Loan modification with an Attorney can help If you are behind in your mortgage payments or have received a notice of default (NOD) you do not have to file bankruptcy to avoid foreclosure if you can’t afford your lenders demand for reinstating the loan. We have stopped foreclosure with a loan modification the day before the sale date on several occasions. Recently we had a client who was declined on two different occasions for a loan modification, once on her own and once with a loan modification company that was unsuccessful. After arguing back and forth with the lender and the threat on filing bankruptcy we were able to get a loan modification that saved our client from foreclosure. The loan was serviced by Home EQ and we are happy to announce they agreed to slash the interest rate from 8.25% to 4.00% fixed for five years. They originally insisted on $12,000 to reinstate the loan but that was impossible for our client. After negotiating up to the day before the sale Home EQ accepted $5,000 to reinstate the loan and forgave the difference. This would be literally impossible to do on your own as the lender is collecting a secured debt. Does it help that the home loan was 100% LTV? Not really when the lender considers the loan non-performing after a notice of default is sent and the home is in foreclosure. In addition, a threat of chapter 13 to a lender holding a 2nd mortgage on a home and only seeing a nickel on a dollar may be enough to get them to forgive a large portion of the balance as well. Lenders will do whatever they can to collect a secured debt and foreclose on a property. We believe going BK is the last resort; however we are capable of filing bankruptcy to stop the foreclosure process when found necessary.

A Law Office that specializes in stopping foreclosure with a loan modification is much different than a Bankruptcy Attorney or Attorney based Loan Modification Company. If you use loss mitigation company to stop foreclosure you will get nothing more than the bank has offered you already and you may lose your home before you know it. If a loan modification company tells you they can freeze your loan and to pay them and not your lender you should call an attorney. There are several loan modification and stop foreclosure scams out there as ex loan officers are doing whatever they can to convince home owners they can modify their loan and stop foreclosure. If you are struggling with your mortgage payments and facing foreclosure get legal help and hire an Attorney that specializes in negotiating with lenders and loan servicers. A loan modification can save your home and get you payments you can afford long term by getting the lender to lower the interest rate, principal balance, or both. Most loan modifications directly from your lender are short term solutions to get the loan to perform so they can sell it and turn a profit. A lawyer can negotiate a new 30 year fixed loan at a reduced interest rate with your lender and offer you a long term solution to save your home from foreclosure.

We have helped stop foreclosure simply by calling the lender and asking for an extension to negotiate a loan modification to stop the foreclosure process. If the lender sees you are represented by an Attorney they take you seriously. If you are in a bad mortgage or faced with a hardship, seek a qualified Attorney who can get you out of trouble. If you do not want the home any longer a loan modification may change your mind if an Attorney can get the lender to significantly reduce payments or principal balance making the mortgage payments affordable. If you have tried to sell your home but owe more than it’s worth a short sale or deed in lieu may be the answer. An Attorney can make sure the lender does not come after you for a deficiency judgment down the road. In addition, all documents you receive from your lender advise you to consult an Attorney before signing.

Beware of Foreclosure Scams

There are many foreclosure scams these days offered by companies trying to take your home when you are facing foreclosure. Foreclosures are increasing nationwide, and so are scams that promise to “rescue” homeowners from foreclosure. What these scams do is take your money, ruin your credit record, and wipe out any equity you have in your home.

Foreclosure con artists take advantage of people who have fallen behind on their mortgages and face foreclosure. Con artists know that people in these situations are vulnerable and likely to be desperate. Potential victims are easy to find: mortgage lenders publish notices before foreclosing on homes. After reading such notices, con artists approach their targets in person, by mail, over the telephone, or by e-mail. They advertise their services on Web sites or publications. They often refer to themselves with titles that sound official, such as “foreclosure consultant”, ” Loss Mitigation Specialist”, “Loan Modification Expert” or “Mortgage Consultant,” and market themselves as a “foreclosure service” or “foreclosure rescue agency.” In many cases they use terms such as “Attorney based”, “Attorney assisted”, “Attorney backed”; ask to speak to the Attorney and check him out with the State Bar Association.

Your mortgage lender - an Attorney or any legitimate financial counselor - can help you find real options to avoid foreclosure. If someone offers to negotiate with your lender and offers to arrange to stop or delay foreclosure for a fee, carefully check his or her credentials, reputation, and experience. To protect yourself, follow the recommendations contained in this Consumer Advisory.

WATCH OUT FOR FORECLOSURE RESCUE SCAMS

Lease-Back or Repurchase Scams - Be very suspicious if someone offers to pay your mortgage and rent your home back to you. This scheme often involves signing the deed to your home over to the con artist. The con artist may promise to sell your home back to you, but this may be very difficult, if not impossible, under the terms of the contract.

Signing over the deed gives the con artist the power to evict you, raise your rent, sell the house, or steal the equity you have in your home. You will still be responsible for your mortgage, so if the con artist stops paying it, your lender would have the right to foreclose on your home, and the foreclosure and any other problems would go on your credit record.

Refinance Fraud - Look out for people posing as mortgage brokers or lenders and offering to refinance your loan so you can afford the payments. Con artists may trick you into signing over the ownership of your home by saying that you are signing documents for a new loan.

Signing over the deed to your home exposes you to the dangers described above. Even if you are a victim of fraud, you could still lose your home.

Bankruptcy Schemes - Several scams attempt to abuse the bankruptcy laws. For example, a con artist may ask you to give a partial interest in your home to one or more persons. Each holder of a partial interest can then file bankruptcy, one after another. The bankruptcy court will issue a “stay” order each time to stop foreclosure temporarily. However, the stay does not excuse you from making payments or from repaying the full amount of your loan. In another kind of scam, a con artist may offer to obtain refinancing or negotiate a payment plan with your lender. If you may make payments to the con artist, he or she may keep the money rather than pay the lender on your behalf. The con artist may even file a bankruptcy case in your name, without your knowledge, as a part of the scam.

Bankruptcy laws provide important protections to consumers. Scams can only temporarily delay foreclosure, and they may keep you from using bankruptcy laws legitimately to address your financial problems. Signing over ownership of your home, or even partial ownership can result in serious financial harm.

HOW TO PROTECT YOURSELF FROM SCAMS

Know what you are signing. Read and understand every document you sign. If a document is too complex, seek advice from a lawyer or an approved, trusted financial counselor. Never sign documents with blank spaces that can be filled in later. Never sign a document that contains errors or false statements, even if someone promises to correct them later. It’s always a good idea to have a trusted Attorney review everything you sign. Just remember when you signed your confusing loan documents and the Loan Officer or Notary told you not to worry.

Get promises in writing. Oral promises and agreements relating to your home are usually not legally binding. Protect your rights with a written document or contract signed by the person making the promise. Keep copies of all contracts you sign is critical and having an Attorney review and make necessary changes before signing is even more important.

Make your mortgage payments directly to your lender or the mortgage servicer. Do not trust anyone else to make mortgage payments for you.

Be very careful about signing over your deed. Foreclosure scams often require you to sign over ownership of your home to a con artist or another third party. Never sign over your deed without getting the advice of your own lawyer, financial advisor, or other independent person that you know you can trust. Understand the terms of the deal you are making. By signing over your deed, you lose your rights to your home and any equity built up in the home.

Make sure and report suspicious activity to the Federal Trade Commission and to your State and local consumer protection agencies. Reporting con artists and suspicious schemes helps prevent others from becoming victims.