Loan Restructuring Process

During our first conversation, we will ask you to inform us about your situation. It is important that you explain everything that has led to your mortgage problem and why you are now seeking advice. Based on the information you share with us, we will make an initial assessment of the possible resolutions with your lender(s). Ideally, we are looking to prove your financial hardship, while at the same time, prove that this hardship will be cured if the lender agrees to make changes to your loan. After we have agreed to move forward, we will forward you a copy of our “Loan Restructure Agreement” along with a 3rd party authorization to negotiate with the lender on your behalf. You will want to carefully review these documents and inquire with us on any questions you may have. You will then forward an executed copy to us to get started.

Once you email or fax us the completed and signed forms, we will immediately delegate an underwriter to your file who will schedule a time to speak with you. If the underwriter agrees with the initial assessment to move forward, they will execute an in depth financial interview, detailing everything regarding your mortgage, credit, and personal budget; as well as the amount of money you take home monthly. After we have assessed and qualified the information given, we will determine possible outcomes for a loan restructure and go over them with you. At that time, we will request specific documents to support the information you have given us, and if you elect for us to move ahead, we will continue with the process by contacting your lender and letting them know we will be representing you throughout this process.

Your lender is contacted and we begin the loan restructure process.

Over the following week, we will be in constant contact with you to collect the required support documentation to substantiate your case. Our negotiations are backed by hard documented evidence of the reasons why your lender(s) should provide relief and do it quickly. Until all of the necessary documentation is successfully received and verified, we cannot fully engage your lender(s). Requested items include but are not limited to: Tax Returns, Bank Statements, Credit Card and Utility Bills, W2′s, Payroll Stubs, Property Tax Statements, Lease Agreements (if any), and a Letter of Hardship.

Once you have successfully faxed all of the required case support, we will work diligently to prepare your case for submission to the lender. This stage typically takes 5-7 business days to complete. If any inconsistencies or inaccuracies arise during case preparation, you will be informed immediately.

Know that your case may be submitted to various governmental relief agencies, your lender(s), as well as the ultimate insurer of your loan (i.e. FHA, Fannie Mae, Freddie Mac) in order to get you the best possible relief. Once your package is verified as received by your lender(s), there will be a waiting period for your loan to be assigned to a negotiator on their side. It is important to know that lenders do have their own way of prioritizing loss mitigation cases for review. The waiting period will depend on the severity of your situation and the way your specific lender(s) prioritize your case.

After your case has been assigned, negotiations will take place and hopefully a beneficial restructure will be reached. We say ‘hopefully’ only because no matter how intently we negotiate your case, the lender can always resolve to do nothing. Be cautious of loss mitigation agencies that are overly optimistic, because they are often acting in this manner in an effort to win your business—regardless of whether or not they can truly help you. The fact is that your lender, not the loss mitigation agency, is the ultimate decision making authority to accept a short payoff or modify your loan. Although the lender may be the ultimate decision maker, the lender also has much more to lose in this housing market when they opt for foreclosure. With that said, lenders will only exercise the foreclosure option after evaluating all other remedies because the lender will suffer a greater financial loss when exercising the foreclosure option, than attempting to approve a loan restructure. This is precisely why these are the cases that we accept.

If all is agreeable, you will then sign the final loan restructure agreement as drawn up by your lender and make future payments as agreed. Depending on our negotiation strategy, other remedies can also be reached. For example, if a short refinance was in negotiation, you will then payoff your existing lender with a new FHA loan. If a short sale was in negotiation, you can begin to submit buyer offers for the lender to consider. *It remains your right to turn down any loss mitigation offer from your lender, so long as you are willing to accept the consequences of reverting to your original loan terms or ultimately losing your home. During the loan restructuring process, understand that your lender may attempt to contact you directly. Only a bankruptcy court can temporarily stop foreclosure proceedings or cease calls from their collections department. It is important that you continue to take their calls, but make sure to relay any communication to us. However, it is also important to defer any loan negotiations to our agency, as to avoid confusion and potential conflicts with your case. Hopefully this helps make the loan restructuring process more clear, and you now have greater confidence to face your lender. Please feel free to call us about your situation and find out your options.

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