How to Speed Up the Loan Modification Process ?
Author: Loan Modification Attorney
Foreclosure is always a race against time. Although a home loan modification can slow the process, you have fewer options the longer you wait. Not all lenders have the staff or experience to handle mortgage loan modifications. Even with a capable attorney, the process can drag on for months. But you don’t have to sit and wait. There are some things you can do to speed up the process. Once your home loan modification is under way, these steps can help you get more positive results. 1. Put everything on paper. It’s not uncommon for lenders, especially smaller ones, to lose track of your application. To prevent delays, make sure all your efforts are documented and kept on file. This includes all the calls you make and receive, both from your lender and loan modification attorney. Keep receipts of all your transactions, and make copies so you don’t have to let go of the originals. 2. Do your own financial statements. Part of every home loan modification is a financial worksheet, which will be your main basis for qualification. Most lenders have their own forms, but it won’t hurt to make your own as well. If your lender insists on using their worksheet, at least you’ll have all the information ready. 3. Be as detailed as possible. Too much information is better than too little, and it limits the chances that they’ll call you for more information. A typical worksheet for a mortgage loan modification will include the following: -Your contact information (address, home phone and work phone, fax and email) -Information about your property, including the estimated value -Your current income -Any additional income, such as welfare, child support, etc. -Your estimated total value, including other assets such as real estate, investments, savings and checking accounts, IRAs, 401(k), stocks and bonds -Liabilities, such as existing loans, monthly bills, medical expenses, and tax liens 4. Keep all your bills. The financial worksheet will require you to dig up old bills and hold on to the ones that keep coming. This will help you keep the information as accurate as possible. You may also need to present these bills (or copies of them) along with your hardship letter, which explains why you need a mortgage loan modification. Even if they don’t ask for it, it’s best to include them anyway. That way, there’s no reason for your lender to doubt your statement. The more proof you have, the better your chances of getting that home loan modification. Be sure to submit as much truthful and verifiable information to your loan modification attorney so they are able to compile the best case to submit you your lender.
Article Source: http://www.articlesbase.com/real-estate-articles/how-to-speed-up-the-loan-modification-process--724387.html
About the AuthorLoan modification Department helps you legally change the terms of your mortgage so that you can pay it off better. But you can't expect lenders to make it easy. In fact, many homeowners fail to reach a reasonable settlement with their lenders, and even those who do have to settle for less-than-satisfactory setups. That's where your loan modification attorney comes in.
Wednesday, September 1, 2010
The Top 10 Questions About Loan Modification
f you are one of the tens of thousands of Americans who are facing hard times financially and are not able to pay the mortgage on your home any more, the loan-modification plan may just be the thing you are looking for. Lenders are showing greater flexibility in altering the terms of the mortgage payments and believe it or not they would rather have you keep your home and receive monthly payments than confiscate it under foreclosure at a time when the real estate market is facing an all time low.
There are many questions that may be going through your mind regarding loan modification. This article will try to answer the most common questions home owners have regarding the plan.
1. What is a Loan Modification: Loan modification is the reinstatement of a loan by the lending agency by changing the terms and conditions of a loan making it possible for the home owner to make regular monthly payments on his mortgage.
2. To hire or not hire a loan modification expert: This is up to you. If you feel you can take the stress and anxiety of an approaching foreclosure and you have the time to prepare all the necessary documents needed to apply for a loan-modification, sure, go right ahead. But if not, then you surely need an expert in the area to help you when filing for one. Remember that you only get one chance to apply for a loan modification so you can't afford to make any mistakes. Agents or lawyers can be quite pricey but there are some real estate brokers who are offering the service free of cost.
3. Does a loan modification help in avoiding a foreclosure: Of course! A loan-modification is your best shot at avoiding a foreclosure on your home. The bank or your mortgage lender looks at your circumstances and decides whether you deserve a second chance or not. The Obama government is now offering renumeration to lenders who grant loan-modification. This coupled with the fact that it's more profitable for lenders to let you keep your house then to foreclose it, has increased the chances of home owners getting approved for a loan modification and saving their homes from foreclosure.
4. Am I eligible for a modification on my loan if I am not behind on my payments: Getting approved for a loan-modification if you are not delinquent is possible but the success ratio is not very encouraging.
5. How can the newly introduced government plans aid me in acquiring a loan modification: As mentioned above, the government has assigned a massive $75 billion to back lending companies that provide a loan-modification to their customers. This incentive has made banks and mortgage companies more receptive to the idea of loan workouts.
6. Does the lender have the right to add late charges to the loan-modification: As per the rules of HUD, the accumulated late charges have to be relinquished by the lender when considering a loan work out for a client. This, however, varies based on the kind of loan that is under consideration.
7. What is the criteria that qualifies me for a loan modification: A loan work out is usually awarded on the basis of hardships faced by the home owner like losing a job or the death of a spouse, an alteration in the loan terms, and/or the capacity for paying the mortgage by a client.
8. What sort of a hardship situation is guaranteed to get me a loan modification: The one hardship most people are facing these days is loss or relocation of jobs. And this is one of the most acceptable bases for allocating a modified loan.
9. Is it possible that missed payments be added to the new loan modification: The answer is 'yes'. It is very possible that your past arrears are added to your new loan and are spaced out in a manner in which the loan is made current.
10. How does modifying my loan effect my credit history: A loan modification is great for your credit report as the lender reports your current payments as on time as opposed to past due hence raising your credit score.
These are the top 10 most asked questions regarding loan modification. Just remember, an expert and qualified modification agent can make the difference between nailing it or losing it so tread with care.
http://cploanmodification.org
There are many questions that may be going through your mind regarding loan modification. This article will try to answer the most common questions home owners have regarding the plan.
1. What is a Loan Modification: Loan modification is the reinstatement of a loan by the lending agency by changing the terms and conditions of a loan making it possible for the home owner to make regular monthly payments on his mortgage.
2. To hire or not hire a loan modification expert: This is up to you. If you feel you can take the stress and anxiety of an approaching foreclosure and you have the time to prepare all the necessary documents needed to apply for a loan-modification, sure, go right ahead. But if not, then you surely need an expert in the area to help you when filing for one. Remember that you only get one chance to apply for a loan modification so you can't afford to make any mistakes. Agents or lawyers can be quite pricey but there are some real estate brokers who are offering the service free of cost.
3. Does a loan modification help in avoiding a foreclosure: Of course! A loan-modification is your best shot at avoiding a foreclosure on your home. The bank or your mortgage lender looks at your circumstances and decides whether you deserve a second chance or not. The Obama government is now offering renumeration to lenders who grant loan-modification. This coupled with the fact that it's more profitable for lenders to let you keep your house then to foreclose it, has increased the chances of home owners getting approved for a loan modification and saving their homes from foreclosure.
4. Am I eligible for a modification on my loan if I am not behind on my payments: Getting approved for a loan-modification if you are not delinquent is possible but the success ratio is not very encouraging.
5. How can the newly introduced government plans aid me in acquiring a loan modification: As mentioned above, the government has assigned a massive $75 billion to back lending companies that provide a loan-modification to their customers. This incentive has made banks and mortgage companies more receptive to the idea of loan workouts.
6. Does the lender have the right to add late charges to the loan-modification: As per the rules of HUD, the accumulated late charges have to be relinquished by the lender when considering a loan work out for a client. This, however, varies based on the kind of loan that is under consideration.
7. What is the criteria that qualifies me for a loan modification: A loan work out is usually awarded on the basis of hardships faced by the home owner like losing a job or the death of a spouse, an alteration in the loan terms, and/or the capacity for paying the mortgage by a client.
8. What sort of a hardship situation is guaranteed to get me a loan modification: The one hardship most people are facing these days is loss or relocation of jobs. And this is one of the most acceptable bases for allocating a modified loan.
9. Is it possible that missed payments be added to the new loan modification: The answer is 'yes'. It is very possible that your past arrears are added to your new loan and are spaced out in a manner in which the loan is made current.
10. How does modifying my loan effect my credit history: A loan modification is great for your credit report as the lender reports your current payments as on time as opposed to past due hence raising your credit score.
These are the top 10 most asked questions regarding loan modification. Just remember, an expert and qualified modification agent can make the difference between nailing it or losing it so tread with care.
http://cploanmodification.org
Loan Modification Help Center – Understanding the Foreclosure Process
Loan Modification Help Center – Understanding the Foreclosure Process
Author: Loan Modification Help Center
Very often, when someone contacts a loan modification attorney they really do not understand how the foreclosure process works or how to stop it. People who do not understand foreclosure proceedings are often scared, timid and unwilling to do what it takes to stay in their homes. Many think that if they just ignore their lenders, they will go away. However, inaction is not any way to respond to a potential foreclosure. The only way to mount a successful defense to foreclosure proceedings is to know how the process works, and talk to the loan modification attorneys who know how to stop it.Foreclosure ProcessThe first step in the foreclosure process begins when a lender files a “Notice of Default” with the county recorder. This often proceeds a period of non-payment by the borrower, meaning the homeowner is defaulting on the loan by not making payments. This notice is mailed to the borrower and any other affected parties. This is in no way the end of the process; in fact, up to five business days before the trustee’s sale, the borrower can pay off the default amount plus any addition fees and/or fines and stop the foreclosure process. Obviously, very few people can simply cough up the thousands or tens of thousands of dollars it would take to pay this amount.The second step comes ninety days after the Notice of Default is recorded. A “Notice of Sale” must be posted on the property and in one local public location, such as a library or town hall. The Notice of Sale is also published once a week for three weeks in a newspaper of some sort in the area. The Notice of Sale must clearly state the date, time and location of the sale, as well as the property address, the trustee’s contact information and any other pertinent information.Step three usually occurs about four months after the foreclosure process began. The Trustee Sale Auction is held as a public auction at the time and place designated by the Notice of Sale. It is conducted by the lender’s representative, almost always an attorney, and the successful bidder must pay immediately with cash or a cashier’s check. The lender often bids in the amount of the balance due plus costs. If no one else bids (which is usually the case these days), the property reverts to the lender.Contrary to popular belief, the lender or bank you got your mortgage from does not want your house back. The entire foreclosure process costs the lender far more than it is worth. The lender is not only losing money on the four months you aren’t paying your mortgage, but will most likely lose money paid to the attorney who runs the auction. A mortgage loan modification attorney can help you avoid foreclosure and stay in your home. Both you and your lender are interested in you keeping your home, and a loan modification attorney can help you avoid the headache, heartache and embarrassment of a foreclosure.
Article Source: http://www.articlesbase.com/loans-articles/loan-modification-help-center-understanding-the-foreclosure-process-1107189.html
About the AuthorLoan Modification Help Center is a free gathering place for resources and information on the rapidly evolving field of loan modifications. The internet is over flowing with information on this subject with the problem being that there can be as much bad information and advice as good. For a homeowner struggling with mortgage payments and facing the possibility of foreclosure, the importance of getting straightforward information with no agenda or ulterior motive is of utmost importance. The resources we make available at Loan Modification Help Center are just what homeowners need as they seek to understand their options and get the information they need to make the critical decisions involved in a loan modification. For more information visit http://loanmodificationhelpcenter.org.
Author: Loan Modification Help Center
Very often, when someone contacts a loan modification attorney they really do not understand how the foreclosure process works or how to stop it. People who do not understand foreclosure proceedings are often scared, timid and unwilling to do what it takes to stay in their homes. Many think that if they just ignore their lenders, they will go away. However, inaction is not any way to respond to a potential foreclosure. The only way to mount a successful defense to foreclosure proceedings is to know how the process works, and talk to the loan modification attorneys who know how to stop it.Foreclosure ProcessThe first step in the foreclosure process begins when a lender files a “Notice of Default” with the county recorder. This often proceeds a period of non-payment by the borrower, meaning the homeowner is defaulting on the loan by not making payments. This notice is mailed to the borrower and any other affected parties. This is in no way the end of the process; in fact, up to five business days before the trustee’s sale, the borrower can pay off the default amount plus any addition fees and/or fines and stop the foreclosure process. Obviously, very few people can simply cough up the thousands or tens of thousands of dollars it would take to pay this amount.The second step comes ninety days after the Notice of Default is recorded. A “Notice of Sale” must be posted on the property and in one local public location, such as a library or town hall. The Notice of Sale is also published once a week for three weeks in a newspaper of some sort in the area. The Notice of Sale must clearly state the date, time and location of the sale, as well as the property address, the trustee’s contact information and any other pertinent information.Step three usually occurs about four months after the foreclosure process began. The Trustee Sale Auction is held as a public auction at the time and place designated by the Notice of Sale. It is conducted by the lender’s representative, almost always an attorney, and the successful bidder must pay immediately with cash or a cashier’s check. The lender often bids in the amount of the balance due plus costs. If no one else bids (which is usually the case these days), the property reverts to the lender.Contrary to popular belief, the lender or bank you got your mortgage from does not want your house back. The entire foreclosure process costs the lender far more than it is worth. The lender is not only losing money on the four months you aren’t paying your mortgage, but will most likely lose money paid to the attorney who runs the auction. A mortgage loan modification attorney can help you avoid foreclosure and stay in your home. Both you and your lender are interested in you keeping your home, and a loan modification attorney can help you avoid the headache, heartache and embarrassment of a foreclosure.
Article Source: http://www.articlesbase.com/loans-articles/loan-modification-help-center-understanding-the-foreclosure-process-1107189.html
About the AuthorLoan Modification Help Center is a free gathering place for resources and information on the rapidly evolving field of loan modifications. The internet is over flowing with information on this subject with the problem being that there can be as much bad information and advice as good. For a homeowner struggling with mortgage payments and facing the possibility of foreclosure, the importance of getting straightforward information with no agenda or ulterior motive is of utmost importance. The resources we make available at Loan Modification Help Center are just what homeowners need as they seek to understand their options and get the information they need to make the critical decisions involved in a loan modification. For more information visit http://loanmodificationhelpcenter.org.
Who Does Loan Modification?
Who Does Loan Modification?
The following is meant to give those seeking foreclosure help a brief overview of the different types of mitigation companies that are out there on the web. As stated-do your own due diligence. There are plenty of reputable companies out there that would like to help. Avoid those that are only seeking to help themselves (to your money).
SOME EXAMPLES OF WHO DOES LOAN MODIFICATION
1. LAWYERS
- Dealing with lawyers can be time consuming and very costly. Generally, lawyers who do loan modifications also have many other legal responsibilities or cases to deal with. Most lawyers do not "specialize" in loan modification. Often times the financial responsibility to the loan modification client is calculated through generally accepted billing practices for legal representation. This can mean charges of hundreds of dollars per hour for consultation and representation. Loan modification through a lawyer can cost many thousands of dollars.
Problems:
- Cost - Lawyers typically bill hundreds of dollars per hour for consultation, research and work.
- Experience - Lawyers generally do not "specialize" in loan modification.
- Time - Because lawyers are generally handling many diverse "cases" at the same time the modification client can fall down the ranks of importance in the lawyers case file.
2. CALL CENTERS
- Call center mitigation "companies" employ dozens and sometimes hundreds of sales people who do nothing but "sell" the modification service. Once a modification client has been "acquired" the clients information is then passed along to another company for banking representation.
Problems:
- Responsibility - The "salesperson" who sells the client has no further responsibility to the client. He/She is on to the next "sale." At this point the client does not have a true point of contact for the modification service he or she has purchased.
- Confidentiality - Since the clients information is in "limbo" as it is passed on or sold to a modification "company", there is a much greater likelihood of the client's personal information being compromised.
- Time - Call center sales can quickly overwhelm the staff of a modification/negotiation company. The service can be sold much faster then it can be completed. Most call center customer find themselves at the bottom of very large stacks of files on a modification company's desk.
3. INDIVIDUALS OR FACADES
- There are hundreds of modification "companies" out there on the internet which are nothing more than unqualified individuals with a website. There is nothing wrong with private enterprise but an amazing number of these "companies" represent themselves as something they are not. Oftentimes a slick website is nothing more then a cover or facade for an unqualified huckster with a computer, sitting in someone's basement. This is not who you want representing and negotiating on behalf of your most valuable asset.
Problems:
- Expertise - The individual doing loan modifications from home generally does not have the background or expertise to efficiently and effectively secure a loan modification for the client.
- Availability - There is little to no oversight for the home based modification business. Availability of your "representative" can be based on the whims or weather of any given moment.
- Stability - Home based modification businesses are far more likely to close down and/or disappear leaving the homeowner with little or no recourse.
- Security - Individuals practicing loan modification as an "experiment" in business rarely have sufficient security software and hardware in place to protect their clients information.
4. BROKER
- Many websites out there representing themselves as Loan Modification companies are nothing more than brokers. These sites are very difficult to distinguish from an actual modification company. These sites have the look and feel of a real modification company but are actually information gathering companies. The owners of these sites gather your information and sell it to a modification "company." These broker sites may also compile your information into a list to sell to as many other companies or organizations as they can.
Problems:
- Effectiveness - Brokers generally do not do modifications. They simply sell your information to a company unknown to you.
- Integrity - Brokers do not care if your modification is done or not. They do not care because it does not matter to them. They earned their money when they gathered your information and sold it. A broker wants nothing more to do with you other then to continue to sell your information.
- Control - The homeowner has no choice regarding to whom or how often his information is sold.
5. YOURSELF
- You can do your own modification. You can do your own taxes. You can build your own house. You can represent yourself in a court of law. Because you can does not mean you should. Loan modification can be an emotional, lengthy and time consuming process involving complicated paperwork and skillful negotiation. This is not the time for "on the job training." Those facing the specter of foreclosure understand that time is of the essence.
Problems:
- Effectiveness - Banks have stringent paperwork requirements regarding loan modification. Paperwork filled out incorrectly or incompletely is relegated to the bottom of the stack. The stack can be hundreds of files deep.
- Time - A file moved to the bottom of the stack can remain there for months as the banks decision maker spends his time with properly filled out files.
- Emotion - Facing foreclosure can be an emotional task. Those prone to frustration in dealing with the bureaucracy inherent in institutions like banks or government should not handle doing their own loan modifications.
- Competence - The average homeowner is not a professional negotiator. Those facing foreclosure should realize they need professional help. A qualified loan modification company already has a relationship with the bank you are dealing with. The qualified loan modification company has previously handled situations similar to yours with your bank. They know the ropes and know the limits.
6. LEGITIMATE LOAN MODIFICATION COMPANIES
- A real loan modification company is a service company comprised of dedicated professionals, competent support staff, state of the art hardware, and software appropriate for protecting the clients information. A legitimate loan modification company honestly and professionally endeavors to help homeowners with their modifications. A real loan modification company has consistent business hours and operates out of a brick and mortar office. The negotiation staff of a legitimate modification company has previously established relationships with the decision makers at the lending institutions.
Advantages:
- Competence - Professional mortgage mitigation companies have a dedicated staff that has completed the entire process many times. They know the ins and outs of the mitigation process.
- Security - A professional mitigation company protects the clients information with dedicated security systems.
- Ethics - Real mitigation companies do not farm out their contracts. They handle the lender negotiations "in house" and do not sell their clients information.
- Time - An experienced and professional staff that "knows the ropes" can save considerable time and heartache for the homeowner.
- Availability - Because a true mitigation corporation has a real office with professional staff and oversight, the availability of your consultant is consistent with the corporation's hours of operation.
Posted By: Tyler J. StanfordThe following is meant to give those seeking foreclosure help a brief overview of the different types of mitigation companies that are out there on the web. As stated-do your own due diligence. There are plenty of reputable companies out there that would like to help. Avoid those that are only seeking to help themselves (to your money).
SOME EXAMPLES OF WHO DOES LOAN MODIFICATION
1. LAWYERS
- Dealing with lawyers can be time consuming and very costly. Generally, lawyers who do loan modifications also have many other legal responsibilities or cases to deal with. Most lawyers do not "specialize" in loan modification. Often times the financial responsibility to the loan modification client is calculated through generally accepted billing practices for legal representation. This can mean charges of hundreds of dollars per hour for consultation and representation. Loan modification through a lawyer can cost many thousands of dollars.
Problems:
- Cost - Lawyers typically bill hundreds of dollars per hour for consultation, research and work.
- Experience - Lawyers generally do not "specialize" in loan modification.
- Time - Because lawyers are generally handling many diverse "cases" at the same time the modification client can fall down the ranks of importance in the lawyers case file.
2. CALL CENTERS
- Call center mitigation "companies" employ dozens and sometimes hundreds of sales people who do nothing but "sell" the modification service. Once a modification client has been "acquired" the clients information is then passed along to another company for banking representation.
Problems:
- Responsibility - The "salesperson" who sells the client has no further responsibility to the client. He/She is on to the next "sale." At this point the client does not have a true point of contact for the modification service he or she has purchased.
- Confidentiality - Since the clients information is in "limbo" as it is passed on or sold to a modification "company", there is a much greater likelihood of the client's personal information being compromised.
- Time - Call center sales can quickly overwhelm the staff of a modification/negotiation company. The service can be sold much faster then it can be completed. Most call center customer find themselves at the bottom of very large stacks of files on a modification company's desk.
3. INDIVIDUALS OR FACADES
- There are hundreds of modification "companies" out there on the internet which are nothing more than unqualified individuals with a website. There is nothing wrong with private enterprise but an amazing number of these "companies" represent themselves as something they are not. Oftentimes a slick website is nothing more then a cover or facade for an unqualified huckster with a computer, sitting in someone's basement. This is not who you want representing and negotiating on behalf of your most valuable asset.
Problems:
- Expertise - The individual doing loan modifications from home generally does not have the background or expertise to efficiently and effectively secure a loan modification for the client.
- Availability - There is little to no oversight for the home based modification business. Availability of your "representative" can be based on the whims or weather of any given moment.
- Stability - Home based modification businesses are far more likely to close down and/or disappear leaving the homeowner with little or no recourse.
- Security - Individuals practicing loan modification as an "experiment" in business rarely have sufficient security software and hardware in place to protect their clients information.
4. BROKER
- Many websites out there representing themselves as Loan Modification companies are nothing more than brokers. These sites are very difficult to distinguish from an actual modification company. These sites have the look and feel of a real modification company but are actually information gathering companies. The owners of these sites gather your information and sell it to a modification "company." These broker sites may also compile your information into a list to sell to as many other companies or organizations as they can.
Problems:
- Effectiveness - Brokers generally do not do modifications. They simply sell your information to a company unknown to you.
- Integrity - Brokers do not care if your modification is done or not. They do not care because it does not matter to them. They earned their money when they gathered your information and sold it. A broker wants nothing more to do with you other then to continue to sell your information.
- Control - The homeowner has no choice regarding to whom or how often his information is sold.
5. YOURSELF
- You can do your own modification. You can do your own taxes. You can build your own house. You can represent yourself in a court of law. Because you can does not mean you should. Loan modification can be an emotional, lengthy and time consuming process involving complicated paperwork and skillful negotiation. This is not the time for "on the job training." Those facing the specter of foreclosure understand that time is of the essence.
Problems:
- Effectiveness - Banks have stringent paperwork requirements regarding loan modification. Paperwork filled out incorrectly or incompletely is relegated to the bottom of the stack. The stack can be hundreds of files deep.
- Time - A file moved to the bottom of the stack can remain there for months as the banks decision maker spends his time with properly filled out files.
- Emotion - Facing foreclosure can be an emotional task. Those prone to frustration in dealing with the bureaucracy inherent in institutions like banks or government should not handle doing their own loan modifications.
- Competence - The average homeowner is not a professional negotiator. Those facing foreclosure should realize they need professional help. A qualified loan modification company already has a relationship with the bank you are dealing with. The qualified loan modification company has previously handled situations similar to yours with your bank. They know the ropes and know the limits.
6. LEGITIMATE LOAN MODIFICATION COMPANIES
- A real loan modification company is a service company comprised of dedicated professionals, competent support staff, state of the art hardware, and software appropriate for protecting the clients information. A legitimate loan modification company honestly and professionally endeavors to help homeowners with their modifications. A real loan modification company has consistent business hours and operates out of a brick and mortar office. The negotiation staff of a legitimate modification company has previously established relationships with the decision makers at the lending institutions.
Advantages:
- Competence - Professional mortgage mitigation companies have a dedicated staff that has completed the entire process many times. They know the ins and outs of the mitigation process.
- Security - A professional mitigation company protects the clients information with dedicated security systems.
- Ethics - Real mitigation companies do not farm out their contracts. They handle the lender negotiations "in house" and do not sell their clients information.
- Time - An experienced and professional staff that "knows the ropes" can save considerable time and heartache for the homeowner.
- Availability - Because a true mitigation corporation has a real office with professional staff and oversight, the availability of your consultant is consistent with the corporation's hours of operation.
Sponsored By: Principal Mitigation Corp
Free Loan Modification
he home loan lenders who created the biggest consumer rip-off of all time are now running scared because homeowners have the option of getting a profession expert loan modification company to represent them to get a better modification result then the homeowner could get by themself.
The lenders are seeding the news media, who they pay millions of advertising dollars to, with an offer to do free loan modification. They are also spinning 'consumer' slanted news articles touting the perils of hiring an expert loan modification company to help the homeowner.
It goes something like this:
"Rescue rip-offs"
"If you are having trouble making your 'overpriced' mortgage payment, you might be contacted by people who want to help you. But it could be a scam." Then they send the homeowner a 'bait letter' pitching that the homeowner MIGHT qualify for super low rates, but they have to come into the lender ALONE (no representation). Then when the homeowner gives up ALL of their income/expense/hardship info, the lender takes full advantage to write the loan mod in the lenders total favor. The homeowner could have had a much better, EXPERT NEGOTIATED loan mod, but was scared away from getting expert help.
The public relations departments of these giant lenders spin the fear of 'scam' to the homeowner. These are the same people who scammed America with bogus overpriced home appraisals, huge fat loans and low tickler rates, to seduce the homeowner into thinking they won the LOTTO, except they put them in a loan they could not afford. The lenders are also known as Bankster's!
Now, they want to 'scare' the homeowner and loan modification companies from coming together to 'cram down' (reduce) the loan which will take money (they think) away from the lender.
But, if the homeowner can't make a house payment, there is no money for the lender, duh! Mr. Lender how about 50% of something vs 100% of nothing. But, the lender doesn't want to believe it. They think that like 'magic' the homeowner is going to find some new money. They even have convinced the local and state gov's of this illusion, that they will lose tax revenue if 'cram downs' are given. The homeowner has spoken, folks. Twelve million homeowners have stopped making their house payment!
Continuing,
"steer clear of anyone who:"
1. "Guarantees to stop foreclosure."
No one can guarantee this as the lender has the last call. Only an attorney loan modification company can put the kind of pressure on the lender to get the homeowner good results. Any top notch attorney loan mod company should be showing you what results they are getting with the lender at this time.
2. "Collects upfront fees."
This is a great public relations ploy to keep modification companies from staying in business. This is exactly the lenders tactics. Come on, any business needs to have at least a down payment and payment plan from their clients to survive.
When you bought your house the lender made you put a 'down payment' on your house, then took all their fees (i.E. $20,000+) before you got to move into your house, didn't they?
The lender wants the modification company to do work without a down payment from a homeowner with bad credit. Do you think the lender would do work like this? We know they wouldn't.
A modification fee of $3,000 is small when a professional loan modification company can save you i.e. $200,000 on the life of your loan, and/or cut your house payment in half.
Remember, the lender charged you 1%-3% (points) on your loan and the realtor took 6% of the sale price; but they say that was ok!
Hiring a loan modification company is like hiring a 'CPA' to do your taxes to get you the best results. Find the best attorney loan modification company that has the expert experience with your lender to get the best results for your family. How logical is that?
3-"asks to be paid by wire or cashiers check."
No wire payment but, a cashiers check for a 1/3 or 1/2 down payment to start the job is possible. Your should be dealing only with a attorney loan modification company with a verifiable business address. Attorney loan mod companies usually give a free initial review of your case and then upon accepting your case will collect a retainer. Attorney mod companies DO NOT HAVE TO BE REGISTERED WITH THE DEPT. of REAL ESTATE. They are policed by the state bar. When considering a attorney mod company always ask for and check their state bar number.
4-"instructs you not to contact your lender."
Another scare tactic. This is to get the homeowner to give up to the lender, important modification negotiation information for the lenders advantage.
Once you enter into a loan modification agreement with an modification company, your lender should contact you to affirm this within 20 days. You should only tell the lender that you have retained the loan mod company and give the lender the company name, address and phone number. The lender should then handle the modification with your loan mod company.
Almost all lenders will contact a homeowner who has retained an attorney loan modification company, to extract info from the homeowner to use against the homeowner in the modification. The lender is only thinking about helping themselves.
***In America, it is the homeowner's right to hire anyone they choose to help them.***
The lender does not want the homeowner to have any advantage in a loan modification.
A good loan mod company works with these lenders every day and knows what it takes to get the results and will get a better result than the homeowner could get.
For loan modification, a homeowner should hire the best lawyer based loan modification company they can find.
The company should have:
1- A verifiable business address. A walk-in office.
2- Good past results history
3- Past customer contacts & testimonials
4- Good results with your particular lender
5- A work contract and refund policy
6- Realistic projections
7- Predatory loan analysis
Any good attorney loan mod company will 1st- carefully check and review your case and then 2-decide if they want to take you on as a successful client because they know through experience what lenders are good to do loan mods and what lenders fight loan mods. A good attorney loan mod company is not going to take on a dead deal. He wants to get the best results for you as quickly as possible.
I paid, a few years ago, a workers comp attorney 20% of my settlement because he was an expert in this work. I could have tried to negotiate with the insurance company myself BUT why take the chance. I wanted and got the best results with this attorney.
Now understand the loan modification world is not easy. Trying to 'cram down' your mortgage, is like taking a bone away from your neighbor's dog on a very HOT day! The lenders are fighting this all the way. State and local gov's are fighting it because it means lower tax collections (payroll, property, income, sales).
*You need to be represented by an attorney loan modification company that can put pressure on your lender and get you the best possible results. A huge number of loans (60% est.) were predatory on the consumer. If your loan is one of them and your loan mod company can prove it, then your lender will get real cooperative with your modification company real quick as the loan can be deemed invalid! You might even be entitled to damage compensation from the lender.
The lenders are dragging their feet on modification as much as possible. They are trying to get as much cash out of the homeowner as possible and keep the interest as high as possible in the loan. This why they do not want a homeowner to get representation. They want to take advantage of the homeowner as much as possible.
The lender does not care about the homeowner and making the national economic situation better. The lender is greedy and cold-blooded!
Case examples;
I have had a homeowner, 'BLIND' on SSI dis., go to his lender 1st for help, only to be told he doesn't qualify for a hardship.
I have had senior's who's fixed income is $1,600 with a house payment of $1,500, go to their lender for help only to be told they don't qualify.
Check around, the lenders are not trying to help the homeowner, at all.
***Watch the ABC Nightline Investigation special 1/21/09 with Congresswoman Maxine Waters attempting to get a loan modification from 3 different lenders. She gets rejected the whole time.
***Watch it at: YouTube.com Then enter search of: 'nightline maxine'
Now, these client's loan payments didn't start off this high. The lender put them into a low ARM, that the expert lender knew was going to adjust up, but just sold the homeowner into the illusion to not worry about the payment increase because they could refi forever as their home value would just keep increasing.
The lenders got this to work for while by squeezing (fraud) the appraisers for higher and higher appraisals to get fatter and fatter loans to sell to more and more sucker investors around the world, until...the loans readjusted to an impossible payment for the homeowner to make.
*It was a total illusion for the expert lender and everyone else, to think all of these homeowner's income would increase to cover the new double-triple house payment.
The expert lenders knew this was bad to begin with, that is why they sold these worthless loans. They were blind with 'greed.'
The lenders created the biggest real estate scam of all time, took billion$ of commissions and now are so arrogant that they are asking the federal gov't for help because they are a victim.
The lenders played on America's POV that the 'LOTTO' was the answer to their prayers and the lenders gave the American homeowner a 'LOTTO' win with a never ending fake home equity increase.
The homeowner was led to believe by the expert lender (with fraud appraisals) that he could always refinance and get more cash (LOTTO win) because home values would rise higher and higher, forever! What a banker scam! Everybody was getting their commission on this game of musical chairs; bankers, finance, gov, media ad $!
Now, the music has stopped and the bankers, finance,gov, media ad$, don't have a chair!
What do we do? Answer? Loan modification.
The lenders are seeding the news media, who they pay millions of advertising dollars to, with an offer to do free loan modification. They are also spinning 'consumer' slanted news articles touting the perils of hiring an expert loan modification company to help the homeowner.
It goes something like this:
"Rescue rip-offs"
"If you are having trouble making your 'overpriced' mortgage payment, you might be contacted by people who want to help you. But it could be a scam." Then they send the homeowner a 'bait letter' pitching that the homeowner MIGHT qualify for super low rates, but they have to come into the lender ALONE (no representation). Then when the homeowner gives up ALL of their income/expense/hardship info, the lender takes full advantage to write the loan mod in the lenders total favor. The homeowner could have had a much better, EXPERT NEGOTIATED loan mod, but was scared away from getting expert help.
The public relations departments of these giant lenders spin the fear of 'scam' to the homeowner. These are the same people who scammed America with bogus overpriced home appraisals, huge fat loans and low tickler rates, to seduce the homeowner into thinking they won the LOTTO, except they put them in a loan they could not afford. The lenders are also known as Bankster's!
Now, they want to 'scare' the homeowner and loan modification companies from coming together to 'cram down' (reduce) the loan which will take money (they think) away from the lender.
But, if the homeowner can't make a house payment, there is no money for the lender, duh! Mr. Lender how about 50% of something vs 100% of nothing. But, the lender doesn't want to believe it. They think that like 'magic' the homeowner is going to find some new money. They even have convinced the local and state gov's of this illusion, that they will lose tax revenue if 'cram downs' are given. The homeowner has spoken, folks. Twelve million homeowners have stopped making their house payment!
Continuing,
"steer clear of anyone who:"
1. "Guarantees to stop foreclosure."
No one can guarantee this as the lender has the last call. Only an attorney loan modification company can put the kind of pressure on the lender to get the homeowner good results. Any top notch attorney loan mod company should be showing you what results they are getting with the lender at this time.
2. "Collects upfront fees."
This is a great public relations ploy to keep modification companies from staying in business. This is exactly the lenders tactics. Come on, any business needs to have at least a down payment and payment plan from their clients to survive.
When you bought your house the lender made you put a 'down payment' on your house, then took all their fees (i.E. $20,000+) before you got to move into your house, didn't they?
The lender wants the modification company to do work without a down payment from a homeowner with bad credit. Do you think the lender would do work like this? We know they wouldn't.
A modification fee of $3,000 is small when a professional loan modification company can save you i.e. $200,000 on the life of your loan, and/or cut your house payment in half.
Remember, the lender charged you 1%-3% (points) on your loan and the realtor took 6% of the sale price; but they say that was ok!
Hiring a loan modification company is like hiring a 'CPA' to do your taxes to get you the best results. Find the best attorney loan modification company that has the expert experience with your lender to get the best results for your family. How logical is that?
3-"asks to be paid by wire or cashiers check."
No wire payment but, a cashiers check for a 1/3 or 1/2 down payment to start the job is possible. Your should be dealing only with a attorney loan modification company with a verifiable business address. Attorney loan mod companies usually give a free initial review of your case and then upon accepting your case will collect a retainer. Attorney mod companies DO NOT HAVE TO BE REGISTERED WITH THE DEPT. of REAL ESTATE. They are policed by the state bar. When considering a attorney mod company always ask for and check their state bar number.
4-"instructs you not to contact your lender."
Another scare tactic. This is to get the homeowner to give up to the lender, important modification negotiation information for the lenders advantage.
Once you enter into a loan modification agreement with an modification company, your lender should contact you to affirm this within 20 days. You should only tell the lender that you have retained the loan mod company and give the lender the company name, address and phone number. The lender should then handle the modification with your loan mod company.
Almost all lenders will contact a homeowner who has retained an attorney loan modification company, to extract info from the homeowner to use against the homeowner in the modification. The lender is only thinking about helping themselves.
***In America, it is the homeowner's right to hire anyone they choose to help them.***
The lender does not want the homeowner to have any advantage in a loan modification.
A good loan mod company works with these lenders every day and knows what it takes to get the results and will get a better result than the homeowner could get.
For loan modification, a homeowner should hire the best lawyer based loan modification company they can find.
The company should have:
1- A verifiable business address. A walk-in office.
2- Good past results history
3- Past customer contacts & testimonials
4- Good results with your particular lender
5- A work contract and refund policy
6- Realistic projections
7- Predatory loan analysis
Any good attorney loan mod company will 1st- carefully check and review your case and then 2-decide if they want to take you on as a successful client because they know through experience what lenders are good to do loan mods and what lenders fight loan mods. A good attorney loan mod company is not going to take on a dead deal. He wants to get the best results for you as quickly as possible.
I paid, a few years ago, a workers comp attorney 20% of my settlement because he was an expert in this work. I could have tried to negotiate with the insurance company myself BUT why take the chance. I wanted and got the best results with this attorney.
Now understand the loan modification world is not easy. Trying to 'cram down' your mortgage, is like taking a bone away from your neighbor's dog on a very HOT day! The lenders are fighting this all the way. State and local gov's are fighting it because it means lower tax collections (payroll, property, income, sales).
*You need to be represented by an attorney loan modification company that can put pressure on your lender and get you the best possible results. A huge number of loans (60% est.) were predatory on the consumer. If your loan is one of them and your loan mod company can prove it, then your lender will get real cooperative with your modification company real quick as the loan can be deemed invalid! You might even be entitled to damage compensation from the lender.
The lenders are dragging their feet on modification as much as possible. They are trying to get as much cash out of the homeowner as possible and keep the interest as high as possible in the loan. This why they do not want a homeowner to get representation. They want to take advantage of the homeowner as much as possible.
The lender does not care about the homeowner and making the national economic situation better. The lender is greedy and cold-blooded!
Case examples;
I have had a homeowner, 'BLIND' on SSI dis., go to his lender 1st for help, only to be told he doesn't qualify for a hardship.
I have had senior's who's fixed income is $1,600 with a house payment of $1,500, go to their lender for help only to be told they don't qualify.
Check around, the lenders are not trying to help the homeowner, at all.
***Watch the ABC Nightline Investigation special 1/21/09 with Congresswoman Maxine Waters attempting to get a loan modification from 3 different lenders. She gets rejected the whole time.
***Watch it at: YouTube.com Then enter search of: 'nightline maxine'
Now, these client's loan payments didn't start off this high. The lender put them into a low ARM, that the expert lender knew was going to adjust up, but just sold the homeowner into the illusion to not worry about the payment increase because they could refi forever as their home value would just keep increasing.
The lenders got this to work for while by squeezing (fraud) the appraisers for higher and higher appraisals to get fatter and fatter loans to sell to more and more sucker investors around the world, until...the loans readjusted to an impossible payment for the homeowner to make.
*It was a total illusion for the expert lender and everyone else, to think all of these homeowner's income would increase to cover the new double-triple house payment.
The expert lenders knew this was bad to begin with, that is why they sold these worthless loans. They were blind with 'greed.'
The lenders created the biggest real estate scam of all time, took billion$ of commissions and now are so arrogant that they are asking the federal gov't for help because they are a victim.
The lenders played on America's POV that the 'LOTTO' was the answer to their prayers and the lenders gave the American homeowner a 'LOTTO' win with a never ending fake home equity increase.
The homeowner was led to believe by the expert lender (with fraud appraisals) that he could always refinance and get more cash (LOTTO win) because home values would rise higher and higher, forever! What a banker scam! Everybody was getting their commission on this game of musical chairs; bankers, finance, gov, media ad $!
Now, the music has stopped and the bankers, finance,gov, media ad$, don't have a chair!
What do we do? Answer? Loan modification.
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