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 In order to see if you qualify, please contact us and answer a series of questions about your loan, income, and current financial hardship. The process should take 15 minutes and within 48 hours, if you qualify, we will be ready to start your Forensic Audit File Review. Generally within 1-2 weeks your loan modification will be in the process of negotiation. With the help of our Forensic Audits, Lenders will make your loan modification, their top priority.
In California, voluntary loan modification programs of different companies vary. Most loans are owned in pools by originating Lenders and not by the servicing agent with whom you deal. The contract between the originating Lender and the servicing agent, called a PSA, limits the number of loans that can be modified in a given pool. Typically, the PSA limits the number of loans that can be modified in a given pool at 5%. However, that restriction is lifted in the event of a bankruptcy or litigation.
Loan modification is driven by income and tends to be more of a task when there is a second mortgage company involved. If you do not have the income to pay whatever plan the lender is willing to give you, you will be denied. Even if the first mortgage company is willing to negotiate a loan modification, it does not mean that the second mortgage=2 0company will participate. In the absence of legal knowledge in litigation or bankruptcy, the loan modifications have economic limits. A reduction in principal balance is rare. A mortgage holder will not reduce the principal balance below the value of the property. Interest rate adjustments and re-capitalization of back payments more typical. You will not get an interest only or negative amortization loan. The very best you can hope for is a fixed rate amortized over 30 years at a decent rate based on the current value of the house. Finally, if the lender “cancels” some of your debt, it may still be considered taxable income by the IRS, despite the passage of the limited Mortgage Forgiveness Debt Relief Act of 2007. The new tax law only covers debt from buying or improving your property.
We have yet to realize the full potential in loan modifications when Forensic Audit reports are implemented. Everyday, it seems the Audits are producing better and better interest rates, principle reductions and terms. |
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