Loan Modifications - Civil vs. Attorney

October 28, 2008

Yesterday, I wrote a post explaining to Phoenix AZ real estate owners how they can avoid foreclosure and stop the bank from foreclosing through a Loan Modification:

Loan modification is a procedure whereby a loan payment plan is altered due to the hardship of the borrower. Loan Modifications in Phoenix AZ- Civil vs. Attorney

Believe it or not, Loan modification, which is a type of “loss mitigation” program. Loss mitigation programs, like loan modification, were established by the federal government in order to help prevent foreclosure.

Other loss mitigation programs include:

  • Short Sale
  • Short Re-Finance
  • Forbearance
  • Deed-in-lieu of foreclosure

There are 2 types of Loan modification. Civil and Attorney.

Both types of loan modifications should:

  • reduce your interest rate to a fixed rate of 5%-5.5%.
  • Loan modification should add interest, penalties, fees, etc.. onto the back-end of the loan.
  • Finally, you should try to amortize your new loan past 30 years or more.

Civil based loan modifications offer the same services you could do yourself. However, the process requires detailed paperwork, organization and time. So, for a little bit of money, you can have a company do all of this for you. It is quite an emotional relief as well to have a company communicate with your bank on your behalf.

For a little bit more money. (sometimes a lot more money), you can use a

attorney based loan modification company. Although, both companies do the same thing and generally have the same knowledge of State and Federal laws and lending regulations, there is no doubt that banks seem to react more quickly in dealing with lawyers.

A common tactic , that is quite effective in this market, is that attorney based loan modification companies find and prepare sound arguments and founded accusations of predatory lending and threaten lawsuit if the banks choose not to comply with the loan modification.

If you would like to save money and can deal with emotional and time consuming headaches of preparing a loan modification package and working with your lender then you can always try a loan modification yourself.

However, if you have the extra money, it is generally always considered wise to get a qualified attorney on your side.

Contact your bank and a loan modification company to help you through a difficult , but manageable process.

Make sure you work with a loan modification company who is experienced with short sales and bank owned transactions.

One expert in the field is Corey Goldstein. If you are outside of Arizona and need help or advice call Corey Goldstein Today.

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Copyright © James Wexler *Loan Modifications in Phoenix AZ - Civil vs. Attorney *

If you are listing your home as a short sale in Phoenix Arizona or Scottsdale Arizona make sure you hire an agent who knows how to do short sales and has the experience to get the job done.

Call 480.221.8080 to find out more about Phoenix AZ Short Sales and Scottsdale AZ short  Sales

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Written by James Wexler · Filed Under Articles, Sellers, Short-sales / Foreclosures 

Comments

3 Responses to “Loan Modifications - Civil vs. Attorney”

  1. Richard Schulz on October 28th, 2008 12:34 pm

    Thanks, nice article…One of the problems we are having when meeting with people an our office is many customers have already been in touch with the bank, he problem with this is the borrower does not understand the process and are often lead down the wrong path regarding Qualifying for the Loan
    Modification    …So, before doing anything or talking with your lender, sit down and write out a plan of action, I would suggest seeking outside help, it will more often result in a better oucome.

  2. Mortgage Loan Modification on July 7th, 2009 2:28 am

    Thanks for sharing this informative post.

  3. Rbt Fair on August 19th, 2009 12:55 pm

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