Please click on the most frequently asked questions regarding Loan Modification to see the answers.
Q:What is a Loan Modification?
A:A loan modification is when a lender consents to restructure the terms and /or rate and payment of an existing mortgage based on the net income and payment history of the borrower.
Q:How soon do I have to act?
A:Time is of the essence when you are behind on house payments. Time is definitely not your friend in this situation. Each day that passes makes it that much harder to get a work out agreement with your lender that you can live with. The home foreclosure process can take anywhere from a few weeks to many months, depending on your state law and the method of foreclosure your lender chooses to use.
Q:What’s different about working with our Attorney’s Firm?
A:There are many predatory companies who are not what they appear to be. It is absolutely in your best interest to retain an attorney when applying for a loan modification, and to make sure that the attorney is well versed in loss mitigation practices. Our Attorneys are specialists in the loss mitigation field and have already helped American homeowners save millions of dollars in interest and in many cases helped them save their homes from foreclosure.
Q:How long does it take to be approved?
A:Through the use of our exclusive Loan Modification Software, clients can receive an Attorney Opinion Response Letter, pre-approving their application and defining the proposed terms within 48 hours of submission. No fees are required from you until you are in fact pre-approved for your application. Once pre-approved, you may then submit your required loan documentation and initial retainer fee. Most lenders will take 3-6 weeks to ultimately approve and implement your new terms.
Q:What is foreclosure?
A:Home foreclosure is a process by which a lender regains a property which they have financed. Typically, this is because the borrower or homeowner is behind on house payments and is unable to catch up, often due to circumstances outside of his or her control. When the lender forecloses on the homeowner, the homeowner must move out of the house, therefore, losing all possession of the property and jeopardizing any possible equity that the homeowner may have in the home. There is a legal time frame, which varies from state to state, which determines how long the foreclosure process can take.
Q:What can loss mitigation do for you?
A:The goal of loss mitigation is to work out an agreement between the homeowner and the lender that will stop foreclosure proceedings permanently. This allows the homeowner to stay in their home and protects their credit history.
Q:Do I have enough time to stop my foreclosure?
A:Up until the foreclosure sale occurs there is still hope. If a sale date for your house has been set you need to act fast. We have stopped sales set for the next day but this is very risky and some lenders will not agree to it. You’re best option is to take action immediately to stop foreclosure before it goes too far.
Q:I’m currently in bankruptcy. Can you still help?
A:Yes. But we cannot negotiate a work out agreement with your lender until your mortgage has been discharged or dismissed from the bankruptcy proceedings. Our professional loss mitigation attorneys can still evaluate your case and explain the best options to save your home. Then when the mortgage is out of the bankruptcy we can proceed with the home foreclosure help.
Q:Do I need to have a special type of mortgage loan for you to help me?
A:No. We specialize in out-of-court resolutions of government and non-government mortgage delinquencies or home foreclosure claims for homeowners. These can be FHA, Rural Administration, VA, Freddie Mac, Fannie Mae, or conventional loans which have become delinquQ:What is a short sale?
A:Foreclosure is an expensive process for a lender. Banks are in the business of making loans; in general they don’t want to possess the property. You also must remember that not only is foreclosure a long and arduous process for the bank but it also costs money. A short sale is when the bank agrees to a reduced payoff in lieu of any additional costly foreclosure proceedingsQ:What does “Acceleration Clause” mean?
A:It means that once a borrower is in default, the lender can choose to demand payment of the entire balance of the mortgage in one lump sum
Q:What does a notice of default mean?
A:Notice of Default (N.O.D.) means that the bank has contacted an attorney and the foreclosure process has begun. They have set a date at which your home will be auctioned off at a public auction to the highest bidder.
Q:What does “Lis Pendens” mean?
A:It is a Notice of a Pending Lawsuit and one of the initial a step the lender takes on the path to foreclosure.