As Orange County mortgage loan modification attorneys, we were pleased to see a June 17 story in the Wall Street Journal underscoring some of the obstacles our clients face when they call their lenders to ask about loan workouts. The article details the duties of Kellina Lawrie, a former mortgage broker who now helps clients with mortgages serviced by J.P. Morgan Chase & Co. get mortgage loan modifications. Despite Lawrie's best efforts, the article said, loan modifications are still difficult and time-consuming for many Chase customers, some of whom face foreclosure while they wait.
Loan modifications take months, the Journal said, because they require substantial paperwork and are processed by a staff that is only now being bulked up to meet overwhelming consumer demand. However, another major part of the problem is the practice of bundling mortgages into securities and selling them as investments. This can make it difficult to figure out who actually owns the loan at issue, the paper said -- and investors have a legal right to object to loan modifications they believe threatens their investment. As a result, all Lawrie was able to offer one borrower mentioned in the article was a forbearance plan, which suspends payments temporarily but can't change payments. Another borrower profiled in the article waited 10 months for a loan modification, and a third is still waiting -- even though Chase is still pursuing a foreclosure.
Stories like these sound all too familiar to Rancho Cucamonga mortgage loan modification lawyers like us. On more than one occasion, we've encountered borrowers who are completely approved for a loan modification -- only to have the deal quashed at the last minute by a veto from investors who own a slice of the mortgage. Ironically, too much protectionism can actually hurt these investors (along with homeowners and lenders), because when loans go into foreclosure, they're unlikely to ever recoup their investments. In fact, a recent OC Register report said foreclosed homes in Orange County were selling for two-thirds of the value of the debt. Loan modifications are not without costs, but borrowers who want to keep their homes and stay out of financial trouble are highly motivated to pay, even if that puts them above market price.
Howard Law LLP has an active mortgage loan modification practice, helping homeowners throughout California remain homeowners, even when they run into financial trouble. We are proud to say that our West Covina loan modification lawyers have helped multiple homeowners change the structure of adjustable-rate and other "exotic" mortgages, lower interest rates and make other changes that kept them in their homes. Unlike the fly-by-night loan modification companies that have suddenly appeared in the past few months, we are a law firm, which means we are licensed professionals who face career-ending consequences for cheating our clients. And because we are Buena Park loan modification attorneys, banks pay attention when we call, because they know a lawsuit could follow.
If you know you need help getting your mortgage lender or servicer to consider changing your loan, you can contact Howard Law today for a free, confidential consultation. You can call us toll-free at 1-800-872-5925 or contact us online.