True, many homeowners have applied for a loan modification without support and many have been approved. Unfortunately, the fact remains most homeowners will be wrongfully declined for a modification or approved for a payment they still cannot afford.

First let’s evaluate just a few reasons why your bank may decline your request. When you call your bank’s collection or loss mitigation department for help, what is the first thing they will ask?

1. What is your hardship?
2. What is causing you to struggle or fall behind?
3. When did your hardship begin and has it ended yet?
4. What is your gross and net income each month?
5. What are your monthly expenses each month?
6. How much do you have saved up?
7. How many people are in your household?
8. etc…

You may think that all you need to do is answer a few questions and your bank will automatically consider your case for a loan modification. What you may not know is that if any of these questions are not answered correctly, then you could be prematurely declined for the wrong reasons.

K&M Law has listed a few common mistakes homeowners make when they provide information to their bank:

1. Overstating their income to show the banks they are willing and able to afford the home.
2. Understating their income to show the bank they are in desperate need of a modification.
3. Not showing the bank enough of a hardship.
4. Providing the bank too much information.
5. Telling the bank they will walk away from the home if they are not offered a modification.
6. Threatening to sue the bank without cause or for minor infractions.

Before you start the loan modification process with your bank, you need to have a solid plan and you need to stick with it. The bank will scrutinize everything you say and everything you send over. Keep in mind, the bank is required to document all conversations you have with them. And, in some instances they will record conversation you have with them. There is very little room for mistakes. K&M Law is here to help you overcome the many obstacles that stand in your way.

What you need to understand is that a modification is defined as any change in terms of your existing loan. So, if your bank decides to increase your principle balance, increase your interest rates and/or your monthly payments, then you have been approved for a modification! This is one of the biggest reasons why homeowners are re-defaulting on their loan after they have already been modified.

K&M Law has helped thousands of struggling homeowners in California obtain a more affordable payment from their lender. Click Here to view sample modifications K&M Law has successfully been able to obtain from some of the nations smallest and largest banks.

The process of a delinquent account in the state of California are as follows:

30 – 60 Days Delinquent
Countless collection calls from your lender.
NOI – Notice of Intent to Foreclose.

Day 1
Notice of Default is filed with the county recorder.

Within 10 business days
Mail Notice of Default to borrower address

Within 1 month
Mail Notice of Default

After 3 months
Set Trustee Sale date

21 days before Trustee Sale date
NOTS – Notice of Trustee Sale will be posted on the door of the subject property.

Within 10 days from 1st publication of Trustee Sale
Send beneficiary request for property directions

14 days before Trustee Sale date
Record Notice of Trustee Sale

5 business days before sale date
Expiration of borrower’s right to re-instate the loan

Sale date
Property is sold to highest third party bidder or reverts to Beneficiary at public auction

The foreclosure time line could vary from one case to another. But, generally from the time the NOD is filed, it will take a minimum of 111 days before the property can be sold at the auction block.

Contact K&M Law to discuss foreclosure alternatives.

There may be several alternatives to help you stop foreclosure and allow you to keep your home. Below are some options to avoid foreclosure:

Reinstatement: Your lender may agree to let you pay the total amount you are behind, in a lump sum payment and by a specific date. This is often combined with forbearance when you can show that funds from a bonus, tax refund, or other source will become available at a specific time in the future. Be aware that there may be late fees and other costs associated with a reinstatement plan.

Forbearance: Your lender may offer a temporary reduction or suspension of your mortgage payments while you get back on your feet. Forbearance is often combined with a reinstatement or a repayment plan to pay off the missed or reduced mortgage payments. K&M Law can negotiate a forbearance plan for you.

Repayment Plan: This is an agreement that gives you a fixed amount of time to repay the amount you are behind by combining a portion of what is past due with your regular monthly payment. At the end of the repayment period you have gradually paid back the amount of your mortgage that was delinquent.

Loan modification: This is a written agreement between you and your mortgage company that permanently changes one or more of the original terms of your note to make the payments more affordable.

Depending on your circumstances it may not be possible to keep your home. But there are still options available to you including to prevent foreclosure:

Short Sale or Short Payoff: In cases where you sell your home for less than you owe, your lender may accept the lesser amount.

Deed-in-lieu of foreclosure: Your lender may accept the voluntary transfer of the title of your home back to them in exchange for cancellation of your mortgage debt. This approach may have tax implications for you, and it may not be possible if there are other liens against your home.

Assumption: This option permits a qualified buyer to take over your mortgage debt and the mortgage payments, even if the mortgage was originally non-assumable.

Be aware that some workout options are not made available by your servicer or investor. And, some workout options could affect your credit rating more than others. Foreclosures, short sales and deeds-in-lieu of foreclosure are considered “not paid as agreed” and may have serious negative impact on your credit score. That is why it is important for you to get help early to try to prevent further damage to your credit.

Foreclosure is a legal process by which the lender takes back ownership of mortgaged property (for example, a home) and sells it because a loan is in default, or in other words, because the owner is delinquent with the mortgage payments. The process of foreclosure is different in every state. In some states, a non-litigated foreclosure can take as little as 32 days. In other states, it’s a process that could take more than a year. In either case, the results can be devastating:

*You would lose any equity in your home. If you have equity in your home or your home has increased in value since your purchase, a foreclosure could mean the loss of thousands of dollars in equity.

*Your credit score would take a big hit. With a foreclosure on your credit history, you will have future difficulty borrowing money, renting an apartment, and perhaps even getting a job.

*Finding a new home will be a challenge. Not only must you find some place that’s affordable, you’ll also need to come up with a rental deposit, which the landlord could drastically increase, based on your credit rating.

*The interest rates on your credit cards could increase as the credit card companies view you as an increased risk.

*You could even be hit with a bill for taxes on the amount of mortgage that the lender was never able to recover from the sale of the property.

Call us to find out what options are best suited for your situation.

]]> http://www.kmlawcorp.com/foreclosure-alternatives/feed/ 0 http://www.kmlawcorp.com/km-law/ http://www.kmlawcorp.com/km-law/#comments Sat, 08 Oct 2011 09:01:11 +0000 admin http://www.kmlawcorp.com/wordpress/?p=57 Located in Costa Mesa, California, K&M LAW, A Professional Law Corporation is an advocate for the rights of consumers and residents in California. K&M LAW primarily handles cases involving Real Estate Law and Mortgage Loan Modifications & Restructuring. The firm has also established partnerships with seasoned attorneys across California to form a strong legal network to practice all areas of law.

What You Can Expect

K&M LAW will offer you free consultation to help you determine the best solution for your situation. Once all the facts have been assembled, your case will be forwarded to the appropriate legal advocate to take your case to the next level.

With legal support, you will have the leverage necessary to give you the best possible chance of obtaining desirable results.

Personal Service

At K&M LAW, clients come first. The firm offers flexible scheduling to accommodate people’s busy schedules. K&M LAW understands you may not have the time to come into the office, and with today’s technology, the entire process can be done without ever meeting an attorney face to face.

To schedule your evaluation, contact the office by calling 714-432-7733. K&M LAW, is open 9 a.m. to 5 p.m., Monday through Friday with weekend and evening appointments available.

K&M LAW, A Professional Law Corporation
2706 Harbor Blvd, Suite 200
Costa Mesa, CA 92626
Telephone: 714-432-7733

K&M LAW, A Professional Law Corporation is located in Costa Mesa, California, and represents clients throughout California, including Santa Ana, Irvine, Newport Beach, Huntington Beach, Mission Viejo, Aliso Viejo and throughout Orange County and Southern California.

Knowledge of the law

The laws in America, and California, are extremely complex, and ever evolving.  By hiring an attorney you are hiring someone experienced and knowledgeable to present your case.

Experience

The legal knowledge attorneys gain by years of study and practice gives them the understanding of procedural rules and norms of courtroom conduct. Attorneys have the education and experience to persuade a judge or jury that your side should prevail.

Objectivity

Hiring an attorney brings an objective, third party view to bear on the law, facts, and history of your case. No party to a case will ever be able to objectively step away from the case and evaluate free and clear of their personal bias and emotional investment in the case. A qualified, competent attorney not only can but will take an objective tack on every case brought to his office.

Contact K&M Law today to get a free consultation.

What is litigation? One party hires an attorney and files a lawsuit requiring the other party to also hire an attorney and defend the lawsuit. Anyone who has ever been involved in litigation knows that it is expensive, time consuming, emotionally draining and unpredictable. With litigation, until a judge or jury decides who is right and who is wrong, you are never certain of the outcome. Alternative dispute resolution, including mediation, has been gaining popularity as a method to remedy some of the shortcomings of litigation. However, there is some confusion by the general public as to the mediation process.

Mediation

Mediation is generally conducted before a single mediator who does not judge the case but helps facilitate a discussion and eventual resolution of the dispute. Mediation has most recently been re-discovered across the country, and has been found to be effective in resolving approximately 75% of all cases and greatly reduces the trial docket of courts. Mediation enjoys such a great success rate partly because the parties are brought together in a neutral environment where they can freely and confidentially present their position in front of a neutral third party who then attempts to limit the issues and put them in perspective. Participants often feel much better after having an opportunity to get things “off their chest”, and also benefit from hearing the other party’s point of view, because as they say, “there are always two sides to a story.”

Mediation can be used for literally any kind of dispute and there is no need to wait until a dispute results in a lawsuit and is ordered to mediation by a judge. Pre-suit mediation is becoming more widely accepted as a sensible way of resolving disputes before they turn into litigation, especially when the parties are motivated to resolve their dispute without the extra incentive created by a lawsuit. Besides being confidential and non-binding, mediation is relatively quick and inexpensive when compared to actually litigating a dispute. It’s important to note that most mediators are attorneys.

Contact K&M Law today to get a free consultation.

Below are some helpful links and resources to free information to help you understand what laws and regulations are on your side.

Laws & Constitution

• California Law
• Code of Regulations
• State Constitution
• Statutes

Research

• Berkeley Law Library Catalog
• Government Websites
• Hastings College of the Law Library
• Legislators & Districts
• Research, Laws, & Publications
• Washburn University School of Law

We know how difficult it can be finding the right firm to handle your case for you, and that is why our friendly and trained staff at K & M Law is here to listen to you, discuss your needs and help you find the right lawyer for your case.  K & M Law, APLC also has a very strong referral service. If K & M Law can’t help you with your case, then we will refer you to one of our qualified affiliates.

Below are  some of the few areas of law that K & M Law and affiliates can help you with:

Bankruptcy
Business Law
Criminal Defense
Debt Settlements
FDCPA – Credit Harassment
Foreclosure Avoidance
Mortgage Law
Personal Injury
Real Estate Law
Short Sale

If you need any of the services above, call us now to discuss your case with one of our trained staff.

K & M Law, APLC
Telephone: 714-432-7733