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Oscar Morante

Loan Modification Questions & Answers

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Below are the most frequent questions about loan modifications and their answers. No legal advice is provided. Each case is unique in its way. Please seek professional legal counsel.

Is a Loan Modification For Me?

Usually a loan modification is a good solution for a property owner if the property owner has a steady source of income, can keep paying if the mortgage is reduced and wants to stay at the property.

Do I qualify for a loan modification?

To qualify for loan modification, the property owner must have enough steady income to keep up with the mortgage if the payments are reduced.

Do I necessarily need to be in default to modify my loan?

No. Loan modifications can be negotiated for properties in default and current in payments.

What is a Loan Modification?

A loan modification is a re-structuring of a property owner's mortgage payments such that they are more affordable.

What is forbearance?

Forbearance is a voluntary postponement of the foreclosure process by the creditor. Often the creditor refrains from foreclosing in exchange for the homeowner paying part of the arrears in default. The other part of the arrears are "thrown into the back end" of the loan. Typically there is no change in the monthly payment amount. Creditors typically attempt forbearance before accepting a loan modification. Property owners often confuse forbearance as being the same as loan modification.

How are Loan Modifications Negotiated?

In the states of Oregon and Washington, most successful loan modifications are negotiated through attorneys assisted by expert witnesses and facilitators. In this arrangement, an attorney firm represents a property owner to make the case that the loan should be re-structured such that the property owner can keep up with the mortgage payment. The expert witnesses provide the needed evidence. The facilitator assists the property owner in gathering the needed documents.

Can a property owner negotiate his or her own loan modifications?

Yes! Homeowners can definitely negotiate their own loan modification. However, most property owners don't have the expertise, time and instruments to effectively negotiate an advantageous loan modification.

What are the advantages of an attorney-based loan modification?

  • Uses the judicial system in your favor
  • Takes advantage of consumer protection laws
  • Experience
  • Efficient
  • Faster
  • Systematic approach
  • Has team in place
  • Objective view of the situation
  • Creditors respond better when they hear the word "attorney"

What makes a loan modification proposal acceptable to the lenders?

For a loan modification to be acceptable by the creditors, the property owner needs to show two main facts:

  • Evident hardship and inability to keep making mortgage payments at the current rate.
  • Demonstrated ability to continue paying if mortgage payments are reduced.

What is better: A refi or a loan modification?

Loan modifications and refinances are entirely different animals. One is not better than the other.

  • In a refinance, a new mortgage is created and the existing mortgage is paid off.
  • In a loan modification, an existing loan is re-structured such that payments are more affordable.

What is important is to select the right option based on the existing situation. Both refinances and modifications have advantages and disadvantages.

How much does it cost to modify a loan?

In most situations, loan modifications are less costly than current monthly mortgage payments. We offer a loan modification service fee with payment divided into 4 or 5 installments in order to make it more affordable. For pricing information call me, Oscar Morante, at 971-222-3435 or email me at oscar@bestshortsales.com.

What is the loan modification process? How long does it take?

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FREE Short Sales & Loan Modification Webinars For Property Owners

Free Webinars

Make Well Informed Decisions

Contact Oscar Morante at 971-222-3435 or Oscar@BestShortSales.com

Making the right choices is mostly a matter of being well informed. That is why I believe in education. The better informed you are, the more I can help you.

Attend my FREE educational events. These web events are designed for you to know more about your real estate concerns. The objective of these webinars is to help you be better able to make the right choices.

Presenters:

§ Me, Oscar Morante, Real Estate Agent specialized in short sales and related issues

§ Guests Expert in Webinar's Subject

o Real estate attorney

o Bankruptcy attorney

o Mortgage banker

Webinar Features:

§ Short presentation about subject

§ Questions and answers segment

§ Names are kept anonymous

§ Up to (1) hour long

§ Web and phone based presentation

Webinar Subjects:

§ Loan Modification for Property Owners

§ Short Sales for Property Owners

§ Buying Properties on a Short Sale

Webinars will re-start the first week of January 2009

www.bestshortsales.com www.rapidforeclosuredata.com www.shortsaleprocessing.com www.oscarpdx.com

Mother in Law Not Vacating Property - Short Sale Q & A

Yvette:

Thanks again for considering me for your short sale needs.

If your mother in law does not want to leave, you will need to talk to an attorney versed on landlord - tenant law. If there are no written contracts the process may take long and become expensive. It would be better if your husband negotiates a good will agreement. I would not corner your mother in law because now she is in survival mode. If you are in Oregon or Washington I can help you better.

Look at my web site www.oscarpdx.com. There is a good bit of information there. One of the options you may consider is loan modification. Your husband may be able to lower the payments such that his mother can stay. That would keep the family together.

I am glad I get along great with my in-laws and my wife well with my family. You will have deal with you mother in law for many, many years. Might as well have a great relationship.

Oscar


At 07:04 PM 12/1/2008, you wrote:

Hello

My name is Yvette my husband is in foreclosure right now he has a month before the house will be sold to the county we don't know but mostly it will happen. we don't leave there his mom live there and she is the one who pay the mortgage every month and she did not told my husband on anything until my husband seen some letter in the counter that his house is in foreclosure.

Anyway, to make it short my husband talk to the lender GMAC negotiating to keep his house he owe $350,000 his interest rate is adjusting every month etc.. so he decided to do short sale to slow down the process of the foreclosures, in the main time he gave his mom a verbal notice to find a place to live she said she won't leave until the house is sold.

Does she has the right to stay until the house is sold? my husband wants her out there now.

Please help don't know what to do.

Sincerely
Yvette

Oscar Morante
www.bestshortsales.com
oscar@bestshortsales.com
Ph: 971-222-3734
Fx: 503-296-5663
9220 SW Barbur Blvd.
Suite 119 - #159
Portland, Or 97219

www.bestshortsales.com www.rapidforeclosuredata.com www.oscarpdx.com www.shortsaleprocessing.com

Loan Modification Process -Portland & Vancouver

This is how I do a loan modification

Contact me at 971-222-3435 or oscar@bestshortsales.com

I assist clients in the need of loan modification through a pre-arranged agreement with a real estate attorney firm licensed in Oregon and Washington. The benefit of this is total compliance with local, state and federal consumer protection laws. This system allows you to have the judicial system working in your favor.

Time Considerations:

Loan modifications take between 50 to 80 days to negotiate. There are two main time variables:

  • Speed at which the client can collect the needed documents.
  • The lender's final response time

In loan modifications time is of the essence. It is critical to act as quickly as possible for two reasons:

  • If you are behind in payments, the longer it takes, the more arrears and legal fees will accrue.
  • If you are up-to-date in payments, the longer you will have to keep paying the high monthly mortgage fees.

Fee For Service Payment:

  • Payment is to be delivered together with the complete loan modification package.
  • Payment is made to the real estate attorney firm.
  • Funds are stored in a non-interest bearing client's trust account.
  • Credit card payments are accepted
  • Loan modification fee: Call or email oscar@bestshortsales.com

Loan Modification Timeline

1- Engagement (1-3 days)

  1. Interview client
  2. Present process to client
  3. Collect needed documents
  4. Collect fee for services to be rendered

2- Feasibility Review (1-3 days)

  1. Determine if compelling case
    1. Ability to pay
  2. Return money if not compelling
  3. Deposit in client trust account if compelling

3- Case Commencement (25 - 30 days)

  1. Use consumer protection law as foundation of the case
    1. Demand loan documents from the lender
    2. Mandatory delivery of documents from lender to attorney within 20 days

5- Case Structuring (5 - 20 days)

  1. Objective:
    1. Develop the most compelling case for lender to approve modification request.
    2. All cases are unique (although similar, everybody has its own set of circumstances)
  2. Fact gathering through accredited professionals
    1. Possible property appraisal
    2. Possible title research
    3. Possible broker price opinion
    4. Current overview of local real estate market conditions
    5. Gather and analyze borrower financial information and/or property net operating income (for rental property)
  3. Create re-structured loan modification proposal
    1. Supporting evidence package
    2. Demonstrated ability to pay specific amount
    3. Demonstrate lende alternatives and losses

6- Submission & Response (10 - 120 days)

  1. Deliver re-structured loan modification proposal to lender
  2. Receive lender response
    1. Waiting period
    2. Press for response if necessary
  3. Review lender decision
    1. Possible lender counter offer
    2. Re-submit modified offer if needed
  4. Arrive to a final lender approved decision

7- Client Decision (1 - 5 days)

  1. Possible outcomes
    1. Declined loan modification - lower chance - discuss alternatives
    2. Accepted loan modification - higher chance - review terms

i. Lower interest rate - most common

ii. Reduction of principal balance - very rare

iii. Past due payment resolution - case-by-case

1. Forgiven - less common

2. Re-structured - added to back end of the loan - more common

iv. Combination of all of the above

  1. Accept negotiated loan modification
    1. Pay all remaining attorney fees due
    2. Execute loan modification agreement with lenders
    3. If final payment already made, then withdrawn from in client trust account at this time
  2. Reject loan modification offer and remain in current course
    1. Refund of performance component of attorney fees if no substantial financial benefit achieved.
    2. Discuss alternatives
  3. Case closed

Contact Oscar Morante at 971-222-34335

www.bestshortsales.com www.rapidforeclosuredata.com www.oscarpdx.com www.shortsaleprocessing.com

Loan Modification For Homeowners and Landlords

Do You Still Want to Keep Your Property?

I Can Help You Lower Your Payments

Call me at 971-222-3435

Your house is not just a property. It is your home, your most prized and necessary possession. It is always worthwhile the do as much as possible to preserve this important resource. If you want to keep your property, you should consider loan modification as a possible option.

What is a loan modification?

It is a re-structuring of the current loan such that the property owner can continue making payments because of mortgage payment reduction.

Property owner Benefits

  1. Reduced monthly payments
  2. Credit preservation
  3. Avoid foreclosure ramifications
  4. If up-to date in payment most likely credit will be minimally affected
  5. If behind in payment, debt will read current once the modification is complete
  6. Homeowner remains in property
  7. Preserve neighborhood values

Lender / Servicer Benefits

  1. Preserved neighborhood values
  2. Prevent further foreclosures
  3. Keep current loans as performing assets
  4. Convert defaulted loans back into performing assets
  5. Remain liquid and profitable
  6. Remain able to originate more loans
  7. Increase homeownership
  8. Increase cash flow for landlords

Win-Win-Win

With loan modifications everybody benefits.

  1. The property owner gets to affordably keep the property
  2. The lenders stay in business
  3. The real estate market remains healthy

Loan Modification Realistic Expectations

A typical loan modification reduces mortgage payments by 30% to 50%.

Example:

Current loan payment: $2700

Modified loan payment:

  • $1400 for 10 years.
  • Back to original payments after 10 years.
  • Full balance due at refi or sale.
  • No principal reduction.

Are Loan Modifications Affordable?

Loan modifications are very affordable. Just consider the great savings. Cost varies per specific case. Contact me at 971-222-3435 to talk about it. I will give you an estimate.

Is Loan Modification for Me? Do I Qualify for a Loan Modification?

What is the loan modification process? How long does it take?

Contact Oscar at 971-222-3435. He is most active in the Portland, Oregon area but can help anywhere in Oregon and Washington.

www.oscarpdx.com www.bestshortsales.com www.rapidforeclosuredata.com www.shortsaleprocessing.com