HAMP Trial Modifications: Are You Home Free?

Homeowners across the country think when they receive a trial loan modification agreement from their lender that they're 'home free". Well, think again because nothing could be further from the truth from what we've seen. I'm not going to quote statistics because I don't want to scare you. But what you need to know is, simply because your lender has you on a trial mod payment plan doesn't mean your home free. If you don't watch out, you could be homeless! It's important borrowers understand that while making reduced payments to their lender they're falling deeper into foreclosure.

Think about it; if you're not paying them and they can get something out of you they will. After all, the company that's servicing your mortgage is a debt collector, nothing more, nothing less. I mean it makes a lot of sense once you break it down. Let's say you sold someone a car and carried the financing on it. A couple years down the road they stop paying you and the car is now only worth about half of what's owed. If you could get them to pay you something in the mean time wouldn't you? If you're smart you would get what you can when you can get it and then try and get back your car later and sell it at a loss. Well, do you think your mortgage servicing company is really losing money while they're raking in penalties and fees? Trust me, when they foreclose they will get paid all the monies owed by the investor plus interest. 

If you are currently in a trial loan mod and really want to know your chances for a permanent loan modification you need to know if you're NPV positive or negative. Net Present Value is the actual value of the loan post foreclosure, short sale or modification. In addition, if you are several payments behind you might qualify for a real principal reduction if you have a 2nd mortgage through Chapter 13 bankruptcy. What's really most important here is protecting your home and your family, right? The bankruptcy attorneys at the Law Offices Zhou & Chini do more than just file bankruptcy, we protect consumers rights. If you are struggling with your mortgage payments, currently in a trial mod, or recently denied a loan modification you need to act fast or you might lose your home. Call us today at (800) 972-9600 and schedule a free consultation or visit us on-line at ZhowChiniLaw.com