5 Mortgage Loan Modification Questions

Can Homeowners in Default do a Loan Mod?

Yes, any homeowner can apply for a loan mod. Typically however, lenders stall the process and are making loan modification more and more difficult. That is why our attorneys are so successful. There is a bunch of legal persuasion necessary in this process. If a homeowner is in foreclosure, our attorneys need a minimum of 12 days prior to the foreclosure sale to get the foreclosure stopped. The homeowner must know that a modification process does not automatically halt a foreclosure. Homes have been foreclosed on in the middle of a modification application before. One more reason to have an expert attorney in your corner.

Please realize that each lender can have their own requirements. Some lenders require that the homeowner be 30, 60, and even 90 days behind before they will do a loan modification. This is becoming increasingly a rare occurence, however. It's one more aspect that frustrates today's distressed homeowners with the banking system; but also one more reason to have our attorney in your corner. I need to hear from you as soon as possible.

Can you do a  Forensic Mortgage Loan Analysis?

Yes, we can. We find, however, that the best approach to these lenders is to get the loan modification approved first. Forensic analysis may slow down the modification. If you, the borrower will benefit, then we will absolutely recommend pursuing a forensic analysis. Lenders are much more amenable to document adjustment after the modification is submitted. Please read more about Mortgage Loan Forensic Analysis.

What is the Default Rate of Homeowners Who have Done a Loan Mod?

80% of homeowners who do a loan mod WITHOUT an attorney group go back into default after successful completion of a loan mod. It appears this is because the terms negotiated were doomed to failure.

40% of homeowners who do a loan mod WITH an attorney group have gone back into default after successful completion of their loan mod. We can't speak for the effiency of those other attorneys. We can speak for our system and evaluation of the homeowner to afford the terms we negotiate for them. We see no reason for you to attempt modification twice.

Why is this? We see that attorney groups do a much better job at loan modification with the lenders than the homeowner or investor can do for themselves. Attorneys get better interest rate reductions, better terms, and thus a better solution for the homeowner. M123 focuses on getting affordable terms the first time.

We are better than the national average because we accept files that we believe we can get a feasable solution accomplished. If we don't believe you will be able to make the payments that we are negotiating, we don't do the modification.

Why not just file Bankruptcy?

Statistics show that once, and if, a bankruptcy is discharged; 80% of homes then lapse into foreclosure anyway. Bankruptcy as an alternative almost never works. It just stalls the inevitable. You're much better off pursuing a mortgage loan modification in the first place.
Or explore a Short Sale. (Call me at 970-242-2600 for that, too.)

What Are the Typical Results of Our Loan Mods?

NOTHING IS GUARANTEED! This is critical to understand. No reputable modifier will promise any specific result before the modification is submitted. Our ultimate objective is to help you affordably keep your home. M123 begins by looking at a homeowner's debt-to-income ratio and works from there to get new terms for your mortgage that you can handle.  Self-employed homeowners supply a Profit & Loss statement.

That being said, M123 is typically negotiating the following:

• Interest rates: 4%-6% (as low as 2%)
  
• ARMs changed to 30 year fixed rate mortgages
• Foreclosures stopped
  
• Principal reduced
  
• Payments reduced

Again, these terms CANNOT and WILL NOT be guaranteed to a homeowner before modification! Every lender is different. I simply tell you this so you know what we've done to date. Obviously, payments would be reduced due to interest rate reductions.

OK, so there are actually six questions here, but the page started out with five and I'm too lazy to change all the titles and links. Just call me, OK?