Times are Tough, You're NOT Alone

Millions of Americans have already gone into foreclosure and millions more are on the brink. Many people find themselves left in homes that are worth far less than what they owe and payments that they can no longer afford. With the current economic conditions, countless job layoffs, and inability of businesses to obtain new loans to stay afloat, many Americans have been stretched beyond their means and need help quick.

Help for Homeowners is on the way and new laws and guidelines are changing almost daily. Currently, there are options available for those trying to stay in their homes by either refinancing or modifying an existing loan. Not everyone will qualify and it will take more than just a phone call to your lender to get the job done. Many of you may have tried calling your lender yourself in hopes of finding a solution to your problem receiving little to no help at all. Unfortunately, the programs that are available are voluntary and the banks are in no way mandated but incentivized to help make changes. Furthermore, many banks will only look at your loan if it is getting ready to re-set, you are already in default or if you have had a life changing event such as a job loss or a cut in pay. This means that each bank may have their own set of guidelines on who they will or will not approve for a refinance or loan modification. With new laws that have been passed, hopefully those of you who have stayed on top of your payments will also be able to find some type of relief in the near future. The process of refinancing or modifying is not complex but it is time consuming and requires organization and continual persistence. In the end, the payoff of being able to stay in your home and save your credit is well worth the effort.

 

One thing that homeowners should be aware of are non-licensed consultant companies that charge upfront fees to help obtain loan modifications and offer a money back guarantee. In the state of Nevada, there are NO requirements to operate this type of business and the individual doesn’t even need to have prior loan knowledge. Many homeowners have turned over their remaining savings in an effort to lower their monthly payment and stay in their homes. Without regulation, many of these companies are taking the money and running, scamming families and leaving them penniless.

What you should know when trying to refinance or obtain a loan modification:

  • Never use a loan modification company that charges upfront fees and promises a money back guarantee; they are not regulated and therefore offer you little to no protection if something goes wrong.
  • If you are using a lender/loan officer, it is against the law for them to ask for upfront fees and they may only charge you at closing if refinancing.
  • When using a law firm or attorney be sure to ask for references and proof that they have successfully modified loans in the past. A licensed lawyer may be more qualified and at the very least has certain ethical guidelines they must abide by.

 

Don’t forget that you CAN modify your loan on your own if you are determined and persistent. Head to your lenders web page and find the steps you need to take in order to refinance or modify your loan. This usually begins with a fine-tuned budget, a hardship letter and completion of a package of information your lender may request that is usually available online. If you need help with your budget or getting started with the process you can contact a non-profit HUD Approved Housing Counselor or try HOPE NOW, a non-profit that partners with local governments to help homeowners stay in their homes. Remember, they aren’t going to do it for you but they will point you in the right direction. You have to be prepared to put in the leg work to ultimately get where you need to be.

Since New Home Realty in Las Vegas is a full service real estate firm we would be happy to answer any additional questions you may have about foreclosures, refinancing or loan modifications. Please feel free to contact us at anytime and we can provide you with further information or refer you to a specialist that can help you with your loan modification or refinance.