Jul 28, 2009
Mortgage Loan Modification - Can You Save Your Home?
Getting a mortgage loan modification is one of the last resorts when it comes to no losing your home. The one good thing about going through the loan modification process is that you are not the only one in this boat. Over the last several years, many home owners have had to go through this and there will be many more in the future. Now that it is becoming more common to go through a mortgage modification lenders are easing up a bit on what it takes to get this done.
The first step in getting the process started is to analyze your current financial situation. If you have gone through all the steps and there is no way you can make your mortgage payment a modification may be right for you. Please realize that there are ways to cut other expenses out of your lifestyle. Ultimately, the most important financial payment each month should be your mortgage payment. If you think you need to modify, the next step is to contact a mortgage lender.
It is not difficult at all to find a mortgage loan modification lender as there are ads all over the television and Internet advertising loan modifications. Many of these ads lead to an 800 number in which you can speak to a representative. It is a good idea to go ahead and call one of the representatives just to get your feet wet to the situation. You may have no idea what is going on and they can enlighten you on some issues. Before you give them any financial information, make sure you are completely comfortable with the lender and you are willing to pay them for their services.
Congratulations on taking the first step in getting a mortgage loan modification. The research step is one of the hardest to take because you have to be honest with yourself that you are not as well off financially as you thought you were. Now that you have been honest with yourself, you need to take the next step and call a mortgage lender.
Thank you for the great informative article! I agree get your feet wet and get an idea of how much the modification firms are charging. The industry average is HIGH $3500.00 - $5000.00. Call until you find a firm with a more reasonable rate! Make sure the modification firm has its own Attorneys, Mitigation Consultants & Mitigators in house. You should have around 4 payments that you can afford. Things you can accomplish using a reputable modification firm are: SAVING YOUR HOME, a lower interest rate, payments placed on the back of the loan, conversion of adjustables to fixed rate mortgages, and possible elimination of late fees and penalties. Modification firms help homeowners who are worried about losing their home, concerned with their payments, looking at a home loan modification, behind on their payments, or in foreclosure. Last but not least protect yourself and order a Forensic Loan Audit to see if your lender violated The Truth in Lending Act or any Federal or State laws.
Before you spend even $1 on a loan modification, remember to stop the FTC web site and have a read. Modifications by third-party companies are possible, however–these companies are hired by the servicing company, not the borrower. Urban Settlement handles 100% of the loan mods and workouts for BAC. Third party loan modification service providers, whether they claim to be “backed” by a law firm or not offer no guarantees and are not permitted by federal law to offer a guarantee or specific outcome. In fact, most of what these firms offers can be done by the borrower for free. Whether or not a loan modification is available from a loan servicing company is 100% dependent on the servicing agreement between the servicing agent and the investor holding the note. For loans that are serviced by Fannie Mae, these loans can be modified or refinanced under the President’s programs, and the only delay will be the unusually high volume of requests. For loans not serviced by Fannie or Freddie, and where these loans are securitized, the Pooling and Servicing Agreement determines whether a loan can even be modified.
For some loans, a claim might be available to the borrower under federal law for violations of rights under the Truth in Lending Act during the loan’s origination or simiarly under the Real Estate Settlement and Procedures Act. Similar claims for violations may be available for actions taken by the servicing agent after the loan is closed. Remember that a statute of limitations does exist for claims made under either regulation, so an attorney should be consulted. If the statute has not expired, your attorney may be able to conduct a forensic audit for you, or he/she may be able to recommend a good forensic auditor. Compliance Ease provides software that can produce a forensic analysis for any provider of forensic audits. The price of this analysis is $25, so be sure not to pay a considerable amount for an audit.
If you’re facing foreclosure, imminent default or simply want a chance to be evaluated for a better loan payment through either a qualified refinancing program or a loan modification, before you shell out any money for a product that the vendor can not guarantee, read the FTC website, consult your attorney, and most definitely, speak with your loan servicing company.
If you call the loan servicing company, and you are not able to get a response, keep trying.
The FTC has sued many, many so-called loan modification comapnies for promising results that they simply can not guarantee, nor should they even try.
If you have questions that are not answered by reviewing the FTC site or by your own attorney, you may contact me anytime at 808-652-5605.
I do not practice law, because I am not an attorney and therefore can not give you legal advice. But I am a very seasoned finance professional, having been the decision-maker for many forbearance, loan modification or short sale requests for many years for many cases for a national servicing company and portfolio lender.