mortgage modification
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Will Partial Payments Delay Foreclosure?
If you have missed mortgage payments, you may wonder: Will partial payments delay foreclosure? In most cases, unfortunately, the answer is No. If your mortgage company actually accepts your payment, they will not apply it to your most recent bill. To stop or delay a foreclosure, you must get the bank to agree (in writing)…
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Missed Mortgage Payments: Your Options If You Default
If you have too many missed mortgage payments, your mortgage company will no longer accept payments from you. After too many missed mortgage payments (typically three), your lender will instead insist upon payment in full of the entire amount past due. The amount of missed mortgage payments, plus penalties and interest, is called the “arrearage.”…
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Top 6 Reasons Loan Modifications Are Denied
When facing foreclosure, the best way to get your mortgage back on track is to obtain a modification. You will need to complete your lender’s loss mitigation package. Loss mitigation involves the submission of various financial documents and a Request for Mortgage Assistance (or RMA). The lender will make a cursory review of your application, then…
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Get a Mortgage Modification with Chapter 13
When you cannot afford to pay your mortgage, there are a few possible outcomes, including a short sale or foreclosure. If you want to keep your home, however, the best solution is usually mortgage modification. Mortgage modification involves changing the terms of your mortgage loan so that it becomes more affordable to you. Mortgage modification…
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Loss Mitigation Waterfall Should Continue Post-MHA
In July 2016 the Consumer Financial Protection Bureau (CFPB) released a report titled Guiding Principles for the Future of Loss Mitigation. The report lists several “lessons learned” from the financial crisis and makes recommendations to mortgage lenders and servicers for a post-MHA era. One specific suggestion is the permanent adoption of the loss mitigation “waterfall” model. The…
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Foreclosures are Way Down, But Not in the District of Columbia
Nationally, foreclosures are way down, but not in the District of Columbia. According to CoreLogic’s National Foreclosure Report for June 2016, the U.S. foreclosure inventory declined by 25.9% and completed foreclosures declined by 4.9% compared with June 2015. The number of completed foreclosures nationwide decreased year over year represents a decrease of 67.5% from the…
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How to Write a Financial Hardship Letter
This article addresses how to write a financial hardship letter for loss mitigation, whether you’re seeking a modification, deed-in-lieu of foreclosure, or short sale. If you fall behind on your mortgage, you will have to submit a lost mitigation package to avoid foreclosure. Part of the loss mitigation package is the financial hardship letter (or “letter…
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Why is My Mortgage Company Suing Me in Washington, DC?
With just 97 completed foreclosures, the District of Columbia had the nation’s lowest annual number of completed foreclosures in January 2016. But Washington, D.C. also had the fourth highest foreclosure inventory rate in January 2016 at 2.3 percent. So why is my mortgage company suing me in Washington, D.C.? The answer is: because now they have…
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Beware of Offers to Modify Your Mortgage for a Fee
Since the subprime mortgage meltdown of December 2007 to June 2009, mortgage modifications have saved many homeowners from foreclosure. Yet many illegitimate companies and individuals have preyed on people seeking modifications. My advice to you is to beware of offers to modify your mortgage for a fee. On February 17, 2016, a federal grand jury…
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How Do I Save My Home From Foreclosure in Washington DC?
If you fall behind on your mortgage, you may find yourself asking: How do I save my home from foreclosure? Whether you want to keep your house or whether you simply want to avoid the damage a foreclosure does to your credit, you should explore alternatives to having a lender foreclose. An experienced Washington DC…
