Atty. Raymond Bulaon

Loan modification: Do it yourself or get help?

Tuesday, 17 March 2009 22:23 Atty. Raymond Bulaon

AS our economy continues to crumble, foreclosures continue to rise at an unprecedented rate. Distressed homeowners struggle to keep their homes as they desperately look for possible solutions. A lot of people are trying to get their loan modified by their lender but for most, the process has been extremely frustrating.

A loan modification is simply changing one or more terms of your loan that allows you to bring your account current (if you are delinquent) and to make your payment more affordable. It is not the same as refinancing where you need to obtain a new loan to pay off your current loan. Thus, it doesn’t require that you have "good" credit. As a matter of fact, people who need loan modification are usually people whose credit has already been damaged by late payments. In loan modification, the terms that can be changed depend on what type of loan you have. For example, if you have an adjustable rate mortgage (which is what most of the problems loans are), you may be able to change your loan to a fixed-rate loan. If you have a fixed-rate loan, you may be able to lower the rate so that the payments can be lowered accordingly. In some cases, you may extend your loan term from 30 to 40 years. Principal reductions, though rare, may sometimes be granted.

Have you used credit cards to pay your mortgage?

Wednesday, 11 March 2009 00:58 Atty. Raymond Bulaon

ACCORDING to a recent newspaper article, a lot of consumers are falling behind on their credit cards at an alarming rate. This conclusion comes from analysis of financial data obtained from the country’s largest credit card issuers. The greatest increase, according to the study, is among accounts that are 90 days late. If you have ever been 90 days late on paying your bills, you know that by this time, your accounts are usually turned over to a collection agency. This is when bill collectors start harassing you and you don’t even want to answer your phone anymore.

Experts agree that this growing problem is partly a result of the mortgage crisis and is only expected to get worse in the days ahead. Obviously, when homeowners can barely afford to even make their mortgage payments, other debts such as credit cards simply have to wait to get paid. What’s making this situation worse is that a lot of people in foreclosure are also tapping into their credit cards in desperation just so they can make their mortgage payments. Some of the biggest lenders like Advanta, GE Money Bank and HSBC are reporting increases of 50% or more on delinquent accounts compared with the same period a year ago. Economists are predicting that delinquencies and defaults will rise further as the foreclosure crisis worsens.

Foreclosure: Do you have a realistic plan to keep your home?

Wednesday, 04 March 2009 13:39 Atty. Raymond Bulaon

A LOT of homeowners who are behind on their mortgage payments are asking me: Is it better to lose your house to foreclosure or file for bankruptcy protection and try to save it? What are the effects of both on my credit? Will I be able to buy another home again with a foreclosure or bankruptcy on my credit record? These are important questions to ask yourself if you are in this situation. But I think that the more important question to ask is: What is the most realistic option I have under the circumstances and do I have any contingency or back-up plans if things don’t work out as expected? In other words, should you hope for the best but still prepare for the worst? In life, there are no guarantees.

Obama Plan Supports Mortgage Modification

Wednesday, 25 February 2009 02:23 Atty. Raymond Bulaon

I JUST heard on the news today that President Obama has unveiled a large scale mortgage modification and home lending plan designed to reduce the number of foreclosures. Apparently, $75 billion has been allocated for mortgage modifications and $200 billion will be used for backing government-controlled giants, Fannie Mae and Freddie Mac. Total cost to taxpayers: $275 billion. This is all part of the $787 billion economic stimulus package that the president has already approved.

Analysts cautioned that although as many as 9 million homeowners may benefit from this plan, it would not come close to stopping the tidal wave of foreclosures. Currently, the delinquency rate on all mortgages across the country is close to 10% and it is estimated that unless something is done about the foreclosure crisis, as many as six million families could lose their homes in the next 3 years. The president’s plan has been praised by consumer advocates as well as the financial industry.

Is bankruptcy the right choice for you?

Wednesday, 18 February 2009 01:11 Atty. Raymond Bulaon

Are you currently overwhelmed with debt problems that you can no longer handle on your own? Thinking about filing for bankruptcy but are afraid to make a decision? Do you feel stuck and paralyzed in your situation, unable to take any action? Maybe just thinking about your situation gives you this sick feeling in your stomach that won’t go away. Is there a way out of your seemingly hopeless situation?

A famous author said: "It is in those moments of decision that our destiny is shaped." I think what this means is that the decisions we make in life are so powerful and regardless of whether you realize it or not, you are constantly creating results in your life, good or bad, at every single moment. You are the creator of your destiny.

Proposed law for “forced” loan modification?

Wednesday, 11 February 2009 05:50 Atty. Raymond Bulaon

According to recent statistics, there were more than 3 million foreclosure filings in 2008. One in 54 homes received at least one foreclosure notice during the year. Our policymakers in Washington are scrambling for a solution to help troubled homeowners. When will relief be available?

As foreclosures increase, some homeowners are trying to take advantage of falling interest rates in order to lower their mortgage payments. According to the Mortgage Bankers Association, 85 percent of all mortgage applications are now for refinancing. The average interest rate for a fixedrate mortgage for 30 years is approximately 4.75 to 5 percent. The problem with refinancing for most people, of course, is the obvious fact that property values have declined significantly, and most properties have either zero or negative equity. Thus, a lot of homeowners are stuck with mortgage payments that they can no longer afford. As a result, homeowners are now looking at loan modification as their only other option.

Foreclosure Alert: Are things about to get better or even worse?

Tuesday, 03 February 2009 21:40 Atty. Raymond Bulaon

As home values continue to plummet and the number of foreclosures continue at an alarming rate, the questions people have been asking are: "Is the housing market ever going to recover? If so, when?". Property values everywhere are down at least 25-30 percent, sometimes more, in certain areas and a lot of people’s homes are "upside down" (amount owed exceeds what the property is worth). People want to know whether they should hold on to their properties or if they are better off just walking away.

These are difficult questions, no doubt, and people are confused about their options. As I see it, the US economy is a big mess and without the stabilization of the housing market, the chances of a sustained economic recovery anytime soon is almost zero. The reason is because the government itself is just beginning to understand how we got to this point in the first place and it seems like a lot of our elected leaders didn’t even see this problem coming although it had been brewing for years. We are facing a deep recession and it will take time for the economy to fully recover.

Bankruptcy, loan modification or both?

Tuesday, 27 January 2009 21:24 Atty. Raymond Bulaon

(2 votes, average: 5.00 out of 5)

As the mortgage crisis continues unabated, more and more people facing foreclosure are also being forced into bankruptcy. It appears that a lot of homeowners who couldn’t make their mortgage payments have been tapping into their credit cards and other personal lines of credit to get the cash that they need. Once the credit cards and the credit lines are maxed out, of course, these people find themselves in an even bigger financial mess. According to a recent survey, credit card debts are at an all-time high and, if this trend continues, I predict that bankruptcy filings will continue to rise as they have over the last three years since the new bankruptcy laws were passed.

Should you file or avoid bankruptcy?

Wednesday, 21 January 2009 01:07 Atty. Raymond Bulaon

If you are like most people who are painfully struggling with debt problems, your mind may be filled with a lot of unanswered questions. How do I make sure that I am making the right decision? Is there a way out of this besides filing for bankruptcy? Isn’t filing for bankruptcy the worst thing that I can ever do to my credit? You’re interested in getting the right answers to these questions, aren’t you?

Unfortunately, there is so much misinformation about bankruptcy out there that a lot of people simply accept and believe without even finding out the truth for themselves. A lot of these misconceptions about bankruptcy are extremely damaging because they tend to be accepted blindly and without question especially if they come from well-meaning friends and family members. You’d be surprised to find out that even though your loved ones care a lot about you and are concerned about your debt problems, they are often the WORST source of bankruptcy advice!