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Using Your LOANHAMMER

FOR LOAN MODIFICATION

NOW IT’S TIME TO LEGALLY POUND YOUR LENDER!

The most effective way to get your lender to listen to you is by having your Attorney present a demand letter detailing a legal case against them, along with the proof that they committed legal violations and errors in disclosure, underwriting, approving, and funding your loan!

What Is A Loan Modification, And Can I Get One?

Loan Modification simply means that the mortgage or mortgages that you currently have on your home CAN BE RENEGOTIATED under certain circumstances:

Typical historical reasons may be:

  • The inability, or foreseeable inability, by the borrower to pay due to a temporary financial setback, a health crisis, or a death in the family.

Keep in mind however; these have not been actual loan modifications. These workouts have typically been what are called “forbearances”. Forbearances typically simply add late fees and payments to the current loan balance (called Capitalizing the amount due), or allow the borrower to make up the amount past due by making an additional monthly payment amount over and above the regular monthly payment until the deficit amount owed has been paid.

In today’s shaky economic climate, a “forbearance” is probably the last thing you need. The banks like them, in that they really don’t have to modify the terms of the mortgage, they’re just putting you on a new temporary payment plan. There is evidence today that the “forbearances” and “modifications” being done by the banks are really done for the banks’ benefit, not the struggling homeowners’ benefit as they are unsustainable. Recent studies of these so-called modifications shoe that 25% or more of these borrowers redefault after three months, and perhaps 60% redefault after six months. This is being touted by the banks as empirical evidence that “loan modifications don’t work”. (Can we say “Liars lie” here without getting sued?)

In 2008, and more recently in 2009, legislation was passed that attempts to help borrowers actually obtain real and significant modifications to their mortgages. We have all heard about the Hope For Homeowners plan, the IndyMac Bank “modification in a box” plan put forth by the FDIC, and probably many others.

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