OK, here we go…last week I was turned on to this company by a good friend of mine that lives in Virginia. He thought it may be a good way to make some money but increase my referral business.
This may be a small step in helping people with their current mortgage crises, and if this makes sense and enough of us get involved it could go a long way to help the National situation.
Loan Restructure vs. Loan Modification
Both procedures help the Mortgagee achieve some relieve from the burden of mortgage payments that are presently unaffordable. There are several fundamental differences that need to be fully understood so the Mortgagee can make a decision as how to proceed in a manor that serves their best interest.
Loan Modification Eligibility
Minimum of 12 months elapsed since loan origination date.
The mortgagor most be delinquent (3 full payments due and unpaid) or more.
Default due to a verifiable loss of income or increase in living expenses.
The Loan Modification mortgage must remain in the first lien position.
Loan may not be in foreclosure when executed.
Owner occupant, committed to occupy property as primary residence.
Mortgagor has stabilized surplus income sufficient to support the Loan Modification mortgage.
Does not have another FHA insured mortgage.
Loan Restructuring Eligibility
None of the above.
Loan Restructuring Advantages over Modification
Mortgagor does not have to be behind on their payments
They can be current.
Current credit score is NOT an issue ‐ No credit check is required.
Mortgagor does not have to reside in the property.
Investment property qualifies for Restructuring.
Mortgagor may receive a reduction in principal, interest and a cash refund.
No “Hardship” letter is required.
Existing income and debt does not matter.
Restructuring a loan allows the Mortgagor the ability to re-examine the loan at the point when it was originated. If the loan was predatory in nature or did not fully comply with RESPA requirements, the original loan is voided and restructured (not modified). This allows the Mortgagor to negotiate with the Lender from a position of strength. If the loan was “bad” from the beginning, why modify a loan to the advantage of the Lender? Restructuring is clearly the best option for everyone.
CONSUMER LOAN AVDISORY GROUP INC.,
So now we know the difference between loan modifications and restructuring the current mortgage you may want to know how it is executed. If interested you sign up with CLAGI (CONSUMER LOAN AVDISORY GROUP INC.) as an independent representative. In turn CLAGI will send you marketing material and forms that you will have to collect from the distressed homeowner. The fee for the preliminary review is $500.00. CLAGI is auditing the current loan for RESPA violations. This process will take three days upon receipt of the documents. CLAGI will inform you if they will be able to build a case on the behalf of your client. Eight out of ten applications filed for preliminary review have found RESPA violations. If CLAGI does not find any RESPA violations the $500.00 deposit will go back to your client.
During the audit process CLAGI finds RESPA violations and will proceed and build a case to present to the lender. At this time the balance of $1500.00 is due to CLAGI. The total cost is $2000.00 for a 1st and $3150.00 if the home owner has a first and second. Another cost is at the back end. Once CLAGI files their pre-litigation RESPA violation findings the bank has twenty days to respond. The success rate for a loan restructure is 99% which is far superior to loan modification. The banks want nothing to do with RESPA violations and are willing to make the current mortgage null and void. Which means the homeowner may get a refund of their closing costs of the original loan. CLAGI collects one-third of the refund. So CLAGI has a vested interest to see the restructure process through. The new loan will be reconstructed at the current mortgage rate and current market value of the home.
What You Make as an Independent CLAGI Representative
The representative will be paid three hundred dollars when the 1st Mortgage proceeds to the full audit, and four hundred dollars for a 1st and 2nd Mortgage.
Upon completion of the full audit and settlement the representative will be entitled to receive a commission in the amount of 3% of the client’s cash settlement award.
So you can see that the banks do not want to deal with RESPA violations and want to settle as quickly as possible.
Please go to www.clagi.com for more information. To sign up as an independent rep click on the contact tab and fill in your information. In the comments section tell them you want to be a independent CLAGI rep and you were referred by Frank Godjikian. Ray Contractor the COO will email you the documents you will need to get started. Also, you can jump on a conference call that Ray hold for Q & A everyday at 3:00 EST. Call: 212-796-1700 pin 56780#
If enough of us do this we will curb the foreclosure market and we can get back to selling non-distressed properties.
Woods Real Estate
Proud Dad of Lcpl Michael Owen Godjikian
United States Marine Corps