Arizona Loan Modification

Posted by admin on Dec 1, 2008

Arizona is among the worst states hit by the housing bust. In fact, according to Realty Trac’s latest report, Arizona ranks second among states with the highest foreclosure rate in October of this year. One in every 149 housing units received a foreclosure filing. Foreclosure filings were reported on 17,507 Arizona properties for the month, an increase of nearly 35 percent from the previous month and up 176 percent from October 2007.

With home prices continuing to drop and interest rates continuing to rise, the future seems grim for the homeowners of Arizona. Arizona had the third highest state total in the third quarter, with 40,419 properties receiving a foreclosure filing — a 9 percent increase from the previous quarter and a 189 percent increase from third-quarter 2007.

Realizing the fragility of today’s real estate market, not only in Arizona, but all over America, any radical move to avert the situation could produce the opposite effect in the long haul. At least, this has been the sentiment of analysts, especially from Arizona.

According to their analysis, what is needed is a gentle but steady approach to rescue the homes of people facing foreclosure. One of the most effective ways to achieve this is through loan modification. Through loan modification, homeowners are given an opportunity to pay for their mortgages and to save their homes from foreclosure. With loan modification, the borrower’s payment is lowered so that they are capable of the making the payment.

But loan modification is not a lender’s loss. Since borrowers are able to pay their lower mortgages lenders can expect a steady flow of payments from them. This would result in the future stability of the real estate business. This is especially substantial in helping those who are in a sub-prime loan. Those are the borrowers who are mostly affected.

For the people of Arizona, there are available loan modification experts whom the public can seek information and guidance from on the process of loan modification. There are experienced professionals who can work for a homeowner in negotiating with their lender for more affordable payment terms.

Nevada Loan Modification

Posted by admin on Dec 1, 2008

In many of these United States, more foreclosures are being listed than the number of houses being sold in a month. The western part of the country, especially Nevada, is among the worst to be hit by this statistic.

In the third quarter of this year, there was one foreclosure filing for every 61 households in Nevada. That’s up 23 percent from the previous quarter and more than triple the number reported in the third quarter of 2006.

For months, this surge in numbers continued. According to RealtyTrac, Nevada, Arizona and Florida had the nation’s top foreclosure rates last month. Nevada posted the nation’s highest rate for the 22nd consecutive month in October. In Nevada, one in every 74 homes received a foreclosure filing last month.

Because of this surge in foreclosure filings, not only in Nevada but all over the United States, three of the country’s largest banks have announced their plans to stop the massive rise in home foreclosures through loan modification.

In October, Bank of America after it acquired Countrywide financial, committed to reducing monthly installments yet to be paid by 400,000 homeowners. Along with such commitment, the bank also agreed to make some alterations in its financial practices across 11 states including Nevada and even reduced the balance on some mortgages.

Some few weeks later, JP Morgan Chase decided to help distressed homeowners through interest rate reductions and loan principal reduction on a temporary basis. The bank aimed at lowering their borrowers’ monthly amortizations to about one-third of their disposable income.

Another large bank that followed the loan modification scheme is HSBC. According to reports, about a quarter of their total sub-prime borrowers had already availed of loan modification and had been approved.

With this, the foreclosure figures in the state of Nevada are expected to drop when these loan modification programs are in full swing. Homeowners can now enjoy the benefits of lower mortgage payments, which is the primary goal of a loan modification agreement.

Colorado Foreclosure

Posted by admin on Nov 25, 2008

In the recent foreclosure report, Colorado is now the fifth overall of all states in foreclosure. The latest report showed that Colorado has 5,374 properties in foreclosure in September, or one in every 390 households. This is equivalent to a 23 percent increase from the previous month.

In the state of Colorado, the foreclosure process is quite different from other states. Colorado foreclosures occur through both in-court and out-of-court proceedings. The most common process is managed by a public trustee out of court and takes about six months.

The public trustee is either appointed by the governor or elected by the people in each county. When the lender files the needed documents in request for a sale of the property, this starts the out-of-court foreclosure process. The foreclosure sale can be scheduled after the public trustee officially records the foreclosure action.

The lender still has to obtain a separate court order that will allow the sale even after the sale is already scheduled. If no one contests that the borrower is in default, the sale could be allowed without a hearing after all concerned parties are notified.

The homeowner has 15 days to stop the foreclosure from taking effect. This is done by submitting a letter of intent to the public trustee stating his plan to pay off the default. The deadline for this to be done is noon the day before the foreclosure.

After about 110-125 days after the recording of the initial foreclosure action, the public trustee schedules the sale. Within 12 weeks the notice of sale is published in a local newspaper and a copy of the notice shall be sent to the borrower.

Given the chance that a homeowner has before the foreclosure take effect, many defaulted homeowners had been able to save their properties from foreclosure using different foreclosure workouts. The most commonly preferred method is a loan modification where the homeowner requests the lender to modify the loan terms on their existing loan to make it more affordable.

With the recent increase in the foreclosure rate in Colorado, lenders are now more interested in cooperating with the borrowers requesting for loan modification agreements. Making the loan more affordable for the borrower gives them a better chance of collecting payments rather than foreclosing on the property. Aside from being an expensive process as outlined above, foreclosure puts the lender on a losing side since real estate prices are low and buyers are scarce.

California Loan Modification

Posted by admin on Nov 24, 2008

The State of California holds the number one spot for the highest number of foreclosed properties.  In an effort to stop this trend, the government of California now requires banks and other lending institutions to contact delinquent homeowners 30 days prior to filing Notice of Delinquency to make loan modification mandatory.

California Civil Code 2923.6 which was enacted last July 2008, requires Lenders of residential loans in the State of California to accept loan modifications in most foreclosure situations. This applies to all residential loans made from January 1, 2003, to December 31, 2007. Loan-modification solutions can include freezing or reducing interest rates, reducing the principal or extending the term of the loan.

Analysts have agreed that this move on the part of the state government is a far more superior program to combat foreclosure as compared to the federal bailout funding. In this program, the spending of taxpayer’s money by the government was eradicated while controlling the situation. Cooperation is promoted among the borrowers and lenders to seek solutions in order to promote mutual interests.

With this program, both the government and the public are expecting a drop in the number of foreclosure proceedings in the coming months and years. This long-term solution may take a while to feel its effect but it is viewed to be more effective in solving the problem as it addresses the root cause, providing homeowners with more affordable payment options instead of giving them additional loans.

What Californians need now is a thorough knowledge regarding this all important law. This law, however, does not mean that a homeowner has to be behind in his payments before they can ask their lender to modify their loan. Homeowners who are up-to-date in their mortgage payments can contact their lenders and propose loan modification agreements.

There are available loan modification experts who are willing to help distressed California homeowners in having their loans modified. They can give professional guidance and counseling to reduce undue anxieties and risks in regards to their mortgages. Most of these experts come from loss mitigation companies that can also offer legal remedies from their in-house lawyers to make sure that a homeowner’s rights are defended to the best of their interests. They require some reasonable fees for their services.

However, homeowners are also cautioned to trust only reputable loss mitigation companies. With the current real estate market situation and the enforcement of the new law, there are also increased number of scams and frauds reported associated with loan modifications. Therefore, it is always best to examine each company’s profile.

Loan Modification in California

Posted by admin on Nov 21, 2008

While the nationwide foreclosure rate continues to increase, California numbers are dropping. Thanks to the new foreclosure law enforced last September.

This law requires all banks and lenders to offer loan modification to delinquent homeowners. This gives these homeowners a chance to avert foreclosures before they could be served.

According to the data released by Foreclosure Radar, as early as September, the number of notices of default has decreased by as much as 61.8 percent and the number of homes put up for sale by auction also dropped by 47.3%. In actual figures, this is equivalent to 16,352 notices of default in September which is significantly lower than Augusts’ 42,790 filings.

These dropping figures continued to the next month. Data for October showed that California foreclosure rate is lower by 18 percent compared to that of September. The public and the state government are hopeful that this decrease will continue until the next year.

This drop in foreclosure rate can be directly attributed in the enforcement of the new law. Although loan modification has been around for years, few homeowners are even aware of this option. This California law brought widespread awareness to the homeowners.

Though this law and loan modification does not guarantee to be a “cure-all” solution to the current mortgage crisis, it is certainly an alternative to be considered. If the drop in foreclosure rates in California continues, then this can serve as a national model that can be followed by other states or even other countries. This could also mean that loan modification is a superior option in stopping foreclosure.