There are two ways for a modification to be accomplished. The 1st is for a homeowner to go to their lender and attempt to negotiate the modification themselves. In many cases this can be penny wise and dollar foolish, because a homeowner is in a state of maximum stress and anxiety, doesn't really know the process and is typically dealing with a person within the institution that may not have a real interest in working with them or in helping them.  

The other way is to work with an attorney who is specially trained in modifications, who knows the people in the banks to speak with, knows the borrowers rights and all of the laws in a specific jurisdiction. What are some of the reasons to use a professional?

· The complexity of the process.
· They know the point people in the banks to speak with and work with.
· They know the exact information that a bank wants to see and how to package and present it.
· They know what can be negotiated and what should be attainable.
· Their ability to halt or delay the foreclosure process.

Some Of The Typical Objections To Hiring A Professional

Why can’t I do this on my own and save some money?

Ò This process is not as simple as making a phone call and getting the deal done. It is a complex process that requires a professional that has seen it and done it successfully. Saving your house is not the time to learn something new!
Ò It is critical to get to the RIGHT people at the lender, and a professional will know them and have a relationship with them. A borrower will typically be speaking with the collections department.
Ò A professional knows the right information to present—cost analysis, valuation of house, etc.
Ò The mortgage modification professional will present a clear and specific proposal in writing instead of asking the bank what they will do. Modification experts will know what the different lenders have been willing to do in the past
Ò The bottom line is that you could save money and attempt to do a modification yourself—but it could cost you the house if it is not done correctly
Ò The professional knows how to stave off foreclosure (halting the process)
Ò If your loan modifications expert can negotiate just one extra item (such as rate adjustment), a borrower could save tens of thousands of dollars.

Why is it so expensive?

Ò The team that you will be hiring will be taking all of your financial and personal information, and be preparing a formal proposal that will be speaking to your specific lender and to the proper decision makers within that lender.
Ò Each modification requires 30 to 40 hours in conversations with the lender.
Ò Once the framework has been worked out, your team will move you from the agreement to settlement.
Ò If you hired an attorney to negotiate on your behalf at $300 per hour (conservative)—35 hours of work would be a cost of $10,500 and they would not typically be as experienced as the attorneys that specialize in mortgage modifications.

I don’t have the money to pay for this

Ò In reality, paying a professional $2,000-$4,000 to save $100,000, save your long-term credit and save your house? There is really no question!
Ò There are different ways to get the fee, none of which are ones that you would typically want to think about, but again the goal is to keep your house: credit card, savings, personal loan, loan/gift from relative. You can typically use any combination.
Ò If a homeowner has already stopped making their mortgage payments—where is that money going to?
Ò A typically overlooked cost is what it would take them to move out of your home and into a rental, including deposit, moving costs, first months rent, utilities and more.

I can’t do this without a guarantee of success

Ò You are paying a mortgage modifications expert and its’ legal team to negotiate on your behalf just as you would an attorney in any action. If you hired an attorney, and you lost the case, would the attorney refund your fees?
Ò Your modification firm will spend up to 50 hours or more preparing documents and negotiating.
Ò Reputable and time tested mortgage modification firms do not accept files that are not reasonable or clients who are not qualified. Accepted files have a 90%+ chance of success.
Ò You, the homeowner, have the final say-so in accepting the offer from the bank.


The bottom line, is that it is imperative to work with a firm that comes highly recommended, that is professional and ethical and that provides you with as good an experience as possible during an extremely stressful and emotional time.

 

Remember that you do have options!!!

If you have any questions, please email me and I will be more that happy to share my knowledge with you.

Michael Haltman, President
Exeter Commercial LLC
131 Jericho Turnpike, Suite 202
Jericho, New York 11753
Haltman@easycommercial.com
exetertraining@aol.com