Our lawyers can explain your legal rights about how to stop a foreclosure sale. We have been doing debt work for over 30 years in Atlanta, GA .
AVVO has rated David Galler in the highest absolute category which is defined as "Superb."
Attorneys do have the ability to halt foreclosure for you, so call us today!
Loan Modification Advantages
1. Missed payments moved to the end of the loan rather than having to be paid back along with regular payment.
2. Interest rate can be lowered or changed from adjustable rate to fixed rate.
3. Monthly payment can be lowered.
4. If real estate is worth less than mortgage balance the amount of the loan can be reduced to the value of the home.
5. Reduction in late fees or penalties.
6. Lengthening the loan .
7. Capping the monthly payment to a percentage of household income
*These are examples and not all options are available in every case.
CHAPTER 13 ADVANTAGES
1. Creates an “Automatic stay” upon filing to stop collection actions of all creditors, including foreclosures.
2. Arrears are paid back in 60 months at no interest with no changes to the loan. ( You must also continue to make regular loan payments also)
3. If there a second lien on the home and the home is worth less than the first lien, the second lien and be stripped off, however you must complete Chapter 13 ( up to 60 months) for lien strip to be effective.
If you are currently in a Chapter 13 Bankruptcy and paying large mortgage arrears in your Chapter 13 plan, we maybe still be we maybe able to lower your Chapter 13 plan payment , or allow you to get out of Chapter 13 totally.
Home modifications are a powerful tool to help struggling homeowners, avoid foreclosure without filing Bankruptcy. However approval rate for those who apply is very low, and our clients are often simply left in frustration.
Over the years GallerLaw has help hundreds successfully modify a home loan.
There are now new programs available that offer even more options, and recently our firm was invited to a workshop by one of the nations largest lenders to review the new guidelines.
We can help move missed payments to the end of the loan
Reduce monthly payments and interest
Reduce principle loan balance
FHA, VA and USDA all offer mortgage modification programs for struggling homeowners designed to lower monthly mortgage payment to no more than 31 percent of the homeowner's verified monthly gross (pre-tax) income — making monthly mortgage payments much more affordable. If you have a loan that is insured or guaranteed by the Federal Housing Administration (FHA), you may be eligible for a program offered through that government agency.
FHA, VA and USDA all offer programs for struggling homeowners that strive to lower your monthly mortgage payment to 31 percent of your verified monthly gross (pre-tax) income — making monthly mortgage payments much more affordable. If you have a loan that is insured or guaranteed by the Department of Veterans Affairs (VA), you may be eligible for a program through that government agency.
If your first mortgage was permanently modified under HAMPSM and you have a second mortgage on the same property, you may be eligible for a modification or principal reduction on your second mortgage as well, through MHA's Second Lien Modification Program (2MP). 2MP works in tandem with HAMP to provide comprehensive solutions for homeowners with second mortgages to increase long-term affordability and sustainability. If the servicer of your second mortgage is participating, they can evaluate you for a second lien modification.
If you are having a tough time making your mortgage payments, you may be eligible for MHA's Home Affordable Modification Program (HAMP®). HAMP is designed to provide deep and meaningful savings for homeowners devastated by unaffordable increases in expenses or reductions in income.
Loan Modification Frequently Asked Questions
A Loan Modification is a permanent change in one or more of the terms of a Borrower's loan, allows the loan to be reinstated, and results in a payment the Borrower can afford.
Question 1: How many Loan Modifications may a Borrower receive?
Answer: Borrowers are permitted to receive a Loan Modification or FHA-HAMP only once within a 24-month period.
Question 2: How does a lender determine a borrower’s eligibility for a Loan Modification?
Answer: Lenders are to use specific financial analysis criteria when determining a borrower's eligibility for the Loan Modification Option: The household or mortgagor(s) has experienced a verifiable loss of income or increase in living expenses;One or more mortgagors receives “continuous income” in the form of employment income (e.g., wages, salary, or self-employment earnings), social security, disability, Veterans benefits, child support, survivor benefits, and/or pensions;The mortgagor’s surplus income is at least $300 and is at least 15 percent of his/her net monthly income; 85 percent of the mortgagor’s surplus income is insufficient to cure arrearages within six months;The mortgagor’s monthly PITI mortgage payment can be reduced by the greater of 10 percent of the original monthly mortgage payment amount and $100, using the Market Rate and amortizing the new loan over 30 years;The mortgagor has successfully completed a 3-month Trial Payment Plan based on the reduced mortgage payment amount or a 4-month Trial Payment Plan in cases of imminent default; and The mortgagor has not received a Loan Modification or FHA-HAMP in the previous 24 month period.
Question 3: When utilizing the Loan Modification option, may the lender include all fees and corporate advances?
Answer: Yes. Legal fees and related foreclosure costs for work actually completed for the current default episode may be capitalized into the modified principal balance.
Question 4: May a lender perform an interior inspection of the property if they have concerns about property condition?
Answer: Yes. The lender may conduct any review it deems necessary to verify that the property has no physical conditions adversely impacting the borrower's continued ability to support the modified mortgage payment.
Question 5: May a Lender include late charges in the Loan Modification?
Answer: The lender is expected to waive all accrued late fees.
Question 6: When completing the Loan Modification Option, what interest rate should the lender use?
Answer: The lender should modify the interest rate to the current Market Rate, defined as a rate that is no more than 25 basis points greater than the most recent Freddie Mac Weekly Primary Mortgage Market Survey (PMMS) Rate for 30 year fixed-rate conforming mortgages (US average), rounded to the nearest one-eighth of one percent (0.125%), as of the date a Trial Payment Plan is offered to a borrower.
Question 7: Are Lenders required to re-amortize the total amount due over a 360 month period?
Answer: Yes, the Lender must re-amortize the total unpaid amount due over a 360 month period from the due date of the first installment required under the modified mortgage.
Question 8: Are lenders required to perform an escrow analysis when completing a Loan Modification?
Answer: Yes, Lenders are to perform a retroactive escrow analysis at the time of the Loan Modification to ensure that the capitalized delinquent payments reflect the actual escrow requirements required for those months capitalized.
Question 9: Can a lender qualify an asset for the Loan Modification option when the borrower is unemployed, the spouse is employed, but the spouse’s name is not on the mortgage
Answer: Based upon this scenario, the lender should conduct a financial review of the household income and expenses to determine if surplus income is sufficient to meet the new modified mortgage payment, but insufficient to pay back the arrearage. Once this process has been completed the lender should then consult with their legal counsel to determine if the asset is eligible for a Loan Modification since the spouse is not on the original mortgage.
The Galler Law Firm is pleased to announce we have again earned The Martindale-Hubbell® Client Distinction award , which is given only to lawyers who earn a Client Review Rating Score of 4.0 or higher (on a scale of 1-5). Less than 1% of the 900,000+ attorneys listed on Lawyers.com and Martindale.com earn this honor!