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.
Loan Modification Made Simple
Introduction
Loan Modification is arguably the most effective tool that can be used by homeowners in midst of financial hardship to prevent their homes from entering foreclosure. Loan modification Agreements come in different forms but quite frequently they involve the reduction of mortgage's interest rate for a specified period of time so he/she can continue to make payments and stay in the home. Beware Paying too much for a loan modification is detrimental to your pocketbook. Loan modification is the most cost effective and timely manner to help the millions of defaulting homeowners get back on track. Loan Modification is a HUD approved workout solution becoming more common during this foreclosure crisis. Loan Modification is a procedure in which a loan's terms, like the interest rate, the monthly payment or the term, are changed to meet the current situation of the homeowner. Loan modifications are the best solution for you and your lender.
Loan
Loan Modification Specialists (LMS) will be responsible for initiating the sales cycle by qualifying potential clients and then analyzing and determining their specific needs. Loans currently insured by MGIC may be eligible for an MGIC Loan Modification depending on the details of the transaction.
Lender
Lenders and servicers are very busy with desperate homeowners trying to save their homes from foreclosure. Lenders have financial incentive to actively pursue a home loan modification or short sale. Lenders are not in the business of foreclosing on homes; rather, a mortgage company will analyze the home owner's situation and if it is possible for the borrower to continue making payments (which is composes of both the principal owed against the home and the interest payments to the mortgage company), the lender will find a solution to help the home owner continue making principal and interest payments. Lenders will give you the run around, throw confusing "industry terms" at you, refuse to negotiate, or negotiate terms in their best interest. Lenders want to give as little as possible, distressed to borrowers that don't know how to get the best deal, or what the best possible deal can be. Lenders are starting to prefer LM over a short sale. Lenders "say they're doing all these things, they're trying all these modifications," said John Taylor, chief executive of the National Community Reinvestment Coalition. Lenders look at loan modifications on a case-by-case basis.
Payment
Payment shock after interest rate resets on subprime adjustable mortgages, many made to high-risk borrowers, has propelled owners into foreclosure. Loan modification team helps Americans retain their homeownership by renegotiate their mortgage with affordable monthly payments.
Modifications
Modifications often consist of lowering interest rates, fixing interest rates, preventing ARMs from adjusting, lowering your principal balance and/or lengthening your term. Modifications would be designed to achieve sustainable payments at a 38 percent debt-to-income (DTI) ratio of principal, interest, taxes and insurance. Modifications must be handled by a special group who are more highly trained and better-paid, and the increased cost of expanding their number cuts into the bottom line. Recent state legislation and Congressional initiatives require mortgage lenders to make possible every effort to provide loan modifications to homeowners risking foreclosure. In the past, mortgage note modifications were nearly impossible, but now lender are modifying by the thousands. The new FDIC and Treasury program would provide incentives to lenders and mortgage servicers to offer long term affordable loan modifications.
Borrowers
Borrowers with good credit are now deciding it is better for their own personal situation and balance sheet to walk-away from the hundreds of thousands of dollars in debt they owe on their home and opt to rent instead. Borrowers coast to coast have been benefitting from reduced interest rates that were renegotiated in the note modification. All lenders ask for the same general information from their borrowers which they then review to determine if the homeowner will qualify for a loan modification. Fannie Mae, Freddie Mac and HUD offer loan modifications to loan servicers and borrowers as a tool in the area of default management. A forbearance agreement provides short-term relief for borrowers who have temporary financial problems, while a loan modification agreement is a long-term solution for borrowers who will never be able to repay an existing loan. Although certainly not streamlined or mainstream loan modifications are generally available to all borrowers in trouble.
Short
Short-sale or forbearance are not good options because they have negative tax and credit history consequences associated with them. Short Sales may not always be the answer. If you have incurred a short term financial hardship and your loan is 90 days to 365 days past due, the loss mitigation specialist will also consider submitting a request for a special forbearance.
Conclusion
Loan modifications used to be reserved for borrowers whose mortgages became delinquent because of job losses, divorce proceedings, or illness, but today they are also open to those individuals who are suffering in the aftermath of adjustable rate mortgages skyrocketing and placing the monthly payment beyond the means of the borrower. Loan Modification is the #1 way to Stop or Prevent foreclosure & Stop Foreclosure and Rising Payments. Are you behind on your payments. Are you losing your family's home Is your lender refusing your payment. Are you worried about your credit Loan modification is a term very unfamiliar to homeowners but not for very long. Loan Modification Requirements sounds intimidating to the average homeowner but the process is indeed simpler than you might think. Loan Modification- This term has been getting a lot of attention lately and rightfully so. Loan modifications are less of a loss to lenders than foreclosure. Consult a reputable group to navigate you through the process. Be leery of anyone who wants any money upfront. Make sure you exercise your rights & fight hard to stay in your homes.
Loan Modification is arguably the most effective tool that can be used by homeowners in midst of financial hardship to prevent their homes from entering foreclosure. Loan modification Agreements come in different forms but quite frequently they involve the reduction of mortgage's interest rate for a specified period of time so he/she can continue to make payments and stay in the home. Beware Paying too much for a loan modification is detrimental to your pocketbook. Loan modification is the most cost effective and timely manner to help the millions of defaulting homeowners get back on track. Loan Modification is a HUD approved workout solution becoming more common during this foreclosure crisis. Loan Modification is a procedure in which a loan's terms, like the interest rate, the monthly payment or the term, are changed to meet the current situation of the homeowner. Loan modifications are the best solution for you and your lender.
Loan
Loan Modification Specialists (LMS) will be responsible for initiating the sales cycle by qualifying potential clients and then analyzing and determining their specific needs. Loans currently insured by MGIC may be eligible for an MGIC Loan Modification depending on the details of the transaction.
Lender
Lenders and servicers are very busy with desperate homeowners trying to save their homes from foreclosure. Lenders have financial incentive to actively pursue a home loan modification or short sale. Lenders are not in the business of foreclosing on homes; rather, a mortgage company will analyze the home owner's situation and if it is possible for the borrower to continue making payments (which is composes of both the principal owed against the home and the interest payments to the mortgage company), the lender will find a solution to help the home owner continue making principal and interest payments. Lenders will give you the run around, throw confusing "industry terms" at you, refuse to negotiate, or negotiate terms in their best interest. Lenders want to give as little as possible, distressed to borrowers that don't know how to get the best deal, or what the best possible deal can be. Lenders are starting to prefer LM over a short sale. Lenders "say they're doing all these things, they're trying all these modifications," said John Taylor, chief executive of the National Community Reinvestment Coalition. Lenders look at loan modifications on a case-by-case basis.
Payment
Payment shock after interest rate resets on subprime adjustable mortgages, many made to high-risk borrowers, has propelled owners into foreclosure. Loan modification team helps Americans retain their homeownership by renegotiate their mortgage with affordable monthly payments.
Modifications
Modifications often consist of lowering interest rates, fixing interest rates, preventing ARMs from adjusting, lowering your principal balance and/or lengthening your term. Modifications would be designed to achieve sustainable payments at a 38 percent debt-to-income (DTI) ratio of principal, interest, taxes and insurance. Modifications must be handled by a special group who are more highly trained and better-paid, and the increased cost of expanding their number cuts into the bottom line. Recent state legislation and Congressional initiatives require mortgage lenders to make possible every effort to provide loan modifications to homeowners risking foreclosure. In the past, mortgage note modifications were nearly impossible, but now lender are modifying by the thousands. The new FDIC and Treasury program would provide incentives to lenders and mortgage servicers to offer long term affordable loan modifications.
Borrowers
Borrowers with good credit are now deciding it is better for their own personal situation and balance sheet to walk-away from the hundreds of thousands of dollars in debt they owe on their home and opt to rent instead. Borrowers coast to coast have been benefitting from reduced interest rates that were renegotiated in the note modification. All lenders ask for the same general information from their borrowers which they then review to determine if the homeowner will qualify for a loan modification. Fannie Mae, Freddie Mac and HUD offer loan modifications to loan servicers and borrowers as a tool in the area of default management. A forbearance agreement provides short-term relief for borrowers who have temporary financial problems, while a loan modification agreement is a long-term solution for borrowers who will never be able to repay an existing loan. Although certainly not streamlined or mainstream loan modifications are generally available to all borrowers in trouble.
Short
Short-sale or forbearance are not good options because they have negative tax and credit history consequences associated with them. Short Sales may not always be the answer. If you have incurred a short term financial hardship and your loan is 90 days to 365 days past due, the loss mitigation specialist will also consider submitting a request for a special forbearance.
Conclusion
Loan modifications used to be reserved for borrowers whose mortgages became delinquent because of job losses, divorce proceedings, or illness, but today they are also open to those individuals who are suffering in the aftermath of adjustable rate mortgages skyrocketing and placing the monthly payment beyond the means of the borrower. Loan Modification is the #1 way to Stop or Prevent foreclosure & Stop Foreclosure and Rising Payments. Are you behind on your payments. Are you losing your family's home Is your lender refusing your payment. Are you worried about your credit Loan modification is a term very unfamiliar to homeowners but not for very long. Loan Modification Requirements sounds intimidating to the average homeowner but the process is indeed simpler than you might think. Loan Modification- This term has been getting a lot of attention lately and rightfully so. Loan modifications are less of a loss to lenders than foreclosure. Consult a reputable group to navigate you through the process. Be leery of anyone who wants any money upfront. Make sure you exercise your rights & fight hard to stay in your homes.
Home Loan Modifications and Your Credit Score
Author: Loan Modification Attorney
A Home Loan Modification can help you stop foreclosure and stay in your home. But if you’re like most homeowners, you’re probably wondering how it will affect your credit, and whether in a good or bad way. Unfortunately, there’s no single answer—it all depends on how far behind you are and the kind of mortgage loan modification you’ll be granted. Best-case scenarios Technically, since you’re not borrowing any money, a home loan modification won’t hurt your credit score. If you’re paying less in interest, you have a smaller debt burden. And since most lenders prefer an interest rate reduction, there’s a pretty good chance that a Home loan modification will improve your credit score. The implications are even better if your lender forgives part of the principal, although this is less common. If they write off $50,000 from your loan amount, it will show up on your report as a smaller loan, which can increase your credit score. The lender factor Unfortunately, it doesn’t always happen that way. It also depends on how your lender reports the home loan modification to the credit bureaus. Many of them will consider it paid for less than the original amount owed, which will count against your score. If you’re already in foreclosure, the impact on your credit can be substantial. Of course, compared to a short sale or a foreclosure, a Mortgage Loan Modification is still the best way to maintain your credit standing. Tax implications One of the early problems with Loan modification is that the amount forgiven is usually taxable. That means if your debt is reduced by $50,000, the IRS views it as income and imposes the corresponding tax. This can catch homeowners off guard during tax season, as many of them don’t know the tax implications at the time of the modification. To avoid such incidents, the IRS announced in 2007 that Loan modification would no longer be classified as “prohibited transactions.” This applied to all loans originated from January 2004 to July 2007, the peak of the sub-prime boom, and those due to adjust from January 2009 to July 2012. If your mortgage falls under these categories, you won’t have to file a 1099 declaring the change as taxable. A loan modification is much like going to court: you can save your money and get a court-appointed lawyer, or you can invest in professional representation and get the best mortgage assistance. Your loss mitigation won’t happen overnight, but if with a capable Loan Modification Attorney, you can be sure you’re in good hands.
Article Source: http://www.articlesbase.com/real-estate-articles/home-loan-modifications-and-your-credit-score-733499.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.
A Home Loan Modification can help you stop foreclosure and stay in your home. But if you’re like most homeowners, you’re probably wondering how it will affect your credit, and whether in a good or bad way. Unfortunately, there’s no single answer—it all depends on how far behind you are and the kind of mortgage loan modification you’ll be granted. Best-case scenarios Technically, since you’re not borrowing any money, a home loan modification won’t hurt your credit score. If you’re paying less in interest, you have a smaller debt burden. And since most lenders prefer an interest rate reduction, there’s a pretty good chance that a Home loan modification will improve your credit score. The implications are even better if your lender forgives part of the principal, although this is less common. If they write off $50,000 from your loan amount, it will show up on your report as a smaller loan, which can increase your credit score. The lender factor Unfortunately, it doesn’t always happen that way. It also depends on how your lender reports the home loan modification to the credit bureaus. Many of them will consider it paid for less than the original amount owed, which will count against your score. If you’re already in foreclosure, the impact on your credit can be substantial. Of course, compared to a short sale or a foreclosure, a Mortgage Loan Modification is still the best way to maintain your credit standing. Tax implications One of the early problems with Loan modification is that the amount forgiven is usually taxable. That means if your debt is reduced by $50,000, the IRS views it as income and imposes the corresponding tax. This can catch homeowners off guard during tax season, as many of them don’t know the tax implications at the time of the modification. To avoid such incidents, the IRS announced in 2007 that Loan modification would no longer be classified as “prohibited transactions.” This applied to all loans originated from January 2004 to July 2007, the peak of the sub-prime boom, and those due to adjust from January 2009 to July 2012. If your mortgage falls under these categories, you won’t have to file a 1099 declaring the change as taxable. A loan modification is much like going to court: you can save your money and get a court-appointed lawyer, or you can invest in professional representation and get the best mortgage assistance. Your loss mitigation won’t happen overnight, but if with a capable Loan Modification Attorney, you can be sure you’re in good hands.
Article Source: http://www.articlesbase.com/real-estate-articles/home-loan-modifications-and-your-credit-score-733499.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.
5 Tips Every Loan Modification Firm Talks About
Author: Loan Modification Attorney
Here’s a list of loan modification do’s and don’ts to help you avoid common pitfalls. Do know your rights. More than 80% of mortgage contracts violate one or more lending laws—and most of them go unnoticed. But these violations can be your biggest weapon in the loan modification process. They can give you the leverage you need to negotiate with your lender and stop foreclosure. Your loan modification attorney can help you understand your rights and use them to get the results you want. Don’t wait too long. The foreclosure process is designed so that you have time to get back on your feet and save your home. But that doesn’t mean it’s safe to procrastinate. The longer you wait, the harder it gets to get you out of that fix. As soon as you decide you need mortgage help, call for a loan modification help and get started. Do work with your lawyer. Your Home Loan Modification doesn’t rest in the hands of your lender, your broker, or your loan modification attorney. These people can help, but you have to do your part and cooperate with your lawyer. Make sure to submit your paperwork on time, answer questions honestly, and give them a clear picture of your financial situation. Don’t file for bankruptcy, unless you really have to. Many people think that filing for bankruptcy can help them stop foreclosure. But data from the American Bar Association shows that it doesn’t work that way. In fact, 96% of the people who file bankruptcy end up losing their homes anyway—so they’re left with a foreclosure AND a bankruptcy on their records. In some cases, bankruptcy is still a viable option, but don’t make any decisions without getting professional advice. Do have a backup plan. Not all people will qualify for a mortgage loan modification. Maybe you’ve fallen too far behind, your lender may be simply hard to work with, or maybe you don’t need it after all. In any case, it’s always good to have a Plan B. Your mortgage modification attorney can help you find the best solution. If you can’t get your loan modified, talk to your lawyer about a short sale. This involves selling your home for less than its fair market value and giving the proceeds to your lender. Although you still lose your home, it’s not as damaging to your credit as foreclosure, so it’s easier to get back on your feet.
Article Source: http://www.articlesbase.com/mortgage-articles/5-tips-every-loan-modification-firm-talks-about-702150.html
About the AuthorThe Loan Modification Firm has all the experience and knowledge that is needed to get the job done. The Loan Modification Attorney can be reached at Law Offices of Marc R. Tow Just Call 800-738-1170 or visit Home Loan Modification
For a Free consultation talk to our Loan Modification Lawyer or go through the Loan Modification FAQs
Here’s a list of loan modification do’s and don’ts to help you avoid common pitfalls. Do know your rights. More than 80% of mortgage contracts violate one or more lending laws—and most of them go unnoticed. But these violations can be your biggest weapon in the loan modification process. They can give you the leverage you need to negotiate with your lender and stop foreclosure. Your loan modification attorney can help you understand your rights and use them to get the results you want. Don’t wait too long. The foreclosure process is designed so that you have time to get back on your feet and save your home. But that doesn’t mean it’s safe to procrastinate. The longer you wait, the harder it gets to get you out of that fix. As soon as you decide you need mortgage help, call for a loan modification help and get started. Do work with your lawyer. Your Home Loan Modification doesn’t rest in the hands of your lender, your broker, or your loan modification attorney. These people can help, but you have to do your part and cooperate with your lawyer. Make sure to submit your paperwork on time, answer questions honestly, and give them a clear picture of your financial situation. Don’t file for bankruptcy, unless you really have to. Many people think that filing for bankruptcy can help them stop foreclosure. But data from the American Bar Association shows that it doesn’t work that way. In fact, 96% of the people who file bankruptcy end up losing their homes anyway—so they’re left with a foreclosure AND a bankruptcy on their records. In some cases, bankruptcy is still a viable option, but don’t make any decisions without getting professional advice. Do have a backup plan. Not all people will qualify for a mortgage loan modification. Maybe you’ve fallen too far behind, your lender may be simply hard to work with, or maybe you don’t need it after all. In any case, it’s always good to have a Plan B. Your mortgage modification attorney can help you find the best solution. If you can’t get your loan modified, talk to your lawyer about a short sale. This involves selling your home for less than its fair market value and giving the proceeds to your lender. Although you still lose your home, it’s not as damaging to your credit as foreclosure, so it’s easier to get back on your feet.
Article Source: http://www.articlesbase.com/mortgage-articles/5-tips-every-loan-modification-firm-talks-about-702150.html
About the AuthorThe Loan Modification Firm has all the experience and knowledge that is needed to get the job done. The Loan Modification Attorney can be reached at Law Offices of Marc R. Tow Just Call 800-738-1170 or visit Home Loan Modification
For a Free consultation talk to our Loan Modification Lawyer or go through the Loan Modification FAQs
Loan Modification Firms - Top 11 Questions to Ask Before You Hire One
Consumer Awareness Guide: Eleven Critical Questions You Need to Ask Before You Hire a Loan Modification Company
Most people that are experiencing financial difficulty have no doubt heard of loan modifications. They are talked about on the nightly news and although once shrouded in secrecy, they are now common knowledge. Those also in the know, realize that the government solutions to the financial crisis we're experiencing will hardly solve the problem. The first round of government intervention after TARP 1 created "Hope For Homeowners" which was the federal government's attempt at loan modifications.
Well, here are the facts on that one. Of the supposed 400,000 families that were to be shielded from foreclosure, as of this report, approximately 400 loans (that's right 400 total) have been refinanced. Industry executives correctly called the program "useless" because of its onerous details.
Here are the stats on the "Hope Now Alliance" formed in the fall of 2007. Ironically, a former sub-prime mortgage executive was put in charge- can you say "fox in the henhouse?".
Of the 2.2 million foreclosures supposedly "prevented" by Hope Now Alliance, 53% of homeowners were in default again within 6 months. Why, you ask? Because the supposed modifications led to higher, not lower payments, since lenders are tacking on missed payments, taxes, and big fees to borrower's monthly bills.
The newest round of "foreclosure prevention" solutions from the Obama administration unfortunately will not fare much better. Lenders are currently overwhelmed with calls from borrowers since the plan was announced, and don't have the resources or the training to deal with the inquiries.
Homeowners who have tried to get their own loans modified have met with frustration, deceit, incompetence, bureaucracy, and failure due to a system which is rigged to favor the banks, not the homeowners.
I speak form personal experience. Hurricane Katrina wiped out my real estate business and I had to do my own loan modifications. I spent over 2 years trying to get insurance claims paid on damaged properties after hiring several attorneys, public adjusters, and engineers.
The irony was that lenders only allowed a 3-6 month grace period and they wanted their money. I scrambled not only to rebuild my business, but also to save my own home after this catastrophe. I learned a very hard lesson. The banks are definitely not looking out for you. Having a professional on my side would have leveled the playing field.
This report is therefore dedicated to help those that realize that hiring a professional loan modification firm with a track record of success, is their best solution in keeping their home.
Despite what the T.V. pundits tell you when they say "...contact your lender, they want to work things out..." trying to get your loan modified yourself is akin to representing yourself in court. Nine times out of ten it's a bad idea.
With that said, it's easy to be overwhelmed with all the conflicting information out there. After reading this report, you will be armed with the knowledge to evaluate whether or not a loan modification company is legitimate or a scam!
Before you make a decision to hire anyone to handle a loan modification it's vitally important that you answer the following 11 questions. The answers to some of these questions are more subjective and to be taken in as part of a whole, others are absolutely critical.
1.) How long has the company in question been representing clients for loan modifications?
While the fact that a company is new by itself doesn't necessarily mean that you are going to get a bad modification, you're less likely to be scammed if the business you are dealing with has some sort of track record.
If it is a brand new company, or they just started doing loan modifications, you want to use more caution. Even attorneys and law firms are no exception to this rule. Law firms are no exception to the economic turmoil we live in, and as they have seen their billable hours reduced, some scramble to find work in other areas such as loan modifications.
Whether they are actually competent enough to get a successful modification done is a different matter, and they must be evaluated as stringently as any other company.
2.) What is the company's success rate in achieving successful loan modifications?
Most loan modification firms will claim to have above a "90% success rate".
If the company can't tell you their success rate, this is an immediate red flag and you should RUN, not walk the other way! Ask yourself: if you were in a service business like this, would you take the time to know how many loan modifications you had taken on, and how many had been approved?
Second, you need to dig further when a company gives you their so-called "success rate". What does that mean? That the company got a modification with a payment higher than before and the homeowner defaulted 3 months into it - is that considered a "successful modification"?
The definition you should hold of a "successful loan modification" is where the borrower is able to keep their home. Any loan modification company that takes fees after they have a client's budget and knows they can't afford the payment, is inherently unethical.
If the loan modification company can't give you a solid idea of what their REAL success rate is in getting quality loan modifications done that allow the borrowers to stay in their homes at their current income level, then you need to look elsewhere.
3.) Do you have recent examples of successful modifications you have done?
The loan modification company should be able to produce SOME documentation of the work they have done. Since the loan modification documents contain personal financial information, you may see the specific new terms such as interest rate and fixed term, but not the homeowner's personal information such as name, address etc.
If the company cannot produce examples, or they reply "...well I haven't done any yet but I've been a loan officer and a real estate agent for 3 years, how hard can it be?", let someone else be their guinea pig. Saving your home is too important of a task to put in the hands of an amateur.
Also, make sure that the examples are modifications performed by THAT particular company. A typical scam operation will use "generic" testimonials and loan modifications, or will say "As Seen on TV" because a show on CNBC spoke about loan modifications and made no mention of their company.
If you find that the testimonials they provide are not done by them, BEWARE!
4.) What criteria do you look at when deciding whether or not you can do loan modifications?
Examine the answer to this one VERY carefully. Also, make sure you get it answered to some degree, before they know anything about your particular situation.
This is a true test of whether they fall into the boiler room category, or a professional advisor. If the loan modification rep gives a song and dance about how they can do any modification and can save your home no matter what, you know you are dealing with a scam.
A reputable loan modification firm will need to obtain a full analysis and assessment of your hardship, income, assets, liabilities, with supporting docs before they can make any promises, and will be upfront with you that they cannot help every person that contacts them.
Unfortunately, not every homeowner qualifies for a loan modification. If you currently have no income, or any prospects of becoming re-employed in the near future, you may not qualify for a loan modification.
If your lender is not doing loan modifications at this time, you may not qualify. Every situation is different. A competent, professional loan modification company, that does hundreds or thousands of loan modifications each month, knows what lenders are willing to do in terms of modification and these criteria are changing literally weekly, due to the current financial crisis.
It is up to the professionalism of the loan modification company to NOT take your fee if they know they cannot help you, or better yet, have a results-based money back guarantee to hold themselves accountable.
5.) How long does it usually take to successfully negotiate a modification for your client?
Today's lending environment is always fluctuating on a near daily basis, with new legislation being proposed, failed banks, and many other factors. Still, a good loan modification company should be able to give you some idea of how long the process is going to take.
If they duck and run at this question without a clear explanation, you need to give them the finger. (That's taking your finger and pressing the receiver!)
6.) Does the company offer a money bank guarantee for their services? Do they guarantee that you will have a lower payment than before?
This is a big one. Stories abound of people that were promised the world by a loan modification company, paid a fee of several thousand dollars, and ended up never hearing back from the company.
If a company does not offer a guarantee, or gives an excuse such as "..no one can guarantee results", buyer beware. If they do offer a guarantee, examine closely as to what they mean exactly. Some inexperienced loan modification companies do not have the skill to get quality loan modifications done, resulting in payments that are even higher than before!
Bear in mind that loan modification companies take significant risk in offering a guarantee. They are performing a service with up front costs, so it isn't like returning clothes that they can re-sell.
On the other hand, you as the homeowner are taking a GIGANTIC risk in putting out your hard earned money to do a modification.
You see, by having a strong guarantee, the loan modification company essentially provides a check and balance on whether to take your fee or not - since they know if they don't do their job, or get a poor modification done for you, they bear a financial risk.
7.) Do they offer a free approval process or is there a charge up front to take an application? If your state requires that a loan modification company be registered, are they?
A good loan modification company will generally not charge an application fee, as their goal is to actually help people get their loan modified and stay in their home, not to collect as many application fees as they can. If a company wants an application fee upfront, you may want to investigate their success record a little more.
Certain states such as California are regulated in how loan modification companies can take upfront payments. However, California ironically also has had more modification start ups in the past 6 months (this report was written in March 2008). Many of them are not registered, are complete scams, and playing a cat and mouse game with the Attorney General's office.
Others, like Maryland, require that an attorney review the documents. Know the laws in your state BEFORE you contact the modification company, and listen to what they say either on the phone or on written materials to test their level of competence.
8.) Will I be kept informed throughout the modification process? Do I have multiple ways to stay in touch on the process - for instance, a way to track my case, phone number, fax number, etc?
You need to have a consistent mechanism to keep track of your file throughout the modification process, ideally a secure website or some form of automated mechanism.
9.) What other lines of business is the company in besides loan modifications? What lines of business were you in prior to loan modification?
When evaluating a loan modification company, the one thing you need to realize is that the businesses are typically small (less than 100 employees). You want to know what professional credentials and experience they bring to the table.
If the principals in the company just closed the doors of their subprime mortgage broker office that was shut down...it may be a red flag.
Do a Google search and look for the names of individuals involved in the company.
While online forums can be useful, bear in mind that with the anonymous nature of text based sites, anybody (including competitors) can pose as a disgruntled customer...and they often do. Many legitimate companies have been ruined by well-orchestrated smear campaigns on behalf of their competitors. Look at the information, but use caution when evaluating what you see on internet forums.
10.) Will you modify more than one mortgage, and do you offer help with a forbearance agreement, short sale, deed in lieu of foreclosure? Do you charge extra fees for these additional services?
If a loan modification effort fails, you need to know what "Plan B" is. Even if you can't stay in the house, walking away and doing nothing is DEFINITELY not the right option.
A Deed in Lieu of foreclosure, where you give the house back to the lender, should be your last resort. There are consequences of this action, but they are far less than that of a foreclosure. It will generally leave you with less bruised credit and likelihood of a judgment against you compared to having the lender foreclose.
Some loan modification companies offer alternate services, such as a Deed in Lieu of Foreclosure free of charge if the initial effort to modify the loan is not successful and the homeowner is unable to keep the house.
11.) Do you have any complaints against your company with the Attorney General's Office, Better Business Bureau, etc?
This is important to know. If a company has complaints it doesn't necessarily mean they are a bad company, depending on their volume of transactions.
For instance, if a modification company has been in business several years and has processed hundreds or thousands of modifications, a few complaints over several years, is probably not a big deal. However if they started six months ago and already have 30 complaints, then that's probably a red flag.
If the business is reputable, see how they handled any customer complaints, since every business, if they've been around a while, will inevitably have them.
Also bear in mind that the Better Business Bureau rating is VERY subjective - for instance, Best Buy has an "F" rating, and Disney Films has an "E" rating! Ratings also change, so make sure you read between the lines.
Conclusion: We're currently experiencing an unprecedented era of economic turmoil, and it is unfortunate that many vultures have risen to swoop in and take advantage of people's desperation.
Hopefully this report has put you in a more empowered position than you were prior to reading it. By applying it to every modification company you look into, you give yourself a much better chance of finding a competent company that can solve your financial crisis.
Remember, while these questions serve as a measuring stick, you also want to take a step back and look into the "big picture" and as the saying goes, "trust your gut". Is the company run by people who are "visible" and put themselves out there publicly using new media tools like blogs and videos, or do they hide behind "template" websites?
Do you get the feeling that they are competent, and that they also truly have empathy for your situation?
No matter what happens, remember that a house is just that...a building and the finances attached to it. It doesn't define who you are as a person. If you look at the most successful entrepreneurs of our time: many had bankruptcies and serious financial problems in their past.
However they never lost sight of their values or their end goal, learned what they could from the situation, and moved forward to success.
You can spend time asking yourself "why me?", or you can ask yourself "how can I use this challenge to find a way to solve my problem?" - either way you will get an answer. It is up to you to choose which question to ask.
I wish you success in your search for a solution to your housing crisis.
©2009 By Todd Wetzelberger
If you found this information useful and want to share it with others that may be in a similar situation, forward this article or send them to http://www.surefireloanmod.com for their very own copy they can reference when making the critical decision to help save their home.
Also, I'd love to hear how you are handling your own housing crisis. Go to my blog and post your comments. http://surefireloanmod.com/2009/03/top-11-questions-free-report-released/ You never know how sharing your personal story can help others.
Todd Wetzelberger is the CEO and Co-founder of Surefire Loan Modifications
Article Source: http://EzineArticles.com/?expert=Todd_Wetzelberger
Most people that are experiencing financial difficulty have no doubt heard of loan modifications. They are talked about on the nightly news and although once shrouded in secrecy, they are now common knowledge. Those also in the know, realize that the government solutions to the financial crisis we're experiencing will hardly solve the problem. The first round of government intervention after TARP 1 created "Hope For Homeowners" which was the federal government's attempt at loan modifications.
Well, here are the facts on that one. Of the supposed 400,000 families that were to be shielded from foreclosure, as of this report, approximately 400 loans (that's right 400 total) have been refinanced. Industry executives correctly called the program "useless" because of its onerous details.
Here are the stats on the "Hope Now Alliance" formed in the fall of 2007. Ironically, a former sub-prime mortgage executive was put in charge- can you say "fox in the henhouse?".
Of the 2.2 million foreclosures supposedly "prevented" by Hope Now Alliance, 53% of homeowners were in default again within 6 months. Why, you ask? Because the supposed modifications led to higher, not lower payments, since lenders are tacking on missed payments, taxes, and big fees to borrower's monthly bills.
The newest round of "foreclosure prevention" solutions from the Obama administration unfortunately will not fare much better. Lenders are currently overwhelmed with calls from borrowers since the plan was announced, and don't have the resources or the training to deal with the inquiries.
Homeowners who have tried to get their own loans modified have met with frustration, deceit, incompetence, bureaucracy, and failure due to a system which is rigged to favor the banks, not the homeowners.
I speak form personal experience. Hurricane Katrina wiped out my real estate business and I had to do my own loan modifications. I spent over 2 years trying to get insurance claims paid on damaged properties after hiring several attorneys, public adjusters, and engineers.
The irony was that lenders only allowed a 3-6 month grace period and they wanted their money. I scrambled not only to rebuild my business, but also to save my own home after this catastrophe. I learned a very hard lesson. The banks are definitely not looking out for you. Having a professional on my side would have leveled the playing field.
This report is therefore dedicated to help those that realize that hiring a professional loan modification firm with a track record of success, is their best solution in keeping their home.
Despite what the T.V. pundits tell you when they say "...contact your lender, they want to work things out..." trying to get your loan modified yourself is akin to representing yourself in court. Nine times out of ten it's a bad idea.
With that said, it's easy to be overwhelmed with all the conflicting information out there. After reading this report, you will be armed with the knowledge to evaluate whether or not a loan modification company is legitimate or a scam!
Before you make a decision to hire anyone to handle a loan modification it's vitally important that you answer the following 11 questions. The answers to some of these questions are more subjective and to be taken in as part of a whole, others are absolutely critical.
1.) How long has the company in question been representing clients for loan modifications?
While the fact that a company is new by itself doesn't necessarily mean that you are going to get a bad modification, you're less likely to be scammed if the business you are dealing with has some sort of track record.
If it is a brand new company, or they just started doing loan modifications, you want to use more caution. Even attorneys and law firms are no exception to this rule. Law firms are no exception to the economic turmoil we live in, and as they have seen their billable hours reduced, some scramble to find work in other areas such as loan modifications.
Whether they are actually competent enough to get a successful modification done is a different matter, and they must be evaluated as stringently as any other company.
2.) What is the company's success rate in achieving successful loan modifications?
Most loan modification firms will claim to have above a "90% success rate".
If the company can't tell you their success rate, this is an immediate red flag and you should RUN, not walk the other way! Ask yourself: if you were in a service business like this, would you take the time to know how many loan modifications you had taken on, and how many had been approved?
Second, you need to dig further when a company gives you their so-called "success rate". What does that mean? That the company got a modification with a payment higher than before and the homeowner defaulted 3 months into it - is that considered a "successful modification"?
The definition you should hold of a "successful loan modification" is where the borrower is able to keep their home. Any loan modification company that takes fees after they have a client's budget and knows they can't afford the payment, is inherently unethical.
If the loan modification company can't give you a solid idea of what their REAL success rate is in getting quality loan modifications done that allow the borrowers to stay in their homes at their current income level, then you need to look elsewhere.
3.) Do you have recent examples of successful modifications you have done?
The loan modification company should be able to produce SOME documentation of the work they have done. Since the loan modification documents contain personal financial information, you may see the specific new terms such as interest rate and fixed term, but not the homeowner's personal information such as name, address etc.
If the company cannot produce examples, or they reply "...well I haven't done any yet but I've been a loan officer and a real estate agent for 3 years, how hard can it be?", let someone else be their guinea pig. Saving your home is too important of a task to put in the hands of an amateur.
Also, make sure that the examples are modifications performed by THAT particular company. A typical scam operation will use "generic" testimonials and loan modifications, or will say "As Seen on TV" because a show on CNBC spoke about loan modifications and made no mention of their company.
If you find that the testimonials they provide are not done by them, BEWARE!
4.) What criteria do you look at when deciding whether or not you can do loan modifications?
Examine the answer to this one VERY carefully. Also, make sure you get it answered to some degree, before they know anything about your particular situation.
This is a true test of whether they fall into the boiler room category, or a professional advisor. If the loan modification rep gives a song and dance about how they can do any modification and can save your home no matter what, you know you are dealing with a scam.
A reputable loan modification firm will need to obtain a full analysis and assessment of your hardship, income, assets, liabilities, with supporting docs before they can make any promises, and will be upfront with you that they cannot help every person that contacts them.
Unfortunately, not every homeowner qualifies for a loan modification. If you currently have no income, or any prospects of becoming re-employed in the near future, you may not qualify for a loan modification.
If your lender is not doing loan modifications at this time, you may not qualify. Every situation is different. A competent, professional loan modification company, that does hundreds or thousands of loan modifications each month, knows what lenders are willing to do in terms of modification and these criteria are changing literally weekly, due to the current financial crisis.
It is up to the professionalism of the loan modification company to NOT take your fee if they know they cannot help you, or better yet, have a results-based money back guarantee to hold themselves accountable.
5.) How long does it usually take to successfully negotiate a modification for your client?
Today's lending environment is always fluctuating on a near daily basis, with new legislation being proposed, failed banks, and many other factors. Still, a good loan modification company should be able to give you some idea of how long the process is going to take.
If they duck and run at this question without a clear explanation, you need to give them the finger. (That's taking your finger and pressing the receiver!)
6.) Does the company offer a money bank guarantee for their services? Do they guarantee that you will have a lower payment than before?
This is a big one. Stories abound of people that were promised the world by a loan modification company, paid a fee of several thousand dollars, and ended up never hearing back from the company.
If a company does not offer a guarantee, or gives an excuse such as "..no one can guarantee results", buyer beware. If they do offer a guarantee, examine closely as to what they mean exactly. Some inexperienced loan modification companies do not have the skill to get quality loan modifications done, resulting in payments that are even higher than before!
Bear in mind that loan modification companies take significant risk in offering a guarantee. They are performing a service with up front costs, so it isn't like returning clothes that they can re-sell.
On the other hand, you as the homeowner are taking a GIGANTIC risk in putting out your hard earned money to do a modification.
You see, by having a strong guarantee, the loan modification company essentially provides a check and balance on whether to take your fee or not - since they know if they don't do their job, or get a poor modification done for you, they bear a financial risk.
7.) Do they offer a free approval process or is there a charge up front to take an application? If your state requires that a loan modification company be registered, are they?
A good loan modification company will generally not charge an application fee, as their goal is to actually help people get their loan modified and stay in their home, not to collect as many application fees as they can. If a company wants an application fee upfront, you may want to investigate their success record a little more.
Certain states such as California are regulated in how loan modification companies can take upfront payments. However, California ironically also has had more modification start ups in the past 6 months (this report was written in March 2008). Many of them are not registered, are complete scams, and playing a cat and mouse game with the Attorney General's office.
Others, like Maryland, require that an attorney review the documents. Know the laws in your state BEFORE you contact the modification company, and listen to what they say either on the phone or on written materials to test their level of competence.
8.) Will I be kept informed throughout the modification process? Do I have multiple ways to stay in touch on the process - for instance, a way to track my case, phone number, fax number, etc?
You need to have a consistent mechanism to keep track of your file throughout the modification process, ideally a secure website or some form of automated mechanism.
9.) What other lines of business is the company in besides loan modifications? What lines of business were you in prior to loan modification?
When evaluating a loan modification company, the one thing you need to realize is that the businesses are typically small (less than 100 employees). You want to know what professional credentials and experience they bring to the table.
If the principals in the company just closed the doors of their subprime mortgage broker office that was shut down...it may be a red flag.
Do a Google search and look for the names of individuals involved in the company.
While online forums can be useful, bear in mind that with the anonymous nature of text based sites, anybody (including competitors) can pose as a disgruntled customer...and they often do. Many legitimate companies have been ruined by well-orchestrated smear campaigns on behalf of their competitors. Look at the information, but use caution when evaluating what you see on internet forums.
10.) Will you modify more than one mortgage, and do you offer help with a forbearance agreement, short sale, deed in lieu of foreclosure? Do you charge extra fees for these additional services?
If a loan modification effort fails, you need to know what "Plan B" is. Even if you can't stay in the house, walking away and doing nothing is DEFINITELY not the right option.
A Deed in Lieu of foreclosure, where you give the house back to the lender, should be your last resort. There are consequences of this action, but they are far less than that of a foreclosure. It will generally leave you with less bruised credit and likelihood of a judgment against you compared to having the lender foreclose.
Some loan modification companies offer alternate services, such as a Deed in Lieu of Foreclosure free of charge if the initial effort to modify the loan is not successful and the homeowner is unable to keep the house.
11.) Do you have any complaints against your company with the Attorney General's Office, Better Business Bureau, etc?
This is important to know. If a company has complaints it doesn't necessarily mean they are a bad company, depending on their volume of transactions.
For instance, if a modification company has been in business several years and has processed hundreds or thousands of modifications, a few complaints over several years, is probably not a big deal. However if they started six months ago and already have 30 complaints, then that's probably a red flag.
If the business is reputable, see how they handled any customer complaints, since every business, if they've been around a while, will inevitably have them.
Also bear in mind that the Better Business Bureau rating is VERY subjective - for instance, Best Buy has an "F" rating, and Disney Films has an "E" rating! Ratings also change, so make sure you read between the lines.
Conclusion: We're currently experiencing an unprecedented era of economic turmoil, and it is unfortunate that many vultures have risen to swoop in and take advantage of people's desperation.
Hopefully this report has put you in a more empowered position than you were prior to reading it. By applying it to every modification company you look into, you give yourself a much better chance of finding a competent company that can solve your financial crisis.
Remember, while these questions serve as a measuring stick, you also want to take a step back and look into the "big picture" and as the saying goes, "trust your gut". Is the company run by people who are "visible" and put themselves out there publicly using new media tools like blogs and videos, or do they hide behind "template" websites?
Do you get the feeling that they are competent, and that they also truly have empathy for your situation?
No matter what happens, remember that a house is just that...a building and the finances attached to it. It doesn't define who you are as a person. If you look at the most successful entrepreneurs of our time: many had bankruptcies and serious financial problems in their past.
However they never lost sight of their values or their end goal, learned what they could from the situation, and moved forward to success.
You can spend time asking yourself "why me?", or you can ask yourself "how can I use this challenge to find a way to solve my problem?" - either way you will get an answer. It is up to you to choose which question to ask.
I wish you success in your search for a solution to your housing crisis.
©2009 By Todd Wetzelberger
If you found this information useful and want to share it with others that may be in a similar situation, forward this article or send them to http://www.surefireloanmod.com for their very own copy they can reference when making the critical decision to help save their home.
Also, I'd love to hear how you are handling your own housing crisis. Go to my blog and post your comments. http://surefireloanmod.com/2009/03/top-11-questions-free-report-released/ You never know how sharing your personal story can help others.
Todd Wetzelberger is the CEO and Co-founder of Surefire Loan Modifications
Article Source: http://EzineArticles.com/?expert=Todd_Wetzelberger
Sub Prime Loan Modification
Author: Loan Modification Attorney
Sub-prime lending is a type of credit given to homeowners who do not meet the criteria for regular (“prime”) loans. A typical sub-prime borrower has a poor or limited credit history and a FICO score of less than 620. These factors make them a risky investment for regular lenders, which keeps them from taking out loans. To compensate for the risk, sub-prime lenders impose higher costs on their contracts. For credit cards, this is usually a higher fee for over-the-limit spending or late fees. Sub-prime mortgages usually have higher interest rates and stricter terms. Contrary to popular belief, sub-prime lending is a perfectly legal business. But like many new industries, it has been tainted by lenders who don’t play by industry standards. From 2003 to 2007, shady companies have turned up offering terms ranging from unfair to downright illegal. This, along with the economic slowdown, has contributed a great deal to the real estate crisis that forced many homeowners into foreclosure. Are all sub-prime loans bad? No. There are actually some sub-prime companies who give you good value for your money. If you find a good lender and stay current, sub-prime lending can have its benefits.For example, many people use sub-prime loans as a means of credit repair. Basically, it gives you a chance to rebuild your credit history and improve your scores. By keeping up a good record on sub-prime loans, you can eventually refinance to better terms and get back on your feet. How do I know when a loan is sub-prime? The first thing you should look at is the cost of the loan. Sub-prime loans have a higher overall cost (including interest, origination and closing fees) compared to prime loans. Although the basic formula is the same for both types, the pricing for sub-prime loans is more noticeably risk-based. A low credit score, small down payment, and other negative factors can greatly increase the cost of a sub-prime loan. Another common feature is the prepayment penalty. Prepayment is when you pay more than the minimum monthly amount, or pay off the loan ahead of schedule. The penalty is to make up for lost interest on the lender’s part. Because you’re getting off early, the lender stops earning regular interest—and naturally, they charge you for it. Many sub-prime mortgages follow the 2/28 structure. This means that you pay a fixed interest rate for the first two years, after which the loan switches to an adjustable rate where your payments are determined by market indicators. Often, the introductory rate is higher than the current index and the margin is applied once the loan shifts. For example, a lender can give you an intro rate of 8% while the index is currently at 4%, with a margin set at 6%. Assuming the index stays the same; your rate can jump to 10% when your two years is over. What can I do if I’m in a sub-prime loan? Fortunately, there are laws in place to protect borrowers in any loan, prime or sub-prime. For instance, the Real Estate Settlement Procedures Act (RESPA) requires all lenders to give you a good faith estimate of the total cost of the loan before closing any deals. This prevents any third party, such as mortgage brokers, from making any kickbacks at your expense. All mortgages are also covered by the Truth in Lending Act (TILA). This law gives you the right to know the full lending terms and loan costs in any credit transaction, including credit cards. The TILA allows you to opt out of a transaction within a reasonable time if you don’t agree with some of the terms. If a sub-prime mortgage has put you in financial difficulty, another thing you can do is apply for Loan Modification or in this case Sub Prime Loan Modification refers to an agreement between you and your lender to change the terms of your loan on account of your financial situation. This way you can modify your loan terms to a more affordable level. The Sub Prime Mortgage Loan Modification is a lengthy and time consuming process. However a competent loan modification attorney can expertly handle your case and expedite the loan modification process. A loan modification attorney will expertly present your case and use the above mentioned lending laws as leverage to get you more reasonable rates. If you’re already in foreclosure, this will also stop the process while you work out better terms with your lender.
Article Source: http://www.articlesbase.com/mortgage-articles/sub-prime-loan-modification-755602.html
About the AuthorThe Loan Modification Department is composed of a team of attorneys, mortgage and real estate professionals, and hardship analysts. Lead by Expert Loan Modification Attorney, Marc R. Tow, Loan Modification Department has helped thousands of American Home Owners save their Homes and decrease their loan payments. For more information just Call 800-738-1170 or Visit our website http://www.cdloanmod.com/
Sub-prime lending is a type of credit given to homeowners who do not meet the criteria for regular (“prime”) loans. A typical sub-prime borrower has a poor or limited credit history and a FICO score of less than 620. These factors make them a risky investment for regular lenders, which keeps them from taking out loans. To compensate for the risk, sub-prime lenders impose higher costs on their contracts. For credit cards, this is usually a higher fee for over-the-limit spending or late fees. Sub-prime mortgages usually have higher interest rates and stricter terms. Contrary to popular belief, sub-prime lending is a perfectly legal business. But like many new industries, it has been tainted by lenders who don’t play by industry standards. From 2003 to 2007, shady companies have turned up offering terms ranging from unfair to downright illegal. This, along with the economic slowdown, has contributed a great deal to the real estate crisis that forced many homeowners into foreclosure. Are all sub-prime loans bad? No. There are actually some sub-prime companies who give you good value for your money. If you find a good lender and stay current, sub-prime lending can have its benefits.For example, many people use sub-prime loans as a means of credit repair. Basically, it gives you a chance to rebuild your credit history and improve your scores. By keeping up a good record on sub-prime loans, you can eventually refinance to better terms and get back on your feet. How do I know when a loan is sub-prime? The first thing you should look at is the cost of the loan. Sub-prime loans have a higher overall cost (including interest, origination and closing fees) compared to prime loans. Although the basic formula is the same for both types, the pricing for sub-prime loans is more noticeably risk-based. A low credit score, small down payment, and other negative factors can greatly increase the cost of a sub-prime loan. Another common feature is the prepayment penalty. Prepayment is when you pay more than the minimum monthly amount, or pay off the loan ahead of schedule. The penalty is to make up for lost interest on the lender’s part. Because you’re getting off early, the lender stops earning regular interest—and naturally, they charge you for it. Many sub-prime mortgages follow the 2/28 structure. This means that you pay a fixed interest rate for the first two years, after which the loan switches to an adjustable rate where your payments are determined by market indicators. Often, the introductory rate is higher than the current index and the margin is applied once the loan shifts. For example, a lender can give you an intro rate of 8% while the index is currently at 4%, with a margin set at 6%. Assuming the index stays the same; your rate can jump to 10% when your two years is over. What can I do if I’m in a sub-prime loan? Fortunately, there are laws in place to protect borrowers in any loan, prime or sub-prime. For instance, the Real Estate Settlement Procedures Act (RESPA) requires all lenders to give you a good faith estimate of the total cost of the loan before closing any deals. This prevents any third party, such as mortgage brokers, from making any kickbacks at your expense. All mortgages are also covered by the Truth in Lending Act (TILA). This law gives you the right to know the full lending terms and loan costs in any credit transaction, including credit cards. The TILA allows you to opt out of a transaction within a reasonable time if you don’t agree with some of the terms. If a sub-prime mortgage has put you in financial difficulty, another thing you can do is apply for Loan Modification or in this case Sub Prime Loan Modification refers to an agreement between you and your lender to change the terms of your loan on account of your financial situation. This way you can modify your loan terms to a more affordable level. The Sub Prime Mortgage Loan Modification is a lengthy and time consuming process. However a competent loan modification attorney can expertly handle your case and expedite the loan modification process. A loan modification attorney will expertly present your case and use the above mentioned lending laws as leverage to get you more reasonable rates. If you’re already in foreclosure, this will also stop the process while you work out better terms with your lender.
Article Source: http://www.articlesbase.com/mortgage-articles/sub-prime-loan-modification-755602.html
About the AuthorThe Loan Modification Department is composed of a team of attorneys, mortgage and real estate professionals, and hardship analysts. Lead by Expert Loan Modification Attorney, Marc R. Tow, Loan Modification Department has helped thousands of American Home Owners save their Homes and decrease their loan payments. For more information just Call 800-738-1170 or Visit our website http://www.cdloanmod.com/
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