LMLC, Inc. | Loan Modification and Short Sale Experts | California

Loan Modification Answers

Tuesday, 29 November 2011 19:12
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1. Why should I hire an attorney to assist with my Loan Modification?


It is an unfortunate fact that in troubled times, unethical or unscrupulous individuals will attempt to take advantage of those who are struggling. One only need turn on the news or read the newspaper to know that the country is being flooded with literally hundreds of "loan modification companies", all who promise to lower your payments or stop foreclosures.

Some of these companies even advertise that they are "attorney backed" or "attorney directed." Unfortunately, many of these companies offer nothing more than hot air when it comes to really negotiating for you.


The reality is that they are often run by unlicensed individuals who are simply interested in collecting as much money as possible. In many instances, there is not an attorney involved at any point in the transaction. Moreover, attorneys who "rent" their licenses to such companies violate the California Rules of Professional Conduct.

It is vital that you understand who represents you. If you cannot speak to an attorney, chances are you should choose a different company. You need to ensure that you are being represented by the attorney or law firm.

Last Updated ( Tuesday, 29 November 2011 19:57 ) Read more...
 

HAMP FAQ

Tuesday, 29 November 2011 19:14
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What is "Making Home Affordable" all about?
The Making Home Affordable Program is part of the Obama Administration's broad, comprehensive strategy to get the economy and the housing market back on track. The Making Home Affordable Program offers strong options for homeowners: (1) refinancing mortgage loans through the Home Affordable Refinance Program (HARP), (2) modifying first and second mortgage loans through the Home Affordable Modification Program (HAMP) and the Second Lien Modification Program (2MP), (3) providing temporary assistance to unemployed homeowners through the Home Affordable Unemployment Program (UP), and (4) offering other alternatives to foreclosure through the Home Affordable Foreclosure Alternatives Program (HAFA).

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HAFA FAQ

Tuesday, 29 November 2011 19:17
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Home Affordable Foreclosure Alternatives (HAFA) – FAQ

Question

How does the HAFA Short Sale work?

Answer

In a Short Sale, the homeowner sells the property for less than the full amount due on the mortgage. When a homeowner qualifies for the HAFA Short Sale, the servicer may approve the Short Sale terms prior to listing the home and then accepts the payoff in full satisfaction of the mortgage.

Question

How will HAFA improve the short sales process?

Answer

The US Treasury designed HAFA to:

·         Complement HAMP by providing a viable alternative for homeowners who are eligible for HAMP, but nevertheless are unable to keep their home.

·         Can use borrower financial and hardship information already collected in connection with consideration of a loan modification under HAMP.

·         Allows homeowner to receive a pre-approved short sale price before listing the property.

·         Requires lenders and loan servicers to fully release homeowner from future liability for all mortgage debt (no cash contribution, promissory note, or deficiency judgment is allowed). Lenders may not require contributions from either the real estate agent or borrower/seller as a condition for releasing its mortgage lien and/or releasing the homeowner from personal liability.

·         Uses standard processes, documents, and timeframes or deadlines.

·         Provides financial incentives: $3,000 for the homeowner to assist in relocation costs; up to $2,200 for servicers to cover administrative and processing costs; and up to $2,000 for investors for allowing a total of up to $6,000 in short sale proceeds to be distributed to subordinate lien holders.

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