Kevin Legal Advice

A new report from Harvard’s Joint Center for Housing Studies indicates that if there is to be any stabilization in the housing market, it will be at “…extremely low levels that will make the climb up all that more difficult.” Muting any of the recent news in the steadiness of new construction and sales are housing price declines, a record level of foreclosures, rising interest rates, and a shrinking job market. Summing up the study, Nicolas P. Retsinas, Director of the Joint Center said, “Although there are some signs of improvement or at least steadiness in new construction and sales, housing starts stand near 60+ year lows and any life in home sales is coming from distressed foreclosure sales, temporary first-time buyer tax credits, and low interest rates that moved higher in recent weeks.”

Sounding like they were trying to find anything at all possible to spin to the positive, the center was optimistic about the coming of age of the “echo baby boom”, counting on the largest generation in American history to “refuel demand for housing of all types”. Considering that the EBB’s are witnessing the meltdown firsthand, it’s hard to make a convincing argument that the collective will be urgently buying real estate any time soon.

Separately Roger Orf, CEO of Citigroup Property Investors, was calling for governments to force banks to sell their foreclosed properties in a process he dubbed “creative destruction”. Orf favors an immediate clearing of the deck in terms of toxic properties as opposed to the malaise of a gradual unwinding of assets.  Orf doesn’t expect fully functioning property lending markets to return before 2011, by when he hoped banks will have completed repair of their capital bases through a wave of real estate sales. The amount of damage to real estate prices as a result of Mr. Orf’s proposal is unknown but when the government forced savings and loans to sell their junk bond portfolios in the early 90’s prices dropped by up to 85% on bonds that were paying interest and backed with solid financials. In that instance, buyers simply stepped aside and let bond prices plummet to levels that carried no risk for the buyers.

What both reports signify is that the need for home loan modifications will continue for the next few years as prices either stabilize or drop and interest rates on mortgages continue to reset and recast. With a relatively small number of reluctant and extremely careful new homebuyers the lenders, servicers, and investors behind today’s mortgages could become much more interested in getting mortgage loan modifications completed, especially if a modification is the only way to generate cash flow from a property in a portfolio. While it’s unlikely that Mr. Orf’s proposition ever comes to pass, the foreclosure of properties will become less desirable if more buyers don’t materialize or if the value of REO’s at the banks continues to decrease.

With over six hundred completed loan modifications The Feldman Law Center proven home loan modification process can help homeowners to either avoid or stop a foreclosure proceeding. If you are struggling with your payments and worried about the possibility of foreclosure, call The Feldman Law Center at (800) 527 8497. Take the first step toward regaining control of your mortgage payments today.

The world of loan modifications is ever changing, and proof positive is the federal government’s ever-expanding role in influencing banks to offer loan modifications.  It was recently reported that the government is frustrated with the progress of their federal loan modification program, and are trying to influence major banks to increase the number of loan modifications for homeowners.  Of course, increasing the number of loan modifications means relaxing the standards which they are currently using to allow for mortgage loan modifications.Banks such as Bank of America, Citigroup, J.P. Morgan Chase and Wells Fargo were all summoned to a meeting in Washington, D.C. to discuss ways to improve the federal loan modification program, which was announced in February 2009.  The Obama Administration put a great deal of effort and hope into the program, but it has not yet produced the kinds of results people thought it would.  The administration’s goal is to complete 500,000 trial loan modifications, although some analysts fear this is far too optimistic.  The government has discussed ways to expand the program, including ways to simultaneously modify mortgages and home equity loans.  When President Obama took office earlier this year, the number of foreclosures was sky rocketing due in large part to the subprime mortgage crisis and the adjustable rate mortgages (ARMs) which were offered so rampantly.  As a result, millions of Americans were losing their homes and the government felt it needed to intervene.While the level of government involvement is new, loan modifications, are nothing new.  California loan modification attorneys have been helping people stay in their homes for years, by helping them get home loan modifications without government interference.  Millions of people throughout California have used California loan modification attorneys for their California home loan modifications because attorneys carry a special place in our current culture.  When a loan modification attorney calls a bank or lender, they get a much quicker response because they have the law on their side.  When people try to handle loan modifications on their own, they usually do not know what they are doing exactly and can make many mistakes as a result.The recent government programs have helped a few people, but since the banks all have huge bureaucracies and the federal government is one giant bureaucracy, people often get lost in process.  Trying to call the federal loan modification program hotline can cause major headaches, and trying to get one huge bureaucracy to call another huge bureaucracy can take months and months.  While it is encouraging that the federal government is trying to help the average homeowner, a loan modification attorney can get better results in less time.A loan modification can help adjust a number of mortgage terms to lower your monthly mortgage payment, thus allowing you an affordable payment you can pay consistently.  California loan modification attorneys, such as those at the Feldman Law Center, have years of experience in helping people avoid foreclosure and stay in their homes.  Our loan modification attorney team is highly skilled in helping California homeowners in avoiding foreclosure, avoiding bankruptcy, avoiding a short sale and avoiding the “just walk away” option.

You may have a number of questions regarding loan modifications and how they can help you avoid foreclosure.  Loan modifications have been all over the news lately.  President Obama has passed major, historic legislation giving homeowners more access to loan modifications; the California legislature has also passed legislation promoting loan modifications.Here are some questions and some answers for loan modifications:Q: What is a loan modification?A: A loan modification is an agreement between a lender and a borrower to change the original terms of a loan in order to make payments more affordable.  For homeowners, a California loan modification could be a way to stay in their home.  A loan modification attorney can be a major asset when trying to get a loan modification.Q: How can a loan modification be accomplished?A: There are actually a number of different ways to get a loan modification.  The interest rate on a loan can be either lowered temporarily, or permanently set at a lower rate.  An adjustable rate could be set to a fixed rate.  The term of the loan could be changed, from say 30 years to 40 years.  There could be a principal reduction of the loan amount.  There are other ways and you could also have any combination of options.  All of this is geared towards lowering your monthly payments and making your mortgage more affordable.Q: How common are loan modifications?A: As the real estate crisis continues, loan modifications are becoming increasingly common.  Loan modifications have been around for a very long time, but only when many people are in danger of losing their homes does everyone begin to ask questions.  Some think loan modifications are a new invention, or a scam, but people with mortgages have been getting loan modifications for quite a while.Q: Does the federal of California state government play a role in loan modifications?A: As so many people are suffering due to the economic crisis, President Obama and the California legislature have passed various laws pressuring lenders to offer loan modifications.  Lenders are not opposed to loan modifications, especially at a time when so many Americans are facing foreclosure.  A foreclosure hurts the banks’ bottom lines, and the industry has already seen hundreds of billions of dollars in financial loss due to the mortgage crisis.  California passed a law in 2008 promoting loan modifications, and in early 2009 President Obama wasted no time in helping people get the loan modifications they need to stay in their homes.  With Freddie Mac and Fannie Mae in serious trouble due to foreclosures (both of which are federal entities), it behooves the federal government to act that much quicker in saving people’s livelihood.As you can see, there is a lot of information out there on mortgage loan modifications, and many people are unaware as to whether or not they qualify.  If you are facing foreclosure or facing another financial crisis, contact a qualified California home loan modification attorney today and get “in the know.”Visit us at http://www.feldmanlawcenter.com or call 800-588-0425.