Christian’s posterous

U.S. to lean on mortgage companies
Trying to convert more troubled home loans to lower monthly payments
http://ping.fm/sOxYm

WASHINGTON - The Obama administration, battling a foreclosure crisis that shows no signs of relenting, will step up pressure on mortgage companies to do more to help people remain in their homes, officials said Saturday.
The administration will announce its expanded program on Monday, Treasury spokeswoman Meg Reilly said.
"We are taking additional steps to enhance servicer transparency and accountability," Reilly said. She said the goal was to increase the rate that troubled home loans were converted into new loans with lower monthly payments.
Industry officials said the new effort would include increased pressure on mortgage companies to accelerate loan modifications by highlighting firms that are lagging in that area.
The Treasury is also expected to announce that it will wait until the loan modifications are permanent before paying cash incentives to mortgage companies that lower loan payments.
$1,000 to mortgage companies
Under the $75 billion Treasury program, companies that agree to lower payments for troubled borrowers collect $1,000 initially from the government for each loan, followed by $1,000 annually for up to three years.
The government support, which is provided from the $700 billion financial bailout program, is aimed at providing cash incentives for mortgage providers to accept smaller mortgage payments rather than foreclosing on homes.
The program has come under heavy criticism for failing to do enough to attack a tidal wave of foreclosures. Analysts said the foreclosure crisis is likely to persist well into next year as high unemployment pushes more people out of their homes.
Rising foreclosures depress home prices and threaten the sustainability of the fledgling economic recovery.
A report last week from the Mortgage Bankers Association found that 14 percent of homeowners with mortgages were either behind on payments or in foreclosure at the end of September, a record level for the ninth straight quarter.
More families threatened
The Congressional Oversight Panel, a committee that monitors spending under Treasury's bailout program, concluded in a report last month that foreclosures are now threatening families who took out conventional, fixed-rate mortgages and put down payments of 10 to 20 percent on homes that would have been within their means in a normal market.
Treasury's program, known as the Home Affordable Modification Program, "is targeted at the housing crisis as it existed six months ago, rather than as it exists right now," the report said.
Scott Talbott, senior vice president of government affairs for the Financial Services Roundtable, said the industry supported many of the changes Treasury was proposing.
Click for related content
But he said the foreclosure problem, which began with heavy defaults on subprime mortgages, was expanding to more traditional types of mortgages because of unemployment which has now hit a 26-year high of 10.2 percent.
"The subprime problem has regrettably morphed into an unemployment problem," Talbott said. He said there was no government program to help the unemployed who are in danger of losing their homes but "many private lenders are modifying loans for the unemployed on their own."
Treasury's Reilly said the expanded program would, among other steps, make more aid available to struggling borrowers and expand the number of organizations providing help.

Call Christian Kelch at Dynamic Loan Solutions at 866-945-6722 x1

Mortgage delinquencies hit another record in 3Q

http://ping.fm/QalOC

NEW YORK (AP) - The pace at which people fell behind on their mortgages slowed during the summer for the third consecutive quarter, but the overall delinquency rate hit another record, a new report shows.
For the three months ended Sept. 30, 6.25 percent of U.S. mortgage loans were 60 or more days past due, according to credit reporting agency TransUnion. That's up 58 percent from 3.96 percent a year ago.
Being two months behind is considered a first step toward foreclosure, because it's so hard to catch up with payments at that point.
The rate was up 7.6 percent from the second quarter. That's a much smaller jump than the 11.3 percent rise in the second quarter from the first, and the 14 percent leap seen in the quarter before that.
While the slowing growth rate is a positive sign, the increase shows there's still a lot of problematic mortgages out there, said F.J. Guarrera, vice president of TransUnion's financial services division. The company doesn't expect the figure to start declining until the middle of 2010.
Two things must get better before mortgage delinquency rates start reversing themselves, he said: home values and unemployment. "Until we see improvement in both of those areas, it's possible that it will take longer for delinquency to improve," Guarrera said.
The statistics, which are culled from TransUnion's database of 27 million consumer records, show that mortgage delinquencies remain highest in the four states where the crisis has hit the worst.
- In Nevada, the rate reached 14.5 percent, up from 7.7 percent a year ago.
- In Florida, the rate was 13.3 percent, up from 7.8 percent last year.
- In Arizona, the rate hit 10.4 percent, up from 5.5 percent in 2008.
- In California, the rate jumped to 10.2 percent, from 5.8 percent last year.
North Dakota remained the state where mortgage holders most often paid on time, with just 1.7 percent delinquency, up from 1.4 percent last year.
TransUnion expects delinquency to rise to just short of 7 percent for the fourth quarter, compared with 4.6 percent for the 2008 fourth quarter. The rate may reach 16 percent in Nevada. Those states with the highest delinquency and foreclosure rates will likely continue to see depressed housing prices.
The average mortgage debt per borrower nationwide edged up to $193,121 in the third quarter, from $192,287 last year. The District of Columbia had the highest average mortgage debt per borrower at $359,788. The lowest average mortgage debt per borrower was in West Virginia at $97,265.
Call Christian Kelch at Dynamic Loan Solutions at 866-945-6722 x1

Bank of America has signed up nearly 137,000 homeowners. That's nearly five times as many as in July, and the biggest raw number of any lender in the program.

But, as a percentage of the bank's nearly 1 million eligible borrowers, it works out to 14 percent — far lower than competitors like Citigroup or JPMorgan Chase, which have signed up about 40 percent and 32 percent respectively.

Bank of America executives insist these numbers are misleading. They point out that they have extended aid to more than 223,000 additional borrowers this year — assistance that's not counted by the Treasury Department.

They also note that around a third of the bank's customers whom the government deems eligible for help actually don't qualify off the bat.

You ‘have to dance to their music’
Frustrated homeowners, however, say that getting the bank to respond is a confusing, prolonged ordeal.

George Hicks, a retired and disabled veteran from Clovis, Calif., has been trying since spring to get help with his mortgage after moving back into a home that he had used as a rental property.

He owes nearly $340,000 on a Countrywide Financial option-adjustable rate mortgage — a particularly toxic breed of loan that allowed borrowers to defer a portion of their interest payments and add them to the principal.

Hicks says he faxed documents several times and spoke with numerous Bank of America representatives but received conflicting responses. He finally was offered help after The Associated Press inquired about his case. The modification, if it is made final, will lower his monthly payment by about $100.

The process has been trying, he says, but "you kind of have to dance to their music."

Bank of America got $45 billion in federal bailout money, and its executives are sensitive to charges that they aren't doing enough to help ordinary Americans. Still, they also say that the enormous publicity around the program has created a belief — among homeowners whose financial pain isn't necessarily severe — that their lender is obligated to help.

Click for related content
Foreclosure filings dip for third straight month
Only 5 percent plan to buy a home next year
Housing agency's financial cushion sinks

"It's not an entitlement," said Jerry Durham, Bank of America's Texas-based vice president of homeownership preservation. "It's something that we use as a tool to help keep them in the home when they're facing hardship."

At the call center near Dallas, a fundraising-style thermometer on the wall tracks the successes, and managers are being asked to provide regular updates to senior executives at the Charlotte, N.C.-based bank. But Ken Scheller, a senior vice president, says the industry and government made it all sound too simple.

"When you apply it in the real world," he says. "It's got some additional complexities that I don't know that any of us thought of."

Call Christian Kelch with Dynamic Loan Solutions at 866-945-6722x1

BofA signs up fewer borrowers
The size of Bank of America's problem is huge. It is the nation's largest mortgage servicer, with about 14 million loans. Nearly two-thirds of those come from the troubled portfolio of Countrywide Financial, which Bank of America bought last year.

Since the Obama plan's launch, the bank has spent millions of dollars to upgrade its computer systems, including fax servers that couldn't handle the deluge of documents. It has hired and trained about 3,500 workers who take calls, process loans and work on computer systems since the start of the year, raising the total to about 13,000. The bank has 11 domestic call centers and one in Costa Rica that handles Spanish-speaking callers.

Many new hires have no previous mortgage industry experience. Edwards, for example, worked in a Westin hotel before starting at Bank of America last year. One of her co-workers used to be a marketing manager for an Oklahoma casino
Call Christian Kelch with Dynamic Loan Solutions at 866-945-6722 x1

Pace of mortgage help rising but still slow
Millions of homeowners frustrated trying to qualify for loan modifications
http://ping.fm/gE74C

PLANO, Texas - Shontaye Edwards spends her day in a gray cubicle at a Bank of America call center in this Dallas suburb. On the other end of the phone line are homeowners — tense, exasperated and looking for help.
They often call with questions about the Obama administration's plan to help borrowers modify their mortgages, but many simply don't qualify. They make too much money, or too little. They have too much debt. They don't actually live in the home.
"I do get attached at times," Edwards says during a momentary break in the office where she and about 350 colleagues sit under flat-screen displays showing how long callers have been kept on hold. "But at the same time ... we have to go by the procedures."
Since February, when President Barack Obama announced a lofty goal of limiting foreclosures by modifying up to 4 million loans over three years, the administration's program has been riddled with problems.
Banks couldn't hire and train employees fast enough to keep up with the crush of people who wanted to take advantage of the help. Documents were lost. The government kept changing the rules.
For the industry, the transformation has been tremendous.
Before the housing crisis, mortgage servicing companies had collections departments that mainly tried to wring payments from tardy borrowers. Now the same departments, augmented with thousands of new employees, are engaged in the far more complex task of figuring out whether millions of borrowers qualify for help.
Bank of America, which collects payments on more loans than any other mortgage company, has lagged its competitors in the percentage of troubled borrowers it has signed up.
The steady rise in unemployment has made the problem even worse. Bank of America is now getting about 100,000 calls a day from troubled homeowners, up from about 60,000 at the start of the year.
Government officials insist the program is on track. "We're reaching borrowers at a scale that has not been done by any other modification program," said Michael Barr, an assistant treasury secretary.
Indeed, there has been some progress lately. More people have been helped in recent months after the government started publishing a monthly report card detailing how many homeowners each bank had helped.
But experts still doubt the administration will come anywhere near its goals.
It’s a challenge to qualify
The program allows homeowners to have their mortgage interest rate reduced to as low as 2 percent for five years. After that, the rate can rise again, but the increases are capped at levels that were prevailing when the modification was made.
Qualifying is a challenge. For example, if you already spend less than 31 percent of your pretax income on your mortgage, you're out. Second homes don't qualify. Neither do vacant homes.
As of last month, about 20 percent of eligible borrowers, or more than 650,000 people, had signed up. However, most of those enrolled so far have been signed up only on a preliminary basis for trials lasting up to five months.
To make the change permanent, they have to complete a pile of paperwork and show they can make payments on time. As of the start of September, only 1,700 homeowners had completed the process. The government plans to publish an update in the coming weeks.
"We're just getting the early data in," Barr said. "But we can tell it's not good enough."
Call center uses ‘soft skills’
At the Bank of America call center in Texas, workers in the bank's "Home Retention" division get as many as 15 calls an hour. They're from people being laid off, getting divorced, dealing with a pileup of medical bills or trying to get out of a risky loan made during the housing boom.
Click for related content
Foreclosure filings dip for third straight month
Only 5 percent plan to buy a home next year
Housing agency's financial cushion sinks
On the other line are workers like Edwards, 23, who is also finishing her bachelor's degree at night. They make $28,000 to $35,000 per year, plus overtime and bonuses. They get four weeks of classroom training, starting with mortgage industry basics.
The training includes detailed scripts for how to respond to specific situations, such as when a borrower can't qualify because his income has been cut dramatically, and "soft skills," such as how to express empathy.
Edwards is polite and professional, even when emotions run high. "I have family that ... are in the process of losing their home and needing assistance," she says. "So I definitely understand."
CONTINUED : BofA signs up fewer borrowers
Call Christian Kelch with Dynamic Loan Solutions at 866-945-6722x1

Only the power of an Attorney-Backed Loan Mod firm can smash through this ridiculous log-jam of greedy bankers:

Bank Of America Faces Complaints Over Mortgages and Stalled Loan Modifications
BY HARRIET JOHNSON BRACKEY
Sun Sentinel

Hundreds of struggling Florida homeowners have filed complaints with Florida Attorney General Bill McCollum in the past year about failed or stalled home mortgage loan modifications with Bank of America.

Angry borrowers, desperate to hold on to their homes, say they've made dozens of calls to their lender and spent months asking for a change in their loan terms, only to be denied or to learn that Bank of America revoked their loan modifications a few months after they reached a deal.

``I wrote letters to the governor, I called the bank every single month,'' said Yvonne McBride, a disabled former state worker who received a loan modification for the Sunrise home she shares with husband Herman Acosta. But the bank retracted the deal -- after, she said, she'd paid more than $9,200 to cover mortgage payments through next January.

``When they said I was noncompliant [with the terms of the loan] I said, `What?' '' McBride said.

The Attorney General's Office has logged 452 complaints about Bank of America, Florida's largest mortgage lender, concerning mortgages and loan modifications. With its acquisition of Countrywide Financial last year, Bank of America had almost 82,000 mortgage loans originated in Florida worth $15.3 billion in 2008, according to National Mortgage News.

Next largest is JP Morgan Chase, which had almost 69,000 mortgage loans in Florida. JP Morgan Chase has 69 complaints on file at the Attorney General's Office.

Wells Fargo, which acquired Wachovia, has a combined 51 complaints on file and almost 57,000 mortgage loans in Florida.

Bank of America's spokesman Rick Simon would not comment on the volume of complaints. But he said that in individual cases, some customers are not providing necessary financial information or have not been communicating with the bank.

``Bank of America has been more aggressively pushing loan modification and foreclosure assistance than anyone else,'' said economist Ken Thomas, an independent banking consultant in Miami. Thomas is not a consultant to Bank of America. He said the bank may have more complaints than others because it is interacting with more borrowers.

``The biggest lender in South Florida was Countrywide and they are under more scrutiny and making a bigger effort than anyone else,'' he said.

The Attorney General's Office is responding individually to those who complain, providing borrowers with information on mortgage fraud, the state's legal settlement with Bank of America calling for foreclosure relief, and suggesting that borrowers contact federal regulators and local attorneys. The complaints are also being sent to the lender involved.

Spokeswoman Ryan Wiggins of the Attorney General's Office said the complaints are being reviewed to determine the validity of the claims.

One year ago, McCollum, who is a candidate for governor, reached a settlement with Bank of America that was supposed to provide $150 million in foreclosure relief nationwide for its borrowers.

Under the terms of the settlement, Bank of America was to launch a loan modification program that would help 52,000 Florida homeowners get new mortgage loans.

``Bank of America has stated its willingness to cooperate in our investigation,'' Wiggins said.

But until the complaints from borrowers have been reviewed, Wiggins said, she could not answer the question of whether Bank of America is complying with the settlement.

Bank of America told the state it has modified more than 10,000 loans in Florida through June of this year.

Millions of troubled borrowers nationwide are candidates for loan modifications.

In Washington, the Obama administration has promoted its program to entice lenders to offer loan modifications as a key tactic to turn around the troubled housing market. The Making Home Affordable program -- which says payments are past due on 3.1 million loans nationwide -- pays lenders to offer modifications.

But borrowers in Florida have run into a logjam. Stories abound of loan modifications taking months or even a year to complete.

The complaints at McCollum's office also include those from borrowers like McBride who say they completed a deal, only to have a bank revoke it.

McBride provided the Sun Sentinel with copies of notarized paperwork showing the loan modification process had been completed for her home. It took place in February.

Of McBride, Bank of America spokesman Simon said in an e-mail, ``The loan modification had to be declined because the borrowers did not provide necessary documentation of financial information in a timely fashion, despite three contacts with a home retention specialist over a 12-day period.''

McBride said she doesn't know what the bank is talking about.

Nicholas Gonzalez-Pardo has filed complaints with the attorney general and the federal agency that regulates national banks, the Comptroller of the Currency, over a similar story, saying Bank of America accepted his payments for six months for his home in Sebastian and then told him he did not qualify for a loan modification.

``I feel like I have nowhere to turn, the deck is stacked against me,'' he said.

Bank of America's Smith said Gonzalez-Pardo's modification actually begins in November, but Gonzalez-Pardo disputes that. The bank spokesman also said the bank has tried to reach Gonzalez-Pardo several times to discuss the situation.

If Bank of America is found to not be in compliance with the state's settlement, Wiggins said the state could return to court and ask for penalties, fines and attorneys fees.

--------------------------------------------------------------------------------

© 2009 Miami Herald Media Company. All Rights Reserved.
http://ping.fm/gcO1t
Call Christian Kelch with Dynamic Loan Solutions at 866-945-6722 x1

NEW YORK (Reuters) - Freddie Mac (NYSE:FRE - News; NYSE:FRE - News), the second largest provider of U.S. residential mortgage funding, on Friday posted a loss of $5 billion in the third quarter and predicted it would need more government support amid a "prolonged deterioration" in housing.

http://ping.fm/adVdu

Call Christian Kelch at Dynamic Loan Solutions at 866-945-6722 x1

Example Hardship Letter:
Name: (Your Name)
Address: (Your Address)
Lender Name: (Your Lender)
Loan #: (your Loan #)

To Whom It May Concern:
I am writing this letter to explain my unfortunate set of circumstances that have caused us to become delinquent on our mortgage. We have done everything in our power to make ends meet but unfortunately we have fallen short and would like you to consider working with us to modify our loan. Our number one goal is to keep our home and we would really appreciate the opportunity to do that.
The main reason that caused us to be late is (insert reason here and don’t be too lengthy and long winded) Soon after being late and our income not being nearly enough, we had fallen further and further behind. Now, it’s to the point where we cannot afford to pay what is owed to (lender). It is our full intention to pay what we owe. But at this time we have exhausted all of our income and resources so we are turning to you for help.
(The approximate date of hardship and we believe that our situation is Temporary or will be Permanent.)
Our situation has got better because (reason here) and we feel that a loan modification would benefit us both. We would appreciate if you can work with us to lower or delinquent amount owed and or payment so we can keep our home and also afford to make amends with your firm.
We truly hope that you will consider working with us and we are anxious to get this settled so we all can move on.

Sincerely and Respectfully,

Borrower’s Signature
Date
Co-Borrower’s Signature
Date

FOR HELP CALL CHRISTIAN KELCH AT DYNAMIC LOAN SOLUTIONS AT 866-945-6722 X1

Loan Modification Attorney Information
At Dynamic Loan Solutions, we believe that full disclosure and honesty are the only way to conduct business. Nearly every day we discover other loan modification companies advertising themselves as an actual attorney firm, or that they directly employ attorneys who will work on client files - when they definitely are not, and do not. Some have homeowners all over America paying upfront fees to them versus a licensed attorney, who in most cases is illegal, and then they fail to perform services for that fee. More and more, especially in recent months, many of these companies have been closed down for these various reasons.
Dynamic Loan Solutions is in the business to stay in business helping homeowners like you to “Preserve Your American Dream”. It is with this in mind that we want to explain to you, in detail and upfront, what services you can expect from us, and briefly how the process works.
Dynamic Loan Solutions is contracted with several experienced attorney firms who provide a variety of legal services, and specialize in representing American homeowners throughout the loan modification process. These attorney firms and their affiliates are currently licensed to conduct business in 50 states throughout the U.S , and are relied on to remain compliant with the laws and regulations in their respective states.
Dynamic Loan Solutions and its affiliates help potential loan modification candidates like yourself, who are seeking mortgage assistance, by conducting interviews and consultations, presenting potential loss mitigation options to you, and assisting you with document completion and gathering of information required by the attorney firms. Dynamic Loan Solutions is also contracted to perform these services, along with processing and preliminary analysis of client files for our network of attorney firms.
One way you will discover Dynamic Loan Solutions is different from most other loss mitigation firms is that we require each of our files be reviewed and fully analyzed by our Attorneys, and then it is forwarded to the contracted attorney firm where they, in turn, proceed to conduct their own underwriting and prequalification of your client file. So, technically, your file gets reviewed not only once, but twice, before it receives a prequalification approval. This has helped us to achieve a nearly 100% success rate on our files.
Another way we are different is this: You will never be asked to pay monies directly to Dynamic Loan Solutions, and no part of any compensation paid by you to the attorney firm is paid to Dynamic Loan Solutions. It is only AFTER your file has gone through the double underwriting, and you have been notified that you were prequalified by the attorney firm, that you will then be asked to review and complete the attorney's Legal Services Agreement and retain the attorney's services by making a payment to them. You will be retaining the attorney to represent you throughout the loan modification process. Once this occurs, Dynamic Loan Solutions will be paid for our role in saving your home or improving your current situation.

Also, each of our contracted attorney firms offers a 100% money-back guarantee. What this means to you, amongst many other things, is that you can rest assured when you receive a pre-qualification from one of our contracted attorney firms, they are very confident of their ability to achieve a modification of your existing mortgage terms. Simply put, both Dynamic Loan Solutions and our contracted attorney firms put in numerous hours of work on your file upfront, so it does not make sense that we would do this, only to turn around and refund your money. No legitimate business can operate in this manner, and it definitely does not fit within the long-term vision we have for our company.

In our ongoing effort to assist as many at-risk homeowners as possible, we continue to expand our services to states across the great U.S. Currently, the states in which our contracted attorneys and their affiliates are licensed to conduct business include the entire United States:
CALL CHRISTIAN KELCH AT DYNAMIC LOAN SOLUTIONS AT 866-945-6722 X1

Loan Modification Frequently Asked Question
I Just Lost My Job is it Possible for Me to get a Loan Modification or qualify for Making Home Affordable?
If you just lost you job it is still possible to qualify for a loan modification as there are many programs including Making Home Affordable and HAMP plus more. It is important to make sure you apply for a loan modification as soon as possible as the banks will use your unemployment, however, if your unemployment is about to run out and you can not renew it then it may be an issue. Consult with an experience Loan Modification Attorney on this issue to see if you qualify, however, banks are using homeowners unemployment as income every day.
During Forbearance, will the bank report negatively to the credit agencys and affect my credit?
In general, banks are not suppose to report any negatives to your credit report during a forbearance program. The only exception would be if the put something in writing to you that our signed. Just remember that more than likely before you went into a forbearance program that you were already late on payments and those would have shown up on our credit report. If you do default on your forbearance program then the likely hood of retro negative reporting for that forbearance period will show up on your credit report. If this happens, in most cases the property usually ends up in foreclosure as the loan modification was never completed and you defaulted on your forbearance agreement.
I just received a Notice of Default, can I still qualify for a Loan Modification or HAMP?
Yes, you still have time to qualify for a loan modification program, whether that be thru HAMP or any other programs that are offered by your lender to help you stay in your home and stop foreclosure. Obviously, time is of the essence in the type of situation as the clock is ticking and your home could show up on the steps of your county for a sale. So, it is important at this point to contact a Loan Modification Attorney and get all the Loan Modification paperwork in immediately as the Attorney can first stop the proceedings that are taking place on your foreclosure and begin working out your loan modification terms with your lender. Keep in mind that the Attorney has the power to stop your foreclosure when they are negotiating your loan modification, so feel safe that you can stay in your home during that process.
Do I have to have a hardship to Qualify for a Loan Modification or for HAMP?
Not all Loan Modifications require a significant hardship to qualify. Some of the basic things to keep in mind is being able to document the reason why you as the homeowner can't make your mortgage payment or are having trouble making your mortgage payment. There are many reasons for this like your expenses has increases, maybe you lost your bonus, or your hours at work were cut. And maybe you are one of those homeowners that has an interest rate that is about to adjust or are in the Wachovia, Wamu, or Countrywide negative amortization loan or pick-a-pay loan. What about just having a high interest rate and being upside down on your mortgage. There are so many things can happen to you as a homeowner to make paying your mortgage difficult and needing help to save your home or stop a foreclosure. The best way to do that is by getting a loan modification. The Attorneys we have are excellent in taking your case and fighting for your rights to get the best possible loan modification or loan workout program available. One of the first things our Attorneys do is see if you qualify for HAMP. Give us a call for your free consultation as we are helping thousands of Americans stay in their home and afford their mortgage payment!
I was just denied a HAMP Loan Modification that i tried to do on my own because i had Equity in My Home, is that right?
It makes sense that you were denied just because you tried to do the loan modification on your own, unfortunately we see that all the time. HAMP does not take equity or LTV into account. HAMP looks like at things like if you property is your primary residence and can you afford to make your payment based on debt ratios. So, whatever bank told you equity and ltv are a factor is incorrect as to this date no such guideline exists. I assume they didn't want to help you. An Attorney handling your loan modification would have been able to get past this issue and saved the homeowner time and money.
I tried to get a HAMP or Making Home Affordable Loan Modification on my own and was denied, can I still qualify for a Loan Modification?
It is still possible for you to qualify for a Loan Modification even though you tried to get a Loan Modification under HAMP or Making Home Affordable (MHA) on your own. In some cases, you still may qualify for a Loan Modification under HAMP or MHA. We are finding that a lot of homeowners just don't know how to competed the Loan Modification paperwork to save their home from foreclosure. They are finding that their banks whether is it Bank of America, Wachovia, Chase, etc have not helped in explaining and guiding homeowners thru the Loan Modification paperwork. Our Loan Modification Attorneys have been able to qualify homeowners for other Loan Modification or Work Programs or even for HAMP, even though you as a homeowner were unsuccessful trying to do it on your own. Feel free to contact our experienced Loan Modification Consultants at 877-700-2567 for a free consultation.
I Just Got a Loan Modification Six Months Ago, Can I get Another One?
Homeowners call us all the time with this question and many of them tell us that their banks have told them no! That the banks say only one loan modification a year. This is not always a true statement from your bank. We have been successful with modify loans that were just modified six months ago. We do an upfront extensive preapproval process to make sure that the Attorney Firm can get your loan modification done and help you save your home. Please fee free to call one of our consultants at 866-945-6722 x 1 to find out if you qualify, there is no cost to see if you can qualify for the loan modification.
Can I get a Loan Modification if I was Just Denied by My Lender?
We see homeowners trying to do their loan modifications everyday and getting denied because they just don't know how to complete the paperwork and handle or navigate thru the banks loan modification process. Unfortunately, it is not a clear process. Our Loan Modification Attorney's have been able to negotiate a modification and get it approved thru your lender after you as a homeowner just tried it yourself and got denied! Let us take a look at your situation and see if we can preapprove you up front at no costs to you. It is only your time to get us the paperwork and help you save your home and stop foreclosure.
Can I get a Loan Modification for a second lien or second mortgage?
The HAMP program only has qualifications to handle loan modifications for the first mortgage or first lien. However, there are other loan modification programs for those wanting to modify a second mortgage or second lien. In general, a homeowner may have a fixed rate second or a home equity line, which is where the interest rate usually fluctuates when the prime rates adjusts. For the most part, banks are more willing to modify the interest rate on the fixed rate loans. For one reason, is because the home equity lines are usually closing in line with the prime interest rate which is basically at an all time low. It is always worth checking to see if the second can be modified whether with a reduction in interest rate, changing the adjustable to a fixed rate, or even asking for a principal reduction.
My home is scheduled for foreclosure very soon, what are my options?
If you are about to lose your home and received a Notice of Trustee sale and about to have your home foreclosed. It is important to not delay if you really want to save your home. There are options out there and it depends on whether you lender is participating in HAMP, which is one option to other loan modification/work out program options. It is important to get started immediately to stop the foreclosure.
How long will the HAMP loan modification program be available?
This program will expire on December 31, 2012, which means that your trial modification must be in place by that date. There are other loan modification programs or work out programs that may be available to you as a homeowner seeking help to save your home and avoid foreclosure.
What is loan forbearance?
Forbearance means you are allowed to delay or reduce payments for a short period, with the understanding that another option will be used at the close of that time to bring your account to a current status. Your lender, if in agreement, will then temporarily cease legal actions. Lenders may agree to combine your Forbearance with Reinstatement or a Repayment Plan if you know you can provide the needed funds to bring your account current by a specific date. This plan works for people who have just experienced a sudden living expense increase or income loss. We will negotiate with your lender to explain this hardship and hopefully get you the time you need to readjust your spending and recover financially.
What is a loan workout?
A loan workout is just another term for loan modification. However it is more of a broad term and can be applied to several other loss mitigation techniques, such as negotiating a short sale and a deed in lieu of foreclosure.

Why Would a Lender Accept a Deed in Lieu?
When the value of the home is about equal to what is owed, a lender may agree to accept the deed in lieu of foreclosing. This saves the lender the cost of foreclosing and evicting the borrower. However, the lender must still pay to maintain the property during marketing and sale, and pay a commission to a real estate broker to sell the property. Thus, if the equity in the property has not dropped too far below the amount owed, a lender may accept a deed in lieu. That said, the current mortgage crisis has not left many homes with enough equity to make a deed in lieu attractive to lenders. Lenders see no advantage in allowing a borrower to just walk away. In the climate of mortgage meltdowns, lenders are not usually willing to accept a deed in lieu.

What Is a Deed In Lieu?
This phrase (short for Deed in Lieu of Foreclosure) refers to the situation where the borrower places the keys on the kitchen table and walks out the door (or in the days of the drive through teller, hands the keys to the teller at the lending institution and drives away).
What is a Short Sale?
If a homeowner wishes to sell, but the home has declined in value so that the loan(s) are more that the sales price, the lender can accept a lower payoff amount. For example, the outstanding loan balance is $400,000, but the homeowner can sell for is $300,000. The lender may accept a lower payoff i.e. $300,000. Please keep in mind that for most cases to qualify for a short sale you will need to have listed your property for 90 days and will also have to be behind on your mortgage payments or delinquent. Sometimes, homeowners prefer to try to qualify for a loan modification as the HAMP program or Making Home Affordable (MHA) Program is such that the homeowners payments are so low that it is more affordable to take a Loan Modification then short sale your home and rent.
What if I can no longer afford my home? Can you still help me?
Yes. If you are certain that you cannot afford your home any longer and wish to sell, we can help you to secure a short sale payoff or a deed-in lieu of foreclosure agreement with your lender.
Mistakes to avoid if you want to get your Loan Modification Program approved
Each loan modification must be carefully reviewed and faces severe scrutiny. It’s important to avoid mistakes. That said, what are some critical pitfalls to avoid?
• Waiting too long. You can avoid losing your home AND your credit by seeking professional help at the first sign of trouble.
• Improperly documenting your financial situation. You need to consider every potential expense and be up front and honest about your income, debts and liabilities.
• Trying to do it yourself. This one is easy to avoid. Unless you are clearly comfortable with the process, you’d be wise to pick up the phone and call a loss mitigation specialist.
• Not knowing what to do if the modification fails. There are other programs that offer better alternatives to foreclosure. If loan modification fails, we’ll know what to do next.
• Submitting an incomplete package. Our process ensures you will not miss a step and make critical mistakes.
• Poorly crafted hardship letter. Your hardship letter is an opportunity to explain to the lender why you are experiencing difficulties and can go a long way toward convincing a lender that you are a good candidate for modification.
• Talking to the wrong department. If you call your lender, there’s a good chance you’ll have a hard time connecting with the right department. Often, lenders route delinquent accounts to collections who are only interested in getting your full amount due. These are not the people to talk to and will only frustrate you into thinking you are out of options.

What factors do lenders consider when qualifying borrowers for loan modifications?
1. Whether your required payments are increasing or will increase;
2. Whether your property is worth less than you owe;
3. Principle residence or investment;
4. Change in income but still employed;
5. Debt to income ratios before and after the loan mod;
6. We are also seeing some evidence that lenders are more apt to offer beneficial loan mods to borrowers who explain that they have the option of just walking away under California law;
7. Basically, the lender needs to be convinced there is a good reason to create a lower monthly payment, that there is strong chance the borrower can afford to pay that lower monthly payment and that the lower monthly payment can be created by lowering the interest rate, the term of the loan, or by reducing the principle on the loan. It should be note that principle reduction is not easily negotiated; and
8. Whether borrowers have leverage against their lenders. Borrowers should consider prudently using the California and Federal law to their utmost advantage. If you are looking to obtain a principle reduction you should be prepared to consider the tactical use of lender liability laws
Will My Investment Property Qualify under HAMP or Making Home Affordable (MHA)?
HAMP or the Making Home Affordable program is only for those needing assistance with their primary residence and the banks will want to see proof that it is your primary residence, like a electric bill or some kind of utility bill. There are other programs available as far as loan work out or loan modifications that are available for owners of investment properties. For Help call Christian Kelch at Dynamic Loan Solutions at 866-945-6722 x1