Our ability to modify your loan is greatest the further away from a foreclosure sale that you are. There are two types of states. Type one is a "judicial state" (there are 24 such states) where the holder of your loan must go to court to obtain a judgment which allows them to foreclose. Here, up until the time that you are to file an answer (usually 28 days from your receipt of a complaint) we can help. Again, the earlier in the process the better our chances. Once you are beyond this period (and in some instances before the end of the period) you will need to file an answer either yourself or through legal counsel.
In "nonjudicial states" the holder need not go to court. They only need to give vario us types of notice that a foreclosure has occurred and a sale will occur. Here the only way to stop the foreclosure is for an attorney to file an action to restrain the holder from selling the property. Normally, if we have 30 days before the sale, we have a chance to modify the loan.
Again, there are no guarantees in this, but, if the negotiation process begins within 30 days of the need to file and answer within a judicial state and earlier than 30 days before the date of a foreclosure sale in a nonjudicial state, there is the opportunity to stop the foreclosure and negotiate a modification or settlement.
We are certainly the most successful of any company that does this. This is due to the unique and aggressive manner with which we negotiate as indicated throughout this site. We can usually prove to the holder that it is in their interest to modify when faced with a litigated foreclosure.
Many lenders will refuse to accept any payment unless it is the entire amount you are behind (including late, collection & legal fees) once you miss just one payment. The difficult part is sending it back to you often causes you to get further behind. Once foreclosure proceedings have started your lender will ordinarily not accept any payment less than the full amount that is in arrears including foreclosure costs and legal fees.
I am behind on payments, how much time do I have before foreclosure?
Foreclosure time varies according to State Law. Time is not your friend when you're behind on payments. You generally have 28 days from the date of the filing of a complaint in a judicial state. You generally have less than 90 days from notice in a nonjudicial state. Although there are other things that an attorney may be able to do after that period, you need to take action as soon as possible.
What about my credit card bills or auto loans that are a problem as well?
First, you have to deal with the possible foreclosure. Keeping you in your house is the first priority. We also do have programs that may help with unsecured debt, credit cards and medical bills. In certain instances collection companies, creditors and credit agencies may have acted in a manner that allow you the ability to eliminate or modify the amount of debt and increase your credit score.
How long does it take for a case to be completed once I am approved?
Your case could be completed in as little as two weeks or as long as four months depending on your lender. The good news is that, while the process goes on, you are in your home.
If the holder does NOT recover the amount of their mortgage note plus any expenses of collection, they may still sue the borrower for the balance due even after the foreclo sure.
Several companies have contacted me recently offering to help - How are you different?
All of the above information shows how radically different we are. We are professionals from the legal and mortgage industry that, although not acting as counsel, operate under the attorneys' code of ethics. There are dozens of companies that either are "scams" set up to take your money or your home. Even greater are those that claim expertise they do not have. There are websites where anyone can become a "foreclosure consultant" by paying less than $100. There is simply no comparison. Most that offer "guarantees" only attempt to bring in an offer that re-instates your mortgage and spreads your arrearage over a period of time. This is all that they can do as they simply lack the expertise to really obtain a satisfactory modification. The least we guarantee is a reinstatement with payments of the arrearage over a year. We would not even receive a success fee based on that. We only receive a success fee if you obtain a modification that you find acceptable.
On the other hand there are attorneys who, generally, are more expensive and who do not really understand this very specific area of the law. Most of them will suggest that you file for bankruptcy and/or attempt to spread your mortgage arrearage over time. There are some fine practitioners in this area, but they are few and far between and generally will be quite expensive. We believe that, before having to utilize them, we can expend every possibility for a modification and generally be successful.
My adjustable rate mortgage is going to reset and I will not be able to pay the entire amount. Is it too early to seek help?
Interestingly, for the most part, only homeowners in the foreclosure process can modify their loans. This almost forces you to stop payments. Although this is changing for some homeowners who qualify under certain federal and state programs to compel lenders to modify loans before default, the percentage of home owners who qualify is very, very low. These programs are simply not enough. That is why the DAC is working with regulators and legislators to compel holders to negotiate modifications at any time in the process. We are somewhat confident that these efforts will see results during 2008.
I've already talked with my lender and they just want all their money. Can you still help me?
Most likely, Yes. You have been dealing with the servicer of your loan and they are usually not helpful. They are set up to handle massive numbers of calls from call centers staffed with very inexperienced employees. We try, in every legal way imaginable to get past them to the holder of the loan or at a higher echelon of the servicer, to negotiate a deal that is good for them and you.
Depending on the facts that are discovered during our review, our Negotiators may be able to negotiate a lower interest rate which means lower payments. Even after exhausting the negotiation process, if you simply cannot afford the payments, we may be able arrange a Deed-In Lieu of Foreclosure to avoid a deficiency judgment. This can also prevent a foreclosure from showing on your credit.
This is a question for attorneys, however, you need understand that, at this time, bankruptcy cannot compel the holder of your mortgage to modify your loan so that you can stay in your home comfortably. Sometimes, in bankruptcy, your attorney can obtain a loan modification but, again, that lawyer must be expert in negotiating these types of agreements. In most instances, the best that can be achieved is losing the home but not having the problem of a deficiency judgment. Before bankruptcy, in many instances we can negotiate what would seem to be a better solution that will keep you comfortably in your home with payments you can afford.
