Are you current on your Mortgage or missed a few payments ?
Do you wonder what the Obama Plan can do for you ?
Do you wish to get rid of your second mortgage or get a principal reduction ?
Homeowner Affordability and Stabilty Plan
Bankruptcy and Foreclosure Lawyer in Sacramento and Walnut Creek explains three key issues
Dear Reader my name is Michael Rinne. Many of my clients are struggling with their mortgage payments and want to know if the government plan could benefit them. The short answer is it depends. Every client is different so is every mortgage. However there are certain things you should know about the program.
Do I have to be late on my mortgage ?
No. Under the Homeowner Affordabiity and Stability Plan you do not have to be late in order to qualify for a government supported loan modification. However your loan should be backed by Fanny May or Freddy Mac. Further only primary residences qualify.
What about my rental properties ?
I have negotiated numerous loan modifications for rental properties. However these modifications are being accomplished through internal bank programs. It is all about convincing the mortgage lender that foreclosing would be more costly than reducing the interest rate, stretching out the loan or even reducing the principal loan balance.
Is your house under water, upside down ?
You still qualify for a governmet supported loan modification if your first loan will not be more than 105% of the current market value of your home.
Do I qualify if I have a second mortgage ?
Yes as long as the second mortgage holder agrees to stay in second position once the loan is modified. Remember if a different investor than Fanny May or Freddy Mac owns your mortgage special rules may apply and I recommend talking to an attorney familiar with foreclosure rules in Sacramento or Walnut Creek.
What if a loan modification is not enough ?
A Chapter 13 bankruptcy can be the solution. Call an experienced bankruptcy lawyer in Sacramento or Walnut Creek if you live in Sacramento or Contra Costa county. A good bankruptcy attoreny will be able to analyze your financial and legal situation and tell you whether you can "lien strip" the second mortgage. There cannot be any equity in the second mortgage to qualify, your secured debts cannot by higher than approximately $1010000.00. However what exactly secured debts means when many mortgages are only partially covered by the equity in the house is controversial and needs to be discussed with a bankruptcy lawyer.
For more information give me a call at 1800 303 2964 or email me at michael@rinnelaw.com.
I am a bankruptcy lawyer in Walnut Creek, Fairfield and Sacramento.
