Trying to Get a Loan Modification? Things You Need to Know

If you are interested in this article you probably are trying to get your loan modified. If you are working directly with your lender and not seeking the help of an experienced attorney there are definitely some things you need to know. Number one, your lender and the company servicing your loan, known as a mortgage servicing company are NOT your friend. In matter of fact please keep in mind the mortgage servicer is a debt collector and makes more money by foreclosing on your property. Additionally, just because you are making HAMP Trial Modification payments on time means absolutely nothing! You are probably just getting even closer to them foreclosing on your home.

Loan Mod Terms and the Bank's Agenda

As a bankruptcy attorney in California I meet many clients every week needing to file bankruptcy to stop foreclosure on their home. Mainly because they were working directly with their lender for a loan modification and and found themselves in "Loan Mod Hell". So what's happening to these people? What do you really need to know if you are going to attempt or are in the middle of a loan modification with your lender? You need to know what terms like "NPV", "DTI", and "disposable income" mean. You need to know the mortgage servicing companies have a fiduciary duty to their client, not to you. You are either not paying them, have equity, not enough income, too much income or so far upside down on your home that it may be better and more profitable to foreclose on you. This is where "Net Present Value" comes  in. Basically, is it more profitable to foreclose on you of modify your mortgage or allow you to short sale your home.

Bankruptcy attorneys like us probably see it all the time. Homeowners flocking to find a bankruptcy attorney as a last ditch effort to file Chapter 13 bankruptcy in an effort to save their home. Problem is that if they would have consulted a bankruptcy attorney early in the foreclosure process we could have saved them a ton of money and a lot of heartache. List to me, THE BANKS ARE  NOT YOUR FRIEND, THEY ARE OVERWHELMED, UNDERSTAFFED, UNORGANIZED, AND THEY HAVE AN AGENDA!

The Bank Has Profits to Consider

The banks agenda is to collect junk fees and mitigate losses for their client, THE BIG BAD BANK! Don't think for one single minute that they are working with you to save your home! So what are these banks and mortgage servicers doing? They are working ON you to get as much money as they can prior to taking your home legally through foreclosure. If you don't believe just talk to some of your friends and neighbors who been through the loan modification process only to find themselves in foreclosure with a Trustee sale date or having their home sold out from under them.

So What Should You Do?

Consult a bankruptcy attorney early in your financial struggle. Do NOT try and send your lender or mortgage servicing company all your financial information, at least not until you speak with a lawyer familiar with foreclosure laws. Run a REST report to see if your NPV positive or NPV negative and see if a loan mod is in the cards for you. The bankruptcy attorneys at the Law Offices of Zhou & Chini are consumer advocates and fight home foreclosures every day of our lives. Our bankruptcy lawyers wake up every day to help people. If you are a Police Officer, Doctor, Lawyer, Nurse or Fire Fighter you probably do the same. If not, you wake up every day and go to work or search for a better paying job.

If you are attempting a loan modification, been denied a loan modification, or thinking about walking away from an upside down property you need to consult a bankruptcy attorney right now. Your lender will use the foreclosure laws to take your home. Call my office and speak to a bankruptcy attorney today at (800) 972-9600. You have nothing to lose by calling us ,and everything to lose if you don't!