Feed: Loan Modification Help Center – Frequently Asked Questions - AggScore: 14.0

As loan modifications have become more popular, it’s more important than ever to properly inform the public as to what the various elements surrounding loan modifications.

Q: Is a loan modification right for me?

A: A loan modification can be right for any homeowner who has a steady source of income and who is facing a serious financial challenge.

Q: Do I qualify for a loan modification?

A: Obviously it depends upon your situation.  If you contact a California loan modification attorney today, you could get more information to help you make an informed decision about your financial future.

Q: Do I need to be in default or late on my mortgage loan to get a loan modification?

A: No, loan modification standards have changed of late, and loan modifications can be negotiated for properties in default as well as current on their payments.

Q: What is forbearance?

A: Forbearance is a voluntary postponement of the foreclosure process by a lender.  A lender will refrain from foreclosure if some sort of negotiation can satisfy any overdue payments.  In most instances, unless a loan modification attorney is brought in, there is no change to the mortgage.  Forbearance is not the same as a mortgage loan modification.

Q: How are loan modifications negotiated?

A: Successful loan modifications are negotiated usually by qualified attorneys assisted by experts in various fields and other facilitators.  In this situation, a loan modification attorney will represent a homeowner in negotiating with the lender.  The loan modification attorney will attempt to convince the lender or bank that if the loan is modified the homeowner will be able to make payments and stay in the home.  Sometimes expert witnesses are used to make the case.

Q: Can I negotiate my own loan modification if I am a homeowner?

A: Yes you can.  However, without the knowledge of the industry, the law and how banks operate, you would be at a serious disadvantage.  A loan modification attorney with a qualified, experienced background understands the terminology, the history and how banks negotiate.  While you may never have negotiated a loan modification before, an experienced loan modification attorney may have negotiated hundreds, if not thousands of loan modifications successfully.

Q: What are the advantages of using a loan modification attorney?

A: There are actually quite a few benefits.  They usually get a quicker, positive response from lenders as they have the law on their side.  They also have experience dealing with the mountains of paperwork, the complex process and lenders who will do their best to negotiate a deal that benefits them and not you.

Q: What makes a loan modification acceptable to lenders?

A: In the end, your lender wants to make sure they are getting their money.  For a loan modification to be acceptable, the property owner needs to show two main facts: an obvious hardship and inability to keep making mortgage payments at the current rate; and the ability to continue paying the mortgage if payments are reduced.

Loan Modification Help Center - loan modification company - is a free gathering place for resources and information on the rapidly evolving field of loan modifications. The internet is over flowing with information on this subject with the problem being that there can be as much bad information and advice as good. For a homeowner struggling with mortgage payments and facing the possibility of foreclosure, the importance of getting straightforward information with no agenda or ulterior motive is of utmost importance. The resources we make available at Loan Modification Help Center are just what homeowners need as they seek to understand their options and get the information they need to make the critical decisions involved in a loan modification. For more information visit loanmodificationhelpcenter.org.

when applying for a home loan modification, does it really help to hire legal representation?

i've recived the information from the bank to apply for the modification of the loan, but ive also heard of a law firm who will represent my case for a fee. is it worth it to have this representation, or will i be wasting more money?

Answer
Depending on the details of your loan, and your current financial situation, an attorney may absolutely be able to help you obtain a loan modification. But what you don't want to do, is spend money upfront without having a good idea of your chance for success. It's possible that you are just not a good candidate for a loan modification - for one reason or another - and an attorney would not be able to help you. In this situation, you would have wasted your money. So the question is: how will you know? The answer is: Get a FORENSIC LOAN AUDIT and FINANCIAL ANALYSIS. You see, what most people don't understand is that a large percentage of outstanding home loans (especially sub-prime, negative amortization, and other creative loans originated between 2001 and 2007) contain violations where the loan originator, lender, or servicer violated federal or state laws. These violations could have occurred during the origination, servicing, or collection of the loan - and could have been intentional or unintentional. Even if unintentional, they are still violations. During the forensic loan audit, your loan and disclosure documents are thoroughly reviewed by experienced underwriting, fraud, and compliance professionals, who are searching for violations in the following areas: RESPA (Real Estate Settlement Procedures Act), TILA (Truth In Lending Act), ECOA (Equal Credit Opportuinity Act), HOEPA (Home Ownership Equity Protection Act), and other state laws. Any violations discovered provide additional legal leverage that can be applied by the attorney during negotiations with your lender. The Financial Analysis will give you an understanding the lender's considerations and will show you whether you are a good candidate from a purely financial standpoint. The lender must be convinced that you will be able to meet your financial obligations (including the new mortgage payment) after the loan is modified. Many loan modification companies are charging between $500 and $1,000 just to conduct this type of audit. We've found a company that will conduct the audit and do the finanical analysis absolutely FREE OF CHARGE, and with NO OBLIGATION on your part. Once the audit is complete, they will contact you with the results, and give you their professional opinion of your chance for a successful loan modification (based on extensive experience, not a story from a neighbor or brother-in-law who tried to get a loan modified). If you are a good candidate, they will refer you to a few attorneys who can help you. If you are not a good candidate, they'll tell you that as well, and the reasons why. At this point, you have the option to proceed with the loan modification by contracting with one of the referred attorneys, hire your own attorney, try to negotiate a loan modification on your own, or simply do nothing. There is really nothing to lose and potentially everything to gain by obtaining a free forensic loan audit and financial analysis. It will certainly provide you with much more useful and actionable information than you will get on an answer site. And how likely do you think it is that your lender will conduct their own internal audit and share with you violations that they may have committed on your loan? You will not get this type of legal leverage anywhere else or through any government-sponsored loan modification program. You can get more information on the free forensic loan audit and financial analysis by going to http://www.NegotiateWithMyBank.com