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Attorney Peter Daigle Speaks With Katherine On “This Needs To Be Said” About Loan Modifications

 

Hello, everyone. Thank you so much for joining us today. Our friend, attorney Peter Daigle, who I will call Peter in just a few moments is joining us. And we’re going to talk about loan modification. Now we’re not the attorneys. I know that, but it may seem strange to you to have bankruptcy and loan modification in the same conversation. He is our bankruptcy attorney, but he’s coming today to talk with us about loan modification. And I’m gonna throw another word in there too, because things have been strange. I’m curious if, COVID is the reason that this conversation is needed to be had, does it need to be said, Hey, Peter, how are you Thank you for talking with me today. I always enjoy talking to your audience. So yes, the answer’s yes. The updates on loan modifications are a result of COVID. So that’s what we’ll be talking about today.

Okay. All right. Well, Peter, I’m taking out my pen and paper, so there’s quite a few. The last time I had read it was something like 17% of all mortgages in the United States were in default right now. So that’s a large number. And so obviously it’s stressful for the banks, as well as in the lenders, as well as the homeowner, because what’s going to happen to all those defaults. So what they’re doing is they’re streamlining the process, to modify the loans and here’s some dates to remember. So, originally it was as a February, that, the foreclosures could commence again for people that were in default. And now there’s the date of June 30th. Okay. A home, a homeowner that’s behind on their mortgage has until June 30th in order to, to somehow get current. Now they’re setting this up with not all of the lenders, but some of them, or it’s basically a simple, a streamlined process where you just go online and you will automatically take the missing payments and add them to the back end of the loan.

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Okay. So if your loan was scheduled to be paid off, let’s say in 2030, it would not be paid off until 2031. Okay. So what’s it. 12 missing payments would go to the end of the loan. So what they’re trying to do is make it easy. So all so that there’s not lots of applications to fill out like where in the old days, I mean the old days are still the old days here now, but you’d have to fill out applications and submit documents. So they are making it easy right now. So basically if you were affected by COVID somehow and were not receiving your full wages, you’ll be able to obtain a streamlined loan modification process. And you do not need an attorney for that. You don’t need any assistance they’ll work it out on their own. Okay, so, what I would say to everyone is to contact. If you fit into this classification of people that have been behind since COVID contact your lender and find out if there’s a streamlined process to obtain a loan modification. Okay, now if you will, behind on your mortgage before March, first of 2020, you’re not going to qualify for this program and you might have a problem.

Yeah. So in other words, if you have problems predate COVID, this process is not going to assist you. So what I would do, and then you’re going to, then you’re going to have to look into either doing your regular Mont loan modification. And if that’s the case, I’d get to work on it. Now I wouldn’t wait until after June 30th. Okay. So let’s talk about the classifications of people again and be sure one is those borrowers that affected post-match for us. And I’m not sure of the exact date, maybe exact date, maybe the February payment, but it’s pretty, it’s either February or March, whatever that payment is. And the individual lenders work off of, if you can demonstrate that you are unable to pay as a result of COVID, then automatically a loan modification, you can do it without a lot of documents. If you’re not part of that group.

And you’re just before then you need to start looking at loan modification. Now, if your income does not support, being able to afford, your payments after July, then you want to consult a bankruptcy attorney at that point, and they might be able to assist you because, if you’re not going to be able to afford this home, for whatever reason COVID or not, COVID, then you’re going to have to figure out a plan B. Okay. So, and it’s pretty self-evident whether or not you’re going to get a loan modification, not because if you can not make the current payments, the payments that you were supposed to be making, then you’re not gonna qualify. They’re not gonna accept you. If your income is drop where you can’t make your payments, they’re fairly co receptive to assisting, someone, if they, have the income to support the current payments.

Okay. Yeah. That, that, isn’t what it’s about. Okay. Yeah. If you’re one of those folks, otherwise, then it’s not the org. Okay. Okay. So, but let me back up. You said, they, if, if around, I guess if they’re, getting behind on their mortgage happened during COVID or as a result of COVID, they may have an opportunity to get a loan modification, so they would need to contact to see. But if it’s not, I’m sorry, go ahead because I was trying to get it straight. Okay. Then let me get us into a three class, three groups of people. Okay. Number one, group number one has got a problem. Justin’s COVID started Kevin’s number one. They’re going to get a no document modification. No questions asked. Oh, I’m glad I did ask a question. No. All right. Okay. No, that’s right now, only for some of the lenders, I’m sure at some point, but they need to talk to the lender.

So if you’re in group one, don’t worry, go work out group to those individuals that will be hired before. Okay. If they are able to pay their mortgage payment, let’s say your payment is $1,500 a month, 1,500. And let’s say you could afford it. And then you could afford a little bit towards what was the earliest. And before then you’ll most likely get a loan modification, but you’re going to have to go through all the paperwork. Right. So, but then that’ll be with paperwork. Okay. Okay. And file an application. I’ll be getting accepted three free as those that can’t afford the payment right now. Oh, okay. Okay. I was, yeah, I’m mixed all three of the groups together. I’m glad that we did that. Okay. Group three is don’t be in group. I have no money. I don’t. I make, you know, I can afford a thousand a month, but I can’t afford a 1500 a month.

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And then you can talk to a bankruptcy attorney. Okay. We’re gonna help you. Okay. Okay. So those three groups of people that are out there. Okay. all right. Well, but they still got, they still have help though. So I hope I’m not cutting into what you’re saying. You have, you have more force. Cause I don’t want to run my mind. Right. You just got to figure out what group you’re in. Okay. Right. And they still have help. I, you, you and you do this every time that we talk is, okay, you can do this or you can do this. And we’re still working on bankruptcy, not being a bad word because it’s not that they’re totally out of luck. He’ll get to talk with you and work with you. Because also if you’re behind on a, on a bill and this time we’re talking about a mortgage and you happen to be, you know, let’s say category, number two, you’re behind, but you could pay a little to catch up.

What would life be if you didn’t have to pay to catch up. If there was another option, I’m not saying get out of anything. But with you, Peter, I’ve learned that there are some other options, more things to consider. And it helps the older I get to realize that life is not just right or wrong. It’s one right answer. And one wrong answer. There are many options. And you got to see what size fit for your situation. You know So you’ve got it. There’s an option. You, you may not be able to use the loan modification and get my tongue together. You may not be able to use the loan modification, but you still, there is some help. But today we are talking about, if you are to use the loan modification, who, who’s that person that will be able to do that. And that’s one of the things that you would tell us anyway, if we came to you and weren’t, we weren’t quite ready for a bankruptcy, or we didn’t need a bankruptcy, you would still tell us what we could do.

And we didn’t have to, come and work with you. So this is along the lines of what you do. This is straight in line with what you do. okay. Look, I was looking for there to be like a sharp turn. I was like, well, Peter, you do this. This is what you tell us anyway. So there are other options. So for someone who wants to talk it out, because you don’t know on your own, I could sit at home and say, well, maybe this did happen. You know, outside of COVID. But if I have a conversation, even if you contact Peter and talk with him, he can reverse engineer it for you. You know, it’s not your job to commit this to memory. He went to school for this. And just like I asked questions during each discussion, we have call him, ask questions because I don’t know your situation.

And your situation could be different from the one I had years ago in different from anyone that you’ve known, that’s ever had to recover because that’s what bankruptcy and loan modification and any other term that Peter shares with us that reset our financial situation. So you don’t know until you talk with someone and I want to tell you, I want to admit to you that I know it is embarrassing. And we feel like we should know these things already, and we should not be in this place, but life happens. And this is a tool that you can use. And you can hand it off to someone else and say, listen, a friend of mine, wink, wink was in this situation. And this is what they did. You may want to follow these steps to recover for yourself. And recovery feels a lot better to me than saying I failed and I have to undo this failure is the recovery, because you’re going to continue with your life. It’s just, this part had a, a stop. So, I’m, I’m enjoying this and, and you’re doing exactly what you normally do. You give us options. so we’re gonna stop is that the banks really want to do something. They really want to work with you. So if you have the income to support it, they’re there to help you. They’re not your enemy.

Then that’s another B word bank. That’s not a bad word. We’ll have to talk some more about that then, because yeah, you do get nervous because they’re going to take something from me and they’re going to tell me now, you know, so it is unnerving. What sells people, how to get in touch with you outside of our discussion time here. Thank you, Katherine. So they can reach me@daiglelawoffice.com on my website, or they can call me at (508) 771-7444. And that’s DAIGLE. Thank you so much. And until next time have a super day, you took other, thank you. Thank you.

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