A Loan Modification is a permanent change to the terms of a mortgagor’s loan, which allows the loan to be reinstated, and results in a payment the mortgagor can better afford.
Loan Restructuring is an important part of foreclosure defense and is the preferred option for anyone seeking to keep their home. Loan Modifications typically involve a reduction in the principal balance, interest rate or an extension of the term of the loan. In some cases it may involve a different type of loan or any combination of the three. A lender may be open to modifying a loan because the cost of doing so is less than the cost of default or foreclosure.
Modification Process
Here are some things to consider if a foreclosure suit has been filed, and you are interested in applying for a loan modification.
A foreclosure is a lawsuit that the bank files against you to take back your property when the terms of the mortgage are not being met.
Often the banks look at the situation and conclude, there is a possibility that they will have to resell your home for less money than you owe them. The maintenance and liability costs while waiting for it to be sold can also be very costly, adding to the overall loss.
Often times, the bank will negotiate with the current homeowners to come to an agreement that will work for both parties, positioning the homeowner with affordable payment terms while the bank gets back on track to the make their profit. This is known as a loan modification and anyone who is in foreclosure qualifies to apply.
Loan modifications come in many different shapes and sizes including a reduction on the interest rate, payment, term or even the overall balance.
Every homeowners has the right to defend the foreclosure, and many times there are several options to choose from.
It is natural to feel overwhelmed and uncertain on what to do moving forward. It is critical to meet with an experienced foreclosure defense attorney who understands the foreclosure process and can help you sort out what options are available for your particular situation.
The attorneys at Korte & Wortman, P.A. Have that experience. With seven attorneys and six paralegals that work together on the best strategy for your case, rather than one attorney making a quick decision to be able to balance numerous files in their workday. Combined, the attorneys at Korte & Wortman, P.A. Have over 50 years of experience. Time is of the essence. Set up a free consult ion to discuss the details of your case.
Modification Retainer
Step 1 – Consultation and Prequalification
Most loan modification cases take about 60 to 90 days to complete. We are here to help you every step of the way. We look forward to working with you.
Step 2 – Gathering of financial documents
What is Needed:
* Proof of income. This can include W2’s, pay stubs, rental agreements or bank statements.
* Hardship letter (explain what happened that made you fall behind)
* Most recent mortgage statement
* 4 months of bank statements
* 2009 W2’s
* Tax returns for 2008 & 2009
* Monthly Expense Sheet
What Happens Next – We review and analyze your information in order to compile a negotiation package to submit to your lender. We will fully analyze your case before we begin negotiations.
NOTE: This process my take up to 45 days to complete depending on how fast you provide us with the necessary information.
Step 3 – Negotiations
Our Team will submit your financial package to your lenders and begin negotiations. We will continue negotiations until an acceptable agreement has been received and approved by you the homeowner.
Step 4 – Approval
When your request is approved, final Loan Modification documentation will be sent to you for your approval. We ask that you have at least 2 months of payments saved before your modification is approved to begin on your new payment schedule.
Total time frame
Most cases take about 60 to 90 days to complete. We are here to help you every step of the way. We look forward to working with you.
Loan Modification
Homeowner Foreclosure Defense and Loan Modification Service
Don’t have time to deal with your lender or are you going nowhere fast?
The reality is, most lenders are completely unresponsive to many of the homeowners who reach out to them for help with their mortgage.
We know Foreclosure Law
When you are represented by an attorney, you have an important ally in your corner during the foreclosure loan modification process.
We use powerful laws like the Truth in Lending Act (TILA) and the Real Estate and Settlement Procedures Act (RESPA) to bring lenders to negotiations. These laws MUST be followed and failure to do so can result in significant damages to the lender. Following these procedures lenders are more likely to agree to working out your loan on more affordable terms for YOU in order to avoid costly litigation.
Many times the borrower is charged a lot of unexplainable lender fees and charges. At The Law Offices of Korte & Associates we demand that these fees be fully documented to insure that our clients are not being over charged by their lender or servicer.
We do not tolerate abuse and command respect with our thorough knowledge of the law. We are consumer and homeowner advocates that will protect you and your home.
We take loan modification seriously. Be careful of loss mitigation companies advertising to save homeowners from foreclosure. Some of these companies are not even attorneys and they are offering to represent a client in a highly sensitive manner.
The Law Offices of Korte & Associates have a strict code of ethics and professional responsibility to adhere to and this is a serious matter that needs action by a licensed and competent attorney.
We use the law to place lenders and servicers on the defense and make them fix your loan.
The faster we start the loan modification process and the more time we have to work, the greater the likelihood of success. If you are unsure of the foreclosure laws in your State contact a local real estate professional, or our office.
The Law Offices of Korte & Associates, make no guarantee of a successful outcome when attempting a mortgage loan modification with your lender or servicer. Our office accepts clients who can afford their home and need a professional advocate in their corner to present their case to their lender or servicer. However we make no guarantee on the outcome of your case.
Mortgage FAQ’s
What Should I do when I get behind on my Mortgage?
Don’t ignore the phone calls and letters from your lender. Take this matter very seriously and work to resolve the problem as quickly as possible. Keep track of all correspondence you receive for later reference. Stay in your home. You may not qualify for foreclosure help if the house is vacant. Your home, if proved vacant, can be seized.
What Are My Options?
Reinstatement
Pay the Mortgage Company all of the back payments to bring your mortgage current. This option is rarely attainable. The Mortgage Company will add late fees and Attorney fees on top of your back payments making this amount much more than people are able to come up with.
Loan Modification
We can negotiate with your Mortgage Company to bring your loan back in good standing. There are many options available to us to get a modification approved. Some examples are as follows:
Forbearance – We will be able to arrange a payment plan based on your financial situation. This is mostly used in the instance of a tragedy or temporary loss of employment.
Mortgage Modification – We may be able to adjust the terms of the loan to meet your financial situation.
These Options may be limited depending on:
- Type of loan that you have
- Your lender
- The mortgage insurance company that insures your loan (if you carry mortgage insurance on your loan).
Refinance
We have established partnerships with very reputable lenders who can give loans on mortgages that are in foreclosure if there is enough equity available.
Sell Your Home
You may simply sell your home before the Foreclosure Sale Date. We may be able to negotiate a Short Sale on your behalf with your Mortgage Company. In this instance the Mortgage Company may take less than what you owe on the loan to avoid a lengthy and costly foreclosure process.
Deed-in-lieu of Foreclosure
We can arrange for you to simply give the home back to the Mortgage Company and walk away with a clean slate
Bankruptcy
This is a last resort. This will only save your home temporarily. If you miss one payment during this process the lender will put you right back into foreclosure.
Foreclosure
You may elect to allow the home to be entered into mortgage foreclosure. This is the most damaging to you. The Mortgage Company will take your home and all of your equity. If there is no equity they may come after you to pay the shortage or “deficiency”. This is also the most damaging to your credit and your ability to acquire another home loan.
How do you get a Deed-in-Lieu of Foreclosure?
In Deed-in-Lieu of Foreclosure, we can negotiate with your lender to voluntarily give your property back to your Mortgage Company and your debt or deficiency is often forgiven. This won’t save your home, but it will help you with your chances of getting another mortgage loan in the future and it will help you avoid the lengthy legal process of foreclosure. Although it is a negative strike on your credit rating, it is less harmful than a mortgage foreclosure.
What does a Foreclosure Forbearance mean?
In Forbearance, you are allowed to delay or reduce payments for a short period, with the understanding that another option will be used at the close of that time to bring your account to a current status. Your lender, if in agreement, will then temporarily cease legal actions. Lenders may agree to combine your Forbearance with Reinstatement or a Repayment Plan if you know you can provide the needed funds to bring your account current by a specific date. This plan works for people who have just experienced a sudden living expense increase or income loss. We will negotiate with your lender to explain this hardship and hopefully get you the time you need to readjust your spending and recover financially.
What are the right foreclosure solutions for me?
Our consultants look at every case individually based on your financial situation, past and present. We want to stop your foreclosure, keep you in your home and establish a financial plan that will keep your credit in best standing and also at a level that is comfortable for you. We will help you determine the best solution that is alignment with your financial situation.
Why use us?
We will analyze your situation and offer proven foreclosure help to save your home. We will negotiate on your behalf with your mortgage company to stop foreclosure and get your loan back in good standing. Most importantly, we can help save your home!
What is the charge for your firm’s services?
First, consultation with one of our professional foreclosure advisers is always free. We will evaluate your foreclosure situation and inform you of the costs for any additional services your particular situation requires.
If you require our full services, our fees begin at $495.00 and can go up from there depending on your situation and your needs. Our services are very inexpensive in relation to the value of your home. The one thing you need to decide is how much is your home worth to you? What price would you pay to save your home?
Do you take payments?
Yes! We accept payments on all of our fees. We also accept credit cards to make the payment for our services affordable within your family budget.
Contact the Law Office of Korte & Associates to discuss foreclosure solutions available to you.
We will negotiate on your behalf with the Mortgage Company to get your loan back in good standing. We understand foreclosure law and the legal process help you keep your home out of foreclosure.
