Mortgage Loan Modifications, Short Sales,
& Deeds in Lieu of Foreclosure
If your home loan is in default and you
are facing a possible foreclosure, you have options. When a
bankruptcy may not be your best option, a mortgage loan
modification, short sale, or a deed in lieu of foreclosure may
be a good alternative. Attorney Louis W. Mountzoures can help
you review all your legal alternatives regarding a potential
foreclosure, and can help you if you are considering, or should
be considering one of them.
Mortgage Loan Modification
Despite all the government and media
hype, voluntary loan modifications occur only about 10% of the
time. That number can substantially increase if there is
litigation or bankruptcy. Your chances of obtaining a
substantial loan modification can also be greatly improved if
the lender has violated the law. Attorney Louis W. Mountzoures
can help you gain negotiating leverage by finding violations of
the law or capitalizing on provisions of the bankruptcy code.
In Massachusetts, voluntary loan
modification programs of different companies vary. Most loans
are owned in pools by “trusts” and not by the servicing agent
with whom you deal. The contract between the trust and the
servicing agent, typically limits the number of loans that can
be modified in a given pool. However, that restriction is lifted
in the event of a bankruptcy or litigation.
Most servicing agents are understaffed and overwhelmed. A
mortgage loan modification can take months and usually involves
rejection or a token change in the loan terms. At the same time,
the countdown to foreclosure sale continues. Homeowners have
little time to act if a modification is not granted.
The loan modification process can be
complex, and it is easy for a lender or servicing agent to take
advantage of you. Using an experienced attorney to assert your
rights gets you to the front of the line in this process. The
possibility of litigation or bankruptcy should also increase
your negotiating leverage with your lender. Our firm will assert
your rights and alternatives to your lender.
Short Sales
If you owe more than your home is
currently worth and are looking to sell, a short sale may be
another alternative. With a short sale in Massachusetts, you may
be able to sell your home to a buyer who is willing to pay less
than the current mortgage amount that you owe. You will then
give all the proceeds of the sale directly to the lender, and
with their agreement, fully satisfy your debt.
Deed in Lieu of Foreclosure
A deed in lieu of foreclosure may be
also be another option if you owe more than your home is
currently worth. During this process, and with the lender’s
agreement, you surrender all claims to your house, and give the
deed to your lender, avoiding a foreclosure, and fully
satisfying your debt.
Our firm helps homeowners in Massachusetts assess their
financial options when facing a possible foreclosure.
Call Attorney Louis W.
Mountzoures to schedule your free consultation.
