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Is a loan modification right for you?
(We now offer a possible nationwide alternative to this program which can be found at:
Owe to much and need relief?
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A standard loan modification is probably the least likely method to succeed. The government
has you believing that the banks will modify your loan. But, the ruling the government put out is only for a temporary relief and
the ruling has no teeth. Many people have been blindsided by this. They thought they were getting relief from foreclosure,
but while in the temporary loan modification period, there is nothing to stop the bank from foreclosing.
Imagine how you would feel if you thought your loan modification saved you from
foreclosure then a knock on the door from a stranger happens. He tells you, that you have "x" amount of time to vacate, he bought
it at the trustee sale. That has happen.
A friend of a colleague of mine had that very scenario happen. That is when
we discovered that the loan modification program was mostly bunk.
In reality, the lending institutions make more money by foreclosing than they would ever make with a loan modification.
Now, with a new ruling put out by the government on October 15th, 2010, we can get the lender to lower the
monthly payment and reduce the principal balance on the mortgage. We can do it in a way that makes sense to the bank and helps you out. We will use
the new equity share method provided by HAMP to get the banks to work with you. And the good part is; we do most of the work for you.
In a "nutshell", the equity share program starts with a hard stance against the bank to, basically, get their
attention. Once we have their attention, then we shift to the equity share method. This method can reduce
your interest rate to as little as 3%. Your mortgage could be change to as low as about 90% of the current value. But, it does not
completely alleviate you from the amount owe, it just gives you time to let the natural tendencies of real estate happen. That
means that over time the value of your property will increase and you share that with the bank.
The equity share has limits. You will share equity gained up to the point of the original debt, then
the equity share ends. At this point, the bank has recovered lost revenue, more than a short sale or foreclosure would ever bring
them. You have enjoyed the benefits of a much lower monthly payment. It is a win/win situation.
If you would rather not do an equity share with the bank, then the page
I owe more than my home is worth
should be of great interest to you. Even if you do not owe more than your home is worth.
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