Frequently Asked Questions
Q1. How long do I have to act?
Everyday you get behind on your mortgage makes it more complicated for your lender to restructure an agreement that you will be happy with. Going forward now shows the bank that you are not avoiding them. Acting today will save you money and a fresh start.
Q2. Did you know that Lenders favor "refinancing" more than a loan modification?
Replacing an existing loan with a new mortgage can substantially impact lender risk. For example, if you live in Florida and buy a home with a new loan, your financing is commonly considered a "purchase money mortgage." If you're foreclosed or go bankrupt, the lender gets back the house but cannot sue you for any deficit. If you "refinance" you no longer have a "purchase money mortgage" and a lender can seek a deficiency judgment if you're foreclosed.
Q3. I am refinancing with no closing costs so why should I try a loan modification instead?
There is a distinction involving “no closing costs” and "no costs." In your circumstances, the lender is paying your closing expenses. The lender must get that money from somewhere, and that is your loan in the form of a somewhat higher interest rate than might otherwise be available, a larger loan amount, a prepayment penalty if you quickly refinance, and perhaps all three.
Q4. Will bankruptcy help save my house?
Possibly. It has been often stated that about 95% of homeowners who proclaim bankruptcy end up losing their home to foreclosure anyway. Bankruptcy is doubtful in helping you save your home. If you pronounce bankruptcy you will likely have both a bankruptcy and a foreclosure on your credit report. There are times when bankruptcy is suitable and we advocate you consult a trustworthy attorney if you need to.
Q5. What can loss mitigation do for you?
The goal of loss mitigation is to work out an agreement between the homeowner and the lender that will stop foreclosure proceedings. This allows the homeowner to stay in their home.
