Should You Modify Your Own Loan?

There is no simple answer to this question, but generally someone who is a good candidate for modifying his or her own loan is perseverant and does not take “no” for an answer.

It’s not necessarily easy modifying your loan — although it’s getting easier. In some cases, it may be relatively painless, but sometimes a professional can secure much better terms for you.

If you do decide to do it on your own, sign up for an educational course like the curriculum offered by EZ Loan Mod 123 so you at least have the tools at your disposal to obtain the loan modification you’re entitled to.

Now, if You hire a pro, make sure you get a good one! There are a lot of bad ones out there that are just trying to make a buck on people who are in a very vulnerable situation.

If you do hire legal help, you may want to use a law firm that specializes in loan modification and lender mediation. If you were a victim of shady lending practices or predatory lending, you should definitely consult with an attorney. An attorney may be able to help you secure a much better deal than you could on your own.

UPDATE: If you’re in California, make sure you know about SB 94, passed October 2009.

Should Homeowners Get a Forensic Loan Audit?

Homeowners seem to be at the receiving end these days. But if they do a little planning and learn about certain services, they can stop the dreaded term of “foreclosure” from entering their life!

If they are not facing foreclosure, still they should know about these methods because it can help them to re-negotiate their loan or modify their loan plans. One of the best ways to face lenders is the forensic loan audit, but very few homeowners seem to know the term.

The first image that may come to your mind when you hear this term is a group of people dressed as “CSI”. Well forensic loan audit may not be as glamorous or exciting as that kind of forensic investigation, but still, it has its own charm.

To understand the importance of this kind of audit, first you have to understand the process of lending itself. There are various state and federal-level violations that four out of four lenders regularly commit, whether knowingly or unknowingly.

Two such acts are the Truth in Lending Act (TILA) and Real Estate Settlement Procedures Act (RESPA). But how does the homeowner come into the picture when lenders or mortgage companies engage in these violations?

If the violations are there and the borrower can prove it, then the lender has to pay a severe penalty as per rule. That happens irrespective of the fact whether the violation was voluntary or just a simple overlook.

As a result of the violations, a lender may be forced to give back the interest over the period of time in which this violation occurred. If the borrower starts a litigation case on this questionable loan, then the impending foreclosure may be halted and even the mortgage payment may be stopped. If there is no question of foreclosure, the borrower can use this kind of information to curry a favorable deal from the lender.

If the borrower uses forensic loan audit against the lenders and finds a good amount of violations on its part, then that can be used to modify the payment plan even if the borrower has financial difficulties or bad payment history. In fact, the borrower can sue the lenders and claim damages if they can prove through a forensic loan audit that the loan was not legal.

So whether you’re facing foreclosure or finding it difficult to pay your mortgages, go for a forensic loan audit through reputable a company, such as The HDN or law firm. Many of your mortgage or foreclosure problems will be solved by doing this simple yet vital check of your loan papers.

Loan Mod D.I.Y.

Loan Modification Do-It-Yourself (Loan Mod D.I.Y.)

Loan Mod D.I.Y. was created as an inexpensive solution for homeowners who can easily qualify for a loan modification and are prepared to do most of the work on their own.

Benefits:

• Least expensive solution
• Online course and coaching
• NEW: one complementary service through Dec. 31, 2009 by mentioning offer code LMWS1

For more information, visit our Loan Mod D.I.Y. Web site.

Law Firm Loan Modification

Attorney/Law Firm Loan Modification Program

This program helps homeowners who may have a financial hardship but could afford their mortgage with a loan modification. We refer clients to a trusted attorney or law firm specializing in loan modification.

Benefits:

• Most loan types qualify
• Other legal services available, including bankruptcy
• Have legal representation for a fraction of the typical cost
• Available in Most States, including California
• Commercial Loans also accepted

Note: This program is usually the best option for homeowners that have a more complicated scenario, such as multiple properties, foreclosure, self-employed, or feel as if they were misrepresented; however, it’s not for homeowners who have very little or no income and would not be able to qualify for a loan modification. This program is best suited for homeowners who do not have significant negative equity in their properties, as principal reduction is only an option in very limited circumstances.

H.E.L.P. Program

H.E.L.P. Program (Homeowner Education and Legal Protection)

The H.E.L.P program assist homeowners who may have been victims of predatory lending or put into so-called “toxic” loans.

A significant percentage of loans originated during the mortgage boom were in violation of federal and/or state fair lending laws. We provide you with a forensic loan audit to unconver these violations and therefore determine if the lender is liable for damages.  If violations are found you the next step would be to contact the lender and/or an attorney to begin discussions, negotiations and/or litigation. 

Benefits:

• May increase your chances of a loan modification.
• Shifts the power from the lender to the borrower.
• Provides the information that an attorney would require to take on such a case.
• Allows you to exercise your rights as a consumer and borrower against the lender.

Note: The potential benefits of this program are significant, but the process can be lengthy, so it’s not necessarily suited for someone who wants a quick fix.

The Unthinkable: Foreclosure

The foreclosure process varies from state to state and is dependent upon whether your state is a judicial or non-judicial state and whether your state uses mortgages or deeds of trust for the purchase of property. Most states that use mortgages are judicial states, while most states that use deeds of trust, are generally non-judicial states.

In judicial states—of which there are 22 states—lenders must pursue foreclosure through the courts. Once a lender has exhausted its attempts to resolve the debt directly with the borrower, the attorney for the lender files a lis pendens or “pending lawsuit” with the court.  The lis pendens serves as notice to the public that the lender has filed a lawsuit against the borrower. 

Lenders pursuing foreclosure against borrowers in non-judicial states—of which there are 28 states—do not need to use the courts to foreclose on your property. Lenders retain a “power of sale” right that enables them to foreclose without going to court. They are required to notify the borrower with a Notice of Default, or NOD, and a Notice of Sale (NOS) prior to selling the home or transferring ownership.

Fair Lending Laws Protect Homeowners

It’s been reported that up to 70% of mortgages originated during the “boom” years contained violations to the rights of borrowers under federal and state fair lending laws.

These laws protect homeowners, and the discovery and documentation of violations can be invaluable for homeowners trying to negotiate a mortgage or loan modification.  

For example, a violation to TILA, or the Truth in Lending Act, extends a borrower’s right to cancel from three days to three years.

In order to determine if your rights were violated, you may want to consider obtaining a forensic loan audit.