How does a loan modification work?

The theory behind a home loan modification is quite simple. Also referred to as a loan workout, it is when your current lender agrees to modify (change the terms) of your mortgage in order for you to afford your monthly payments and help avoid foreclosure.

Often, homeowners find our law firm after they have attempted to obtain a loan modification on their own and or were unsuccessful in working with a non-profit. If this is you, the Fransen and Molinaro Law Firm is the perfect solution to help you make your case with your mortgage servicer.

OK, back to the lesson….. Read more

Slow Start to U.S. Plan for Modifying Mortgages

The NY Times says Washington is off to a slow start:

So far, two months after the program went into effect, about 55,000 homeowners have been extended loan modification offers, according to a senior administration official. At the same time, foreclosures continue apace. RealtyTrac reported Wednesday that foreclosure filings reached 342,000 last month, up 32 percent from April 2008. Moody’s has estimated that more than 2.1 million homeowners will lose their homes this year.

Because of the size and complexity of the modification program, the administration has only recently assembled most Read more