Our Services WHAT IS LOAN MODIFICATION? A Loan modification is a process that allows homeowners and lenders to change the terms of a loan in order to help the borrower stay in their home or stop foreclosure. A loan modification is NOT a new loan. It is the renegotiation - or loan restructuring - of an existing mortgage note. For homeowners behind on their mortgage or with an exploding ARM, negative equity or experiencing a financial hardship, a loan modification is often the only option available because the borrowers are unable to get approved for a mortgage refinance or a short-refinance. A loan modification can be done in several ways or combination of ways listed below: * The loan's interest rate may be decreased Many borrowers are facing foreclosure because their interest only or variable rate loan interest terms have sky rocketed beyond what they could have imagined. A loan restructuring is an agreeable way for both the lender and the borrower to avoid the cost and hassle of the foreclosure process and legal proceedings. A loan modification agreement is different from a forbearance agreement. A forbearance agreement provides short- term relief for borrowers who have temporary financial problems, while a loan modification agreement is a long-term solution for borrowers who will never be able to repay an existing loan. If you have any questions at all about the loan modification process we are here to help you in any way we can! We have specialist here for your needs Monday-Friday from 9am to 7pm Arizona Time. To ensure a successful loan modification you will need to provide your attorney with your full closing package from the mortgage or title company that you did business with to obtain you current loan(s). All of the following should have been included within your closing package. **Although this list looks long, if you have the closing package all in one piece it is very likely everything needed is in that package. Documents Required to Perform Federal and State High Cost Loan Test, Federal TILA Test, State Regulations Test, and State Restricted Fees Test * Initial Estimated and Certified HUD-1 or 1A *If more than one loan be sure to include copies of all notes * Payment Rider (if applicable) Documents Required to Perform Federal RESPA Test * Early Good Faith Estimate prepared by lender California Per Diem Interest Test (If your home is in California) * Disclosure Concerning the Charging of Per Diem Interest on a California Mortgage Rescission Test (For Refinances Only) * Notice of Right to Cancel Escrow/Impound Account Test * Escrow Waiver First Payment Date Test * First Payment Notice to Borrower Review of Authorized Credit Report * Borrowers Authorization Additional Loan Documents that will Improve Accuracy for the Modification Process * Second Lien Documents with subordination Agreements (if applicable)
Thank you for your time. We will be working diligently to improve the quality of your life through this loan modification. Do It Yourself Loan Modification? In short yes it is possible to successfully modify your home loan. However, many find that it takes far more time than they have to invest and often times the individual trying to modify the loan by themselves does not get the best deal and in fact often ends up in a forbearance agreement or in an even more expensive home loan. Remember the lenders Loss Mitigation Department exists to limit the banks losses and maximize the banks profit, not yours. If you are ready to take on this challenge read ahead for a step by step process on how to do it yourself. Introduction The term loan modification has been somewhat unfamiliar to homeowners everywhere. However, it has recently been brought to light through the media. What most people are coming to realize is that losing their property to foreclosure is becoming a reality. Homeowners are feeling the crunch of higher interest rates and a slowing economy. A loan modification may be the only way for a homeowner to save the biggest investment of their life, their home. Negotiating with the bank for a modification on your home loan can be an overwhelming process. These circumstances are why hiring a professional and experienced Loan Modification Company is of extreme importance. The right Loan Modification Company will give you the best chances of rescuing you from your high monthly payments, and your home from foreclosure. The reality of today's market is one of steep drops in real estate values nationwide coupled with tighter credit requirements. The combinations of these two realities make a formidable opponent for someone facing an upcoming adjustment in their mortgage payment. Lets not forget that unfriendly world traveler called inflation that has decided to sit on our front stoop for some time now. This formidable opponent is not one you have to fight by yourself. VIP Business Concepts can be there "in the ring" for you. We can help save your home regardless of the situation. The sad truth is that millions of people are in the same boat. Homeowners are struggling to make their mortgage payments and live their lives in a comfortable fashion. The last thing we want at VIP Business Concepts is to see homeowners lose their property when we are here and available to create a solution to this nationwide problem. The first thought most homeowners have is to refinance. Under normal circumstances refinancing would be the correct answer. However, in today's market this formula is not effective as a result of the drop in real estate values and the tightening' of credit markets. Because of todays economy, homeowners cannot typically recreate their past refinancing deal. At VIP Business Concepts we will work to alter the terms of your mortgage, which will provide a workable solution that is agreeable between you and your lender. When the loan is successfully modified it typically creates a win-win situation for all parties involved, including the bank. Most homeowners are currently aware that banks are willing to do loan modifications - thats why you are reading this documentation. Who are we to be advising you? D.W Scott Financial is a full service company for anyone in need of financial help. We provide debt settlement services, credit repair, and home loan solutions. On top of being able to help our clients get back to financial stability, we are backed by a staff of mortgage professionals, debt settlement experts, and a staff of attorneys that can force lenders into a corner and hold legal ramifications over their heads, so that they cooperate with our requests. So, now that you have some insight about us, let's get back to our subject at hand and learn why this is a great time to take advantage of a Loan Modification. By now you have probably heard about the first government bailout plan that was supposed to use $700 billion of the taxpayer's money to help the banks free up capital and start lending again. After $350 billion of the taxpayer's funds were spent it had little to no affect on the economy. The remaining funds allocated from the first bailout plan were thrown out by our new President, Barack Obama, who in turn developed a new plan. This new plan calls for a $787 billion economic stimulus plan with $75 billion of the funds earmarked to help homeowners create some relief on their mortgages. Will this work? Who knows? However, if you plan on waiting around for the government to help you, you should rethink your options. To review the scary facts of who qualifies for help you can review financialstability.gov for specific details. You will find that the families and individuals that are truly in need have no chance of qualifying under the government guidelines. What is a Loan Modification? A loan modification is a process where a lender re-evaluates a loan in the event that the homeowner (also called the borrower) cannot continue paying the full amount of the original mortgage payment. In many cases lenders may waive late fees, lower interest rates to as low as 1.5%, adjust the length or term of the loan, and sometimes even reduce the principal balance to assist the homeowner. Why? Lenders modify mortgages when they have too many foreclosures on their books, and it's a smart business decision for them to do so. The lender would typically prefer to take less each month and have someone living in the property rather than foreclose on it. Additionally, lenders often agree to do loan modifications, because foreclosures are time consuming, expensive, and problematic. A foreclosure often takes months to finalize and during that time the vacant house might be vandalized, the real estate market might decline further, and the lender may lose even more money. So, the main reason that lenders modify loans is to avoid foreclosure problems. Obviously, if very little is owed on the loan and the house can be sold for a profit the lender might prefer to foreclose and sell the house. Doing a Loan Modification is not rocket science. A lender will usually quickly determine if the file is doable or not worth doing at all. If the owner can show that he or she currently has not been able to make the payment due to a temporary setback, but he or she is still employed, and their finances are in order, they have a good chance of receiving a loan modification. For example, a loan modification file most likely will not be approved if the lender does not feel the owner needs assistance or if the owner has too many expenses and no proof of income. Remember, you do not have to be behind on your mortgage to qualify for a loan modification. It is also important to have realistic expectations. Though a loan modification may sound complicated, it's not. It is however, VERY time consuming. We normally see this process take anywhere between 90 to 120 hours to complete the necessary work and documentation for each loan modification we perform. It also requires a LOT of patience. If you plan on orchestrating a loan modification yourself be prepared for the numerous financial forms required to complete this process. A loan modification is kind of like qualifying for a home loan in reverse. Although there is a lot of paperwork involved, the most time-consuming part of a loan modification is the follow up. The first step is simply calling the bank and asking for the Loss Mitigation Department. In contacting the Loss Mitigation Department one must request that a loan modification package be mailed, emailed, or faxed to the negotiator. Loan Modification Industry Myths: * You have to be late on your mortgage to get a loan modification An attorney has to be involved in a loan modification * Many attorneys charge a fee of $1,000 to $2,500 per month (or more) until the loan modification is completed. They also rarely provide any guarantees of an outcome. A loan modification typically takes between 60 to 120 days. VIP Business Concepts charges no upfront fees for the initial pre-qualification. After a client goes through our approval process a fee to start the loan modification services will be requested. The only possible additional fee would be for a prepared loan modification audit. However, it is rare that this would be requested from a lender. Although our Refund Guarantee is excellent it is not the best part of the services we offer. VIP Business Concepts retains attorneys to process and handle your loan modification for you. Our attorneys are in contact with their assigned clients on a regular basis to keep them up to date with the process and let them know what they are doing to hold their lender over a legal barrel and force the modification. Some of the client benefits may include: 1. Lowering your interest rate Some of the lender benefits may include: 1. They will still have the borrower making mortgage payments and therefore will still be profiting Benefits of professional loan modification help vs. attempting to do it on your own: 1. You have one chance to do it right. Therefore, having a professional take care of it will save time and money The Loan Modification Process * Step 1: Loan Modification Package Let's review each one of these steps in detail. The negotiator will first contact the Loss Mitigation Department. A loan modification package will be requested and the file will begin to be processed. When the package is received the necessary information and documentation will be applied. A typical loan modification package includes the following information requests: * Contact information Be Prepared, there is a lot of documentation that will be requested from you! Heres what you will need to do. Gather all your income and expenses for the last two years. You will need to include paystubs, income tax returns, bank statements, property tax bills, etc. Find all the mortgage paperwork and add these documents to the file. Pull together all bills, either paid or not from the times you were falling behind on the house payments until now. Include utilities, auto payments, credit cards, student loans, child support, and medical bills in this package. Find the winter and summer heating and cooling bills and include these. You need to also include everything in the documents describing why you fell behind. Show as much proof as possible such as receiving an employers notification of reduced hours or a layoff, an invoice for an auto repair or a furnace replacement, or a shutoff notice from a utility company. Prepare a Hardship Letter to Accompany your Documentation A good loan modification hardship letter shows valid reasons someone would need a modification. For example your hardship letter should include being laid off, being hospitalized, being unable to work, having mortgage loan adjustment, or if you were deceived into a loan (loan fraud) etc. When putting together your hardship letter, be sure to point out everything you can. It's OK to cry out so someone hears you. Just be brief and to the point, but dont leave anything out. And, of course be honest. Hardship Letter Example... To Whom It May Concern: As a long time customer, I'd prefer that you remain my primary mortgage lender, but without a reduction in the interest rate I simply can't afford higher monthly mortgage payments. Our (my wife and my) total annual income amounts to $81,000.00. That income should certainly be sufficient just to pay a reasonable principal and interest monthly payment. We have always paid our bills on time and have an excellent credit rating, but cannot afford to pay the minimum payment and have the loan recast. We need help badly and want to retire in this home. We are scared of our current loan and we were completely misled and had no idea about the negative effects of paying the minimum payment. Please help us. Thank you for your consideration, Your Signature In this step of the process our professionals will look deeply into your loan documentation to find violations and errors. These errors can result in large fines that the bank will have to pay to their regulating organization. When errors are found, they can be used to force a cure notice. In forcing a cure notice the bank will be forced to comply with a modification in a specific time window. It is important to realize that forcing a CURE Notice is much easy to do when it is provided through an attorney and has the threat of legal action behind it. In utilizing this strategy the bank will take your modification request more seriously. The lender will typically advise someone requesting a modification to fax it into them and follow up in 5 to 8 business days to verify they received it. Unfortunately, this method does not hold the bank accountable. On your behalf we will submit your request by certified mail to ensure it is received. After the package has been signed for we will begin following up with the lender every 5 business days and get the first and last name of EVERYONE we speak with. Key Tip: Try to keep your emotions out of this!! The threat of losing your home can be very scary for most of us and often is a very emotional and personal thing. We all know life throws curve balls at us from time to time. Its the nature of the game and you'd better expect it, because it's coming in one form or another. The crazy thing about going into foreclosure is that many times you can actually come out of it better off than you went in. One way to do this is through a mortgage modification.
Step 5- Negotiations with the Mortgage Company Key Tip: A mortgage company employee's job is to minimize their loss and get as much money out of you as possible. Remember this. This is exactly why it is important to hire a professional. Here are some key steps: Getting the Game Face On Getting the Ducks in a Row At the completion of your first contact with the Loss Mitigation Department a file will be prepared and the process will begin. The outcome will vary depending on each individual's situation, the current market conditions, and the lender's current policies and directives. Some examples of what could result would be: * Payment deferral Still not sure about conducting this process yourself?
Step 6 - The Lender Has Made You a Deal, What Now? Respond to your lender, but don't be rushed into making a promise that you can't keep. Before making a deal with your lender, be sure to describe your situation to an attorney, accountant, or a reputable loan modification expert. You need to make sure that it is reasonable and not an agreement that will stop foreclosure for just a month or two. Many lenders are likely to offer forbearance. This is only good for a short term band aid and will not help to create a long term solution. Most commonly this entails adding a set amount to each month's payment. A forbearance plan can go as long as 36 months and cost more than what the homeowner is currently paying. Many are destined to fail and are completely unreasonable for borrowers to pay back. Usually, forbearance will require placing the delinquent amount on top of your monthly mortgage payment. If you had trouble making your mortgage payment before, good luck paying your new larger more unaffordable payment. If after speaking to your lender you are told that a modification is not an option and you are advised that you may need to sell your home to dispose of the worthless debt and then move on, dont jump to any conclusions this most likely is not the case. If you were told something of this nature call VIP Business Concepts at 1-866-948-6323 and ask to learn more about "short selling" your home or to find out if a modification can be completed through legal action provided by our attorneys. Don't give up the fight to stop foreclosure and save your home! If all efforts fail, it's not the end of the world. Just make sure that you mitigate loss to yourself and do your best to save what little credit you have left. A Loan Modification can change your existing mortgage note and give you a fresh new start in managing your home. Your account may be brought up to date immediately. You will no longer have the lender calling, asking you to pay fees and charges that you simply cannot afford. We are available to assist you at any step in your journey to get you back on track. Our mission is to help home owners avoid as many foreclosures as we possibly can and welcome your questions as you proceed. Step 7: Finalize the Loan Modification Paperwork When you receive your final package from the lender, make sure to: * Review it VERY carefully Now that you have learned the ins and outs of Loan Modifications, you need to make the critical decision on whether or not to do it yourself or to hire a professional organization to represent you. Here are some key benefits of professional loan modification help vs. attempting to do it on your own: * An individual's emotions and frustrations can be very unproductive in obtaining a loan modification Call your VIP Business Concepts representative to get started |