贷款修改之前你必须知道的三件事

THREE THINGS YOU MUST KNOW BEFORE YOU DO A LOAN MODIFICATION

Many Homeowners in California have experienced an unprecedented loss of value in their homes. The main cause of this “mortgage crisis” or “mortgage meltdown” is in my humble opinion is the direct result brought by unscrupulous mortgage brokers and borderline reckless behaviors by the lenders.

Banks are receiving bail out money, and many of the loan brokers who caused the problem have now re-invented their job to become specialists in loan modification – helping the people they put into this problem to modify their mortgage loans.

What is absolute worse is to have the same mortgage broker that obtained the loan for you to now “help” with your loan modification.

The following are 3 essential things you must know before you attempt to do a loan modification.

First, most reputable Loan Modification companies will not charge an up front fee. Moreover, only law offices may legally charge the fees upfront. Second, contrary to some mortgage broker’s assertion, loan modification may not be the best solution for you. Lenders have not been willing to forgive the entire underlying secure loan despite the passage of Home of Homeowner’s Program since July 2008. Therefore, at times, you many only have a temporary reduction in interest rate, or worse an extended loan repayment period to 40 years which by default will decrease your monthly payment. Lastly, even if you are able to successfully obtain a modification that is good and acceptable within your budget, a loan modification only deals with your primary residence. It does not deal with other devalued property you may have and it certainly does not deal with other debts like credit cards or personal loans.

There are however other options that may be more advantageous to you. For example, through our bankruptcy court system right now, many homeowners may be able to obtain a complete elimination of their second or third mortgage. A complete elimination of your second and third mortgage through an experienced attorney coupled with a modification of your first mortgage can exponentially benefit your situation.

Attorneys in Law Offices of Steven P. Chang are highly specialized in helping client with mortgage and debt related issues using all of the available strategies. The attorneys and staff have extensive experience as bankruptcy and real estate law practitioners.