1. Start by identifying whether your mortgage is lawful. Be sure that there are no Truth in Lending Act Violations or RESPA violations and Lender wasn't fraudulent who originated your loan. Have a professional, experienced mortgage attorney and/or legitimate, credible mortgage professional examine your loan documents for potential violations.

2. Develop and maintain a complete written life of loan history attempting to highlight all phony charges and fees included in your mortgage balance. Make sure any inflated appraisal and/or loss of property values are included and calculated.

3. Compare the loan you got with the one you thought you were getting. Are the terms the same? Is your Annual Percentage Rate ("APR") the same as the one you were quoted? Are your total monthly payments the same as you were told they would be? Is there a prepayment penalty, and if so, were you notified property?

4. If you refinanced, look at is the "notice of Right to Cancel" a.k.a. "Right of Rescission." Wile it may vary by state, you generally have three days after signing loan documents to change your mind and cancel the loan. The borrower must be told this right in writing. If the creditor fails to properly provide notice of this right to cancel, the right of rescission may be extended for up to three years. When the right is extended for three years you may be able to rescind the loan at any time before three years, meaning that the loan is treated as if it never existed. This means the lender may have to refund all interest paid, closing fees, broker fees, and pay your attorney fees.

The extended right of rescission is a powerful tool to motivate a lender to modify your current program.

If no laws have been violated on your mortgage, then consider approaching your lender for a loan modification on the basis of some hardship you are experiencing after the loan was originated. Look at it through the lenders eyes and ask for something that makes it more attractive to modify your loan than foreclose. A loan modification generally occurs where all parties involved mutually agree to create a new and better loan.

Create a game plan for exactly how you plan to approach your lender. Your lender has at least two departments who talk with delinquent borrowers. The first is usually the collections department, which consists of people trained to force money out of you and get you current on payments. The second group should embody loss mitigation specialists. Some other frequently used labels of these departments include; foreclosure prevention, loan resolution & delinquency customer service. It may be difficult to get through to the loss mitigation department, making the services of a professional trained in working through this aworthwhile investment.

You will be asked to provide items such as pay stubs, tax returns and other types of personal financial information to justify the hardship you are claiming. Pre-plan your budget outline in preparation for their requests. At this point, some lenders will assign the file to someone higher up in the loss mitigation department.

It's often harder for homeowners to reach decision makers directly vs. your paid representatives because they may try to insulate themselves from the emotional appeals of direct borrowers. That's when it's time to call in the professionals.  I have some of the best legal representatives who specialize in this field to refer you to!

www.MortgageAdvisor.info & www.GregZaccagni.com

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