The Tricks To Getting Successful New York Loan Modifications Done That Most Foreclosure Defense Lawyers Don’t Know!
First off, let’s get one thing straight. Mortgage loan modifications are probably your best option if you are in foreclosure.
Why? It’s extremely unlikely that you’re not going to score a debt-free house in your foreclosure. Even if you win, your lender will keep coming after you. Especially, if you are in a judicial foreclosure state.
The odds are 1:20 that a judge will throw out your foreclosure with a dismissal with prejudice.
A good lawyer will not fill your head with nonsense about the lender owing you a free house. They will also not tell you they can get you a house free and clear.
If a lawyer tells you any of this, run! Run like you are a leaf on the wind.
They are playing you and planning on scamming you.
What Are Mortgage Loan Modifications?
Mortgage loan modifications are when you simply renegotiate the terms of your mortgage loan. However, more lenders are underwriting modifications like they do refinance transactions.
Yet, there is one key difference. Refinancing entails replacing your loan with a new mortgage. Whereas, a mortgage loan modification only changes the terms of your existing loan.
A mortgage loan modification could mean extending the length of your term or lowering your interest rate. The modification could also change a variable interest rate to a fixed-rate loan. The terms of your modification depends on what you can negotiate with your lender.
However, you need to keep one thing in mind. In recent years, lenders have begun processing loan modifications using the same procedures as new loan applications.
This means your lender is going to want to see proof of your income. In addition to other factors that normally go into underwriting a loan. A lender will also want to see a a letter of explanation regarding your hardship. They want to know what happened and that you are back on track.
You also want to include your MFI-Miami audit report. This is assuming you hired us to do one. The MFI-Miami report details key regulatory violations committed by the lender or servicer. This report may convince the lender to give you better terms on the loan modification.
Who Qualifies For A Mortgage Loan Modifications
Normally, not everyone can qualify for a loan modification. Usually, a mortgage servicer will claim you must be 90+ days behind and the house must your primary residence. Mortgage servicers will claim you must show you have incurred a hardship.
These criteria help. However, there are other criteria that will get you kickass terms on a mortgage loan modification. Namely, if there are legitimate questions of legal standing or if they can’t validate the debt.
Sorry, but problems in the mortgage securitization process are no longer considered affirmative defenses or a strong enough argument for lack of standing.
The same goes with arguments about robo-signing. Alleging robo-signing is not an affirmative defense. So, unless you can prove a person’s signature is forged, don’t bring it up. Proof as an affidavit or a deposition saying he or she didn’t sign it or that the person doesn’t exist as in the case with Linda Green.
In most states, a lender must prove they are in possession of the original we inked copy of the note. Lawyers representing a lender are also required to sign an affidavit attesting to this as well.
Validation Of The Debt
A lender must be able to validate the dollar amount of the mortgage debt they claim you owe. If they can’t show complete transaction history and can’t prove their numbers, you can use this to argue for a principal write-down or to have any unpaid interest taken off the negotiation table.
Lenders and foreclosure mill attorneys fear forensic CPAs. Especially, former FBI agents like MFI-Miami uses. Our forensic accountants testify for the government in drug trafficking and money laundering cases.
Successful Mortgage Loan Modifications Take Knowing How To Get Them Done
It takes more than strong-arming a lender to get a successful mortgage loan modification. You also must know how to properly submit the modification package and get into the hands of the right people.
You have to properly stack the file with the application and all your financials. You also need to include your MFI-Miami report and hardship letter.
A proper mortgage loan modification submission is also usually 50-200 pages of documents.
In other words, just simply submitting a modification letter won’t cut it. Underwriters don’t like playing your mom. They don’t have the time or inclination to play your mom. So, they’re not going to hound you like your mom. They will simply decline the application.
Why? Because they can. They are not required by law to give you a loan modification. It’s up to you to give them an incentive to do so.
In other words, submit all your modification application and supplemental documents all at once. That will increase your chance of getting a loan modification by 50%.
This is something clueless attorneys and activist Pro-Se litigant types don’t get. Instead of doing it right, they do it their way. As a result, they fall victim to their arrogance and ignorance.
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