If you are interested in getting a loan modification then there is a good chance you are suffering from some serious financial problems. Most likely, there are a number of options available to you, including foreclosure, a short sale and other mortgage defaults. What many people are unaware of are the implications each of these will have on their credit rating. Pretty much any financial transaction you make will have some impact on your credit, either good or bad, and so people who are homeowners or looking to take out or adjust a loan, must pay special attention to these impacts.
Foreclosures
According to some analysts, foreclosure activity jumped 7 percent from June 2009 to July 2009 and is up 32 percent from just one year ago. Basically, the national statistics suggest that one in every 355 households with a loan got a foreclosure filing in July 2009. Those numbers are not just historic; they are frightening and make loan modifications an absolute necessity for anyone in danger. A foreclosure will have a terrible impact on your credit score; and, depending upon how long it takes to get the situation straightened out, that negative impact could last quite a while.
Short Sale
A short sale is when the homeowner sells the property, but the proceeds from the sale fall short of the balance owed on a loan. People who own homes that have lost equity often fall into this category. A short sale can have a major negative impact on your credit rating, and it can still leave you in debt. If the lender decides not to accept the officer, it could cause all sorts of problems.
What many people do not understand however, is that it is not necessarily the foreclosure or even a short sale that negatively affects your credit. The actual number of months that the borrower has been delinquent on their payments is going to cause your credit score to drop. Simply walking away from your home will have an even harder impact because you made no attempt to talk to a lender to try and solve the problem. TransUnion, one of the major credit reporting agencies, published some figures stating that in August of 2009, the number of mortgage holders who are 60 days past due on their payments increased for the tenth straight quarter.
Loan Modification
People suffering from serious debt problems and facing potential foreclosure should contact a California loan modification attorney for answers. A loan modification attorney can help you work with your bank or lender to get the best loan modification possible, or just to see if you are indeed eligible for a loan modification. With a loan modification, you can stay in your home and avoid a foreclosure, as well as protect your credit rating. During such harsh economic times as these, your loan modification attorney could be your best friend because he or she can help protect you against the economic factors damaging other people’s lives. If you have an experienced California loan modification attorney, you are on the right track to protect your home and your future.
1 Comment
Comment
Sep 30,2009
This is a great article and I couldn’t agree more! The information here should be shared with anyone with an interest. This is important and we need more light on the topic so that people can understand what this is all about. Feldman Law Center is a Loan Modification attorney
by: Feldman Law Center
If you need help understanding your option of taking advantage of thehome 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 modificationwill be what determines the amount of time you have in your home. If you are eligible you should act as soon as possible.
