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, use programs such as Easy Loan Modification 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. A professional may be able to help you secure a much better deal in a quicker timeframe than you could on your own due to experience and special relationships.

If you do seek a professional help, it does not necessarily need to be an attorney, unless perhaps you were a victim of shady lending practices or predatory lending. Again you want to ensure the attorney has a clean record and is experienced.

UPDATE: If you’re in California, make sure you know about SB 94, passed October 2009, which prohibits companies for charging upfront fees.

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. 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. 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
• No software download required
• Saves time by simplifying calculations and creating hardship letter

For more information, visit our Easy Loan Modification Web site.

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 organization specializing in loan modification.

Benefits:

• Most loan types qualify
• Performance Based; if you don’t get an approval, you don’t pay
• Available in Most States

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.

The H.E.L.P program assist homeowners who may not have an enforceable Mortgage.

A significant percentage of Mortgages originated during the mortgage boom were either in violation of federal and/or state fair lending laws or were written in a way that  makes them not enforceable. A third party auditing company will audit your Mortgage to unconver these issues.  If violations are found the next step would be to go through the courts or begin discussions, negotiations and/or litigation with an attorney, your Mortgage Holder and/or Lender.

Benefits:

• 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
• May benefit homeowners that owe more than property is worth

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.

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.

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.