www.azrefiinfo.com

At the moment nearly everybody are planning on re-financing as a result of these trying times.

There are a lot of refinancing solutions so be sure to seek information before you commit. We hope this site helps

Bank Dual Tracking Process Hurts Homeowners

Chicago, IL (PRWEB) February 28, 2011

While most financial analysts agree that the American economy is now in recovery, the nation’s foreclosure crisis continues to wreak havoc on the lives of many homeowners. In 2010, 33 states witnessed an increase in foreclosure rates, with Arizona, Nevada, New Jersey, and Utah reporting the biggest jump in home foreclosures. People are continuing to lose their homes to foreclosure in record numbers. What is most surprising is that many of these foreclosures occurred while the homeowner was negotiating with their bank for a loan modification to lower their mortgage payment. “Banks are employing a loan-modification/foreclosure “dual track” system which is confusing and misleading. You could argue that banks are punishing homeowners who are doing their best to save their homes from foreclosure,” states Richard G. Fonfrias, J.D. of Fonfrias Law Group, LLC (http://www.chicagomoneylawyer.com), a leading Illinois bankruptcy and financial rescue lawyer.

Dual track loan modification/foreclosure is when banks simultaneously pursue foreclosure action and loan modification evaluation. The dual-track system has been responsible for accelerating foreclosure for many homeowners, including ones who were directed to pay lower payments during the loan-modification trial period and then were fined for failure to pay the full amount when the loan modification failed. “It is apparent that the banks want to foreclose and are only going through the motions of loan modification. Often the homeowner is caught off guard, believing that they are safe from foreclosure because they have made arrangements for loan modification with the bank, but in reality the bank has placed them in a dual track system; negotiating for a modification, while at the same time initiating foreclosure proceedings,” says Fonfrias.

Consumer advocacy groups want to end dual tracking and are outraged with banks and other mortgage investors, like Bank of America, over dual tracking where thousands of borrowers are losing their homes while negotiating to lower mortgage payments. Many feel that homeowners are being tricked by the banks and feel that more needs to be done to increase public awareness about the shortcoming of the dual track system and to curtail the questionable practices of some banks servicing delinquent mortgages. Financial analysts have been disappointed with the performance of loan modification programs like the federal government’s Home Affordable Modification Plan (HAMP) which has done little to reduce the number of foreclosures. The number of mortgage modifications in 2010 actually fell 58% from the April 2009 peak.

“It’s very important for home owners considering loan modification to understand how this less than straightforward process works and to be fully aware of all its implications. Banks have been less than forth-coming disclosing details. Free foreclosure counseling is available to consumers from government-approved agencies. Many homeowners have also lost their homes due to mistakes made by banks during the convoluted dual tracking process. Once this has happened, it is extremely hard to reverse a home foreclosure sale and to repair the damage caused to all parties. Financial rescue and bankruptcy lawyers are seeing more of these cases every week,” says Fonfrias.

Contact Information:

Richard G. Fonfrias, J.D.

Fonfrias Law Group, LLC

First National Plaza

70 West Madison, Suite 1400

Chicago IL 60602

Phone: 312-969-0730

http://www.chicagomoneylawyer.com

About Fonfrias Law Group: Chicago’s financial rescue and bankruptcy lawyer Richard Fonfrias of Fonfrias Law Group is ready to assist Illinois homeowners in serious financial trouble and consumers facing mounting financial debt. With eighteen offices serving Chicago and communities throughout Illinois, Florida and California, Fonfrias Law Group offers all forms of bankruptcy legal services, tax defense, debt consolidation, bad credit repair, foreclosure defense, credit card debt management, loan and mortgage refinancing advice. To find out how Chicago’s experienced financial rescue and bankruptcy legal team can help you, call 312-969-0730 or inquire online. http://www.chicagomoneylawyer.com

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Related Arizona Refinancing Press Releases

However refinancing might be a good option both in bad and good financial times. It can be vital to know issues associated with refinancing, when it can be useful in addition to what you need to avoid. This is often a somewhat complex if you're new to it but the information and facts you can get right here can help.

At the moment plenty of folks are contemplating mortgage refinancing thanks to the challenging financial times.

There are plenty of home refinancing products so always do your research before you commit. The information you find here should help

Bank Forclosure:An Explanation

Bank foreclosure, or just foreclosure as it is more commonly referred to, is a process which is initiated by the mortgagee or a lien for the purpose of having the court order the debtor’s real estate sold to pay the mortgage or other lien. Basically foreclosure would take place if you were not making payments on your mortgage and the seller of the home or lender of your mortgage was forced to sell the house in order to receive the money owed for your mortgage.

Foreclosure is a very common problem, as many people go into the home buying process thinking that they will be fine, only to find out one they are actually in it that they have so many other bills or bought a house that was too expensive and they are simply unable to make their mortgage payments

Many people do not want their purchased homes to be sold by foreclosure because of sentimental issues and also because you will find that you have to put a lot of effort in purchasing a new home; in addition you will find it extremely difficult to get finances for your new home because of your poor credit rating.

Tips

The tips given here may be of much use for you to avoid foreclosure of your home. As a first thing you must ensure that there is a household income versus expenditure budget. A budget is nothing but a plan of expected income and expenditure over a specified period and it is necessary for you to prepare the income both you and your partner makes per month and also the bills you have to pay during the month.

Set your bills in order of priority, making your mortgage one of the most important of course, so that you can see where your money is going and make sure that it is getting to the right places first. For instance you may have bills that you are paying which could be held off for a bit or even eliminated altogether.

But bear in mind refinancing can sometimes be a great idea in both negative and positive housing markets. It can be vital to understand what's a part of re-financing, when it can help and anything you need avoiding. This can be a somewhat complex if you are having their first go at this task but the particulars you'll find below should help.