We are, above all else, a consumer advocate and pledge that our services are solely for the benefit of each and every homeowner. If the homeowner can no longer remain in their home, we will arrange the most efficient, expeditious and affordable exit strategy. Together, as a team, we can make this happen.
Let our experts guide you in your difficult time, it is what we do. Our team of attorneys, processors, mitigators and negotiators are proven to negotiate your loan modification in your best interest. The processes of mortgage mediation, loan modifications, and foreclosure prevention require superior legal counsel and strategy.
For homeowners who want to keep their home we work to structure and obtain a loan modification. A loan modification is essentially a reconstruction of an existing mortgage that is constructed in favor of the homeowner. Mitigation Online Consultants assists homeowners who wish to remain in their homes by working to convert adjustable rate mortgages to fixed rate mortgages, a common tool designed to assist a borrower who is struggling with their mortgage payments. Our skilled specialists also have the capability to potentially extend amortization schedules, for example stretching a 30 year mortgage to a 40 year mortgage.
We have a network of professionals who are dedicated to negotiating the best scenario for your situation. We bring to the table over 40 years of experience in the mortgage industry, and use that gained knowledge and experience to help those who find themselves in difficult and lifestyle altering predicaments. Call Mitigation Online Consultants today and let us show you how you can rediscover peace of mind.
Loan Modification Process
The average loan modification project takes 60 to 90 days because of the lenders inability to make a decision without getting 2nd floor approval from their management.
Approval is also needed from the investors who own the loan. In some cases the investors may be out of country or the loan may have been "split" between various investment pools.
Our loan mod processing team is specially trained to work this process and to continually follow up with the lenders who are usually too busy to return calls and emails.
Loan Mod Process Steps
1. We interview the client (homeowner) and mutually agree on expectations.
2. We collect the client's financial information and complete the debt to income (DTI) spreadsheet.
3. We help the client fill out all of the necessary forms.
4. Client signs all the paperwork and gives us authorization to represent them.
5. We send the completed information package to the client's lender or lenders.
6. We contact the lender to have the modification case assigned and delegated to a loan rep
7. We send additional requested information to the loan rep. We only send what is asked for.
8. We review information with the loan rep.
9. We start the negotiation by requesting a specific amount of reduction and terms.
10. We review clients financial state with lender. We discuss all options with lender and we demonstrate why it is in the best interests of the lender to re-negotiate this loan rather than foreclose.
11. We spend HOURS and HOURS emailing the lender, and playing phone tag and leaving voice mails.
12. If the loan rep is not responding, we take the case up to higher levels of management
13. The Lender outlines what they would like to see from the borrower
14. We outline the realistic payment needed.
15. The lender requests additional information that was not requested during the initial contact.
16. We provide the lender with an up to date re-sale value of the property.
17. The Lender resubmits the information to their investor for a decision based on the information we have provided and their perception of the value of the property.
18. The Lender makes first offer.
19. We discuss the offer with our client (homeowner) and we make a counter offer.
20. The Lender makes a counter to our counter. This may go on for days.
21. Finally, all parties agree on the loan modification terms and conditions.
22. The Lender wants to talk to borrower to go over conditions.
23. We receive written conditions from the Lender
24. We review conditions to make sure it is the terms discussed. This is where a "Loan Mod Do It Yourselfer" gets hammered. They are not savvy to the hidden terms
25. The deal is signed by borrower and returned to the lender.
26. The deal is done. The homeowner gets to keep his / her home and has the new lower monthly payments and possibly a smaller loan than what they had before.
Understanding the Loan Resolution Timeline
By now, everyone has heard of lender loan workouts. Very few however, know anything about how to negotiate them successfully. Many struggling homeowners have tried to contact lenders on their own, only to be strung along for months without end, only to be told nothing can be done. Many have opted to take on the services of professional loss mitigation agencies to negotiate their loans, but they are often not informed of the loan modification timeline and how it works. Before entering into an agreement with any loss mitigation agency, you will want to have realistic expectations of the entire process.
INTERVIEW - DAY 1
During our first conversation, we’ll ask you to tell 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’ll 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 a copy of our “Loan Modification 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.
“I was behind on my mortgage by 3 months and your company was able to get me caught up while also lowering my payment by $645 every month. Everything I heard on TV is real and you are the one’s proving it. Thank you for all the help.” –Brian T.
ASSESSMENT - DAY 1 TO 3
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 do 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 modification 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 though this process.
Your lender is contacted and we begin the loan modification process.
CASE SUPPORT – DAY 3 TO 10
Over the following week, we’ll 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.
CASE SUPPORT – DAY 3 TO 10
Once you’ve 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.
CASE SUBMISSION – DAY 17+
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.
NEGOTIATION – DAY 17 TO 60
After your case has been assigned, negotiations will take place and hopefully a beneficial resolution will be reached. We say hopefully, only because no matter how strongly we negotiate your case, the lender can always resolve to do nothing. Be cautious of loss mitigation agencies that are overly optimistic to win your business. The lender has the ultimate decision making authority to accept a short payoff or modify your loan, and presently there are no laws that require them to do so unless ordered by a judge in bankruptcy court. With that said, lenders have much more to lose in this housing market when they opt for foreclosure, so they will only exercise that option after evaluating all other remedies. Today, lenders will suffer tremendously if they refuse to modify loans where it makes better business sense to work something out. These are the cases that we accept.
TERMS – DAY 30 TO 60
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.
AGREEMENT – DAY 30 TO 90
Due to the overwhelming requests for loan modification, the entire loss mitigation process typically takes between 1-3 months for terms. If all is agreeable, you will then sign the final loan modification 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 Resolution 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 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 resolution 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.
