Loan modification and Foreclosure site

I have done my best to compile a list of loan modification reviews of each bank.

Bank of America loan modification:

Here is my review of Bank of America when it comes to loan modifications. Bank of America has a long history of having dozens of pesky fees, 35 dollars each time one of their customer overdrafts. However customer support at Bank of America has been improving recently and I think that Bank of America as a whole will begin to start taking their customers wishes more seriously now that they have been through so much trouble with the economy.

Countrywide loan modifications

Countrywide is probably the most common lender that works with loan modifications. That is a good thing in my eyes, they obviously have much more experience and many more resources devoted to loan modifications. If I had to choose what lender to work with for a loan modification for myself, Countrywide would be the clear choice.

The biggest new “rule” that the government has come out with lately dealing with loan modifications is the 31 percent rule.

It states that the monthly mortgage payments of a loan that is in the process of being modified cannot exceed 31 percent of the homeowners monthly income.

That means if the homeowner is bringing in 3,000 dollars a month, their monthly mortgage payment cannot exceed 910 dollars theoretically.

That is great news for homeowners on the surface, but is it really beneficial?
In the end I see the new 31 percent rule as a stumbling block for getting loan modifications done in the first place. Banks/lenders will be much more hesitant to give out loan modifications if they can only charge a maximum of 31 percent of the homeowners income each month as a mortgage payment. If less loan modifications get done, there will be more foreclosures, which is a bad thing.

That is the number one question nowadays. With everyone and there brother in trouble financially because of the economy, loan modifications start to become more and more appealing.

Loan modifications work like this: Fred from Minnesota lost his job, he was a good guy who made good financial decisions for the most part, he certainly did not do anything irresponsible. However because he is getting barely any income each month, he has fallen behind on his mortgage payments and is facing foreclosure.

Fred wants to avoid foreclosure and hears about loan modifications.

He does his research, and finds out that a loan modification is perfect for him!

Fred then talks with his lender [usually a bank] and finds a loan modification attorney to represent him.

After 90 or so days of hard work and negotiation by everyone involved, a loan modification on the mortgage is finalized! Fred is paying roughly 50% of what he used to each month until he gets a job and is able to make his normal monthly payments again.

It is tough to sit here and talk about general loan modification laws, because each individual state is different to tell you the truth.

What is acceptable in South Carolina might not be acceptable in Wisconsin or vica-versa.

The main differences between states is the amount of regulation that goes on. Regulation can be a good thing and a bad thing at the same time.

Sometimes regulating who can work in a loan modification dealing and what type of loans can be modified can stop common loan modification scams and heartbreak from occuring.

Other times,  loan modification laws that are very regulated can cause there to be excess hassle in the process and the regulation can just get in the way of the dealing in general.

The best way to find out loan modification laws in your area is to talk to someone in the financial field that have had experience with loan modifications  in the past. It might not be cheap, but the guidance your partner will give you should be worth it in the end.

New Jersey loan modification

The state of the New Jersey real estate market has been through its ups and downs the past few years, but the future looks bright in comparison with other states.

In 2008 New Jersey was in the top 10 in foreclosed homes per house in the nation out of 50 states, that is definitely not something to be proud of. Although foreclosures were up 32% year over year from 2007 to 2008, foreclosures were actually down 34% this last month, which is excellent news!

One out of every 600 homes in New Jersey are undergoing foreclosure at the moment. That is not as bad as a statistic as others that I have seen, it is still nothing to be proud of.

The best way to ensure that your loan modification will go well in New Jersey is to look into getting a loan modification attorney or repersentative to make sure that you can avoid foreclosure.