Our Los Angeles mortgage loan modification attorneys are encouraged by the news that there won't need to be extensive political wrangling to make it a reality. That's because there are large portions of President Obama's mortgage refinancing package that won't require Congressional approval. They are essentially administrative improvements that could take place within just a few weeks.
However, a number of these improvements won't help much if you are underwater on your mortgage. Most of these measures are for borrowers who are current on their payments. But it is a start.
Mortgage loan modification could be an alternative to a Los Angeles foreclosure, although your best course of action is a consultation with an experienced attorney who can sift through all the factors in your situation to help you determine your best options.
The first of the Obama administrative changes that is likely to be enacted is that the refinancing process will be fast-tracked by a number of executive branch offices. So for example, individuals who aren't behind on their mortgage payments will be able to get a quicker refinancing on their homes because the Federal Housing Administration is planning not to count those deals against the banks. Typically, all instances of refinance are counted as a mark against the lending institution. Because a poor rating could impact a bank's ability to cover loans for the FHA, they are likely to shy away from streamlined refinancing. This will prevent that from being an issue. Ultimately, that means more homeowners can get a lower rate on their mortgages.
Additionally as part of this, a number of offices, such as the Agriculture Department, are slated to make it easier to refinance by waiving some of the requirements for things like appraisals and credit reports to get it done. The top requirement for homeowners is to be on time with payments.
Perhaps the measure that is likely to be the most beneficial to consumers who are teetering on the edge is a formal mortgage service bill of rights. Some of these rules are already in place, but the president's order would basically require all of the federal housing agencies to enforce a set of minimum standards on mortgage services. This would include requiring that banks extend immediate offers of loan modification or a forbearance as soon as it becomes clear the borrower might be hitting the financial skids.
For consumers, it's going to mean having one, continuous point of contact throughout the process. It's also going to require the banks to provide you, upon request, with access to all of the important documents the bank holds on your account. (This had been a problem in the past, as many banks weren't keeping the proper paperwork on file themselves, and in some cases, routinely claimed it had been lost.)
Additionally, it's going to mean help if you are denied a loan modification or other form of assistance. The president's plan will mandate a right of appeal in a review process that is formal, which would give consumers another chance to make their case.
The Nader Law Firm will provide a free consultation to help guide you in making a decision that works for you. In Encino, Glendale and Los Angeles, just call 1-800-568-0707.