Home Loan Modification
Free Forensic Audit of Your Existing Home Loan
Frequently Asked Questions from Homeowners....
Direct answers from Loan Repair and Rescue, the Loan Modication company we are affiliated with.
Q. What can a loan modification do for us?
Q. What if there are no violations found in my paperwork? Can I still get a loan modification?
Q. How long to I have to act if we waited too long and are now facing foreclosure?
Q. Do I have enough time to stop my foreclosure?
Q. I'm currently in bankruptcy, can you still help?
Q. I've already talked to my lender and they just want all my money. Can you still help me?
Q. Should I file for bankruptcy to save my home?
Q. I am not yet late on my payments, can I still attempt a loan modification?
Q. What percentage of loan modification files are they able to obtain modifications on?
Q. How much will it cost for the loan modification process?
Q. What are my options if the loan modification is not successful?
Q. What can a loan modification do for us?
The goal of a loan modification is to work out an agreement between the homeowner and the lender to make the monthly mortgage payments affordable and to keep the homeowner in their home. Lenders are more likelt to respond favorably to modification requests if there are violations of State and Federal regulations discovered in your loan package., or current servicing agreement. The last thing they want is a lawsuit. If we can identify enough violations in your documents, or servicing history, the lender will have little choice but to modify the loan or face judicial litigation. back to top
Q. What if there are no violations found I my paperwork? Can I still get a loan modification?
Generally speaking, yes. If you are experiencing a hardship now and making your mortgage payments iis becoming a problem, you ahouls still consider how a loan modification will benefit you. if your loan is going to adjust soon and that, even by itself causes a hardship, it is still worth getting it done. They lenders know that if they do not work with you to keep your loan affordable, they stand a good chance of having to foreclose on you. They would much rather do a loan modification. than a foreclosure action. back to top
Q. How long do I have to think about whether a loan modification is right for me?
Honestly, you need to act as quickly as is reasonable. If your payments are too high now, or will become unmanageable when the loan adjusts, you need to act now. here is why: As of now, most lenders are open to modifing your loan to keep from having to foreclose on your home. The federal and State Governments are involved too. However, the qualifying rules change almost daily and if you qualify now for a modification that will help you. Please don't delay. It could cost you the loss of your home. back to top
Q. How long to we have to act if we waited too long and are now facing foreclosure?
Time is of the essence when you are behind on house payments and is most certainly not your friens 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 in California usually takes about 90 days. If we find violations in the Loan Audit, predatory lending, or fraud, the lenders typically stop the foreclosure in order to give their legal department time to review the case. Depending on their case load, the foreclosure could be put off to six months or longer. back to top
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. In these cases you get emergency attention from us. If need be, we will have one of our attorneys get involved to stop the foreclosure sale. Again, time is not your friend so you should act fast. back to top
Q. I'm currently in bankruptcy, can you still help?
Yes, but you will not be able to go forward with Loss Mitigation with your lender until your mortgage has been discharged or dismissed from the bankruptcy proceedings.It is advisable however to go ahead with the Forensic Loan Doc Audit. It is possible tht we may be able to find some violations that actually induced you into bankruptcy in the first place. back to top
Q. I've already already talked with my lender and they just want all their money. Can you still help me?
Yes. Many people have experienced this kind of inflexibility from their lenders before calling us. Watch how fast they sing a different tune when they know they are dealing with our experienced loss mitigation specialists. Imagine their response if indeed evidence of loan fraud, predatory lending, or servicing violations are discovered. back to top
Q. Should I file for bankruptcy to save my house?
Maybe, but not before we audit your documents. Use bankruptcy as a last resort to saving your home. back to top
Q. I am not yet late on any payments, can I still attempt a loan modification?
Absolutely! One of the falsehoods of this industry is that the lenders will not review a file until it is negative. While a person's default may make it more pressing to the lenders, they will review a file that is not uyet late. This is especially true if there are errors that come up on the forensic loan audit. Additionally, moving forward before you arelate gives you the opportunity to have your loan modified BEFORE your credit is hurt! back to top
Q. What percentage of loan modification files are they able to obtain modifications on?
87.4% after front analysis is done. Before any money is collected, an in-house review of your file is conducted. What that means is that they have attorneys preliminarily approve your file to see if your are even eligible for a loan modification. Because they are so thorough and have done this so many times, Loan Repair and Rescue has a strong understanding of what they qualify for a loan mod. back to top
Q. How much will it cost for the loan modification?
When you move forward in the process, after the free evaluation, the cost will be $3500. For the investment of $3500 you are obtaining the services of the highest caliber of legal representation. Let's compare this to the fact that it could cost you 10-12 thousand dollars to retain an attorney to represent you if you did this on your own. The legal team at Loan Repair & Rescue is going to look for every angle to save your home, whether using the results of the forensic analysis or representing your hardship emphatically. Obtaining legal counsel can greatly increase the quality of your representation and hence, increase your chances of staying in your home. If you want to stay in your home, this makes sense, doesn't it?
Let's also look at it from the perspective of the money that you will be saving once your loan is modified. We are typically able to lower the mortgage payments by 40%. Let's take the example of $2500 a month mortgage payment. After the loan modification process, this homeowner is reset to a payment of $1500. That is $1000 in savings each month.. You will have paid for the process in less than four months, but reap the benefits of your decision with hundreds of thousands of dollars in savings over the next several decades. back to top
Q. Is there a guarantee?
No, however most of the time your lenders will immediately freeze the foreclosure on your property once they becaome aware that you are pursuing a loan modification. However, if the lender does not, Loan Repair & Rescue attorneys will move to present the lender with a cease and desist letter which will force the lender to stop the foreclosure process until a decision has been made. So, in the worst case scenario you will remain in your home for another 3 months or more without making a mortgage payment. This is easily worth more than $3500. back to top
Q. My bank has already offered to do a loan modification for free. Why should I go with you when there is a charge?
Would you advise a professional athlete to have the team negotiate his contract? or, if you were involved in a lawsuit, would you like to share the same attorney as the other party that you are opposing/ Well, the same holds true here. You need someone who can identify and present your case on your behalf. Additionally, you want your loan documents reviewed to identify any current legal violations. The lender is not going to point out their own errors to you.
And, as if that isn't reason enough, the lenders may tell you that a loan modification is free, but it really is not. They will take payment from you. One of the most common methods by which they do this is to ask you to give them an amount of payment up front. This will be to make up for one or two missed payments. They will utilize these funds to pay the loss mitigation representative that worked with you on the loan modification. back to top
Q. What are my options if the loan modification is not successful?
Short Sale
A short sale is when a bank or mortgage lender agrees to discount a loan balance due to an economic hardship on the part of the homeowner. The homeowner/debtor sells the motgaged property for less than the outstanding balance of the loan, and turns over the proceeds of the sale to the lender in full satisfaction of the debt.
A Forensic Mortgage Loan Audit may be a very valuable tool for the listing agent. If the audit reveals violations in the subject property's loan, then the listing agent can use that as leverage to persuade the lender to accept the short sale.
In such instances, the lender would have the right to approve or disapprove of a proposed sale. Extenuating circumstances influence whether or not banks will discount a loan balance. These circumstances are usually related to the current real estate market climate and the individual borrower's financial situation.
A short sale typically is executed to prevent a home foreclosure. Often a bank will choose to allow a short sale if they believe it will result in a smaller financial loss thn foreclosing. For the homeowner, the advantages include avoidance of having a foreclosure on their credit history. Additionally, a short sale is typically faster, less expensive and more beneficial for the homeowner than a foreclosure.
A short sale should be conducted only if the homeowner cannot afford to remain in the property due to financial hardship and a loan modification is not an appropriate solution.
Deed In-Liew of Foreclosure
A Deed In-Lieu of Foreclosure is a deed instrument in which the homeowner conveys all interest in real property to the lender to satisfy a loan that is in default and avoid foreclosure proceedings. The deed in lieu of foreclosure offers several advantages to both the borrower and lender. The principal advantage to the borrower is that it immediately releases him/her from most or all of the personal indebtedness associated with the defaulted loan. The borrower also avoids the public notoriety of a foreclosure proceeding and may receive more generous terms than he/she would in a formal foreclosure. In some instances the borrower may receive a lump sum payment from the lender in exchange for vacating the property without issue.
advantages to the lender include a reduction in the time and cost of a foreclosure, and additional advantages if the borrower subsequently files for bankruptcy. In order to be considered a deed in lieu of foreclosure, the indebtedness must be secured by the real estate transeferred. Both sides must enter into the transaction voluntarily and in good faith.
A Deed In-Lieu of Foreclosure should be considered if the homeowner cannot Short Sale the property.
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