Loan Modification FAQ
What sets us apart?
While Nevada Law does not allow Real Estate agents, Mortgage Agents or Brokers to assist borrowers in modifying loans without separate registration and posting a financial security Realtors are on the battleground front of Loan Modifications. Every Realtor who has sold a home in the past three years has customers who are affected by deprecation of the market place and the inability to comfortably pay their mortgages.
In assisting past clients and through trial and error I have searched out dozens of loan mod companies and half of dozen attorneys to get a grip on this process. Interviewing and placing loan mod deals with these companies I have come up with two that I have personally seen accomplish what they say they can do.
More Carrot Less Stick Vs: More Stick Less Carrot
Coleman Law Associates who have built a team of loan modification professionals made up of a combination of Mortgage Underwriters and Processors, Paralegals and Attorneys. Their modification team can assist you in getting loans modified. Coleman is by their own admission more legally minded and willing to challenge all loans.
What is the Cost per Borrower Per Modification?
The cost of the loan modification with Coleman Law Associates is $2995 per property. This is paid directly to Coleman Law Associates.
Coleman Law Associates does accept credit card payments.
Do I have to pay in full to get started?
CLA requires a retainer of $1595. Additional payments can be arranged over time.
How long does it take?
The entire process is slated to be 30-90 days depending on if it is one loan with a roll over lender or several loans with hard to deal with lenders.
Is there a guarantee or refund?
They guarantee you a refund at any time based on how much work has been completed. So it really varies what the amount will be but you will be given a full accounting of what work has been completed on your behalf.
What is the first Step?
The first step is to fill out a client retainer form from the attorney and a qualifying interview form. This can be done with a Coleman Law Associate.
What paperwork do I need to Provide?
The more the better and the faster the process. CLA will not share your paperwork with the Lender it is for internal useage only.
When does the real work begin?
As soon as the the completed intake information package is completed the modification staff begins a quick computerized audit of your mortgage.
What is the purpose of the Audit?
The audit looks for discrepancies and identifies missing documents or violations of lending rules and laws.
Does it matter if it is Primary or Investor Property?
No
What will they Modify?
Primary residence, investor property
1st mortgage, 2nd mortgage
*****helocs carry a particular problem depending on the security wording*****
Interest rate-
Payment plan-fixed, adjustable, option arm to what you want, usually a fixed or arm.
Term-extend, shorten, fix.
Principal loan amount-We do a competitive analysis to modify the principal amount to the lowest comparative value.
Lastly they are seeing violations of RESPA in the closing papers and have been seeking a reimbursement of Closing Costs.
How do the attorneys determine what they can Modify?
The attorneys use actual weak links of your Mortgage documents to gain strength in the modification process. They have no intention to litigate but do want to be able to defend what they state.
Why?
The more discrepancies, errors and violations they find the easier it is to negotiate a modification. Remember: your lender is looking for reasons to not modify your loan.
What are they looking for?
.Original documents with borrowers signatures that are required to remain with the file. Complete applications, disclosures.
After the audit what happens?
A letter is generated within 20 days to the lender out lining the modification guidelines. The first letter to the lender is a demand to modify. If the lender does not respond within 20 days the lender can be forced to modify the loan to all of the terms requested
.
What happens to my Credit?
A modification does not impact you credit at all except make it easier to make you payments. They do not place statements on your credit like short sales about an amount less than full has been accepted, because it is the same loan.
Can I miss my payments?
While it is neither recommended nor required many borrowers simply find themselves in a position that they can only make the payments or pay for the modification but not both. It will have no impact positive or negative on the modification process but may affect your credit score. Of course the credit deficiency for one missed payment will be less than for a foreclosure later on. Attorneys are currently exploring the possibility of demanding that lenders do not enter derogatory credit while the borrower is in the modification process.
Am I able to refer friends and clients for Loan Modifications?
With proper training and under the watchful eye of a trained associate you may become an associate and you can receive a marketing fee.
Can I be paid for Referring Loan Mod Clients or Friends?
Yes you may receive a fee for each person and loan that they have modified. The amount of the fee is dependent on what services you provide to the advertising and marketing program.
Who oversees the regulation of Loan Modifications?
The Nevada Division of Mortgage Lending is responsible for rules, regulations and laws
The division of Mortgage Lending is looking at anyone who is involved in loan modification.
With out being an associate of an law firm how can I do loan modifications?
All individuals involved in loan modifications must post $100,000 as security and register with the Division of Consumer Affairs.
What's the penalaty if I do Loan Modifications illegally?
They have already begun prosecuting those who are fraudulently doing modifications. The fine is $10,000 per violation.
What if I have been a victim of Loan Modification Fraud?
Contact the Nevada Division of Mortgage Lending Division Investigator at
702-486-0782
