Focus CPA Group, Inc. (562)281-1040

In these bleak economic times, it is not unusual to hear of or know someone in foreclosure. In response to this trend, the Government, the lenders, and private institutions are creating various programs to assist homeowners facing foreclosure. Determining which program suits you best is the difficult part, however.

Just a few years ago, refinancing your mortgage seemed to be the best option for the majority of homeowners. Refinancing was popular because homeowners counted on their homes? appreciation value, and they withdrew equity out of their homes to repay debts. Interest rates were low and lenders exercised leniency toward those to whom they loaned. Unfortunately, the situation today is nearly the diametric opposite, and homeowners must consider other options as alternatives to foreclosure. Among those options are loan modification, short sale, repayment plan, forbearance, reinstatement, and bankruptcy (always a last resort).

Performing a loan modification on your mortgage can result in the terms of your loan being modified to something you can afford each month. There are many ways you can modify your loan, but there is only one best way of doing it. If you modify your loan based upon the terms your bank offers you, you simply won?t receive the best deal possible. This is why it is important to choose a party not affiliated with your bank to negotiate your loan modification. Borrowers must recognize that a bank or lending institution is a business that is driven by profit. Accordingly, they will always offer you a deal that benefits them far more than it benefits you. They?ll offer you a short-term solution to a long-term problem and most borrowers default on their loan again within six months of their modification. A properly performed loan modification can reduce your principal, monthly payments, and interest. It is not uncommon to hear stories about people who have had their principal balance or monthly payments cut in half! It?s critical to understand that every case is different and the final outcome is dependent upon many variables, including the lender?s cooperation. The lenders will only agree to a foreclosure alternative if they are losing less money than they would be if they foreclosed on the property. It is the job of your negotiator to help them reach this conclusion based upon the results of a mortgage audit, a statement of the homeowner?s hardships, and so forth.