Archive for the ‘las vegas mortgage modification’ Category

6 Loan Modifications Facts for Las Vegas Residents

Saturday, October 1st, 2011

Las Vegas was hit badly by the housing bubble, and now many homeowners are facing mortgage debt that’s greater than the value of their homes. People in these situations have several options, such as continuing to pay the loan, refinancing, or short selling the house or offering the lender the deed in lieu of foreclosure. One other option is getting a Las Vegas loan modification. Here are a few important facts about them.

  1. Aside from the handful of large banks that have been offering “option ARM” mortgagors significant principal modifications, according to the New York Times [http://www.nytimes.com/2011/07/03/business/03loans.html?_r=4&ref=mortgages], the vast majority of modifications apply only to the interest payments on the mortgages. Only about three percent of mortgage modifications involve principal reducations.
  2. Creditors will often extend the life of the mortgage, whether to make up for the reduced interest or the lost payments.
  3. The government’s Home Affordable Mortgage Program (HAMP) helps borrowers obtain mortgage modifications with their lenders. Data on the program suggest that the median reduction in monthly payments was 40 percent, which amounts to $520 each month.
  4. Even those who are ineligible for HAMP, for whatever reason, can still ask for a modification from their banks, which are often willing to cooperate.
  5. Any company that offers to help you with a mortgage modification and requires a fee in advanced is breaking the law. Modification scams do exist.
  6. Most importantly, the median HAMP modification still resulted in a mortgage worth 118% of the home, which means it only reduces the negative equity but doesn’t eliminate it. Until the equity turns positive, a single disaster such as a job loss can wipe out the benefits of the modification. Sadly, many modified loans fail.

Las Vegas mortgage modifications may be beneficial to homeowners. We encourage people in these circumstances to look at all their options but to consider the benefits of bankruptcy, especially because the automatic stay that goes into effect upon filing halts any foreclosure action against your home.

For more questions about bankruptcy in Las Vegas, please feel free to contact an experienced Haines & Krieger Las Vegas bankruptcy attorney for a free initial consultation.

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Mortgage Modifications, Short Sales, Unnecessary for Discharged Mortgages

Saturday, September 3rd, 2011

Financial hardships can strike Las Vegas residents more than once. Worse, they often occur to people who have already filed a Chapter 7 bankruptcy and received a discharge. This means a second bankruptcy is not an option.

For those who have underwater mortgages, that is, they owe more on their houses than those houses are worth. For them, a mortgage modification or a short sale may be the only remaining option. Whether they’re eligible is one thing, but more importantly, we need to know what happened in the Chapter 7 bankruptcy:

Did they sign a reaffirmation agreement with the bank even though they were making regular payments and not in danger of foreclosure?

What is a reaffirmation agreement and why is it important?

Read on.

A reaffirmation agreement is a deal between a bankruptcy petitioner and a secured creditor. The agreement keeps the secured property out of the bankruptcy estate so long as you promise to keep making payments on the debt. It requires three signatures: the debtor’s, the attorney’s, and the lender’s. The attorney must affirm that the debt will not constitute an “undue hardship” to the petitioner, which means the debtor’s household income will still be positive after subtracting the amount of payments. The attorney’s signature also demonstrates that the debtor was not coerced into signing the agreement.

If the homeowners were making payments and were not at risk of foreclosure, they probably exempted it because Nevada’s bankruptcy exemptions allow petitioners to keep up to $125,000 of homestead value out of the bankruptcy estate. After their Chapter 7 bankruptcy, their mortgage would’ve been discharged. This means they do not need to continue making payments on the house. In these circumstances, a modification or a short sale is unnecessary. For those who signed a reaffirmation agreement, however, the situation is different. The homeowners did not discharge their mortgage, so they are now stuck negotiating with a lender that has a far better bargaining position.

The lesson of this story is that Las Vegas homeowners seeking bankruptcy protection need experienced legal counsel to ensure their property is protected.

For more questions about bankruptcy in Las Vegas, please feel free to contact an experienced Haines & Krieger Las Vegas bankruptcy attorney for a free initial consultation. Call us at 702-880-5554 today!

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Banks Are Not Playing Fair During Home Loan Modification

Friday, July 1st, 2011

National banks that took federal bail-out money also agreed to participate in government home modification programs.  These banks have created in-house loan negotiators to assist in home-loan modifications, which may reduce loan principle or interest to adjust the loan to an affordable rate. Many American homeowners have applied for these programs, but few have been approved. In many cases the empty promise of home loan modification leaves the homeowner in a worse position than when he started.

It has become clear that these banks are simply not playing fair. Several lawsuits have been filed against national banks alleging fraud. A federal lawsuit was recently filed by the State of Nevada Attorney General against Bank of America, the nation’s largest home loan servicer, alleging deceptive practices. Additionally, a class-action lawsuit against Bank of America is pending in Massachusetts federal court.  These suits claim that Bank of America deceived consumers into depleting their savings by making mortgage payments based on false hopes they’d be eligible to modify their home mortgages. The lawsuits allege that BOA accepted $25 billion from the U.S. government in 2008 as part of the Troubled Asset Relief Program (TARP), but has failed to participate in programs such as the Home Affordable Modification Program (HAMP) aimed to minimize foreclosures.

If you are in need of a home modification, review your options with an experienced Las Vegas bankruptcy attorney at Haines and Krieger. Call us at 702-880-5554 to set up your free consultation. Many bankruptcy debtors are able to strip away a second or third mortgage, or pay past-due payment over three to five years. Bankruptcy debtors can also apply for government programs such as HAMP during the bankruptcy case, while under the protection and supervision of a federal bankruptcy court judge.

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HAMP Calculator Helps Determine Modification Eligibility

Wednesday, May 25th, 2011

The U.S. Treasury Department has developed an online calculator to assist homeowners in determining eligibility for assistance under the federal Home Affordable Modification Program. HAMP is a federally funded program that defines the process for borrowers who are in default, at risk of imminent default, or in foreclosure to modify their home mortgage to a more affordable monthly payment targeted at 31 percent of their monthly gross income.  The HAMP calculator, found at CheckMyNPV.com, is designed to calculate the net present value (NPV) of their mortgage, and can be used by homeowners prior to applying for a HAMP modification with their lender. The NPV is a formula used to determine your eligibility for a loan modification under the HAMP Program. The Treasury Department cautions that the calculator “provides only an estimate of a servicer’s NPV evaluation and is intended for use only as a guide.”

Unveiling the calculator at CheckMyNPV.com is the latest move to streamline the HAMP process. It comes on the heels of an announcement by the Treasury Department to require that servicers designate a single point-of-contact through the entire default resolution process.

If you are behind on your mortgage payments, or can’t afford your current mortgage payment, you have options! In addition to the federal bankruptcy laws, HAMP is one of several government programs that are available to homeowners in distress. In some cases, bankruptcy can provide time for the homeowner to negotiate lower payments with the lender, repay mortgage arrears, or even strip away a second or third mortgage loan.

The housing bubble has burst, but that doesn’t mean the fallout must rain down all over you and your family. Protect your home by taking advantage of the legal processes in place to refinance, modify, or discharge your home debt. Speak with an experienced Haines & Krieger Las Vegas bankruptcy attorney and discuss your legal options by calling us at 702-880-5554.

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4 Frequent Las Vegas Mortgage Scams

Wednesday, April 13th, 2011

With difficult financial times come….scam artists.  And if you’ve read this blog or watched the news, then you know that the mortgage world is no exception.  Mortgage problems add a lot of pressure to people’s lives, and as a result turn many Las Vegas residents into scam victims.

Below are 4 frequent mortgage scams that you might encounter in Las Vegas.

1.  Reverse mortgage

A reverse mortgage scam means that the scam artist has convinced a homeowner (often a senior citizen who has a fully paid home but could use more cash) to allow them to take out a mortgage against their home that would enable the homeowner to live in the home for “free.”  However, what really happens is that the scam artist who promises to help set up the loan keeps the money from the transaction and leaves the homeowner with a big new mortgage to pay off.

2.  Short-sale

A short-sale fraud means a homeowner is trying to put one over on a lender.  Typically, a short-sale happens when a mortgage is underwater.  The homeowner has to sell the home for less than the mortgage amount.  And the lender agrees to take that amount as full payment for the mortgage.  However, in some cases homeowners might get tricky if they find a better price for their home than the agreed-to short-sale price and end up with a windfall from their sale.  This is a form of fraud committed by the homeowner and is illegal.

3.  Loan modification scam

Loan modification scams generally involve the paying of up-front fees to one of those services that says they can help you get a loan modification.  DO NOT TRUST ANY LOAN MODIFICATION SERVICE THAT REQUESTS AN UPFRONT FEE.  This is now an illegal practice.  These services are notorious for taking your money and then the homeowner never hears from them again.

5.  Affinity fraud

An affinity group is any member or community group you might be a part of, such as your church or a club or any other community that shares a similar interest.  Scam artists like to infiltrate these groups sometimes and then start signing people up for a scheme.  They rely on the trust chain and goodwill within the group.  This makes it hard to avoid for some people.  But in a nutshell, if someone, even a friend, wants you to do hand over money for some sort of business opportunity that sounds too good to be true, don’t be afraid to say no.  Or at least be skeptical.

For more questions about mortgage scams and other bankruptcy-related questions, please feel free to contact an experienced Haines & Krieger bankruptcy attorney for a free initial consultation by calling 702-880-5554.

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Nevada: Foreclosure-Gate Causing Chaos In The Mortgage Industry

Thursday, October 14th, 2010

Recently allegations have been made against several prominent mortgage lenders claiming the use of flawed and in some cases fraudulent documents during the foreclosure process.  In one GMAC Mortgage has been accused of using a “notary-mill” to crank out upwards of 10,000 foreclosure documents each month without reviewing the documents.  Similar accusations have been leveled at Bank of America.  In states that use judicial foreclosure, this activity amounts to a fraud upon the court and is illegal.

JPMorgan Chase, Ally Bank’s GMAC Mortgage and PNC Financial have all suspended foreclosures in states that require a judge’s order.  Bank of America has suspended all foreclosures in all 50 states.  State attorney generals across the nation have joined an investigation into these foreclosure practices.  In Congress, Nancy Pelosi and Christopher Dodd, have called for a federal investigation, and U.S. Attorney General Eric Holder said he is looking into the matter.

Potentially millions of foreclosures across the United States are subject to challenge.  In some cases courts are denying the lender’s foreclosure suit because it cannot produce clear title.  A recent lawsuit in federal court in Louisville alleges that banks participating in MERS (a mortgage document clearing house) conspired to produce false promissory notes, affidavits, and mortgage assignments to be used in mortgage foreclosures.  Similar class actions have been filed against MERS in Florida and New York.

As a result of this mortgage document fiasco, one title insurance company, Old Republic National Title Insurance, has announced that it will no longer write new insurance policies for homes that have been foreclosed on by JPMorgan Chase and GMAC Mortgage.  Homeowners who have purchased foreclosed homes may not have clear title and may face difficulty in selling their homes in the future.

If you are facing foreclosure, consult with an experienced Haines & Krieger bankruptcy attorney and discuss your options.  There are many options for homeowners who are unable to make their mortgage payments.  Your bankruptcy attorney can discuss your options and protect your legal rights. Call us at 702-880-5554 today to set up your free consultation.

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Ways Las Vegas homeowners benefited from the mortgage modification process

Wednesday, October 13th, 2010

Two ways Las Vegas homeowners have benefited from the mortgage modification process (even if the modification is not ultimately granted)

Many Las Vegas homeowners facing foreclosure may not be able to get a mortgage modification through the Making Homes Affordable Program.  But that doesn’t mean they haven’t still benefited from HAMP.

Say what?

Here are two ways Las Vegas homeowners have benefited from HAMP even when they don’t actually get a mortgage modification:

1.  They save money during the process.  Mortgage payments are not required during the HAMP application process.  And mortgage lenders usually do not pursue foreclosure during the course of the application process.  So even in cases where their modification was not approved, many Las Vegas homeowners still saved money and gained some breathing room to figure out their next move.

2.  Delays in the process.  When the bank is slow to respond or has trouble locating documents, or when homeowners have misplaced documents or been slow to respond, the process is delayed.  And in this scenario, the delays have worked to the benefit of the homeowners since they were not making mortgage payments during that time.

We do not advocate using the HAMP application process intentionally as a strategy for delaying foreclosure.  But it is worth being aware that there are at least some instances, small though they may be, where the system can actually work for the homeowner’s benefit rather than the mortgage industry’s.

Please feel free to contact an experienced Haines & Krieger attorney at 702-880-5554 if you have questions about or need help with the foreclosure process in Las Vegas.  We’re doing our best to help Las Vegas residents move forward with their lives and rebuild our community.

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