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Sunday
Jun202010

Loan Modifications Los Angeles Advertising Campaigns Over-Promised (With Video)

 

Did you notice that loan modifications Los Angeles instantly became a popular strategy recently. Ads had been showing up all over Los Angeles with boasts concerning various benefits from this kind of strategy. But they "failed" to let you know that the positive aspects were only partially correct, and that your benefits may differ.

The Truth About Loan Modification Los Angeles

In truth, a loan modification Los Angeles is suitable only under very limited conditions for stopping forecloure. The loan modification Los Angeles advertisements promised to have the back-interest, penalties, and late fees deleted from your mortgage loan balance. They also indicated that the loan balance might be lowered so the homeowner would be able to afford the mortgage loan once again. Sorry to say, this never took place for most property owners.

Why so many unkept promises? What occurred was that most of these businesses were founded almost overnight by mortgage brokers, realtors, attorneys, and others who were displaced from their jobs when the real estate lead recession started. The result was that a large number of homeowners found themselves in a contest with their financial institutions. 

The loan modification companies, despite their knowledge of the lending business were not able to satisfactorily take care of these issues.  Even Congresswoman Waters, when looking into the loan modifcations debacle, found that lenders are placing obstacles in the path of homeowners who seek loan modifications Los Angeles.

The banks responded to the loan modifications demands in Los Angeles by placing the back-interest, late fees, and penalties onto the unpaid mortgage balance. Monthly payments were lowered somewhat in a number of cases by stretching the modified loan balance out 40 years. However, in 35% of situations, the monthly installments had actually increased.

The home equity in Los Angeles and in most other areas of California have declined considerably in the last few years. Numerous mortgages are now "underwater" because the values decreased when the real estate lead recession began. This brings me to a very important point: If the banking institutions are not willing to agree to part of the losses, then why should anyone having a hardship wish to have to keep paying their high monthly payment for an additional ten years.

In the end, property owners have other practical alternatives.  Further, it was the lenders that created this blunder. What many individuals don't recognize is that there are actually better techniques to reduce your financial obligations, stop foreclosure, and get rid of this negative equity. For the majority of people, it would be much easier to acquire a different home than to continue to overpay for the one they have now.

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