Effective Use of an Attorney in Seeking Massachusetts Short Sale Approvals or Loan Modifications--There is no Better Way to Build a Record and Get Results

There is no question that this post is a shameless exercise in self-promotion. I know we all do it. This opinion is delivered to delineate what I have perceived as the basic problem with dealing with the national Lenders in distressed mortgage situations, and why having a seasoned professional to create a record for the Borrower can be well worth the fees involved.

From my vantage point, the real issue is accountability. How many of your Sellers or modification candidates have tried to "go it alone" when seeking approvals? If theychoose to go the "800 Number" route, get ready for many, many voice-mail prompts. That would not be so bad if you were sure at the end of the day you would get to the right person, or at least the right department, you are looking for. Sadly, that is not generally the case.

What is worse is that Becky, who took care of your matter yesterday, is not in today, or possibly transferred to another department, So today, you have Trish, who is an intelligent person, but overworked and overwhelmed in a universe that refuses to add staff to try to address the growing number of constituents for "mortgage relief".

When our firm, Topkins & Bevans, gets a mortgage relief assignment, the first thing we do is obtain a notarized Power of Attorney from the Borrower(s) and submit that to the Lender. Mind you, the Lender may not let us act on our client's behalf, because the form of the Power of Attorney is not acceptable. In the end, however, we resolve any document issues, and we are permitted to act on our client's behalf.

The key to our assistance is written communication requesting deadlines, or at least a timetable. This approach has the subliminal effect of putting the Lender's feet to the fire. The Lender may be able to get away with verbal "back and forth" with the Borrower and extend a modification decision for 6 to 8 months. It is a little bit more difficult when there is a written trail of communications, and promises, and delays, occasioned by the Lender and sent to a practicing attorney.

Ditto, short sales. We have the advantage in that area of being able to develop the Seller's side of a short sale on a HUD-1 to submit to the Lender. This will include all expected charges and fees, and it makes getting a "yes" from the Lender that much easier.

If any of you have further questions regarding our fee structure and approach, let me know. Dealing with Lenders for Borrowers who are "in trouble" has become a sub-specialty for Topkins & Bevans. Another unintended consequence of the mortgage meltdown we are living through.