Why KT Bankruptcy Lawyer has the best loan modification attorneys in Los Angeles
The lawyers in this firm have helped countless individuals with loan modifications in California. You would be teaming up with experienced professionals who are knowledgeable about the types of loan modifications. You would also be having peace of mind knowing that you are working with people who would never take advantage of you.
During consultations, the top loan modification attorneys in Los Angeles will also present and elaborate on the loan modification options available and applicable to your situation.
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Loan modification options
- In a forbearance, the lender suspends or reduces the payments of the borrower to allow the latter to get through a short-term financial ordeal. The payments may then be done in a lump sum or in installments.
Interest Rate Reduction
- An interest rate reduction decreases the interest of a loan. The reduction can be temporary or for the full term of the loan. Oftentimes, the interest that the lender gives up will be added to the principal.
- A loan extension prolongs the term of the loan. In some cases, it is possible to extend the term of a loan for up to 40 years.
- This modification option is specifically for Federal Housing Administration (FHA) insured loans. Borrowers who are at least four months delinquent on the property in which they live can avail of partial claims.
- The borrower must first prove and document the hardships that caused them to miss the payments. Furthermore, the borrower must be able to prove his current capability of making the full mortgage payment. In a partial claim, the missed payments accumulated are merged into zero interest second mortgage, due when the property is refinanced or sold.
Aside from having the top loan modification attorneys in Los Angeles, this firm also has the best bankruptcy lawyers in Los Angeles. From tax settlement, foreclosure, debt consolidation, debt relief, or short sale, we can help you achieve a fresh financial start.
Chapter 7 Bankruptcy
- If you are the sole proprietor of a business, we can help you wipe out your personal and business debts through a Chapter 7 bankruptcy. This type of bankruptcy also allows corporations and limited liability companies to transparently liquidate before closing down. This obliges the trustee to sell the assets and pay the creditors allowing you to start fresh! This goal can be achieved within three months.
- The downside of this type of bankruptcy is that it does not allow you to protect your assets through exemptions. The trustee will have to put all of the assets on sale and close down the business.
- There are also income requisites based on the Chapter 7 means test. However, you will not be required to comply with the said requirements if your business debt exceeds your personal debt. The intent behind the test was to keep high wage earners from filing for bankruptcy under Chapter 7 of the Bankruptcy Code. The alternative for these high-earning individuals is to file for a Chapter 13 Bankruptcy.
Chapter 11 Bankruptcy
- This chapter of the Bankruptcy Code provides for the reorganization of corporations or partnerships. A Chapter 11 debtor usually prepares a plan of reorganization to keep its business running while resolving debts. Needless to say, you will need a good Chapter 11 attorney to prepare the necessary documents such as reorganization plans and disclosure statements.
- A Chapter 11 Bankruptcy does not put the personal assets of the business owners at risk. A corporation exists separate and apart from its owners. However, there is an exception for sole proprietorships as it does not have an identity separate from its owner. This means that a bankruptcy case involving a sole proprietorship involves both personal and business assets of the owner-debtor.
Chapter 13 Bankruptcy
- Unlike a Chapter 7 Bankruptcy, corporations and limited liability companies cannot file for a Chapter 13 Bankruptcy. What this type of bankruptcy does is permit you to keep all of your assets while paying back your debts through a repayment plan.
- You will also be able to reorganize business and personal debts by filing a personal Chapter 13 Bankruptcy. However, this is only possible if you are the sole proprietor to the business. Corporations and limited liability companies are restrained from filing a Chapter 13 Bankruptcy.
- A Chapter 13 Bankruptcy also allows you to (1) catch up on credit accounts wherein you used a property as collateral; (2) pay off priority debts such as tax or other domestic obligations; and (3) reduce a loan to the property’s value.
- In a principal deferral, the lender will modify the loan to reduce the payments of the borrower. As a consequence, there is a decrease in the amount of principal that is paid off with every payment.
- A reinstatement is not a loan modification in itself. The term describes a delinquent mortgage paid off by a borrower. A reinstatement stops a foreclosure process as the borrower has caught up with all the late or missed payments.
- Prior to a foreclosure, the lender and debtor may set up a repayment plan that will get the latter current on both payments and fees. This usually involves payment of a certain percentage of the delinquent amount and increased payments until the debt is made current.
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Loan modification fraud in California
Countless people in Los Angeles including yourself are at risk of becoming victims of the California loan modification fraud. Many homeowners have found themselves in a desperate situation because of the rising rate of unemployment. Their desperation can also be attributed to the falling prices of homes. Among those most vulnerable are the elderly, low-income earners, poor creditors, and non-native English speakers. Fraudsters have been taking advantage of these people, taking their hard-earned money while doing nothing to help their victims save their homes. If you think you are in danger of becoming a victim of this scam, you may want to get help from KT Bankruptcy Lawyer’s best loan modification attorneys in Los Angeles, California.
Types of California mortgage frauds
The loan modification fraud has several types as scammers continue to look for more ways to grab easy cash from your pockets. Our loan modification lawyers have identified signs of a potential mortgage modification scam:
- Fraudulent individuals will usually make upfront promises to work wonders, even before they have even scanned through your financial documents;
- Scammers will request for big advanced payments; and
- Some fraudsters will suggest that you sell your property to a buyer who will rent it back to you until you will be able to repurchase it.
If you have already fallen victim to the California loan modification scam, you can schedule a consultation with KT Bankruptcy Lawyer and have free loan modification help. The best bankruptcy attorneys in Los Angeles 90017 can review your documents and help you take the necessary legal steps toward a solution.