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In cases of hardship, a lender can work with you on a loan modification which will revise your current mortgage. This is done in an effort to make your loan more affordable. Usually it is in the form of a rate reduction and conversion of an adjustable rate mortgage (Adjustible Rate Mortgage) to a fixed loan, typically a 30 year fixed. In this day and time, it seems that everyone calls himself a Loan Modification Specialist. Such loan modifying "mills" should probably be avoided; borrowers should work with companies who have licensed attorneys specifically employed to neogtiate. Most of these so-called loan modification companies have displaced mortgage loan underwriters doing the negotiations. Lenders and servicers are very busy with desperate homeowners trying to save their homes from foreclosure. Unfortunately, they do not have the man power or the capabilities to save everyone. Instead of figuring out the details with their moneylender, a lot of homeowners are easily lost in the system of rules and enduring hardships of an unnecessary foreclosure. Due to a lack of knowledge and negotiating prowess, homeowers like yourself may get taken advantage of by lenders. The reality is that the majority of homeowners have no contact with the real decision-makers. Homeowners oftentimes wind up settling for much less, than they could have without professional help. I can assure you that without legal representation, you will not get the same results! It seems to be that calls start to get answered and letters begin to receive responses when a lawyer gets involved. Often this can make the difference between saving your home and losing your home. There should be no doubt that you will achieve far better results than going it on your own. A forensic loan doc audit should be included with every loan modification. A separate cost should not have to be paid for a loan doc audit. A lot of companies will have you pay anywhere from $895-$1,500 just for the loan doc audit itself; then subsequently charge you $2,800 or more for the loan modification. A loan doc audit should include the following: a. Review file for efficacy b. Review file for RESPA (Real Estate Settlement Procedures Act) violations c. Review file for TIL (the Truth in Lending Act) wrong doings. File should be examined for possible fraud. Review the file for violations of Predatory Lending laws. Reviewing the loan documents is vitally important because the number of violations has a direct impact on how much leverage you have with your lender. Another common loan modification company scam is to charge a separate fee if you have a 2nd mortgage. If you have a second mortgage, you should never have to pay a separate fee. Be suspicious of a company that expects payment for negotiating with your second lender. This is a frequently used ploy. You should only work with a company that has a true 100% money back guarantee. You should not give a loan modification company any money at all if it does not offer a 100% money-back guarantee. If the company is really as good as they say they are, they should back it up – in writing. A Cease and Desist letter to your lender should also come with each loan modification. The Cease and Desist letter prohibits lenders from contacting you directly and instructs the lender to contact your attorney instead, thus relieving unneeded stress during this difficult time. With all of the bad press going around concerning loan modification companies it is imperative that you do your due diligence when protecting your most precious asset and possession – your home. Therefore,you must be prepared to ask many questions. The first thing to do is to look for a company that has a lot of experience in mitigation, and they know what they are doing and could put your case together in a short amount of time. They should have a full understanding of how to package your case file the way the lender expects to see it, saving valuable time and achieving near perfect results. These streamlined procedures reduce the process time, helping you end the stress of waiting for a final resolution. Your company needs to have in-house counsel who are leading experts in real estate negotiaion and litigation.
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A licensed Real Estate Broker in California, Paul Chavez has over a decade of personal experience. No competitor can beat our combination of experience in the industry, legal representation, expert staff, results, and a full money-back guarantee. It is the advantage you need when defending your most precious asset and possession. If your house payments are overwhelming you, visit us at: www.candacapital.com/Loan_20_Modification_20_Services.html So you can sleep soundly again, starting tonight!
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