NPR Radio reported today that only 2 out of 10 Loan Modifications are being issued in California to homeowners who directly contact their Mortgage Bank. While some expert Loan Modification companies in California are achieving success rates as high as 90% plus. With all of the buzz and political pressure on banks to forestall foreclosure and conduct Loan Modifications, one would expect the homeowner unassisted success rate to be much higher then this. There are several reasons why many California homeowners are being denied Loan Modifications as explained below.
One, many homeowners do not realize that nearly all Mortgage Banks have basic income qualification parameters. A home owner cannot make to little compared to their total living expenses, for the Mortgage Bank assumes that there is no a severe enough hardship that is negatively affecting the borrowers income in order to justify the Loan Mod. On the other hand, the homeowners income can’t be too low, for the Mortgage Bank will assume that even after a Loan Modification is successfully completed, there is still a high chance that the borrower will default on the loan in the near future, and therefore is not worth the effort of a short sale.
Second reason why borrowers fail to obtain a Loan mod, is that the Loan Modification package is not correctly completed. Mortgage Banks today are being bombarded with both loan Modification and Short Sale applications, and do not have time to process incomplete or incorrect applications. So these packages are simply tossed out and the homeowner is required to start over again, often times without any feedback as to what was wrong with the previous application.
Third reason that many Loan Modifications in California are rejected by the Banks, is the current loan program and interest rate is not onerous enough. This is often a vague criteria, for it depends on the bank, loan amounts, area within California, political pressure, and other factors. So many borrowers contact their lender, spend many hours preparing the Loan Mod package, and then weeks of calling, waiting, FAXing, only to find out that the Mortgage Bank denied their package because the current loan terms and rates are determined to be “good enough”
Fourth reason causing Loan Mod denials in California, is a poorly written hardship letter. Many times the Mortgage Bank will place much emphasis on this document, which can make a break the deal, or highly determine how much of an loan improvement the borrower will achieve.
An expert Loan Modification company can help the homeowner seeking a Loan modification avoid many of these pitfalls. Our team of professionals at CaLoanModAttorney.com have a Loan mod success rate of over 92%. Our Customer Consultants work with the homeowner at the beginning of the process to access the probability of a successful Loan Mod, and gathering the required documentation, packaging the documents, and consult with the borrower in the writing of the hardship letter. Our processing department then begins the laborious task of submitting the package, numerous phone call follow-ups, supply additional information if requested, until the Loan Mod request reaches the final decision stages. Our staff of 5 attorney’s is supervising this process along the way. They step in during the Mortgage Bank analysis process to impact the negotiations in order to obtain the most favorable terms for the borrower. This is another great advantage of using a professional Loan Modification company such as ours versus a homeowner trying to do it on their own. For the 20% of the homeowners who go it alone who obtain a Loan Modification, they usually don’t get the best possible terms available. The Mortgage Bank negotiator on the other end of the phone is usually paid a small bonus based upon their results, and are fighting on behalf of the Mortgage Bank.
If you have any questions about Loan Modifications in California, please feel free to contact us at: 888-530-1212, or drop us an email at: Info@CaLoanModLawyer.com
Short Sale Information,