| The Loan Modification options provides for either a | | | | year fixed rates and I can go on and on and on. A |
| permanent change in one or more of the terms of a | | | | company in Los Angeles boasts a "Home Equity |
| mortgagor's loan, which allows a loan to be reinstated | | | | Leveling program where you pay them $1500 up front |
| and results in a payment the mortgagor can afford. | | | | for processing then 1% of the loan amount when they |
| Find out if you are eligible and the procedures by | | | | get you a huge principal reduction, with NO |
| reviewing this helpful information published by the U.S | | | | CREDENTIALS. Please! |
| Department of Housing and Urban Development. | | | | The worse I have heard was a company that tells you |
| Whether or not you are eligible under HUD guidelines, | | | | they freeze your payments for 5 months and you |
| rates and terms as well as qualifying for a loan | | | | make reduced monthly payments to them while they |
| modification are at the lenders discretion. You have | | | | negotiate with your lender. I mean, this so called |
| choices on how to go about attempting to modify your | | | | attorney backed loan modification company is getting |
| existing mortgage and you can certainly try it on your | | | | home owners to pay the ridicules monthly fees and |
| own as many do. If you would like the forms, example | | | | getting no results. Let's put it like this, just check with |
| of hardship letters along with some sound advice, | | | | the Attorney Generals Office as there has already |
| contact us and we will be more than happy to provide | | | | been cases filed against stop foreclosure and loan |
| it for free. | | | | modification companies. |
| Some homeowners that are struggling with their | | | | I am not saying that everyone's dishonest or will stop |
| mortgage payments or facing foreclosure may | | | | at nothing to get a sale; I am just saying that few are |
| choose to hire a real estate attorney or search loan | | | | operating legally or know what they're doing. Make |
| modification companies rather than going it alone due | | | | sure to do your research, ask questions, and ask to |
| to the fact an attorney may drive a more positive | | | | speak with the attorney or better yet what his name |
| result, or other avenues have failed. Navigating through | | | | is. |
| the mortgage lender's loss mitigation department can | | | | It's unfortunate that most home owners are stuck in |
| be difficult at times, similar to the stories told of the | | | | this spot in the first place that they would be taken |
| Bermuda Triangle. I mean things just disappear! | | | | again. Several loan modification companies boast the |
| Keeping in mind the lender or loan servicing company is | | | | fact that an Attorney handles the negotiation or they |
| just trying to collect a debt and make a loan perform | | | | are "Attorney backed" "Attorney Assisted". "Attorney |
| for the investor. | | | | Based" or "Our In House Attorneys". The sales people |
| Debt collections is different than loan modifications | | | | have titles like "Loan Modification Specialist",Loan |
| being that people have been collecting debt for over a | | | | Modification Expert" or "Stop Foreclosure Consultant" I |
| couple hundred years and doing loan mods for 6 | | | | find this quite amusing. |
| months . I have heard horror stories from clients just | | | | Now, I may be partial because I am an attorney and |
| trying to get through to loss mitigation departments by | | | | my law firm hires only experienced attorneys, |
| phone or worse yet once contact is made; lost faxes, | | | | paralegals and bank negotiators to handle client's files. |
| poor results, declines, unaffordable forbearance | | | | But the truth is, my staff is compassionate and knows |
| agreements, or going into foreclosure. | | | | what they're doing. They know what a loan |
| Remember...the lender is mainly trying to collect | | | | modification looks like and how to negotiate with the |
| delinquent payments, not give you 2.50% fixed for 5 | | | | lender. Better yet, you are working with a law office. |
| years on a 5.00% 30 year fixed and knock $100,000 | | | | What's a real loan modification look like? |
| of your principal loan balance. Yes, these things may | | | | It should look like a 30 year fixed rate between 5.00% |
| be possible. They are done on a case by case basis | | | | and 6.00% allowing a borrower the long term ability to |
| and must be properly negotiated to get the most | | | | pay. If that is not affordable to the client there are |
| favorable short and long term results. Hiring a qualified | | | | other options depending on the investor, who is |
| attorney is usually going to get better results. | | | | servicing the loan and the extenuating circumstances. |
| Be very careful when doing a loan modification! | | | | Modifying the terms of the existing mortgage may also |
| In many cases we have seen clients hurt themselves | | | | include a discounted rate fixed for a period of 3 to 5 |
| by telling or showing the lender certain things they | | | | years then gradually increase to a fair market fixed |
| should not. You must understand, the personnel in the | | | | rate up to 40 years. |
| loss mitigation dept. are highly trained at negotiating and | | | | A lender may also opt to reduce the principal balance |
| collecting past due mortgage payments. This is why | | | | or forgive part or all of a 2nd mortgage if presented |
| the lender will normally not consider a modification | | | | with a valid case. Basically, a real loan modification will |
| unless you are 3 or more payments behind. | | | | look like a reasonable long term solution for both |
| This is why the lender wants to see you have some | | | | parties, creating a "win-win" solution with a make sense |
| money available to send them immediately and they | | | | approach. |
| will consider a modification after 3 months of higher | | | | In certain instances lenders have lowered the interest |
| payments made on time. Unfortunately, most of the | | | | rate as low as 2.50% due to extreme hardships and |
| time we see clients have defaulted again thus causing | | | | the borrowers desire to keep their home. |
| more fees and possibly back in the foreclosure | | | | IMPORTANT NOTICE:Loan Modification Program for |
| process. | | | | Distressed Indymac Federal Mortgage Loans |
| A loan modification is a long term solution, modified | | | | Where should borrowers interested in the program call |
| forbearance agreements are designed by the lenders | | | | to apply? |
| to just get paid. Of coarse they will negotiate with you | | | | Borrowers who are delinquent or who are |
| to get caught up, requiring a portion of the arrearages | | | | experiencing financial hardship and are falling behind on |
| to be paid up front to reinstate the loan or to stop | | | | their IndyMac Federal mortgage should call |
| foreclosure. | | | | 1-800-781-7399 to speak with an IndyMac Federal |
| Be Very careful doing a loan modification with a Loan | | | | customer service representative or visit the FDIC |
| Modification Company! | | | | website. |
| There are several loan modification companies/loss | | | | You can also visit the IndyMac Federal website to get |
| mitigation companies advertising success rates, money | | | | most your questions answered. |
| back guarantees, large principal reductions, 4.50% 30 | | | | |