what is the difference between loss mitigation  and loan modification

Loss Mitigation is usually the name of the department in the morgage company that can offer you several work out options.  Loan modification is one of the options.

Great article.  I think that most lenders are actually offering so called "Loan Modification Services" to their borrowers who may be in trouble.  I know that Flagstar Bank offers one from their website.  The Big Question is, will the lender be as willing to negotiate a lower rate and better terms for that borrower than the borrower could get from a Professional Mortgage Modification Company? Please let me know.  I also know that Flagstar will not even look at a Modification Application unless the borrower is at least 30 days late.  Isn't it a bit risky to make application AFTER your loan goes into default???

Hi Moe

Do you possibly have a contact name/phone number for the someone higher up at Citimortgage?  I have a Short Sale that I have been trying to get approved for my Clients and Citi is less than helpful.  The offer is $30K over Market, all Cash, and they still will not accept it. 

Thanks

Barbara

Flagstar Bank had a Loan Mitigation section on their website.  I don't see it any more?  They had stated they would work with a person and possibly lower the interest rate, defer payments, etc.  He sent in his application, his hours had been cut, but was expected to pick up again in a few months.  This person had not been late on a payment in 3 years.  Flagstar told him they do not lower interest rates, and suggested he put his house up for sale.  They have also reported him to the credit bureau, even though he started working with Flagstar the 1st month he was going to be short on his payment.  He owed $965, he said he could pay $700, Flagstar told him they would not accept a partial payment ....   Maybe he should have used a loan modification attorney???

CTX Mortgage contact info

Sonya Ramirez

CTX Mortgage Company

Loss Mitigation Specialist

Toll Free 1-888-790-9500 ext 8127

Direct 214-276-8127

Fax 214-260-6760

SONYA.RAMIREZ@CTXMORT.COM

I've heard of some people having some success contacting their banks directly, however they've had to spend alot of time on the phones and dealing with various departments and re-explaining issues over and over.  I personally didn't have much sucess, but the worst part is that I was given the run-around first before I was rejected.  I finally decided to give it one more shot with one of these loan modification companies.  I knew they had a bad reputation for scamming people so I found one that I could actually verify by going to their office (Debt Barter on Von Karmon Ave in Irvine) and talking with the folks over there personally.  After I made sure everything checked out I decided to see what they could do.  I wasn't holding my breath but I got the paperwork the same day and while they said to wait 120 days for results, they were actually able to reduce my payments before then.  I could personally recommend a guy named Jasper who was the only one I needed to deal with.  His number is 949 429 0174 so give him a shot and he may be able to help you.  Either way I know what its like to be in a bind and hope that you find something that helps out with your situation.

This is an actual email from a lender who is doing a "workout" loan modification for a borrow who has an 8.1% fixed rate loan and has missed a payment.  Even though the borrower now has the funds to come current, his lender refuses to accept any payments from the borrower and the borrower has just recived a Foreclosure Notice in the mail.  Bear in mind that the only reason anyone would get a Sub-prime loan is because their credit rating would not qualify them for a better loan.

"First of all once you are referred to foreclosure your loan is turned over to that attorney's office. Our company has no control over those letters. Per the note you signed at your closing you have given us permission to proceed with foreclosure if you stop making your payments.

 With regards to the plan the "Fed" is offering that is the HMP that our company will try to qualify you for if at all possible. Just as an FYI the criteria and documentation that the "Feds" are requiring through FNMA to approve an HMP is very thorough. Be prepared to submit additional information and they will scrutinize your credit before they will reduce any interest rates or defer any loan balances.

President Obama portrayed this plan as a very simple process and the fact is that this is a government run program and they will  dictate  to Fannie Mae what the guidelines will be. We are still awaiting training on this program that is still weeks away from being ready.

I hope you will qualify and that you will receive what you believe is due to you however if you have poor credit and extreme debit that will most definitely affect whether you will qualify or not.

I wish you the best of luck and again please be patient and let us do our jobs.

Thanks"

need number for chase for a manager of loss mitigation or a direct number to someone that is not maria presllie because i already have her number and she is not answering back

In the above response, didn't you mean to say, "The reason that most LENDERS are in the predicament they are in is because of a consistent lack of discipline, ambition or whatever you  want to call it." 

Maybe we should give them a few more $BILLION and they would have a more optimistic outlook on things .....

I tried going it alone with my mortgage company but was given the run around. I thought about a loan modification company. However, a few I looked up weren't licensed by the DRE in California and with some of the horror stories of deal with some of those companies, I decided to go with a law firm in Orange County, Ca. Thanks to Parman Law Group out of Irvine, I was able to get my principal reduced and my apr lowered also. Now I'm paying at least 1/2 of what my mortgage payment was before the modification. Kudos to Parman Law Group. They treat you like a friend and not just another client.

Does anyone have a copy of the Countrywide / BofA loan modification application package?  I want to know what it says (and what I will be asked) before I call them.

Thank you.

Thank you for the list.

Large help.

it is advised to have an attorney who can help you renegotiate the terms of your mortgage. They can significantly lower your monthly payments.

I ran into some financial trouble a while back and, well, needless to say it put me in a tight spot. I tried to have a modification done but with all the negative press I was concerned about who to choose. I found a company who seemed reputable and was charged a $2300 fee up front. After about 3 months with no results I became impatient. When I would call to check status they would have a different answer every time for why my modification wasn't done. After 4 months my lender was foreclosing and I was on the brink of losing my home. In a panic to save the home that me and my family live in I searched everywhere for an option. I tried to do a modification with the bank by myself but they were blowing me off and making me jump through hoops just to get a call back. An attorney friend of mine, who did not specialize in real estate law, said he had heard good things about a do it yourself kit offered at WWW.MyHomeSavingSolution.com. Tired, frustrated, and at wits end, I visited the site and purchased the package he recommended. I did this about 3 weeks ago and since then I followed the steps and it has worked amazingly well. I have spoken with my bank several times and we have come to a modification agreement which is being finalized this week. After all is said and done, I will have eliminated my past due balances and the bank gave me a 5.25% 30 yr fixed (as opposed to my arm which was at 12.25%) and they credited me $31,000 off my principal. I am no expert but the kit boasted a certain document that, as far as I’m concerned, was the reason for my success. once aware of the fsla document the bank contacted me within 24 hours looking to come to "an arrangement". my attorney friend explained that the fsla (full spectrum legal analysis) was a tool that has been used for years by attorneys to accomplish just that, a successful modification. Apparently there were legal infractions on my loan with the bank and that’s why they were so willing to help. Now... just for the record... yesterday, I contacted the modification company that I had hired and asked for a status (just to see what they would say). they informed me that the bank was not willing to do a modification on my loan and stated several reasons. Knowing that they were lying, I demanded to speak with the manager. After yelling at him for over an hour and explaining that I had done in less than a month what he had been supposedly trying to do for over 4 months, I threatened to call the atty generals office and I received a refund in full. Later that day, I contacted the atty general’s office and filed a complaint about that company only to find that they were already under investigation. moral of the story is... this specific kit worked wonders for me and my family. my home appears to be saved and my children will continue to have a comfortable roof safely over their heads. At the end of the day that is all I cared about. So as a father, as a man who has been in this specific bind, and as a human being that wants to be able to do something good for others I am recommending the very same product I purchased at WWW.MyHomeSavingSolution.com. If this is able to help anyone out there then I have done my good deed for the day

Robert, NY

shannon and keith, 

i completely understand the skepticisim. after what i went through i felt the same way. but in truth, i have no affiliation with this company at all. i was simply reffered to the kit as i mentioned and when i followed the steps, it worked. it was that simple. i purchased the 995 kit but i got a coupon code from my friend and it saved me 10%, not much, but something. i couldnt vouch for the other packages. as far as i am aware, the fsla that they gave me was the lynch pin to my success. my atty told me that the bank was actually liable for much more than i was aware and that is why they were so quick to settle. but again, i am not familliar with the standard process so i can only comment on what happened to me. i am the type of person who, when im fed up with how i have been treated i take action. yes... i went to great lengths to get my story out there, but not to make money as i have nothing to do with them, but because i want to see these types of companies lose business. they shouldnt be able to take advantage of homeowners in desperate times the way they do. i am a father of three and i have to constantly worry about being able to provide for them. when someone or some company threatens that, this is how i respond. my sister mary is also in the process of doing the same thing i did and she has been taken advantage of several times in this way. thats why, when i found a solution for my problem i wanted to get the word out. simple as that. you obviously went to there site and looked around. if you liked what you saw buy it, if not dont. just sharing my experience and getting my frustrations out. 

BOB, i just viewed the website you have been commenting on and i believe the fsla that the offer is a forensic audit or something similar. if it is that would explain your success. also, i see that they offer an affiliate program that you claim you are not a part of. in either case, the product they are offering seems to be a good one. i called and spoke with a man that was very knowledgable and quite reassuring. i have had some problems with a modification my self and i am in the process of filing a complaint with the attorney general. i have ordered a do it yourself kit that was 149. it was nothing special but then again it did not include and audit if that is what the fsla is. the man i spoke with said it was a full spectrum legal analysis and he was very adiment that no one else offered it with the kit. unfortunately they dont seem to offer just the fsla to combine with another kit. if i was interested in ordering it would it be possible for you to get the coupon code you used. thanks, James

James, the cupon i used was rae2169. it was a 10% discount. there wasnt an expiration listed so try it and see.

jim, if you dont mind me asking, what did that cost you.

Thank you for all the useful ideas.

It is a great website! Mortgage is a problem for millions of people worldwide!!!

Hey Moe - what do you think of this?

James Parsa (Parsa Law Group) Charged By CA State Bar With Crimes Involving Moral Turpitude, Stemming From Parsa's 2 Rape Convictions in 2001

On August 31, 2009, The Chief Trial Counsel's Office of the California State Bar filed charges against James Parsa, owner and founder of Parsa Law Group, for moral turpitude stemming from his 2 convictions of statutory rape from 2001.  (Actually he pled guilty to 2 and his crafty attorney got him off on the other SIX). 

Here's the complaint from the California State Bar:  

http://members.calbar.ca.gov/courtDocs/09-C-12545.pdf

You know, NYSE:UDR - UDR, Inc. must feel really dumb for joining in with Parsa Law Group in their defamation case against consumer advocate, Erin Baldwin.  Couldn't be good for their reputation, now could it. 

Erin Baldwin was warning consumers about James Parsa on her blog, Bad Biz Finder, for six months, until June when Judge Franz Miller, slapped a Judgment of $605,000 on her for defaming James Parsa's reputation and shut down her blog.  Then last week, Judge Franz Miller ordered a bench warrant for Baldwin's arrest for Contempt of Court.  Rapist - consumer advocate - hmmm.  Who's in contempt?

So, let's see -- on one hand we have a consumer advocate warning people about James Parsa -- and on the other hand we have a ambulance-chasing, pretend loan mod lawyer rapist.  Not sure this case went the right way.

Baldwin not only has a $605,000 judgment on her record even though as of July 14, Judge Miller didn't believe she could speak on behalf of the case, but that didn't stop him from issuing a bench warrant for her arrest.

AND last week Judge Miller allowed NYSE:UDR - UDR, Inc, The Law Offices of Jeffrey Cancilla, and The Law Offices of Craig Laverty, to join James Parsa and Parsa Law Group into one big ol' defamation case against consumer advocate, Erin Baldwin. 

AND Judge Miller appointed himself the ever-watchful judicial eye of all things fair and just in this case to further violate Baldwin's right of free speech and free press without prior restraint and due process under the laws of the Constitution of the United States.  Amen, brother.

How did a rapist, loan mod fraud become the GOOD GUY and the consumer advocate who warned consumers in foreclosure become the BAD GUY?  Baldwin told the truth about UDR's illegal California leases to help tenants - and the illegal loan modification transactions being performed by Parsa, Cancilla, and Laverty, among others - in a free speech forum.  Are we missing something or we in Communist Cuba? 

http://visionweb.occourts.org/Vision_Public/DisplayCaseInfo.do?caseNbr=555797&personNbr=2132600&src=case_src

So, folks, let this be a warning to you -- it's hazardous to your personal safety and well being TO TELL THE TRUTH.  The California court system does not like it when you do that. 

If you want to be homeless, have your personal property confiscated, your car towed and then sold, a six-figure judgment against you, a good possibility of going to jail, and 4 other lawsuits pending against you, then do what Erin Baldwin did. 

Write the truth on a blog, speak the truth to consumers and tenants, and defend your rights as an American citizen - see where it gets you.

Beatty Hanslinger

See Criminal Case Against Parsa: http://visionweb.occourts.org/Vision_Public/DisplayCaseInfo.do?caseNbr=555797&personNbr=2132600&src=case_src: Orange County Superior Court Case No. 00HM06291.

Oh yah, and here's another one for child endangerment where Parsa left a child under the age of 6 alone in a car unsupervised:  http://visionweb.occourts.org/Vision_Public/DisplayCaseInfo.do?caseNbr=5888875&personNbr=2132600&src=case_src:  Orange County Superior Court Case No. OR1000938

See:  Parsa Law Group v. Bad Biz Finder and Erin Baldwin Orange County Superior Court Case No. 30-2009-00125305-CU-DF-CJC - Link to Court Docket:

https://ocapps.occourts.org/CivilPubv2/DisplayCaseInformation.do?caseNbr=30-2009-00117752-CU-DF-CJC&src=case_src_dtl#top_page

See:  UDR, Inc. v. Bad Biz Finder and Baldwin, Orange County Superior Court Case No. 30-2009-00125305-CU-DF-CJC - Link to Court Docket: https://ocapps.occourts.org/CivilPubv2/DisplayCaseInformation.do?caseNbr=30-2009-00125305-CU-DF-CJC&src=case_src_dtl#top_page

See:  The Solution Law Group, LLC, Jeffrey A. Cancilla, Craig M. Laverty, Solution Processing, LLC v. Erin K. Baldwin, Orange County Superior Court Case No. 30-2009-00126004-CU-DF-CJC

Link to Court Docket: https://ocapps.occourts.org/CivilPubv2/DisplayCaseInformation.do?caseNbr=30-2009-00126004-CU-DF-CJC&src=case_src_dtl#top_page

 Beatty Hanslinger

Wonderful source of information on this blog! Thank you all for sharing. <a href="http://www.mortgageloanmodification101.com/mortgage-loan-modification.php" title="Mortgage loan modification assistance">Mortgage loan modification assistance</a> is available to home owners who are on the verge of losing their beloved house.

There’s so much misinformation out there that people don’t really know what is and is not. It’s refreshing to see people that know what they’re talking about. You have an Informed commentary seems to be a rare commodity these days. Keep it coming.feldman law center can help with  Loan Modification

my wife and i are currently looking to modify out of our adjustable mortgage. i have been reading through all of the above comments and there is a lot of good information here. id like to thank everyone for your comments, they help more than you know. i looked through a lot of the links and read as much information as i could find.i am trying to make the decision as to hiring a modification atty or doing it myself. i read a post above that listed a site at www.myhss.net and visited it. they have a massive amount of information available for anyone who is looking. i spoke with a woman there and she assures me that the process is not that difficult and that i would be able to accomplish exactly what im looking for in less time if i did it my self. the price seems right im just a little bit nervous about getting into a process and later finding out that its more complex than i originally thought. any suggestions?

thanks,

Sam

just an update. i asked a few weeks ago about suggestions on modifying my own loan. after purchasing the platinum package on www.myhss.net i was pleasantly surprised to find out how easy it actually is. i got back an audit that claims that my loan has violations of the "TILA" . after presenting it to the bank, i am well on my way to a successfull modification. my advice to anyone looking to modify would have to be, do it yourself, we saved over $2000.

Sam

Great article! My mom was turned down for a loan modification with her lender and was then scammed out of 4k by a company in Florida. She then hired an A rated company in Glendale, Arizona named Mortgage Assistance Group and finally got a real loan modiification. Their information is below. We as consumers should really start keeping track of the good guys in the industry.

Mortgage Assistance Group

www-mag-az.com

623-486-4505

Me and my friend tried modifying through my attorney and for months there was no progress. They asked us for tons of information which we kept having to update. Finally two months ago they partnered up with another firm that focuses only on modifications and settlements and within 3 weeks they were able to save me $943 a month. My friend's loan was done within 5 weeks and she saved over $500 a month. While I like my attorney, I think his firm got way over their head by taking so many clients when they didnt really have the focus to work on my file. Whoever you chose to work on your loan, I suggest you make sure they know what they are doing. The company that successfully got my loan modified is wefixmortgages.com. The name of the rep I dealt with is Michael and I would be happy to recommend him to anyone looking at different options. You can reach him at (561) 702-7378.

I would like to add 

Regarding Jan 12 comments.

What we have found is that many attorneys, like many brokers, were quick to enter this market early in its development and did not have the expertise, experience or infrastructure to carry out this process AND provide a level of customer service that was acceptable. Let's face it...attorney's are not the best at returning calls.

The latest product offerings in this area are more of a hybrid between, attorney "based" models, and actual lawyers processing modification files. In this hybrid, experienced processing centers have added the necessary legal resources to ensure compliance and selectively apply the appropriate leverage to accomplish the best available modification.

Many have fled the industry due to the overwhelming tide of press and legislation that plagues the industry. This is a valuable service and there are ways to offer this service without incurring the wrath of the federal government and the Better Business Bureau.

Brokers are not to blame in this battle, the new breed of brokers who are staying in the industry successfully are more interested in developing strategic partnerships based on the quality of systems, processes, and services rather than price.  Pragmatic brokers are outsourcing their processing operations.

My name is Joseph Noori and I'm with Nextwave Financial. We are a Real Estate and Loan Modification Company focused on home retention. We've had success with many lenders out there and negotiated good rates for clients who were very close to losing their home. If you have general questions on guidelines or the loan modification process with specific lenders, feel free to visit our website: www.nwfin.org or call us at 888-668-4193.

Thanks,

Joseph Noori

www.nwfin.org

Participating servicers are required to service all eligible loans under the rules of the program unless explicitly prohibited by contract; servicers are required to use reasonable efforts to obtain waivers of limits on participation.

Do you have an updated contact list for 2010 for loan modification especially Bank Of America?

I just want to say that as a homeowner that we need to be VERY careful who we give our business too. The first month I was in default I was contacted by a couple of companies who claimed they could help me. The told me that they knew for a fact that they could help me before getting any of my information. Each person I spoke to over the phone told me that they could guarantee me a modification. I went with a company who I thought was creditable gave $1,000 and low and behold when I needed to speak to one of them they no longer and were MIA with my money. And what's worse is that nothing had been done on my modification. My husband and I were desperate and went with this company called Under Water Homes Help www.underwaterhomeshelp.com . They actually sent a representative out to our home to speak with us. He sat their and listened to our story and looked over all of our finances. He even looked over our taxes for us and said that he would re do them over for us saving us $12,000 we overpaid! I was floored. He even sat with us for 3 hours just to make sure we understood everything. Whenever I call them they pick up the phone and they give me updates on what is going on. I have only been working with them for roughly 2 weeks and the package has already been sent in and is being reviewed by the bank. They take of everything and are very helpful. I'm very lucky that I was able to find a good company that is ACTUALLY helping me rather than just taking my money and running.

Loraine

I wonder how many posts on this board or others for that matter.

Like the one above, that glorifies the company they used to get them out of a mess. Are actually like they say they are, the customer. And not actually a representative or owner in the company.

Sorry, but I don't believe for a second any home owner would take the time to post to the world this kind of thing.

I do find it highly peculiear that Mr. Paul of the website you mentioned is also a member here.

I'm just saying....

I am working with an individual on a loan mod. We contacted their lender, as we were advised to do and did the application. She is 30-60 days late. After showing her need, as her income had dropped significantly and she was at an 8% 30 yr fixed rate, we felt sure she would get a mod.  Two days ago the lender called and said she was not approved for a modification as they felt the economy would pick up and she would be able to start making her original payments again.....

Does the Gov agency that initiated this program know what's actually happening out there with the Loan Modification Programs?  Why doesn't someone in the Gov. hold these lenders accountable?

I had a mortgage with Flagstar and tried to do a loan modification.  They sold my loan to Nationstar ...

Does anyone have a direct contact for Wachovia? I am looking for a name, email or Fax nuber. Thank You so much.

I have their loss mitigation line as 1-800-642-0257. And an alternative line as 1-866-642-9405 (Press 0)

Not sure if they are still accurate?

Its a very nice blog...There’s so much misinformation out there that people don’t really know what is and is not.....thanks for sharing...

Thank you for providing us so much of information. It will be our pleasure to learn more of it. Will surely look forward to it. I will be glad if you provide more of information in relation to loan modification.

Well thw points described by you are really good and worth reading, as it is very important for all who get into studing finance to know about these terms.

Loan Modification Info

You've got some useful information on this site, good job. I also blog about helping homeowners get a lower mortgage pay, and the ins and outs of loan modification at our site

Very informative and useful site.  Thanks for contributing to the

education of homeowners facing serious problems.

<a href"http://www.freemortgagereview.org/">FREE MORTGAGE REVIEW</a>

The President allocated around $50 Billion to help stop foreclosures. Only about $750 Mil has been used. The administration feels that home owners may not need help after all. Is anyone in the Administration looking into this to find out what is really going on!!!

I am helping a family try to stay in their home (Nationstar is the lender).  After begging and pleading Nationstar will allow them to see if they can use this program. Their income has dropped from $3,000 per month to around $1,300 per month.  Nationstar said they could drop their payment, for a 30 yr.  8.1% fixed mortgage from $1,025 per month to $775 per month on a 3 month trial basis.

What happened to all this press we see saying they can drop your rate as low as 2% ?????

Appears to me that NO ONE on a Governmental level knows what is actually going on out there!

Last week I spoke with three people, now seeking rentals to live in, who said they received a notice form their mortgage company telling them they where being foreclosed on and must be out of the house ASAP, with no offer to help them qualify for the program!

Really, why is their no one on a Governmental level who seems to have a clue as to what is actually happening out there in the real world???

Loan modification company provides best solution of your problem but it takes fees for that so it is advisable to that find the best company who will solve your problems without wasting your time.

I think there is absolutely great information here for distressed homeowners.  We have a website that helps these people find the <a href="http://www.loanmodwire.com">Loan Modification Programs</a> they truly need.

Well i tried this info and still no luck on getting a modification, I went to this company that provides a guarantee in 3 months, for me it worked out i got modified exactly in 3 months, they use some kind of software that lenders use to get people modified. give it a try great company and great service, hope this helps most of you like it did for me . its called Regency Financial Group and you can contact them at 877-376-3827 ask for Francisco he is the one that helped us.

Thank you for the very helpful list!

wesavehomesonline.com

So Tell Us Chris, how is the company you are recomending with regards to the FTC's new MARS Requirements?

I am helping a person through a loan modification with Nationstar Mortgage, Lewisville, TX.  The home owner paid 3 "trial Payments".  The lender sent the Loan Modification documents to them for signatures. The home owner got the docs on a Friday and had to have them signed, noterized, and sign a release that if Nationstar had made any errors he would release liability. He had to return them by the next day overnight mail. He has made payments for 6 months. Last week Nationstar informed him he had not held up to the stipulations of the modification and they are proceeding to foreclose ....

I have a B of A Mortgage this Firm worked for me that someone referred to me www.thereliefcouncil.com just wanted to pass it along so people dont get ripped off out there trying random companies

I help a lot of people decide what to do with their <a href="http://makecoronahome.com">Corona Real Estate</a> and some decide to do a short sale. I've been very successful at getting even the toughest of short sales through. Coldwell Banker Mortgage is posing more of a challenge than most. Does anyone have a contact number for a manager or V.P. of the loss mitigation department? Also... any info on a higher up in Ginnie Mae would be helpful too.

Thanks - Craig