s face it, you are struggling already trying to make your payments, but professional assistance can help immensely.

No matter what direction you decide to take, loan modification will be what determines the amount of time you have in your home. If you are eligible you should act as soon as possible.

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