A loan modification law firm such as the American Residential Law Group is experienced in forensic loan audits.  Hiring an experienced mortgage modification firm such as the American Residential Law Group is smart because they can help you to determine if there are violations of Federal laws by your mortgage company by reviewing your loan documents.  If the forensic audit reveals that your lender has violated federal mortgage laws, then your loan modification attorney can use this as leverage in negotiating a mortgage modification on your behalf.    If you are interested in a mortgage modification, and you don’t know where to turn, a mortgage modification law firm such as the American Residential Law Group is a good place to start.

Benefit of Using a Mortgage Modification Attorney

Mortgage modification attorneys are helping thousands of homeowners in similar situations as yourself obtain mortgage modifications so that they can save their homes from foreclosure and negotiate more favorable mortgage terms and interest rates. Lenders face fines and penalties for violating mortgage laws so they would much rather work with you to find a resolution that works for everyone. The loan modification can reduce your monthly payment to an affordable one and also extend your loan term. The lender may also agree to forbearance.  You have options and choices and a loan modification attorney can advise you of the best ones for your financial situation.

Don’t Waste Time

Since time is of the essence, you should not waste a moment of it. You may be able to keep your home and not make any mortgage payments while your loan modification attorney is negotiating a resolution of your mortgage with your lender. Under the government’s Home Affordable Modification Program (HAMP), you may be eligible for a mortgage modification on our primary residence.  An experienced mortgage modification law firm has established relationships with various lenders’ loss mitigation departments and knows the right person to speak to, saving you time and money.   The longer you wait and do nothing, the more chance you have of losing your home to foreclosure.    By hiring a loan modification attorney, you increase your odds of keeping your home and obtaining a mortgage modification.

You have options to save your home, and a loan modification attorney is the only person who can legally represent you. Why take a change in losing your home, when you can keep it with a mortgage modification?

American Residential Law Group

The American Residential Law Group is a south florida based law firm providing client focused interdisciplinary services that result in hands on legal representation of our florida clients. The attorneys and staff for American Residential Law Group have been advocating for everyday people for 12 years in practice areas that encompass the full range of consumer legal services. Our attorneys are resourced and innovative in their respective areas of practice.

Roughly $75 billion dollars has been set aside strictly to help homeowners avoid foreclosure. While the programs that these funds support won’t be able to provide an answer to everyone in financial trouble, a huge swath of homeowners will be able to use the programs to renegotiate their loans and get “current” on their mortgages.

It helps to understand that the programs ask the consumer to still assume the financial responsibility for their homes, but to work with the bank or lender to make it a much more honest loan than it may have originally been. For example, a borrower may have taken a $350,000 mortgage without the income to actually fund such a loan. Luckily, there are many ways in which such a loan could be rewritten to make it payable by the borrower. For example, many of the problematic sub-prime loans extended what are now known as “teaser rates” that would get bumped up to exorbitantly high numbers after a short period of time.

For instance, that $350,000 loan many have been at 4% for the first five years and then become a variable rate without any kind of cap. This means that as interest rates soared, the borrower could see their loan jump from $700 per month to more than $2,000. Obviously that sort of discrepancy cannot be managed by even the tightest budget. A loan modification would turn that loan into a fixed rate mortgage for as long a period of time as possible – up to 40 years. That would make the monthly payment manageable for the homeowner, who could use a fixed and unwavering number to build their monthly budget for years to come.

This approach is much more preferable than a straight refinance because the bank would require a down payment and may not want to extend such a lengthy period to the borrower. The government supported loan modification programs generally force the banks to accept that a borrower needs the best terms possible.

Mistake #1
Do nothing. This is the worst mistake that most homeowners do. They feel helpless, overwhelmed and just do nothing. If you fall behind on your mortgage payments, call you lender and find out your options. Or contact a mortgage modification company or your mortgage broker and consult with them as to what you can do to avoid foreclosure of your home.

Mistake #2
Avoid communicating with their lender. Call and write to your lender and discuss your situation. Find out if you qualify for a mortgage modification plan or whether you qualify to refinance your home.

Mistake #3
Waiting too long. If you are more than 3 months behind in your mortgage payments, your lender could start foreclosure proceedings against you. There is still time to save your home by contacting your lender, a mortgage modification company, your attorney or financial adviser. You have other options. Short sale, selling your house if you have equity, deed in lieu of foreclosure, mortgage modification, and last resort bankruptcy filing.

Mistake #4
Moving out of their home. If you do get a notice of default or some other legal document stating your lender has started foreclosure proceedings against you, do not move out of your home. A mortgage modification company or an attorney can help you negotiate with your lender options for saving your home, giving you more time to stay in our home and sometimes without having to make any mortgage payments while you are negotiating with your lender.

Mistake #5
Falling victim to an unscrupulous criminal who says they can help you save your home. Check out anyone who asks for money upfront and claims to be an expert in handling mortgage modifications or other negotiations to save your home. There are numerous legitimate mortgage modification companies and housing counselors helping homeowners so always check references and credentials before you pay any one to help you save your home from foreclosure. The only person who is legally allowed to charge an upfront fee is an attorney who may charge a retainer for their services.

Mistake #6
Not consulting with a professional advisor and asking for help. Many homeowners are too embarrassed to seek professional help, and as a result they lose their home to foreclosure because they are not properly advised on their options.

Mistake #7
Being in denial and not believing that their lender will foreclose. Lenders are in the business of making money, and if you do not pay your mortgage, they will institute foreclosure proceedings and foreclosure on your home. However, lenders would much rather work with their borrowers and avoid foreclosure. An average foreclosure costs the lender around $50,000.

Mistake #8
No using other assets to save their home. If you have assets, then you may want to consider
selling them to pay your mortgage balance current.

Mistake #9
Not being educated and informed on foreclosure laws. There is a lot of free information available to homeowners on the Internet that they can take advantage of to educate themselves on their rights and remedies with regard to their state’s foreclosure laws.

Mistake #10
Not hiring a foreclosure defense attorney to defend them in a foreclose proceeding. You have rights and remedies to defend yourself in a foreclosure proceeding. A real estate foreclose defense attorney can help defend you and save your home. Seek legal help immediately.

Many times the lender has incorrectly filed foreclosure proceedings, and your attorney will be able to recognize whether they have properly filed the action or not. Also, you may have been a victim of predatory loan practices and be able to rescind your loan. Your attorney will conduct a forensic loan audit to make sure that your lender complied with all Truth and Lending and RESPA disclosure laws. If there is a violation, your attorney can use this as leverage with your lender to get a favorable result for you and save your home from foreclosure.

Q: How Do I Apply for a Loan Modification?
A: Working with a mortgage loan modification company or consulting with your attorney will facilitate your application process.  Since mortgage modification companies are experts in negotiating mortgage modifications with lenders and have established relationships with them, they are able to achieve better results for their clients.   The mortgage modification company will help you gather the required information to make sure your application gets reviewed and approved.

While you can try and apply for a modification on your own, why take the risk that you may forget to include something or answer a question incorrectly jeopardizing your chances of getting a modification that you so need.

For a small fee, your loan modification company will be able to achieve the success and results you deserve –saving your home from foreclosure.

Q: Who Qualifies for a Mortgage Modification?
A: Under the new plan, you must be an owner occupant.  Owner occupied 2-4 unit properties qualify as well. Investment properties, vacant and condemned properties do not qualify.

Q: How Long Does it Take to Get a Mortgage Modification?
A: The process can take awhile anywhere from 90 days or longer. With the new streamlined guidelines, the process is expected to move along quicker than in the past.

Q: How Much Lower Will My Interest Rate Be?
A:  The guidelines allow the interest rate to be reduced no more than 2 points.  Mortgage modifications work best on variable interest rate loans.  You will want to have your variable mortgage switched to a fixed rate mortgage.

Q: How Many Times Can I Receive a Mortgage Modification?
A: Under the new plan, borrowers may only modify their mortgage once.

Q: When Does the Modification Take Effect?
A: Your modification will take effect immediately once your lender has approved the paperwork.

Q: What if I Lost My Job, Will I Still Qualify?
A: If you do not have sufficient income to pay the new mortgage payment, you will not qualify for a mortgage modification.

Q: What Other Options Do I Have?
A: Besides obtaining a mortgage modification, you may qualify for refinancing or your lender may agree to forgive some of your mortgage debt.  Other options are selling your home in a short sale, selling if your home if you have equity or signing a deed in lieu of foreclosure returning the home to the lender and walking away from the mortgage. Bankruptcy is a last resort if you have no other options to save your home from foreclosure.  Consult with your tax adviser or attorney to determine the best option for your financial situation.

As always, thanks for reading this post and if you enjoyed it be sure to comment below. Also, check out our FREE 2009 Loan Modification Guide: Saving Your Home From Foreclosure.

Mortgage Modification Company
A mortgage modification company negotiates mortgage modifications and refinances on a daily basis. If fact, many of the people who work for the companies are former mortgage brokers and Realtors. Since they are experienced and knowledgeable about the mortgage industry, it is natural that they will be able to help you with your negotiations because they understand how the process works.

This is their business and they do it well. They have established relationships with lenders, loan services and loss mitigation departments. Many of them are former employees of lending institutions. There is something to be said about hiring someone that has been down in the trenches issuing mortgages and doing refinancing on a daily basis.

Real Estate Foreclosure Defense Attorney
While a real estate foreclosure defense attorney is knowledgeable about the real estate and foreclosure laws, up until a couple years ago they were not negotiating mortgage modifications because no one was even requesting them. A foreclosure defense attorney is the best person to use if you are in a litigation foreclosure matter or your lender is initiating a foreclosure procedure against you because the attorney is the only qualified person that can legally defend you in this regard. Attorneys do not get involve with mortgage refinancing other than to review the documents normally.

Also, you would want to use an attorney to do a forensic audit or review of your mortgage documents to help you defend your legal rights in case you were a victim of predatory loan practices.

While both are qualified to negotiate a mortgage modification, the mortgage modification companies specialize in this type of work and their rates are usually less than what an attorney would charge. In fact you may need to hire both if you are in a litigation foreclosure action and your lender has already instituted proceedings against you. The attorney can defend you in the court or litigation action, and the mortgage company can be negotiating a refinance and or modification at the same time to help stop the process.

Check around and get referrals for both the mortgage modification company and the attorney. Choosing the wrong person or company can be devastating to you if you waste time and money trying to get help from the wrong person.