Loan Modification Tips and Tricks to Deal With your Lender
Loan Modification Tips and Tricks to Deal With your Lender
Free Online Articles Directory
Why Submit Articles?
Top Authors
Top Articles
FAQ
AB Answers
0 && $.browser.msie ) {
var ie_version = parseInt($.browser.version);
if(ie_version Hello Guest
Login
Register
Hello
My Home
Sign Out
Email
Password
Remember me?
Lost Password?
Home Page > Business > Loan Modification Tips and Tricks to Deal With your Lender
Loan Modification Tips and Tricks to Deal With your Lender
Posted: Dec 15, 2007 |Comments: 0
| Views: 3,020 |
]]>
Loan Modification Tips and Tricks to Deal With Your Lender
By Moe Bedard of www.LoanSafe.org
Are you having trouble with your mortgage? Has it adjusted and you cannot afford the new payment? Were you placed into a bad loan and you can’t refinance into a good one?
The first thing that a homeowner should do is identify that the mortgage on their current property is a lawful one. Meaning that there are no Truth in Lending Act Violations or RESPA violations and there wasn’t fraud involved on behalf of the lender or broker that originated your loan. When you are trying to stop foreclosure, you need to have as much ammo as you can to go up against your lender.
With that said, let’s go over some essential tips that might help you save your home.
#1 Homeowner Tip = Have an experienced mortgage attorney examine your loan documents for these potential violations.
#2 Homeowner Tip The homeowner needs a complete written life of loan history to see all the bogus charges and fees included in their mortgage balance. Also, the homeowner should make sure that any inflated appraisal and/or loss of property value is calculated into the workout.
Red Flags and Things to Look Out For in Your Loan:
Start by comparing the loan you got with the one you thought you were getting. Are the terms the same? That is, is your Annual Percentage Rate (“APR”) the same as the one you were quoted? Are your total monthly payments the same as you were told they would be? Is there a prepayment penalty, and if so, were you told about this prepayment penalty?
If you have refinanced your primary residence, that is, the home your currently live in, then the first thing you should look at is the “notice of Right to Cancel” which is also called the Three Day Right of Rescission. You usually has three days after signing loan documents to change your mind and cancel the loan.
The borrower must be told of this right in writing.
If the creditor fails to properly provide notice of this right to cancel, the right of rescission may be extended for up to three years.
When the right is extended for three years you can rescind the loan at any time before three years, meaning that the loan is treated as if it never existed. Essentially, you become entitled to all profits made by the creditor as a result of this loan. This means that the creditor must refund all interest paid, all closing fees, all broker fees, and even pay for your attorney fees. As you can imagine, this amount can be quite significant.
The extended right of rescission is a powerful tool to help borrowers who have been victims of predatory lending, and helping our clients exercise this right is often the first step in holding a creditor responsible for illegal behavior.
If it is determined that no laws have been violated on your mortgage, then it’s time to approach your lender for a possible loan workout or loan modification.
The factors they will look at are:
1. Nature of Hardship Causing Your Mortgage Problems
2. Ability to pay
3. Amount Owed
4. Equity in the property
5. Future financial situation
6. What is better for them. To foreclose or pursue a loan workout with you and or modify your loan. Meaning which approach will best benefit the lender in the long run.
A loan workout or loan modification generally occurs where the parties to a problem loan mutually agree to workout the problem by creating new and better loan terms. The hope is that the new loan will enable to the borrower to meet their obligations.
When applying for a loan modification, make a game plan on how exactly you are going to approach them. These people are trained in minimizing loss for their company and they get paid to by getting the most amount of money out of you as possible or declare that your case is un workable and foreclose on you. That is how they mitigate loss. If you understand this, then you’ll know that you have to approach them and all conversations very carefully.
Everything can and will be used against you.
Your lender has two platoons of employees who talk with delinquent borrowers. The first is the collections department, which consists of people who try to pry money out of you and get you current on the payments. The second group consists of the loss mitigation specialists. These departments go by different names, depending on the servicer, including foreclosure prevention, loan resolution and delinquency customer service. We’ll use the most common name for the department: loss mitigation, or loss mit. It can be difficult to get through to the loss mitigation department if collection agents are discouraged from transferring calls. This is one of the benefits of having a helper, such as an attorney or a housing counselor. The first will intimidate bill collectors and the second might have contacts within the loss mitigation department.
The trick with any bank and getting a work out done is learning to navigate their phone system so as to increase your chances of getting a live person. Over the years I’ve learned some tricks that help, sometimes you hear options that you know will lead to a person like when it says “to speak to a representative press ___” but sometimes they don’t give you these options. So, you have to think, what options WOULD get a live person. For example often anything that involves new clients signing up will get a live representative…because they always want new business. You have to be a little savvy though; you can’t just tell the sales guy you called them so you could get a warm body to answer the phone!
Once you get a live person, you want to be working your way up to a decision maker. This is sometimes harder to do for a homeowner than a 3rd party. Often with the homeowner they get stonewalled at the first level, and sadly the first tier in Loss Mitigation is really a glorified collections department. They are paid hourly employee’s who have very little if not zero motivation to go the extra mile and help you get some needed comfort and relief while resolving your problem. Often they just compound the problem by being rude and demanding, telling people things like “just pay your bills”. So it’s essential that you get beyond these people and to a specialist.
Sometimes to get to this point you have to put up with the hourly employee’s through a process of filling out their forms and information. Providing them with items such as pay stubs, tax returns and a whole host of financial information. Once everything is provided, then some lenders will assign the file to someone higher up in the loss mitigation department.
The MOST crucial element to this whole process is your Budget and if you have done your due diligence, you’ll be ready . They will ask you for a detailed list of your monthly expenses. If it’s too tight, you may not get approved, if you have too much extra income you are going to have an outrageous payment plan. Don’t agree to it!
The 2nd MOST important thing you can do is DO NOT SPEND YOUR HOUSE PAYMENTS. Often people stop making their payment because they are falling behind on other bills, or they can’t quite make the whole house payment. Over the years more often than not, the people I met with still have an income coming in each month, they just can’t meet all their obligations, so while the house is falling behind they take advantage of the fact that they aren’t paying the house payment in order to catch up on other debts. THIS IS NOT WISE AT ALL. Sock away as much of that money each month as you can. Its crucial, here’s why;
If you don’t pay your mortgage for 3-4 months and your lender decides to negotiate a repayment plan or a loan modification, then they will want what is called “good faith” money for you to come to the table with. Typically this is from 30-75% and sometimes 100% of what you owe in delinquent fees and attorney fees. Often I speak with homeowners who spend all their money and have nothing to work with. If that is the case, then don’t expect them to work with you or you better have a REAAAALLLY good explanation and proof as to why you have no money to bring to the table.
Retrieved from “http://www.articlesbase.com/business-articles/loan-modification-tips-and-tricks-to-deal-with-your-lender-283082.html”
(ArticlesBase SC #283082)
Liked this article? Click here to publish it on your website or blog, it’s free and easy!
quintus -
About the Author:
Moe Bedard is a consumer advocate and loan modification expert. He uses the law to help homeowners stop foreclosure and is featured in many online real estate publications across the nation. Moe is also the founder of www.LoanSafe.org
and www.LoanWorkout.org and can be reached at 951-271-6283 or by email at moe @ loansafe.org .
]]>
Questions and Answers
Ask our experts your Business related questions here…200 Characters left
We received a loan modification from chase. They added 18 months of past due payments plus fees to our loan. This came to over $70,000. Is there anyway to get this forgiven in bankruptsy court?
If i am employed and my husband is not . there is any possibility to get a loan modification? we are 3 months behind our mortgage
I filled out form for loan modification on internet sent in necessary paperwork called 2 months later and they said i sent in wrong paperwork and now i have too start process all over again what do i
Rate this Article
vote(s)
3 vote(s)
Feedback
RSS
Print
Email
Re-Publish
Article Tags:
loan, homeowners, mortgage, home, forum, foreclosure, loan modification, help
Latest Business Articles
More from quintus
How to Decide On Loan Modification or Other Choices
Learn how to choose the best possibilty when in financial difficulty as a home owner. (02:46)
Home Loan Mortgage Choices for your Next Home
Know the mortgage home loan choices before you get your next mortgage loan (04:20)
Learn about Mortgage Rates and Points
Video explains with examples why mortgage points matter. Points are what actually move each business day since the actual rate is always available. It’s just a matter of how much it will cost you to obtain the rate. The video tutorial also publicizes a new daily real-time mortgage rate alert service for home buyers and those refinancing their current mortgage. (02:19)
How to Lock Your Mortgage Rate Before Lender Hikes It
Video explains how to lock a fixed rate mortgage on a home loan currently in the application process before you are caught by surprise when a sudden home loan rate increase takes place. The video tutorial also introduces a new daily real-time mortgage rate alert service for home buyers and those refinancing their current mortgage. (01:48)
Understanding Interest Only Or Interest First Loans
Jeff Thomas, mortgage advisor, explains the steps you have to go through when buying a house, like what is an interest only or interest first loan (00:43)
You get what you pay for… Loan Modification is a rapidly growing solution for those with mortgage payments which are too large to fit comfortably into the monthly budgets. There are numerous ways to address the process of a Loan Modification. One of these is to attempt it on your own forgoing assistance from a professional company specializing in all forms of Loan Modification. To do this, millions of Americans have gone to government subsidized sites such as hopenow.com.
By:
Nathan Jeffcoatl
Finance>
Real Estatel
Jun 19, 2009
lComments: 1
Countrywide Modification Loan and It’s Changes
One of the available loan programs offered by the government is the Countrywide Modification Loan Program. This plan is intended to help the many homeowners which are struggling to keep up with their monthly payments and may be well on the verge of losing their homes to foreclosure.
By:
Walter Sigmorel
Finance>
Mortgagel
Nov 13, 2009
How to Use HAMP Loan Modification in 2010 to Save Your Home
Will 2010 Be The Year The Banks Give Back?
As 2010 begins and lenders appear to continue efforts to mitigate losses will corporate tycoons finally pony up and demonstrate a new level corporate responsibility?
Although many lenders have made substantial efforts in assisting distressed borrowers, they have not yet made a dent in the enormous number of bad loans that need to be mitigated.
The latest report from the FHFA is
By:
Steve Wranglerl
Finance>
Mortgagel
Aug 10, 2010
Loan Modification – Where to Find Information About Them
In cases where people find it difficult to process their loan modification, they plan to hire “third-party” negotiators – or lenders — who will assist them in the process. The best way to find one is of course, through word of mouth. Ask your friends and your family. Remember: If a company is good, then people will talk about them. Better yet, ask people who also underwent the same kind of experience. This can prove to be valuable in case you come across a similar situation like theirs in the
By:
Doc Coolmac No PHDl
Finance>
Mortgagel
Feb 10, 2009
lViews: 119
In this article, veteran real estate and mortgage expert Todd Wetzelberger gives you the 11 questions you must ask a loan modification firm to know whether or not you are making the right decision.
By:
Todd Wetzelbergerl
Finance>
Mortgagel
Apr 17, 2009
lViews: 530
lComments: 1
What If You Had Guaranteed Way To Stop Your
Foreclosure in the Next Two Weeks?
You can get your lender to suspend your payments
for several months so you can get caught up?
By:
sunny narinl
Finance>
Mortgagel
Nov 10, 2008
Loan Modification Defaults |Excessive Debts & Excessive credit
Homeowners who get loan modifications may be too quick to get back on the spending track, putting them at risk for second defaults
By:
Steve Markl
Finance>
Mortgagel
Apr 04, 2009
Creative Business Tips for a Changing Economy
It’s true – our economy is changing and the business who can
adapt with creative ideas and strategies are the businesses who are currently
thriving. Good news: you can implement some of these creative business tips in
order to shift the way you do business and to ensure that your business is
successful during this transitional time.
By:
Andy Grantl
Businessl
Jan 23, 2011
Domain Valuation And Its Importance
For the advancement of your company and to increase your sales it is must to get a domain name for your new business.
By:
Shristy Chandranl
Businessl
Jan 23, 2011
versatility and diversity are required to make money in this generation of fast growing market and sometimes we need more too.
By:
Shristy Chandranl
Businessl
Jan 23, 2011
Have You Insured Your Home Business?
Many home business owners rely on personal insurance policies to protect their assets and income. However, this can be a mistake because personal policies may not have enough coverage to help offset business losses. Learn about some simple ways to make sure you have protected your own enterprise, even if you run it from your kitchen or garage!
By:
Maryl
Businessl
Jan 23, 2011
How Will Wealthy Affiliate work for you?
If you think that you cannot succeed in the online marketing, you need to think again. It is a fact that everyone can succeed in the online marketing. It does not require any formal education and there are no boundaries. You can learn whatever you want and whenever you want. Moreover, you have resources like Wealthy Affiliate. You can get help and learn the internet marketing at lightning fast speed without even going to any college or university.
By:
Samuel Mckenziel
Businessl
Jan 23, 2011
Wealthy Affiliate – How can it help you?
Wealthy Affiliate is believed to be one of the best training and coaching websites out there. It deals with affiliate marketing and trains you to become a top marketer in no time. If you are willing to pay a nominal monthly fee, then you should not go anywhere else.
By:
Samuel Mckenziel
Businessl
Jan 23, 2011
The Specialist Recruitment Agency May be Better for a Job-Hunting PA than Online Social Media
Job-hunting techniques have expanded to include use of social media and video self presentation, but there is still a place for the specialist recruitment agency.
By:
Alison Withersl
Businessl
Jan 23, 2011
Utilizing the Fap Turbo Effectively
This essay aims to check some of the important concepts that control the utilization of the Fap Turbo methodology. It channels some of the relevant points that separate between the issue of foreign currency trading and the channels for making the section independent. Considering all matters, it progresses some of the key processes that distinguish between the various trading processes.
By:
Brain Smithl
Businessl
Jan 23, 2011
Loan Modification Tips and Tricks to Deal With your Lender
Are you having trouble with your mortgage? Has it adjusted and you cannot afford the new payment? Were you placed into a bad loan and you can’t refinance into a good one?
By:
quintusl
Businessl
Dec 15, 2007
lViews: 3,020
Add new Comment
Your Name: *
Your Email:
Comment Body: *
Verification code:*
* Required fields
Submit
Your Articles Here
It’s Free and easy
Sign Up Today
Author Navigation
My Home
Publish Article
View/Edit Articles
View/Edit Q&A
Edit your Account
Manage Authors
Statistics Page
Personal RSS Builder
My Home
Edit your Account
Update Profile
View/Edit Q&A
Publish Article
Author Box
quintus has 1 articles online
Articles Categories
All Categories
Advertising
Arts & Entertainment
Automotive
Beauty
Business
Careers
Computers
Education
Finance
Food and Beverage
Health
Hobbies
Home and Family
Home Improvement
Internet
Law
Marketing
News and Society
Relationships
Self Improvement
Shopping
Spirituality
Sports and Fitness
Technology
Travel
Writing
Agriculture
Ask an Expert
Business Ideas
Business Opportunities
Corporate
Customer Service
Entrepreneurship
Ethics
Franchise
Fundraising
Home Business
Human Resources
Industrial
International Business
Leadership
Management
Negotiation
Networking
Non Profit Organizations
Online Business
Organizational
Outsourcing
Presentation
Project Management
Public Company
Public Relations
Sales
Six Sigma
Small Business
Strategic Planning
Team Building
Training
]]>
Need Help?
Contact Us
FAQ
Submit Articles
Editorial Guidelines
Blog
Site Links
Recent Articles
Top Authors
Top Articles
Find Articles
Site Map
Mobile Version
Webmasters
RSS Builder
RSS
Link to Us
Business Info
Advertising
Use of this web site constitutes acceptance of the Terms Of Use and Privacy Policy | User published content is licensed under a Creative Commons License.
Copyright © 2005-2011 Free Articles by ArticlesBase.com, All rights reserved.
Popularity: 1% [?]
No related posts.
Related posts brought to you by Yet Another Related Posts Plugin.
