A common misconception is that lending institutions are opposed to granting loan modifications, the reason being that they do not benefit from granting them.
But in reality, banks and lender do grant loan modifications. A loan modification is an instrument that stops foreclosure and it is far more financially favorable because a monthly payment is received from the homeowner as opposed to foreclosure thereby receiving no moneys from that house.
Headlines regularly appear indicating that the FDIC reports that the average value of a modified loan exceeds the average value of the same foreclosed loan by more than $50,000. What that means is that the banks and lending institutions basically lose $50,000 or more per foreclosed home. When a lender hesitates to initiate a loan modification, it is probably due to two factors. One, it is not yet a common practice and anything new is usually frowned upon in the credit industry. Two, the same principle applies to the lending industry.
There are multiple thousands of vacant foreclosed properties currently on the market. There is no guarantee that a lender can resell it in a timely fashion, no way of knowing what price they will get and with so many foreclosed properties, the lender will have a property which is not producing any income for that lender for an extended period of time. However, lending institutions can enjoy a number of long-term benefits by granting loan modifications. A loan modification will at least guarantee the lender can recover most of the loan amount even with revised rates and lower monthly payments.
Negotiating affordable monthly payments for their existing loan is the single largest problem most homeowners will encounter when attempting a loan modification. Think about it. Keeping profits as high as possible is the main focus of any bank or lender. The homeowner’s comfort level of an affordable monthly payment does not concern the lender. Unfortunately, at this time there is little, if any, regulation ensuring that home owners will receive an equitable outcome when negotiating on their own behalf.
The entire mortgage crisis was enabled by the regulatory oversight of the lending industry, causing an explosion in the housing sector. Millions of new loans and refinanced loans were quickly sold to larger institutions. This historical glut was created mainly by the greed of many of the sub-prime lenders, ultimately causing our current mortgage crisis.
Unfortunately, between 2001 and 2006, it is estimated that predatory lending victimized one out of every four new loans. Predatory lending practices, in an attempt to keep profit levels high and to attract more customers engaged in a wide variety of tactics which unfairly subjected their customers to over pay on interest rates. This victimized the homeowner dearly and consequently, cost them their very home. So many homeowners were unaware of this until their monthly payments escalated so high they could no longer afford to live in their very own home.
Real estate consultants with the expertise to successfully negotiate loan modifications can be found at the Home Loan Crisis Center in the Tampa Bay area in Florida. Many homeowners, who were in danger of losing their homes to foreclosure, were helped because a loan modification is a better option than foreclosure. The HLCC works with the homeowner by assembling the needed paperwork and documentation, providing expert negotiations and, if necessary, performing a Forensic Mortgage Analysis.
One of the tools available to stop foreclosure is the Forensic Mortgage Analysis. It is an excellent tool to which allows time to detect inconsistencies and or violations with respect to RESPA and TILA guidelines which were created to prevent/shield homeowners from Predatory Lending Practices, Toxic Loans, Out of control ARM mortgages and Interest Only mortgages.
Check out www.HomeLoanCrisisCenter.com and you’ll see that this company considers honesty and integrity above all else. “If you do harm to someone you can never count on repeat business or word-of-mouth advertising”, so the HLCC strives to excel at conducting business at the highest level of integrity, morals and ethics.
There is no charge until the entire process has been successfully completed. Also, there is quite a lot of information available in the Free Reports, including why lenders prefer a loan modification over a foreclosure. That link is available at: Free Reports
Call the Center’s Tampa Bay, Florida toll free number: 888-273-3144 if your home is in one of the following zip codes:
* 33601 * 33602 * 33603 * 33604 * 33605 * 33606 * 33607 * 33608 * 33609 * 33610
* 33611 * 33612 * 33613 * 33614 * 33615 * 33616 * 33617 * 33618 * 33619 * 33620
* 33621 * 33622 * 33623 * 33624 * 33625 * 33626 * 33629 * 33630 * 33631 * 33633
* 33634 * 33635 * 33637 * 33647 * 33650 * 33651 * 33655 * 33660 * 33661 * 33662
* 33663 * 33664 * 33672 * 33673 * 33674 * 33675 * 33677 * 33679 * 33680 * 33681
* 33682 * 33684 * 33685 * 33686 * 33687 * 33688 * 33689 * 33690 * 33694 * 33646
Permanent link to this post: If you live in Tampa, Florida say “Yes” to Loan Modification and “No” Foreclosure
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