Most people are truly unaware of the various misnomers, misunderstandings and myths being propagated in regard to home loan modifications. At the Loan Modification Help Center, we have put together a list of common myths people tend to believe about loan modifications. This is so you can see the truth and make an informed decision about your current financial situation without having to go on false information and lies. Myth – Your bank or lender wants you out of your home and wants to own your home. This is an unfortunate myth that people believe far too often. To put it bluntly, your bank wants your money, not your home. They earn more money if you can make payments than they do if the home goes into foreclosure. Foreclosures not only cost the bank money from your lack of payment, but there are attorney fees, agent commissions, potential landscaping costs, home rehabbing and more when doing a foreclosure. All of that is good news because it means negotiating a loan modification makes them more money than sending your home into foreclosure.
Myth – Your terrible credit score will keep you from qualifying for a loan modification. To be quite honest, nothing could be further from the truth. Unlike the option of refinancing your way out of trouble, a loan modification simply adjusts the terms and perhaps reduces the balance of the loan you already have. In fact, a loan modification could potentially improve your credit score over time, especially if it prevents you from ending up in foreclosure or bankruptcy.
Myth – You are not able to qualify for a loan modification because you are not behind on your mortgage payments. In the past, this may have been true, the truth today however is that the eligibility requirements are constantly changing and differ among lenders. Plus, with new legislation handed down from President Obama, new doors have opened on this front. Many lenders are now working out loan modifications with borrowers who are up do date on their payments. A qualified California home loan modification attorney can help you recognize what your options are with different lenders.
Myth – You would be better off walking away from your home or declaring bankruptcy than getting a California loan modification. You certainly could walk away from your home or file for bankruptcy, but they are not the best options when you are facing a foreclosure situation. If you walk away from your home, the lender is unlikely to pursue legal action against you, but in some jurisdictions the lender can pursue financial options to collect the remaining money owed. Filing for bankruptcy may be better than just walking away from your home, but a bankruptcy will leave major blemishes on your credit report for a decade.
A California home loan modification attorney can walk you through the entire loan modification process and help navigate the myths from the realities. If you are interested in a California home loan modification, contact an attorney who can be of service and who can tell you the truths about the industry, the market and what your options are.
Visit us at http://www.loanmodificationhelpcenter.org/ or call 800-359-6941.
Legal Disclaimer
The information contained herein is provided for general information and advertising purposes only and is not intended to convey a legal option nor legal advice for any particular case or situation. Nothing in this article shall create an attorney-client relationship. Nothing sent to this law office via e-mail shall constitute an attorney-client relationship. Nothing contained in this article shall be construed to be a guarantee or prediction of result. Prior results are provided for general information purposes only and do not guaranty, warranty or predict a similar outcome with respect to any future matter. Results achieved depend on individual circumstances and not everyone will qualify or be successful in restructuring their mortgage loan.
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