preparing-for-settlement-step4-5.html

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title: Preparing for a settelement steps 4 and 5
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			<div class="small-12  columns  "><h1 class="main-header-stages">STEPS 4-5: Tell Your Story </h1></div>
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			<div class="small-12  columns  "><h1 class="main-header-stages">STEP 4: Tell Your Story </h1></div>
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			<div class="small-12  columns  "><h2 class="main-header-stages">Settlement conference stages 4-5 </h2></div>
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			<a href="#panel1"><h2>STEP 4:TELL YOUR STORY</h2></a>
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							<p>The reasons

you ended up in foreclosure are probably 

long and complicated, and each borrower’s

situation is slightly different. The Settlement

Conference is a chance for you to share

your story with the Court and the Bank. 

By preparing to tell your story before the 

Settlement Conference, it is more likely you

will tell your story in a way that everyone can 

understand. They need to know why you are 

in foreclosure, and what you have done to 

resolve your situation. The clearer you are to 

the Court and the Bank, the easier it will be to 

resolve the foreclosure. You should write out 

answers to the following questions
	

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							<ol>
								<li>What are the reasons for falling behind on your mortgage?</li>
								<li>What have you done to try to keep your home?</li>
								<li>Were there any terms of your loan that were different than what you were promised?</li>
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							<ol>You should also be able to talk about basic

information about your loan, such as the

following:
<li>The current monthly payments are $_____.

The current interest rate is: ______% and my 

interest rate (circle one) changes/does not 

change. I last made a payment on my loan in 

_______________ (list month and year).</li>
<li>Have you attempted to work with your Bank

to find a solution already? If so, make a list

below of all the people you have contacted, 

and the times you have sent in documents 

before the Settlement Conference.</li>



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			<a href="#panel2"><h2>STEP 5:ATTEND THE SETTLEMENT CONFERENCE AND WORK TOWARDS A LOAN MODIFICATION</h2></a>
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						<p>NOTE TAKING PAGES: Bring this with you to

all the Settlement Conferences you go to, and 

take notes during the conference.</p>





<p>Before you leave, try to summarize your understanding of what happened at the Settlement Conference, and what will happen next. Ask the Court to confi rm you are correct.</p>
<h2>WORKING TOWARDS A LOAN MODIFICATION</h2>
<p>If your loan can be modified there are several 

ways your Bank will likely go about it. The 

Bank may do any of the following:</p>
<ol> 

<li> Lower your interest rate </li>

<li> Convert an Adjustable Rate Mortgage to

 a Fixed Rate Mortgage</li>

<li> Extend the term of the loan </li>

<li> Forgive a portion of your principal

 balance</li></ol>

<p>Regardless of which way the Bank considers, 

they typically will modify a loan by doing a 

“capitalization”. Capitalization occurs when 

items owed on a loan (e.g. past due interest, 

taxes, late charges, legal costs, etc.) are

added to the unpaid principal balance of 

the loan and are treated as part of a new 

principal balance. In adding them to the 

unpaid principal balance, the Bank will 

cause the overall amount that is owed to the 

Bank on that loan to increase. The upside

to a capitalization is that because all current

outstanding charges have been rolled into 

the unpaid principal balance, the Borrower

is now seen as current on their mortgage

payments. By doing a capitalization, the

homeowner does not have to make up all 

missed payments at one time. 
</p>

<p>Any agreement you reach should clearly state 

how much you owe, what your interest rate 

will be going forward, what each charge is 

for, what your monthly payment will be, how 

long you will be making that payment, and 

what will happen if either side violates the 

agreement. Ask for a written explanation of 

any and all charges that are part of this loan 

modifi cation, and ask that attorney’s fees and 

late fees be reduced or waived.
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					<a href="#panel3"><h2>Additional Resources</h2></a>
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					<a href="SettlementConference.html" class="button">Settlement Conference</a>
					<a href="Forms.html" class="button">Forms Guide</a>
					
					<a href="terms.html" class="button">Glossary</a>
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              <li ><a href="preparing-for-settlement-steps1-2.html">Settlement Steps 1-2</a></li>
              <li ><a href="preparing-for-settlement-step3.html">Settlement Step 3</a></li>
               <li class="current"> <a href="preparing-for-settlement-step4-5.html">Settlement Steps 4-5</a></li>
               <li ><a href="Stage7.html">7 & 8</a></li>
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              <li ><a href="SettlementConference.html">Settlement Conference</a></li>
              <li ><a href="preparing-for-settlement-steps1-2.html">Steps 1-2</a></li>
               <li > <a href="preparing-for-settlement-step3.html">Step 3</a></li>
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