Do You Have to Pay Up All of Your Back Payments to Get a Home Loan Modification? Of Course Not
Posted: Sunday, November 21, 2010
by Danny Hammond
Boulevard Online Marketing
Foreclosures and loan modifications. I am a realtor, mortgage loan originator and builder, and these are the two topics people ask me the most in today's horrible economy. This is all we can think about.
But really the two subjects are really one problem. What got you here? For one of a variety of reasons, you have been unable to pay your payment that was arranged by you and your lender when you bought your home. Could be Illness, job loss, reduced income or, other unforeseen events have strangled your ability to pay your monthly payment for your home. Now, you are way behind on your payment and your lender is demanding the back payments plus fees and penalties.
By the time you get close to foreclosure, you owe another months payment $1,500
Your demand includes $500 in late fees and penalties and $350 legal fees $ 850
Now, things are better and you can maybe make your payment, but how about paying: $6,850
Is there is nothing you can do? Your foreclosure is in 2 weeks. You can't pay $6,850 for what they call a loan reinstatement. Do you just have to give up? Absolutely not. The Back Payments do not have to be paid today.
There have been too many foreclosures. The lenders know it, Obama knows it. I know it. Lenders don't want to foreclose on you. Is it because they are nice guys? No. It is just bad business today. They are losing money on each and every foreclosure they do today.
So then what is the plan that can save your home? It is Loan Modification. You need to apply for a loan modification. That means to change some of the words and terms of your loan to lower your interest. which will lower your payment. Instead of making you pay all of the back payments today, your lender must recognize that you are having troubles. Just like freaking everyone else in America and the World. If you are having troubles how can you pay that back money totaling thousands all at once. So, a change is made. In the above example, the $6,000 in payments just go back into your loan to be paid back in your monthly payment. You will pay it over time, like the rest of the mortgage that you owe. So you stop your foreclosure and make new arrangements, so that you are brought current with one months payment. The government backs it and it is available to everyone.
What I have described is not rare. I am in this business, so I know that hundreds of Loan Modifications are done every single day. It can be a lengthy process, but once you begin your modification your anxiety level will go way down.
It sounds easy, but it is kind of a hard system to navigate through. Some of you reading this have tried it yourself. A few of you have been successful, but many more are stuck in and stumped by this system. Many of you should find a good mortgage loan negotiating counselor. It may be a little expensive, so you should choose carefully and ask for references. Get a guarantee that your loan will be modified successfully. I told you that I am in this business and I assure you that an experienced loan counselor will be able to help you, if you have some stability returning to your life.
If you would like to know more, we would love to hear, from you. Maybe we can help. Our contact info is below.
Good Luck
Danny Hammond is an author and a self made expert in all things real estate. From using Self Directed IRAs for Real Estate Investment to the business of Stopping Foreclosures and getting home owners Loan Modifications, he has done it all. You may visit his Foreclosure and Modification Website:
http://www.mortgagepaymentmodifications.com
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