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Q. What is Loan Modification?
A Loan Modification is a negotiation between a lender and a borrower whereas the loan terms are restructured without refinancing. The rate and terms of your loan are restructured to fit your current financial situation. In these market conditions, the banks and lenders have been mandated by the president to do everything they can to work out a payment plan with their borrowers. This is a great thing for today's borrowers, especially for those who are running late on their payments or are having trouble making them on time.
The banks and lenders would rather take less money and keep you in your home making a payment that you can afford, rather than go through the expense of foreclosing on the home, hiring a listing agent, rehabilitating the home, and letting it sit empty on the market for months, only to lose thousands in the process.
We currently work with most every major bank and lender to secure a loan modification in order to help them help you. In many cases we actually have taught smaller banks and lenders how to go about completing a loan modification.
Lenders are willing to negotiate when borrowers are facing financial difficulties and can't obtain other financing alternatives. We will work on your behalf to show the lender why it would be in the lender's best interest to agree to reduce the loan interest rate, reduce monthly payment amounts or change other loan terms.
Q. Can I do my own Loan Modification?
Yes you can. However, it takes a person with thick skin and an iron will to do this. It’s not unusual for it to take up to 6 months or more of calls, faxes, emails, letters etc. before you get any kind of relief. Lenders are very busy with desperate homeowners trying to save their homes from foreclosure.
Unfortunately, they do not have the manpower or the capabilities to save everyone. By doing it on your own, you could easily fall between the cracks with endless procedural delays. But when a lawyer is involved, it seems as if the calls start to get answered and the letters responded to. Often this can make the difference between saving your home and losing your home. Keep in mind that your bank has their best interest at heart.
What usually ends up happening is that the bank will negotiate an agreement that helps them but still leaves you with only a temporary solution. This also takes many hours of communication and back and forth information exchanges in order to accomplish. It is not easy to complete on your own and the outcome may not be favorable to you.
When you contact the bank they will ask for a "hardship letter" from you. When they receive that letter, they will usually tell you that they will get back to you in about 8 weeks. By the time you get back with them, or if you are lucky enough to get a call from them, you're already in worse shape than when you first started negotiation.
With an attorney involved, you have an important ally in your corner to get you the mortgage help you need, FAST! We provide you with the legal professional representation necessary to negotiate a loan modification package that can effectively save your home.
Q. Do you have to be late on your mortgage in order to be eligible for a loan modification?
No, you do not have to be late, but it helps if you are. In other words, you will get more attention and help on your mortgage from your lender if you’re late.
Q. Is it true that Lenders are doing everything they can to assist struggling homeowners.
No. They do not have enough manpower to help all the wounded homeowners suffering in their mortgage contracts. In any one bank, there are literally thousands of requests that are made by desperate homeowners seeking some sort of relief. However, lenders do not want to foreclose on your home unless they have no other alternative. If you can present them with a realistic professional proposal that makes sense, they are very open and receptive to the loan modification process.
Q. What is foreclosure?
Home foreclosure is a process by which a lender regains a property which they have financed. Typically, this is because the borrower or homeowner is behind on house payments and is unable to catch up, often due to circumstances outside of his or her control. When the lender forecloses on the homeowner, the homeowner must move out of the house, therefore, losing all possession of the property and jeopardizing any possible equity that the homeowner may have in the home. There is a legal time frame, which varies from state to state, which determines how long the foreclosure process can take.
Q. How do we stop foreclosure?
Our company specializes in loan modification as a way to stop foreclosure completely. First of all, we will perform a free consultation that includes a detailed financial analysis. By working with you and your lender we can tailor a resolution to meet your specific criteria and financial circumstance. We do all of this quickly and effectively because we have been doing this for some time and have thousands of satisfied customers. If a loan modification is not possible in you particular case, we will explore and recommend other options.
Q. How long do I have to act?
Time is of the essence when you are behind on house payments. Time is definitely not your friend in this situation. Each day that passes makes it that much harder to get a work out agreement with your lender that you can live with. The home foreclosure process can take anywhere from a few weeks to many months, depending on your state law and the method of foreclosure your lender chooses to use. So it is important that you act immediately by calling us for a free consultation.
Q. What hardships qualify for this type of help?
Whether it was the loss of a job, a divorce, an illness, or rising interest rates, there is a legitimate reason for a homeowner falling behind on their mortgage payments. There are many reasons and it's extremely hard to get back on track when you're on a tight budget. We will consult with you to clarify exactly what your hardship is and how it has affected your ability to pay.
Q. Who qualifies for a loan modification?
Anyone who can prove they are having a tough time. Especially those who are currently a few months behind, those with negative amortizing loans, those with loans that are about to adjust, those who are upside down on their loan and those who would rather keep their home than do a short sale. Basically, the bigger the hardship you are having, the more negotiating power you have with your lender. Remember, they don't want to foreclose on you. They would rather keep you in your home and create a solution that will be affordable to you rather than go through the cost and expense of foreclosing on your property.
Q. Why should I choose a loan modification?
A loan modification is a good solution if you cannot refinance, are behind on your payment or struggling to make your payments, have experienced a genuine hardship, and you want to stay in your home. A loan modification is a permanent solution to your situation and is not meant to be used as a temporary stop to the foreclosure process.
Q. How far behind on my payments do I have to be, before I can qualify for a Loan Modification?
If you know that you are unable to make the next payment, contact us after the due date so that we can assist you immediately. If you are more than a month behind or even in the foreclosure stages, we can help you. It just may take a little longer to get your lender to agree on our terms.
Q. Why didn't my mortgage lender tell me about this?
Because they are in the business of refinancing loans and making up to tens of thousands dollars in the process. This program is not that costly and quite frankly, they are so busy dealing with other homeowners who are already going through tough times, that they don't have time to deal with your situation.
Q. Do I have to have good credit?
No. Credit is not a determining factor. We do not pull your credit.
Q. How come you have more success?
Our attorneys have been doing hundreds of loan modifications every month, working with virtually every bank and lender. They have open lines of communication with most lenders, which gives them the ability to negotiate directly with the person who is in charge of making a decision on your loan. We also create a professional legal file on your behalf, that includes all of your financial data such as your income, assets, expenses, and unexpected intangible expenses. They couple this with a full property analysis and package this together in a file that makes it easy for the lender to read and understand, allowing for a more comprehensive and quicker response than you would get through other forms of negotiation.
Q. Several companies have contacted me recently offering to help. What's different about you?
There are many predatory companies who are not what they appear to be. Beware of unscrupulous companies who are actually just interested in buying your house at a big discount, or attorneys who just want to take you into bankruptcy or companies that collect a consultation fee and then do nothing for you. We work directly with experienced attorneys who will represent you to make it possible to keep your home. We are very proud of our track record of success.
Q. How do you do it?
Within 24 hours after receiving your initial information package, our legal team will contact your lender to notify them that they will be negotiating a loan modification on your behalf. Then, our attorneys will create a professional legal file on your behalf, that includes all of your financial data such as your income, assets, expenses, and unexpected intangible expenses. They couple this with a full property analysis and package this together in a file that makes it easy for the lender to read and understand, allowing for a more comprehensive and quicker response than you would get through other forms of negotiation.
Q. What makes you different from other companies?
We are one of the few companies out there that uses attorneys to negotiate on your behalf. Loss mitigation department at major banks and lenders give much more credence to modification proposals submitted by attorneys. Maybe it is fear of a lawsuit if they do not negotiate in good faith, but banks and lenders are much more responsive to attorneys than they would be with the actual homeowner or other third party negotiator.
Q. How long does it take for you to complete the case once we fill out all of the paperwork?
Anywhere from 30 days to several months. This depends on the stage of foreclosure you are in and your financial position.
Q. Is this a refinance?
No. This is not a refinance, and there are no closing costs. We negotiate with your lender to reduce your rate, and place you on a fixed term.
Q. What states can you assist?
All 50 states of the USA
Q. Do I have enough time to stop my foreclosure?
Up until the foreclosure sale occurs there is still hope. If a sale date for your house has been set you need to act fast. You're best option is to take action immediately to stop foreclosure before it goes too far.
Q. I've already talked with my lender and they just want all their money. Can you still help me?
Yes. Most of our clients have experienced this kind of inflexibility from their lenders before calling us. We get your bank to listen to your needs because they know and trust us. We have been doing this for some time. That kind of experience gives us credibility with your lender. Our integrity and professionalism have earned us a reputation that allows us to be heard when no one else can get through the red tape. We will use our experience and connections to your advantage.
Q. Do I need to have a special type of mortgage loan for you to help me?
No. We specialize in out-of-court resolutions of government and non-government mortgage delinquencies or home foreclosure claims for homeowners. These can be FHA, Rural Administration, VA, Freddie Mac, Fannie Mae, or conventional loans that have become delinquent.
Q. What if I find myself back in this predicament after my new loan modification takes effect?
In most cases, you will have a hard time working with your lender once they have agreed to modify your mortgage. This is why it's important to have experts working on your behalf so that you end up with the best, most affordable terms.
Q. What if I can no longer afford my home? Can you still help me?
Yes. If you are certain that you cannot afford your home any longer and wish to sell, we can help you to secure a short sale payoff or a deed-in lieu of foreclosure agreement with your lender. Often times these agreements can be arranged at low or no cost to you.
Q. How much does it cost?
After a quick consultation, your loan modification representative can help determine what the exact cost of your loan modification will be. The usual cost is one percent of the total amount of the mortgage to be modified. If you cannot afford to pay the whole amount at one time, we can make some kind of arrangement that will work for you.
Q. Will I have to meet with my lender or deal with any of their paperwork?
Absolutely not. We take care of all the paperwork and all of the negotiating on your behalf. Any letters, calls, etc. that you receive from your lender should be sent or referred to our attorneys.
Q. How long does the process usually take?
It can be completed in as little as five days but usually takes from 2 - 6 weeks depending on the lender, type of loan, and individual situation.
Q. What exactly happens to get my loan modified?
1. We will have our team of specialists work with you to put together a professional package that will include all the necessary documentation, paperwork, forms, and most importantly, help you write the hardship letter.
2. Then we will send you this completed package by email or fax for your signature, and you will mail it to us with the check for our services. This package is extremely important because that is what your lender will see to determine if your loan can be modified. These professionals will work closely with you to make sure nothing is left out.
3. Once we receive your package, we will send it to the processing company for further evaluation and then it will be submitted to your lender. Our processor has over 20 years of experience in negotiating with banks and lenders on behalf of homeowners like yourself. And based on the information you provided, our processor will determine the best route to go to make it possible for you to keep your home. With over 98% success rate, you can rest assured that we will do everything possible to make sure you receive the very best professional service available today.
Concurrent
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FAQ: Frequently Asked Questions