A loan modification is a restructuring of a homeowner’s current loan or loans.  This can include a principal reduction, interest reduction, extension of the loan’s term, and/or forgiveness of past due amounts.  The banks will sometimes combine these elements to give the homeowner a significantly lower monthly payment.  In some instances this can save a homeowner thousands of dollars per month in payment.

The reasons for a modification are normally to avoid a potential foreclosure.  Thus the homeowner usually has not paid their mortgage payment for one or more months. However other reasons may make a dification a potential option. 

Even if the homeowner has not missed a payment a modification can be done if the borrower:

1. has a negative amortization loan
   
   
2. has an adjustable rate mortgage (ARM) that is going to reset to a higher payment, or 3. a loan with Federal law violations. 

All three reasons are very common.  All of these three reasons are very widespread.  This means that our firm can help a significant percentage of homeowners. Do NOT attempt to do a loan modification on your own.  Banks will give you the WORST deal possible if you do not present your case properly.  Bank policies limit the number of modifications a person can do.  So if you mess it up, you may have to wait to fix it.  If this has occurred, we still may be able to help you based on Federal violations that occurred routinely in the banks haste to make money.

BEWARE of brokers, “attorney based”, “attorney assisted’ and other boiler room type providers.  Remember this is a relatively new industry and there is little regulatory control. The laws are constantly changing and these entities often skirt or break laws.  In fact certain banks now have lists of entities and will give you a better deal directly if you do not work with them.  In California, the Department of Real Estate requires these companies to have an approved contract on file with them before they can charge you an upfront fee.  A law firm has a strict code of ethics and must abide by regulatory bodies and agencies.  Law firms also wield more power with the banks with the threat of litigation.  All in all it means MORE savings for you the homeowner.

The steps that our firm does that most other companies cannot or do not do are as follows:

1. We do a bank style financial analysis of our clients in our presentation to your bank to justify the viability of the modification.
   
   
2. We do a review of Federal Law violations such as the Truth In Lending Act (TILA) and the Real Estate Settlement Procedures Act (RESPA).  If we believe warranted, we will do an audit of your mortgage note to determine the severity of the violations.
   
   
3. We correspond with your bank on ATTORNEY LETTERHEAD demanding a restructure of your loan based upon the applicable legal and financial theories.
   
   
4. We negotiate directly with lender on your behalf to get the result you desire.  Other companies utilize outside companies to do this who take a cut of your fee. When the banks hear a law firm calling, they jump.