If you are delinquent on your second (or junior) mortgage secured by a real estate and the value of that real estate is lower than the total of the outstanding principal balance of all mortgages, you may be a good candidate for a loan settlement in which a repayment of a second (or junior) mortgage for cents on a dollar may be possible. Many banks will be able to accept a payoff of their loan and release their junior mortgage at a substantial discount because it is the best possible outcome in their situation.
A delinquent mortgage is a problem not only for the borrower; it is a serious problem for the lender as well. Every delinquent loan account simply is a bad asset on lender’s balance sheet and it negatively affects lender’s financial statements and financial position. Also, delinquent loan accounts may cause difficulty for some financial institutions to maintain capital reserves desired by their shareholders or required by the government regulations. That is exactly why some lenders prefer to write off delinquent loan account as a total loss or sell it to a third-party investor for a few cents on a dollar than to hold on to a bad loan account where a chance of resolving the situation in a short term is low.
Just like a loan modification process, the loan settlement process is not easy. The lender’s requirements usually are arduous and complex, the process lengthy and dealing with lender’s representatives may be extremely frustrating. A loan settlement request that is not planned correctly at the outset is likely doomed to fail.
At Loza Law we have not only legal but also financial acumen to increase your chances of successfully obtaining a desired loan settlement. We have successfully represented clients in loan settlement matters with large financial institutions like BMO Harris, Citibank, Fifth Third Bank, JPMorgan Chase, PNC Bank and their affiliates, as well as with smaller local financial institutions.
Please contact our office at (847) 297-9977 or email us at [email protected] for a free and strictly confidential consultation regarding a potential mortgage loan modification with one of our experienced attorneys.