Why is there a mortgage crisis?

For years now, Lenders have given loans to borrowers without considering the borrower’s ability to pay off the loan.  When property values were increasing every year, this wasn’t a problem but now property values have shrunk significantly so the homeowner is trapped, unable to sell their house at a decent value, and at the same time, unable to pay their loan for a number of reasons that may have recently arose in our terrible economic times or existed at the time of purchase but was ignored by the Lender. 

What is a loan modification?

When your lender changes the terms of your mortgage in order for you to be able to pay off your loan.  The modification can be a reduction in the interest rate, forgiveness of a portion of the principal or extension of the maturity date of the loan.

Are you a loan modification candidate?

• You tried to refinance but got turned down because you don’t qualify under the stricter lender guidelines.
• Suffered a hardship- something significant has occurred in your life and you no longer have the means to pay the monthly mortgage. 
• Your home value has fallen- so now you owe more than your house is worth.
• You have less money than you predicted you would and just can’t afford the mortgage.

What are some examples of hardships that may be considered by the lender?

• Loss of job
• Reduced income/salary
• Death of spouse, borrower or co-borrower
• Incarceration
• Divorce/Separation
• Military duty
• Serious Illness
• Medical bills  

Are you a good bankruptcy candidate?  

If you have both secured (real estate) and unsecured (credit cards) and you can not afford to keep up with all of your payments, you may qualify to file Chapter 7 or Chapter 13 (reorganization) protection under the Bankruptcy Code.  If you want to keep your home in Chapter 13 (reorganization) cases if the appraised value of your home is below the combined loan values, other than the 1^st mortgages, other mortgages, such as the 2^nd or 3^rd can often get wiped off.  

Are you a good short sale candidate?

If your home appraises for less than your combined loan amount and you do not want to keep your home.

Example: your house is worth $200,000 but you owe $400,000 and you don’t want to keep your home you can be a candidate for short sale.  A short sale is when lenders agree to receive an amount less than the loan amount from the proceeds of the sale of the home.  

Why should you choose us?  

MONEY BACK GUARANTEE: If your loan modification is denied, we will    return your money to you (excluding a minimal processing fee which we charge only if your modification request is denied.).

WE ARE A ONE STOP SHOP: Since we are a law firm, we won’t abandon you if your modification is denied.  If you choose, we can take alternative measures to help you through your situation.  These include filing bankruptcy or short selling your house.*   

* Note: Bankruptcy preparation and filing  and/or Short Sales are entirely different processes separate from our Loan Modification Process and will require entirely different fees.  We will provide you with those fees if we determine that these may be better routes for you.  

Why can’t I do it myself?  

Of course you can negotiate with your mortgage company yourself as long as you know the criteria that the mortgage company and lender are looking for.  Beware, even if you call them and ask, they will not tell you!  Since we have been handling real estate transactions and loans since the mid 70’s, we have established a long term relationship with financial institutions and therefore know how to package and present a loan to be successfully negotiated.  There is a certain formula that is necessary to apply to your situation that is complex unless you are experienced and versed in loan negotiating.  We can also foresee the questions, concerns, and expectations of the lender.  

The other problem with doing it yourself is that often times a homeowner will call their lender and explain their situation to them and the lender will deny them and the homeowners then believe that they have simply not qualified and that if they were qualified then they would have been accepted.  This is NOT true.  There is a key to demonstrate how you are qualified and if you don’t know it, then regardless of how dire your situation is, you will be denied when in fact you shouldn’t be.   Even more, many lenders will say no in the initial phone call and once you pester them over and over again for days – sometimes months- they may say yes.  Do you really have the time to keep calling them and tell your story over and over again?  Why not put that burden on our shoulders?