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Can You Get Banks to Move Quicker?

The Los Angeles Times reported that banks are moving extremely slow in modifying people’s home loans.  There are many reasons why the banks are moving so slow, and while many people might believe that banks are simply being greedy, the truth is more complex.

Banks understand that loan modifications are actually good for their bottom lines, especially in comparison to the damage a foreclosure can do. However, various financial, governmental and circumstantial challenges have interfered with banks’ ability to perform loan modifications.

 

 

Government Challenges – the first report from the Obama Administration stated that their ability to get loan modifications was hampered.  The Treasury Department said that just 9% of eligible loans had been changed.  In fact, loan modifications at two mega-banks were even lower, just 6% at Wells Fargo and 4% at Bank of America.  These numbers are strictly for the federal program, and not for loan modifications in general.  Other lending institutions, such as GMAC and JPMorgan Chase reported much better federal loan modification percentages, some of them reaching into the 20% range.

Financial Challenges – Banks which have many leases going into foreclosure often have a difficult time figuring out how to manage all of the failed mortgages with all of the ones that can be salvaged.  With the federal program, so much bureaucracy exists on both sides, trying to get proper financial information from each other can be difficult.

Circumstantial Challenges – The federal program puts a great deal of pressure on the banks.  However, regardless of the pressure, banks still have to hire people to field the phone calls, e-mails and other communications.  This takes time. 

A loan modification attorney can help the average person avoid the kinds of challenges people are facing.  These challenges include trying to get a bureaucrat to get something done, or being one of a million people calling the same phone number.  A loan modification attorney can be your ears, your eyes and possible even your mouth, and they can make the loan modification process far less painful and far more successful.

Loan modifications can help you lower your monthly mortgage payment, thus allowing you to stay in your home for the long term.  A loan modification is a negotiation between the lender and the borrower to change the terms of the loan, with the end result being a lower monthly payment.  This can help the homeowner avoid foreclosure.  Loan modifications can lower your mortgage’s interest rate, increase the amount of time covered by the mortgage (from 30 years to 40 years), eliminate the late fees and penalties, offer you a principal reduction and much more. 

With a skilled California loan modification attorney, you can avoid the headaches and time lag that people are facing with the federal loan modification program.  If an attorney contacts a bank, the bank is far more likely to respond quickly.  An experienced loan modification attorney might even be able to avoid the long wait time by knowing who to call and when to call them.

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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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