An example of my daily inquiries, You asked if I know an attorney assisted loan modification firm in Southern Oregon.  I do not know anyone in your area active in loan modifications.  Call me at 971-222-3734.  I am in Portland.  We can help you.  We are always available to help people in Oregon, Washington and nationwide.

We use a real estate attorney to hold the client’s payment in escrow, and another to assist us in bankruptcy cases.  Unless there is a need for legal action, loan mods do not require attorneys.  Most attorneys involved in loan modifications subcontract the work to processors. 

We look forward to the opportunity to help you with your home loan modification, we specialize and offer loan modification help to customers throughout the NW and entire U.S.

Thanks,
Oscar

Loan Modifications that will NOT work

Loan modifications are an extremely new phenomenon. As I am writing this today, June 22, 2009, who would have as early as one and half years ago that such a thing would ever exist. I, my self was skeptical about mods until late 2008. Now I am in the thick of it. This is a fascinating field.

Since I started NW Loss Mitigation, LLC, the main question has been, do I qualify or do I not qualify for a loan mod. Because this type of transaction is so new, the banks themselves have been learning the business, and there is plenty of misleading info, expectations are all over. In this post I will just focus on the loan modifications that will not work.

Modifications That Will Not Work: We can’t help if any of the following is happening.

• A loan modification or rate freeze has taken place in the past twelve months.
• Customer is in a current loan modification with another company.
• Customer is presently doing his own loan modification
• The customer already has a low fixed rate, is not behind on the mortgage and there is no hardship.
• Everything is fine except that the property has lost value.
• The loan is an ARM that will not adjust within the next six months.
• The loan is an Option ARM that is not late or has not adjusted.
• A loan with a private hard money lender when there is equity in the property.
• A customer is claiming a hardship, but is showing a lot of assets.
• Property has lots of equity. The bank is better off foreclosing.
• Insufficient income. Customer unable to support the loan even with a loan mod
• Too much unsecured debt. This includes credit cards, medical and other debt.
• Too much debt. Customer has car, boat, and other similar financial commitments.
• Un-employment. Banks don’t consider un-employment income stable.
• No proof of income. Customer has insufficient income documentation such as pay stubs, bank statements, etc.
• Customer missed filing taxes. Banks require to presenting tax returns. Sometimes this can be overcome, but don’t count on it.

   

  If you need help contact us at 971-222-3734 or info@nwlossmit.com.

Better chance / Possible Loan Modifications

In the previous post I focused on what loan mods are hard or impossible to do. Here is a list circumstances with a higher chance of being approved for loan modification. These are middle of the road situations for which the lender may consider modifying the loan.

Possible Loan Modifications

• The lender has offered a rate freeze, the customer did not request the rate freeze, the loan is behind, and there is a hardship.
• The customer has a low rate mortgage and is behind on the mortgage payment due to unemployment, and can qualify without unemployment income. When this is possible, it may be possible to get an exception.
• A low fixed adjustable that is an interest only loan may not be beneficial to modify, as a fixed rate will probably be higher. After an adjustment and hardship, it may be possible to get a rate freeze for five years and a low interest rate, depending on the hardship.
• Fixed rate loans with an interest rate of 7.5% or lower that is not late or has not adjusted can be difficult to do.
• Non-owner occupied properties inhabited by close, dependent relatives need a lot of documentation, but are possible depending on the lender. They take a lot more work
• Lenders are tough on non-owner occupied properties.
• Option Arms with high interest rates.
• Owner not behind in payment. Banks love getting paid and like to keep things like that. It is tough for a homeowner to stop paying. Very soon not paying can become an irreversible situation.
• Second home that is not a rental.

High Chance Loan Modification Situations

Not all loan modifications are possible. However, there are certain instances for which, if well executed, there is a high chance of the bank approving a very favorable loan modification.

Here is the list of situations with the highest chance of the loan being modified by lenders. If the client is in any of these situations, most likely we can help very well. Banks tend to favor these situations. There is a good track record of success in succeeding with this loan modification situations. Any homeowner, with steady income, and any of these situations should consider a loan modification.

• Any delinquent loan, unless it has been previously modified within the past twelve months.
• Any adjustable rate mortgage loan (ARM) that has adjusted, or will be adjusting, within the six months. This can be submitted before the loan adjusts, and does not necessarily need to be in default.
• High interest rate ARMs with certain lenders within six months of adjusting, or after adjusting.
• Fixed, high interest rate loan with a subprime lender.
• Most adjustable rate loan situations are worthwhile exploring.
• Situations with good hardship letters.
• Situations with steady income, not much additional debt, but trouble keeping up with the mortgage.