A foreclosure loan is a process where a company, group or person takes over your loan. If a person is in trouble with their mortgage, they are often approached by an entity offering help. Often times this entity will offer a foreclosure loan that works by making the mortgage current. In exchange, you pay the loan principle plus extra fees.
It is important to make sure you are dealing with a reputable company and avoid going through individual investors. A significant danger with this type of loan process is that if you sign away your home to an individual or company and you cannot qualify for a loan due to credit or payment, they will be entitled to your home. This is how many investors seek to acquire property at a low price. There are, however, honest companies out there that can help.
The term “loan modification” is in reference to adjusting your present mortgage. If you can make your normal payment at the present, but can’t seem to get caught up with the amount past due, we will negotiate with your lender to fold past due amounts. If you are unable to make your current payments, we can negotiate to extend your loan over a longer time frame. Loan modification will change your existing agreement and give you a fresh start, bringing your account immediately up to date.
Your current loan may be readjusted by modification or restructure. If you are currently able to make your regular payment, but you can’t catch up with the past-due amount, we may be able to add any past-due amounts, including interest and escrow, into the unpaid principal balance. This new modified principal balance amount will be recalculated over a new period of time to determine new monthly payments. If you are unable to make payments at this rate, we will negotiate with your lender to extend your loan for a longer period of time, modifying you payments to a more affordable level. A Loan Modification or Loan Restructuring will change your existing mortgage note and give you a fresh new start. This option will bring your account up to date immediately.
Almost every state has a unique foreclosure process. We advise you to consult with an attorney that is familiar with the laws in your state, but to preview the basic steps in your state please click here.
Mediation is an alternative method to help parties resolve disputes by agreement with the help of trained mediators. Mediating a foreclosure action has its advantages. It is fast, inexpensive, and offers a flexibility that more formal processes do not. Home foreclosures impact both the homeowner and the lender. Homeowners do not want to lose their homes and mortgage lenders do not want to be in the real estate business. Both sides may benefit through foreclosure mediations.
In January 2009, a new state-supported mortgage foreclosure mediation program was started to help the thousands of New Jersey homeowners facing foreclosure throughout the state. It was announced by Gov. Jon S. Corzine, Chief Justice Stuart Rabner and Attorney General Anne Milgram.
The program is a joint effort of the Judiciary, the Office of the Attorney General, the Housing Mortgage Finance Agency in the Department of Community Affairs, the Public Advocate, the Department of Banking and Insurance, and Legal Services of New Jersey. The foreclosure mediation program gives eligible homeowners access to housing counselors, attorneys and court-trained mediators who may help homeowners in foreclosure remain in their homes.
The distressed homeowner in Florida, and throughout the country, often has several options to consider, which may include a mortgage adjustment, refinance through a government-insured program (e.g. Hope for Homeowners), deferral, etc. Where those options are not viable, the distressed homeowner usually has to decide whether to attempt a short sale or go through a foreclosure.
September 7th, 2009 at 9:26 am
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