Feldman Law Center

Do I need a Loan Modification Attorney?

Let us get right to the point. Yes, you do need a loan modification attorney.

The loan modification process is a legal process, and if not handled properly according to federal and state laws, things can get worse for you in the long run. A loan modification attorney has extensive and wide ranging experience negotiating with banks and legal entities, and they understand state and federal law as well as lending regulations. They can also use the Truth in Lending act (TILA) and Real Estate and Settlement Procedures act (RESPA) to your advantage.

Negotiation from a position of strength is what attorneys are trained to do. We comb the haystacks looking for leverage to help you avoid foreclosure and to keep your home with an interest rate and loan term that you can handle.

Loss Mitigation is a fairly new industry and as such it is not very tightly regulated. This has led to a notable number of unethical companies purporting to provide Loss Mitigation, Loan Modification and stop foreclosure services. Homeowners should be aware that such companies do exist and are advised to avoid companies that offer 100% Guarantees or are not attorney-backed where the Attorney is available. Ask to speak to their Attorney and see he has the experience necessary. There have been several Loan Modification companies advertising “Attorney backed”, “Attorney assisted” or “Attorney based” loan modification services. These Attorneys are not your Attorney and these companies should not mislead you or misrepresent the fact that they are a Law Office and have the ability to invoke your legal rights. In most cases these companies can only obtain an unaffordable forbearance agreement from your lender. If you are approached by a loan mod or loan modification company to help negotiate your mortgage or stop foreclosure please be careful as to not fall victim and research them carefully. Ask to speak with an Attorney as these companies may take upfront monies that a portion is refundable and there are no guaranteed results. Having examples or testimonials from past clients on websites are normal marketing strategies and should not be found as reliable sources. Make sure they have a approved contract on file with the state they are licensed in and are in good standing. Do not trust just anyone with your complex situation. An Attorney can offer you reliable free advice and assist you in stopping foreclosure and making the right financial decision. Know your foreclosure rights!

IMPORTANT NOTICE:
“Attorney based” Loan Modification Companies are not Law Offices and should not be offering legal advice to homeowners facing foreclosure or other financial hardship. Mortgage companies have become much more aggressive in pursuing borrowers for mortgage fraud, if you made overly “optimistic” representations on your loan documents and are now facing foreclosure, it is imperative that you have representation through the foreclosure process for your own protection.

Loan Modification Help With An Attorney

Loan Modification Help, not an unaffordable forbearance agreement is what struggling home owners need. If you need to stop foreclosure or have a high interest rate loan we want to help. We are a Law Office and not an “attorney based” or “attorney assisted” loan mod company. If you can’t afford your home we can stop foreclosure and develop a plan you and the lender can live with. We work with lenders, loan servicers and homeowners to create workout alternatives. Loan Modification Help will assist in properly negotiating and creating a workout that you and your lender can manage. In addition, homeowners should consider working with our paralegals and Attorneys to help with homeownership counseling and reliable legal advice. We work with homeowners nationwide in foreclosure to qualify for a loan modification help to avoid unnecessary foreclosures. We are lender friendly home owner advocates with a reliable team of Attorneys, paralegals, licensed real estate and mortgage professionals who fully understand the requirements and benefits of loss mitigation services.  We offer legitimate homeownership retention and foreclosure solutions nationwide and free legal advice to homeowners facing foreclosure. 

Getting a loan modification from your Lender or Loan Modification Company is usually nothing more than a forbearance plan designed for failure and proves to the lenders that you can’t afford your property. There are many homeowners that hear information from the government about lenders trying to help if you have a FHA loan. This is true for home owners in FHA loans that are in default or facing foreclosure. Utilizing our Law Office to negotiate with your lender rather than going it alone or with a loan modification company will drive more positive results. Once you hire an Attorney to help stop foreclosure you will not be alone as we will work hard for you and the lender to save your home from foreclosure. The banks loss mitigation departments are overwhelmed. We are Attorneys and not loan mod specialists.

 Recently we have seen a new terms used to lure struggling home owners in to thinking they are getting representation from an Attorney for loan modifications such as “ Attorney backed” Attorney assisted” “Attorney based” and “our in house Attorneys”. These are all meaningless fancy terms to help loan mod agents (EX Loan Officers) sell their service; a service that consists of you sending them ALL your personal and public information to package it up (like a loan submission) and send it off to the lender’s loss mitigation department. This often ends up as a hard to afford forbearance agreement or worse yet a denial for loan modification. Unfortunately for most home owners these companies  use tactics such as offer money back guarantee’s, 98% success claims, makeshift invisible Attorneys and allow you to use a credit cards and pay pal for payment. Ask them to use the U.S. Postal service for transferring checks and pay with a personal check. If they defraud you then they will face “mail fraud” charges punishable with Federal prison time. The truth is they have to keep all monies in a Trust account and not spend it until your loss mitigation services are complete and you are satisfied. Let’s be honest, who can run a company without money. The majority of these companies are ex Mortgage Brokers who spend money before they have it and pay their loan mod agents, loan modification experts, senior loss mitigation specialist’s top dollar to close you and get your money in any way they can.

 Last time I checked if you are in trouble or see it coming hire a reputable Attorney, period! 

LOAN MODIFICATION HELP WITH THE FELDMAN LAW CENTER

Loan Modifications with an interest rate and principal reduction is typically the best solution for our clients and the loan servicer/ lender if the house is upside down. This way the client and the lender are in an equity position and the loan is much more likely to perform. This is critical to the stability the lenders portfolio as the mortgage note becomes an asset and not a liability, thus raises investor and consumer confidence. A loan modification is a change in your mortgage agreement that could lower the interest rate, lower the principal balance, and/or extend the term of the loan resulting in lower payments. There is typically not a fee for a loan modification from the lender but there is a contribution that lenders require to modify a loan with a forbearance agreement. You should always have an Attorney review any documents received from your lender prior to signing. We will explain the terms and offer legal advice so you make the right decision. You don’t have to take the banks offer and shouldn’t if you can’t perform. Our Law Firm Attorneys will continue to negotiate with your lender to obtain a reasonable modification. A loan modification company has to take what the bank offers, whether you can afford it or not, sad but true.

 OTHER OPTIONS AVAILABLE TO HOME OWNERS IN DEFAULT

 REPAYMENT PLAN/FORBEARANCE

If you have incurred a short term financial hardship and your loan is two or more months past due, your loss mitigation specialist will also consider submitting a request for a payment plan to your lender for approval. Only after reviewing your financial situation will this option be considered. All clients must be able to show that they can afford this plan in order to be eligible. NOT GOOD
 

VA LOAN MODIFICATION/REFUNDING

(VA loans only.)
A refunding is when the VA buys your loan from the lender. Refunding may give VA the flexibility to consider options to help you save your home that your current lender either could not or would not consider. When the VA refunds a loan under 38 U.S.C. 36.4318, the delinquency is added to the principal balance and the loan is re-amortized. Your new loan will be non-transferable without prior approval from the Secretary. If your interest rate was lowered and an assumption is approved, the interest rate will be adjusted back to the previous rate. GOOD

   
DEED-IN-LIEU OF FORECLOSURE

(In general we consider this an option of last resort.)
If you have incurred a long term financial hardship and your house has been on the market (at fair market value) for at least 90 days, you may be eligible for a deed-in lieu of foreclosure. To be considered for this option, you must complete a financial package and provide a copy of your recent active listing agreement. Also, there cannot be any additional claims or liens (other the mortgage) against the property. If you are approved for a deed-in-lieu, you will be giving up all rights to the property and the property will be conveyed to your investor. In exchange for the deed-in-lieu, the lender may waiver all deficiency judgment rights. You may be asked to participate in a Short Sale program before a deed-in-lieu of foreclosure is accepted. BETTER THAN A FORECLOSURE WITH A DEFICIENCY

 
SPECIAL FORBEARANCE
(FHA loans only) (Type I & II)
If you have incurred a short term financial hardship and your loan is 90 days to 365 days past due, the loss mitigation specialist will also consider submitting a request for a special forbearance. A special forbearance is designed to provide you with more relief than is possible with a regular repayment plan. Typical approval can result in spreading the repayment over 12 to 18 months. Type II – can be utilized in an unemployment situation whereby the promise of future employment is present. We have done VA loans that resulted 27-month repayment plans. GOOD

PARTIAL CLAIM 

(FHA mortgages only) (Some Freddie Mac Investor loans)

 You may be eligible if your loan is 120 to 365 days past due. A partial claim results in placing your past due payments into a subordinate mortgage (2nd mortgage) between you and the Secretary of Housing Urban Development. The partial claim note will require you to start making payments when you pay off the first mortgage. There is no interest. The partial claim can be for no more than 12 months of past due payments. GOOD

We have had great success negotiating loan modifications for our clients with

AIG Mortgage, AMC Mortgage, Bank of America, Beneficial, Chase, Citi Financial, CITI Mortgage, Countrywide, EMC, Everbank, First Franklin, Freddie Mac, GMAC, Homecomings Financial, HomEq, HSBC, IndyMac, Litton Loan Services, Midland, M&T Bank, National City, Nation Star, Ocwen Mortgage, Option One, Saxon mortgage, SunTrust, Wachovia, Washington Mutual (wamu), Wells Fargo, Wilshire

Contact The Feldman Law Center for a no cost Loan Modification Consultation

Loan Modification Options

Loan Modification Options, Things You Should Know!

A Loan Modification can either be a permanent change in one or more of the terms of a mortgagor’s loan, or allow a loan to be reinstated and results in a payment the mortgagor can afford. Find out if you are eligible and the procedures by reviewing this helpful information published by the U.S Department of Housing and Urban Development http://portal.hud.gov/fha/sf/svc/loanmodfact.pdf . We hope you find the content useful and helpful for your situation.

 Whether or not you are eligible under HUD guidelines, rates and terms as well as qualifying for a loan modification are at the lenders discretion. You have choices on how to go about attempting to modify your existing mortgage and you can certainly try it on your own as many do. If you would like the forms, example of hardship letters along with some sound advice, contact us and we will be more than happy to provide it for free. Some homeowners that are struggling with their mortgage payments or facing foreclosure may choose to hire a real estate attorney or search loan modification companies rather than going it alone due to the fact an attorney may drive a more positive result, or other avenues have failed. Navigating through the mortgage lender’s loss mitigation department can be difficult at times, similar to the stories told of the Bermuda Triangle. I mean things just disappear!  Keeping in mind the lender or loan servicing company is just trying to collect a debt and make a loan perform for the investor. Debt collections is different than loan modifications being that people have been collecting debt for over a couple hundred years and doing loan mods for 6 months . I have heard horror stories from clients just trying to get through to loss mitigation departments by phone or worse yet once contact is made; lost faxes, poor results, declines, unaffordable forbearance agreements, or going into foreclosure.  Remember…..the lender is mainly trying to collect delinquent payments,  not give you 2.50% fixed for 5 years on a 5.00% 30 year fixed and knock $100,000 of your principal loan balance. Yes, these things may be possible. They are done on a case by case basis and must be properly negotiated to get the most favorable short and long term results. Hiring a qualified attorney is usually going to get better results.

Be very careful when doing a  loan modification!

 In many cases we have seen clients hurt themselves by telling or showing the lender certain things they shouldn’t. You must understand, the personnel in the loss mitigation dept. are highly trained at negotiating and collecting past due mortgage payments. This is why the lender will normally not consider a modification unless you are 3 or more payments behind. This is why the lender wants to see you have some money available to send them immediately and they will consider a modification after 3 months of higher payments made on time. Unfortunately, most of the time we see clients have defaulted again thus causing more fees and possibly back in the foreclosure process. A loan modification is a long term solution, modified forbearance agreements are designed by the lenders to just get paid. Of coarse they will negotiate with you to get caught up, requiring a portion of the arrearages to be paid up front to reinstate the loan or to stop foreclosure.

 Be Very careful doing a Loan Modification with a Loan Modification Company!

 There are several loan modification companies/loss mitigation companies advertising success rates, money back guarantees, large principal reductions, 4.50% 30 year fixed rates and I can go on and on…… and on. A company in Los Angeles boasts a “home equity leveling program” where you pay them $1500 up front for processing then 1% of the loan amount when they get you a huge principal reduction, with NO CRIDENTIALS….. Please! The worse I have heard was a company that tells you they freeze your payments for 5 months and you make reduced monthly payments to them while they negotiate with your lender. I mean, this so called attorney backed loan modification company is getting home owners to pay the ridicules monthly fees and getting no results. Let’s put it like this, just check with the Attorney Generals Office as there has already been cases filed against stop foreclosure and loan modification companies. I’m not saying that everyone’s dishonest or will stop at nothing to get a sale; I’m just saying that few are operating legally or know what they’re doing. Make sure to do your research, ask questions, and ask to speak with the attorney or better yet what his name is.

 It’s unfortunate that most home owners are stuck in this spot in the first place that they would be taken again. Several loan modification companies boast the fact that an Attorney handles the negotiation or they are “Attorney backed”… “Attorney Assisted”…. “Attorney Based” or “Our In House Attorneys”. The sales people have titles like “loan modification specialist”, “loan modification expert” or “stop foreclosure consultant”; I find this quite amusing. Now, I may be partial because I’m an attorney and my law firm hires only experienced attorneys, paralegals and bank negotiators to handle client’s files. But the truth is, my staff is compassionate and knows what they’re doing. They know what a loan modification looks like and how to negotiate with the lender. Better yet, you are working with a law office.

What’s a real loan modification look like?

 It should look like a 30 year fixed rate between 5.00% and 6.00% allowing a borrower the long term ability to pay. If that is not affordable to the client there are other options depending on the investor, who is servicing the loan and the extenuating circumstances. Modifying the terms of the existing mortgage may also include a discounted rate fixed for a period of 3 to 5 years then gradually increase to a fair market fixed rate up to 40 years. A lender may also opt to reduce the principal balance or forgive part or all of a 2nd mortgage if presented with a valid case. Basically, a real loan modification will look like a reasonable long term solution for both parties, creating a “win-win” solution with a “make sense” approach. In certain instances lenders have lowered the interest rate as low as 2.50% due to extreme hardships and the borrowers desire to keep their home.

 IMPORTANT NOTICE: Loan Modification Program for Distressed Indymac Federal Mortgage Loans

Where should borrowers interested in the program call to apply?

Borrowers who are delinquent or who are experiencing financial hardship and are falling behind on their IndyMac Federal mortgage should call 1-800-781-7399 to speak with an IndyMac Federal customer service representative or visit the FDIC website (www.fdic.gov).

 

You can also visit the IndyMac Federal website to get most your questions answered at http://www.fdic.gov/consumers/loans/modification/indymac.html .

 To get a free advice or speak with an attorney contact The Feldman Law Center in California http://www.feldmanlawcenter.com for more information on Indymac Federal please visit http://www.fdic.gov/bank/individual/failed/IndyMac.html or http://www.fdic.gov/bank/individual/failed/IndyMac.html

 Remarks by FDIC Chairman Sheila C. Bair on the IndyMac Loan Modification Announcement: http://www.fdic.gov/bank/individual/failed/IndyMac.html 

A Forensic Loan Audit Identifies Infractions And Violations

A Forensic Loan Audit identifies infractions and violations committed by your lender and/or broker when they originally funded your loan.

To a large extent, these violations are the LEVERAGE used to argue your case against your lender. Generally, the more violations, and the higher their severity, the better chance you have of obtaining a loan modification with long term positive results.

A Forensic Loan Audit is the FIRST STEP in obtaining a home loan modification if you are not behind in your mortgage payments, facing default or foreclosure. It’s critical when commencing any type of litigation when fighting foreclosure. You should obtain a Forensic Loan audit to determine what laws were broken, if any, by your broker or by your lender.

BEFORE YOU EVEN CONSIDER FILING A LAW SUIT WITH YOUR LENDER, A Forensic Loan Audit will provide the information and leverage necessary for a successful outcome. Lenders will want to settle with a loan modification rather than face costly litigation.

The Hard Facts!

These are very hard times and you are not alone. Millions of homeowners are living paycheck to paycheck, or simply do not have enough income to pay their bills. The drop in the housing market, the record high prices on gasoline, and record consumer debt have left many homeowners in the scary situation of not being able to pay their mortgage and other bills. Compounding these problems are “predatory loans” with terms many consumers didn’t understand. Option ARM recasts this year will exceed expectations due to sharp increases in the indexes these adjustable loans were tied to. The good news is. You may have a way out of this mess by modifying the terms of your existing mortgage.

The important thing to remember is you are not alone. Luckily there are many laws and consumer groups to protect you. In this blog entry, I’ll tell you about these groups. But first, let’s first cover some background so you know more about the situation.

Loan Modification Services (sometimes called Loss Mitigation) were established by the Federal Government and the credit industry in order to help borrowers who can’t pay their debts for a variety of reasons. A Law Office that specializes in debt negotiations with secured creditors is the best solution when going up against your lender, and a forensic loan audit can help drive better results is some cases.

The key goal of Loan Modification is to stop home foreclosures. Foreclosures help no one (not even the bank), and they have a serious negative effects on the economy–especially the local economy–where short sales and foreclosures leave homes abandoned and sap value from the surrounding neighborhood. If you are faced with a rate increase or loan recast it’s a good idea to be proactive and negotiate with your lender before you fall behind on your mortgage and ruin your credit. An Attorney can make your lender listen!

Here are the key elements of what you need to know regarding stopping or preventing foreclosure:

1. Mortgages CAN be renegotiated between the borrower and lender under certain circumstances. Those circumstances include inability by the borrower to pay, or the fact that the loan violates federal law. The process of renegotiating a loan is called Loan Modification Or Loan Workout

During Loan Modification:

The rate can be lowered, resulting in a lower payment;
The term can be lengthened, resulting in lower payments;
Payments currently due now can be amended to the end of the term; Or, best of all, the loan balance can be reduced, so that the borrower owes only a fraction of what he/she originally borrowed. The 2nd mortgage can be forgiven and eliminated.

2. Many loans funded during the “boom” years of 2002-2006 were performed with legal violations. Although only a fraction of the loans were funded with blatant disregard for the law, the majority of loans have significant violations resulting from carelessness, greed or just innocent oversight by the lender and/or broker. However, no matter why these violations were performed by the lender, these violations carry EXTREMELY stiff financial penalties for the lender, and can result in SERIOUS legal consequences to the lender, such as forcing the lender to refund all interest paid to date back to the borrower.

3. Loans with illegal terms or conditions are not enforceable. Foreclosures resulting from illegal loans are also not enforceable. The foreclosure process is STOPPED when litigation on a questionable loan begins. Mortgage payments are NOT required during the foreclosure or litigation process, although depositing the mortgage payment into a separate bank account is often considered a gesture of good will.

4. Lenders will choose the most rational and fiscally sensible response when presented with the legal facts. When facing their legal options: modifying your loan, foreclosing your home, paying some high-priced attorneys to litigate, or risk stiff federal fines and penalties, many lenders will choose Loan Modification as the most financially sensible option.

Understand that in order to take the high road position, YOU MUST KNOW WHAT VIOLATIONS WHERE PERFORMED BY THE LENDER.

This is the key to obtaining a favorable outcome during the Loan Modification process. This leverage will help you argue your case in favor of having your loan modified.

What you need to do: Get a forensic loan audit and hire an Attorney.

After performing a thorough assessment of your personal finances and analyzing the original paperwork, legal documentation and disclosures associated with the loan, the Forensic Loan Audit will document what laws were broken by the lender and/or broker during the loan process. The Forensic Loan Audit will determine if the loan is even legal.

From this perspective, you may opt to attempt to modify the loan yourself (not highly recommended) or hire a professional attorney to get you the best possible solution to your home foreclosure problem.
Call or visit The Feldman Law Center today at 800-659-6525

Our goal is to help home owners save their home and assist lenders in getting mortgage loans to perform thus bringing stability to this troubled housing market. Mortgages that are or will become unmanageable must be worked out fast with a “make sense” loan modification. Lenders are not property managers and consumers deserve fair interest rates and the benefits of home ownership.

We understand that distressed homeowners need immediate help, and a permanent solution that is both proven and affordable.
The solution begins with a Forensic Loan Audit and a fair Loan Modification not an unaffordable Forbearance Agreement.

A comprehensive Forensic Loan Audit is the key to obtaining a beneficial, long-term solution (such as a loan modification) because the audit identifies violations made by your lender. Because of our experience and computerized loan auditing technology, The Feldman Law Center performs the most complete Forensic Loan Audit available.

In the past few years, a great number of loans were performed with errors, omissions, legal violations and just plain fraud. To a large degree, these violations are the leverage used to obtain a loan modification. Generally, the more violations on your loan (and the greater their severity), the better your chance of obtaining a loan modification.

The Feldman Law Center uses Independent Certified Loan Auditors. Our Law Firm will provide a comprehensive technology-driven loan audit from a non- bias highly qualified Forensic Loan Auditor. will provide the following when you order a Forensic Loan Audit: A color-coded Violation Severity Alert (VSA) - Escalating through green, orange and red, the VSA appears red for loans which have the greatest number and severity of violations and these loans often have the best chances for a loan modification. VSA makes it easy to determine your chances for a successful loan modification.

A 30-Minute phone consultation and advisory session with an Attorney or Paralegal. Unlike other firms, which may give you a printed report, or leave you out in the cold wondering what do next, our exclusive one-on-one legal consultation process makes it easy to determine your next step in the loan modification process. Just ask Mr. Feldman or one of his paralegal staff and he will be happy to answer your questions and provide advice.

Who Needs A Forensic Loan Audit?
The Feldman Law Center provides Forensic Loan Audit service to consumers, banks and attorneys through the United States.
Consumers - Homeowners having trouble paying their home mortgage, victims of predatory lending.
Banks - For compliance or investment appraisal, reviewing large quantities of loans is not a problem for us and discounts are offered for bulk purchases.
Attorneys - Subcontract your audits to us. Our technology and fast turnaround will make your job easier.
As a Homeowner, What Are Your Options?

These are financially troubling times for many homeowners and lenders are being inundated with tens of thousands of requests to grant loan modifications, lower interest rates, and reduce outstanding balances.
Keep in mind that, while lenders are well equipped to lend and service your loan, they are not prepared or staffed to perform modifications or workouts. Moreover, they probably do not even own your mortgage. Most likely, their hands are contractually and legally bound by the Wall Street investors to whom they sold your loan.
In most cases, even if your lender wanted to enter into a loan modification with you, they couldn’t…because they no longer own the mortgage or make decisions regarding your loan. Rather, they have to present their case to the entity that currently owns your loan: Wall Street investors.

So ponder this for a moment: you (and millions of other homeowners) are individually asking these big faceless Wall Street firms to take on financial losses because of individual personal reasons: you lost your job, your home dropped in value, you had a financial setback, or you entered into a bad loan situation.

The bottom line is this: no matter how badly you need it, no matter how important your reason, no matter how legitimate your request, Wall Street sees only numbers.

Because Wall Street sees only numbers, not reasons, excuses or explanations, they simply don’t care. In fact, they don’t have to; they are not a charity, they are a business whose main goal is to profit from real estate investments.
So, for many lenders it is an easier path to proceed with foreclose and take the homes back, as outlined in their sale agreements with Wall Street investors, as opposed to exploring alternative options with individual homeowners.

The lenders, Wall Street, and our Government can not move fast enough for you–the homeowner–to avoid losing your home or ruining your credit!
But do not despair. There is help!

The best way to approach your lender is by using a legal approach. After all, this is the same approach used by the lenders themselves: they seek only to enforce their legal contract with you. They lent you money to purchase or to refinance your real estate. Now they want their monthly payments or they want the asset back…your home. It’s that simple!

You must start with a full understanding of…
At This Point, What Are Your Legal Options?
What can you do?
What should you do?
How do you get it done?

In this mortgage meltdown market, lenders focus on keeping financial losses to a minimum. This is often best accomplished by keeping a borrower in the home. Keeping payments coming in, even reduced ones, is always better than the prospects of foreclosure, where lenders see no regular income. Thus, the goals of our clients often meet those of the lenders.

Now, while it would then seem easy for borrowers and lenders to come to agreements, reaching the right person at the lenders’ offices who can make decisions is often very difficult. The benefit of using The Feldman Law Center and its affiliate attorneys is that they are able to touch the right people with the right message.

Your attorney will negotiate directly with the people who actually make decisions regarding your loan, and will facilitate the most logical and beneficial outcome. We save our clients’ valuable time, so they don’t have to waste time on the phone, or writing letters. This usually results in a positive outcome for not only our client, the homeowner, but also for the lender.

If negotiations fail, and our client has valid complaints against the lender, we file suit in court. This action immediately gets the lenders undivided attention, and puts us in a position to be heard.

Fortunately, the big lenders hire “Big Name” experienced law firms who understand mortgage laws very well. These seasoned attorneys do not usually hesitate to settle when faced with facts against their client. Thus, many cases will settle before trial, which means less hassle for our client and for the lender.

Order your Forensic Loan Audit Now at
The Feldman Law Center
How is a Forensic Loan Audit structured?
All of our loan audits follow these guiding queries:
Did the lender provide a good loan?
Did they qualify you for a loan that you could not afford?
When underwriting your loan, did they “stretch” their guidelines?
Did they discriminate against you because of your race or color or religious beliefs?
Did they tell you one thing, but delivered something different at the closing?
Did they comply with all States and Federal Laws?
Did they provide the correct documentation to you at the proper times? Was it filled out correctly? And did you understand what was being provided?

The best way to get your lender to listen to you is by presenting a legal case to them, along with proof that they committed errors in underwriting, approving, and funding your loan.

Lenders and Wall Street investors do not want a legal battle on their hands, and will likely allow a loan modification to take place, if it is truly based on legal facts.
Armed with very expensive attorneys, lenders know it is cheaper to modify your loan instead of spending as much as $650.00 per hour to litigate.
Get the facts! Get your Forensic Loan Audit done. Know your Violation Severity Alert (VSA) level, speak with an attorney, and fully understand what you must do to save your home, so you can start rebuilding your life!
Order your Forensic Loan Audit Now!

At The Feldman Law Center, we perform a complete Forensic Audit in accordance with specific state laws and statutes.

From the Audit, you will find out if you have been deceived in any way by the Lender, Title Company, your Broker, and your Realtor. You will also be apprised of and/or your Lender has committed any state or federal loan violations.

Our Team of Loan Compliance Auditors are seasoned professionals with audit expertise in state and federal laws, mortgage compliance and underwriting. We provide Forensic Loan Audits nationwide.
Our compliance experts have performed thousands of audits nationwide. Our personnel have earned the respect of the world’s largest banks, Wall Street investors, attorneys, and regulatory groups. We have the experience and leverage you need to obtain a favorable outcome.

What Do You Receive When You Purchase Your Forensic Loan Audit
Our Forensic Audit Process will determine if Your Mortgage Lender has acted in Compliance with RESPA, TILA, and Local, State and Federal Regulatory Lending Guidelines.

Contact The Feldman Law Center for more information today.

 

Advance Fees and Loan Modification Services

 If you are a home owner and behind in your mortgage payments, you may be contacted by individuals or companies that will offer to help you work out a loan modification with your lender or provide other services to you in order to help you prevent a foreclosure on your home. Some of these companies will make promises of freezing your mortgage payments or advise you not to make payments during the negotiation. Many of these companies have names that sound official and make claims that they are “attorney backed” or “attorney assisted”. Others state they have 95% success rates and have self proclaimed “experts” to stop foreclosure or reduce your principal balance. You will find them on the search engines, in the mail, on TV and the radio!

You must be very careful if you are asked to pay for any of these services in advance, whether in cash or by charging your credit card. First, California Civil Code Section 2945, which regulates “foreclosure consultants“, forbids anyone (who falls under the definition of a “foreclosure consultant”), including a real estate licensee, from collecting any advance fees for these types of services if a Notice of Default has been recorded against your property. If your lender has recorded a notice of default, do not pay an advance fee to anyone. There are non-profit agencies that can assist you without charging you a fee and real estate brokers who can represent you for a fee to be paid after they have completed their work. For information go to http://www.dre.ca.gov/mlb_adv_fees.html

If a Notice of Default has not been recorded against your property, it may be permissible for a real estate broker to assist you in working out a loan modification or otherwise negotiate a possible resolution to your problem with your lender or loan servicer and ask you for payment in advance for their services. However, the broker must have you sign an agreement that tells you what services will be performed, when they will be performed and how much you must pay. The broker cannot have you sign an agreement until it has been submitted to the Department of Real Estate for review and the broker has received permission to use it and collect the advance fee.

Before you pay an advance fee to anyone for assisting you, first call the Department of Real Estate at (916) 227-0770 to find out if an advance fee agreement is on file.

Contact The Feldman Law Center Today http://www.feldmanlawcenter.com/works.php

 

Things To Know About Loan Modification and FAQ

 

Things to know and  FAQ’s – Loan Modifications

 

These are common questions that are asked about Loan Modifications.

 

1. What Is A Loan Modification?

 

A Loan Modification is a negotiation between a lender and a borrower that results in the terms of the existing loan being restructured without refinancing. The rate and terms of your loan are restructured to fit your current financial situation.

 

2. How do you do It?

 

In these market conditions, the banks and lenders have been mandated by the Federal government to do everything they can to work out a payment plan with their borrowers. This is great for today’s borrowers, especially for those who are running late on their payments or are having trouble making them on time.  The banks and lenders would rather take less money and keep you in your home making a payment that you can afford, rather than go through the expense foreclosing on the home, hiring a listing agent, rehabilitating a home, and letting it sit empty on the market for months, only to lose thousands in the process.  We currently work with almost every major lender and several small lenders and banks to secure a loan modification to help them help you.  In many cases we actually have taught smaller banks and lenders how to go about completing a loan modification.  Within 24 hours after receiving your package, our legal team will contact your lender to notify them that they will be negotiating a loan modification on your behalf.  From then on, they will be working with you and your lender in order to find a solution to your mortgage problems.

 

3. Are lenders and banks really willing to negotiate?

 

Definitely!  Lenders do not want to foreclose on your home, unless they have no other

alternative.  If you can present them with a realistic professional proposal that makes sense, they are very open and receptive to the loan modification process.

 

4. Who qualifies for a loan modification?

 

Anyone who can prove they are having a tough time. Especially those who are currently a

few months behind, those with negative amortizing loans, those with loans that are about to adjust, those who are upside down on their loan and those who would rather keep their

home than do a short sale.  Basically, the bigger the hardship you are having, the more negotiating power you have with your lender. Remember, they don’t want to foreclose on you. They would rather keep you in your home and create a solution that will be affordable to you rather than go through the cost and expense of foreclosing on your property.

 

5. Why didn’t my mortgage lender tell me about this?

 

Your mortgage lender is in the business of originating and/or servicing loans. Modification of existing loans and foreclosures are simply a result of being in the business they are in and, as such, they aren’t a priority for the mortgage lender. This program is not that costly and quite frankly, they are so busy dealing with other homeowners who are already going through tough times, that they don’t have time to deal with your situation.

 

6. Why should I choose a loan modification?

 

If you are having trouble and behind on your payments you have several different options to fix your problem.

 

Reinstatement Plan - Where your lender will reinstate the original terms of your loan once you are caught up. 

 

Repayment Plan - Where your lender will tack on an extra amount onto each payment for a set period of time.

 

Loan Modification - Where you negotiate a restructure of your current loan terms without

refinancing.

 

Loan Refinance - Refinancing may be an option if you have the equity and credit required.

 

Forbearance Agreement - Where your lender negotiates a repayment plan and may force

you to list your home for sale.

 

Short Sale - You sell your property for less than you owe but your lender accepts it as

payment in full.

 

Pre-Foreclosure Sale - You agree to sell your property before foreclosure takes place.

(requires equity).

 

Deed-in-Lieu of Foreclosure - You agree to sign your property back over to your bank and walk away.

 

Bankruptcy - You have to file bankruptcy to protect yourself, but if you miss one payment you will be right back in foreclosure.

 

A loan modification is a good solution if you cannot refinance, are behind on your payment or struggling to make your payments, have experienced a genuine hardship, and you want to stay in your home. A loan modification is a permanent solution to your situation and is not meant to be used as a temporary stop to the foreclosure process.

 

7. Can I negotiate a loan modification myself?

 

In short, yes you can. You can contact your lender or your bank and see about going through the process of loan modification. But, keep in mind that your bank has their best interest at heart. They neither have the time nor the inclination to hear about what troubles you might be experiencing.  What usually occurs is that the bank will negotiate an agreement that helps them, but still leaves you with only a temporary solution. This also takes many hours of communication and back and forth information exchanges in order to accomplish. It is not easy to complete on your own and the outcome may not be favorable to you.  When you contact the bank, they will ask for a “hardship letter” from you. When they receive that letter, they will usually tell you that they will get back to you in about 8 weeks. By the time you get back with them, or if you are lucky enough to get a call from them, you’re already in worse shape than when you first started negotiation.

 

8. How Come You Have More Success?

 

Our attorneys have been doing hundreds of loan modifications every month, working with virtually every bank and lender. They have open lines of communication with most lenders, which gives them the ability to negotiate directly with the person who is in charge of making a decision on your loan.  We also create a professional legal file on your behalf which includes all of your financial data such as income, assets, expenses, and unexpected intangible expenses. They couple this with a full property analysis and package this together in a file that makes it easy for the lender to read and understand, allowing for a more comprehensive and quicker response than you would get through other forms of negotiation.

 

9. How much does it cost?

 

The costs associated with an attorney based loan modification will vary depending on the value of your property, the type of loan, the lender, and the number of loans held against our property. The modification cost usually comes close to equaling the same as about one month’s mortgage payment.  Since every loan modification is different, it requires a varied amount of negotiation.  After your initial application is reviewed and if the attorneys accept your case, your loan modification representative can help determine what the exact cost of your loan modification will be.  Our primary goal is helping homeowners who want to keep their homes, find a beneficial solution for their situation. We will work with you to ensure that we can obtain an affordable solution for your loan modification needs.

 

10. What do you need from me to get started?

 

If our attorneys believe they can help you and accept your case, then we will need to submit a complete loan modification file that outlines your current financial situation.  They will contact you directly if other paperwork is required by the lender in order to negotiate a successful loan modification.  They will also determine the current value of your property and put together a professional proposal for your lender.

 

11. What makes you different from other companies?

 

We are not a store front loan modification company, but a service provider helping you find the right legal representation needed to negotiate on your behalf.  Loss mitigation departments at major banks and lenders give much more credence to modification proposals submitted by attorneys.  Maybe it is fear of a lawsuit if they do not negotiate in good faith, but banks and lenders are much more responsive to attorneys than they would be with the actual homeowner or other third party negotiator.

 

12. Will I have to meet with my lender or deal with any of their paperwork?

 

Absolutely not. We take care of all the paperwork and all of the negotiating on your behalf.

 

13. How long does the process usually take?

 

It can be completed in as little as five days but usually takes from 6 - 12 weeks depending on the lender, type of loan, and individual situation.

 

14. What paperwork do I need to complete the process?

 

We provide you with a complete list of the documents the attorney will need in the file to complete the process and will help prepare the file.  Of course, no legal representation can begin until counsel has been properly retained and you have given written authorization to proceed.

 

After we receive these items from you, we can begin your loan modification process.

Please contact us with any other questions or concerns. Remember that time is not on your side, so if you are having problems or struggling to keep up with rising mortgage payments, don’t delay and call us immediately for a free and confidential consultation.

We want to help you keep your home, period.

 

15. By utilizing the Loan Modification option to bring an asset current, can the mortgagee include all fees and corporate advances?

 

Mortgagee Letter 00-05, page 21, paragraph F, “Allowable Provisions” states: “All or a

portion of the PITI arrearage (principle, interest, Taxes and Insurance) may be capitalized to the mortgage balance. Foreclosure costs, late fees and other administrative expenses may not be capitalized.

 

16. Does the repayment plan have to be completed prior to completing the Loan

Modification documents, or can the mortgagee attach the plan once the option has been completed?

 

It is a mortgagee decision as to when to complete the repayment plan for outstanding fees, costs and administrative expenses.

 

17. When utilizing a Loan Modification option, can a mortgagee capitalize an escrow advance for Homeowner’s Association fees?

 

HUD Handbook 4330.1 REV-5, Paragraph 2-1, Section B, Escrow Obligations states:

Mortgagees must also escrow funds for those items which, if not paid, would create liens on the property positioned ahead of the FHA-insured mortgage.

 

18. Will HUD subordinate a Partial Claim, should a mortgagor subsequently default and qualify for a Loan Modification?

 

If a mortgagor subsequently defaults and qualifies for a Loan Modification, HUD will

subordinate the Partial Claim.

 

19. When an asset is modified is the homeowner eligible for the upfront premium refund at payoff of the loan?

 

It depends upon when the closing date occurred. For assets closed: After July 1, 1991 but

before January 1, 2001, the 7-year unearned premium refund schedule shown in Mortgagee Letter 1994-1 remains in effect. On or after January 1, 2001 that are subsequently refinanced, the 5-year refund schedule shown in the attachment of Mortgagee Letter 2000-46 applies. On or after December 8, 2004, refunds of upfront MIP are eliminated except, when the mortgagor refinances to another FHA insured mortgage. The refund schedule attached to Mortgagee Letter 2005-03 has been modified to a 3-year period.

 

20. Can a mortgagee qualify an asset for the Loan Modification option when the mortgagor is unemployed, the spouse is employed, but the spouse name is not on the mortgage?

 

The mortgagee should consult with their legal counsel to determine the legality and validity of such a mortgage instrument.

 

21. I’m unemployed. My spouse does have a job, but her name isn’t on the mortgage. Can I qualify for a Loan Modification?

 

This isn’t a simple question that can be answered “yes” or “no”. What typically happens in situations like this is that the mortgagee - your lender - will conduct a financial review of your household income and expenses to determine if the spouse’s income is sufficient to meet the new modified mortgage payment, but insufficient to pay back the arrearage. Once this process has been completed your lender will then get together with their legal counsel to determine if you’re eligible for a Loan Modification, since the spouse is not on the original mortgage.

 

22. Are there any guarantees on the outcome of my loan modification?

 

It would be impossible for us to guarantee that some other entity (the lender) will do

what we suggest that they do. We can say we have a VERY high success rate in obtaining

modifications for our past clients.  If no modification is achieved, then you get some or all of your retainer back.

 

23. How does loan modification affect my credit?

 

If we are successful in obtaining a modification for you, the loan will, from that point forward, be reported as being paid as agreed. Assuming you make all of your payments on time, you may see your credit begin to get better over time.  Obtaining a loan modification is the least damaging to your credit when compared with a

short sale or a foreclosure.

 

24. Will having a loan modification affect my taxes?

 

We are not CPA’s or enrolled agents and therefore can’t offer you tax advice. We suggest

you check with your tax professional.

 

25. Do I have to be behind on my mortgage to qualify?

 

No. Although falling behind on your mortgage payments is an obvious indicator of financial hardship. Some clients are forced use reserves or credit cards to keep there mortgage payments current. In this situation it is only a matter of time before they fall behind. If an obvious fanatical hardship exists a modification may be possible although the payments are current.

 

26. Do I have to owe more than my house is worth to qualify?

 

No. The basic formula is to have less than 20% equity in your home. The less equity you

have in your home, the more the investor stands to lose in a foreclosure situation. If you

have negative equity, that is even more incentive for your lender to work with us.

 

27. Can I have my 1st and 2nd mortgage combined?

 

Yes. In some cases where the first and seconded mortgage are with the same investor that

investor may elect to combine both mortgages into one. Keep in mind if the investors are

different a combined mortgage outcome is VERY unlikely.

 

28. I’m about to or already filed for bankruptcy, is it too late?

 

No. If you are currently in bankruptcy and your property is not included in your bankruptcy and you meet all other qualifications you are eligible immediately. If your property is included in your bankruptcy you may be able to ask your bankruptcy attorney to remove it from the bankruptcy. Keep in mind your bankruptcy attorney may charge an additional fee for service to pull the property out of your bankruptcy.

 

29. I already have a sale date for my home, can I still save my home?

 

Yes. Traditionally we need a minimum of ten days prior to the sale date to be able to

achieve a postponement of the sale. In some cases we are able to postpone the sale as late

as the day before. Keep in mind the longer you wait the harder it is to save your home!

 

Contact The Feldman Law Center today for your FREE Loan Modification consultation.

 

 

 

 

 

 

 

 

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