Practice Areas
Buck Edmunds PLC
Loss Mitigation / Loan Modification
Buck Edmunds has a staff of attorneys focusing on negotiating
real estate and mortgage contracts. Our focus is on Loan Modification
and Loss Mitigation with the industry's largest lenders. We would
like to share our knowledge and experience with homeowners like
you to get your finances where you and your family are comfortable.
A Loan Modification is a change in the original terms of your
mortgage note. This is NOT a refinance; we are negotiating with
your current lender to work out payments that you can afford.
We will present your situation to the lender so that you get the
best results.
Loan Modifications are successful right
now because of 2 simple factors:
- You want to be able to make fixed,
affordable payments on your home loan so that you can keep
your property.
- Your Lender does not want to foreclose
on your property because real estate values are down and continuing
to decline.
The Main Factors that we look for in
considering whether we can represent a Homeowner for a Loan Modification
are: (all factors are considered, not any one factor is absolute)
- Excessive Loan to Value
- The remaining balance on the mortgage(s) is higher than
the value of the home or close to the value of the home, and
there is no ability to refinance. The real estate market in
the area is declining.
- Temporary Hardship
- Due to something beyond control, a financial hardship exists.
For example: cutbacks at work, lost job, divorce, medical
expenses, death, accident/injury, rising costs of necessities.
- Excessive Debt to Income Ratio
- Gross monthly income in relation to (or divided by) the
total amount of monthly debt is high.
- Loan is Adjustable or a Negative
Amortization Loan
- Payment is adjusting or will be adjusting soon. It was fixed
for an initial short period (for example- 2, 3, or 5 years).
Or, current loan may have started out with 4 different payment
options. By making the minimum payment, the unpaid interest
is added to the balance resulting in "negative amortization."
- Late Mortgage Payments / Low
FICO (Credit) Scores
- Since the loan adjusted or due to Hardship, it has become
difficult to make the payments and late payments are being
made on the mortgage or other debt.