facebook-squarelinkedin-squaremenumobiletwitter-squareyoutube-square

How Do I Know if I Qualify for Mortgage Modification?

How Do I Know if I Qualify for Mortgage Modification?

How Do I Know if I Qualify for Mortgage Modification?

Surprisingly most people in Washington state don’t even realize that they can qualify for a mortgage modification or mediation. Mortgage payment each month is causing you more and more stress or you’re simply not able to make the payment, there are options. Washington state has Washington State Foreclosure Fairness Act, which was implemented several years ago helps Washington homeowners modify their existing mortgage in order to stay in their home.

Like to stay in your home there are options but there are also qualifications. Banks will not tell homeowners that there are options oftentimes considered a better “dirty little secret”. Banks have not financially incentivized homeowners to modify their loan in most cases, and this is where a mortgage lender needs to come into play. Homeowners cannot modify their own mortgage unless the letter asking for a straight refinance. Often, homeowners that are already struggling making their mortgage payment cannot qualify for refinance. This is where attorneys such as Advantage Legal Group can come into play. Attorneys or housing counselors must modify and mediate the mortgage refinance or modification on behalf of the homeowner. This really is the only caveat and can be difficult for a lot of homeowners to understand. Often get asked why they cannot simply go to their bank and ask for modification on their own. But with Washington State Foreclosure Fairness Act, there is a moderator on behalf of the homeowner that can handle and facilitate the moderation between the homeowner and the bank.

The downside is that the only way to qualify is to actually stop paying your mortgage. While this is often the case for a lot of homeowners, some may find it difficult to do so without food and utilities in order to make the mortgage payment. This is where the moderator needs to step in and provide alternate options. Once the homeowner is unable to pay and this is a payment, they can trigger events under the current law which provides the homeowner an option to elect to enter into mortgage mediation. The homeowner will receive the “Notice of Pre-Foreclosure Options” and after this will have 30 days to respond to elect to request a meeting with the bank in order to discuss the situation, however, this must be done with a moderator as in a housing counselor or attorney. You can meet with the bank on your own but homeowners cannot request mortgage mediation by themselves. This mediation can only be requested through a HUD counselor or mortgage mediation attorney.

(See How Advantage Can Help You)

If the homeowners do not want to enter into the mortgage ocean the bank will usually proceed to the second notice, “Notice of Default” 90 days after the issuance of the first notice. At this point that you can still request mortgage mediation but must be negotiated by the HUD counselor or an attorney. After notice of default is an issue they post the third notice, “Notice of Trustee Seller”. This is if the homeowner has not requested a modification. The bank will continue on the foreclosure without the homeowner does something to stop it.

  • In order to qualify the homeowner must complete the package for loan modification including submitting paycheck stubs, budget, documents that the loan servicer requests and a hardship letter stating why you are unable to make their mortgage payment.
  • The property must be the primary residence, meaning it cannot be an investment or rental property.
  • Homeowners to choose modification if they are unable to refinance. Allows a temporary briefing room to get through financial hardship.
  • Homeowners must also have adequate debt to income ratio. Lenders prefer as low as 36% but can go as high as 45%.

If you’re concerned you may not qualify contact Advantage Legal Group today to discuss your options! You might be surprised at how affordable a mortgage modification really is, even through an attorney. And of course, you’ll have the peace of mind knowing you can keep your home.

Contact them today!

Don’t Go it Alone – The Washington Fairness Foreclosure Act

Don’t Go it Alone – The Washington Fairness Foreclosure Act

There are still many homeowners facing foreclosure. For the last three years, Advantage Legal Group has been doing much to inform those homeowners about the hope they may have in the Fairness Foreclosure Act. Their efforts have been pretty successful and they’ve saved the homes and lives of many clients. However, now there’s a new thing to make people aware of…the danger of trying to do it yourself.Don't Go it Alone - The Washington Fairness Foreclosure Act

There are people who do indeed know about the Washington Fairness Foreclosure Act but instead of obtaining a lawyer to or credit counselor to request mediation, they try to request it themselves only to be turned down time and time again, all the while, racking up additional fees each time they try. These fees WILL eventually have to be paid somehow, and these people may now face the reality of losing their homes AND paying the fees!

Related: The Ultimate Home Sellers Guide

Save yourself a lot of time, heartache and money!

Save yourself time, heartache and money by getting yourself an attorney or credit counselor to set up the mediation for you. You cannot go it alone. These people keep getting turned down for mediation because homeowners can ONLY be referred to foreclosure mediation by a housing counselor or attorney. The counselor or attorney will determine the homeowner’s eligibility for mediation and may make a referral on their behalf to the Department of Commerce for foreclosure mediation. Eligible homeowners will then be assigned a mediator by the Department of Commerce to conduct the foreclosure mediation process that has been established under the Act. Additionally, although not required, the homeowner may also benefit from having the counselor or attorney present during the mediation to assist/represent them during the process. The lender is also usually represented by their own lawyer.

Contact Advantage Legal Group for all Foreclosure Legal Advice, Mortgage Modification and Foreclosure Defense 425-452-9797

Bellevue Foreclosure Defense

Bellevue Foreclosure Defense

Hi, my name is Jonathan Smith and I am an attorney servicing Western Washington. My law firm does mortgage mediation, mortgage modifications, bankruptcies and short sales.

Updated: 5/18/2020

Right now with the current pandemic, homeowners may be fearful of losing their homes due to foreclosure. If you’ve been out of work and unable to either get employment or just not enough to make your mortgage payment, foreclosure may be on the horizon. It’s extremely important to act now and as quickly as possible to avoid foreclosure.

Foreclosure defense is the legal strategy initiated by a homeowner to avoid foreclosure. The simplest way is to simply modify the mortgage but the homeowner may not be able to do this alone with their lender. They may need a foreclosure defense attorney to renegotiate the terms of the mortgage in order to make the payments more affordable or put off the payments for a couple of months.

In several cases, homeowners can successfully contest foreclosure proceedings with the help of a foreclosure defense attorney. We help homeowners find legal grounds on which the proceedings can be challenged. In rare cases, mortgage companies have filed foreclosure proceedings illegally.

We are offering foreclosure defense services, which use all of the above to attempt to avoid foreclosure, if at all possible. The single worst impact on your credit is a foreclosure. It’s far better to have either a short sale or some other disposition of the property, or a mortgage modification or a mediation – than it is to have a foreclosure.

We are offering services to help you work out the best methodology for dealing with your current situation. If that’s something that interests you, check out my website at AdvantageLegalGroup.com Again, AdvantageLegalGroup.com. And I look forward to meeting you.

Foreclosure Defense options may include Mortgage Mediation, Mortgage Modification, Short Sale or Bankruptcy.

Contact Us Today at 425-452-9797 or Below

Get a Free Consultation

Recent Posts

  • Is Mortgage Forbearance a Good Idea?

    Is Mortgage Forbearance a Good Idea?

    Because of all the unemployment right now an estimated 4.1 million Americans have explored forbearance for their mortgage. Many experts perceive more homeowners will seek this protection unless the pandemic and current issues start to normalize. So what is forbearance? Forbearance is the act of “pausing” your mortgage payments. This is a basic economic rescue […]Read More »
  • Filing for Bankruptcy

    Filing for Bankruptcy

    Filing for Bankruptcy – When, How, & Why Determining if you Qualify for Bankruptcy Individuals file personal bankruptcy because there is financial relief needed and they seek a second start.  If you feel there is no way out of your debt troubles and these debt troubles are regular occurrences, filing bankruptcy maybe your best option. […]Read More »
  • Bankruptcy or Foreclosure Looming?

    Bankruptcy or Foreclosure Looming?

    Bankruptcy or Foreclosure Looming? Let The Washington Foreclosure Fairness Act Help you! New Mortgage Foreclosure Program for the State of Washington. A little known Mortgage foreclosure program went into effect in Washington State in 2011.  It is called the Washington foreclosure fairness act (FFA).  This program is for you if you need help paying your […]Read More »
  • Should I Use My Stimulus Check for Bills?

    Should I Use My Stimulus Check for Bills?

    Like millions of Americans, most of us will be getting some sort of a stimulus check in the next couple of weeks. When we hear the word stimulus we understand that it is to stimulate the economy but that doesn’t mean going out and buying the latest television or blowing it on something nonessential. Stimulating […]Read More »