Hello Rafat,

Yes, you CAN, and should, start with your present lender. However, most people find it beneficial to have an intermediary standing in, as their advocate - someone who might better negotiate with the lender. Here are your choices for such an advocate.

Most of the attorney groups who are currently advertising to help, will likely charge you a pretty hefty fee, with a sizable chunk up front, ( Probably at least $1500 – and probably more.) and then .5% to 1% of the loan amounts, or more! That can easily amount to thousands of your dollars. Their justification is that they are probably experienced, know the ropes ( Although a paralegal will likely do most of the work.) and that successful completion of the process will save you considerably more than they have charged.

Granted, there IS a hefty load of paperwork, and there IS a lot of follow through, but frankly there are less expensive choices. The place to start is with your current lender(s). Ask for their loan modification package. While waiting for that to arrive spend some time gathering your financial information together - tax returns, pay stubs, all your bills & credit cards, etc..

Once the package arrives, check it out to figure just how complicated it is, and then make a decision whether to hunker down to do it yourself, or to have someone assist you. That can be the aforementioned attorney group, a FREE HUD counselor ( see HUD link below.) or locally, in Santa Ana, the Fair Housing Council whose website is http://www.fairhousingoc.org and with whom I am a volunteer. Another possibility is your local Lender or Realtor, if they have experience.

The last two choices, if they're willing – and able - to do the work, would probably do the work for far less than $1000., payable when the process is complete. Lenders and Realtors are experienced with handling "reams" of paperwork, adept at negotiating and working with the lender, and experienced in following through on all the elements of a transaction, and they're accustomed to not being paid until the process is complete. They would also be able to provide the lender with comps to support your request to modify.
( And yes, I would be happy to consult briefly at no cost, and provide comps if needed.)

A word of warning: Most Realtors or Lenders, cannot charge a fee IN ADVANCE for loan modification assistance. There are, however, unlicensed “scam artists” offering to assist with loan modifications who DO ask for a fee in advance – sometimes even full payment. Do NOT pay someone ( other than possibly a local attorney group, with a contract in writing.) any kind of fees in advance, for loan modification assistance.

So, there are choices. Do some homework on the matter and feel good that there may finally be some better alternatives than suffering with too high payments, a short sale, or a foreclosure. Good luck in finding solutions!

Hi Rafat,

You should be able to handle this on your on with your lender. Some banks are making this possible by having staff in their branch so you could just walking into the bank and get assistance. Also if you pay someone to do this another useful source is the DRE website(California Department of Real Estate) they have a list as well.

Good luck,

Homa
Prudential California Realty
Mission Viejo

Hi Rafat, the following link details the guidelines for a loan modification under the "Home Affordable Loan Modification" program: http://docs.Steven-Anthony.com/LoanModGuidelines.pdf

See Page 5, regarding “Imminent Default” as a qualifying factor, for sure - but read the whole document to see where other keys issues may be for your specific situation.

Best, Steve

Dear Rafat,

The situation you are in is not an uncommon one these days. The answer to your question regarding whether you will be required to pay unpaid mortgage arrears depends greatly on the details of your situation. The most common modifications are lowering the interest rate, reducing the principal balance, 'fixing' adjustable interest rates, forgiveness of payment defaults & Fees, or any combination of these. A Loan Modification can help home owners who can?t refinance or afford their current payments. Getting mortgage help for troubled home loans can help stop the foreclosure process.

If you would like one-on-one assistance or have more questions, please feel free to contact me and I will do my best to serve you.

Thank you,

Mitra Karimi
Crestico, Inc.
http://www.crestico.com

Hi Rafat,

I'm sorry you are dealing with this. I would recommend that you contact your lender to start with. See what options they have for you. The new Stimulus deals include options for loan mods and refis without having to go late on your mortgage. As soon as you are 30 days past due, your credit will be impacted.

As far as what you will be asked to pay? Every situation is different. Some loan mods have an upfront payment, some don't. It's very individual and there is no way to predict.

Last point....if you do decide to pay someone to help you....make sure you hire an attorney and not a loan mod company. While there is no way to predict individual outcomes, an attorney is answerable to the California State Bar and will most likely not turn into a scam. Be sure and check them out first...and contact the Bar website to make sure there are no complaints against them.

Good luck with this...if there is anything I can do to help you...I'm happy to!

Karen