How can you qualify for a loan modification?
How can you qualify for a loan modification that will reduce your interest rate and payments? How could a loan modification help you?
The most aggressive and successful route a homeowner in foreclosure can take is to engage the services and protection of a licensed, experienced and ethical foreclosure defense attorney.
First step a foreclosure attorney will take is to review the case and make sure the homeowner or family has the necessary hardship to explain and excuse why they fell behind in the first place.
Second, they will check and confirm to make sure the homeowner or family has consistent employment or fixed income, thus ensuring they can actually afford the mortgage in the future.
Than they will cover the following steps:
Demand a Legal Audit of your mortgage, the deed of trust, and mortgage Note: Your Foreclosure Defense Attorney will file a formal legal request that will demand the mortgage company provide a full copy of every mortgage document, deed of trust contract and agreement from the start of the loan. Every monthly payment ever made, every dollar paid towards interest, principle, taxes and homeowners insurance. This demand will also force the mortgage company and their attorneys to provide a line by line itemized list of every single late fee, late payment penalty, foreclosure fee, and attorney fee they are trying to charge.
This is important because mortgage companies have been known to sneak baseless and ridiculous amount of fees into foreclosure cases.
Upon your attorney making this legal demand the mortgage company will have 28 days to formally and legally respond to this demand. Upon receipt of this large packet of documents, an experienced and sharp foreclosure prevention attorney or law firm will audit the documentation to find any suspicious, odd, or incorrect action taken by the mortgage company, past or present. A very important aspect of this audit is to check if the mortgage was transfered from past banks to the current bank legally and correctly.
Here is what we mean by this:
Most mortgages are sold off on secondary markets, and this is a big deal when it comes to this request.
Remember Steve and Sherry? when they first purchased their home in 2012, they signed their mortgage documents and deed of trust with their local bank, let's say it was Bank of Riverdale. Well, three months later Bank of Riverdale sold the mortgage to Bank of America. Bank of Riverdale made a quick profit from this sale. 3 years later, Bank of America sold the loan to United Bank, who is currently the mortgage company that Steve and Sherry are foreclosure with.
If their foreclosure defense attorney is able to audit the loan documents and transfer of deed of trust, if he is able to pinpoints mistakes made in the sale and transfer of the mortgage between the 3 banks, Steve and Sherry have some powerful legal ammunition on their side. Any evidence of such mistakes or transfer violations will provide strength to their and your loss mitigation case. It will greatly improve the leverage you and your attorney will have in negotiating with the mortgage company.
Compare this new case, with the strong evidence of illegal mortgage transfers in the hands of their attorneys, to Steve and Sherry calling United from their cell phones on a Tuesday night from home, without a licensed and aggressive attorney challenging United Bank's threats of foreclosure!
Much different situations no?
Much different outcomes will result.
Next the foreclosure defense attorneys/law firm will contact the mortgage company’s foreclosure attorneys. Discussion about the value of the home, the benefits to and for the mortgage company in negotiating a fair and reasonable legal solution for the family, as well as the long term benefits for both sides are discussed. As long as the loss mitigation options are fair for the family in foreclosure, as well as the mortgage company long term, a reasonable legal solution is agreed. In many cases, if the homeowners interest rate and payment are above national averages at the time of discussion, they are reduced (modified on the note) to come down and match the current average. Payments and interest rates will be reduced. If the mortgage is past due a large amount, that large amount can be placed on the back of the mortgage. So for example if you bought your home in 2012, fell behind in 2018 and owe $20,000. That $20,000 is placed at the back of the loan, not due till 2048. By the time 2048 arrives, you will have refinanced or sold the home. The most important thing is to PROTECT YOUR HOME IN 2019. A sharp and experienced attorney will make sure your mortgage contract is modified in a way that protects you now and long term, and allows your family to stay in your home. In some cases your payment might even drop to match the current rates.
You may ask why would the mortgage company agree to this loss mitigation with your foreclosure defense attorney? Well, they rather just cut a deal rather than argue and legally fight with you and your attorney for months and months and years. Especially if in thier audit of the mortgage documents and deed of trust obvious violations were discovered. Remember during the time your attorney is negotiating a deal on your behalf, they will not be able to foreclose. However your attorney will not be able to simply waste time and delay the foreclosure process either, he/she will also have to legally show in good faith that your side is negotiating in good faith to come up with a resolution.
You can't just hire a foreclosure defense attorney and stay in your home for years and not pay payments. Your attorney will have to be working towards a resolution. However your home will be protected if you are acting in good faith during this time.
Long explanation short: If you want to receive the best possible result and best possible solution, you need to wise up and find the sharpest, most experienced and fair priced Foreclosure defense attorney or law firm you can find.
Common questions and responses to this:
“I can’t afford an attorney”: Well in all seriousness, if you have not been paying your mortgage for long enough to be in foreclosure, or close to it, or in default and you still can’t or won’t afford an attorney to protect your home, than you most likely can’t afford the home. Just let it go and move out.
“why do I need to hire an attorney, the mortgage company said they will help me”: Just google search your mortgage companies name and see the thousands of complaints and warnings from homeowners who have lost their homes waiting for the bank to “help them”. Don’t fall for this trap. Your mortgage company will MUCH rather talk to you alone at home on your cell phone unprotected, than deal with a licensed aggressive and sharp foreclosure defense attorney or law firm who understand the laws and your rights, and will hold the mortgage company’s feet over fire and force them to a fair negotiation.
“I don’t have the income to afford an attorney”: Most foreclosure defense attorneys or law firms provide fair and reasonable payment plans. If you still can’t afford that, than you are NOT going to be able to afford your future mortgage. No use wasting your time. Let the house go! Move out and rent!
“I’m waiting for the mortgage company to give me an answer and I’m in foreclosure”: Honest to god answer, GOOD LUCK!. They will tell you days before your home is auctioned in foreclosure sale that you didn’t send in the required documents, or that your not eligible, or you don’t make enough income or you make too much income. Just search your mortgage companies name and reputation online, see what others have said. Don’t take our word. Do your own research!
“I’m worried about being scammed or paying the wrong company”: Very valid and respectable fear. There are many honorable and respectable attorneys and law firm. Unfortunately there also some shady companies out there. You need to make sure you ONLY work with and hire a Licensed Law Firm or Attorney. Make sure they are a licensed law organization or attorney, and do your research. If they have not been in business for more than a year, do NOT work with them. Check their google profile, simply google them and see how many reviews they have, what information is on their page. Check them on better Business bureau. Check to see what testimonials they have. Typical rule of thumb is 90%. If a law firm or attorneys success rating and satisfaction rating on Google, Bing, Better Business Bureau or Facebook is above 90%, you are working with an honorable and trustable origination.
Also, pay attention to how they review and prepare your case? Every honorable and trustable attorney or law firm we have ever encountered will do their due diligence and review the case first. They will make sure they fully understand your case, your hardship, your income. Remember, a modification or foreclosure prevention is not a guarantee. It is not a right. You will need to be eligible, and qualify, and to legally argue and win your case. If someone immediately tells you that you can be helped, they are not being honest. Think about this!