What Can A Loan Modification Attorney Do For Me?

Finding yourself at the mercy of a mortgage company that wishes to foreclose upon your home is never a good situation. Working with customer service reps at various companies can often be frustrating and pointless. It seems that each person you speak with may provide a different answer and outcome to your individual situation. You waste time and energy getting nowhere, while the time for handling the crisis is quickly running out. You know that you need a loan modification to save your home, but you do not know how to accomplish this important task.

A loan modification attorney could be your answer. Attorneys, who are qualified to deal with mortgage companies and experienced enough to know the tricks of the trade, could help you save your home. A loan modification can make the difference between keeping your beloved home and being forced into an apartment, or worse.

A loan modification attorney can assist you in dealing with the mortgage company. They can ensure that all the paperwork is processed properly and on time. They can assist you in making sure the repayment plan is one you can easily afford and still keep your home.

Loan modifications could be the only way to lower your monthly payment, bring your mortgage into current status again and lower your interest rate. When you use the services of a loan modification attorney you may also be able to have some of the interest payments waived, roll over past due payments to the end of the loan and, possibly, reduce the amount of your overall debt. These are things that can be done, when handled by a professional.

Attorneys are trained negotiators. They know and understand the rights of their clients and will push the mortgage companies to comply with these rights. The mortgage company has the ability to renegotiate a mortgage. However, they may encourage their service representatives to pass up on negotiations and head straight for foreclosure.

A loan modification attorney could help you at a time when you are most vulnerable. An economy that is not quite stable brings about hardships in many forms. All too often, people who would not normally be in this situation, find themselves about to lose their homes. Many of these foreclosures could have been avoided had the home owners utilized an attorney and the loan modification program.

If you have found yourself in this predicament, there is help available. Loan modification attorneys could help you save your home.

Prepare a Winning Loan Modification Application

Loan modification has no doubt won its place as the best way to avoid foreclosure and get one’s mortgage back on track. But the fact is that not every loan modification application gets approved, and even completing the paperwork may not be enough to qualify. At the end of the day, it’s a question of whether or not a loan modification will make financial sense to the lender, rather than what’s best for you.

But that doesn’t mean your loan modification application is out of your hands. Below are some steps you can take to ensure a successful application with your bank.

Start early.
Before the program was popularized, borrowers typically had to be at least 90 days in default to apply for a loan modification. However, with new government policies, anyone can now submit a loan modification application, even if their mortgage is current. As soon as you start having difficulty making ends meet, call up your lender and ask about your options. That way, you can start finding solutions before it gets too complicated.

Do your research.
Most loans today are either owned by one lender or converted into mortgage-backed securities, which are basically “pieces” of the mortgage distributed between several investors. Mortgages that fall under the latter are harder to modify because there are more parties concerned, each of which has to approve the loan modification application. Find out who owns your mortgage by calling your bank or looking it up on government websites.

Write a convincing letter.
The hardship letter is one of the main requirements in a loan modification application. It’s where you explain to your lender how you fell behind and convince them that you can stay current once the loan is modified. Make sure to keep everything factual—you can appeal to emotion by drawing attention to certain details, but you can’t exaggerate or twist the facts. Most importantly, keep it brief but detailed—too short and you can’t really explain much; too long and the agent won’t even want to read it.

Work with the pros.
If you’re not sure you can do it yourself, consider hiring a loan modification attorney. He or she can help you make quicker contact with the lender, prepare your loan modification application, and give you advice on staying on track once your loan is modified. It may cost more at the outset, but the assurance and convenience it offers can be well worth your money.

Loan Modification Options for California Homeowners

Millions of homeowners have applied for and gotten loan modifications in the past year, mostly as a result of the Obama administration's loan modification program. But efficient as it is, few homeowners are aware that loan modification takes on many forms--and that each one suits a different kind of borrower. If you're working with a loan modification attorney California firm, it helps to know at least some of your options. Below are some of the most common forms of loan modification and how they can help you.

Interest rate reduction: This is the most common solution and often the primary approach of a loan modification attorney California. As the name implies, the lender simply cuts down your interest rate. To give you an idea of what it does, cutting the rate from 6% to 3% on a 30-year fixed-rate mortgage can reduce monthly payments by about 30%.

Loan term extension: A lender may also decide to extend the loan term rather than reduce the interest rate. They are generally more expensive for the lender and are thus given only in special cases, often when a sub-prime adjustable-rate mortgage reverts to the regular rate. Extending a 30-year mortgage to 40 years cuts down monthly costs by about 8%.

Financing of arrears: If a borrower has accumulated a large amount of late fees, the lender may decide to add them to the loan balance instead of charge them up front. This will make the payments temporarily higher, so it usually doesn't work for most borrowers. However, this is often a bank's first offer because it costs them less than most types.

Interest rate freeze: This plan is generally designed for people who have adjustable-rate mortgages where the introductory period is nearing its end. Before the interest rate jumps to twice the current rate or more, the lender "freezes" it so that it stays affordable. This costs more for the bank, however, so it takes a good deal of negotiation to get approved.

Principal reduction: Under this plan, the lender simply forgives part of the amount owed on the home. This generally makes the most savings for the borrower, but constitutes the biggest loss for the lender. To get a principal reduction, one may need a loan modification attorney California with specific experience to justify his cause.

Remember, not every plan works for every borrower, and sometimes one is simply better off with a different solution. To help you better understand your options, find a competent California Loan Modification Attorney and start working on your loan modification today.

Premier Home Loan Modification Attorney Launches Complete Loss Mitigation Services

CDLoanMod.com, premier loan modification attorney firm announces the launch of a complete home loan modification package designed specifically for homeowners in need of mortgage help.

Homeowners looking to take advantage of the government's Home Affordable loan modification program can now turn to CDLoanmod.com, a premier loss mitigation company specializing in mortgage assistance and foreclosure prevention. The California-based firm now offers a complete loss mitigation service designed specifically for homeowners in need of mortgage help.

CDLoanmod.com offers a step-by-step guide to home loan modification, starting with a free consultation where experts assess the borrower's situation and determine his or her financial needs. The first step is usually determining whether or not a mortgage loan modification is really the best choice, as some homeowners are better off with short sales or other forms of loss mitigation. ....

Details Here: Premier Home Loan Modification Attorney Launches Complete Loss Mitigation Services

Tips to Get The Best Home Loan Modification Deal

Start early.
In the past, only people who were seriously delinquent or already foreclosure could get home loan modifications. However, lenders have become more lenient as government support gave them more incentive to modify loans. Starting early shows the lender that you’re responsible and determined enough to keep your mortgage on track.

Get professional help.
You may be tempted to handle the loan modification on your own to save money, but getting help from the pros can give you a serious advantage. A loan modification attorney or representative can get you in touch with the right department, help you gather the right documents, and plan your application according to your lender’s policies.

Do your research.
Most loans today are either owned by one bank or shared by many as mortgage-backed securities. Generally, sliced-up loans are harder to modify because there’s more than one entity with an interest on the loan. Find out who owns your loan by calling your lender or checking government sites like Fannie Mae or Freddie Mac.

Provide accurate information.
One of the first requirements for a home loan modification program is a hardship letter. Here, you explain why you fell behind and how you plan to get back on your feet. Lenders will need to verify all your claims, so don’t try to embellish your story. As much as possible, back it up with documents such as pay stubs, tax forms, and bank statements.

Set realistic goals.
Many lenders will offer new terms that are only slightly better than your current one. Don’t settle for a less-than-ideal deal out of desperation. A good loan modification attorney can help you negotiate more effectively and get a home loan modification program that makes financial sense for both you and your bank.

5 Tips Every Loan Modification Firm Talks About

Author: Loan Modification Attorney

Here’s a list of loan modification do’s and don’ts to help you avoid common pitfalls.

Do know your rights.
More than 80% of mortgage contracts violate one or more lending laws—and most of them go unnoticed. But these violations can be your biggest weapon in the loan modification process. They can give you the leverage you need to negotiate with your lender and stop foreclosure. Your loan modification attorney can help you understand your rights and use them to get the results you want.

Don’t wait too long.


The foreclosure process is designed so that you have time to get back on your feet and save your home. But that doesn’t mean it’s safe to procrastinate. The longer you wait, the harder it gets to get you out of that fix. As soon as you decide you need mortgage help, call for a loan modification help and get started.


Do work with your lawyer.
Your Home Loan Modification doesn’t rest in the hands of your lender, your broker, or your loan modification attorney. These people can help, but you have to do your part and cooperate with your lawyer. Make sure to submit your paperwork on time, answer questions honestly, and give them a clear picture of your financial situation.

Don’t file for bankruptcy, unless you really have to.
Many people think that filing for bankruptcy can help them stop foreclosure. But data from the American Bar Association shows that it doesn’t work that way. In fact, 96% of the people who file bankruptcy end up losing their homes anyway—so they’re left with a foreclosure AND a bankruptcy on their records. In some cases, bankruptcy is still a viable option, but don’t make any decisions without getting professional advice.


Do have a backup plan.
Not all people will qualify for a mortgage loan modification. Maybe you’ve fallen too far behind, your lender may be simply hard to work with, or maybe you don’t need it after all. In any case, it’s always good to have a Plan B. Your mortgage modification attorney can help you find the best solution.

If you can’t get your loan modified, talk to your lawyer about a short sale. This involves selling your home for less than its fair market value and giving the proceeds to your lender. Although you still lose your home, it’s not as damaging to your credit as foreclosure, so it’s easier to get back on your feet.

Article Source: http://www.articlesbase.com/mortgage-articles/5-tips-every-loan-modification-firm-talks-about-702150.html

About the Author:
The Loan Modification Firm has all the experience and knowledge that is needed to get the job done. The Loan Modification Attorney can be reached at Law Offices of Marc R. Tow Just Call 800-738-1170 or visit Home Loan Modification
For a Free consultation talk to our Loan Modification Lawyer or go through the Loan Modification FAQs

What is Predatory Lending?

Author: CDLoanmod

Predatory Lending is a practice wherein a lender forces you into abusive or unfair lending terms. This can be in the form of high interest rates, unreasonable penalties, and hidden fees that aren’t part of the mortgage contract. Often, the contract is written out so that it’s all but impossible for the borrower to get out of it, even when it puts them under financial stress. In fact, studies show that most of today’s foreclosures and defaults can be traced to some form of predatory lending.

How do I know I’m a victim?

Many predatory mortgages are so subtle that the borrower doesn’t know it—until things get out of hand and they’re facing foreclosure. But the earlier you take action, the faster you can set things right. Here are some signs that tell you if you’re on the losing end of the deal.

• Excessive fees. Some fees can be financed but are not directly affected by the interest rate. This makes them easy to disguise or manipulate. Fees below 1% of your loan amount are usually no cause for concern, but if they add up to more than 5%, you should get suspicious. 
  
• Prepayment penalties. It’s common for lenders to charge you a penalty if you pay off your loan in advance. This is to make up for the interest they lose by letting you off early. The penalty is considered abusive if it’s effective for more than three years or is worth more than six months of interest.
• Yield Spread Premiums. This is a fancy name for the kickbacks your lender pays a broker to steer you into a high-interest or sub-prime loan. If you see this term on your bill, you’re probably paying more interest than is legally acceptable.
• Refinancing offers. If your lender offers you a tempting refinance package, think twice about it. It may be a form of loan flipping, a practice they use to generate income without giving you any tangible benefits. In the long term, the refinance can simply drain your equity and increase your monthly payments.
• Mandatory arbitration. This is one of the most common predatory practices. Mandatory arbitration is a provision in many contracts that bans you from going to court if you find the terms abusive. You’re basically being denied of your rights to justice.

What are my rights?

Most cases of predatory lending violate the Real Estate Settlement Procedures Act (RESPA) and the Truth in Lending Act (TILA). These laws were put in place to protect borrowers like you, but lenders continue to violate them every day and trick millions of people out of their money. The best way to protect yourself is to know these laws and the rights they give you.


For one thing, you always have the right to speak up whenever you feel you’re being cheated. Sometimes it’s as simple as calling your lender and asking them to explain vague or overly high charges. They may or may not give a useful answer, but it’s important to let them know you’re not being fooled.


Even if you’re already in foreclosure, there are always steps you can take to correct the situation and save your home. Find a competent lawyer to help you out and look for RESPA and TILA violations in your contract. In most cases, the laws can help stop foreclosure and even give pay you back in damages.


What can I do?

If predatory lending has put you in serious financial trouble, one thing you can do is apply for a loan modification. This is a simple way to restructure the terms of your loan into something more reasonable and helps you stop foreclosure. All you need to do is call a loan modification attorney, a person who specializes in talking to lenders and negotiating for proper mortgage assistance.

You will have to provide some documents so that they can properly assess your case, including a hardship letter that explains your situation. Your Loan modification attorney can use violations to negotiate better settlements with your lender. These may include misleading disclosures, exorbitant fees, or any of the signs mentioned above. Nearly every mortgage has at least one violation, but it takes a good understanding of the law to point them out.

After submitting your application, your attorney will start negotiating for better rates. When needed, they will use RESPA and TILA violations as leverage for getting the best loan modification offers. When it’s approved, you’ll receive a document detailing the mortgage modification, whether it’s a a lower interest rate, or some form of mortgage assistance. Once you approve it, you can keep your home and start paying off your mortgage at a comfortable pace.
About the Author:
The Loan Modification Department is composed of a team of attorneys, mortgage and real estate professionals, and hardship analysts. Our lead attorney is Christian M. Dillon, an experienced lawyer specializing in loan modifications and RESPA and TILA violation cases.
For a Free consultation talk to our Loan Modification Lawyer or go through the Loan Modification FAQs

Article Source: ArticlesBase.com - What is Predatory Lending?

How to Avoid Home Loan Modification Scams?

Home loan modification is easily one of the best ways to save one's home and avoid foreclosure. But as more and more homeowners fall into default, more and more scams have also turned up. And when you’re on the verge of losing your home, the last thing you want is some fake firm who tricks you out of your money. That's why it's important to stay on guard, watch out for suspicious business, and work only with experienced professionals. This guide offers a few tips on avoiding home loan modification scams and finding the right people to help you out.

Look them up.
The Better Business Bureau (BBB) provides a list of legitimate companies and their ratings, whether or not they are signed up. If you're dealing with a loan modification attorney, the Bar Association can also be a good resource. Ask for client references and make a few calls to see what previous clients think of the company.

Don't pay upfront fees.
Upfront fees are the first sign of a loan modification scam. Some companies have been known to charge upwards of $7,000 upon initial consultation, before reviewing your file and without a guarantee of even starting the process. Don't be fooled by companies that try to "scare" you into paying up immediately.

Know their process.
At the outset, ask how the company handles loan modifications. The home loan modification process varies from case to case, and a good loan modification attorney will have a backup plan for every possibility. Find out what they normally do if the lender takes too long to respond, if the request is rejected, or if the first offer isn't good enough.

Make face-to-face contact.
The Internet has made it all too easy for scammers to reach potential victims. While you can find a good loan modification attorney online, it's still important to pay them a visit and make sure it’s a legitimate company. Don’t settle for an online or phone consultation; you need proof that you’re dealing with real professionals who know what they're doing.

Watch out for exact goals.
If a company promises to reduce your rate by a certain amount, chances are it's a scam. Again, home loan modification doesn't work the same way for everyone, so it doesn't make sense to set a single goal for every client. A good loan modification attorney will start by reviewing your case, and give you an estimate based on your situation.