Loan Solutions Works with Clients to Overcome Current Market Problems

The collapse of the subprime sector of the mortgage industry has been brutal for homeowners as well as lenders. With double digit home depreciation, a weakening economy, and record foreclosures, lenders seem to be more willing to renegotiate adjustable home loans. Additional pressure from lower than average home purchases has also made foreclosures more expensive than renegotiation.

Various lenders are more or less aggressive in assisting troubled homeowners. Countrywide seems to be one of the least motivated, while Aguent is openly invested in renegotiation options. These options include reducing loan amounts, forgiving missed payments, deferring interest, and providing fixedrate new loans.

"Many people don't realize the enormous pressure on banks to avoid foreclosures," said Chuck Costigan, president of Loan Solutions Expert in Thousand Oaks. "Foreclosures are quite costly. Market conditions as well as current and new legislation is making lenders pay big time. So they're beginning to show signs of willingness to work with their subprime homeowners."

A variety of factors are converging on the industry and causing unprecedented difficulties. These factors include increasingly stringent lending policies, the increasing cost of money, demographic shifts, rising fuel costs, and overbuilding. While babyboomers are becoming "empty nesters" looking to downsize their homes, younger generations are finding it either too costly to buy or more appealing to rent.

Rising fuel costs are driving thousands of workers closer to their city office locations where homeownership is more expensive. This is leaving the suburbs with fewer buyers compounding the problems caused by overbuilding. Of course, the lack of U.S. economic stability is a major factor.

"There are so many key factors driving lenders to consider options they would have never dreamed," said Costigan. "But all of this is pushing back the tide of foreclosures and making loan modifications very attractive to lenders. We read this as very encouraging to strapped homeowners."

Loan Solutions Expert Inc. is part of a growing home loan modification industry. The company specializes in helping people who cannot qualify for traditional refinancing. Instead they assist homeowners in renegotiation with their lenders.

"We often have access to people within lending institutions who are formally or informally willing to modify these loans," said Costigan. "And with our lengthy experience we know just how far lenders are willing to go in loan modification."

Loan Solutions Expert is not a refinance company, so the usual restrictions (good credit, equity) do not apply. The company specializes in home loan modifications, refinances, purchases, short sales, and foreclosures.

The firm offers free seminars to assist homeowners throughout Ventura County and the San Fernando Valley.

For more information, call (805) 435-1231.