A loan modification is when the lender modifies your current mortgage in order to work with you because of a hardship. The purpose is to help make your loan more affordable. Usually it is in the form of a rate reduction and conversion of an adjustable rate mortgage (ARM) to a fixed loan, typically a 30 year fixed.
These days, it seems like everyone is purporting themselves to be a Loan Modification Specialist. Borrowers should be wary of such loan modification mills and should only work with a company who has licensed attorneys who actually do the negotiations. Most of these so-called loan modification companies have displaced mortgage loan underwriters doing the negotiations.
Lenders and servicers are very busy with desperate homeowners trying to save their homes from foreclosure. Unfortunately, they do not have the man power or the capabilities to save everyone. Many people are simply getting lost in the system and suffering an unnecessary foreclosure when they could have worked it out with their lender.
As you may have already experienced, lenders can take advantage of a homeowner's lack of knowledge and negotiating prowess. In fact, most homeowners never even reach the real decision-makers.
Homeowners oftentimes wind up settling for much less, than they could have without professional help. I can assure you that without legal representation, you will not get the same results! 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. There should be no doubt that you will achieve far better results than going it on your own.
A forensic loan doc audit should be included with every loan modification. Moreover, you should not have to pay a separate fee for a loan doc audit. A lot of companies will have you pay anywhere from $895-$1,500 just for the loan doc audit itself; then subsequently charge you $2,800 or more for the loan modification.
A loan doc audit should include the following:
a. Review file for efficacy
b. Review file for RESPA (Real Estate Settlement Procedures Act) violations
c. Review file for TIL (Truth-In-Lending) violations
d. Review file for Fraud
e. Review file for Predatory Lending violations
A loan doc audit is critical because the more violations that are discovered, the more leverage you have when negotiating with your lender.
Another common loan modification company scam is to charge a separate fee if you have a 2nd mortgage. You should never have to pay a separate fee if you have 2nd mortgage. Be wary of any company that tries to charge you to negotiate with your 2nd lender. This is a very common tactic.
You should only work with a company that has a true 100% money back guarantee. If the loan modification company you are working with does not offer you a 100% money back guarantee; run and don't look back. If the company is really as good as they say they are, they should back it up in writing.
Each loan modification should also come with a Cease and Desist letter to your lender. The Cease and Desist letter prohibits lenders from contacting you directly and instructs the lender to contact your attorney instead, thus relieving unneeded stress during this difficult time.
With all of the bad press going around concerning loan modification companies it is imperative that you do your due diligence when protecting your most precious asset and possession - your home. So, be sure to ask a lot of questions.
You should look for an experienced team of loss mitigation negotiators that put your case together with expertise and precision. They should have a full understanding of how to package your case file the way the lender expects to see it, saving valuable time and achieving near perfect results. These streamlined procedures reduce the process time, helping you end the stress of waiting for a final resolution. You also should make sure that the company has in-house attorneys who are leading experts in the field of real estate litigation and negotiations.
Author Resource:-
Paul Chavez is a California licensed Real Estate Broker with over 10 years of experience. Our combination of results, industry experience, legal representation, expert staff and 100% money-back guarantee can't be beat by any of our competitors. If your house payments are overwhelming you, visit us at C & A Capital and Realty Services, Inc. So you can sleep soundly again, starting tonight!
The Free Ride In Public Schools 27 Nov 2008 at 11:28am
Why should public-school students bother doing homework or studying hard if they advance to the next grade no matter how bad they do in class? That would be dumb, and these kids are not dumb. Punishing the Victim -- Why Public Schools Pressure Parents To Give Their Kid... 27 Nov 2008 at 11:28am
It is normal for bright, energetic kids to be bored in public school. To solve the problem of "unruly" children, public schools now pressure parents to give their kids potentially dangerous mind-altering drugs. The Graceful Art of Defrazzling - For Mothers 27 Nov 2008 at 11:28am
An introduction to a "defrazzled" method of surviving life as a mother
If you are interested in learning about and discussing social services and social services agency management, please visit SocialServicesAgencyManagement.com where you will also learn about the new ecological model of excellence.
![[Valid RSS feed]](http://www.LeadershipVillage.com/images/icon_Rss.png "XML Feed For RSS"){kind=icon}
Category Rss Feed
Print This Article
Add To Favorites
