WITH ALL THE LOAN MODIFICATION SCAMS OUT THERE, IS THERE SUCH A THING AS A REPUTABLE, HONEST LOAN MODIFICATION COMPANY?
We have all heard the news lately…”loan modification scam takes advantage of another homeowner”, or “call the lender yourself and don’t pay a third party to help you with your modification”. The news loves a bad story and makes one wonder if there are any good, honest loan modification companies out there?
THE POLITICALLY CORRECT THING TO SAY
Now, at www.adjustMYLOAN.com we absolutely think it is a good idea to be proactive when you are a homeowner facing a financial hardship and you believe you cannot make your upcoming mortgage payments. It seems like the natural thing to do (and the politically correct thing to say) and call your lender right away when you are experiencing problems paying your mortgage. The problem is that many homeowners who are not educated in the real estate / mortgage / loss mitigation world do not know what division to call, what to say, and most importantly, what financial information to disclose during those phone calls. What happens is many homeowners fall into three categories when they try and do a home loan modification themselves…”the disconnect”, the “sorry you don’t qualify”, or the worst one of them all the “here’s your crappy modification agreement”.
The “disconnect” is where you call and get transferred over and over, wait on hold forever, and eventually get disconnected. Do this a few times and the frustration is overwhelming. People already have a fear of confrontation and hate waiting on hold forever so many times this is enough to get them to quit.
The “sorry you don’t qualify”is when an uneducated homeowner calls their lender out of desperation and doesn’t understand that the lender is going to ask them for their financial information…sometimes right then and there over the phone. The poor homeowner discloses financials on-the-fly and ends up de-qualifying themselves because they don’t know what loan-to-value / debt-to-income ratio’s the banks are looking for. Again..the frustration is overwhelming because no matter if they qualify or not the fact remains they can’t afford their current payment. The loss mitigation departments at most major lenders are extremely slow and it takes the average consumer a couple of months to get any answers and by this time it might be too late! Lastly, the call centers at these banks are sometimes overseas and we all know how frustrating it can be when you get someone that barely speaks English telling you (without any feeling of empathy) that there is nothing they can do for you!
The “here’s your crappy modification agreement” is so common and it makes us nauseous. Many homeowners don’t have the time to educate themselves on the in’s and out’s of loss mitigation before attempting to modify their own home loan. They don’t understand the processes, how to get to the decision makers, or the fact that you can counter-offer and get better terms. Most wear out after talking to a un-empathetic loss mitigation negotiator at the bank and end up accepting whatever terms they can just to be done with it. Remember, the banks want to mitigate their loss…that’s why its called loss mitigation! They definitely don’t have your best interest in mind otherwise they would make it super easy to complete this process. If you don’t have a real estate / mortgage background, or you don’t have the time going back and forth with your lender(s) for months and months, contract the work out to a trained expert in loan modification negotiating.
THIS ONE IS OUR FAVORITE
How about this one…“call a HUD certified counselor and get a FREE modification”. While this advice sounds good, we all can agree that nothing good is cheap and seldom anything cheap is good! Free help from a counselor is just that…FREE help (not them actually doing it for you). Anyone can gather the necessary paperwork and submit it to the lender…what a homeowner needs is an aggressive person (or team of people) to fight for the best loan terms possible and not just a paperwork submission helper. Every “financial expert” on the news is telling homeowners to avoid paying up-front fee’s to modification companies and go to a HUD certified counselor for free help. These same people are so far removed from any financial struggles that they don’t feel the severity of the situation. It’s easy to give advice when you are not the one struggling financially, or fighting with your spouse everyday over finances. HUD counselors do not have the time to spend 40-50-60 hours fighting to get you better mortgage terms. In most cases they help you gather the necessary documents and submit them to the lender. Then whatever modification (if any) the lender gives after months and months of waiting is what you will have to accept. NOT AT ADJUSTMYLOAN.COM. We spend all the time necessary to aggressively fight to get you the best loan terms available.
NOTE: HUD Counselors do help you submit the correct financials so in that instance they are a good resource if you do insist on doing this yourself just don’t expect them to do the actual negotiations for you!
THE LOAN MODIFICATION MERRY-GO-ROUND
There was a news story about a congresswoman who tried and negotiate her own loan modification only to get the run-a-round and give up frustrated. CLICK HERE to watch the video. Yes, it is possible to get your own modification, but statistics prove that almost 40% of homeowners who achieve their own loan modification re-default within 6 months because the lender(s) put them into a half ass modification that was in the banks best interest…not the homeowners. DON’T BE A STATISTIC. There are loan modification companies out there who actually do the work they are promising to do and all it takes is some research to find the right one.
OUR SUGGESTIONS TO FINDING THE RIGHT LOAN MOD COMPANY
MAKE SURE THE PERSON YOU ARE DEALING WITH HAS A PHYSICAL BUSINESS ADDRESS AND BUSINESS PHONE NUMBER.
GET COPIES OF RECENTLY NEGOTIATED LOAN MODIFICATION AGREEMENTS TO PROVE THEY CAN DO THE JOB
DO NOT PAY A LARGE UPFRONT FEE…A SMALL FEE IS OKAY BUT IT SHOULD COME WITH A MONEY-BACK GUARANTEE IF THE MOD IS NOT SUCCESSFUL
MAKE SURE THE COMPANY YOU ARE USING HAS AN ONLINE TRACKING SYSTEM SO YOU CAN SEE THE PROGRESS OF YOUR LOAN MODIFICATION AT ALL TIMES
MAKE SURE YOU MEET THE COMPANY AT THEIR OFFICE AND SEE THAT THEY ARE CONDUCTING BUSINESS (GET TO KNOW THE COMPANY)
GET REFERRALS AND TESTIMONIALS TO VERIFY COMPANIES HISTORY
GET COPIES OF ALL PAPERWORK THAT OUTLINES THE BUSINESS RELATIONSHIP
WHAT MAKES ADJUSTMYLOAN.COM DIFFERENT
First and most importantly, we are a full-service (brick and mortar) loan modification company that has been negotiating loan modifications and short sales in Phoenix, Arizona for over 5 years. Our parent company is a member of the Better Business Bureau with zero complaints and can show you completed loan modification agreements between us and almost ever major lender. We are fully transparent and do not hide behind a corporate slogan…we invite you to get to know us in person or through our many videos on our website www.AdjustMyLoan.com. Our website, back-office tracking system, and negotiating processes are unique to us and designed to keep you educated and informed of your loan modifications progress from start to finish. NO OTHER LOAN MODIFICATION COMPANY HAS THE EXPERIENCE, INTEGRITY, AND PROCESSES WE HAVE HERE AT ADJUST MY LOAN. We invite you to get to know us and our professional Loan Modification staff. Lastly, we DO NOT CHARGE any expensive upfront fees for our loan mod service and always offer free consultations to see if you qualify!
Details of President Obama’s stop foreclosure plan “Making Homes Affordable” was released yesterday (March 4th, 2009) and so begins the journey of Government Assisted Loan Modifications! At www.AdjustMyLoan.com we have always been a fan of the Government subsidizing lenders, servicers, and investors for completing loan modifications and think this is a step in the right direction but is it enough? Below we outline some facts of the new plan as well as give you a quick video to watch. About 7-9 million struggling homeowners should qualify for help according to the plan but in won’t help many in states like Arizona, Florida, and California where home prices have declined so much that homeowners are underwater over and above the plans 105% qualifying mark. Also, one noticeable missing piece is a subsidized “Principal Balance Reduction” measure that would reset home values to current market rates! Maybe the future bankruptcy “Cram down” legislation that is trying to get passed right now will force lenders to enact voluntary programs to write down negative equity!
HOMEOWNERS BEWARE…even though this plan is subsidized by the Federal Government it is not a forced program. Lenders can choose to work within the guidelines of the plan or not so remember that your bank still has their best interest at heart and not yours. They could still put you into a loan modification program that does not necessarily have the best loan terms available. By educating yourself on your options or getting professional representation you could walk away with a much better Loan Modification than if you just call your lender directly without first devising a plan.
Now let’s talk about loan modifications:
How Will The Modification Part Of The Plan Work?
In summary, participating servicers will (in order):
•Determine that a loan meets the minimum eligibility criteria (owner occupied, originated before January 1, 2009, UPB equal to or less than $729,750). If yes:
•Obtain sufficient income information to determine if the borrower has a front-end debt-to-income (DTI) ratio of 31%or greater (verbal income may be accepted for initial evaluation subject to verification prior to final approval). If yes:
•Capitalize (add to the loan amount) accrued interest, past due taxes and insurance, delinquency charges paid to third parties (e.g., for inspecting the property), and escrow advances by the servicer - but not late fees or other default fees charged by the servicer;
•Determine how much of an interest rate reduction is required to get the borrower’s mortgage payment to 31% DTI, and if the DTI still exceeds 31% at the rate floor of 2%, modify the loan in other respects specified in the Guidelines;
•Apply a Net Present Value (NPV) test to determine if modification (including the incentive payments) provides the investor with a better financial outcome than foreclosure. If yes:
•Put the borrower on a trial modification at the new interest rate and payment for three months.
•If the borrower is current at the end of the trial modification period, the servicer will execute a modification agreement that includes escrows for taxes and insurance even if the prior loan was not escrowed.
At AdjustMyLoan.com it is business as usual. We are helping more and more homeowners negotiate a reasonable loan modification with their lenders and continue the fight to save as many homes as possible from foreclosure. Many homeowners have questions about this new plan but only time will tell if it really works or not. At the end of the day, it still is a voluntary plan that only affects mainly Fannie and Freddie loans and has strict qualifying measures that could bog down the program. If you are a homeowner trying to navigate your way towards a loan modification, please call our Loan Modification Expertsat 1-800-557-7573 and recieve a FREE LOAN MODIFICATION CONSULTATION.
Borrowers Who Are Current on Their Mortgage Are Asking:
1. What help is available for borrowers who stay current on their mortgage payments but have seen their homes decrease in value?
Under the Homeowner Affordability and Stability Plan, eligible borrowers who stay current on their mortgages but have been unable to refinance to lower their interest rates because their homes have decreased in value, may now have the opportunity to refinance into a 30 or 15 year, fixed rate loan. Through the program, Fannie Mae and Freddie Mac will allow the refinancing of mortgage loans that they hold in their portfolios or that they placed in mortgage backed securities.
2. I owe more than my property is worth, do I still qualify to refinance under the Homeowner Affordability and Stability Plan?
Eligible loans will now include those where the new first mortgage (including any refinancing costs) will not exceed 105% of the current market value of the property. For example, if your property is worth $200,000 but you owe $210,000 or less you may qualify. The current value of your property will be determined after you apply to refinance.
3. How do I know if I am eligible?
Complete eligibility details will be announced on March 4th when the program starts. The criteria for eligibility will include having sufficient income to make the new payment and an acceptable mortgage payment history. The program is limited to loans held or securitized by Fannie Mae or Freddie Mac.
4. I have both a first and a second mortgage. Do I still qualify to refinance under the Homeowner Affordability and Stability Plan?
As long as the amount due on the first mortgage is less than 105% of the value of the property, borrowers with more than one mortgage may be eligible to refinance under the Homeowner Affordability and Stability Plan. Your eligibility will depend, in part, on agreement by the lender that has your second mortgage to remain in a second position, and on your ability to meet the new payment terms on the first mortgage.
5. Will refinancing lower my payments?
The objective of the Homeowner Affordability and Stability Plan is to provide creditworthy borrowers who have shown a commitment to paying their mortgage with affordable payments that are sustainable for the life of the loan. Borrowers whose mortgage interest rates are much higher than the current market rate should see an immediate reduction in
their payments. Borrowers who are paying interest only, or who have a low introductory rate that will increase in the future, may not see their current payment go down if they refinance to a fixed rate. These borrowers, however, could save a great deal over the life of the loan. When you submit a loan application, your lender will give you a “Good Faith Estimate” that includes your new interest rate, mortgage payment and the amount that you will pay over the life of the loan. Compare this to your current loan terms. If it is not an improvement, a refinancing may not be right for you.
6. What are the interest rate and other terms of this refinance offer?
The objective of the Homeowner Affordability and Stability Plan is to provide borrowers with a safe loan program with a fixed, affordable payment. All loans refinanced under the plan will have a 30 or 15 year term with a fixed interest rate. The rate will be based on market rates in effect at the time of the refinance and any associated points and fees quoted by the lender. Interest rates may vary across lenders and over time as market rates adjust. The refinanced loans will have no prepayment penalties or balloon notes.
7. Will refinancing reduce the amount that I owe on my loan?
No. The objective of the Homeowner Affordability and Stability Plan is to help borrowers refinance into safer, more affordable fixed rate loans. Refinancing will not reduce the amount you owe to the first mortgage holder or any other debt you owe. However, by reducing the interest rate, refinancing should save you money by reducing the amount of interest that you repay over the life of the loan.
8. How do I know if my loan is owned or has been securitized by Fannie Mae or Freddie Mac?
To determine if your loan is owned or has been securitized by Fannie Mae or Freddie Mac and is eligible to be refinanced, you should contact your mortgage lender after March 4, 2009.
9. When can I apply?
Mortgage lenders will begin accepting applications after the details of the program are announced on March 4, 2009.
10.What should I do in the meantime?
You should gather the information that you will need to provide to your lender after March 4, when the refinance program becomes available. This includes:
· information about the gross monthly income of all borrowers, including your most recent pay stubs if you receive them or documentation of income you receive from other sources
· your most recent income tax return
· information about any second mortgage on the house
· payments on each of your credit cards if you are carrying balances from month to month, and
· payments on other loans such as student loans and car loans.
Borrowers Who Are at Risk of Foreclosure Are Asking:
1. What help is available for borrowers who are at risk of foreclosure either because they are behind on their mortgage or are struggling to make the payments?
The Homeowner Affordability and Stability Plan offers help to borrowers who are already behind on their mortgage payments or who are struggling to keep their loans current. By providing mortgage lenders with financial incentives to modify existing first mortgages, the Treasury hopes to help as many as 3 to 4 million homeowners avoid foreclosure regardless of who owns or services the mortgage.
2. Do I need to be behind on my mortgage payments to be eligible for a loan modification?
No. Borrowers who are struggling to stay current on their mortgage payments may be eligible if their income is not sufficient to continue to make their mortgage payments and they are at risk of imminent default. This may be due to several factors, such as a loss of income, a significant increase in expenses, or an interest rate that will reset to an unaffordable level.
3. How do I know if I qualify for a payment reduction under the Homeowner Affordability and Stability Plan?
In general, you may qualify for a mortgage modification if (a) you occupy your house as your primary residence; (b) your monthly mortgage payment is greater than 31% of your monthly gross income; and (c) your loan is not large enough to exceed current Fannie Mae and Freddie Mac loan limits. Final eligibility will be determined by your mortgage lender based on your financial situation and detailed guidelines that will be available on March 4, 2009.
4. I do not live in the house that secures the mortgage I’d like to modify. Is this mortgage eligible for the Homeowner Affordability and Stability Plan?
No. For example, if you own a house that you use as a vacation home or that you rent out to tenants, the mortgage on that house is not eligible. If you used to live in the home but you moved out, the mortgage is not eligible. Only the mortgage on your primary residence is eligible. The mortgage lender will check to see if the dwelling is your primary residence.
5. I have a mortgage on a duplex. I live in one unit and rent the other. Will I still be eligible?
Yes. Mortgages on 2, 3 and 4 unit properties are eligible as long as you live in one unit as your primary residence.
6. I have two mortgages. Will the Homeowner Affordability and Stability Plan reduce the payments on both?
Only the first mortgage is eligible for a modification.
7. I owe more than my house is worth. Will the Homeowner Affordability and Stability Plan reduce what I owe?
The primary objective of the Homeowner Affordability and Stability Plan is to help borrowers avoid foreclosure by modifying troubled loans to achieve a payment the borrower can afford. Lenders are likely to lower payments mainly by reducing loan interest rates. However, the program offers incentives for principal reductions and at your lender’s discretion modifications may include upfront reductions of loan principal.
8. I heard the government was providing a financial incentive to borrowers. Is that true?
Yes. To encourage borrowers who work hard to retain homeownership, the Homeowner Affordability and Stability Plan provides incentive payments as a borrower makes timely payments on the modified loan. The incentive will accrue on a monthly basis and will be applied directly to reduce your mortgage debt. Borrowers who pay on time for five years an have up to $5,000 applied to reduce their debt by the end of that period.
9. How much will a modification cost me?
There is no cost to borrowers for a modification under the Homeowner Affordability and Stability Plan. If you wish to get assistance from www.AdjustMyLoan.com visit their website or call their toll free number 1-800-557-7573. They do not charge upfront fee’s for their loan modification program.
10. Is my lender required to modify my loan?
No. Mortgage lenders participate in the program on a voluntary basis and loans are evaluated for modification on a case-by-case basis. But the government is offering substantial incentives and it is expected that most major lenders will participate.
11. I’m already working with my lender / housing counselor on a loan workout. Can I still be considered for the Homeowner Affordability and Stability Plan?
Ask your lender or counselor to be considered under the Homeowner Affordability and Stability Plan.
12. How do I apply for a modification under the Homeowner Affordability and Stability Plan?
You may not need to do anything at this time. Most mortgage lenders will evaluate loans in their portfolio to identify borrowers who may meet the eligibility criteria. After March 4 they will send letters to potentially eligible homeowners, a process that may take several weeks.
If you think you qualify for a modification and do not receive a letter within several weeks, contact your mortgage servicer or www.AdjustMyLoan.com to see if you can participate in the program. Please be aware that servicers and counseling agencies are expected to receive an extraordinary number of calls about this program.
13.What should I do in the meantime?
You should gather the information that you will need to provide to your lender on or after March 4, when the modification program becomes available. This includes
· information about the monthly gross income of your household including recent pay stubs if you receive them or documentation of income you receive from other
sources
· your most recent income tax return
· information about any second mortgage on the house
· payments on each of your credit cards if you are carrying balances from month to month, and
· payments on other loans such as student loans and car loans.
14.My loan is scheduled for foreclosure soon. What should I do?
14. Home Loan Services, Inc. (d/b/a First Franklin Loan Services & NationPoint Loan Services)
800-500-5022
https://www.viewmyloan.com , www.nationpoint.com
Above are the majority of major lenders we are negotiating Loan Modifications with. As more and more lenders realize that Loan Modifications are the solution to their deepening default rate, we are able to help more and more homeowners avoid foreclosure. Even if you do not see your lender’s name on this list, more than likely we have worked with them and can help you lower your monthly mortgage payment with a Loan Modification. For a FREE LOAN MODIFICATION CONSULTATION call:
AdjustMyLoan.com Specializes In Countrywide Loan Modifications! Get The Professional Help You Deserve…Call AdjustMyLoan.com Today!
Countrywide Home Loans might just be the worst servicer in America!!! YES THEY ARE DOING WORKOUTS….NO THEY ARE NOT AS EASY TO GET AS YOU MIGHT THINK! If you are struggling to make your monthly mortgage payments, and you have a Countrywide home loan, then call the Arizona Loan Modification Experts at AdjustMyLoan.com and get a Countrywide Loan Modification done today. Dealing with a large lender such as Countrywide Financial can be frustrating and time consuming. While Countrywide is offering loan work out plans to many of it’s distressed homeowners, not everyone will qualify. Take a second and educate yourself on what a lender like Countrywide is looking for and what documentation you will need when requesting a Countrywide Loan Modification.
First, realize that when you initially call your lender you are going to be speaking with an employee that has zero ability to help you in any way except regurgitate information! Stay calm no matter what they tell and keep pressing the fact that you are no longer able to make your mortgage payments and need to qualify for a workout / loan modification. Ask them to send you out the necessary documentation you will need to fill out and DO NOT GIVE THEM FINANCIALS OVER THE PHONE AT THIS TIME. You want to take some time and develop a strategy that will support your loan modification request and if you start giving them information this soon, you might shoot yourself in the foot and get denied a loan mod because you make too much money!
Second, gather the following documentation you will need to support your case:
Paycheck Stubs (at least 2)
Tax Returns (2 years)
Recent Bank Statements
Write A Hardship Letter Explaining Your Situation (see link for examples)
Any Documents That Support Your Case Such As Death Certificates, Medical Bills, Lawsuit Paperwork etc.
You need the above documents to support your request and are part of a Countrywide Loan Modification package. By creating a complete professional looking proposal, you are making the home retention negotiators job easier and they will be more likely to work with you if you try and do this on your own!
Third, decide if you have the time - energy - and skill set to deal with your own Countrywide Loan Modification. If you do, fill out the forms the bank sends you and try and negotiate it yourself. But if your like most people, you will want to hire a professional representative with real negotiation experience to help you get the best loan terms possible. They layers of beurocratic bullcrap as well as the fact that Countrywide is mainly a Servicer for investors on Wallstreet make the negotiation process difficult, time consuming, and most of all…FRUSTRATING.
AdjustMyLoan.com has hired negotiators directly from Countrywide’s Loan Modification department. We figured if we wanted to get the job done right, hire directly from the lenders you are trying to negotiate with! 1,2,3,4,5,6,7…. The list keeps getting bigger of Countrywide Loan Modifications we keep getting done because we understand their process, we know what they are looking for, and yes, we DO HAVE INSIDE CONTACTS AT THE HOME RETENTION DEPARTMENT!
In Arizona, 13,000 homeowners will be receiving a letter from Countrywide offering a loan modification because our great foreclosure fighting Attorney General Terry Goddard who helped spearhead a settlement that uncovered Countrywides deceptive lending practices! If your one of the 13,000, then you should send Terry Goddard some flowers and a thank you card…if your not, you should call AdjustMyLoan.com and get some professional help.
AdjustMyLoan.com is a national loan modification company based out of Phoenix, Arizona. Our professional Countrywide Loan Modification Experts can help you audit, package, propose, and negotiate a Countrywide Loan Modification today. Call our toll free number 1-800-557-7573today and receive a FREE COUNTRYWIDE LOAN MODIFICATION CONSULTATION.
ADJUSTMYLOAN.COM EXPLAINS THE IMPORTANCE OF A WELL WRITTEN LOAN MODIFICATION HARDSHIP LETTER!
When requesting a Loan Modification from your lender(s) be prepared to create a loan modification hardship letter explaining your circumstances. This explanation is one of the most important parts of a loan modification proposal and is one of the first things your lender looks at. You only have one shot at convincing the bank that your situation warrants a loan modification so take time when creating your hardship letter. Have your Loan Modification Hardship Letter clear and to the point. No more than 1-2 pages, and handwritten is best. Tell them what was causing you to struggle, what you are doing or did to overcome the problem, and exactly what you want them to do for you. Below are two examples of Loan Modification Hardship Letters that should help you get an idea of what most banks are looking for:
Loan Modification Hardship Letter #1
August 10th, 20__
Regarding
Borrower: John and Rebecca Smith
Subject Property: 555 N. Baseline Rd. Mesa, Arizona 85202
1st TD With Countrywide Loan Number: ##########
2nd TD With National City Mortgage Loan Number: ##########
Dear Lender / Servicer:
I am writing this letter to explain our family’s unfortunate situation that has caused us to become delinquent on our mortgage. We have tried everything in our power to keep current on our payments but unfortunately since our interest rate adjusted, we have fallen behind and would like you to consider working with us to reduce our monthly payments.
The main reasons that caused us to become late are a decrease in our income, increase in our monthly obligations, current market conditions, our adjustable rate mortgage, and our inability to refinance.
I work as a waitress and my husband works at a marketing manager for a local screen printing company. Most of my income has been generated by tips and has decreased dramatically due to the unfortunate economic situation. My husband job is secure and he has been with the same company for 2 years. We have a 3 year old son and cannot afford daycare in order to get a second job.
For the past several months we have been cutting back on our misc. expenses. We no longer have premium cable, go on vacations, or eat out. Our credit cards are getting maxed out due to us paying our mortgage on them and can no longer keep that up. We have currently missed 2 payments and wish to work out a payment plan with you after you reduce our rates to something we can afford.
My husband and I consulted mortgage professionals regarding a refinance but due to our lack of equity, the falling home prices in our community, and our lack of assets we were denied.
I have no other choice but to ask you to please consider my request for a loan modification. My family and I would really be grateful if you can help us work out a payment schedule we could afford. We do not want to lose our home. We wish to continue making mortgage payments on time for the remainder of our loan.
Sincerely and Respectfully,
Rebbecca Smith
Loan Modification Hardship Letter #2
Date
Lender name
Lender address
Attn: Loss Mitigation Department
RE: Borrower name, Loan number
To Whom It May Concern:
We are writing to you to explain our current financial situation that has caused us to default on our loan agreement. We don’t want to lose our home and will anything we can to work with you to remedy the situation and find a solution that will benefit us both. We first became delinquent on our mortgage payments due to [INSERT YOUR REASON HERE BRIEFLY]. We’ve tried to bring the account current, but haven’t been able to catch up by paying the full amount due. The trouble started approximately [INSERT DATE HERE] and we believe that this is a [TEMPORARY or PERMANENT] hardship.
We are now in a better position and would like to work out a plan to begin making payments again and stay in our home. We are hard working, responsible individuals willing to work to keep our home. We would appreciate it if you would consider a modification to our existing loan terms in order to lower the monthly payment and include some or all of the past due amount. We’ve created and implemented a new budget for our family and we are confident that we would be able to meet the new, lower monthly payment every month without fail. We’d appreciate any help or suggestions you could give to us regarding this matter. It’s an extremely difficult time for our family and we’d really like to get the issue resolved as soon as possible.
We hope these examples help you create a well written Loan Modification Hardship Letter that gets you the loan modification you deserve. If you need help with your Loan Modification, AdjustMyLoan.com is a national Loan Modification Company based out of Phoenix, Arizona that can help you audit, package, propose, and negotiatiate a Loan Modification on your behalf. Visit our website www.AdjustMyLoan.com or call our toll free phone number 1-800-557-7573 today.
WWW.ADJUSTMYLOAN.COM ANSWERS THE MOST FREQUENTLY ASKED LOAN MODIFICATION QUESTIONS!
WHAT IS A LOAN MODIFICATION?
Sometimes called Loan Restructuring or Mortgage Modification, a Loan Modification is an adjustment to your existing loan by your lender(s) as a response to your long-term inability to pay your mortgage. Loan modifications typically involve an adjustment of your interest rate, an extension of the length of the term of the loan, or a principal balance reduction all resulting in LOWER MONTHLY MORTGAGE PAYMENTS! A lender would choose to modify your loan if the cost of doing so would be less than the cost of default and foreclosure.AdjustMyLoan.com specializes in Loan Modifications and forbearance agreements.
CAN I ATTEMPT A LOAN MODIFICATION MYSELF?
Although in theory you could do your own loan modification, consider this: Do you have the experience, time, legal understanding, and energy to take on your own negotiations?Your lenders are never going to offer you the best loan terms right up front!In fact, they are going to push you in a direction that is in their best interest.
The loan modification experts at AdjustMyLoan.com audit, package, propose, and negotiate your Loan Modification to get you the absolute best loan terms available.
WHAT QUALIFIES ME FOR A LOAN MODIFICATION?
While there are some basic Loan Modification qualifications, each lender has their own requirements that continue to change.Typically, if you are stuck in a mortgage with a high interest rate, have a verifiable hardship that is preventing you from paying your mortgage, and provable monthly income you will qualify for most lender programs.
What if I am current?
Being behind on payments definitely helps motivate your lenders, however we have accomplished loan mods for homeowners with current mortgage payments.
Both primary and investment properties could qualify and your best bet is to call the loan modification experts at AdjustMyLoan.com for a Free Loan Modification Consultation: 1-800-557-7573 toll free or 480-968-5626 local.
HOW LONG DOES THE LOAN MODIFICATION PROCESS TAKE?
In most instances, a loan modification takes 60-90 days…but it could take longer, especially if we are requesting a principal balance reduction and your lenders legal department gets involved.By hiring professionals like those found at AdjustMyLoan.com you are assuring the fastest resolution possible.
You lender(s) would choose to accept a loan modification proposal if the cost of doing so was less than the cost of short selling or foreclosing on your home.In most cases a loan modification can be a win-win situation for both you and your lender…and a proper proposal is the key to conveying your situation.
Loan modification requests are paperwork intensive, and AdjustMyLoan.com’s Loan Modification Negotiators build proposals specific to your situation.
WHAT IS PREDATORY LENDING?
Predatory Lending is a term that refers to various illegal and immoral activities many lenders engage in when originating a home loan. Examples of predatory lending include equity stripping, asset-based lending, non-disclosure, and the notorious interest rate bait and switch.
These practices are a major cause of foreclosures, poor credit and unmanageable financial burdens. A Forensic Loan Audit by a trained professional can uncover these predatory violations and AdjustMyLoan.com conducts these audits on every qualified file!
WHY SHOULD I CHOOSE ADJUSTMYLOAN.COM OVER OTHER LOAN MODIFICATION COMPANIES?
AdjustMyLoan.com is a nationwide loss mitigation company based out of Phoenix, Arizona that specializes in loan modifications and forbearance agreements. We are a member of the Better Business Bureau and we have hundreds of happy clients and testimonials. In addition, we offer ongoing training for our professional staff and a tracking system so you can follow your Loan Modification progress. Our Loan Modification Blog is packed with loan modification news, do-it-yourself loan modification tips, and current loan modification programs. Lastly, we charge no upfront fee for our loan modification service and have a solid money back guarantee. If you are interested in a FREE LOAN MODIFICATION CONSULTATION, please visit our website www.AdjustMyLoan.com.
Negotiating 101 – Tips For Negotiating Your Own Loan Modification!Dealing With Objection
This section is dedicated to the psychology of negotiating LOAN MODIFICATIONS. In most instances, when you first call your lender, they will be helpful…then something happens! They switch from customer service role, to debt collector role and things become interesting. Obviously the main key is to always stay calm and remember that they did not put you in this position. Also remember that they are overwhelmed with cases, get yelled at all day long, and do not get paid very much money. Below are some tips and tricks that we have found useful when dealing with loss mitigation.
Building Trust, Rapport, And Satisfaction
If you are entering into a negotiation, you will be in a much stronger position if you can convince the other side of your qualifications. This is why we spend so much time doing our research with the INCOME / EXPENSE WORKSHEET and running COMPS. Your first priority is to convince the decision makers that you can do what you propose. The whole point of this is to build trust! Next, spend some time building a rapport with the negotiator. Ask about where they are located, how busy they must be, ask them about their background and experience, even talk about your family. The more of a real person they view you as, and greater the chances they will go to bat for you when you need them to. Lastly, get ready for some flexibility. You don’t want to be thought of as a deal breaker, but a deal maker who understands that you must create a mutually beneficial relationship that both you and the bank are okay with!
Dumb Is Smart
Remember, things are not always what they seem! Sometimes it is a good idea to play “dumb” to gain more information from the other side that they might not volunteer if you are a Mr. Know-It-All! Listening is the key to this concept, so even if you have a razor sharp mind, play “dumb” and gain the strategic advantage.
You Have Got To Do Better Than That
If in your negotiation you reach a gap that you are not sure how to bridge, a simple statement “you have got to do better than that” can work wonders. The point of this is to get them to the point where they say “this is the best that we can do for you”. This does not cost you anything and is a good way to push the envelope without causing a fight.
Take It Or Leave It
If your lender tells you that this is the deal “take it or leave it”, you do have some options. Obviously, you could take or leave the deal depending on your situation. Before you do, first try and change the parameters of the discussion by offering an agreement with an alternative. Let’s say you are trying to get a 3 month forbearance, a principal balance reduction of $50,000, and an interest rate adjustment from 7% to 6%, and they say we will reduce your interest rate and that is it…”take it or leave it”. A good response could be “okay, I might accept the lower interest rate if you can give me a 6 month forbearance on my payments to help me cover the lost benefits of the principal balance reduction.” Now you have taken back control and changed the pace of the negotiation.
The Two Dreaded Personalities
1. Mr. Intimidator
Here is a quick story. We were once negotiating a short sale with a loss mitigator from one of the nation’s largest banks. We sent in the short sale packet and made our initial phone call. The loss mitigator claimed that she never received the packet and asked us what the offer was for. We told her and she immediately yelled “this is an insult….do not call me back until you have a higher offer” and then hung up. She did not even see the paperwork, the statistics, or the offer yet! We knew instantly we were dealing with a Mrs. Intimidator. We tried calling back and every time she would not even let us speak more than a few sentences and then she would cut us off and say “I told you to get me a higher offer…you are wasting my time so don’t call me back again until you get something higher.” This posed a huge problem because the offer was actually a really good offer…she was in Ohio and we were in Arizona, so she had no Idea what market values were or were doing (declining). Everytime we called her we stayed calm even when she yelled at us.Finally, we called back about 2 weeks later and as fast as we could talk (before she hung up on us), we told her how hard we were working, everything we could about the family losing their house, how market values had declined, regurgitated market statistics such as foreclosure rates and short sales in the neighborhood, and told her that if she does not take a second look at the numbers we were going to let the house foreclose. She said she did not care and hung up. We waited and the next day she called us back and apologized for her attitude. She claimed she thought long and hard about this family’s situation and from that point on was our best friend. Literally overnight the whole tone and pace of the negotiation changed for the better. We had the auction postponed, got an acceptance for our short sale, and completed the transaction. She realized that bullying us around was not the answer and changed up her strategy!
2. Mr. Know‐It‐All
This is the most difficult personality type to deal with. These are the people that you cannot tell anything to. They can be in another country and claim to know exactly what is happening here in Arizona. They have done this a thousand times and you are just another file they have to get finished before the end of the day! Flattery with the know-it-all can get you anywhere you want to go. Once the know-it-all is convinced of their superiority, their guard goes down. The key here is to give minimal information and many “you know” statements. For example, say something like, “with the declining housing market and my loss of all my equity, I cannot afford my new interest rate. You know what is typical since you have done this a thousand times. Let me send you a proposal that you are familiar with and we can use that.” Also, do not challenge them directly, this will only infuriate them. Instead stroke their ego!
Last Piece Of Advice
If you come to a standstill with your assigned home retention mitigator, you can always attempt to move it up the chain of command and speak with their supervisor. In most cases, your negotiator will not volunteer their contact info so you may have to call customer service and ask for the manager of _____________ (your negotiator). It may be a good idea to ask for the name of your negotiator’s manager’s phone number on your initial contact for your file.
CONTACT ADJUSTMYLOAN.COM IF YOU GET STUCK
If you still stuck, AdjustMyLoan.com is a national LOAN MODIFICATION COMPANY based out of Phoenix, Arizona. The Loss Mitigation Experts, professional LOAN MODIFICATION NEGOTIATORS, and affiliated Forensic Loan Auditing Attorney’s at AdjustMyLoan.com are always here to help if you get to a point where you cannot handle the LOAN MODIFICATION yourself. We have years of loss mitigation experience and can help you audit, package, propose, and negotiate your LOAN MODIFICATION. We are also a member of the Better Business Bureau, have a log-in system so you can see your LOAN MODIFICATIONS progress, charge NO UPFRONT FEE’S, have a MONEY BACK GUARANTEE, and have many happy client referrals for you to review. We understand that the hardest part for a homeowner to do is remove all emotions fromt he negotiation. If you need us, just give us a call at 1-800-557-7573 and WE CAN STEP IN AND GET THE JOB DONE!
