My plan for Loan Modifications i.e. Attorney loan mod

Recent Loan Modification studies have shown that a large percentage of traditional loan modifications put the borrowers more upside down than when they started.
Unfortunately many loan mods are leaving people with higher monthly payments. In many loan modifcation the money you did not pay gets tacked on to the back of the loan… Increasing your loan balance and making you more upside down. This is why over 50% of all loan mods are in default. They are not fixing the problem they are just postponing it.

Before you go into default on your loans at the advice of some former subprime loan seller, make sure you understand that absent finding some legal leverage over the lender you have a good chance of seeing your payments going up.

Our Loan Modification program includes

1. Upside Down Analysis

2. Qualified Written Request and offer of Loan Modification

3. Letter informing lender of clients election to pursue remedies carved out by recent California Law under 2923.6 and or Federal Programs under the Truth in lending Act and the Fair Debt collection practices Act.

4. Letter Disputing debt (if advisable)

5. Cease and Desist letters (if advisable)

6. Follow up, contact with negotiator, and negotiation by an attorney when needed.
By now many of you have read about all the Federal Governments Loan Modification Programs. Others have been cold called by a former loan brokers offering to help you with your Loan Modification. Its odd that many of the brokers who put people into these miserable loans are now charging people up front to get out of the them.

Before you spend thousands of dollars with someone, do an investigation:

1. Is the person licensed by the California Department of Real Estate? Or, the California State Bar?

2. Are your potential representatives aware that have to be licensed according to the DRE?

3. Are they asking you for money up front? They are violating the California Foreclosure Consultant act if they are neither CA attorneys nor perhaps Real Estate brokers in possesion of a no opinion letter from the California Department of Real Estate? Note… if a Notice of Default has been filed against your residence only attorneys acting as your attorney can take up front fees. Don’t fall for “attorney backed” baloney. Are you retaining the services of the attorney or not? Did you sign a retainer agreement ?

4. If your potential representative is not an attorney make sure he or she is a Real Estate Broker capable of proving their upfront retainer agreement has been given a no opinon letter by the DRE. (As of November 2008 – only 14 non attorney entites have been “approved by the DRE.)

5. If somone says they are attorney backed – ask to speak with the attorney. What does attorney backed mean? From what we have seen it is usually a junk marketing business being run by someone who can not get a proper license to do loan modifications.

6. Find out how your loan modification people intend to gain leverage over the lender.

7. If you are offered a loan audit or a Qualfied Written Request under RESPA letter – will an attorney be doing the negotiating against the lender? Will you have to hire the attorney after you pay for your loan audit? Doesn’t that put cart before the horse?

8. Will it do you any good to have a loan audit done if you later have to go out and retain an attorney. You want to retain their services of an attorney before you pay for the audit. The loan audit is the profit center; negotiation takes time.
9. What kind of results should you expect?

10. Who will be doing your negotiating?

11. Will the Loan Modification request go out on Legal Letterhead?

12. How much will you have to pay? Are you looking for a typical loan mod result or are you looking to leverage the law in the hopes of getting a better than average loan mod result.

13. What if your are not satisfied with the loan modification offered by the lender?

14. Should you go into default on both loans prior to requesting a loan modification? Why? What happens if the loan mod does not work out to your satisfaction? (very important question.)

15. Will an attorney review the terms of your loan modification with you? Will you have to waive your anti-deficiency protections if you sign your loan modification paperwork? Will an attorney help you leverage recent changes in California law in an attempt to get a substantial reduction in the principle?

Attached to this page is our Counseling agreement loan-modification-revised-agreement-tm31

10 Responses to “My plan for Loan Modifications i.e. Attorney loan mod”

  1. Allan (with greetings from a homeowner fighting in the trenches) March 29, 2009 at 12:15 pm #

    Hey, Tim,

    Just stumbled on your site. You were one of the first people at Neil’s LivingLies site I talked to last year.

    About 70 % of my submissions there get moderated out of existence. Maybe you’re more receptive to news and updates.

    How goes your fight?

    RSVP
    Allan (currently in Miami in touch with Mario and Ny)
    BeMoved@AOL.com

    • timothymccandless March 31, 2009 at 6:17 am #

      The fight is tough. We are going against big money. With money vs the law money usually wins irrespective of the law. In California there is a bright spot in the changes our legislators made in the foreclosure law that help us slow the process and allow for modifications that make sense Civil code 2923.5 and 2923.6

      • d. kampe August 9, 2012 at 10:51 pm #

        I left you several messages to please call me, but no return phone call. I was wondering if you were very busy and could not return phone calls or you may never have received my phone calls.

  2. matt March 29, 2009 at 8:54 pm #

    This blog’s great!! Thanks :).

  3. Chris June 20, 2009 at 6:29 pm #

    Tim,
    hey great site and some great information…

    although what I need immedialely is an attorney to stop my forclosure, are you for hire?

    send me an email, I would like to speak with you!

    thanks
    Chris

  4. Chris June 20, 2009 at 6:31 pm #

    Time,
    great site, and great information…

    Although what I need immediately is an attorney to stop my forclosure.

    send me an email, would like to talk with you.

    Thanks
    Chris

  5. Denise August 16, 2009 at 10:33 pm #

    Tim
    Does anyone remember a link on Neils site that was under rapid reading, it was 3/13/09and it was a report of C/W annual report for 2007. would like to know what was of interest? also Tim are you taking new clients, a strong case. But is being hindered by what I thought was attorney’s that got it, I thought they were from Neils site I am not sure of them? first when I mention the words “gets it” there is not the response it should plus there is a lot of trying to force a modification and there was never talk about modifying any thing, let alone on a loan that was(stolen) sold back to C/W and before this goes to far I need to have lawyers working with me not against. I have done a lot of reading researching and having me modify a loan without any thing written out and would end my complaint against them? this is whats called settling out of court?l,as i was told I really need to get this case out of there hands! please let me know as soon as possible we are not being cc any documents and I need to know that we are back in state court. email or call any time 760-881-0070 thanks so much I feel safe just on this site.

  6. Liz in Cal October 13, 2009 at 10:13 am #

    Chris I need advice on how to move forward with our modification that was assisted by an attorney, not sure if she was really working on our best interest; looks as if the mod will make us worse off in the end. Please contact me I would love to talk to you.

  7. Abby in CA August 18, 2011 at 11:40 am #

    CONSUMER ALERT ISSUED AUG 18 2011 BY CALIFORNIA ATTORNEY GENERAL

  8. Abby in CA August 18, 2011 at 11:41 am #

    AUG 18 2011- CA STATE ATTORNEY GENERAL IS GOING AFTER CERTAIN LAWYERS AND LAW FIRMS–SEE COMPLAINT, EXHIBITS AND TRO HERE

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