Category Archives: Mortgage Refinance
National real estate indexes report that residential foreclosures have declined in recent months, But financially troubled homeowners still need to remain vigilant. Here are five items that continue to create confusion among homeowners facing foreclosure.
1. The right to a loan modification. Many states require residential lenders initiating a residential foreclosure to provide homeowners the opportunity to meet with their lender’s representatives. This meeting is to review the borrower’s relevant financial information and circumstances surrounding a financial hardship. When appropriate borrowers are given the opportunity to modify the loan, some states, like Michigan, require only those 5 mortgage companies that were party to the 2012 National Mortgage Settlement (Bank of America, Wells Fargo, Chase, Citi, Ally / GMAC) to provide homeowners with an opportunity to modify the loan should the borrower qualify. Laws vary by state, but unfortunately for Michigan homeowners, those mortgage lenders not part of the national settlement have it within their discretion to provide a financially challenged homeowner a loan modification. (more…)