If only I had the opportunity to modify the banking system, I would not
know where to begin. I hear enough horrifying stories on a daily basis
that would enable me to create a mini series titled “True Life:
the bank is ruining my life." However, many homeowners feel as though
they lack the means to fight this injustice. Believe it or not I have
a secret, a secret solution; one so great it has even proven to be a powerful
weapon that many homeowners have successfully used to save their homes.
So here is my the secret, our secret; "take the responsibility to
self with the options that are available and to seek ethically responsible
counsel.” The focus of this blog will be on modifications and how
they can assist you with saving your home from foreclosure. The blog about
trying to represent yourself in a foreclosure action without legal counsel
will be available soon.
What exactly is a loan modification? A loan modification is an option
available to homeowners who are interested in saving their home. The main
prerequisites needed in order to apply for a modification is to have some
sort of legitimate income that you can prove. For the most part, only
the person who signed the note can apply. (But there are some exceptions
to this rule.) As far as the factors in which one would qualify for a
modification, that is a secret formula that varies depending on the bank.
This information is not necessarily available to homeowners to serve as
a guideline. It is fairly obvious that every case is different, every
homeowner's personal circumstances and economical situation are drastically
different. Therefore, the process for qualifying for a modification differs.
Modifications are ideal for people who may have experienced a change in
circumstances from the time the homeowner was defaulted. Examples of this
would include; if a person lost their job when they went into default
or if a homeowner was sick when defaulted and have since started working.
Modifications are aimed to assist homeowners who want to keep their property
while they are going through a foreclosure lawsuit. Modifications are
ideal for homeowners who have interest-only loan, which could allow them
to get a lower and/or fixed interest rate. Lastly, a modification would
be helpful to homeowners who can no longer afford to make their mortgage
payments and would like to avoid foreclosure.
At the corner of modification and loss mitigation,
Sonja-Lucienne Cajuste, Esq.