Recently, Kevin Hardin at Thomson Law revealed 7 secrets about Arizona loan modifications that most people won’t tell you. If anyone could explain the ins-and-outs of loan modification, I think Kevin can – his firm has helped thousands of Arizona residents understand the process of getting an Arizona loan modification over the past couple of years.
Permanent Loan Modifications Not Permanent?
Here is the #2 secret Kevin revealed about loan modifications – permanent loan modifications are not permanent.
Highlights in the video include:
We hear in the news about getting a trial mod. Lenders will get you on the phone, tell you they understand that you are behind on your payment and then offer for you to pay $600 a month for the next three months while they get all the paperwork “taken care of”.
The problem with this is that it is a trial loan modification and there are no contracts that you have signed, there are no legal documents and after a six month period and you end up getting denied, you are going to be very upset.
Hardin further goes on in the video to talk about what happens if you actually get a “permanent” loan modification.
Let’s say that you actually get awarded a “permanent” loan modification. You are excited and think that you finally got your permanent loan modification. Well, it is not permanent. When you read the loan modification documents, you are going to find that your new interest rate is going to start at something like 2 or 3 percent — for the first year. Then after another year, it goes up another percent. Until it gets to a market rate – and let’s say that market rate is 5.5%. At that point, it is going to be a fully-amortized payment (PITI) and so you want to ask yourself today: could you afford a fully amortized payment on the home you own today.
Odds are, you probably can’t.
Which means with a loan modification situation like this all you will have achieved is to get a very temporary solution to a permanent problem.
Have more questions about loan modifications? Contact the Arizona loan modification experts.
Thomson Law PLC
2701 East Camelback Road, Suite 150
Phoenix, Arizona 85016
602.774.3757
Words from a Very Outspoken and Opinionated California Litigation Attorney (like there’s any other kind)
Here in California, our Department of Real Estate website (dub dub dub dot dre dot gov) lists the companies that have DRE “permission” to modify loans… add to this list any licensed California attorney, and that is where you should begin your due diligence search when you seek help in California. Other states probably have similar laws, so check with your own state DRE and state bar.
My law firm has been getting more and more calls recently from homeowners that were victims of predatory lenders who put them into an unaffordable loan and now fell into the hands of those same people who sold the toxic loans but profess to be saviors… DON’T BE A VICTIM TWICE! What’s that they say, “Fool me once, shame on you, but fool me twice, and I’ll sue your butt!”
Do your homework and THOROUGHLY investigate any firm before hiring them to save your biggest asset and the place you call “home.” Scammers are popping up like dandelions on a freshly mowed lawn in April. They advertise on the Internet, freeway billboards, radio, television, and print media everywhere, not to mention spamming your email box with those third-world widows needing someone to receive three million dollars for them. Make no mistake, in many cases, these “loan modification experts” are the exact same loan officers and mortgage brokers who fleeced homeowners the first time around. After losing their jobs with the crash of the mortgage industry, they have found a new way to make ill-gotten profits from hard-working homeowners through loan modifications.
In California, with very few exceptions (and attorneys are one exception… no coincidence there… attorneys make the laws), it is against the law for anyone to take money up front for helping a homeowner who is in default. Don’t trust a company that begins its relationship with you by breaking the law.
HERE’S THE BOTTOM LINE!
Hire an attorney – and not just any attorney either – one with experience in mortgage law, not just one with real estate law experience but one with experience in both FEDERAL and STATE litigation against mortgage companies, one who doesn’t also do family law, criminal law, admiralty law, and immigration law as well, one who limits the practice to mortgage law (or at least a great majority of it), one who has the experienced staff, training, and know how to take on the big lenders and their top notch lawyers (lenders have attorneys – and darn good ones – check out their counsel on the web – big names top schools, shouldn’t you have a lawyer too?).
We are not talking about a refund on your broken television here, we are talking about hundreds of thousands of dollars and your HOME – if you don’t think this is the time to hire a highly educated and experienced professional instead of a weekend schooled, almost out of work, broker slash loan officer slash “expensive water in a wine bottle with alleged magical curative powers” salesperson, I don’t know what would make you take things seriously.
Of course, this is one obnoxious lawyer’s totally biased opinion, but one based on many many distressing calls to my office every day. And, yes, my firm loves taking cases against loan modification companies who have violated laws. This field is quickly becoming one of the fastest growing sections for our mortgage law firm.
- Paul J. Molinaro, Esq.
Thanks for stopping by and commenting Paul – words of wisdom to live by.