How To Choose A Foreclosure And Mortgage Modification Company

Find a Loss Mitigation Expert Here!

Homeowners who are confronting the reality of a foreclosure have become food for mortgage brokers, loss mitigation or loan modification companies. Many new companies who contact you say they are foreclosure consultants or many other terms. They just pop up and get your contact information from title records or other means. It is very important to use a debt settlement company that has an actual state licensed attorney on the premises. There have been many instances of borrowers who are already in dire need getting scammed for promises the sales man can’t keep. Moreover, be certain that the attorney for the company practices mainly in real estate and not family law or other areas.

Most attorney backed companies will provide the applicant with a forensic loan document review whereby they analyze the loan’s closing statement, HUD1 settlement, loan application for any Truth in lending Violations or Predatory lending violations. And if there are some errors found (small or large), there is an 80 to 90% chance your terms will be changed with the lender. The fraud by lenders has been abundant for borrowers who have lower credit scores.

What is a Loss Mitigation Company

Statistics show that non-attorney backed loan modification companies end up providing nil for their clients and they cannot offer the client any legal protection due to the delays. In these types of situations, borrowers are caught being too late and lose their home through foreclosure along with their credit. It becomes a double-edge knife in their back.

Therefore, it cannot be stressed enough that you when go with a mortgage modification company you should work with one that has track record and the proper experienced people on staff who will work with assist you in stopping foreclosure and/or changing your mortgage terms such as rate, payment and the loan balance. Attorneys who are stated licensed must adhere to a strict code of conduct and higher ethical standards, and while they are not able to guarantee a successful result for your case, they are more than likely to accept it if they consider after evaluation there is a large opportunity to get you a positive result.

By: Frank65

Article Directory: http://www.articledashboard.com

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Frank Collins is an expert on Real Estate, Mortgage, Credit, and Automotive topics. He currently writes for various online mortgage sites and loan modification attorneys on homeowner educational topics. Use a Mortgage Modification Attorney in California or a New York Real Estate Lawyer who serves all 50 states.

Example Loan Modifcation Hardship Letter

(Example Harship Letter)

To Whom It May Concern:

I am writing this letter to explain my unfortunate set of circumstances that have caused us to become delinquent on our mortgage. We have done everything in our power to make ends meet but unfortunately we have fallen short and would like you to consider working with us to modify our loan. Our number one goal is to keep our home and we would really appreciate the opportunity to do that.

The main reason that caused us to be late is (insert reason here and don’t be too lengthy and long winded) Soon after being late and our income not being nearly enough, we had fallen further and further behind. Now, it’s to the point where we cannot afford to pay what is owed to (lender). It is our full intention to pay what we owe. But at this time we have exhausted all of our income and resources so we are turning to you for help.

Our situation has got better because (reason here) and we feel that a loan modification would benefit us both. We would appreciate if you can work with us to lower or delinquent amount owed and or payment so we can keep our home and also afford to make amends with your firm.

We truly hope that you will consider working with us and we are anxious to get this settled so we all can move on.

Sincerely and Respectfully,

Mr. & Mrs. ___________________
Signature_____________________
Loan # ______________________
Address______________________
Phone________________________

Hardship Letter Contributed by a Forum Member
September 7, 2007
To: Countrywide Mortgage account # 058989482

Re: Mortgage modification program

Due to the recent adjustment to the mortgage I currently have with your company, I am finding it very difficult to afford the new payment. I have a 3 year fixed rate which is now adjustable and is schedule to adjust again in Feb. 2008.

Considering my current income, there will be no way I can afford the increased payments come February. Hopefully there is way to renegotiate the terms of my current mortgage to avoid default or foreclosure on my home.

Is it possible to have my current adjustable rate mortgage converted to a fixed rate? If this is not possible can the next rate change be postponed to a future date to allow me to hopefully refinance. Any other solutions you could provide would be greatly appreciated.

I have had no problem making my payments for over three years now and do not want that to change. My mortgage was originally written by another company and bought by Countrywide. The original mortgage terms are terrible but it was the only loan I was qualified for at the time. I was assured that refinancing would be no problem but that turned out not to be true due to the downturn of the housing industry.

The main problem is that my property is now worth about 5-10% less than what I paid for it which is preventing me from being able to refinance. I was researching on the internet and came across the Fannie Mae Announcement #06-18 (Oct. 4th 2006) regarding the servicing of Conventional Mortgage Modifications.

I believe this addresses the situation I currently find myself in along with many other homeowners. Attached are recent pay stubs showing my current income.

thanks you for your time and consideration.

By: Moe Bedard

Article Directory: http://www.articledashboard.com

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Moe Bedard is one of the country’s leading experts on homeowner loss mitigation, loan modifications, foreclosure prevention services, mortgage law, predatory lending and issues dealing with the mortgage and housing crisis. Please visit his consumer advocate and homeowner education websites @ www.LoanSafe.org – Protecting America’s Homeowners – Stop Foreclosure www.LoanWorkout.org – Loan Modification and Loss Mitigation News www.PredatoryLendingLaw.org – Predatory Lending & Mortgage Law Moe’s Contact Info: Direct 951-271-6283 Fax 800-734-8819 Email Moe@LoanSafe.org

Why Do Lenders Prefer A Loan Modification Over A Foreclosure?

Lenders are known to be difficult when it comes to loan modifications. But did you know that they benefit at least as much from the process as you do? The main reason they balk at mortgage modification is that they have to train agents to handle them, and each case requires individual attention. But it also saves them a good deal of time compared to foreclosure, and may even have a few long-term benefits. Here are some good reasons why your lender might prefer a loan modification over a foreclosure.

It’s faster and cheaper. In a foreclosure, there are specific wait times that allow the borrower to get current with their mortgage. It’s not uncommon for the process to drag on for almost a year. These delays can cost your lender a good deal of money. A loan modification, on the other hand, takes an average of 30 to 60 days. All they have to do is go over your documents, talk to your loan modification attorney, and see if you qualify. The negotiations are the hardest part, but they don’t cost quite as much as foreclosure expenses.

It’s less work. To start the foreclosure process, your lender will have to assess late charges, file a Notice of Default, pay heavy lawyer fees, and arrange an auction to sell your home. And if you manage to get back on track and stop foreclosure, all the work simply gets filed away. Loan modifications involve less work on their part. You and your loan modification attorney will do most of the work and provide most of the documentation. Often, all they have to do is assess your case and decide what kind of mortgage assistance you will need.

It helps keep investors. Foreclosures are as damaging to your lender as they are to you. It may benefit them for now, but with the recent housing bubble, it will eventually weigh them down. Investors don’t want to deal with banks that have too many foreclosures on record. If they grant you a loan modification instead, your payments will keep showing up on their records instead of being written as bad debt.

Of course, this doesn’t make it any easier to get what you want from your lender. After all, you’re still a liabilityand it’s important to prove that you can get back on your feet. To get the best loan modification deal, you need a good Loan Modification Lawyer who knows the what lenders need and can convince them that it’s the wiser choice to settle a loan modification.

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By: The Loan Modification Department

Article Directory: http://www.articledashboard.com

Loan Modification Myths And Facts

Loan Modification has become the solution of choice for people facing unaffordable mortgages and foreclosure, but as the market for mortgage assistance grows, the number of misinformed homeowners is also rising steadily. A lot of people enter loan modifications with serious misconceptions, and end up making the wrong decisions, based on inaccurate information.

So how do you tell fact from fiction? Can a loan modification really stop foreclosure and solve all your mortgage problems? This guide shows you some of the most common myths about loan modification, and the truth behind them.

Myth #1: You can do it on your own.

Technically, you canbut it takes a lot more work and the results probably won’t be the same. Loss Mitigation is one of a bank’s busiest departments; a typical loss mitigation officer can handle as many as 800 cases at a time.

These people are over whelmed and do not have time to deal with your problem adequately. It’s not uncommon to be passed from one agent to another, and never get any real answers.

A loan modification attorney, on the other hand, can talk directly to your lender, and use significant leverage to get your file to the top of the agents’s stack. When a lawyer represents you, the calls get returned faster, you get more personalized service, and you gain the capability to actually obtain the type of loan you can need.

Myth #2: Your lender would rather foreclose than modify your loan.

In some cases, foreclosure is the more practical option. But according to a Tower Group study, lenders lose substantial money with every foreclosure, and are required to increase their reserves in addition. The banks already own too many foreclosure properties and have too many non-performing loans on their books. They would much prefer to adjust your mortgage to something affordable and convert your loan into a performing asset. Don’t be intimidated by threats of foreclosure.

Myth #3: You can’t stop the foreclosure process.

It’s true that your chances dwindle the longer you wait, but until your home is auctioned off, no one can really kick you out. A loan modification can stop the process as close as seven days before the sale date. This buys you enough time to get back on your feet while your lawyers work out a better arrangement with your lender. Of course, it’s always better if you take steps early on.

Myth #4: It’s an instant solution to mortgage problems.

Loan modifications really work, but they take time, the right expertise, and money. Depending on how far behind you are, the process can take anywhere from one to three months. But since it stops the foreclosure process, you won’t have to worry about losing your home while the modification is under way. If you submit your paperwork on time and cooperate with your lawyer, you can speed up the process and avoid complications.

Myth #5: You need good credit to qualify.

Standard requirements vary from lender to lender, but the bottom line is that the loan modification should make financial sense to your bank. Your credit rating doesn’t have anything to do with it. Your lender will want proof that falling behind was a temporary snag, and that you can afford to stay on track if they do modify your loan. This means you have to have a job and a valid proof of hardship. You don’t need to disclose your credit rating in most circumstances

Myth #6: Loan Modification companies are scams. Companies take your money, but don’t really do any thing.

In any business there are always some unscrupulous people, but you can find legitimate organizations that will help you. The important idea in loan modification is to work only with an experienced and knowledgeable law firm or attorney who has a track record of success. You should thoroughly check on the background of anyone who claims to be able to do a loan modification before you spend your money.

To get in touch with a good loan modification attorney you may call 800.738.1170 or visit http://www.cdloanmod.com

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By: Loan Modification Attorney

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The Loan Modification Department is composed of a team of attorneys, mortgage and real estate professionals, and hardship analysts.
For more information about Loan Modification go through the Loan Modification FAQs

Alternatives To Foreclosure: How Can I Avoid Foreclousre?

The thought of foreclosure is enough to send any homeowner into a panic. But contrary to belief, starting the foreclosure process does mean your at a dead end. From the day you receive your Notice of Default, you always have options, and the earlier you act, the easier it is to get back on track.

The two most common ways to stop foreclosure are a short sale and a loan modification. Both have their own pros and cons, and it’s important to choose the right path based on your situation depending on if you plan to keep or sell your home. This guide shows you both options and how they can help.

Option 1: Loan modification

The main advantage of loan modification is that you get to keep your home and continue your mortgage on more comfortable terms. It works by changing your mortgage terms to lower your monthly payments, allowing you to afford making your monthly payments again. This option is best for homeowners who have good payment habits but fell behind because of unavoidable hardship.

How it works

In a loan modification, you work with a lawyer who will basically guide you through the application. Your loan modification attorney will start by evaluating your case and deciding whether or not a mortgage modification will work for you. It’s important to talk to a good loan modification attorney who can completely understand your situation.

Once you’re qualified, they’ll ask for a few financial documents complete your negotiation package. These usually include proof of income (pay stubs, W2 forms, etc), bank statements, and a hardship letter explaining your request and how you fell behind. They’ll go over your documents to see if there are any legal violations (RESPA and TILA) that can be used as leverage.

After that, your application is submitted and your lawyer begins negotiations. This is the main part of the loan modification process. The wait time depends on how your bank responds and whether they make a reasonable offer. Your lawyer will keep negotiating until you reach the best loan modification agreement with your lender.

Finally, a loan modification offer is sent to you for approval. The change can be an extension of your loan term, a shift from adjustable to fixed rate, a lower interest rate, or a reduction of principal. It all depends on your situation and how well your lawyer can negotiate.

How to qualify

Anyone in financial trouble can qualify for a loan modification. However, each lender has its own standards, and you may want to check with yours to see if you’re eligible. In most cases, you’ll need at least a source of income and valid proof of your hardship. Examples of acceptable hardship include job loss, illness or death in the family, and military service. You’ll need to explain this in detail in your hardship letter so that your bank can fully understand your case.

They’ll also look into your financial documents to see if you can handle your loan once it’s modified. It’s best to have at least two months’ payment saved up by the time you’re approved, and an emergency fund to cover up in case you fall behind again.

Option 2: Short sale

A short sale is when you sell your home and your bank agrees to receive the proceeds, even if it’s less than the amount owed on the loan. The drawback is that you still lose your home, and your lender can give you a tight time frame in which to find a buyer. A short sale is still damaging to your credit, but it’s easier to clean up than a foreclosure which stays on record for up to ten years.

How it works

The short sale process starts when you contact your lender and make your proposal. You may want to contact a lawyer beforehand to help you talk to your lender, and help you map out your selling plan. Once your lender has agreed to the sale, you will issue a letter authorizing them to release information about your mortgage and property to investors or potential buyers.

The details are presented in a document called a settlement statement. This includes the proposed selling price, remaining balance on the mortgage, and all associated expenses such as commissions and closing costs.

As with a loan modification, you will also need a hardship letter explaining your situation and what kind of mortgage assistance you want. Your bank will verify your claims using standard financial documents, which you will also provide. When you’ve been properly assessed, your lender will contact a third party (usually a broker) to examine your home and verify its market value.

Once you find a buyer, the short sale takes place and the proceeds go to your lender. The rest of the loan is written off, so effectively you’re getting a discount. Note that the savings can be taxable. Check with a lawyer and accountant to see if there are any liabilities.

How to qualify

The requirements for a short sale can vary from lender to lender. Most of them have to do with your type of hardship and the market value of your home. Before applying, check your local listings to see if your home’s market value has dropped. It should be worth less than the balance you owe your lender. You should also have a valid hardship that can be verified in your financial documents.

By: The Loan Modification Department

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The Loan Modification Department is composed of a team of attorneys, mortgage and real estate professionals, and hardship analysts. Our lead attorney is Christian M. Dillon, an experienced lawyer specializing in loan modifications and RESPA and TILA violation cases.
For a Free consultation talk to our Loan Modification Lawyer or go through the Loan Modification FAQs