Beck Finance Group Services
Loan Modification
In a loan modification situation, we work with your lender/servicer to make changes to your existing loan, giving you the ability to make the payments and stay in your house based on your current financial situation. While there are a number of changes that can be made to a loan – loan type, interest rate reduction, principal reduction, extension of the length of the term, and more – each situation is unique and we work with you and lender/servicer to find the right combination of changes to allow you to stay in your home and make your payments.
While loan modifications are not new, the pressure on lenders today is far greater and modifications have become more common. The costs of foreclosure can affect a lender’s profits, and even their ability to survive. As a result, lenders now look at loan modifications as a tool they can use to keep the homeowner in the property with a loan that continues to perform – a win-win situation for everyone involved.
And you don’t have to be behind in your payments or already in the foreclosure process for a loan modification to be an option. While that may have been the case in the past, lenders recognize they can avoid those costs by working with you before you can’t make your payments. The sooner we begin working with your lender, the better the chance we can resolve the issue early and avoid unnecessary costs for both you and the lender. In fact, if you’ve missed one or more payments but the foreclosure process has not started, we may be able to get the lender to offer you relief and add the amount of any missed payments onto the end of your loan.
Because there are so many different ways a loan can be modified, and because different lenders have different requirements and ways of dealing with modifications, we cannot tell you how your particular loan may change. But rest assured that our staff and the professionals we work with will strive to find a situation that works for you based upon your unique situation.
Forbearance
Sometimes, you don’t need anything more than some time to make up one or more missed payments. In that situation, the right solution may be to negotiate a forbearance agreement with your lender.
A forbearance agreement is often times the easiest solution to reach with the lender for the simple reason that they don’t have to do anything to modify the terms of your loan and recognize they only have to agree to give you additional time to make up the missed payment(s). With a forbearance agreement, you continue to make your normal monthly payments, and agree to a manageable payment plan for any missed payments.
We can help negotiate a forbearance agreement with your lender, and will be ready to do so if you agree that is the solution that makes sense for you.
Short Sale
A short sale occurs when your lender agrees to allow you to sell your home for less than the amount of the loan in return for the proceeds from the sale and a forgiveness of any amount over that received in the sale. Sometimes, when mortgage payments are simply too high, a modification or forbearance won’t work, and selling the property for an amount equal to or higher than the remaining loan balance is not possible, negotiating a short-sale with the lender is the best solution. Though you will not be able to remain in the property if a short sale occurs, it will allow you to walk away once the sale is complete without owing the lender anything more.
Whether to allow a short sale is a decision the lender has to make. Often times, they will allow a short sale to avoid a foreclosure and limit the amount they expect to lose through the foreclosure process. For the homeowner, a short sale is often faster and less expensive than going through a foreclosure. But there are some important points to keep in mind when considering a short sale.
First, a lender is more likely to allow the short sale to occur when the foreclosure process has already begun. Second, what each lender requires to permit a short sale will differ – some will accept the “best offer,” while others will require a minimum sale amount. Third, a short sale can involve delays if another lender (such as a lender with a second lien on the property) objects to the short sale. And finally, a short sale can have important tax consequences for you so we always recommend you seek qualified tax advice from a professional before agreeing to a short sale.
Deed In Lieu of Foreclosure
A deed in lieu of foreclosure, sometimes referred to as a “deed in lieu” or “DIL”, offers certain benefits to both the borrower and lender when used correctly. For homeowners who can no longer afford their mortgage and do not qualify for a modification, a deed in lieu may be appropriate. It allows the borrower to give the property back to the lender without having to go through the pain of foreclosure, and the borrower is typically released from the debt associated with the mortgage.
Before agreeing to a deed in lieu, your lender will usually require you to allow them to do a walk-through of the property. You should also be aware that a deed in lieu will impact your credit history negatively, but our experience is that it is viewed more favorably by creditors than a foreclosure or bankruptcy.
Bankruptcy
We believe that bankruptcy should always be a last resort. However, sometimes it is the only option that remains. If, based upon your unique situation, we do not believe a loan modification or other solution will work for you, we may recommend bankruptcy. This is never a recommendation we make easily, but in certain circumstances it may be the only viable solution for a client.
Bankruptcy allows consumers to get a fresh start by forgiving certain types of debt. When a bankruptcy is filed, there is an “automatic stay” that starts immediately and stops your creditors from trying to collect on any debt while the bankruptcy is being resolved. Though certain creditors may be allowed to continue to collect during the process, only the bankruptcy court can give them permission to do so. At the end of a successful bankruptcy case, certain debts are “discharged” – meaning, the consumer is no longer liable for the debt – while others, such as a mortgage or car payment, may remain if the consumer wishes to keep the house or car.
There are different kinds of bankruptcies, and we will discuss these with you if appropriate. In the event Beck Finance Group is unable to handle your bankruptcy for you, we will be happy to refer you to an experienced bankruptcy attorney who can help.
In a loan modification situation, we work with your lender/servicer to make changes to your existing loan, giving you the ability to make the payments and stay in your house based on your current financial situation. While there are a number of changes that can be made to a loan – loan type, interest rate reduction, principal reduction, extension of the length of the term, and more – each situation is unique and we work with you and lender/servicer to find the right combination of changes to allow you to stay in your home and make your payments.
While loan modifications are not new, the pressure on lenders today is far greater and modifications have become more common. The costs of foreclosure can affect a lender’s profits, and even their ability to survive. As a result, lenders now look at loan modifications as a tool they can use to keep the homeowner in the property with a loan that continues to perform – a win-win situation for everyone involved.
And you don’t have to be behind in your payments or already in the foreclosure process for a loan modification to be an option. While that may have been the case in the past, lenders recognize they can avoid those costs by working with you before you can’t make your payments. The sooner we begin working with your lender, the better the chance we can resolve the issue early and avoid unnecessary costs for both you and the lender. In fact, if you’ve missed one or more payments but the foreclosure process has not started, we may be able to get the lender to offer you relief and add the amount of any missed payments onto the end of your loan.
Because there are so many different ways a loan can be modified, and because different lenders have different requirements and ways of dealing with modifications, we cannot tell you how your particular loan may change. But rest assured that our staff and the professionals we work with will strive to find a situation that works for you based upon your unique situation.
Forbearance
Sometimes, you don’t need anything more than some time to make up one or more missed payments. In that situation, the right solution may be to negotiate a forbearance agreement with your lender.
A forbearance agreement is often times the easiest solution to reach with the lender for the simple reason that they don’t have to do anything to modify the terms of your loan and recognize they only have to agree to give you additional time to make up the missed payment(s). With a forbearance agreement, you continue to make your normal monthly payments, and agree to a manageable payment plan for any missed payments.
We can help negotiate a forbearance agreement with your lender, and will be ready to do so if you agree that is the solution that makes sense for you.
Short Sale
A short sale occurs when your lender agrees to allow you to sell your home for less than the amount of the loan in return for the proceeds from the sale and a forgiveness of any amount over that received in the sale. Sometimes, when mortgage payments are simply too high, a modification or forbearance won’t work, and selling the property for an amount equal to or higher than the remaining loan balance is not possible, negotiating a short-sale with the lender is the best solution. Though you will not be able to remain in the property if a short sale occurs, it will allow you to walk away once the sale is complete without owing the lender anything more.
Whether to allow a short sale is a decision the lender has to make. Often times, they will allow a short sale to avoid a foreclosure and limit the amount they expect to lose through the foreclosure process. For the homeowner, a short sale is often faster and less expensive than going through a foreclosure. But there are some important points to keep in mind when considering a short sale.
First, a lender is more likely to allow the short sale to occur when the foreclosure process has already begun. Second, what each lender requires to permit a short sale will differ – some will accept the “best offer,” while others will require a minimum sale amount. Third, a short sale can involve delays if another lender (such as a lender with a second lien on the property) objects to the short sale. And finally, a short sale can have important tax consequences for you so we always recommend you seek qualified tax advice from a professional before agreeing to a short sale.
Deed In Lieu of Foreclosure
A deed in lieu of foreclosure, sometimes referred to as a “deed in lieu” or “DIL”, offers certain benefits to both the borrower and lender when used correctly. For homeowners who can no longer afford their mortgage and do not qualify for a modification, a deed in lieu may be appropriate. It allows the borrower to give the property back to the lender without having to go through the pain of foreclosure, and the borrower is typically released from the debt associated with the mortgage.
Before agreeing to a deed in lieu, your lender will usually require you to allow them to do a walk-through of the property. You should also be aware that a deed in lieu will impact your credit history negatively, but our experience is that it is viewed more favorably by creditors than a foreclosure or bankruptcy.
Bankruptcy
We believe that bankruptcy should always be a last resort. However, sometimes it is the only option that remains. If, based upon your unique situation, we do not believe a loan modification or other solution will work for you, we may recommend bankruptcy. This is never a recommendation we make easily, but in certain circumstances it may be the only viable solution for a client.
Bankruptcy allows consumers to get a fresh start by forgiving certain types of debt. When a bankruptcy is filed, there is an “automatic stay” that starts immediately and stops your creditors from trying to collect on any debt while the bankruptcy is being resolved. Though certain creditors may be allowed to continue to collect during the process, only the bankruptcy court can give them permission to do so. At the end of a successful bankruptcy case, certain debts are “discharged” – meaning, the consumer is no longer liable for the debt – while others, such as a mortgage or car payment, may remain if the consumer wishes to keep the house or car.
There are different kinds of bankruptcies, and we will discuss these with you if appropriate. In the event Beck Finance Group is unable to handle your bankruptcy for you, we will be happy to refer you to an experienced bankruptcy attorney who can help.
