modify

New Flex Modification Program Will Replace HAMP

New Flex Modification Program Will Replace HAMP

The Home Affordable Modification Program (HAMP) that helps homeowners avoid foreclosure by adjusting interest rates and modifying loans expired at the end of the year. A new Flex Modification program will replace HAMP starting in 2017.

The new Flex Modification program is designed to cut back on monthly mortgage payments when homeowners are experiencing financial hardships and behind on their mortgage. Some homeowners are expected to receive up to a 20% payment reduction on their mortgage. Introduced by Fannie Mae and Freddie Mac, the Flex Modification foreclosure prevention program is supposed to be adaptive to regional differences and the ever-changing housing market.

Fannie Mae and Freddie Mac are government enterprises developed by Congress to help loan servicers convert assets to cash, a concept known as liquidity. To do this, Fannie Mae and Freddie Mac buy mortgages from lenders and loan servicers. The lenders then take the profit from selling the mortgages and relend it to other consumers buying a home or property. The government enterprises help lenders have an affordable supply of monetary funds to distribute in mortgage loans around the United States.

Flex Modification is expected to help lenders, homeowners, taxpayers, Fannie Mae, and Freddie Mac save money by avoiding the expensive and long foreclosure process. If you are having financial difficulties and struggling to pay your mortgage payment in full every month, a loan modification may be able to help you keep your home. Contact a foreclosure defense lawyer at Doucet & Associates Co., L.P.A. at (614)944-5219 for legal assistance securing a loan modification today.

 

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Doucet & Associates 10th District Win for Church Client

Doucet & Associates 10th District Win for Church Client

Doucet & Associates Co., L.P.A. attorney, Andrew Gerling, maintained a $62,000 jury verdict in the 10th District appellate court for a local church. The church first received the $62,000 in damages in the Franklin County Common Pleas Court for a breach of contract over a commercial property.

The Fathers House International, Inc. purchased the commercial property with intent to build a new church.  The Pastors of the church met with the defendant and modified the contract to keep monthly payments from rising after the first year. The Pastors and defendant also agreed the property could be used for other projects.

Later the church joined with the YMCA, the City of Columbus, and the Community Shelter Board and developed plans to operate a homeless shelter on the property. The defendant wrote a letter of confirmation for the church to lease the property and verified accurate payments had been received.

Despite the modification and letter, the defendant later went back on the deal by demanding more money than he was entitled to under the new contract agreement.  Attorney Andrew Gerling first successfully defended the Fathers House International, Inc. in a breach of contract lawsuit and upheld the verdict during the appeal.

If you have had a foreclosure lawsuit unlawfully filed against you contact Doucet & Associates Co., L.P.A. at (614)944-5219 for legal assistance.

 

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Why Assumable Loans Are Great

Why Assumable Loans Are Great

If you are refinancing or modifying your loan, then I recommend doing what you can to ensure that it is assumable. An assumable loan means someone else can acquire your mortgage (and make payments on it) when you sell the home.

Assumable loan clauses are standard in VA and FHA mortgages, so if you are considering making a change, take a very close look at those programs.

Why look for an assumable loan? Because interest rates are not going to get any lower. In this author’s mind, inflation is just a few short years away, bringing with it higher interest rates. Higher interest rates mean loans are more expensive, and people are not able to buy the size of home they could if rates were lower. You know that your payments are less if your rate is 4% versus 8%. Someone looking to buy your home will be looking at it a lot differently if they have to pay 4% or 8% interest. The difference on a $100,000, 30-Year loan is $403.66 per month. That’s a lot of money.

Getting an assumable loan now at market rates means you can lock in that savings for someone looking to buy your home later, when rates are higher. Because someone assuming your 4% loan will save $403.66 more to spend each month than he would getting a market rate, he should be willing to pay a premium for your home. After all, he’s saving $4,843 per year by taking over your mortgage, or $48,439 over ten years. That means your home is worth more than the next guy who did not think to secure an assumable loan while rates were low.

 

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