In the past several years now it seems that just about everyone from Mortgage Brokers, Real Estate Agents, and especially Lawyers have all become Instant “Loan Modification Experts.”
Is there some esteemed loan modification University providing degrees in a matter of months for these people? Put up a website and you become an instant expert in just a matter of days. The funny thing is that some of these instant experts may have been the very same people who were part of the predatory loan disaster to begin with.
We get several calls a day from these same “so called experts” wanting to know how a loan audit can help them because they aren’t having any success with what they think they’re doing. Many of them are not even aware that they may be breaking the law by doing loan modifications.
See CALIFORNIA CIVIL CODE. See Federal Law H.R. 3221
See CALIFORNIA CIVIL CODE. See Federal Law H.R. 3221
It is astounding how little these people know about the loan modification process… their lack of knowledge can sometimes harm you, the borrower more than help. Beware… of anyone telling you they can get you a modification and that the lender is going to respond to them more readily. Beware!
Anyone who tells you they can modify your loan and you are not in foreclosure is either lying or doesn’t know what they’re talking about! Think about this, why would a lender even consider modifying your loan if there is no current problem with your loan? They won’t!!!
Not Unless You Have A Mortgage Audit To Back Up Your Reasons For A Modification/Restructure Of Your Loan!!!
How A Loan Modification Works When You Attempt It Without A Mortgage Audit.
NOTE: It’s important to realize that just because you want to get a loan modification doesn’t mean that the lender will be willing. The lender needs proof that modifying your loan is in their best interest. A modification starts with an agreement between you and your lender.
Important Note: Make sure everything is in writing lenders sometimes will purposefully put you into a modification they know you will not be able to keep up. The reason for this is to distort financial reporting of delinquencies, loans are modified to help borrowers make a few payments and then aggressively rearrange the accounts to classify them as current, instead of delinquent.
These plans generally require higher payments than the regular monthly mortgage payment (the one you were making until you fell behind) for a period of time, usually 3-6-12 months until the loan is brought up-to-date. Doesn’t make much sense, does it? If you couldn’t make the original payment how can you make a higher payment?
In some cases your payments will be extended and the delinquent payments are added to the mortgage balance. Your interest may be lowered for a specified period of time and your loan term may be extended from thirty to forty years.
You the borrower must demonstrate to the Lender that you currently have the ability to start payments immediately. This is done with a financial statement that reveals your total income and expenses. You must also show your income will again go up to a sustainable level if the reason you fell behind was income loss. You’ll also need to submit a hardship letter this letter is to validate to the lender why you were experiencing difficulties and why now you no longer are experiencing a hardship.
How A Loan Modification/Restructure Works When You Have A Mortgage Audit.
By making sure that there is a Mortgage Audit prior to working out a loan modification you’re going to be able to negotiate a much more favorable modification/restructure.
Because so many mortgage loans have problems in the ways in which they were put together a Mortgage Audit prior to seeking a loan modification will ensure that any violations/fraud is uncovered.
A Mortgage Audit may prove more helpful leading to a modification – an audit proves beyond a doubt that the loan you are in may be illegal. For this reason your lender may have no choice but to modify/restructure your loan making it affordable based on permanently lowering the interest rate-discounting the principal loan balance and or returning loan origination fees along with interest.
Some Things You Need To Know
All of this can be very confusing and intimidating, but it doesn’t have to be, we’ve been involved in helping people like yourself out of lender problems for over twenty years, in all fifty states. If we have to blow our own horn, we don’t believe there is anyone who knows more about this business than we do.
It does kind of bother us that so many so called ”experts“ are taking advantage of and misleading people like you who truly need the right advice.
There are so many predators, so here is some advice
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A list of some questions you need to ask.
- What is your primary practice?
- How long have you been doing loan modifications?
- What is your initial fee, is it your total fee and if not what other fees will I have to pay?
- Can you guarantee to stop my foreclosure?
Tell tale signs of a start up with Zero experience.
New toll free numbers 866-555-1234 / 877-555-1234 / 888-555-1234
Companies who offer, debt consolidation, refinancing, short sale help bankruptcies, etc.
No contact phone.
No physical address
Stock photos of families, office personnel etc.
Be Cautious of Statements Such As:
We have direct contact numbers to the modification departments for all major lenders and servicing companies…which means we talk to decision makers in a matter of minutes as opposed to hours that the normal consumer has to endure. This is not an honest statement, loan modification depts. don’t exist the area of the lender where a modification may begin is with the “Loss Mitigation” dept.
Be assured regardless of who you may be, never will anyone ever get to a decision maker in a matter of minutes. In fact the decision maker is not someone anyone will likely talk to.