Archive for June, 2009
June 25th, 2009 | 
Author: An Interview with Attorney and Consumer Advocate, James M. Parsa from the National Loan Modification Center
Mr. Parsa, first of all, how does a homeowner qualify for a Loan Modification?
Attorney James Parsa from the National Loan Modification Center:
Fortunately, or unfortunately, depending on your point of view, our difficult times call for bold measures. And the banks and lenders out there are at the present time willing to work out deals with homeowners that take the initiative to present their case and are serious about keeping their home.
Almost anyone that is having a hard time making their mortgage payments will qualify for some kind of Loan Modification. I am hard pressed to think of any lenders that are not currently willing to negotiate a Loan Modification with a struggling homeowner, because the bottom line is that they don’t want another foreclosed property on their books.
So can people just call up the bank and get a Loan Modification done themselves?
Attorney James Parsa from the National Loan Modification Center:
Absolutely, but they have to be ready. They need to be willing to make a big investment in terms of being on hold for hours on the phone… multiple times. In addition, they need to be prepared to gather, prepare and submit the required paperwork to their lender, keeping in mind that each lender has different requirements to initiate a Loan Modification. So the first step is to have a clear and firm grasp of what they require to qualify you, evaluate your situation, and finally offer you a Loan Modification based on how you have presented your case. You also need to be sure to keep a consistent schedule when following up with the bank or lender, and always keep notes and records of all communications.
You should understand that the home retention divisions at these lenders are severely overwhelmed and have a hard time keeping up with all the details of every case. I personally know clients that would have to explain their particular situation from the beginning every single time they spoke with a representative. Banks and lenders were not prepared for this foreclosure crisis and are just now catching up in terms of staffing.
The process will typically take anywhere from 6 to 8 weeks once they have all of your materials, but sometimes much, much longer depending on the size of the lender. Once you have a Loan Modification offer, you should carefully read and evaluate the terms. I’ve seen some offers that require an exorbitant up-front good faith payment, sometimes in the tens of thousands of dollars, other offers are only good for a year or two, and still others require that you give up any equity in your house to the bank once the market comes back… these are not ideal terms for a Loan Modification.
So what are the ideal terms for a good Loan Modification?
Attorney James Parsa from the National Loan Modification Center:
The best Loan Modifications are achieved when:
1. There is a reduction in the principal balance, which usually means your your mortgage amount is reduced to the current market value of your home.
2. The loan is modified to a lower fixed interest rate.
3. There is an extension of the loan term (to 30 or 40 years) if necessary.
4. No good faith payment is required, or the payment is reasonable, usually the size of one or two mortgage payments.
5. The bank does not require any transfer of equity back to them when the market rebounds.
6. Any late fees, attorney fees, late payments and other charges are added to the end of the loan, or forgiven all together.
7. The terms of the Loan Modification are permanent for the life of the loan.
Keep in mind that it is very difficult to get your bank or lender to agree to every single one of these items, but it’s not impossible. At my firm, we have cases where we have negotiated all of these favorable terms for our clients. However, most of the time the goal is to reduce the monthly payment on a mortgage by any means necessary. That way, the family has a permanent solution and they can stay in the home as long as they like, or at the very least they get several more years in the home while the real estate market comes back, then they can sell their home, get their investment back, buy a different home, etc. Simply put, their options open back up.
Sounds like quite a bit of work especially for homeowners that are working full-time, are there organizations out there to help people through this process?
Attorney James Parsa from the National Loan Modification Center:
Yes, there are several non-profit and government funded organizations out there that help struggling homeowners to get through the Loan Modification process. However, just like the banks and lenders, these groups are overwhelmed. They do honorable, necessary work, but they just do not have the staff, funding our resources to do it all for you. They typically just serve as a guide to get you through the process and unfortunately cannot give you definitive legal advice once you get your offer.
What options exist for someone that does not have the time, patience or confidence to do this on their own?
Attorney James Parsa from the National Loan Modification Center:
You can hire a Law Firm that specializes in Loan Modifications. But make sure it is a Law Firm, and not some fly-by-night operation, or a Mortgage Broker turned “Loan Modification Specialist”. At a Law Firm, the staff usually takes care of all of the paperwork and phone calls on your behalf, and an attorney will advise throughout the process, check your loan documents, and give you valuable counsel at the end, when you get an offer from your bank or lender. On top of that, the firm will usually review all of your loan documents for fraud, misrepresentation or abuse on the part of your broker, brokerage firm or lender. If inconsistencies are found in compliance with real estate law, then you have even more leverage with your lender because in a successful lawsuit they would typically have to refund every last cent that you have paid them in mortgage payments, including interest, and they would have to give you a new loan at fair market value. However, legal action for mortgage violations is best used as a bargaining chip, and only initiated as a last resort in specific Loan Modification cases.
James, how can people contact your organization if they have any questions?
Attorney James Parsa from the National Loan Modification Center:
They can call my office at 1-800-585-1179 or go to my website NationalLoanModificationCenter.com.
Attorney James M. Parsa
Parsa Law Group / National Loan Modification Center
1-800-585-1179
http://www.NationalLoanModificationCenter.com
Better Business Bureau Rating:
http://www.labbb.org/BusinessReport.aspx?CompanyID=100076772
Personal finance is firmly on the school curriculum with over 10,000 pupils in England, Wales, and Northern Ireland looking forward to gaining finance qualifications, that they hope will enable them to pursue careers in the financial services industry.
The teenagers are studying optional GCSE, AS and A-level equivalent courses that have been designed as ‘stand-alone’ qualifications, and are delivered by the IFS School of Finance educational charity. Although approved by the Qualifications and Curriculum Authority (QCA) schools can choose whether or not to offer the additional subjects to students.
The GCSE equivalent courses were only launched a year ago and have already attracted 5,700 students. This follows on from the success of the AS and A-level equivalent courses that have attracted 4,500 pupils to enrol since 2005. Although the content of the GCSE course is designed to enable students to grasp basic financial concepts such as budgeting, opening and maintaining accounts and using different payment methods, the AS & A levels are far more in-depth providing a foundation for those wishing to work in the financial services sector.
Director of external affairs at IFS School of Finance, Anne Kiem said: “The fact that more than 10,000 14-19 year olds are now gaining the skills necessary to manage their own finances and make informed financial decisions is clearly great news.”
It is hoped that as well as basic financial skills the courses will encourage pupils to find out more about how the financial markets work in the UK, and offer a simple understanding of how complex financial products such as mortgages and life insurance work. Currently, schools must include citizenship in their curriculum but there is no requirement for personal finance to be taught at any level.
However, the government has announced plans to include personal finance modules within existing, related subjects such as personal social and health education (PSHE), following expert advice that the subject should be taught more widely in the UK.
Secretary of State Ed Balls has indicated that pupils will be taught “essential financial life skills” through the functional maths and revamped PHSE, which from September 2008 will include a new module covering economic wellbeing. But, he has stated that the “economic wellbeing” aspect will remain voluntary prompting the IFS School of Finance to lament a missed opportunity.
With the backing of the Building Societies Association and the British Bankers Association it believed that personal finance should be put on an equal footing with subjects such as history, geography and modern languages, meaning that although all students are not compelled to study personal finance, the schools will be forced to offer it as part of the curriculum.
Posted in Student Finance England | 
Tags: Equivalent Courses, Health Education, Northern Ireland | No Comments »
New York is one of the known states of United States of America. This state is the most populous state in the U.S and as a good place for getaway immigration because it is the nation’s center for finances, culture, and transportation. It is also the home of Hollywood, the stage of the most famous and spectacular movies.
New York is found in the Mid-Atlantic and Northeastern region of the United States. This state covers 54,556 square miles in terms of land size and is considered to be 27th largest state of the country. The city is also recognized for shopping activities with its glamorous boutiques, stalls, and magnificent department stores. You can be able to do your classy shopping and purchase all that you have in your lists. Great New York destinations are well-known because of its contrasting concept between its rich beautiful scenery of natural parks and its metropolitan atmosphere. The city can offer you a variety of attractions that will surely become your listed New York favorite spots.
Statue of Liberty
Getting to your selected destinations is practically easy by taking different transportations. You can be able to enjoy the sunsets, daytime travel, and evening view by taking the schooner. Or better yet, take a deck of the Circle Line Cruise that will bring you to a fantastic tour around the perimeters of Manhattan and even up to the signature landmark of the state, the Statue of Liberty. You can also explore the city and Manhattan by taking the red double-decker tour bus without parting your seat. Tour the city and take the subway or a taxicab that accepts your credit card and provides you with a receipt!
The Heights Cultural Tour and Bowery Poetry Club
New York is also a place for art appreciation and amusement. You can walk around and see the architectural treasures and wonders that Harlem and The Heights Cultural Tour brings you. If you are a hip hop music lover, you will get by its New York City roots and will have the chance to experience the three-decade musical history genre. Or, take pleasure in the soul warming Jazz music at Small Jazz Club and be pleased about the old times. For the people who fancy the literary arts, Bowery Poetry Club is the place for you. Founded by Bob Holman, a renowned artist for modern poetry, Bowery Poetry Club grants you the chance to witness the club’s comedy, poetry slam, and creative music.
Hollywood
New York City is the home for spectacular movies and Hollywood stars. It is a stage for many best-seller films, Indie motion pictures, and TV shows. Take the New York TV and Movie Tour and delve into the places used in movies and were made known in the big screen. Get a chance to experience The Sex and The City Tours, the known TV series and take a sneak peak of the homes of east coast celebrities like Gwyneth Paltrow, Sarah Jessica Paker, and Katie Couric.
Niagara Falls and the Thousand Islands
Your stay in New York will never be complete if you fail to see the other side of its beauty. Experience the nature trips it can present you. You can do adventure trips within the state through Niagara Falls biking and cross city skiing, or enjoy fishing at the Finger Lakes, also famed for its wineries and vineyards. Take a ride on the hot air balloon or float planes at the Thousand Islands. Island life is within reach in New York, as well. Long Island brings world class golfing and beautiful wine trails while Hudson Valley captivates you for its museums and country fairs.
These are just a few of many places that you can visit in the Big Apple. This urban atmosphere metropolis has its best compliment for its natural beauty as well.