Loan Modification

DELINQUENT MORTGAGE OPTIONS

Homeowners can become trapped under a mortgage and no longer able to pay. There are a number of options available to assist the homeowner depending on the individual’s circumstances. The Law Offices of Alex Leon will explore every option and work with the homeowner to develop the best possible strategy for resolution to the problem. Some options may include the following:

1. Reinstatement - Pay the Mortgage Company all of the back payments to bring your mortgage current. This option is rarely attainable. The Mortgage Company will add late fees and Attorney fees on top of your back payments making this amount much more than people are able to come up with.

2. Workout - We can negotiate with your Mortgage Company to bring your loan back in good standing. There are many options available to us to get a work out approved. Some examples are as follows: a. Forbearance - We will be able to arrange a payment plan based on your financial situation. This is mostly used in the instance of a tragedy or temporary loss of employment. b. Loan Modification - We may be able to adjust the terms of the loan to meet your financial situation. c. Partial Claim - You may qualify to have the repayment amount applied to the end of the current loan and resume normal payments.

3. Refinance - We have established partnerships with very reputable lenders who can give loans on mortgages that are in foreclosure if there is enough equity available.

4. Sell Your Home - You may simply sell your home before the Foreclosure Sale Date. Sometimes the homeowner is unable to sell the home outright at the desired sale price and this is not an option. We may be able to negotiate a Short Sale on your behalf with your Mortgage Company. In this instance the Mortgage Company may take less than what you owe on the loan to avoid a lengthy and costly foreclosure process.

5. Deed-in-lieu of Foreclosure - We can arrange for you to simply give the home back to the Mortgage Company and walk away with a clean slate.

6. Bankruptcy - This is usually the last resort. This will only save your home temporarily. If you miss one payment during this process the lender will put you right back into foreclosure. This is like putting a band aid on a bullet wound... we will still need to come up with a permanent repayment solution to get your house payments back on track.

7. Foreclosure - You may elect to allow the home to be entered into mortgage foreclosure. This is the most damaging to you. The Mortgage Company will take your home and all of your equity. If there is no equity they may come after you to pay the shortage or "deficiency". This is also the most damaging to your credit and your ability to acquire another home loan. It is important to note that the Workout Options available to you may be limited dependent on the following factors: 1) the type of loan that you have; 2) which investor holds your note; and 3) which mortgage insurance company insures your loan (if you carry mortgage insurance on your loan).