According to Inside Tucson Business:

““What we are seeing is people give up hope as they try doing a loan modification,” said Long Realty Senior Associate Broker Rebecca Patsch. “They’ll leave their house and then the lender will file for a trustee sale, which typically the trustee sale will happen 90 days after the filing. But what we’re seeing is lenders are not completing the foreclosure for six months to a year after the filing. So that’s why a lot of these houses are just sitting there with no one in them and they’re not listed for sale; the lender hasn’t foreclosed.

Tucson ranks among top metro areas for foreclosures, according to a report released July 29 by RealtyTrac. For the first half of 2009, Tucson ranks 40th, with more than 7,000 properties, or 1.67 percent, having foreclosure filings. Other areas in Arizona above the 1.19 percent national average for foreclosures were Phoenix-Mesa-Scottsdale (ranked No. 9) and Prescott (No. 27). No. 1 in the country is Las Vegas.”

One of the reasons that the lenders are sitting on so many properties is because they do not want to record all of the losses at once.  Therefore, if you are facing potential problems with your mortgage, you need to make sure that you obtain the guidance you need to find out if you can save your home.  Contact the home loan modification attorneys at Phillips & Associates today to schedule a free initial consultation.

One of the people who’d like to see some changes is the Attorney General of Arizona, Terry Goddard.  He put forth some thoughts recently at a foreclosure workshop in Phoenix, and AZCentral.com provided some of the highlights of the points made:

“1. Not count towards servicers’ commitments or include in calculations of a re-default rate any modifications that do not lower borrowers’ monthly payments. Modifications that result in a higher payment due to capitalization of arrearages and fees are unlikely to be a solution for borrowers.

2. In order to move borrowers into sustainable mortgages, servicers must begin to forgive feesand, when appropriate, reduce principal and not just reduce interest rates and extend terms. Throughout this crisis, servicers have responded by taking half steps in hopes of an imminent or near term recovery in the housing market. It is time to recognize the reality of the situation, accept losses and move on. This is particularly true for Payment Option ARMS, many of which will require a reduction in principal in order to achieve a sustainable modification.”

There were several points made, but the overall point of the ideas was that the process should be streamlined and simplified.  Whether that happens or not remains to be seen, but in the meantime, many people do not have time to wait for the political haggling to finish.  If that includes you, contact a home loan modification attorney at Phillips & Associates today to schedule an initial consultation and to work towards the real possibility of saving your home.

As a result, lenders have been foreclosing on homes at a record pace.  While many would assume that lenders have no problem with retaking homes, the reality is that most would like to find a way to avoid this process for many reasons.  The bottom line, and the driving force behind the crisis in the first place, is that most lenders are publicly-traded corporations whose stock value defines a company’s success or failure.

Therefore, lenders are hesitant in many instances to take back a property because most of the time, those properties have a value that’s less – sometimes much less – than the amount that’s owed on the loan.  In addition, the reality of the current real estate market is such that lenders are generally unable to sell these repossessed homes for a price that’s even close to the break-even point, and they are often sold for an enormous loss.

Lenders need to turn their own operations around, which is why they are open to a viable alternative to the foreclosure process if one presents itself.  The government has stepped in with a wide-ranging assistance program, and borrowers are beginning to pursue the option of a home loan modification in higher numbers.

A home loan modification is a process by which the existing loan on a property is changed, whether it involves lowering the amount owed, lowering the interest rate or lengthening the term of the loan.  Some home loan modifications incorporate several of these options.

However, if you are facing this sort of problem, you need to work with an attorney despite the lenders’ willingness to work out a deal.  There are still laws that must be followed and negotiations that must take place, and you need the skill, knowledge and experience of a home loan modification lawyer to make sure that you get an equitable solution to your problem.  Contact the attorneys at Phillips & Associates today to schedule an initial consultation.