In Trouble With Your Mortgage? There Is Help Available

By: Jon Ochs

Right now the country is seeing record high foreclosure rates. People across the nation are literally walking away from their homes and letting them go back to the bank. The important thing to realize here is that the banks do not want the homes back. Banks are not in the real estate business, they are in the banking business. Why is this important? If you are in a situation where your mortgage payments are too high due to a financial difficulty, an adjustable rate mortgage, or other reason, there are programs available to re-negotiate the terms of your existing loan to allow for you to stay in your home and get back on top of your home loan.

These programs are referred to as Loan Modification, Loss Mitigation, or Home Loan Workout programs. You do need to exercise caution when enrolling in this type of program and make sure you are working with a reputable company, but the programs can be extremely successful and can offer great financial relief.

Here is a practical example of this type of program in action:

Borrower owes $400,000 at 8% and the home is worth $340,000. After foreclosing, bank must re-list the property or sell at auction. Either method can end up costing an additional $60,000 or more in losses.

In this example, bank will lose at least $120,000 if a client decides to "walk away". Through modification and lowering interest rate to 5.25% on a 30yr fixed term, bank will make close to $400,000 in future interest payments. The result is a win-win for all parties involved.

Homeowners can occassionally be successful at working out loan modifications on their own, however default rates with attorney-backed modifications are 5% or less. Self-help modifications are defaulting at over 50%. This is why banks prefer to work with attorneys.

The costs vary for this type of program but are usually fully refundable if the attorneys are not able to modify your home loan. The type of workout remedies that they are able to achieve are amazing. They range from interest rate reductions, lower monthly payments, extended payment terms, and loan principal reduction.

If you are having trouble making your current mortgage payments or are in an adjustable rate mortgage that has or is about to adjust, give us a call and get a free consultation to see what can be done for you. There is no charge unless we determine that we can help and you decide to get started. Give us a call at 1.888.282.1011 and ask about our home loan modification program.

Jon Ochs has over 12 years experience in the credit and debt industry and is the founder and CEO of NCA Credit Repair, one of the most trusted and respected Credit Report Repair companies in the nation. Get more information on Credit and Credit Repair and Debt Consolidation

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