Tip:
Highlight text to annotate it
X
I always tell people when I was dealing with them, with their
bankruptcy situation or foreclosures or whatever especially when someone would call me and they
would say, "I want to file a chapter 13 to save my house" and I would say, "You do not even think
about doing that without an attorney" and I would give them an attorney's name and it would work out
for them because I think the numbers were like 95% of all chapter 13s filed by the home owner
themselves failed. And I think that is the kind of numbers we are going to see in loan modifications
here, we saw numbers the other day that came out from the government saying that over 50% of the
loan modifications are failing. I would suspect that 95% of those were not negotiated by an attorney.
You are absolutely right, the other thing is people think they are getting a loan modification because
their lender told them that but they are going to increase their payment over the next 'x" number of
months to make up for the back payments. That is not a loan modification by my standards that is
called a forbearance and the majority of
people who have failed it is because they were put into a plan that was designed to fail. For god's sakes
if your lender is going to increase your mortgage payment by 50% how on earth are you going to pay
it when you couldn't pay it when it was right? To me it is just mind boggling the minds out of the of
these loss mitigation departments. They're not looking out for you, there mitigating the loss for the
banks you need someone who is going to fight for you. And that is what we do.
Well those guys are employed by the bank and they have a vested interest in seeing the bank do well
And they have huge, huge, huge hundreds of millions and billions in losses that they need to pick up
It is kind of a no-brainer plus you can't discount the psychological element in this. If you are in an a
stressful situation and you are emotionally tied to what if, what if, what is this going to look like in six
months? You cannot objectively negotiate your own case with the lender it's just not psychologically
feasible to consider that.
Even if you have the time and could figure it out
And one thing to take it back to a personal level there were many times when I was working with
people who were in foreclosure and get the phone call the night before the foreclosure sale. They
would ask me, "can you help me?", And I would say yes they can help you now here is what you
want to do, you want to go down to the bankruptcy court first thing tomorrow morning and file
chapter 13 by yourself. Now I am not saying go through the chapter 13 by yourself because I
would give them the attorneys on number but they have to be there in line by nine o'clock to get it filed
and then go get an attorney to work with. But why did they end up in that situation? In many cases they
would tell me that they have been working to get what they called a loan modification more
accurately a forbearance agreement that is what they were working on with their lender, they would
send in all the paperwork that the lender asked for and they would call the lender back after 30 days.
And the lender would say oh well we lost it and so they would get it all together again and they would
send it in and it would be another 30 days, oh well we lost it. Or this, or that, or they would ask for
more paperwork and eventually what it came down to is a couple of days before the actual foreclosure
sale date. The lender would call up and say no, be decided to not do your forbearance agreement for
you. And then they're calling me looking for help, now if you were working with an attorney I
guarantee that lender is not going to lose your paperwork.
So I have this young lady of 50 years old call me today her husband had just passed away two months
ago, sad sad situation very difficult talk with her because it just felt so horrible this was just
unexpected. I probably should not see the name of the service or but she's dealing with someone who
would be considered subprime lender, their loss mitigation department is in India. India doesn't
really have the same rules and guidelines there is a huge language barrier between her and the person
she is talking to try and save her home. Her husband just died, she has not been able to work, she lost his
income and they told her there was absolute nothing they could do. And quite frankly nothing could be
further from the truth, for a loan modification would fly through the system even with this sub prime
lender. When the hardship like that trusts me the lender does not want to be on the front page of any
newspaper denying someone like that loan modification we are here to help for those situations
I had a very similar thing happened to a friend of mine and I suspect it was the same service or
because she was as well speaking to someone in India, and again it was the same thing to run around,
the runaround however they were very fast and filing the foreclosure. And my friend ended up
having filing bankruptcy as well and while in the bankruptcy in chapter 7 for about a month, they
came along and pulled her out of the bankruptcy. They had plenty of time to come after her to get the
house back but they could not spend 2 seconds helping her get her loan modification to and then
attempted to do a short sale on it and of course they couldn't take the 2 seconds to respond to the short
sale documents either.
That's a great story and we talked about her before and it is the same service or. For more information
on the loan modification process or you want talk to Brett Fallon, Dan Havey, or myself call
(480)Velocity and we will be right back in a few minutes.