Loan modifications change the terms of an existing loan to make the mortgage payment more manageable, bring the loan current if the homeowner is behind or bring the home out of foreclosure.
Homeowners who are still current on their loans but struggling in some way can qualify for a loan modification as well as those facing or in foreclosure. Many homeowners are struggling only because they have a fraudulent loan or a loan that violates their federally-protected consumer rights. These are known as predatory loans. There are thousands of homeowners saddled with predatory loans but they can be successfully resolved through the loan modification process.
A loan modification allows you the opportunity to change the existing terms of your loan without the need for a new closing, legal fees, survey, appraisal, taxes or a credit check. In contrast, if you refinance a loan, you’ll be required to have a closing and forced to pay a variety of fees and taxes, while having to prove your credit worthiness.
A Forensic Loan Document Review is a detailed investigation of your loan documents. The investigation is done by experienced auditors, who are well versed in the federal laws that protect consumers and guide lending practices.
Typical predatory loans will have high interest rates, balloon payments, prepayment penalties, adjustable rates, and a host of other sins, but that is only the surface layer. If you have even one of those items, then you probably have loan documents that are layered with violations of federal regulations such as TILA, RESPA, HOEPA, and ECOA.
It is often the reason you will hear lenders try to discourage the use of firms such as ours, they would prefer not to have to deal with trained professionals, who can perform forensic document reviews and address such violations. Let’s face it, they’d rather just have you pay them without having to deal with the fall out of a predatory loan. Do not even attempt a loan modification or short sale until you have gotten a Forensic Loan Document Review.