Westport, CT (PRWEB) June 21, 2010

S. Norman Nash–
We all have been told that the Obama administration’s modification programs have been developed to assist the overall economy by resolving the mortgage crisis. The Massive Myth is that these programs are readily and simply accessible to everybody, and that property owners need to be delinquent in their payments to qualify. In reality, you can qualify without being delinquent. But most Americans still locate it hard to talk to lenders unless they are delinquent.

What is the answer?

Beneath are typical issues skilled by a lot of people, including a number of members of Congress and State Representatives when applying and speaking to lenders for themselves and their constituents.Also why Attorneys can be a far better option in negotiating with lenders for obtaining superior terms and final results.

The public, has been told that everybody with a mortgage is entitled to go to their lender and apply for a modification and that they will support us for cost-free. The lenders have gone public on Tv stating that they are prepared and prepared to aid the public in a timely fashion. Regrettably, this is the myth.

One of the initial question lenders asks their buyers who apply for a modification: Are you delinquent? Most will not even contemplate a modification unless the client is delinquent. They will fundamentally attempt to place their clientele in delinquent or foreclosure status initial so that they have all the leverage when negotiating. If the mortgagor is present with payments, the modification is not a priority for the lender.

The attached Property Affordable Modification System Supplemental Directive 09-01 four/4/09 states in HAMP Eligibility on page 2:

The mortgage loan is delinquent or default is reasonably foreseeable loans presently in foreclosure are eligible. This signifies if you have foreseeable hardship, be it a reduce in revenue or added expense, such as a new baby, you may be eligible for the modification.

See the attached HAMP Hardship Affidavit, Fannie Mae Type 1021 August 2009 for a list of achievable hardships

I have personally talked to many people who represented themselves in early 2010 that told me their private horror stories. Spending hours on the telephone, on hold most of the time. When they have been fortunate to talk to an individual, it was a various particular person every single time not usually obtaining access to the current files and the client had to start more than once again, wasting precious time. Then they have been unofficially told (despite the fact that no lenders will ever admit this) that they have to be delinquent just before the bank will speak to them.

Thinking they necessary to be late these people stopped paying their mortgage for many months. Then they received a letter, starting the foreclosure procedure. It wasnt until this point that the lender would speak to them about their file. Now that the lender had them just exactly where they wanted them a ruined credit rating and foreclosure status on their mortgage, they powerful armed these unsuspecting folks into accepting what ever terms they wanted to give them.

Did you know lenders are not needed to inform their consumers the maximum quantity that they really qualify for? They are only necessary to inform the consumer how much they are becoming subsidized. For instance if the bank suggests a $ 500 modification is obtainable, it is likely that the client has been approved for much much more, in some circumstances doubling this amount. It is the job of the mortgagor and/or their Attorney to negotiate with the lender in order to get the maximum modification they qualify for. Remember, all lenders are trying to make a profit and so the significantly less they give the much more cash they preserve.

Some elected government officials and State Representatives are now receiving on the band wagon to help their constituents deal with these lenders.

—US Senator Kay Hagan assisting save properties two/14/ten
http://stellahopkins.blogspot.com/2010/02/us-sen-kay-hagan-helping-save-properties.html

—Sen. Brown appears for further federal foreclosure funds for Ohio three/eight/ten
http://www.bignews.biz/?id=848959&keys=Senator-SherrodBrown-Foreclosure-Ohio

—Representative Danny K. Davis (D-IL 7th) 7th-term Democrat from Illinois. 
Mortgage Modification with Citimortgage 1/22/10
http://www.congress.org/congressorg/bio/userletter/?letter_id=4568090381 

Individuals do have the correct to negotiate, though possessing an Attorney in your corner in my opinion is often much better when negotiating. An Attorney could also be able to get rid of delinquent payments, interest and fees, thereby saving the person enormous amounts of time and cash.

In order to process a Government Subsidized Modification, lenders are needed to use a Certified Net Present Worth Test (NPV Test) to calculate a modification. This test calculates how significantly the lenders will profit or shed if they a) modify a mortgage or b) foreclose on the property. It also figures out how significantly of a government subsidy the bank is entitled to, in addition to how considerably the lenders portion must be added to the monthly reduction (a closely guarded secret thats normally extracted from the bank only with a courts subpoena). Soon after all, this is where the lenders profit margin lies when they negotiate for the final reduction figure and this info is meticulously guarded. In turn a Failed NPV test calculates the bottom dollar figure the lender will take into account for a Quick Sale.

To Achieve access to the Certified Net Present Value Test spreadsheets and federal information feed utilised to produce this NPV Test, one demands to be a lender or certified to do so. To become certified, stringent background, educational, and financial requirements are imposed. This means that 99% of the mortgagors/Attorneys that are applying for these modifications will in no way have upper hand when negotiating with the lenders. But, there is good news for everybody!

Lenders take three to nine months to get this information to mortgagors, and Attorneys, File Reviews takes three-four weeks, a definite improvement.

File Critiques has Certified staff members, hence allowing Attorneys and folks access to the identical Certified NPV spreadsheets and federal information feeds, calculating the very same NPV test that the lenders do, in advance. Showing a client their maximum reduction figure permitted, prior to they commence negotiating.

In essence, File Critiques Eliminates the Negotiation Approach.

All in all the process of applying for a mortgage modification is a complicated and time consuming procedure. Nonetheless with an Attorney and File Testimonials I really feel you will save far more time, get superior final results and all with significantly less headaches.