Loan Modification

As the home market fluctuates there are many topics that homeowners must review in relation to their future.   No individual wants to lose their home but the search for solutions to stop foreclosure seem to be limited.   

Some families are forced to abandon their home while other families are relying on age appropriate individuals to find work and in many cases work more than one job.   The home market struggle is being faced by every individual and the threat of foreclosure is very real.   

A method available to help stop foreclosure and protect your family is to find a home loan modification.   There are a great deal of benefits when working with a company that offers home loan modification and the following covers only a few of those benefits.

When a person seeks a home loan modification there are many topics that may relate to the decision they make.   They could be seeking to stop foreclosure and protect their home.   A job loss or reduced income may require an individual to find a way to reduce their family's monthly expenses beginning with the mortgage.   Concerns may be drawn by the fact that the reduced housing market has now made what is owed on the mortgage to be more then the value of the home.   

Regardless of an individual’s reasoning the overall theme in these topics is that the bills are getting higher and the person is seeking a reduction in monthly expenses, specifically the mortgage payment.   A home loan modification can assist in all of these topics, including how to stop foreclosure.   The home loan modification process will access your current condition including income, current home value, and remaining amount on your current home loan.   

The result of the home loan modification often can reduce your monthly mortgage payment and save you money in the long run while representing your answer to stop foreclosure.

Any reduction related to the monthly expenses of a family is very helpful in this market, especially when that reduction is related to your home.   There are other advantages associated with obtaining a home loan modification.   

In addition to the reduction in your monthly mortgage payment, a home loan modification often offers a reduced interest rate for the amount you owe in comparison to your previous mortgage.   A reduction in interest may not show in your current mortgage payments but it will reflect on the total dollar amount you owe on your mortgage and the time frame it is to be paid.   The reduction will benefit your family in the long run, putting you closer to the ability to own your home and be free from a banking institution.

Finding a way to reduce your monthly expenses represents a great financial opportunity in regards to the short term.   Finding a way to reduce the total mortgage balance on your home is a great financial solution for individuals in regards to the short term.    However, many upon receiving a home loan modification overlook the immediate results.   

The greatest advantage of achieving modification is with finding a way to protect your family’s home and stop foreclosure.   The loss of a home can be devastating to a family and it is important to recognize that you are taking steps to protect your home and your family.

Stop Foreclosure

The recession has caused high unemployment rates, hard working people striving to maintain the "American Dream" are currently faced with the probability of losing their home. 

According to estimates, 1 out of every 200 homes will be foreclosed on. With every passing day a person some where is seeking plausible solutions to save their home. 

When it comes to foreclosure, one of the major error that people make is failing to openly discuss with their lender about their circumstance. Sadly, homeowners often wait too late to try to negotiate a deal to save their home. The smart thing to do is to inquire to see if there are options available.

Fortunately, there are several different ways to actually stopstop foreclosure from taking place. Here is a fact, lenders are not in the business of taking anyone's home. It is important to recognize and understand that lenders do not want homes to go into foreclosure. Lenders are in the business of lending money and therefore would choose to have mortgage loans paid. As such, most lenders are more than willing to work with homeowners to figure out a repayment plan to keep people in their homes if and when possible.

If you are facing foreclosure you may be able to:

   1. Reduce Your Monthly Mortgage Payments

   2. Get Your Loan Modified

   3. Short Sale Your Property

   4. DeferDefer Your Mortgage Payment 

The above mentioned are just a few options that may be possible, check with your lender and/or seek legal assistance from a loan modification attorney to try to work something out to prevent foreclosure. Some people assume that it will cost them nothing to just give up their home and let it go into foreclosure. The truth is foreclosure will involve money and will negatively affect your credit. Is it worth it? No. Avoid Foreclosure.

Obama's Loan Modification Plan

Obama's Loan Modification Plan is aimed at assisting homeowners refinance or modify their loans for more affordable mortgage payments.

The unfortunate aspect is a large portion of the funds go to the banks and they're not obligated to heed. Only individuals who are not behind on their mortgage account and whose loans are with Fannie Mae and Freddie Mac are eligible for Obama's Loan Modification Plan. The plan is leaving millions of U.S. homeowners in danger of facing foreclosure defenseless & out of the plan.

Here are a few general customary criteria for basic eligibility for this program:

1. The home must be your primary residence

2. Cannot be used for second mortgages

3. Prove Income

4. Your current home loan must equate to 31% or more of your gross monthly income

As many as 6 million families are projected to experience foreclosure in the next couple of years.

The bleak and quick drop in the economy and in the housing market has caused overwhelming repercussions for homeowners throughout the the United States . Millions of steadfast families who pay their monthly mortgage payments on schedule have had the value of their property fall and under the circumstances are now incapable to refinance to lower mortgage rates. Meanwhile, millions of workers in the United States are having a hard time staying current on their mortgage payments after having their hours cut or being terminated. In the last 14 months alone five million plus jobs have been eradicated and millions of hard working families are now applying more than 40 or 50 percent of their income towards their monthly mortgage payment.

How To Modify A Loan
When a loan modification application is presented by a homeowner, it is carefully analyzed to decide the profitability to the investor or the possibility of loss. The "Net Present Value Test" is used to decide what will provide more cash flow to the investor-Foreclosure or Modification. The homeowner's best interest is not part of the decision making process. It is completely based on what is more financially rewarding to the investor. If modification is not in the best interest of the investor, they will deny your application.

For this reason legal assistance is available to homeowners.
For more information regarding Home Loan Modification Please call Janian and Associates at 877-369-4529 or visit: www.JaninAndAssociates.com