San Diego Short Sale and Foreclosure help

Loan Modification

Our legal team of attorneys and paralegals will fight on your behalf against your lender, to obtain the best possible modification of your loan. At the same time, our attorneys will protect you from been scammed or deceived and when necessary, will fight for you, if you are a victim of predatory lending.

You can certainly attempt a loan modification on your own. However, the banks goal is to protect their interest, which may not be the homeowner’s best interest. In addition, bank negotiations may prove to be frustrating and time consuming if you are not familiar with the bank’s system. Our attorneys have negotiated thousands of successful loan modifications and are familiar with lenders policies.

Facts about Loan Modifications:

Statistics show that more than 50% of loans modified in 2008 by the nation's 14 largest banks were delinquent again after six months, putting those homeowners at risk of Foreclosure again. See article.
As a result of numerous unethical business practices, involving fraudulent fees, the California Department of Real Estate has started to crack down on many companies charging fees for loan modifications. See the following article.

Please review the following information carefully, prior to making a decision and contact us if you have any questions.

Frequently Asked Questions about Loan Modifications

01.  What is a Loan Modification?
02.  Do I qualify for a Loan Modification?
03.  What can I expect from a Loan Modification with an Attorney?
04.  How do I get started on my Loan Modification if I want to do it myself?
05.  How long will a modification take?
06.  Will Obama’s 2009 MHA (Making Home Affordable) plan benefit me?

1.  What is a Loan Modification?

A loan modification is a permanent change to the original terms of your loan, producing a more affordable payment. In a modification, a lower payment may be achieved by lowering your interest rate, extending the term of your loan and/or reducing your principal loan balance.

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2.  Do I qualify for a Loan Modification?

A Modification is not automatic; you must meet specific requirements from your lender to qualify. Your lender will require that you document extensive financial information, proving that you are not able to make your current payments. However, the lender will also want to make sure that you do earn sufficient income to make your new modified payments.

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3.  What can I expect from a Loan Modification with an Attorney?

Lower monthly payments
Lower inerst rate
Adjustable (ARM) loan to a fixed rate
Extend the term of your loan
Bring your late payments current
Waive late fees and penalties
Reduce your loan balance
A lawsuit against your lender
Stop a Foreclosure
Avoid Bankrupcy
Defense from Predatory Lending

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4. How do I request a Loan Modification if I want to do it myself?

We urge you to contact your lender as soon as you decide to pursue a Loan Modification as it can be a lengthy process. Your mortgage statement should contain a customer service telephone number that you can call. Customer service will transfer you to the Loan Modification Department.

Once in contact with the Modification department, they’ll be able to provide you with the specific set of financial documents they require from you in order to make a decision on your case.

For certain lenders, a verbal confirmation of your financial situation may suffice to enable them to make a decision on your modification. Most lenders however will provide you with a list of necessary information needed to document your finances. Following is the list of most commonly requested documents:

Personal Hardship Letter (describing why you are unable to make your current mortgage payment)
Financial Statement Worksheet (provided by your lender or by us)
Last 2 years of federal tax returns
Last 2 years of W-2 forms
Last 2 months of Payroll Stubs
Profit and Loss Report (if self employed)
Last 2 months of Bank Statements

If you have questions on how to package you Loan Modification call us, we will be happy to assist you.

Once your lender has received your request, you should follow up with them on a weekly basis to confirm status. Make sure to take notes on the information that you’re given with each call. Always be sure to get the representatives name and extension that you speak with. Lenders are overwhelmed by such requests, so their response time is slow. Be patient. Don’t be discouraged as it may take several months for a response from your lender.

For a list of lenders and their Loan Modification department contact information follow This link.

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5. How long will a modification take?

Regardless of whether you attempt a loan modification on your own or our attorneys do it for you, anticipate 2 to 5 months for a response on your request. Lenders are overwhelmed with requests and their response time can be lengthy.

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6. Will Obama’s 2009 MHA (Making Home Affordable) plan benefit me?

President Obama’s strategy to get the economy and the housing market back on track is the 2009 MHA (Making Home Affordable) plan. This plan went into effect March 4, 2009 and promises to refinance up to 5 millions families unable to take advantage of lower interest rates because of falling home values.

There are two parts to the MHA plan, the Home Affordable Modification and the Home Affordable Refinance.

Home Affordable Modification - is available to most conventional loans including prime, subprime, adjustable, loans owned by lenders and loans in securities. Lenders and servicers are not required to participate, it is voluntary. To be eligible for a Home Affordable Modification, a borrower must:

Be owner-occupant in a 1-4 unit property
Have an unpaid principal balance that is equal or less than $729.750 for 1 unit, $934,200 for 2 units, $1,129,250 for 3 units and $1,403,400 for 4 units
Have a loan that was originated before January 1, 2009
Have a mortgage payment (including taxes, insurance, and homeowners association dues) that is more than 31% of the borrowers’ gross income
Have experienced a significant change of income or expenses, to the point that the current payment is no longer affordable

Home Affordable Refinance - is available only to loans owned or securitized by Fannie Mae or Freddie Mac. Call your lender at their customer servicer number on your mortgage statement and ask them if your loan is Fannie Mae or Freddie Mac or you can find out by contacting them directly at:

Fannie Mae
1-800-7FANNIE (8am to 8pm EST) or go Here.
Freddie Mac
1-800-FREDDIE (8am to 8pm EST) or go Here.

To be eligible for Home Affordable Modification, a borrower must:

Be owner-occupant
Have sufficient income to support the new mortgage debt
Have a first mortgage that does not exceed 105% of the property’s current market value
Have NO delinquent mortgage payments
Have your junior or second lien holder (if any) subordinate to the new first mortgage

If you need more details or updates on the Making Home Affordable plan call us or go to: www.makinghomeaffordable.gov/

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