Foreclosure Looming? Our Goal Is To Help You Keep Your Home
by Jim Richman, President, Richman and Associates
We are specialists in working with your lender, or lenders, to restructure your current loan(s) by providing you with a unique, professional plan that you and your lender can accept.
We fully understand that you have a serious problem and only a short time to overcome the real possibility of losing your property.
We are a group of experienced residential and commercial bankers and real estate brokers who understand that federal rules and lender foreclosure policies often conflict. Few people outside the banking world have the knowledge to work with your current lender to restructure your loan.
Please note: We believe that bankruptcy is the absolute LAST resort.
Typical results of our restructuring plans:
- Loan Modification: 99% of all “A” type lenders and 70% of sub-prime lenders (with high interest rates) will negotiate a loan modification where most of the delinquent payments and foreclosure fees are added on to the back end of the loan. Payments can remain approximately the same. In some cases the interest rate will be reduced temporarily or permanently.
- Forebearance Programs: Typically 30% of sub-prime lenders (with high interest rates) will only offer a workout program that requires borrower to immediately pay at least 20% or more of the total delinquencies including foreclosure fees, plus the balance of the delinquency will be added to their regular monthly payments over a period of six to forty-eight months. Forbearance plans do not remove a foreclosure action but simply stop it in place until the loan is current.
Forbearance programs often fail if the lender is not forced to consider the ability of the borrower to pay. We require them to consider your ability to pay.
The key to our success is constructing a financial plan that you and your lender can approve and, most importantly, that you are able to perform. We work with you to compose a hardship letter that describes why the problem occurred and, the good news, why it won’t happen again. We construct a financial plan that considers your current income and details a list of your monthly expenses. The lender wants to see a believable relationship between your income and expenses that will ensure them and the federal regulators that you will be able to make your payments in the future. We help you take that plan to your lender and ask for favorable terms. We will help you go as far as you need up the chain of command until the plan is accepted.
Concurrently, we would review other lender’s programs that might be to your benefit. We believe it is in your best interest not to leave your future in the hands of any one lender.
If for some reason you must sell your home, we would negotiate with your lender to give you more time to sell your property at fair market value.
Great news! FHA and VA loans can be modified. FHA can give you a no-interest and no-payment loan to bring your loan current.
For current fees and more information, please visit HomeRetentionPrograms.com.
Copyright Jim Richman. All rights reserved. Jim Richman is president and founder of Richman and Associates Inc., a real estate and business debt restructuring consulting firm specializing in foreclosure solutions and financial consult
ing. He is a a former H.U.D. Commissioner, Senior Loan Officer with Coast Savings & Loan and Pacific Thrift & Loan, Burbank Mayor and City Councilman, and Author of foreclosure articles for Scotsman Guide. He is recognized as the leading expert on foreclo
sure solutions. Visit HomeRetentionPrograms.com.