Mortage Loan Modification and Foreclosure Defense

Normal 0 false false false EN-US X-NONE X-NONE /* Style Definitions */ table.MsoNormalTable {mso-style-name:"Table Normal"; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-priority:99; mso-style-qformat:yes; mso-style-parent:""; mso-padding-alt:0in 5.4pt 0in 5.4pt; mso-para-margin-top:0in; mso-para-margin-right:0in; mso-para-margin-bottom:10.0pt; mso-para-margin-left:0in; line-height:115%; mso-pagination:widow-orphan; font-size:11.0pt; font-family:"Calibri","sans-serif"; mso-ascii-font-family:Calibri; mso-ascii-theme-font:minor-latin; mso-fareast-font-family:"Times New Roman"; mso-fareast-theme-font:minor-fareast; mso-hansi-font-family:Calibri; mso-hansi-theme-font:minor-latin;} MORTGAGELOAN MODIFICATION – FightingForeclosure and Making Homes Affordable for Homeowners MichaelD. Stewart, Esq.             AMortgage Loan Modification is not a re-finance.   It is a modification to your original mortgage loan.   It changes the payments you make to the bankand can make your home affordable again.   Today, given the change in our economy, homeowners throughout thecountry have had their mortgage payments escalate or have lost their jobs andare now unable to afford their mortgages.   Homeowners around the country are late on their payments to the bank andare facing foreclosure.             Ignitedby the Making Home Affordable, or “Obama plan”, banks are now encouraged toassist homeowners in modifying their mortgage loans to allow them to stay intheir homes on payment terms they are able to comply with.   The encouragement by the government has not,however, been entirely successful.   Underthe Making Home Affordable Plan, only certain homeowners qualify, and the bankshave been slow in successfully implementing this program, and others designedto assist homeowners.             Toqualify for a mortgage loan modification, there are generally a number offactors taken into account by the banks.   The bank will generally look for a documented financial hardship.   Law Offices of Michael D. Stewart assists ourclients in preparing the documentation to support a financial hardship.   Included in this is preparing and analyzing adetailed financial affidavit showing the clients assets and liabilities andoutlining how a mortgage loan modification can assist the client in makingpayments on the loan after it is modified so that the bank keeps a long-termpaying customer, and the client is able to stay in their home at an affordableprice.             The bankswill often also look to whether the client has missed any mortgage payments.   Initially, banks such as Countrywide (now Bankof America) stated a policy of refusing to work with homeowners unless theywere at least three months behind.   This“policy”, however, no longer seems to apply with the banks, and they appearmore willing to look to the totality of the clients circumstances.             Banksoften look to whether the property is the client’s primary residentialproperty, with some initially refusing to negotiate concerning investment properties.   However, even with investment properties,everything can be negotiated.             Apackage is prepared for the client detailing their hardship, including afinancial affidavit, and providing documentation requested by the bank.   Our law firm calls the bank to discuss theclients financials to see where the client can cut back on expenses to ensurethat the modification has a good chance of going through.   After we have spoken with the bank concerningthe financials, the mortgage loan modification package, together with a Powerof Attorney, is sent to the bank, which then begins to analyze thepackage.   Weekly follow-up telephonecalls with the bank are made to ensure that the bank is taking active steps onthe mortgage loan modification.             Often,while analyzing our package, the bank will require the client to also fill outthe banks own package.   We also oftenhave to apply for the mortgage loan modification online, as well as by fax andmail.             Problemswith the banks are frequent.   Banks oftenclaim, after many weeks or months of negotiation, to have not received anydocumentation or that the documents have been lost.   Some of our clients have even been told thatour law firm has never contacted the bank and that the bank has received nodocuments, which can understandably very disconcerting for the client. It is also very difficult tospeak with the same person more than once at the bank.   When the banks were initially encouraged bythe government to grant mortgage loan modifications, there was a wave of applicantsbut the banks did not have adequate personnel (whether in number or intraining) to handle this influx of applications.   Whole departments had to be created by thebanks to handle these applications.   Nowit seems that the departments are at least somewhat in place and at least someof the personnel trained in the bank policies on mortgage loan modifications.             One ofthe most frequent problems is of the bank initially and immediately denying themortgage loan modification without reason.   A typical letter from the bank will say that your mortgage loanapplication has been denied for the following reason, and then a blank space onthe paper – no reason given.   In thesesituations it is necessary to resubmit the entire package.             Finally,the bank will send a loan modification agreement, detailing the terms of theloan modification, including the new interest rate, payment, and what willhappen with past due payments.             Often,with banks that are unwilling to initially agree to a mortgage loan modification,our firm will prepare a forensic loan audit which details violations the bankmight have made at the origination of the loan.   Often federal violations can result in significant penalties to the bankif litigated.   The forensic loan audit isa good tool in certain cases to encourage the bank to act in the bestsinterests of the client (and often in the best interests of the bank as well).   Another common problem whilenegotiating a mortgage loan modification is that the client is often already sofar behind in their payments that they are facing or already in foreclosure.    In these situations, our firm works with thebank to move the sale dates of the property or will actively litigate thematter in court.   Litigation consists ofanswering the banks complaint or filing a motion to dismiss the complaint for avariety of technical reasons.   Our firmwill also request voluminous discovery from the bank as it is often unclear whoactually owns the loan since they were sold or assigned between banks, managedby third parties, or placed into pooling agreements. When in foreclosure aproblem is that bank will appear to be working with the client, but meanwhilethe lawyers for the bank will continue with the foreclosure, necessitatingfurther active litigation measures to hold off the foreclosure.             A final,and extreme measure, in certain circumstance is for the client to filebankruptcy to stave off the foreclosure.   LawOffices of Michael D. Stewart assists clients throughout the United States innegotiating and obtaining mortgage loan modifications.   The firm also defends foreclosure throughlitigation provides bankruptcy and other real estate and litigation services. Thefirm can be reached Toll-Free at 866-438-6574 or by email ms@themiamilaw.com Copyright 2009 Miami Law, LLC

Was this helpful? 0 0 Comments

You're reading Mortage Loan Modification and Foreclosure Defense.