| In the first quarter of 2009 the country had a | | | | prevent losing their homes. |
| record amount of foreclosures, with over | | | | How to possibly avoid foreclosure |
| 800,000 total foreclosures. This was due to | | | | A loan modification can in many cases be the |
| several reasons: | | | | answer to the problem. Like anything else there |
| | | | | are benefits and disadvantages to a mortgage |
| 1) High levels of unemployment | | | | modification. We have compiled a list of the |
| 2) Low interest adjustable rate | | | | advantages and disadvantages for you to |
| mortgages | | | | consider. |
| 3) Down turn of the Real Estate market | | | | |
| 4) Banks making it harder to get a loan | | | | ADVANTAGES:A successful Loan Modification will |
| | | | | supply you with the following: |
| With more and more home owners facing the | | | | 1. an interest rate reduction. Under President |
| prospect of foreclosure it is important that home | | | | Obama's current program this rate may be as |
| owners know what the law says about | | | | low as 2%. |
| foreclosure and how they may be able to avoid it. | | | | 2. The advantage of having the reinstatement |
| | | | | amount (total amount of late payments) deferred |
| Mortgage laws vary from state to state. The | | | | to the back end of the mortgage and added to |
| laws in New Mexico state the following: | | | | the current principle. |
| In New Mexico, lenders may foreclose on a | | | | 3. A reduction in the actual principle balance of the |
| mortgage in default by using the judicial | | | | loan |
| foreclosure process. | | | | 4. Have many of the same features of a |
| Judicial Foreclosure | | | | refinance, without the high cost. |
| Generally, in judicial foreclosure, a court decrees | | | | DISADVANTAGES: 1.You only get one shot at |
| the amount of the borrowers debt and gives him | | | | the Loan Modification so you need to get it right |
| or her a short time to pay. If the borrower fails | | | | the first time. It is important that you make sure |
| to pay within that time, the court then issues a | | | | your mortgage modification sets up payment |
| notice of sale. | | | | perimeters you can afford. |
| The notice of sale must contain a legal description | | | | 2. Your mortgage company does not earn money |
| of the property and state the place, the time and | | | | making you modifications so they will most likely |
| the date, which must be at least thirty days after | | | | offer you terms that are not actually helpful. |
| the notice of sale is issued, on which the | | | | 3. Due to the high rate of foreclosures there are |
| foreclosure sale is to be held. The property will | | | | an abundance of scams out there set up to take |
| then be sold to the highest bidder on the date | | | | your money, that promise to help you with |
| specified in the notice. | | | | negotiations. To avoid these scams NEVER PAY |
| In most cases, the borrower has up to nine | | | | A DOWNPAYMENT TO ANYONE OFFERING TO |
| months to redeem the property by paying the | | | | ASSIST IN A MORTGAGE MODIFICATION. |
| amount of the highest bid at the foreclosure sale, | | | | Discover how you can ethically modify your home |
| plus costs and interest. | | | | mortgage loan and save as much as 47% off |
| The judicial process in New Mexico will typically | | | | your current mortgage payment in as little as 60 |
| take 120 days. During this period a homeowner | | | | days without refinancing? |
| may attempt to make some arrangements to | | | | |