Archive for the ‘las vegas mortgage refinancing’ Category

6 Benefits and 2 Drawbacks to Refinancing a Las Vegas Mortgage

Friday, September 23rd, 2011

One of the most common options for dealing with a deteriorating mortgage condition in Las Vegas is refinancing it.

“Refis,” as they’re called, are more conventional than, say, paying until you hope to secure new income to avoid a default, short selling, offering the bank the deed in lieu of foreclosure, discharging secondary loans if possible, or strategically defaulting on the loan. Refinancing simply means the borrower takes on new debt to pay off an old debt.

There are six benefits and two drawbacks to refinancing that many borrowers may not be considering.

(1)  Avoiding default. The refinanced loan contains more favorable terms to accommodate the borrower’s current circumstances, which means that people who are about to fall behind on their mortgages are less likely to default if their monthly payments are lowered in exchange for a longer term.

(2)  Fixed interest rates. Frequently, people who refinance originally chose adjustable rate mortgages and the rates have since jumped. Most refis allow the borrower to switch to a fixed rate mortgage to reduce exposure to adverse market forces.

(3)  Relief for an underwater house. If the balance on the primary mortgage is greater than the house’s value, refinancing can make it easier for the homeowner to rebuild equity.

(4)  Minimal effect on your credit rating. Homeowners are often sensitive to a financial move’s affect on their credit scores. There are more important things in life, but to those who care about accessing future credit lines refinancing is a reasonable option.

(5)  No prejudice to second mortgage holders. Many people believe that the owner of a second mortgage will object to a homeowner refinancing the first. This often is not the case because a refinanced first mortgage improves the likelihood the subsequent holders will get paid. Thus, they will often give permission to homeowners to refinance.

(6)  Government support. The federal government’s Home Affordable Refinance Program (HARP) facilitates refis of up to 125% of a house’s value, including situations where homeowners have little equity and wish to avoid high mortgage insurance charges.

Refinancing brings two drawbacks to homeowners.

(1)  If your income drops and you can’t make the payments, you will be no better off.

(2)  If you lost all your equity, and despite the refi you haven’t turned your mortgage right side up, and you need to move for some reason, you will have to change your plan.

Making mortgage payments are a serious problem for homeowners in Las Vegas, but refinancing can help. Another option worth considering is bankruptcy, and experienced Las Vegas bankruptcy attorneys are here available to help you.

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 by calling 702-880-5554.

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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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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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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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Las Vegas Mortgage Refinancing Can Be Full Of Surprises

Monday, March 22nd, 2010

Many homeowners participating in the federal “Making Home Affordable” program, a federal mortgage assistance program, have found that the program benefits have not lived up to the political promises. Homeowners have discovered that this refinance process is not only difficult, but in some cases can be destructive to their credit.

The Making Home Affordable program is a $75 billion dollar loan modification program aimed at helping homeowners refinance their mortgages to terms they can afford. The program is actually two refinance processes: first, a refinance program for homeowners with Fannie Mae and Freddie Mac loans; and second, a modification program for everyone else. The “everyone else” program is the “Home Affordable Modification Program” (HAMP). Under HAMP, homeowners who have experienced financial difficultly (e.g. a job loss or high medical bills) and are struggling with their current mortgage payments can reduce their mortgage payment by lowering their interest rate up to two percent and extending the repayment period up to 40 years.

While the promise of refinance sounds like a blessing, the process can be both slow-moving and full of unexpected surprises. For instance, to qualify under HAMP the homeowner must, among other requirements, make all mortgage payments on time for a three-month trial period. In essence, the program requires timely payments that you can’t afford before the loan can be modified to a payment you can afford!

Homeowners who seek assistance under HAMP are also surprised by an immediate reduction of their credit score during the three month repayment period. By applying for a home loan modification, you are announcing to the credit industry that you are experiencing financial difficulty. This can lower your credit score by up to a staggering 150 points, making it difficult to obtain other types of credit including auto loans. This initial drop can only be rectified over time.

If you are experiencing financial difficulty, educate yourself to all your legal options. Only an attorney can advise you regarding your legal options including bankruptcy, debt settlement options, and government assistance programs. The experienced bankruptcy attorneys at Haines and Krieger can help you evaluate your financial position and choose the right option for your family.

For a free consultation or if you need any assistance from Las Vegas Bankruptcy Attorneys, or have questions about Las Vegas Chapter 7 Bankruptcy, or Las Vegas Chapter 13 Bankruptcy, or Las Vegas Debt Settlement, please call the offices of Haines and Krieger at 702-880-5554 today.

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Possible mortgage and foreclosure help from the federal government?

Sunday, September 13th, 2009

To date, most mortgage help for Las Vegas homeowners has come from state government in the form of the Nevada Foreclosure Mediation Program, which is just starting to take off.

However, recently there’s been some activity in Washington, D.C. indicating that maybe the federal government will finally provide some additional and much needed help to homeowners facing foreclosure.

Congressman Barney Frank (D-MA) said last week that he plans to pursue legislation that enable homeowners to use the bankruptcy process to modify their mortgages.  In other words, rather than rely on the good faith of a mortgage company to negotiate a loan modification, homeowners would be able to use the bankruptcy process to make that loan modification a reality.  Frank’s comments seem to be inspired by the lack of effort of the mortgage industry so far to try and remedy what remains a huge problem and a huge threat to our country’s economic recovery.

So if you’re facing foreclosure in Las Vegas, stay tuned for future developments on a possible “mortgage cramdown” provision.  And make sure you know where to find Las Vegas bankruptcy lawyers whom you trust and who have the experience and know-how to help you take full advantage of the bankruptcy laws and other tools available to you.

It may seem like the deck is stacked against individual homeowners.  But don’t lose faith.  There are still some good options available to provide the Las Vegas foreclosure help you need.  Get in touch with us for a free foreclosure consultation and we’ll make sure you have the best Las Vegas bankruptcy information available.

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