Do-it-yourself Loan Modification or Hire an Attorney?
“The average American trying to get through [sic: to their bank] to negotiate a loan modification will not be able to get it done!” - U.S. Congresswoman Maxine Waters (January 21, 2009)
You’ve probably heard the expression that an individual who represents himself in court has a fool for a lawyer. This often applies to loan modification, too. While you may be able to achieve some level of success by dealing directly with a reputable and cooperative lender, you can save time, effort, and anguish by hiring a qualified attorney or loan modification professional.
Having legal representation is even more important when the lender is inaccessible or unwilling to work out a solution, as nine-term U.S. Congresswoman Maxine Waters recently learned when she attempted to contact lenders on her own (click on the video below to see how difficult it can be):
Most people wouldn’t hesitate to call an industry professional when they need to borrow money, purchase a house, create a living will, or even fix a leaky roof. When considering a loan modification, however, some people assume they can negotiate a deal with their lender on their own.
While working directly with your lender’s loss mitigation or loan modification department is certainly an option, it’s not always the wisest choice, as Congresswoman Waters found out. You may be better off paying an attorney to negotiate on your behalf, just as you would hire an attorney to represent your best interests in court.
Remember, banks and lenders tend to protect their own interests (and who can blame them, really). They have a right earn a profit just like every other business, and they have a realistic expectation that the people who borrowed from them will honor the terms of their agreement. As a result, some banks and lenders reject loan modification applications because they feel specific borrowers can afford to make their payments if they would just budget more carefully and make what are sometimes unpleasant or difficult to accept sacrifices. Or, in other cases, they negotiate a loan modification that makes your budget so tight that even one missed paycheck or one large automobile repair bill can put you right back into default.
Hiring a qualified attorney or loan modification professional ensures you have someone looking out for your best interests. Now, you can find dozens of loan modification companies on the Internet, but one of the best ways to find a reputable professional is through referrals. If you have a friend, relative, or associate who’s been in a similar predicament and used a loan modification company to save their home, ask for the company’s name and contact information and how satisfied they were with the services they received.
Also, consider asking real estate professionals in your area for recommendations, including real estate agents, attorneys, accountants, and title company representatives. These sources can often lead you to the best in the business and help you avoid not only worst but the hassles of trying to do-it-yourself, as evidenced by Congresswoman Waters frustrating experience in attempting to deal directly with the lenders herself.
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Ralph R. Roberts, GRI, CRS |
ralph, this video clip says it all. it is absolutely heartbreaking to hear these stories and then witness the appalling manner in which the lenders manage the inquiries. good for congresswoman waters! and good for you ralph. your mission to educate struggling homeowners on successful loan modification is to be applauded.
Why can’t America modify all property owners home mortgages to a reduced rate of 3.5%, whether or not they are in financial trouble? It seems to me this would be a reasonable way of keeping the housing market alive, stop the rate of foreclosures, and give the American People something to believe in again. Now talk about a stimulus package that would work! Seems that the banks are so greedy right now, and wouldn’t making 3.5% on your monies straighten out this mess that we’re in. It’s like what you say, What’s good for homeowners is good for America!
I laughed and cried when I saw this! No, it’s not funny! I have been going through this same thing since August 07 trying to get help from CitiBank. When I call, after I dial in all the information on my account through automation, then I get the wrong person in the wrong dept. who gives me another number (which also requires me to dial in all my info in automation) then I get someone who gives me an extension to someone else- but none of the extensions work leading me to believe that these people don’t really exist.
I think if the Government could establish some kind of “help the people” requirement upon the banks, then the stimulus might be worth it.
I think that we are all in the same boat, as a homeowner I believe we’ve been struck with the wost storm ever and Government needs to step in and help! I think we should either make the agents whom created these outrageous mortgages now pay for our attorney fees and bank fees so that we can get federal help in solving this issue! We are too busy with two or three jobs to make ends meet, we don’t have time and are not familiar with all the laws. Or, the banks need to adjust the loan amount to the current value of our homes with minimal rates to lower monthly payments.
One good example is our house owing $580,000 with a value of $400,000 and rate of 6.9% Lower it to 3% at 400K and keep me from killing myself!
James Says:
“I think we should either make the agents whom created these outrageous mortgages now pay for our attorney fees and bank fees so that we can get federal help in solving this issue!”
James:
It wan’t the agents who created these programs, it WAS the banks and more specifically Wall Street. Merrill Lynch, Lehman Bros. and Bear Streans.
If you noticed, the government “bailed” them out after it became public knowledge that they were responsible. The loan agent - as you refer to them - was the messenger.
Now, these same companies, who own the servicing companies doing the loan modifications are still preying on the public. Make no mistake about this, they are making huge profits still.
The banks need to become good corporate citizens. They flourished and made billions during the boom, got even more billions in bailout money for their failures and are still keeping all the money to themselves.
We need to wait and see what the simulus package will be after it is finished. Hopefully, help is on its way. Until then keep trying modifications and fight back. It is tough and time consuming but needs to be done.
This is skuzzy, this company is here to make money, money people who are about to lose a home do not have. As licence Texas Mortgage Banker, it makes me sick to see companies like this, who ” prey ” upon people who are struggling. Skuzzy, and just plain predatory.
Your rates are tooooooooooooooooo high for what you say you might or might not due. Come down to $ 2200.00 and we can make it work, however your contract must meet my specs!!!!!!!!!!!!!!!!!!!!!!!!!
I have felt the frustration myself. I had to change states to keep
employment because my job was being eliminated. My property was
in Arizona so in six months time the value of my house dropped 50%
due to increased rates of foreclosure. Now I can’t purchase a house
until I sell my house. Well, loan modification won’t help me at all!
I know there are many other Americans in my boat. I am in a specialty
field and I always have to move to keep employment. This statement
pulls me into the larger picture. Why should principal shareholders,
usually the Board of Directors, and the soulless paper shuffling
CEOs make a profit every quarter when the people who support their
lavish lifestyles get fired so they can make more in week then the rest of us do in a lifetime. They are the appropriate skapegoats
for all this mess!
I called my lender to SIMPLY ASK what myself or my aging father would need to earn annually in order to re-fi my home and they told me they would need to look at my credit score (it’s 768 low and 797 high, i’ve NEVER missed a payment in my entire LIFE) the person (who, when asked, told me they were in not in the usa! probably off shore) said this look at my credit score would not be reported as an inquiry…..LIARS!…or too stupid to know or CARE…because within 24 hours my online credit watch company reported an inquiry made to ALL THREE credit bureaus and now i expect my credit score to drop soon…probably about 3 points, maybe more…seems small but it isn’t! this could raise our heloc payment!!!!!!!!!!!!!!! especially if i even bother(ed) to ever call another bank again…..plus the off shore, unqualified (script reading???) person told me i couldn’t qualify even if my dad helped me by co-signing…wrong!…..we do..i did the math and my dad alone could pay 25% of his income to make the payment…..they cannot even do math with a calculator….Also, ever notice how they sure answer those phones when you call to OBTAIN A NEW LOAN! BTW, i now know about 12 robots since i’ve had to make so many calls and i’ve learned how they “think”???? in order to get through and bank of americas is the SLICKEST OF THEM ALL….disgraceful….we closed that bank account, c ya bofa wouldn’t wanna be ya bofa!…didn’t Brasil create a national banking system and fix their issues? i say ram the government down their throats instead of lobster, $200 btls of wine and expensive cigars!….BTW, without the FDA we’d be eating poison today!…not all government is bad………..i don’t trust anyone anymore and i will NEVER buy another house again for the rest of my life!…government isn’t perfect and they make mistakes but perhaps not as greedy as these banks and the overindulging wasteful snobs!
also, are there actually places where people are able to get 2 or 3 jobs left in the usa? not where we are! our local paper has 12 job listings and over half require specialized training…..we now have to turn our home into a boarding house and plan to pay our house off as fast as possible and bury our money in the ground.
SHAME ON YOU ALL! listen to steve forbes…he says if every bank accepts 4% they’d all STILL MAKE PROFITS just not OBSCENE PROFITS….awwww…the poor lobster gobbling GREEDY MONSTERS……when they start to march on washington i’ll wheel my father there in his wheelchair and wear my arms out waving our signs. i am afraid to leave my father alone with boarders in my home, so i’ll be quitting my job and guarding him 24/7….my friend’s sister went to the street due to her rental foreclosing and some street urchin stuck a needle into her and gave her aids and she died, because she wore decent clothing and the urchin was jealous…..ugh….greed abounds everywhere.
all of these problems above are one tenth of what i know and see with my own eyes…. and no one cares…except congresswoman waters..go after them waters!!!!
i’ve decided i’ll rent out the hallways, bedrooms and every space we can create to displaced people in order to make up for my job loss (let it go to someone who can use it, someone with kids) and to pay off the roof over our head as fast as we can. i will also move our beds into our one car garage and slam in a potbelly stove for heat and go into “depression mode” green jobs maybe be a waste of government funds since people are already standing around trash can fires at night in my area! we have lost 99% of our trust in the system as it is now and we’ll pray for those people who have kids to support!!!!
Thank God for this congress woman. God Bless her! I did not beleive anyone in government was caring, and I am glad I was wrong! This woman deserves a Nobel Peace Price or something huge for her efforts!
I was in foreclosure. With Jeremy and Emortgage recovery all that is in the past. $2500 and 30 days was all it took. if you want you can call him at 800-793-9633 ext 184. tell him i sent you, He’s an angel.