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Homeowners, Do Your Homework Before Choosing a Loan Modification Company |
By Paul Chavez
 A loan modification is when the lender modifies your current mortgage in order to work with you because of a hardship. This is done in an effort to 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.
In this day and time, it seems that everyone calls himself a Loan Modification Specialist. Instead of hiring companies that are loan modification "mills," borrowers should only work with companies whose licensed attorneys 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. They are not capable of helping everyone because there is not enough personnel. Many people are simply getting lost in the system and suffering an unnecessary foreclosure when they could have worked it out with their lender.
Due to a lack of knowledge and negotiating prowess, homeowers like yourself may get taken advantage of
by lenders. 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. Certainly you will get much better results than if you tried on your own.
A forensic loan doc audit should be included with every loan modification. A separate cost should not have to be paid 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.
The following should be included in a loan document audit: Review file for efficacy
b. Review file for RESPA RESPA is the Real Estate Settlement Procedures Act. violations
c. Review file for TIL (Truth-In-Lending) violations
d. Review file for Fraud
e. Review the file for violations of Predatory Lending laws.
Reviewing the loan documents is vitally important because the number of violations has a direct impact on how much leverage you have 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 commonly used strategy.
You should only work with a company that has a true 100% money back guarantee. You should not give a loan modification company any money at all if it does not offer a 100% money-back guarantee. If the company is really as good as they say they are, they should back it up in writing.
A Cease and Desist letter to your lender should also come with each loan modification. The Cease and Desist document will prohibit lenders from contacting you directly and tells the lender to contact your lawyer in your place, thereby reducing undesired stress at this trying 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. Therefore,you must be prepared to ask many questions.
To put your case together with expertise and precision, you should look for an experienced team of loss mitigation negotiators. 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.
A licensed broker, Paul Chavez, has more than ten years of experience in the real estate industry. With the combination of results, industry experience, legal representation, expert staff and 100% money back guarantee we cannot be beat by any of our competitors. It is the advantage you need when defending your most precious asset and possession. If your house payments are overwhelming you, visit us at: http://www.candacapital.com/Loan_20_Modification_20_Services.html So you can sleep soundly again, starting tonight!
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