Are you trying to negotiate a loan modification but dont know what you qualify for? Â
In California we actually have statutory law that says Â
CA Civil Code 2923.6Â
2923.6. (a) The Legislature finds and declares that any duty that
mortgage servicers may have to maximize net present value under their
pooling and servicing agreements is owed to all parties in a loan
pool, or to all investors under a pooling and servicing agreement,
not to any particular party in the loan pool or investor under a
pooling and servicing agreement, and that a mortgage servicer acts in
the best interests of all parties to the loan pool or investors in
the pooling and servicing agreement if it agrees to or implements a
loan modification or workout plan for which both of the following
(1) The loan is in payment default, or payment default is
(2) Anticipated recovery under the loan modification or workout
plan exceeds the anticipated recovery through foreclosure on a net
present value basis.
(b) It is the intent of the Legislature that the mortgage servicer
offer the borrower a loan modification or workout plan if such a
modification or plan is consistent with its contractual or other
It is very important, that if your working with your servicer to modify your loan that you know
1) What your net present value is
2) The Pooling and Servicing Agreement that your loan is in.
Typically the only way to be denied is if your npv negative but even so there is the Tier 2 mod for home owners who are NPV Negative or have excessive forebearance.
If your working with a Law Firm to modify your loan the first question to ask is, will you run my npv?
If they do not, I am not and can not find out who owns your loan you may be paying for a service that will not be beneficial.
If your trying to modify your home and your either delinquent or going to be delinquent in the next 90 days you may qualify for a modification and should have your net present value report completed.
If you need help, please call me
Wendell J. Jones Law
925 699 5041
Are you trying to obtain a loan modification but keep getting the run around?
There are Â a few very important tips that can help a home owner go from denied to approved.Â
1) Â Make sure your NPV postiveÂ
Â 2) Make sure your documents are all filled in correctly. Â Meaning the rma is completely filled out Â
Â Â Â check all boxes Â do not leave any box untured!
Â 3) Sign and date Â - plus make sure it is in the right place!
Â 4) submit all pages of your MOST RECENT 2 months bank statements Â even blank onesÂ
Â 5) submit your most recent paystubs Â that cover 30 days.Â
Â 6) if the lender is asking for your 2012 taxes sign them on page 2! Â they will need the entire file if
Â Â Â you have a rentalÂ
Â 7) Call your servicer every week on the same day and time.. Â Dont wait months to call and follow up your file will be good and lost by then.Â
Â Â 8) Ask your single point of contact if your file is in review, in underwriting always make sure work has been done recently....Â
If you need assistance with a loan modification, short sale or debt settlement please call me.Â
I work for a Real Estate Attorney Â / BrokerÂ
We stay on top of the latest requirements and guidelines.Â
Volo Law GroupÂ
This is not legal advice and should not be substituted with meeting with an attonrey who specializes in your area of concern.Â
A recent permanent loan modification with Chase Home Finance
Clients home located in Pleasanton CAÂ
Original balance before modificaiton Â $1,117,900 Â
Fair market value Â $760,000
new principal interest bearing balance Â $615,000
new payment principal interest taxes and insurance Â $2738 Â
2% rate for 5 yearsÂ
I disputed Â several items with the lender:Â
Who owned the loan
what the balance wasÂ
what the accounting wasÂ
I obtained a loan modificaiton initially for $4400 approx Â and disputed it because the accounting didnt make sense, wihch is always stressfull because of cost and not knowing if this will work. Â
However after disputing consumer protection issues with the servicer I was able to save our client a significant amount of money.Â
This was not a principal forgiveness but a principal forbearance, Â the lender literally took of $500,000 from the loan balnce, set it aside and only charged client on $615,000 even thought this was not eligable for hamp.Â
I work very hard for my clients to do what makes sense for them. Â It is definately a stressful time but homeowners need to know they may be able to keep thier home if they can afford a modifid payment. Â Generally, if your loan is upside down by 115% or more you may qualify for a principal reduction...Â
All work is down through a Real Estate Law Firm, which is required by FTC.mars rulling.Â
This is not legal advice
Executive Assistant toÂ
925 699 5041
Securitization Audits Â Getting your home for free!
I just spoke to a home owner who already lost his home to foreclosure.Â
He was sold a securitization audit for $6,000!
Whom ever told him about the audit told him he may be able to get his home for free.Â
I am not sure what contentions they based that on but I have not seen a judge give a home owner their home for free.Â
I tell clients first they need to be able to afford the modified home payment.Â
However, if they were never able to afford the original payment we may have a problem all loans originalted are required to be afforded. Â
The reason for this blog is to let people know to ask questions.
When ever your meeting with any one ask:
Please show me any successful clients who have used your services.Â
If I use this audit at $6000 then still need an attorney why would I pay for this audit?
We are able to get an audit for our clients at approx $2000 depending on the type of audit and we are a law firm!
This does not include litigaiton but please, do not buy an audit from a firm just selling you an audit.Â
I work for a law firm which is why I believe I was able to finally get this done!!
I submitted our Loan Mod in March 2009, at that time we were current.
Wamu told me we could not get help unless we were delinquent. Â (Sound familiar).
We continued to pay for 5 more months.Â
Finally, after getting the run around from Wamu we new we would not be able to pay our newÂ
payment and were forced to ruin our credit after over 20 years of paying every bill on time!!!
It is now October 2012 Â it only took me Â 3 1/2 years to get our second trial payment.
In 2010 we received a trial payment of $2652 which we paid for a year.Â
Finally In Dec of 2010 we received a permanent mod at $4400 per month at that time our income was still not what is was before but getting better however this payment would have been 44% of our gross income. Â This did not make sense. Â We would have ended up with a new loan of $1,2 mil on a home that is worth about $750,000. Â Why would we pay that or any sane person... Â
Not only that but I had my loan looked at. Â Our loan was not amortized properly. Â Â
Luckily, with my knowledge of securitization and foreclosure I was able to get our nod recinded by sending in disputes, qwr's per tila and respa and any thing else I could think of.Â
I really think I scared every one at Chase.Â
Even though I work for an attorney I wanted to submit it on my own not thru the law firm to see if I was treated differently as a home owner. Â Let me tell you I most definately was treated differently. Â I had reps lie to me, or lets just give them the benefit of the doubt, Â they didnt know what they were talking about and gave me their personal thoughts which were WRONG.
I was told by one rep the lender could foreclose at any time, this is not true, they have to go thru the process of notification and I am allowed to dispute a nod which you know I did!!!
Any way, Â our permanent loan mod which we did nt accept but were given two of them. Â I even went to visit a law firm in Walnut Creek. The attorney and his rep looked at our income and told us we would never get a mod because our loan bal was too high. Â I feel sorry for any person visiting this attorney because he doesnt know what he is talking about. Â LIterally about two months after that interview we received our first permanent loan mod.Â
Our loan balance is some where around $900,000, value about $732,000 our income is still improving but not any where like it used to be Â :(, Â Â New trial payment Â $ 2752 which is now 25% of our gross income!!!! Â I am glad I waited!
I have been blogging and posting on Zillow but I always get a bunch of bull from other loan officers and realtors. Â why? Â Because they want to short sale your home. Â When the tier 2 loan mod Â came out I posted that and the info about Â as well as the fact the the new loan payment could be as low as 25% of your gross income Â (ours is!!). Â
I persoannaly have spent thuosands on educaiton and it has been worth it. Â Instead of paying an attorney I obtained educaiton to help us and all of our clients!!!
If you owe more than your home is worth and your mortgage payment is above 31% of your gross income and your facing a financial hardship.. Â Keep on trying!
Executive Legal Assistant
Before you start the long and stressful process of applying for a Loan Modification you need to know 2 very important things:
1) What is the current market value of your home?
2) What is your Net Present Value?
By knowing in advance if your Net Present Value Positive you can start the process with more confidence that you should obtain a modification.Â
First things to do:
(This is not legal advice) Â I suggest you retain a Law Firm in the same state as either you or your home who can tell you the will run your Net Present Value Report initially for free, as well as what they will do if they feel you qualify for a loan modification but are denied.Â
1) Find out the principal balance of your first loan.Â
2) Send a QWr to your servicer and ask Â 1) who owns my loan? Â 2) Who has authority to foreclose Â 3) Ask for a copy of your endorsed promissory note with penalty of perjury.Â
Asking your lender for a copy of the note is not enough. Â The note is typically required to be endorsed Â "pay to the order of" Â on the back of the note. Â
3) Ask for the life of loan payment history. Â This is important to know, typically the servicer starts to add fees to your loan once you become delinquent. Â You can ask for proof that the actual fee was incurred and paid on your behalf.Â
Typically, if you have equity the lender is less likely to modify the loan because they would get paid off if you sell.Â
If your first loan is approximately 37% of your gross income of all persons on the note Â andÂ
Â 1) the loan was originated on or before 1/1/09
Â Â 2) the loan balance is at or below $729,950
You meet the initial criteria for HAMP. Â
Because of the Supplamental Directive Tier 2 Hamp Mod you can now be considered for a modificaiton even on a rental property, Â
We stopped a foreclosure sale by sending in a dispute and escallating the file.Â
We disputed the NPV Report the servicer generated because it was wrong.Â
We crafted a new NPV report based on correct inputs and the home owner was modiified.Â
Before she found us she hired a local attorney who advertises alot, but this attorney did not run her NPV nor did they escallate her file.Â
She ended up with a Tier 2 modification with a new payment at 25% of her gross income.Â
With the Principal Reduction Alternative mod Â if your Â first loan is upside down by 115% or more and your first mortgage payment is above 31% of your gross income you may qualify for a principal reduction. Â
The owner of your loan needs to approve the reduction.Â
You can actually obtain a principal reduction to 105% of the current market value and if that alone does not get you to a Â fully amortized payment of 31% of your gross income the servicer can then offer a forbearance. Â (Basically a silent second loan that you pay off when Â you sell the home but it is not incurring interest).Â
Above client had a loan balance of approximatelyÂ
but her home was worth approximatelyÂ
Her income was approximately $8000 per month
She ended up with a fully amortized payment of approx Â $2004.00 Â Â Including taxes and insurance.Â
New loan balanceÂ
payments 40 years 2% rate Â $1430Â
taxes Â Â Â approx Â Â Â Â Â Â Â Â Â $468.00
home owners insurance Â Â Â Â Â $106.00Â
new payment Â Â Â Â Â Â Â Â Â Â Â Â $ 2,006.00
The lender is Bank of America who is also participating in the Department of Justice Settlement.Â
Why you need the help of a local, knowledgable attorney who specializes in loan modificaitons, foreclosures and specifically the HAMP and in house programs.Â
The servicer is required to help homeowners who are NPV positive per California Civil Code 2923.6 as long as it is not illegal within the pooling and servicing agreement.Â
When the servicer is dealing with a homeowner, typically the homeowner is not aware of the guidelines and rules of escalling a wrongfull denial or potential fdcpa, fcra, fcba, udap violation.Â
When the attorney sends in a dispute generally the file is responded to.Â
While some of our cases are easy and we obtain a modificaiton within 3 or 4 months, some cases have to be resubmitted, disputed, and escallated to management for approval.Â
I do a Net Present Value report on all clients to know where they stand, what income they will need and what thier potential payment will be.Â
For a free NPV report and current market value report contact me today at :
1 925 699 5041
Executive Legal AssistantÂ
I obtained two excellent loan modifications this week:
1) Bank of America Â homeowner was previously denied. Â We submitted a dispute, escallated the file Â and submitted our own Net Present Value showing our client was positive.Â
Her income was approximately $8,000 per month, Â she initially had a negative amortizaiton loan
She got the new Tier 2 Loan mod at Â 25% of her gross income.
Her original loan balance was approximately $850,000 however her actual loan value was about $450,000.
She obtained a principal reduciton, and now has an affordable mortgage.Â
My second approval this week was with Nationstar.Â
This client did receive a reduction in his payment of approx Â $1,375.00 per month. Â
His loan balance and value were considerably closer. Â His value was about 1 million.
we got his interest rate reduced to 2.275 Â (approximately)Â
We work very hard for our clients.Â
We will dispute a wrongful denial, run the net present value, comparable and send a qwr:
To date we have obtained modifications for 9 out of 10 of our clients.Â
If your facing a financial hardship and want to keep your home, please contact us (or a local attorney who specializes in Loan Modificaitons)Â
Bank of America is currently part of the National Settlement:
The Tier 2 program can allow your payment to be as low as 25% of your gross income depending on the value of your home. Â
We do a free Net Present Value report for home owners to know what your income needs to be in order to qualify for a loan modificaiton.Â
Executive Legal AssistantÂ
Law Office of Lisa Edgar DickmanÂ
925 699 5041