A
homeowner in default has three
"workout options:"
- Reinstatement
- Forbearance Agreement
- Loan Modification
Currently,
there are many loan reinstatements and forebearance agreements, (as
well
as refinance agreements), being
passed off as loan modifications. Be careful.
There
are
four different ways for a homeowner to negotiate a loan modification:
- Homeowner
does their own loan
modification
- Free
- Government
agency - Free
- Investor
specializing in loan mods - Fee based
- Attorney
Groups - Fee based
Homeowner:
Statistically
the
success rate is 20%
when a homeowner attempts their own loan modification. They typically
take 8-9 months. 40% of home-owner negotiated loan modifications have
resulted in higher monthly payments. 80% of homeowner loan
modifications have gone back into default. Half of the loan
modifications we
accomplish are from homeowners who
previously attempted their own modification.
Government
Agency:
There are free government
agencies that will help a homeowner do a loan
modification.
As of April 16, both
CNN.com and PBS TV report that the US Government has processed one
(count 'em, one) single
mortgage loan modification. (See links below)
Ask anyone
who has
worked for the Federal Government.
Remember the last time you tried getting in contact with any free US
Government agency and let me know how it went.
Investor
Specializing in Loan Mods:
Published
results indicate that investors
with the right intentions, know what they're doing, and work hard
at
it are 50-60% successful at completing loan
modifications. We don't know how long those
modifications took, nor can we vouch for optimum modification
results.
Some of these are the
companies that are getting prosecuted for cheating.
Attorney
Groups:
Attorney groups are generally
90% successful at completing loan
modifications.
We are
proven 97%
successful,
and take only 30-60 days. The
terms of our loan mods are better than a homeowner can get on their
own, with
a
resulting
interest rate reduction, loan principal reduced, lower payments,
foreclosures stopped, and with terms that the homeowner can
continue to
make
their payments. We know
the 'Approved Advocate' to negotiate with at every lender. Our weekly
follow-up calls
do not
get put on hold. Our
fee justifies itself typically
in
four to six months. M123
is
monitored and supervised by the US Dept of Justice.
All of this with our
no-risk guarantee.
Less
experienced
loan
modifiers
do not know who to talk to at the various
lenders. Because of that, some lenders may disguise a refinance offer
as a modification.
The offer you may get from your current lender is assuredly a refinance
offer. Refinance is not as beneficial as
modification. The homeowner then suffers a
less-than-optimum mortgage loan
'modification' settlement. M123 has 'Approved Advocates' assigned to
our
attorneys at all of the lenders so this does not happen to you.
You are assured of the best modification available to you
because of our huge volume and legal professionalism.
