Today's loan modification is a death penalty. Have you a client whose loan modification is like an early death sentence? I do. I am doing a PRINCIPAL LOAN REDUCTION on his property in the East Bay, CA. He bought it in 2005 and paid $425K. Got behind since Aug 2009 and his primary lender offered him a loan modification adding another 35K to the first loan. He also has a 87K second. Now add the two he now would owe ( $425K + 35K )+ 87K. Like a death sentence!
In my program, PRINCIPAL LOAN REDUCTION refinancing, based on the current market value of his property which is now 136K, 90% of this is 122K, right? I got him a loan forgiving the difference as the notes were purchased directly from his lenders. I need not mention his first note holder, but it is one which Countrywide end up going to.The difference is forgiven without tax consequences. What have they done with the stimulus money Washington has given them? As you know, his purchase mortgage was stated income.
This time we have full documentation fixed for 30 years and no prepayment penalty after 3 yrs. We charge a flat fee unless there is a court date, then there is an extra charge of $1000 for legal mediation services. A total of $2595 in fees. So you say, this is unbelievable! If you have done loans, you know the fees on a typical loan mod or refinancing are easily over 5K, not including points to the loan agent.
This fee is payable in advance, and is all inclusive, covering appraisal, title fees, etc. If the modification is declined, the fee is refundable. If approved and client pulls out, there is a percentage charge.
Please visit my website at http://www.emerynetwealthgroup.com and write me your comments, or call me at 510-653-9518.
Does this make sense?