Feldman Law Center

By now you have surely heard the term “subprime mortgage crisis” in the news. It is a phenomenon that is being talked about around dinner tables, on the evening news, and in discussions over the radio waves. It is a problem that nearly everyone has acknowledged, but few have offered effective solutions for.

The subprime mortgage crisis is a far-reaching financial problem that had its origins in faulty home mortgages. These mortgages are now considered faulty primarily because they were issued to people who couldn’t afford such a large mortgage, or because the interest on the mortgage was adjustable, and could have a huge affect on the size of monthly payments. Because of these types of loans being issued, many homeowners have defaulted. The result has been a huge rise in delinquencies and foreclosures, usually either because the homeowner took on a bigger mortgage than he or she could pay for, or because the interest rate on the loan adjusted so much that the monthly payments were impossible to pay.

Lenders, bankers, financial analysts, and even borrowers are all being blamed. But regardless of who is to blame, the world now finds itself in a situation that needs a solution. For borrowers who have fallen victim to the subprime mortgage crisis, and who have an unmanageable mortgage, some common solutions are filing bankruptcy, foreclosing, selling the house via a short sale, or even doing nothing to remedy the situation. All of the above possibilities involve lots of worry and financial hardship, not to mention the burden of finding somewhere to live while money is tight and access to credit is limited. The attorneys of the Feldman Law Center believe that home loan modifications may be the solution to this huge financial crisis.

For many homeowners, having an attorney work out a loan modification for them would enable them to stay in their homes, and prevent the damage to their credit scores that is inevitable with foreclosure or bankruptcy – damage that lasts a decade. If people stay in their homes, there will be fewer rock bottom-priced homes flooding the market as a result of bankruptcies, short sales, or foreclosures. If people aren’t selling the homes as quickly as possible and accepting low offers, then the values of homes won’t be further driven down. As you can see, keeping people in their homes could help to stabilize the housing market, and the economy overall. But how does a home loan modification work?

The alternatives to a California home loan modification do not offer anywhere near the benefits. By doing nothing, a homeowner is just putting off the inevitable loss of his or her home. Filing for bankruptcy or selling the home via a short sale are difficult options because the homeowner’s credit score is negatively affected, the investment made in the house is typically lost, and the homeowner has to find somewhere else to live during a time where personal finances and available credit are both tight.

By enlisting the help of an attorney, and brokering a home loan modification, homeowners can stay in their homes, retain the investment they’ve made, and keep their home from going on the market at a low price and contributing even further to the housing crisis. The Feldman Law Center offers a free consultation to those checking out their mortgage repayment options.

Visit Feldman Law Center at http://www.feldmanlawcenter.com or call 800-588-0425.

Legal Disclaimer

The information contained herein is provided for general information and advertising purposes only and is not intended to convey a legal option nor legal advice for any particular case or situation. Nothing in this article shall create an attorney-client relationship. Nothing sent to this law office via e-mail shall constitute an attorney-client relationship. Nothing contained in this article shall be construed to be a guarantee or prediction of result. Prior results are provided for general information purposes only and do not guaranty, warranty or predict a similar outcome with respect to any future matter.   Results achieved depend on individual circumstances and not everyone will qualify or be successful in restructuring their mortgage loan.