Loan Modifications: Modify Your Loan, Save Your Home, Case Studies

<h1>Loan Modifications: Modify Your Loan, Save Your Home, Case Studies</h1>Author: <a title="Peter H. Lunding" href="http://www.articlesbase.com/authors/peter-h.-lunding/143252.htm">Peter H. Lunding</a> Loan Modification, North Carolina, 2008-11E Case facts: North Carolina residents seeking a Loan Modification.  Mortgage of $200,000 on a home now worth maybe as little as $150,000.  The first mortgage was taken out in 2003 and has a reasonable interest rate of 7% fixed.  There is no second loan or line of credit.  Originally three (3) qualifiers and signors on the loan: Husband and wife and wife's mother (all members of the household, along with 3 minor children).  Income was sufficient such that the DTI (Debt to Income) Ratio was at or below 31%.  Husband has left the family without a forwarding address and has no visible or attachable income.  Wife and Mother are working but the DTI now exceeds 31% (approximately 42%).  No child support from husband who abandoned the family and his children.  The loan is an FHA loan but not Freddie or Fannie, although the lender/servicer has signed on to the Obama Plan.  They are now nine (9) months behind, in part, because the lender refused partial payments.  Bankruptcy is not an option and there is very little other debt (e.g., no real consumer debt).  The current income from the mother is solid but the income from the wife varies month to month.  They have serious budgetary concerns.  What programs are applicable?  FHA Programs?  HomeSaver? What of the Obama Plan?  Result?  One option to consider is to simply walk away but if a foreclosure occurs what might result and are the borrowers liable for a deficiency?  We will submit the results we obtained in three (3) weeks but want to give the audience an opportunity to comment.  Results vary from lender to lender and even from negotiator to negotiator.  These examples are for education purposes only so that we can have a forum to discuss various options that may be available to borrowers.About the Author: Peter H. Lunding is a 1985 graduate of Hastings College of the Law and is licensed to practice law in North Carolina. His practice is based in Wake Forest and serves the greater Raleigh area. He practices in the areas of Estate Planning, Corporate Law, Business Law, Tax (Tax Law and Tax Preparation), Real Estate and Loan Modifications. Visit his website <a target="_blank" href="http://www.lundinglaw.com,">http://www.lundinglaw.com,</a> or <a target="_blank" href="http://www.wakeforlaw.com">http://www.wakeforlaw.com</a> or <a target="_blank" href="http://www.raleighforeclosurelaw.com">http://www.raleighforeclosurelaw.com</a>Article Source: <a href="http://www.articlesbase.com/">ArticlesBase.com</a> - <a href="http://www.articlesbase.com/mortgage-articles/loan-modifications-modify-your-loan-save-your-home-case-studies-1015341.html" title="Loan Modifications: Modify Your Loan, Save Your Home, Case Studies">Loan Modifications: Modify Your Loan, Save Your Home, Case Studies</a>

Loan Modification, North Carolina, 2008-11E

Case facts: North Carolina residents seeking a Loan Modification. Mortgage of $200,000 on a home now worth maybe as little as $150,000. The first mortgage was taken out in 2003 and has a reasonable interest rate of 7% fixed. There is no second loan or line of credit. Originally three (3) qualifiers and signors on the loan: Husband and wife and wife's mother (all members of the household, along with 3 minor children). Income was sufficient such that the DTI (Debt to Income) Ratio was at or below 31%.

Husband has left the family without a forwarding address and has no visible or attachable income. Wife and Mother are working but the DTI now exceeds 31% (approximately 42%). No child support from husband who abandoned the family and his children. The loan is an FHA loan but not Freddie or Fannie, although the lender/servicer has signed on to the Obama Plan.

They are now nine (9) months behind, in part, because the lender refused partial payments. Bankruptcy is not an option and there is very little other debt (e.g., no real consumer debt). The current income from the mother is solid but the income from the wife varies month to month. They have serious budgetary concerns.

What programs are applicable? FHA Programs? HomeSaver? What of the Obama Plan? Result? One option to consider is to simply walk away but if a foreclosure occurs what might result and are the borrowers liable for a deficiency? We will submit the results we obtained in three (3) weeks but want to give the audience an opportunity to comment. Results vary from lender to lender and even from negotiator to negotiator.

These examples are for education purposes only so that we can have a forum to discuss various options that may be available to borrowers.

Peter H. Lunding is a 1985 graduate of Hastings College of the Law and is licensed to practice law in North Carolina. His practice is based in Wake Forest and serves the greater Raleigh area. He practices in the areas of Estate Planning, Corporate Law, Business Law, Tax (Tax Law and Tax Preparation), Real Estate and Loan Modifications. Visit his website http://www.lundinglaw.com, or http://www.wakeforlaw.com or http://www.raleighforeclosurelaw.com

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Article Tags: Avoid Foreclosure, Attorney, North Carolina, Loan Modification, Save Your Home, Obama Plan, Home Affordable Plan, Affordable Loan Modification

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