Feldman Law Center – News by Feldman Law Center
The whole reason a loan modification becomes necessary is because the borrower needs the loan to be more manageable, so that he or she can continue to pay for it. The purpose of a loan modification is for the borrower, or someone on the borrower’s behalf, to negotiate a more feasible mortgage with the lender. At first glance, this deal seems like a good one for the borrower. And oftentimes it is. But what about the lender?

Because of the current financial crisis, many people are seeing loan modifications as a good deal. The negotiations are usually initiated by the borrowers, and allow them to keep their property, postpone payments, reduce or stabilize interest rates, and sometimes even get a better deal on the house they already live in. Their credit scores are not harmed like they would be by a foreclosure or bankruptcy. Most of all, they do not have to move from their houses, forcing upheaval on their families, during a time of financial hardship and stress.

Society seems to take the side of families and the personal stories broadcast on the nightly news shows. Stories about 50-year old, recently-laid off, single moms who can’t afford their mortgages tend to pull on people’s heartstrings, winning the allegiance of many members of the public. And since so many people are being affected by the mortgage crisis, public outcry seems to be against banks and lenders, who are being blamed for offering such ludicrous loans in the first place.

The government, and specifically groups such as the FDIC, are also increasingly supportive of loan modification programs. The FDIC has even built a “Mod in a Box” loan modification program guide, in order to encourage more and more lenders to offer loan modifications. Obama has plans that involve modifying home loans to keep families in their homes, and countless nonprofits and support groups seem to be cropping up to help people with distressed finances.

So, borrowers, the government, and society at large are supporting the numerous loan modification programs available. One still has to wonder what banks think about home loan modifications.

Although much less loudly proclaimed, many lenders are in support of home loan modifications too. Lenders’ motivations for modifying a loan can vary. If a home is sold in a short sale, the bank agrees to write off the amount the borrower still owes, sells the property, and takes a loss. Foreclosures are much the same. When a bank forecloses on a home, they often make less profit on the property than they would have made through a mortgage, even a mortgage modified through a loan modification. Simply put, banks have a business motivation to modify your loan: they stand to make more profit if you stay in your house. Not to mention the fact that loan modifications make them look better in the eyes of the community and the government, and could potentially help the world’s economy in the long run.

If you need a home loan modification, contact the attorneys of the Feldman Law Center. Consultations are free, and they can help you benefit from staying in your home.

The Feldman Law Center was founded for the purpose of negotiating loan modifications on behalf of their clients. These negotiations have two major goals; to reduce monthly mortgage payments to a level of affordability for the homeowner and to either stop or avoid foreclosure proceedings. The mission at The Feldman Law Center is to provide the highest level of professional service while delivering the best possible result on each loan modification we negotiate on the behalf of the families we represent. Call The Feldman Law Center today at 800-588-0425 or visit www.feldmanlawcenter.com

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What home improvements add value

You would have purchased your dream home a few years back and now feel that you do not get enough appreciations as you did at that point of time. No doubt about that, as the house has become old and does not look as attractive as it used to be. Certainly your house has faded and now, if you indeed to make it look good and bright, there area few ways you need to proceed. The point that needs deliberation is whether you can do it on your own or whether you should enlist an interior designer for the job.
If you have enough money with you to engage an interior designer, then that is a good option as these are professionals and know what exactly pleases the eye. If not, there are a few simple cost effective means of upgrading your old house and make it look brighter and shinier. You first need to decide if you are aiming for a simple renovation or an addition to the existing structure. If you intend to add a floor or a room to increase the worth, that needs to be discussed with a masonry specialist or an architect before proceeding. They will be in a better position to advice as to how to proceed without causing any safety concerns to the already existing structure. This will also include getting necessary approvals from the community or area offices.

If it is simple renovation, then you need to have a systematic way of doing the entire exercise. Start with the curb; see if it needs a repair. As you walk towards the door, cross check the condition of the main door. You can either install a new door or change the metallic components of the door. A new shining knob or handle can give the entire door a new look. Add to it, a coat of polish, and it is as good as new. You can also polish the window frames and interior doors. Add a few hanging fixtures to the interiors and if possible, even spruce up the existing furniture. Give the landscaping a facelift by planting some decorative flowers along side the curb. To finish of the entire process, paint the house with a new color. These steps can add value to your property as well as give you a new sense of living in it.

Normally, the entire exercise of improvements is taken up as a part of a bigger plan, either to sell the house or have more occupants move in. It will be a good idea to first gauge the effect of the improvement before you start implementing the plan.

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Buying Rental Property

Are you already a landlord? Do you have plans of being one? The travails of being one are very well published, with lots of literature telling you on how to manage a tenant. So are you ready to be one? If you have enough funds to buy property through an all cash deal, then being a landlord is a great option, as this investment not only gives you returns by way of rentals, but also may appreciate in the long run for you top make a profit, if sold after a period of time. If you intend to purchase a property for rental purposes only through a mortgage loan, then you might as well get your arithmetic right, as you would want to know if it is worth giving out of rentals, while you would be paying your monthly mortgage payments. It has to make sense only if the rent amount is closer to the monthly installment that you are paying to the bank.

There are indeed a few factors that you will have to consider as you buy a house to give out on rent:

1. Mortgage loan payments: As mentioned earlier, this amount has to be borne by the rent received, so ensure that you have a prospective tenant list in hand as you go around finalizing the sale.
2. Real estate agent: Ensure that you have the help of a good real estate agent who can help you locate an area that can give you a continuous stream of tenants. Even if one present tenant vacates, you should be able to get another within a short period of time, as the more time the house lays vacant, the more losses you are going to incur.
3. Area of purchase: The area of your purchase has to be chosen with due care, as this area should have endless opportunities for employment as well be a good social atmosphere to live in. These factors ensure that you have more and more families eager to move in to your rented house, as they tend to stay longer than bachelors who come in search of jobs and may  relocate as soon as they et better opportunities.
4. Help of attorneys and financial consultants: Take help from attorneys for the real estate deal as well while finalizing on the rental agreements. Issues such as abandonment or non-payment of rents can be taken care through relevant clauses in the agreement. Financial consultants knowledgeable about IRS codes can help you evade taxes on the rental income as well taxes which can be exempted if you intend to utilize the 1031 exchange.

These points are to be marked as critical as you go about finalizing your home purchase.

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Up until a few months ago, lenders were not modifying loans for home owners that were on time with there payments. So if you have been considering to miss a few mortgage payments to encourage your lender to modify your loan, you may want to re-consider.

Normally lenders would only grant loan modifications to home owners that were three or more months behind and the reason for this is because these delinquencies proved that the home owners were in need of a loan modification. But lenders now understand the importance of keeping a performing loan performing or keeping a home owner making timely payments by means of a loan modification, instead of making the home owner become delinquent, is not a good idea for home owner or lender.

If you check your lenders websites you will now see that majority of them now imply that being late on your mortgage payment is no longer a requirement to get a loan modification approved. I want to encourage all home owners that they should not wait until they have missed a payment, but if they foresee a problem to contact their lender immediately to possibly avoid a delinquency.

This becomes even more important if you are one the many home owners stuck with a high rate adjustable mortage.

The new Obama Plan or Making Home Affordable Plan is now dictating the direction that many lenders are tailoring their policies in reference to loan modifications. This new government loan modification program were designed for home owners that are currently on time, as well as home owners that have missed a few payments. Its also states on the main Making Home Affordable Plan website that “”responsible borrowers who are struggling to remain current on their mortgage payments are eligible if they are at risk of imminent default.”

Now what does “risk of imminent default mean? This means that a home owner that has a mortgage where the rate has recently adjusted and the payments are no longer affordable or a significantly loss of income or any other type of hardship, would make the home owner qualify under the new Obama Plan.

Now one important reason not to be delinquent with your mortgage payment, is that is will disqualify you from getting a refinance under the Making Home Affordable Plan, refinancing under this plan could help home owners refinance at current market values so they are no longer upside down with their current mortgage and get a more stable fix rate loan.

Another important reason not to miss payments is that your credit will be tarnished for years to come. Some home owners may believe that missing a few payments at the expense of their credit score, is not such a bad thing if they can get a lower mortgage payment. Here are some of the consequences that most home owners don’t take into consideration, they don’t realize how difficult refinancing will be because of the late payments, getting approved for an auto loan or getting new credit card accounts. Not to mention, having a low credit score will cause utility companies to require a deposit, your interest rate on your credit cards can go up and also you car insurance or home owners insurance can increase because of a lower credit score.

Home owners need to also take into consideration that if they miss a mortgage payment, that they still owe that payment, which because it’s late, it will now include late fees and penalties and other junk fees that your lender can tack on depending on the seriousness of the delinquency.

These add on fees can increase your mortgage payment by 20-30 percent.

Marlon Baugh is a nationally-known mortgage expert. Since 2003, he has specialized in Florida FHA Mortgage Loans for people with Bankruptcies, Foreclosure or with other credit issues, as well as Florida Loss Mitigation. If you would like a Free Copy or to get instant access to the remainder of this Insider Mortgage Report, please visit
http://specializedfinancialsolutions.com/lendersexposed.htm or Call 954-678-5796

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