Has your Lender turned you down for RELIEF, or
has offered only a temporary, Band-Aid fix?
Perhaps you need a
Cramdown Loan Modification
As your advocate, we'll pursue interest rate reduction and reduction
to your loan's principal balance as described in the recently
unveiled HOPE for Homeowners program.
When a lender is uncooperative, sometimes we recommend the use of a Forensic Mortgage Loan Document Audit as basis for gaining leverage in lender negotiations. This Audit reveals various Federal and State violations or errors in the original loan documents. Auditing statistics show that a large number of loans have significant violations. Reasons to Conduct a Forensic Loan Doc Audit:
- Truth-in Lending violations
- RESPA Violations
- Excessive Points & Fees
- Misrepresentation
- Constructive Fraud
- Predatory Lending
The Forensic Loan Doc Audit is a significant part of a loan modification request submitted on behalf of a homeowner. The Audit reveals TILA (Truth in Lending Act), RESPA (Real Estate Settlement Procedures Act), Predatory Lending, and Real Estate/Mortgage Fraud violations. In some cases, if the homeowner is simply overcharged by only $35.00 on the final HUD-1, or if the annual percentage rate(APR) is only .125% higher than what was originally disclosed; there may be a violation of the Truth in Lending Act. This creates leverage when negotiating with the lender and more than enough incentive for the lenders to grant a beneficial loan modification.
Common Abuses:
Seven Signs of Predatory Lending
Predatory mortgage lending involves a wide array of abusive practices. Here are brief descriptions of some of the most common.
- Excessive Fees
- Abusive Prepayment Penalties
- Kickbacks to Brokers (Yield Spread Premiums)
- Loan Flipping
- Unnecessary Products
- Mandatory Arbitration
- Steering & Targeting
•Did your loan come with payments you could not then, and cannot now afford?
•Does your loan have an adjustable interest rate?
•Does your loan have a prepayment penalty?
•Did the lender or broker promise to change the loan at a later date?
Lenders will only do what is in their best, financial self-interest. Period! Lenders will only negotiate fairly with you if it serves their best financial self-interest. Due to the convoluted circumstances of mortgage securities, we are not in a position to know what is in lenders' best, financial interest. Sometimes, private derivative insurance will pay the mortgage holder more than it would receive if it modified your loan. We simply don't know.
To save your home with an affordable loan (cramdown) modification, or for permission to sell without being saddled with either a deficiency judgment, or a 10 year "soft-note" you'll need an advocate. SPOCH.
To Fight Back! you'll need some leverage
"Leverage" may be lender misconduct. "Leverage" may be your lender's unfair and deceptive practices.
Leverage" may be an inflated appraisal. Defending against foreclosure and compelling the lender to agree to favorable workout terms may require the borrower to challenge unfair lending practices used when originating the loan.
Some lenders will NOT modify a loan, but WILL agree to accept less than is due. For those scenarios, provided the loan is not yet in foreclosure, we have FHA mortgage loan programs which may be used to REPLACE the "shorted" loan. For details right away contact NJDave@spoch.org
In the past few years, a great number of loans were performed with errors, omissions, legal violations and just plain fraud. These violations are YOUR leverage to obtain a CRAMDOWN loan modification, or preforeclosure shortsale. Generally, the more violations on your loan (and the greater their severity), the better your chance of obtaining a favorable and affordable loan modification or short sale approval from the lender.
To have us begin working on your cramdown loan modification, click here.
|
