Wednesday, April 28, 2010
Bankruptcy is like creating 10 years of bad luck for yourself, and since most financial forms have a checkbox to ask if you ever declared bankruptcy you really never get away from it. It should be considered very carefully with the advice of a bankruptcy expert. Losing your home to a short sale or just giving it up to the bank is not something to be taken likely either. These decisions need careful consideration. If you are in financial trouble and just a little in the negative a loan modification is a no brainer. At least for 5 years or more you can usually significantly reduce your monthly payments and maybe even get some loan reduction to boot. Loan modification is not for everyone; but for most, it can really help in staying above water and keeping your home because in most cases it can reduce your monthly expenses and help you stave off bankruptcy. If reducing your monthly payments can get you slowly caught up with the rest of your finances and stop your drain on your credit cards to try to pay for your basic bills; then reducing one of your largest expenses which is your mortgage payment can really help you stay afloat.
Here are some typical modifications you can achieve by yourself but usually best with a loan modification expert (there are no promises or typical cases but these are achievable most of the time):
· Reduction in your monthly payment is almost always achieved and not by a little but by a great deal depending on your situation. You see the bank wants to keep you in your home because you will protect their investment better than most and they do not want to lose with a short sale that will drain them of interest profits and in today’s market incredibly potentially lose them principle.
· Reduction of your interest rates by a significant amount infrequently below 1%.
· Reduction in your principle infrequently particularly with second and third mortgages that no longer have much equity on the house and would lose everything on a short sales.
If you are upside down each month by say $200 with your mortgage payments and the rest of your bills and expenses and doing a loan modification can reduce your monthly payments on the loan including the taxes and other fees by $500 this can not only put you in the black again but give you room to start catching up with your credit card debt. Speaking of the credit card debt, this too can be helped a great deal without having to file for bankruptcy and our firm might be able to help you with this as well.
These are desperate times, but because of their desperation there are also things you can do to help you improve your chances to keep your home and live a life with pride that you are a good citizen and pay your bills and still have a little giggle room—and a loan modification may be a huge step in helping you achieve the point where you can afford to keep the house and pay for your bills. Most loan modification firms like ours have a free consultation for the initial visit so take advantage of it and talk to us how we might be able to help you keep pride in your home and your ability to provide for yourself and your family!
Thursday, March 18, 2010
Loan modification should not be complex. Really it is just a few forms to fill out and they are not even that hard, but believe me it is not the forms it is the negotiations and legal wrangling that make it hard and should be handled by a loan modification firm such as ours.
However, there are steps that you can take to start the process on your own.
1. Contact your bank, not on the phone, in writing. Banks do not have to respond or even listen to you on the phone, but written correspondence needs to be addressed by law and in a specified period of time. Always write or fax your requests.
2. When you write we suggest you hand-write your fax or letter to get more attention. It will make your plea more real and more distinctive.
3. If you have accounts with the bank you want to negotiate do not close them just drain them and put them in another bank. No sense in giving them strength by having easy access to your bank account and knowledge of your finances. They cannot tell how much you have in another bank or safety deposit box but they certainly know what you have in their bank!
4. Hire a loan modification firm such as ours to do your negotiation and protect your rights. Really the forms to start the process are easy, and even talking to the bank is easy but it is not the talking or the forms that make a difference of how much modification and loan reduction you receive; it is what you say and how you say it and how many mistakes you find in your loans that help give you power over your bank.
5. Always hire a loan modification expert that can do a loan forensic audit on your loan. You see most loans have mistakes that can make them illegal and give you a great deal of power over the bank. Can you find these mistakes yourself? Yes, unlikely you will find all of them, but many you can by just reading a few books on the subject, however, even knowing them is not enough; the skill is knowing how to use them in negotiations with your bank. Forensic loan review must be an essential part of your loan modification firm’s offers because it is a very important part of the negotiation process. So ask for them. In fact we feel so strongly about this that for those that still decide to go at it alone we offer a loan forensic audit stand alone package that finds the mistakes for you, even the often missed ones, and give you a report of the mistakes and offer specific advice on how to use them to negotiate with the bank and gain the most from them. Not all loan modification firms offer this level of service, when you hire one, make sure they do. And please do not be fooled all lawyers can catch mistakes because they know the law but some are hidden from most eyes so make sure your firm has loan professionals that know the ins and outs of the process.
6. Once you hire a loan modification firm make sure to tell them the truth, the whole truth, and nothing but the truth. Since most of the firms have a law firm associated with them, this information is protected under fiduciary laws and you need to be absolutely clear with them about your finances so they can give you the best help possible. We have had clients that have neglected to mention certain things that have put the mortgage modification deal once made in jeopardy because the bank found out about it. So be clear and open with your firm so that you can get the best results from their efforts.
You can easily start the loan modification process on your own and there are certainly plenty of books that do a great job at helping you do it on your own. However, it is unlikely that you will get as sweet a deal as an expert for it and paying an expert to get better terms is saving money if they can achieve great cost reduction than the money you paid and then the ones you could have achieved on your own. Consider that when thinking of how to proceed in your David vs. Goliath fight with the bank because the banks know about the stone and they have huge helmets to protect them!
Wednesday, February 17, 2010
Experts Agree…4 out of 5 Mortgage Loans Contain Serious State and Federal
Our own internal data and experience agrees with this expert assessment. Loans made in the boom loan years of 2000-2006 often have a great deal of RESPA (Real Estate Settlement and Procedures Act) and TILA (Truth in Lending Act) violations as well as a host of other state and federal law violations.
What do RESPA and LITA violations do for you?
Well the loan may in rare cases be considered nullified and many cases it can stop foreclosure procedures and other legal procedures against you as the loan cannot be enforced due to the violations. They may even have to refund you the interest they have charged you for the loan. Loans with these violations are not enforceable and the banks know it so you will have a great deal bargaining power when you discover these infractions. Now these are not just state laws these are federal laws which supersede state laws in many cases and are always enforceable in federal court. Since these are federal loan laws, you are very well protected by these laws anywhere in the United States and your own state may have additional laws that protect you further.
What sorts of loan Violations are possible?
There are many state and federal acts that can be violated including but not limited to:
Why would we use your independent loan forensic audit services?
- If you need assistance with your loan modification battle but feel you can do the negotiations yourself, you can use just our loan forensic review service to gain the bank insider knowledge that you cannot easily find on your own and still save money battling the banks on your own. The difference is that with our forensic loan analysis service you will have the guns to make the bank be in a weak bargaining position if errors are found on your loan. For just $799 for your first loan (if you have more than one loan then each additional loan will only cost $500 each) you will receive:
- A complete loan forensic audit of your loan
- A report showing each infraction and a short explanation of why they are infractions and from which act
- A set of specific recommendations for actions you can take to resolve the loan modification using these loan violations as a weapon.
Why would the bank listen to me when I tell them of the infractions?
The law requires them to address your complains. Also, if they bring action against you, the proven infractions can delay if not completely stall the litigation against you since illegal terms and conditions are not enforceable nor are foreclosure procedures resulting from illegal loans. Its that simple, the law clearly gives you these rights and the courts will enforce them for you! If you cannot afford our full service loan modification program or prefer to do the loan modification for your home on your own, our expert forensic loan examination will give you the upper hand with your loan audit against the bank or lending institution. For as little as $500 per loan you can gain a weapon that can potentially save thousands of dollars.
Thursday, January 21, 2010
Here is a wake up call for you. I do not say these things to scare you or put you down. I say them to wake you up to the facts. Proud people loose their shirts and literally their home in today’s economy. If you are in a mortgage that is crushing you with each day that passes and too proud to realize it you are having fools pride instead of having pride in making the right decision and taking advantage of your great opportunity for a loan refinancing. If you have to decide between gas for your car, the water bill, or the mortgage and you are already shopping at Goodwill for your clothes and other essential you are in more trouble than you think. But at least you are proud you are still paying for your home, right? Let go the pride because now you can do something to relieve your losing situation and be proud of your smarts not your stubbornness that can potentially leave you in the street. If you can barely make the payments and each month you are falling about $50 or more behind because your bills outweigh your available funds and your reserves in the form of interest killing credit cards are $3000 from being maxed out—take steps and consider a loan modification to give you breathing room. Let go your pride and focus on the one thing you know you can change with a bit of effort. Save your last $3000 in your credit card and pay a loan modification expert to give you some relief!
Thursday, January 14, 2010
There are many unspoken rules and lore about the loan modification process. There are things that professionals cannot discuss with you but that you hear through the grapevine or through experience in dealing with the banks directly. There is no help for weary out there with the banks. They are entrenched and overworked and the customer service people are overwhelmed and callused from hearing so many crushing stories of desperation from their customers.
One of the things you must know is that if you have not started defaulting on your payments, your loan modification request will go the bottom of the pile. In fact some banks will tell you flat out that you cannot do a loan modification if you are current with your payment. No wonder the system is broken. When they can get you to start the process before they start losing income, they basically encourage you to stop making payments on your loan so you can be heard, not directly but with their bad attitude and some of them telling you directly that you cannot start if you are current on your payments.
You do have a powerful tool and the law is on your side. Banks do not have to log or even pay much attention to phone calls, but they must log every paper that comes to them by law. There are laws stating the time they must handle written requests in and the procedures for doing so. Banks by law must respond to written requests. They cannot forget about them, burry them (there is always a paper trail), or ignore them and not respond—the law requires them to respond and not just respond but respond in a timely manner set forth in the law. To get your loan modification issues resolved always write or fax the bank, they must listen to you then and do it quickly or you have cause to sue them. To get your rights better protected and potentially get better terms hire a loan modification expert, it really may save you a great deal more than you pay.
Banks hate lawyers but they hate loan professionals such as mortgage brokers even more. Why? Well they can spin many lawyer’s heads with numbers and they can offer deals to them that may carry hidden fees or some obscure terms that they write into the agreement that can dramatically affect your modification is a few years. However, when loan management professionals are on the case, these little shell games banks can play are no longer available to them. Loan brokers know loans often better than most bankers because they have to know how to get them through the system, bankers often know the most common terms and laws, but brokers know them all because that is how they make things happen. It is harder to bamboozle a loan professional and there is no spinning their heads with number and making a deal sound better than it is because no one knows a deal better than a loan broker. Lawyers are necessary, without them the process might work but the legal issues might spin out of control, but to negotiate the agreement with a bank find help from an expert in loans such as myself. The lawyer will draft the final papers as it should be but the hard out fight with the bank over the terms is best done by people who speak their language.