I know that both Realtors and Loan Officers have past clients who are either behind on their mortgage or are upside down on their home. Many are looking for help and guidance from their real estate professional. Here is one answer.
My mortgage practice has evolved to include a consulting service for distressed homeowners. I offer a free phone consultation to help people understand which option is the right choice for them and the costs associated with that choice.
Their options may include loan modification, forbearance, a short sale, or even a deed in lieu agreement. The problem is that lenders are simply not modifying loans in any meaningful way because there really is no incentive to do so.
If they are in an ARM, I may suggest a "forensic mortgage audit" to see if the closing documents and deed of trust contain violations of Federal or State law. You may not realize that as many as 80% of all ARMs originated since 2001 contain violations of the many State and Federal anti Predatory Lending laws. If errors are found, a homeowner will have a significantly better chance of negotiating a favorable modification agreement or forbearance on their own without spending thousands on a "loan modification" company.
A successful forensic mortgage audit will force the lenders' hand. When facing their options: modification, foreclosure, litigation, or stiff federal fines and penalties, many lenders will choose Loan Modification as their most financially sensible option.
If they choose legal action against the lender, their attorney will be able to stop any foreclosure proceedings immediately and they can often remain in the home without making payments until the case is resolved.
There are several provisions in the new housing rescue bill signed into law recently that may help by refinancing based on the current value and without credit qualifying. If the homeowners are 62 or older, I have used a reverse mortgage several times to keep people in their homes. Again, without credit qualifying.
The difficulty for most distressed home owners is in understanding which of the confusing programs is the best choice and that is where I can help.
If your clients are interested in this free, no obligation service, I will need them to make a phone appointment. The calls generally last 30-45 minutes and can often be scheduled at a time convenient to them.
The information I will need includes:
•1) The current loan type, balance, payment, and interest rate
•2) I will need to know who the lender is
•3) I will need to know if they have received a Notice of Default
•4) I will need to know their current income
I have a "white paper" on the forensic mortgage audit process and would be happy to share it with you by email. The audits work and we are in fact keeping people in their homes.
Take care and God Bless. We will find a way out of this mess.
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