Loan Modification

We will use the following numbers from a Los Angeles home purchased in 2006

• $500,000 Mortgage Balance
• $30,000 In Delinquent Payments
• Foreclosure Attorney Fees $15,000
• Total Loan Balance of $545,000.00

Los Angeles, like almost every other housing market in the country, is in a depreciating market. This home was worth $535,000 when purchased. Current comparables in the area are going for approximately $435,000.

If the bank forecloses on this property and it goes to auction, the bank will be lucky to receive 75% of the current value.  At 75% loan to value this home would sell for $326,250.

$545,000 -$326,250 = $218,750.00

In this example the bank would lose almost two hundred and twenty thousand dollars. Banks are in business to make money, and if your home goes into foreclosure they can lose massive amounts of money. Banks can prevent this from happening by modifying the terms of your loan.

When you work with our attorneys, they can negotiate with your lender to lower the amount that you owe in delinquent payments, add the delinquent amount onto the end of your loan term, decrease your current interest rate to a low rate fixed, and stop foreclosure.