Frequently Asked Questions
Q. What can loss mitigation do for us?
A. The goal of loss mitigation is to work out an agreement between the homeowner and the lender that will stop foreclosure proceedings permanently. Lenders are more likely to respond favorably when there are violations of State or Federal regulations discovered in your loan package, or current servicing violations. The last thing they want is a law suite. If I find enough violations in your documents, or servicing history, the lender will have little choice but to modify the loan or face judicial litigation.
Q. How do we stop foreclosure?
A. I perform a detailed examination of your purchase agreement, loan documents, and servicing history for any leverage I can use to get your loan modified into something you can actually afford. I review your lenders Loss Mitigation policies and apply it to State and Federal regulations then leverage my findings with the lender to negotiate a loan modification. By working with you and your lender, I can tailor a resolution to meet your specific criteria and financial circumstance. The approach has to make sense to the lender. By sending them a CMA (competitive market analysis) along with a strong modification letter explaining their losses should they foreclose versus their losses should they agree to a loan modification typically results in a favorable solution for you.
Q. How long do we have to act?
A. Time is of the essence when you are behind on house payments and is most certainly not your friend in this situation. Each day that passes makes it that much harder to get a work out agreement with your lender that you can live with. The home foreclosure process in California usually takes about 90 days. When we find evidence of loan fraud, or Predatory Lending, the lenders typically stop the foreclosure in order to give their legal department time to review the case. Pending on their case load, the foreclosure could be put off for up to six months or longer.
Q. Can you help me improve my credit rating?
A. Possibly. Since I have to pull a tri-merged credit report for Loss Mitigation purposes anyway I will be able to council you on what actions you need to take to improve your credit history. Be very cautious with anyone who claims they can repair your credit history. These folks typically turn out to be a rip off. Right now, of course, the best thing you can do to help your credit is to prevent a foreclosure.
Q. How long does it take for you to complete the case once you receive all of the paperwork?
A. Anywhere from several days to several months. It takes about a week to complete the examination of all your documents then anywhere from thirty to sixty days to complete the Loss Mitigation part. Keep in mind, what you see is just a whole lot of papers packed full of numbers and probably words you've never heard of. My examination includes detailed research and investigation of what was this and what was that on the day you closed your loan. What was the par interest rate on that day, what where the most probable comps the appraiser should have used, what was the index of the one of four indexes the lender could have used on your last rate adjustment. Essentially, every word or figure on every page has to be examined for it's end sum or meaning. We have to investigate the servicing of the loan to insure compliance with State and Federal regulations and relationship to the original intent of the Note. There is a lot of attention to detail in the Forensic Science of Documents.
Q. Do I have enough time to stop my foreclosure?
A. Up until the foreclosure sale occurs there is still hope. If a sale date for your house has been set you need to act fast. In these cases, you get emergency attention from me. If need be, I will have one of my attorneys get involved to stop the foreclosure sale. Again, time is not your friend so you better act fast.
Q. I'm currently in bankruptcy. Can you still help?
A. Yes. But I cannot go forward with Loss Mitigation with your lender until your mortgage has been discharged or dismissed from the bankruptcy proceedings. It is advisable however to go ahead with the document examination. Who knows, we just might find the culprit that forced you into bankruptcy in the first place.
Q. I've already talked with my lender and they just want all their money. Can you still help me?
A. Yes. Many people have experienced this kind of inflexibility from their lenders before calling me. Watch how fast they sing a different tune when they know they are dealing with a Forensic Document Examiner. Imagine their response if indeed evidence of loan fraud, predatory lending, or servicing violations is discovered. Then there is the issue of servicing companies that are powerless to modify the loan. These are companies that do not own the Note. What I do then is bypass the company all together and go directly to the Note holder.
Q. Should I file for bankruptcy to save my house?
A. Maybe, but not before I examine all your documents. Use bankruptcy as a last resort to saving your home. Once you file a bankruptcy, there is little I can do to negotiate a loan modification even if there's evidence of loan fraud.
Q. What if there are no discrepancies found in my paperwork ? Can you still help us?
A. Yes. We can still proceed with negotiations for a loan modification based on your financial situation as it stands today. Lenders don't want to bare the expense of foreclosure and liquidation of the asset. They would rather have a serviceable loan in their portfolio and the cash flow as a result. Again, if a loan modification makes sense to the lender, they will likely comply and modify the loan into something you can actually afford. Albeit, not the modification we would likely get if there were discrepancies found in your paperwork.
