How Important Is It To Be Represented by an Expert in Loan Modifications?
You probably know already. I recommend that people who are facing foreclosure and who want to save their homes get help from either a lawyer or an expert skilled in loan modifications. The reason I do this is simple.
Represented People Are More Likely to Save Their Homes
On November 18 NeighborWorks America sent out a press release. In this they commented on the results of the program they run for the Department of Housing and Urban Development. During the first year of this program, January 1 through December 31, 2008, people facing foreclosure who were represented by experts at agencies in the program were 60% more likely to save their homes than those people who tried to do it on their own and did not get help.
Here is what their study found:
Represented people were 60% more likely to save their homes from foreclosure than those who were not represented.
These people were provided the information, assistance and guidance they needed to help them find a solution to foreclosure.
These people were more likely to be given a loan modification than those who were not represented.
Those who had their loans modified had their monthly payments reduced an average of $454 more than those who got modifications without representation.
What is This Representation Program?
If you go to the website for the Making Home Affordable Modification Program, www.makinghomeaffordable.gov, look at the very top almost in the middle of the page. You will see Find A Counselor. If you click on that you will be taken to a page which talks about the free counseling thru HUD. If you click on Find a HUD-approved counselor there, you will be taken to another page there you can get the counseling agencies by state. This program is run by NeighborWorks America and is the one they talked about in their press release.
The Surprising Thing about These Numbers
Yes, there is something surprising. These are the results from last year. Last year there was no real focused effort to help people save their homes from foreclosure. There was no Making Home Affordable Modification Program.
On the majority of loan modifications that were done the mortgage companies were still trying to recover all of the money that people facing foreclosure were behind in their payments. The companies tacked penalties and interest onto this. Normally the monthly payments were increased – not reduced.
The Results Now Have To Be Better
With the severity of the foreclosure crisis and the Making Home Affordable Modification Program there has been far more attention on helping people save their homes from foreclosure. More loans are being modified now. The reductions in the monthly payments are far greater now than they had been.
So we can only assume that the gap has widened. People with representation have to be fairing much better than those not represented.
One Would Also Have to Believe That . . . .
Those people represented by lawyers have to be fairing much better because lawyers normally would be able to accomplish more than experts without law degrees. Because representation by lawyers is primarily a local matter and no nationwide organization is responsible for overseeing this, I doubt that we will ever see how effective lawyers are in getting their clients loan modifications.
You Can Choose to Do What You Want
However if you are serious about saving your home from foreclosure, you will be far better off asking a lawyer or an expert in loan modifications to represent you. You have too much to lose if you represent yourself.
If you want a lawyer or an expert in loan modifications to represent you, remember that you still want to control your case from beginning to end. You do that by learning as much about the process and the steps you can take to save your home. There is much information on this in my EBook which you might find valuable. You can find out more about it by clicking Stop Foreclosure.
Much Success,
Mark Elkins
Mark,
I am currently going through a foreclosure with IndyMac. They were “reviewing” our mortgage for modification and still are. I got served with the foreclosure papers, while my loan was in review and there is a set hearing date for the end of January. I’ve called them numerous times, inquiring on my review process and they kept telling me that it’s still in review until one day they realized that a page was missing. They are giving me a run around.
Is there any legal action I can take to prevent them from foreclosing? They offer a repayment plan with a downpayment of $10,500 but I can’t get that much money right now. I have three little kids. I read your book but unfortunately could not find anything that pertained to me except the Reg Z. disclosure was a bit incorrect.