1. Is my service fee guaranteed? Are there any hidden costs? Can I get it in writing?

2. Is your company a civilian based model or an attorney based model?

We are an attorney based loan modification company. Civilian based loan modification companies are essentially offering you the same results that you are able to achieve yourself. Without the clout of an attorney on your side, it is likely that the loss mitigation department of your lender won’t cooperate with you and further, won’t offer you the most aggressive terms. They may simply address the problem in the short term but not provide a long term solution. Their results include lowering and fixing your interest rate for a short period of time and often adding an interest-only option or stretching your amortization to 40 or 50 years. While they claim to offer better results than you could achieve yourself, the benefits they produce are drastically less than what our law firm will produce.

An attorney based loan modification is the most beneficial option to the homeowner. The major difference is that we find predatory lending violations in your recorded loan documents and will use that information to threaten a lawsuit in the event they do not comply with our modification request. Some of our requests include, but are not limited to, a balance reduction in the event you owe more than your property is worth, an interest rate reduction, fixed and adjustable rate, first payment deferment for a few months, and, if requested, a change in the terms of the loan (i.e. stretching out the repayment period to further lower the payment). When we find a violation that is a fine plus attorney fees, we break down what it is going to cost the bank over the cost of the lawsuit versus our modification proposal. The numbers work so heavily in our favor that lenders have no choice but to comply. Do not be fooled by a non-attorney based modification company or those that that may overcharge.

Lenders and servicers are currently very busy with desperate homeowners trying to save their homes from foreclosure. Unfortunately, they simply do not have the man power or the capabilities to save everyone and many people are getting lost in their system. As a result, these homeowners suffer from an unnecessary foreclosure. With an attorney involved, you have an important ally in your corner to get you the mortgage help you need. This can make the difference between saving your home and losing your home because our attorney understands State and Federal laws as well as lending regulations.

A civilian based loan modification company simply submits a package similar to a loan submission to have the lender review and render a decision. This DOES NOT achieve the best results for the homeowner. This route could actually make matters worse due to the possibility of improper exposure to the lender without a comprehensive, accurate evaluation of the entire situation.

3. Is the attorney a Real Estate attorney? Does he/she personally work on the file?

There are a lot of loan modification companies that have circumvented the law by renting an attorney’s license to do loan modifications. In this case, the Attorney does not even review the file nor are they involved in the negotiation. In other instances, there are personal injury Attorneys or workman’s compensation Attorneys who have little to no experience in handling negotiations with Investors/Lenders. You need expert advice in order to not fall victim to a scam. A great way to determine this is to ask yourself, who are you making your payment to? Whose name appears on the contract? The answers to both should be the attorney.

4. If you are a civilian based model, are you approved by the Department of Real Estate?

Depending on the State in which the property is located, there are certain laws that a civilian based loan modification company must adhere to. All civilian based model modification companies must have a designated trust account set up and an advance fee agreement on file with the Department of Real Estate. A list of current companies approved by the DRE is provided here. http://www.dre.ca.gov/mlb_adv_fees.html. We cannot stress enough home important it is to altogether avoid companies that are not approved by the DRE to modify loans.

5. How long does it take for you to complete the loss mitigation process?

The timeline depends on the stage of foreclosure you may be in, your financial position, and your lender. Typically it takes several weeks to complete a work-out agreement and stop foreclosure proceedings. We start working on your case as soon as we receive the commitment from you. Again, we understand that time is of the essence. More importantly, we have developed the Rapid Response Guarantee (R2). During your introductory compliance call, a personal loss mitigation specialist will prepare your documentation for review by our in-house Attorney. This person will be your main point of contact throughout the process. During this call, you will have the opportunity to communicate to your Case Manager how you wish to be contacted with updates, by what means, and at what times. You are not going to have to chase us down for status on your case. We will keep you informed every step of the way.

6. Are there any references that you have or samples of approved loan modifications that your company has done?

How do you know you are making the right choice when choosing a loan modification company? After all, you are entrusting them to save your American Dream. Trust and verify. Ask for samples of negotiated loan modification terms. A legitimate company will also be willing to provide you with the necessary documentation needed to make an informed decision.

Mahalo to the “Fairon Group” for this great information