Posts Tagged ‘foreclosures’

Hiring a Lawyer to Help You with Your Tempe Refinance Effort

Author: Arizona Loan Modification.
Time: Tuesday, November 3rd, 2009 at 5:51 am.
Category: Blog.

Tempe is a community that’s known around the world for its beauty, its culture and its proximity to a renowned education center in Arizona State University.  In short, people want to live near these sorts of areas for many reasons, but unfortunately for many, the economic disaster that has unfolded around the world has left many residents wondering what to do next when it comes to their homes and mortgages.  However, there could be options for you, and below you’ll find a few reasons as to why you should contact a Tempe mortgage refinance lawyer to work with you towards a solution before a serious problem arises.

1.  Lenders Need to Cut Potential Losses and Risks

Many people wrongly assume that their lender will not work with them towards refinancing a mortgage so that it’s less inherently risky for both parties.  Lenders have been taking on losses in record numbers over the past year because of some of the irresponsible loans that have been approved, and the statistics tend to support this notion.  The home value index for the area has dropped by almost 20% in the past year, meaning that many people are facing mortgages worth more than their properties.  If a lender repossesses a home through foreclosure, that property will likely have to be sold at a loss.

2.  Lenders Need Market Stability as Much as Borrowers

Given the high number of foreclosures in the area and the number of ‘under water’ mortgages, the market is as unstable as it’s ever been.  This is not only a troubling sign for lenders in terms of their existing loans, but also for prospective loans that will not be as profitable overall given the general hesitancy to borrow.

3.  Foreclosures are Costly

Foreclosure is an expensive process.  The lender must record all of the steps of default, issue several legal notices and then provide for all of the procedural steps that allow them to retake the property.  All of this is done merely for the right to re-sell the property at a loss, as was mentioned above.

Overall, the conditions are ripe for those who qualify to refinance their mortgages.  However, you will need an experienced professional working with you in order to be sure that you are getting a deal that’s fair and within the guidelines of relevant laws.  Contact the Tempe mortgage refinance attorneys at Phillips & Associates today to schedule an initial consultation.

Tempe Home Loan Modification

Author: Arizona Loan Modification.
Time: Tuesday, October 6th, 2009 at 4:46 am.
Category: Home.

Tempe has long been a widely-known area in Arizona, and it boasts of many attractions, including Arizona State University.  Given its long-standing place in Arizona society, the area has also largely been known as a stable and affluent place to live, study and work.  However, the economic meltdown over the past year has not spared Tempe, and a look at some of the relevant real estate statistics should show anyone why home loan modification attorneys are accepting an enormous number of inquiries as homeowners attempt to stave off foreclosure and to save their homes.

Throughout 2005 and through most of 2006, Tempe’s real estate market was as stable as it had been historically, even enjoying the benefits of growth that the Phoenix area overall enjoyed as the population grew.  For instance, during 2005 and throughout 2006, the foreclosure rate on homes hovered at just barely more than 0%.  In addition, during the same time frame, the percentage of homes sold at a loss stood solidly at less than 2%.

However, that has all changed in recent months.  During the past year, the median home value in Tempe has decreased by approximately 20%, and foreclosures have skyrocketed to more than 2.2% in this otherwise affluent area.  Finally, almost 30% of homes in Tempe that have been sold in the past year have been sold at a loss.  All of this is clearly troublesome, but hardly unique when compared to other parts of Arizona.

When home values decrease, more and more people find themselves in homes that have a loan on them that’s higher than the property’s value.  When foreclosure rates explode and homes are sold at a loss, it only increases the pressure on those who remain to keep their heads above water in terms of their overall investment.  As a result of this trend, lawmakers have opened the door to new options for those homeowners who want to save their homes.

One of those options is a home loan modification.  This program allows homeowners who qualify to basically reformulate their existing mortgage towards terms that are more manageable.  Lenders are willing to take this step most of the time to avoid having to incur the expense of foreclosing on homes and being left with properties that they will have to sell at a loss.

However, obtaining a home loan modification involves more than simply filling out forms.  You need the help of a Tempe home loan modification lawyer who understands not only the laws that apply but how to negotiate terms that are as equitable as possible.  Contact Phillips & Associates today to schedule a free initial consultation.

Attorney General Calls for Changes to Home Loan Modification Programs

Author: Arizona Loan Modification.
Time: Saturday, August 15th, 2009 at 5:08 am.
Category: Mortgage Loan Modification.

The concept of the home loan modification is relatively new to American society and to the legal and business communities, and it stands to figure that as the first wave of home loan modification programs begin to mature, some will notice aspects of them that they’d like to see changed.  Given the reactionary nature of the birth of this notion to begin with, the fact that some would like to add or subtract certain tenets should not come as a surprise.

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.

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