Loan Modifications

Loan Modifications in Arizona: Are They Possible?

Is it possible to get a loan modification in Arizona?

Kind of.

It is actually possible, but I haven’t really seen it happen all that much. In fact, according to Kevin Hardin from Thomson Law, one of the most common problems with getting a loan modification done is that it might not be the best solution in the first place for a homeowner.

There are many different situations when it comes to people and their homes – and there is no one-size-fits-all solution. Some people may have a situation where foreclosure makes the most sense, some may be in a situation where a loan modification can make sense and many will be in a situation where a short sale makes the most sense.

Regardless of which of the “bad three” options makes the most sense for your situation, one thing makes perfect sense regardless – hire the best real estate attorney you can.

Here in Arizona, we refer people all the time to Thomson Law and here is a little bit of information from the managing director there about what you need to know about loan modifications.

#1: Who really “owns” your loan?

Here is just a little more information about some of the things Hardin covers when talking about loan modifications and what to expect as you attempt to get your lender to modify your loan.

Arizona Loan Modifications: 7 Things To Know

Who really owns your loan? It may not be who you think
Your permanent loan modification isnt permanent?
A forbearance isnot the same as a principal reduction
Once you are underwater in your mortgage, it is virtually impossible to no longer be underwater
Are loan modification payments current payments?
Does a loan modification save your home?
How long before you can become a homeowner again?

Have more questions about what is possible when it comes to loan modification here in Arizona? Be sure to contact Kevin and learn what your options are.

Thomson Law PLC
Kevin Hardin, Managing Director
2701 East Camelback Road, Suite 150
Phoenix, Arizona 85016
602.774.3757

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More details on the “Making Homes Affordable” program, and will it help Arizona?

Is your house under water? If so there may be new help available for you. There are two parts to the new loan modification program released by the Treasury department yesterday. The first is a loan modification program for those why may be stuck in a higher interest rate or adjustable mortgage. To qualify for this program you must:

Owe no more than 105% of your current home value
Have a Freddie Mac or Fannie Mae loan
Be current on your payments
Be able to qualify with your current income

The biggest problem with this program in Arizona is those who may be stuck in the adjustable mortgages probably purchased their home in the last four years and are more than likely much more upside down than the 105%. If they purchased the home on a Freddie or Fannie loan, they unlikely put down more than 5% and combine that with the market trends over the last two years and it is unlikely many Arizona home owners will qualify.

The next group for the modification program is for those who:

Payments exceed 31% of income
Behind on payments
Have sufficient income for a new loan rate
Lender must agree to the modification

The government is offering $1,000 to the bank to work with you on renegotiating the loan. The question that will need to be answered here is that enough of an incentive for the banks to renegotiation the loan with the customer. Only time will tell and with the lenders having control on if they will do the renegotiating, we suggest you contact your lender.