Lately, I have increasingly found myself having phone conversations with referrals from friends and old clients who are now in trouble with their mortgage. While each situation is different, in many cases the distressed homeowner should know that it is extremely likely they can successfully modify the terms of their loan to their long-term benefit and remain in their home even when faced with the following types of circumstances:

• You received a default notice from lender.

• You are already in a stage of foreclosure.

• You are upside down in your mortgage. You owe more than your house is worth.

• Your adjustable mortgage has expired (or is close to expiring) to a much higher interest rate.

• You have a “Neg Am,” “1% loan,” “Pay Option,” or “Pick-a-pay” type loan.

• You are now not able to refinance like you thought you would.

• You are behind in your mortgage payments?

So yes, if you are in any of those predicaments you can modify your loan. I say “modify” the terms of your current loan, not a “refinance,” which would mean expensive closing costs, commissions, and various junk fees (that is if you could even qualify for it at this point).

Yes, i’ve heard some the cries that the lender turned down their modification, the modification just put a temporary band-aid on their problem, they had to pay the bank in order for them to work out (not modify), their current loan. All the confusion and false hope is enough to drive anyone crazy!

You see, you must understand simple hardship letters, the lender’s online forms, and calls to your lender’s 800# loss mitigation department (if you can get through…if your call is returned) will often get you nowhere and just leaving you frustrated.  You must understand when you do this, you are dealing with the lender on a consumer level.

Many of the people you are speaking with are simply overworked first-tier reps who are limited in their ability to properly analyze a balance sheet, limited in their ability to properly correspond with you, and limited in their ability to make the final decision. Don’t believe me? Check the jobs section in your local newspaper or online resource and see the sudden influx of ads for new loss mitigation reps. This is the person who could likely decide your housing fate in the near future. Not a comforting thought.

So…the golden key to success is two-fold: 1) Having up to date and accurate information with constantly changing new laws, and 2) Having an experienced, well-connected mortgage negotiator backed by a high-powered legal team in your corner. Armed with the Truth in Lending Act (TILA) and the Real Estate Settlement Procedures Act (RESPA), they are often times able to find multiple errors in the loan documents drawn up by the mortgage company right from the get go. There are strict guidelines to follow when your home loan was originated, and most discrepancies can be found by a competent real estate attorney.

Folks, in order to have the best chance to successfully modify your loan, it is crucial you negotiate with them on a corporate level. That is the huge benefit of a qualified attorney backed mortgage negotiator. Then, you may see results such as this within 4-6 weeks...

• A reduced, fixed interest rate if you currently have an adjustable loan.

• An extension of the length of the loan for lower payments.

• A principal reduction if you are upside down in your loan.

• A forgiveness of missed payments and fees, often added to the back end of loan.

• A negotiation to reduce or possibly even remove the second mortgage in some cases.

This not only solves your short-term problem, but solves your long-term problem creating a brand new healthy financial start!

There are 1 to 2 million homeowners likely to face foreclosure this year alone as their house has turned around and socked them squarely in the mouth, but please know that there are highly effective and successful options for you! I feel energized to give folks valuable information and resources to resolve their housing situation. If you want to know more, just send me an email, I’m more than willing to share.

mortgage.mark@yahoo.com

*For more on what exactly LOAN MODIFICATION is, please click here!