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California Homeowners Can Stop Foreclosure with Loan Modifications, Forensic Loan Audits and Negotiated Mortgage Loan Modification Terms.
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01 Dec 08 FDIC Mortgage Loan Modification Versus Legal Loan Relief Program

The FDIC Loan Modification Program targets homeowners who are presently having financial difficulty with their 1st and 2nd mortgage loan payments, but have the ability and willingness to make a mortgage payment. The FDIC uses a streamlined approach to identify loan modification candidates and to provide a customized modification offer when the modification minimizes loss. If a borrower does not qualify for streamlined mortgage loan modifications, an individual loan review may result in a personalized modification that still maximizes value like the FHA loan program, Hope for Homeowners. Private loan modification companies, like Legal Loan Relief, offer mortgage restructuring options for homeowners who have debt to income ratios between 38% and 100%.


Watch the Fox Video regarding the FDIC Loan Modification Plan

This mortgage relief approach is one of several loss and mitigation strategies that a mortgage service companies should consider when dealing with a distressed borrowers. Mortgage refinancing is should always be the homeowner’s first option, but many people simply do not qualify for a FHA home refinance loan whether it’s a government or a traditional rate and term mortgage. However, many borrowers are unable to refinance their loans in the current economic environment and repayment plans typically do not provide.

Many California homeowners are not aware of the State’s position on foreclosures. The Golden State’s Governor continues to promote a Foreclosure Moratorium for California. Whether you are upside down with a mortgage balance greater than your home value or simply need a payment that is more affordable, consider a loan modification as one of the recommended foreclosure prevention methods.

Once the homeowner’s loan modification is determined, the mortgage lenders’ service company must perform a property valuation test between the cost of a loan modification and the estimated cost of foreclosure to provide modification results in a reduced cost solution to the investor. By providing an automated valuation method that compares the cost of the modification and the estimated cost of foreclosure, the service company fulfills the terms of most home loan servicing agreements.

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Reader's Comments

  1. |

    [...] Originally posted here: Home Refinancing and FDIC Mortgage Loan Modification Versus Legal Loan Relief Program [...]

  2. |

    In today’s real estate crisis, many lenders are trying to “catch up” with staffing requirements to facilitate more mortgage modifications. This process will certainly take some time. If you don’t qualify for refinancing with FHA mortgage lenders, consider all viable alternatives.

  3. |

    Knowing these differences can help a lot when deciding on a mortgage loan. Credit repair can help eliminate loan issues after the fact….thanks for the information.

  4. |

    [...] Vote FDIC Mortgage Loan Modification Versus Legal Loan Relief Program [...]

  5. |

    It is happy to see your foreclosure prevention posting. They are really informative article and California homeowners have been taking a bath for the last few years, so its’s good to see someone reporting on the loan modification opportunities. I will pass this information again to my network and I suggest you to check my blog on Mortgage Loan Blog , I hope the finance article on my blog will be usefull for you… and we can share more with each other. thank you…



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