If you have any questions please give me a call directly.
If you would like assistance in this matter then you can call 213-201-6385 and I can offer more assistance as well as a free consultation to assess your case and show you how many infractions were made on your loan by your lender.
The short answer is, it depends. Mortgage Litigation may be a very effective tool against lenders for certain violations and/or breaches during the loan modification process. One example may be if the lender has failed to convert a "trial modification" to a permanent modification, although you had made timely payments. In a situation like this litigation against your lender would be a great option. Not only can you potentially obtain a permanent modification, you may be also able to receive compensatory damages (money settlement from lender).
If you have questions fee free to call our office.
On the other hand, if you combine a Forensic Loan Audit (comprehensive line-by-line analysis of your mortgage documents uncovering Federal, State, and Predatory Lending Violations) with the services of a Real Estate Attorney, then the lender with recognize your leverage in negotiations due to those uncovered violations. From 2001 - 2007 more than 2 million loans had closed that were not backed by either Fannie Mae or Freddie Mac, so roughly 80 -85% of those loans have mortgage violations.
Previously, only real estate investors were knowledgeable about Forensic Loan Audits because they used it as a tool in order to determine the risk factor of pools purchased. I hope this tidbit of information is helpful.
For about $5,000 you can hire expert who know the in's and out's of how to get your mortgage reduce to about half of its principal balance and or maybe back for overages.
To find out if this statement has truth to it I would get a mortgage audit done by someone that issues a the a legal opinion and understanding of how these loans where sold on the secondary market.
I'd also get an attorney versed in mortgage litigation but I'd get the audit first so you can have a case to bring to an attorney who will be more motivated to take you on as a client because he know he can win.
You come armed with this information and your mortgage company will definitely give you a loan modification with favorable terms. This is a secret that mortgage professionals, lawyers or any one with some legal understanding of mortgages uses to get a principal reduction loan modification. You figure they would tell the world their secret but they sit back and keep it to themselves
Truth be told if you don't have any leverage over your lender in terms of violations they committed associated with your loan then a loan modification that's worthwhile to you on your terms is a joke.
No forensic audit and threat of litigation against the lender means no favorable loan modification.
Ask any of the other people who answered below if they perform a forensic mortgage audit, found violations and hired an attorney to notify the lender and threaten litigation if they don't comply and were they still down for loan modification and I'll eat my right shoe. The lawsuit in federal court alone scare heaven out these lenders why because you make a request for the original loan documents in court and if they happen to not have them it turns a bad situation worst for the lender.
Here are some questions I ask all my clients before I ask them to pay for mortgage audit.
Did you receive a stated loan where the lender guess the income you were making and went off your credit score?
Has your monthly loan payment has increased more than $200 in the past year.
Has your monthly payment will increase by more than $200 in the next six months, or
Did your loan has a pre-payment penalty longer than three years.
Was your home was originally appraised for a higher value than homes were selling for in your neighborhood.
6. Or if your Realtor or title company steered you to a specific mortgage company.
If you can answer yes to any of these questions then you need to run not walk to get a mortgage audit
I hope this helps.
For a free consultation you can email me at firstname.lastname@example.org or call me at 718-530-0738
One of HR 3648's (Mortgage Forgiveness Debt Relief Act of 2007 - effective until 2012) major points was the elimination of the â€œphantom taxâ€ on foreclosures, short sales or other discharges of debt on a primary residence.
Consider this scenario: A property is worth $250,000, and the mortgage balance is $300,000. Under the old rules, if a lender forgave the $50k difference as part of a foreclosure, short sale, refinance or loan modification, the borrower had to claim the $50k as income and pay federal income taxes on that amount.
The new law eliminates this â€œphantom taxâ€, and the forgiven debt is no longer treated as taxable income to the borrower as long as certain requirements are met, such as the discharged mortgage balance must be on the taxpayerâ€™s principal residence.
Get all the details here:
They will make you stop making payments for at least three months
Then they will consider talking with you.
They will ask for ALL your assets and debt....a full accounting of your financials.
401k and all.
They will then review it to decide if you are having a "hardship" and if you qualify for assistance.
All the while this is going on you are not making mortgage payments. This can take from 3 months to 18 months. During that time your credit score is declining...and believe me it does.
I cannot recommend to you what you should do. But personally, I went through this hell for over 22 months and in the end the bank did not modify my loan, did not accept any offers I brought on the property, eventually foreclosed and is now sending me a 1099 for the debt relief that I will owe taxes on.
How is that for "Helping the Homeowner"