Riverside, California Loan Modification Attorneys

Mortgage Modification Lawyers San Bernardino California

Representing individuals and businesses in bankruptcy filings, foreclosures, debt workouts, tax problems, bankruptcy adversaries, and serious civil litigation, throughout Southern California, including the Inland Empire area, Riverside, San Bernardino, Redlands, Lake Arrowhead, Running Springs, Big Bear, High Desert and Victorville.

At J.L. Borrie & Associates, we focus entirely on bankruptcy, debt issues, tax problems and foreclosures. Modifying an existing loan can be one way to save your finances and your future before it is too late. It can also be one of the last things you want to do, depending on what your other debt circumstances are. We strive to provide you with a realistic assessment of whether a loan modification is in your best interests, either without filing Chapter 7 or Chapter 13, or subsequent to a bankruptcy filing, based on our extensive experience handling bankruptcy and foreclosure matters throughout the Inland Empire area of Southern California, including Riverside and San Bernardino.

Our lead attorney, Joe Borrie, has more than 30 years of experience handling bankruptcy issues. He has personally filed more than 6500 cases and has extensive knowledge on loan modifications. Contact J.L. Borrie & Associates when you are looking for a loan modification attorney who is capable of assisting you in complex discussions with your lender.

Loan Modification Law - WARNING - WARNING - WARNING -

If you have any financial problems at all, in addition to your home loan payment amount, DO NOT obtain a loan modification before consulting an experienced Bankruptcy Lawyer.

There are several reasons for this, and here are a few:

1. In a Chapter 13, you may be able to "strip off" junior liens on your residence (2^nd and 3^rd trust deeds, equity loans, etc.) which a modification of a senior lienholder can't do.
2. The revised law utilizes essentially two basic tests to determine whether you qualify for a Chapter 7 or Chapter 13 case. The Means Test and the Totality of Circumstances Test, both of which utilize the current payment amount on your residence to determine eligibility, and if a Chapter 13 is filed, to determine the amount of the required plan payment. By modifying your loan BEFORE filing a Chapter 7 or 13, you may disqualify yourself entirely, and/or result in a much higher payment in a Chapter 13. It makes no sense to reduce your house payment from $2,000. to $1,500. monthly, and extend the length of the loan to 40 years, when the $500. difference would increase your ability to pay that $500. to your unsecured creditors. In other words, you would be unnecessarily extending the length of your loan, the amount of interest paid over the longer term of the loan, and you would be paying the saved monthly amount to unsecured creditors who may be otherwise discharged with no payment, or a reduced payment.
3. Though it makes no logical sense, in a Chapter 7 case, you can deduct the full amount of your house payments, taxes and insurance on the means test, even if you intend on surrendering the home. If you are renting, you are entitled to a generally much lesser amount based on what the IRS thinks the average rent in your county is. Unfortunately, many persons become overwhelmed by their financial problems, let the home foreclosure go forward, and later when pressured by other creditors, seek bankruptcy help. Because they are now entitled to deduct only reasonable rent (not actual rent) on the Means Test, they may not qualify for a Chapter 7, where if they had filed prior to the foreclosure, they may have qualified. I have clients in Chapter 13 cases paying back unsecured creditors which is causing financial hardship to their families, solely because they let the foreclosure sale go forward, or obtained a loan modification, before filing the BK.

Loan Modification Fraud

Homeowners in California are hurting in this economic downturn. Unfortunately, scam artists are taking advantage of the hardship felt by homeowners. Fake loan modification consultants have conned thousands of Californians with devastating results. Unfortunately, so have many attorneys, and the California State Bar Association has set up task force solely to monitor, investigate, and prosecute such attorneys. Some people have signed documents only to learn that they have signed over their home. Others have paid up-front cash for no relief or fallen victim to false promises guaranteeing modification of their loan.

Our bankruptcy attorneys keep informed of the fraudulent tactics used by criminals to scam financially distressed individuals who desire to modify a loan.

Due to recent changes to the HAMP program effective June 1, 2010, it has become much easier for homeowners themselves to obtain loan modifications without the help or payment to consultants or lawyers.

In fact, under many circumstances, we decline to represent homeowners in seeking loan modification because in many cases, it doesn't require any particular knowledge or expertise. What it does require, is diligently providing the requested documents, and promptly complying with requests for additional information.

The revised HAMP rules includes mandatory duties on the part of the lenders to respond to modification requests within limited time periods, and to affirmatively advise homeowners of any deficiencies in their submissions, and to allow reasonable time for you to provide the additionally requested documents/information.

Another WARNING:

Be extremely careful if you have a foreclosure pending, and you are unable to obtain in writing, an extension of the sale. If you cannot obtain a written extension of the sale date, or a written, signed modification agreement at least 30 days prior to the scheduled trustee sale date, go as fast as you can to a bankruptcy lawyer. Unfortunately, many homeowners have relied on oral understandings, or misunderstandings (or in some cases, deliberate falsehoods), and have waited to the day before the sale just to be advised that they don't qualify for a modification, and the sale will go forward as scheduled. If you wait that long, it is unlikely you will have time to seek court help to stop the sale, and competent bankruptcy lawyers don't like taking last minute cases because they don't have sufficient time to properly prepare the case.

Loan Modifications on your own - http://www.makinghomeaffordable.gov./
This website is a very good resource for seeking loan modifications (and loan re financing). In addition to other things, it contains:

1. A look up section to find a HUD-approved housing counselor who will help you for FREE
2. An eligibility calculator to determine eligibility for loan modification, loan refinancing, and 2^nd trust deed modification
3. Instructions and required forms to request a loan modification
4. Look up function to see if your loan is held by Fannie Mae or Freddie Mac who MUST participate in the HAMP program
5. A list of all loan servicers who have agreed to participate in the HAMP program.

Contact Our California Law Firm

We offer a free conference of up to one hour with an experienced (a minimum of 10 years) bankruptcy, tax problem, foreclosure and debt resolution attorney (not a junior associate or paralegal) who will fully analyze your specific financial situation. They will also advise you as to your available options, likelihood of success, and the costs and procedures involved in each alternative

If you would like someone to contact you regarding your problems or concerns, please choose the appropriate choice below, or call us at 951-686-6432 and mention that you visited our web site for a free, no-obligation conference.

J.L. Borrie & Associates
4333 Orange Street, Suite 21
Riverside, CA 92501
(also with offices in Running Springs and San Bernardino)

Phone: 951-686-6432
Fax: 877-686-6432