LAW OFFICE OF BARRY W. ROREX, PLC

AFFORDABLE LEGAL REPRESENTATION                                                                   (520) 495-7596

LOAN MODIFICATION AND FORBEARANCE
Options When You Can't Pay Your Mortgage

   In 2009, nearly one of every sixteen homes in Arizona (6%), received a foreclosure notice. Along with California, Nevada and Florida, Arizona is ground zero in the national foreclosure epidemic. There are many reasons for this foreclosure crisis but the decline of an overheated real estate market, loss of employment income and a diminished access to credit are high on the list. Given the magnitude of the problem, it is easy to see why so many Arizona homeowners have attempted to obtain some relief from their lenders in the form of either a loan modification or forbearance. In large part, these attempts have have produced lots of frustration but very limited success. 

   Recently, some of our clients have started to see some hope and potential from President Obama's new Making Home Affordable program. Although some modifications are now being reported, many more homeowners are still receiving confusing and contradictory information from the banks, lost documents, long waits and little success. Sadly, months of attempts to work through the modification process still often ends with a foreclosure or eviction notice.

As you can see, this page is being redesigned to update available information. Please check back in the near future or call The Law Office of Barry W. Rorex at 
(520) 495-7596.

LINKS

H.U.D.

H.U.D. Approved Counseling Agencies

Foreclosure Guidance Counseling

Making Homes Affordable Program

ReconTrust













Law Office of Barry W. Rorex, PLC
2 East Congress Street, Suite 900
Tucson, AZ 85701
(520) 495-7596
FAX (520) 838-8061




















LOAN MODIFICATION

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HAMP - HOME AFFORDABLE MORTGAGE PROGRAM

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HARP - HOME AFFORDABLE REFINANCE PROGRAM

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LOAN MODIFICATION

     Often, rather than resort to foreclosure and the expense of reselling a property, lenders are willing to modify the borrower's obligation in some way so as to, hopefully, keep the borrower in the property. Loans may be modified in several ways. The interest rate can be lowered. The term of the loan can be extended. The loan amount can be reduced. Or, any combination of these modifications can be made in order to reduce the monthly payments.

     In practice, few lenders are willing to modify the loans in all but the most dire circumstances. Major real estate lenders, such as banks, routinely require borrowers to be significantly behind in their payments before they will even discuss modification.

SHORT SALES

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 DEFICIENCIES

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POTENTIAL TAX TRAP

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  Fortunately, there is currently a window for many homeowners to avoid this taxation. The Mortgage Debt Relief Act of 2007 allows many homeowners to exclude from taxable income the discharge of debt on their principle residence. As currently written, the exclusions are scheduled to expire in 2012. There are limitations on the amount and types of property subject to the exclusion so this is a topic that should be discussed in detail with an attorney or tax professional.

 

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