What Is A 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.

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How do you do It?

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 foreclosing on the home, hiring a listing agent, rehabilitating a home, and letting it sit empty on the market for months, only to lose thousands in the process.

We currently work with almost every major lender and several small lenders and banks to secure a loan modification to help them help you. In many cases we actually have taught smaller banks and lenders how to go about completing a loan modification.

Within 24 hours after receiving your package, our legal team will contact your lender to notify them that they will be negotiating a loan modification on your behalf.  From then on, they will be working with you and your lender in order to find a solution to your mortgage problems.

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Are lenders and banks really willing to negotiate?

Definitely.  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.



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.



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.

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Why should I choose a loan modification?

If you are having trouble and behind on your payments you have several different options to fix your problem.

Reinstatement Plan - Where your lender will reinstate the original terms of your loan once you are caught up.

Repayment Plan - Where your lender will tack on an extra amount onto each payment for a set period of time.

Loan Modification - Where you negotiate a restructure of your current loan terms without refinancing.

Loan Refinance - Refinancing may be an option if you have the equity and credit required.

Forbearance Agreement - Where your lender negotiates a repayment plan and may force you to list your home for sale.

Short Sale - Where you sell your property for less than you owe but your lender accepts it as payment in full.

Pre-Foreclosure Sale - You agree to sell your property before foreclosure takes place. (requires equity)

Deed-in-Lieu of Foreclosure - You agree to sign your property back over to your bank and walk away.

Bankruptcy - You have to file bankruptcy to protect yourself, but if you miss one payment you will be right back in foreclosure.

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.

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Can I negotiate a loan modification myself?

In short, yes you can.  You can contact your lender or your bank and see about going through the process of loan modification.  But, keep in mind that your bank has their best interest at heart.  They neither have the time nor the inclination to hear about what troubles you might be experiencing. 

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.

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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.  One that includes all of your financial data including 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.

I've spoken to my lender and they just want all their money.  Can you still help?

Yes.  Many of our clients have experienced this same kind of inflexibility from their lender before calling us.  You're bank is going to try to put you into something that will benefit them first and put your needs last. 

Our staff has years of experience working with a variety of lenders and banks and we have the credibility and reputation to work with even the toughest lenders.  We have direct contacts with most lenders and banks and we are always taken seriously.

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How much does it cost?

The costs associated with an attorney based loan modification will vary depending on the value of your property, the type of loan, the lender, and the number of loans held against your property.  The modification cost usually comes close to equaling the same as about one month's mortgage payment.

Since every loan modification is different, it requires a varied amount of negotiation.  After a quick consultation, your loan modification representative can help determine what the exact cost of your loan modification will be.

Our primary goal is helping homeowners who want to keep their homes, find a beneficial solution for their situation.  We will work with you to ensure that we can obtain an affordable solution for your loan modification needs.

What do you need from me to get started?

If our attorneys believe they can help you then they will need some basic information about your current financial situation.  This will better allow them to make an evaluation of just how they can help.

They will contact you in order to gather some of your paperwork required in order to negotiate a successful loan modification.

They will also determine the current value of your property and put together a professional proposal for your lender.

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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.

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.

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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.



What paperwork do I need to complete the process?

1) Client Authorization Form
2) Your most current month's mortgage coupons
3) Any other correspondence sent to you by your mortgage company
4) Your payment information

After we receive these items from you, we can begin your loan modification process.

Please contact us with any other questions or concerns.  Remember that time is not on your side, so if you are having problems or struggling to keep up with rising mortgage payments, don't delay and call us immediately for a free and confidential consultation.

We want to help you keep your home. Period.

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