ST GEORGE UTAH
LOAN MODIFICATION
 
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Attorney David Altman was the founder of Lawyers Loss Mitigation Services, LLC in Los Angeles, California, one of the most successful lawyer driven loan modification companies in the country.
At a time when the typical loan modification company’s rate of success was one out of four at best and often much worse, Lawyers Loss Mitigation Services had an unmatched success rate of achieving loan modifications in nearly ninety percent of its cases, notwithstanding the fact that most of our clients were referrals from other attorneys or firms who had been unsuccessful in obtaining loan modifications for those clients.
All loan modification programs require a verifiable hardship and an inability to meet current or imminent future payments; new government incentives to lenders and services have made loan modifications more attractive to lenders and investors.
As a result, today a greater percentage of loan modifications are approved than at any time in the recent past. However, although it is possible for homeowners to submit their own loan modification applications and HUD offers free loan modification counseling services, the majority of loan modification applications are still being denied by lenders or investors.
With our experience and skill in this area homeowners can maximize their chances that their loan modification requests will be approved.
As both an attorney and a REALTOR®, David Altman has the ability and resources to handle loan modifications, list homes for short sales or even file bankruptcies when appropriate, so clients are always assured that they will receive the advice and counsel that is best for their unique situations.
With the wide variety of options we offer, at our law and real estate office we never lose a client because the client has chosen the appropriate course of action for the client's own best interests.
UTAH
FORECLOSURE AVOIDANCE OPTIONS |
The current U.S. real estate housing crisis has had a negative impact on Saint George Utah, Washington Utah, Hurricane Utah, Ivins Utah, Santa Clara Utah and Washington County Homes. The national financial crisis has caused stress and heartache for many Utah families. Foreclosure is a devastating financial challenge for Utah families and one that in many instances may be avoided. Options available to Saint George Utah families and surrounding areas residents for foreclosure.
The following is a brief overview of these solutions, including some of the more obvious pros and cons:
1. Reinstatement
A reinstatement is the simplest solution for a foreclosure, however it is often the most difficult one. The homeowner simply pays the total amount owed to the mortgage company to date. This solution does not require the lender's approval and will reinstate a mortgage up to the day before the final foreclosure sale.
PROS : Does not require the lender's approval.
CONS : Utah homeowners must be able to pay all missed payments, fines and penalties and any associated fees.
2. Forbearance or Repayment
A forbearance or repayment plan is when the St. George or Utah homeowner negotiates with the mortgage company to allow that homeowner to repay missed payments over a period of time. Typically homeowners make their current mortgage payment plus an additional payment of the portion of the missed payments they owe to their lender. Utah homeowners need to contact their lender and attempt to negotiate a payment plan that the homeowner can afford and the lender will accept. It is crucial that homeowners to stay current on their repayment plan.
PROS : Allows Utah homeowners to avoid a foreclosure, keep their homes and make back payments over time.
CONS : Utah homeowners must have the financial ability to pay not only their current mortgage, but also a portion of the missed payments owed. Some lenders will require a homeowner to meet certain criteria in order to qualify for forbearance or repayment plan.
3. Mortgage Loan Modification
A mortgage modification involves the reduction of any one or combination of (a) the interest rate on the loan, (b) the principal balance of the loan, (c) the term of the loan. These typically result in a lower payment to the homeowner and a more affordable mortgage.
PROS : Reduces the payment a homeowner is required to make on a monthly basis and may reduce the principal balance of the loan
CONS : Requires a homeowner to qualify certain requirements and will often require full documentation. Lender has to actively participate loan modifications.
4. Rent the Property
Assuming Saint George Utah homeowners have another place to live, they can rent their home and use the rental income to make the mortgage payments. Homeowners will need to make up the missed mortgage payments, fees, and penalties.
PROS : Allows homeowner to keep property indefinitely.
CONS : The issues that can arise with a rental property are many, and rent often may not cover the full cost of property ownership and maintenance.
5. Deed in Lieu of Foreclosure(aka: a friendly foreclosure)
A deed in lieu of foreclosure is the voluntary return of the property to the lender, with the lender's consent, thereby avoiding the foreclosure process. The homeowner must vacate the property. This option is for homeowners who have only one trust deed. Some lender may require homeowners to attempt to first sell the house with a licensed real estate professional.
PROS : In a successful deed in lieu, the lender may agree to release homeowners from a deficiency judgment and may offer cash for keys in exchange for returning the property in broom clean condition( i.e. Bank of America may offer up to $7,500)
CONS : Requires that a homeowner vacate the property and a deed in lieu may be reported to credit bureaus as a foreclosure.
6. Bankruptcy
Bankruptcy will temporarily stop the foreclosure process. A chapter 13 bankruptcy may allow Utah homeowner to pay any mortgage arrears over 3-5 years provided the homeowner is also able to make current payments. A chapter 7 bankruptcy may not save the homeowner's house but will eliminate most personal debts. Utah homeowners should consult a bankruptcy attorney to discuss this alternative to see if a bankruptcy is a viable option for their situation.
PROS : Does not require lender approval.
CONS: If a homeowner cannot afford their mortgage payment, a chapter 7 bankruptcy will only delay the foreclosure process but a chapter 13 bankruptcy will give the homeowner years to catch up on past due payments provided the homeowner remains current on payments after filing the bankruptcy. Bankruptcy is damaging to credit scores and can only be declared once every eight years.
7. Servicemembers Civil Relief Act
If an active member of the military is experiencing financial distress due to deployment and that homeowner can show that their debt was entered into prior to deployment, they may qualify for relief under the Servicemembers Civil Relief Act. The American Bar Association has a network of attorneys that will work with servicemembers in relation to qualifying for this relief.
PROS : If qualified, this will lower mortgage payments and all consumer debt payments.
CONS: Homeowners must be active military to qualify.
8. Short Sale
Utah homeowners who owe more than their property is currently worth can hire a qualified real estate agent to market and sell their property through a short sale negotiated with their lender. This typically requires the property to be on the market and the homeowner must have a legitimate and verifiable financial hardship to qualify. Hardship can be simply defined as a material change in the financial stability of the homeowner between the date of the home purchase and the date of the short sale negotiation, which hardship has made it impossible to pay current or prospective mortgage payments.
Acceptable hardships include but are not limited to: mortgage payment increase, job loss, divorce, excessive debt, forced or unplanned relocation, death or illness in the family and more.
PROS : A short sale allows the homeowner to avoid foreclosure and salvage some of their credit rating. This also
keeps foreclosure off the individual's public record, and in many cases will allow the homeowner to avoid a
deficiency judgment. Borrower may qualify for another mortgage in as little as 24 months (as opposed to five years
for a foreclosure).
CONS: Short sales can be a trying process in which a homeowner is best served by contracting with an experienced short sale real estate agent or an attorney to successfully close the sale.
This represents only a summary of some of the solutions available to homeowners facing foreclosure. Please call
me today for a free confidential evaluation of your individual situation, property value, and possible options.
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