Due to hardships, lenders may make changes or loan modifications to your current mortgage. The purpose is to help make your loan more affordable. Usually it is in the form of a rate reduction and conversion of an adjustable rate mortgage (Adjustible Rate Mortgage) to a fixed loan, typically a 30 year fixed.



These days, it seems like everyone is purporting themselves to be a Loan Modification Specialist. Instead of hiring companies that are loan modification "mills," borrowers should only work with companies whose licensed attorneys actually do the negotiations. Most of these so-called loan modification companies have displaced mortgage loan underwriters doing the negotiations.

Lenders and servicers are very busy with desperate homeowners trying to save their homes from foreclosure. They are not capable of helping everyone because there is not enough personnel. Instead of figuring out the details with their moneylender, a lot of homeowners are easily lost in the system of rules and enduring hardships of an unnecessary foreclosure.

As you may have already experienced, lenders can take advantage of a homeowner's lack of knowledge and negotiating prowess. In fact, most homeowners never even reach the real decision-makers. Homeowners oftentimes wind up settling for much less, than they could have without professional help. I can assure you that without legal representation, you will not get the same results! It seems to be that calls start to get answered and letters begin to receive responses when a lawyer gets involved. Often this can make the difference between saving your home and losing your home. Certainly you will get much better results than if you tried on your own.

A forensic loan doc audit should be included with every loan modification. A separate fee should not have to be paid for a loan doc audit. A lot of companies will have you pay anywhere from $895-$1,500 just for the loan doc audit itself; then subsequently charge you $2,800 or more for the loan modification.

A loan doc audit should include the following:

a.Review file for efficacy

b.Review file for RESPA (Real Estate Settlement Procedures Act) violations

c.Review file for TIL Truth in lending violations

d.File should be examined for possible fraud.Review file for Predatory Lending violations

A loan doc audit is critical because the more violations that are discovered – the more leverage you have when negotiating with your lender.

Another common loan modification company scam is to charge a separate fee if you have a 2nd mortgage. If you have a second mortgage, it should never require a separate fee. Be wary of any company that tries to charge you to negotiate with your 2nd lender. This is a very common tactic.

You should only work with a company that has a true 100% money back guarantee. Make sure the loan modification company agrees to a full money back guarantee and if they don't, decline the offer immediately and look for another company. If the company is really as good as they say they are, they should back it up – in writing.

A Cease and Desist letter to your lender should also come with each loan modification. The Cease and Desist document will prohibit lenders from contacting you directly and tells the lender to contact your lawyer in your place, thereby reducing undesired stress at this trying time.

With all of the bad press going around concerning loan modification companies it is imperative that you do your due diligence when protecting your most precious asset and possession – your home. Be sure to get all the information you need because you can never ask too many questions.

You should look for an experienced team of loss mitigation negotiators that put your case together with expertise and precision. They should have a full understanding of how to package your case file the way the lender expects to see it, saving valuable time and achieving near perfect results. These streamlined procedures reduce the process time, helping you end the stress of waiting for a final resolution. You also should make sure that the company has in-house attorneys who are leading experts in the field of real estate litigation and negotiations.