How To Avoid Foreclosure

Moss Sidell

How To Avoid Foreclosure

Sidell Law Offices, P.C. knows that every homeowner should research and know how to avoid a foreclosure. Different states have different timelines and procedures. Sidell Law Offices, P.C. is aware that the end results of foreclosures are pretty much the same in all states, however – the key is to act early rather than waiting until things have escalated past the point of no-return.

Sidell Law Offices, P.C. explains that many homeowners don’t realize that they can take steps to avoid foreclosure even before they miss a single payment. In the past, lenders were slow to open discussions until the account was already delinquent. With more and more mortgages going into default, however, most banks are willing to negotiate terms before the situation becomes critical explains Sidell Law Offices, P.C.

There are several ways to forestall foreclosure

The first is to ask for a forbearance. This is simply extra time to make up your payments, and is a great option if you just encountered a little hitch in your finances such as unpaid leave due to a medical or family emergency, or a gap between jobs recalls Sidell Law Offices, P.C.

In some cases (especially if your mortgage payment is very large) the bank will allow you to divide the overdue payments and add a small portion to each month’s bill until it is caught up. Alternately, they may let you simply add the payment to the end of your loan and pay it then recognizes Sidell Law Offices, P.C.

If you financed your home with an adjustable interest rate when rates were low, or a fixed rate when they were high and climbing higher, a lender may approve a loan modification that reduces your payments by lowering your interest rate states Sidell Law Offices, P.C. An arrangement may also be negotiated to have the life of the loan extended, so the total amount due is spread over a longer time period making your payments lower.

If you can’t make up your missed payments, you may need to consider getting out from under your home loan. You can sometimes sell your home before it goes into foreclosure – this is a great option if you have a buyer and some equity that will let you come out ahead or at least break even goes on to explain Sidell Law Offices, P.C. If you owe more on the home than it is worth (called an upside down mortgage) you may still be able to get the lender to approve a short sale, meaning they agree to let you sell the house for less than you owe and call it even without coming after you for the balance recognizes Sidell Law Offices, P.C.

Sidell Law Offices, P.C. knows that in some cases  your lender can be convinced to let you sign the deed back to them and walk away owing nothing (a deed-in-lieu of foreclosure) – this is a last ditch effort, however, as the bank doesn’t want your home – they’d rather have the payments.

Knowing how to avoid foreclosure can save you from the humiliation of having your home simply taken. Sidell Law Offices, P.C. knows that the best path is to find an attorney familiar with real estate law who can help you work your way through the legalities and find a solution that works for you.

Loan Modification Programs

Moss Sidell

Loan Modification Programs

The Obama Administration´s Plan

Today, lending institutions are more willing to employ mortgage modification tactics as a means of avoiding foreclosure thanks to the Obama Administration’s loan modification program.

Sidell Law Offices, P.C. sheds light that this program opens the doors for those with financial hardships that make them unable to pay to seek a loan modification. The program is financially backed by the federal TARP funds program so all lenders are able to participate in the venture. The program is known as the Home Affordable Mortgage Program (HAMP).  This presents an option to re-open the channels of proper payment explains Moss Sidell of Sidell Law Offices, P.C.

This program is also multifaceted and can cover other hardship scenarios such as paying for a mortgage that is currently more than the value of a home states Sidell Law Offices, P.C. Again, in the past there were no options. Today, the options of modifying the loan exist. If a borrower doesn’t qualify under a HAMP modification, several banks have their own in-house modification programs, explains Moss Sidell.  Sidell Law Offices, P.C. finds that it is critical to appoint a lawyer to handle your modification plans. Some may balk at this notion, but they really should take hiring an attorney very seriously explains Moss Sidell.

Loan Modification Programs

Financial hardships

Attorney Moss Sidell of Sidell Law Offices, P.C. knows that most people’s financial situations may have changed; they may be experiencing medical hardships; or they may be dealing with divorce or a death in the family among many other unforeseen circumstances.

Moss Sidell of Sidell Law Offices, P.C.  finds that as a result, you may be finding yourself in a position where it is difficult to pay your mortgage. While most lenders will be willing to work with a borrower on the short term, as missed payments grow in number and the loan heads towards default, the lender will usually respond with the last resort available to you explains Moss Sidell of Sidell Law Offices, P.C. They will seek to foreclose on the property.

Yes, financial hardships do happen and they often happen unexpectedly points out Moss Sidell of Sidell Law Offices, P.C. Moss Sidell of Sidell Law Offices, P.C. knows this places homeowners in the unenviable position of not being able to stay on top of their monthly mortgage obligation.

Again, such a scenario is a serious one since it raises the specter of imminent foreclosure further explains Moss Sidell of Sidell Law Offices, P.C. This is unfortunate because while someone may be unable to make a particular monthly mortgage payment, the ability to pay a lesser monthly amount may be feasible. This is usually where refinancing comes into play points out Sidell Law Offices, P.C.

Hardship Letter

When Moss Sidell of Sidell Law Offices, P.C. submits your file for a loan modification approval, the lender wants to know what happened to cause your hardship. This letter needs to be strong, heart-felt and convincing.

If you have any documentation to support your hardship, it must be included with your hardship letter.

Completed budget worksheet:

Household budget: The lender wants to ensure that if they were to modify your loan, you will be able to afford the loan based on the new terms explains Moss Sidell of Sidell Law Offices, P.C.

Moss Sidell of Sidell Law Offices, P.C. will provide you with a budget worksheet that will need to be completed in full detail.

– Most recent two (2) months pay stabs for each client

– Most recent W2’s for each client (or Profit & Loss Statements if self-employed)

– Last two (2) years tax returns ( Must have all schedules if self-employed or have rental income )

– Most recent two (2) months bank statements (with all pages)

– Mortgage coupon and correspondence ( taxes and Ins., HOA fee )

– A current utility bill

But, what happens if the lender is unwilling (or unable) to approve a refinancing request?

In the past, there were very few options available. If you were unable to refinance your original loan, you were bound to the terms and conditions of the mortgage contract. That means if you fell into default, your property would be foreclosed upon.

There was no way around this because even the lender had limited options. Banks cannot stay in business if they cannot recoup what they initially lent to borrowers states Moss Sidell of Sidell Law Offices, P.C.

As a result, they would initiate foreclosures to regain revenues that they were not receiving due to defaults. The borrower had few options other than to go along with the foreclosure or engage in a short sale.

A short sale refers to selling a home for less than what is owed on the mortgage. While the homeowner could reduce the amount of money owed, a large debt would still remain recognizes Moss Sidell of Sidell Law Offices, P.C. This is often not the most enviable option to take part in. Today, there are more options available and many are looking towards mortgage modification strategies as a way out of their current situation.

Loan Modification Qualification by Moss Sidell

Moss Sidell

Loan Modification Qualification

Loan Modification – Do I Qualify?

For many people in today’s difficult economic times, the answer to this question is YES! The problem is, with the overflow of information and the complex programs available to people today, it may seem almost impossible to know if you qualify for a Loan Modification, and if you do, what it is exactly that you qualify for.

That’s where Sidell Law Offices, P.C. comes in. Sidell Law Offices, P.C. specializes in providing exactly what you are looking for, information. And the best part, it costs you nothing to find out if you qualify! Sidell Law Offices, P.C.  knows you’ll be happy you did. Sidell Law Offices, P.C. is an honest law firm with answers to  all of your legal and financial questions. If you choose to engage Sidell Law Offices, P.C. as your attorney, they can help you by taking on your case and pursuing a loan modification for you. It is completely up to you. The first step towards changing your situation is filling out the necessary forms correctly.

Sidell Law Offices, P.C. also provides you with up-to-date and accurate information and loan modification advice so you can make the right decision. Here are some questions you will find answers to: What is a home loan modification? Do I qualify? What are loan modification requirements ? What is the What is the HAMP Loan Modification plan? What about making home affordable?  What other programs are available at banks to help you out of the mortgage mess?

Sidell Law Offices, P.C. – Mortgage Modification Explained

Loan modifications come in different forms but quite frequently they involve the reduction of mortgage’s interest rate for a specified period of time so the homeowner can continue to make payments and stay in the home. Loans can also be modified so they have a longer amortization term (e.g. 40 year instead of 30 year) which will cause the payments to decrease expalins Sidell Law Offices, P.C. Principal writedowns are rare, but they do indeed happen where the bank actually writes down some of the principal amount.  These principal writedowns may become even more commonplace soon, thanks to some new incentives being added to the HAMP program that were just recently announced.

Sidell Law Offices, P.C. knows that a majority of the home loans needing modifcation today are conforming mortgage loans made by big banks such as CitiMortgage, Countrywide, Household, IndyMac, GMAC, JPMorgan Chase, Wells Fargo, Washington Mutual, Wachovia and Bank of America and based on Fannie Mae and Freddie Mac guidelines. Act now since time is really not on your side. Get Started Now!

Loan modifications used to be reserved for borrowers whose mortgages became delinquent because of job losses, divorce proceedings, or illness, but today they are also open to those individuals who are suffering in the aftermath of adjustable rate mortgages skyrocketing and placing the monthly payment beyond the means of the borrower explains Sidell Law Offices, P.C. Even if you have attempted to work with your own lender in the past and have come away from that experience with a less than positive experience, Sidell Law Offices, P.C. can help. Understanding the plight facing homeowners today and the very real threat of foreclosure, legal assistance during the process of applying for a loan modification is essential in the attempt to make the lender sit up and listen and provide the best possible solution for any homeowner before it is too late sheds light Sidell Law Offices, P.C. Attorney Moss Sidell has helped hundreds of homeowners with loan modifications successfully over the last three years in Massachusetts and Rhode Island.  Do not hesitate to contact us so we can connect you with Moss Sidell today who is well versed in the field of loan modification and who will save your budget and home. Sidell Law Offices, P.C. guarentees that the assistance you receive is fast, concise and confidential.

Sidell Law Offices, P.C. can be reached at 1-877-74-LOANMOD or at http://www.sidelllaw.com.

What is a Hardship Letter? by Moss Sidell

Moss Sidell

What is a Hardship Letter?

A Hardship letter is something most Mortgage Companies will require to consider you for a “Work Out”. This is your opportunity to appeal to them to give you another chance. The hardship letter should not be used to complain to what they have done or not done to make your situation worse. This letter must be honest and represent the facts clearly. It must prove to them that the situation that caused you to fall behind was temporary and you are now in a position to make your payments on time. You must also have a legitimate excuse for falling behind… financial problems in itself would not be an adequate excuse. Loss of a job, death in the family or an illness would be an acceptable reason to fall behind on your Mortgage temporarily. Sidell Law Offices, P.C. has many examples of letters that the Mortgage Company is looking for. Remember. The hardship letter is only one piece of the workout. You still need to prove many other things to the Mortgage Company before they will approve you for a Loan Modificationor a Repayment Plan explains Sidell Law Offices, P.C. Please contact Sidell Law Offices, P.C. for a free consultation of your case.  Sidell Law Offices, P.C. can be reached at 1-877-74-LOANMOD or at http://www.sidelllaw.com.

What Constitutes a Hardship?

Lots of people think a hardship is based solely on financial matters, and that’s not necessarily true. Just about anything that makes it difficult for you to continue making a mortgage payment might qualify you for a hardship explains Sidell Law Offices, P.C.

Sidell Law Offices, P.C.  knows that the one thing that a bank does not want to see is a homeowner who wants to walk away simply because the home is no longer worth the amount the owner paid for it. While being upside-down is one of the qualifications for a short sale, a bank is under no obligation to grant the short sale solely on that basis states Sidell Law Offices, P.C.

Think back to when you took out the loan and what your life was like then. Has it changed since then? If your situation is unchanged, the bank might say you can afford to stay in your home at your present payment level goes on to explain Sidell Law Offices, P.C. If your situation has changed, here are some examples that may qualify for a hardship:

*Unemployment

*Reduced income (furloughs, new job, partner’s loss of job, pay cut)

*Illness or medical emergency

*Job transfer (voluntary or involuntary)

*Divorce, separation or marital difficulties

*Exotic mortgage terms (an adjustable-rate loan)

*Military service

*Death in the family

*Incarceration

*Increased expenses and excessive debt

*Unexpected repairs or home maintenance

Sidell Law Offices, P.C. – The Basics Behind a Hardship Letter

When Sidell Law Offices, P.C. initially interviews sellers who want to sell on a short sale, they ask the sellers to describe their hardship. Sidell Law Offices, P.C. knows that agents who do a lot of short sales can sometimes become a little insensitive because they are focused on the statistics. For example, when a seller says she is getting divorced, it’s possible that my eyes might light up and I’ll blurt out, “That’s fabulous.” But then Sidell Law Offices, P.C. realizes how that comes across, which is not at all in the way he intended it. It’s good to be getting a divorce and trying to do a short sale or loan mod because relationship difficulties generally meet bank guidelines. It’s not fabulous that the parties are splitting up.

In your hardship letter, you want to explain 3 things:

*How you got into your present situation

*What you have done to try to get out this situation

*Why your inability to pay the mortgage in the past may have improved recently

*Why this situation is permanent if you don’t see any realistic possibilities of improvement in the near term

Hardship Letter Mistakes

Sidell Law Offices, P.C. knows that writing a hardship letter is not a lot of fun. In fact, it can be downright depressing. Sidell Law Offices, P.C.  has found that many people have no idea how bad their lives have become until they start to write a hardship letter. Sometimes, seeing all those awful things in black and white is startling. Don’t be surprised if you cry. But don’t take a 90-degree turn and talk about how your life will improve suggests Sidell Law Offices, P.C.

Your life won’t improve. In fact, it will only get worse, especially if you are in denial about your compromised financial situation. The best way to write a hardship letter is to state the unadoring truth Sidell Law Offices, P.C.

Don’t share your hopes and dreams for the future with the bank. It’s none of the bank’s business. The bank doesn’t care about you or protecting your precious credit rating. In fact, if you’re on the brink of bankruptcy or headed to foreclosure, you’ve got a story the bank should hear. So, tell it. Be truthful.

What Else Goes Into a Hardship Letter?

You should put everything but the kitchen sink into a hardship letter and then, just for good measure, throw the sink in, too. Use numbers and percentages to explain loss of income or negative cash flow suggests Sidell Law Offices, P.C. Instead of saying you’re borrowing money to make the mortgage payments, disclose the dollar amount and source of that debt such as “I’ve borrowed $10,000 against my VISA card to make my payments over the past 6 months, and I have tapped my cards to the max.”  However, the hardship letter needs to be brief enough not to lose the attention of the reader, states Attorney Moss Sidell.

If your car needs maintenance or repair, if the cat has cancer and your vet bills are mounting, if your kids are starving to death on peanut butter sandwiches, and your fingernails are worn to the quick scrubbing other people’s floors for pennies a day because your mom has moved in with your family and needs round-the-clock medical care, put it into your hardship letter. Paint the worst picture that you honestly can and keep going downhill with it explains Sidell Law Offices, P.C.

Use simple words geared toward the education of a 6th grader. If you don’t feel sorry for yourself by the time you have finished, maybe you didn’t do the job right.

What Is Loan Modification And How Can It Help You by Moss Sidell

Moss Sidell

What is loan modification and how can it help you

 

What is loan modification is a question many are asking. These days, exploring one’s options for a mortgage loan modification are more important now than ever before recognizes Attorney Moss Sidell of Sidell Law Offices, P.C.

Moss Sidell of Sidell Law Offices, P.C. explains that a modification refers to a federal program designed to help people maintain their mortgage payments through altering the original terms and conditions of the loan, or through other programs set up by lenders should you not qualify for a federal program.

This is a never seen before move on the part of the federal government. It was developed due to the unprecedented crisis that is damaging the real estate market recalls Moss Sidell of Sidell Law Offices, P.C. This crisis has yielded more foreclosures than ever in American history.

Moss Sidell of Sidell Law Offices, P.C. knows that the issue of foreclosures in the United States is not going to disappear anytime soon. The number of foreclosures is on the rise because there are numerous economic factors that are contributing to the furtherance of the problem has found Moss Sidell of Sidell Law Offices, P.C.  Additionally, due to the robo signing scandal in the fall of 2010, many banks have held back on foreclosures, until recently, which created a tremendous log jam of foreclosures which will be accelerated by the banks over the next 12 months, stated Moss Sidell of Sidell Law Offices, P.C.

The facts are not deniable. More and more people are losing their jobs. Many people that were previously working full-time are now working part-time. Average salaries are dropping and small businesses are not earning the revenues they once enjoyed. On top of this, costs are going up such as gasoline, groceries, clothing and heating fuel. Moss Sidell of Sidell Law Offices, P.C.  knows this can make it incredibly difficult for people to pay their monthly mortgages or their yearly real estate tax. Without an option available to rescue them from such a distressed scenario, these people will lose their homes, sadly states Moss Sidell of Sidell Law Offices, P.C.

Additionally, there is another serious problem that is rearing its head in the near future. If the real estate market continues to decline, homes will be worth less than their mortgages goes on to expalin Moss Sidell of Sidell Law Offices, P.C. This could even further expand the number of foreclosures. That is why it is so critical that options such as a loan modification became available. For many, a loan modification is the only solution able to help people maintain the ownership of their residence.

What does a loan modification entail?

Moss Sidell of Sidell Law Offices, P.C. explains that on the most basic of definitions, a loan modification program alters the original terms of a loan so that it becomes easier for the homeowner to make payments. This does not mean that the debt is being forgiven or that the lender is being punished. It is actually a process that will help both the borrower and the lender equally.

Contrary to popular belief, when a lender forecloses on a home, the lender can actually lose a great deal of time and money on the process states Moss Sidell of Sidell Law Offices, P.C. Once a home is foreclosed on, homes in the nearby vicinity also lose a disproportionate amount of value, which could hurt the foreclosing bank on other properties that it may hold loans on in the area.

Banks and financiers are not real estate agents. They are not auctioneers. They would simply prefer to receive their payments and transfer the title as soon as the balance of the mortgage is paid in full. However, when a borrower falls into severe arrears, the lender does not have an option and must foreclose. Thankfully, a loan modification plan can reverse such a distasteful scenario recognizes Moss Sidell of Sidell Law Offices, P.C.

What components can be changed in the loan terms?

There are several including:

Lower the amount of the monthly payment. Moss Sidell of Sidell Law Offices, P.C. knows in most cases the homeowner is not completely unable to pay the mortgage. The problem is that the borrower maybe unable to pay the full amount of the mortgage as originally written. Moss Sidell of Sidell Law Offices, P.C. knows that by lowering the monthly mortgage amount, the borrower may be able to stay current on the loan and make regular payments.

Provide a lower interest rate that will make the loan more affordable to borrower. Moss Sidell of Sidell Law Offices, P.C. knows that many people struggle due to the significant fees associated with high interest rates. Specifically, many subprime loans are notorious for their high interest rates. Moss Sidell of Sidell Law Offices, P.C. points out that by lowering the interest rates, the ability to maintain timely payments on the mortgage might be made easier.

Stretching out the repayment schedule. Banks can stretch out the repayment schedule, known at the amortization period to up to 40 years, thus making the monthly payments much lower, states Moss Sidell.

Prior to the development of loan modification rules, none of these options were available to the distressed borrower. The borrower could ask for such terms but the lender did not have to comply with the request. Today, Moss Sidell of Sidell Law Offices, P.C. sheds light that the law mandates such modifications provided the borrower meets certain simple criteria. Those that qualify for the program should look into their options with the program. Often times when people try modifications on their own, their applications are mistakenly rejected by banks and this is where an attorney like Moss Sidell is able to cut through the red tape with the banks.  It may very well be the only thing that can help you keep your home.