Loan Restructure vs. Loan Modification

By
Real Estate Agent with Woods Real Estate

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

 

Overview

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.

 

Summary

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.

 

Kindest regards,
Frank G.
Woods Real Estate
Cell: 978-265-6426
Fax: 978-947-3667
Email: FrankG@cbwoods.com
Semper Fi
Proud Dad of Lcpl Michael Owen Godjikian
United States Marine Corps

 

Comments (9)

Michael Wayne Jackson
Coldwell Banker - Novato, CA
Broker - Seniors Real Estate Specialist Novato

How long do most loan restructures take? Have there been many loan restructures?

Jan 14, 2009 05:22 AM
Frank Godjikian
Woods Real Estate - Billerica, MA

The bank needs to respond within 20 days and it take 60-90 days to complete. You get paid the 300.00 when Clagi takes on your clients case. They pay every Friday. They are located in Las Vegas and are doing an average of 450 loan restructures a month.

Jan 14, 2009 05:29 AM
Anonymous
doris p. dulce

Hello,

I'm interested of becoming an independent representative.  Please send me all information.

Thank you,

Doris

 

 

Feb 09, 2009 07:41 AM
#3
Anonymous
Me in St. George, UT

Hello, if anyone is considering working with CLAGI (http://clagi.org) or Ray Contractor or whatever the new name is (Loan Concepts?), I have had a horrible experience with them and would not recommend them to anyone. I signed up and gave them the inital payment of $500 in March of 2009 and was told that the whole process would take 2-3 months. After 3 months (June) nothing had happened at all and was told to pay $2500 to get the process going on a loan mod. I waited another month before I started calling, after hearing nothing from them for a month, and after leaving approximately 20 messages that were never returned, I told them I would like a refund. There were very unapologetic and refused to ever call me back when i left messages. on July 3rd I got a call informing me that my loans were not going to work out and that they recommended a refinanace.

Long story short

These guys are very hard to work with and from my experience, they dont care about anything besides pushing through as many of these as they can without giving any customer service. I was very unimpressed with the whole company.

I am still trying to get my money back.

Jul 29, 2009 08:42 AM
#4
Anonymous
Me in St. George, UT

I am still trying to get my money back, has been 5 months.

Consumer Loan Advisory Group, Inc. Sucks!

http://clagi.info

 

Oct 23, 2009 07:25 AM
#5
Anonymous
Me in St. George, UT

<a href="http://clagi.info">Consumer Loan Advisory Group</a>

Oct 23, 2009 07:26 AM
#6
Anonymous
CLAGI FRAUD

CLAGI IS UNDER FEDERAL INVESTIGATION. KEEP UP THE BS RAY, ROCKY! ITS ONLY A MATTER OF TIME!!!

Nov 19, 2009 03:25 PM
#7
Anonymous
CLAGI= RATS!

CLAGI IS NOTHING BUT A BIG 'SCAM'. YES. THEY ARE FRM NEVADA AND THEY CLAIM THAT THEY HAVE DONE THOUSANDS OF LOAN RESTRUCTURES BUT THAT IS ALL BS. ALL THEY DO IS TAKE UR $2,500 OR $3,550 ( IF U GOT 2 LOANS), AND THAT IS IT. ITS BEEN OVER A YEAR, AND UNTIL TODAY I HAVE SEEN NO LOAN RESTRUCTURE BEING DONE TO ANYONE. THE ONLY THING IVE BEEN SEEING IS CLIENTS LOOSING THEIR HOMES DUE TO CLAGI, NOT DOING THEIR JOBS. ROCKIE AND RAY ARE TWO FAT RATS, THAT ENJOY STEALING AND TAKING ADVANTAGE OF HARD-WORKING PEOPLE WHO THE ONLY THING THEY WERE LOOKING FOR WAS TO SAVE THEIR HOMES. NOW, WE GOT SOME CLIENTS HOMELESS BECAUSE OF THESE FAT LIERS! BUT DONT WORRY KARMA IS A BITCH. AND SOONER OR LATER, U GUYS WILL PAY. SO I JUST SAW UR NEW WEBSITE, FIRST SECURITY LENDING, IS THIS YOUR NEW NAME NOW? SO U STILL CONTINUE ON SCAMMING INNOCENT PEOPLE?

Jan 27, 2010 03:37 AM
#8
Anonymous
Zach

THIS COMPANY IS A SCAM. WHATEVER YOU DO DON'T USE THEM. WE WERE TOLD THAT THEY WOULD HELP US AND ALL THEY HELPED WITH WAS TAKING ABOUT $3000 OF OUR MONEY. MONICA, ROCKY AND WHOEVER ELSE WORKS THERE ARE A BUNCH OF LYING BASTARDS. I THINK I PUT MORE TIME INTO MY CASE THEN ANY ONE OF THESE FOLKS DID AND WE GOT NOWHERE.

DO NOT DO BUSINESS WITH THESE JOKERS!

Sep 18, 2010 07:31 AM
#9