Loan Modification Tips For North Carolina Homeowners

2009-09-02T13:04:00.001-07:00

This week I wanted to share some advice that my firm has learned from dealing with lenders on loan modifications.
It seems that the news continues to have stories related to loan modifications and how homeowners are struggling to get the promised results.

http://www.cnn.com/2009/POLITICS/08/31/homeowners.mortgage/index.html. Hopefully these tips can help someone out there.

Think of this as a business transaction. Facing foreclosure is one of the most stressful situations anyone can be in. This is your home and emotions can run high during this time. When you are dealing with a lender representative, you are just one of thousands of files that person may have. Don’t let your emotions or frustrations get the best of you when you talk to the them. Approach it like you would any business deal. Always be polite to the person on the phone, make sure you have all of your information readily available, and answer their questions as concisely as possible.
Make sure you take advantage of any information that the lender will share with you. Before you call, check their website for available programs and guidelines. This will save you and them time. When you know what you need, gather all your information together and check all your numbers to make sure they make sense.
Send all requested information to them at one time. Make sure you verify the correct fax # before sending. Try to get a receipt showing that the fax went through and at what time it was sent. Call back to the lender in a couple of days and make sure that all documents were received.
In North Carolina only an attorney can legally handle a loan modification for you. The attorney also has to be a practicing North Carolina attorney. Don’t be fooled by out of state companies or attorneys that want your business. There are plenty of reputable North Carolina attorneys that will help you try to keep your home. Along with this, if anyone guarantees you success, say thanks but no thanks and contact someone else.
The best tip I have…… call me (919-866-0965) and I will share it with you. Any advantage you can get over a lender can help you get a better outcome.

Thanks and I look forward to sharing more information with you as the weeks go by.

Why The “Making Home Affordable” Plan Does Not Work

2009-08-31T12:10:00.001-07:00

This is my first blog and I plan on writing this to help inform the American people on what is happening with Loan Modification programs. I’m an attorney that works with homeowners to stop foreclosure and help them keep their homes. When the “Making Home Affordable” plan was launched by President Obama in March 2009, it was envisioned as a way to help a lot of the struggling homeowners in this country. Unfortunately, it has fallen far short. I have clients that put in their application under this program in March and April, that have still not received any help. They just get further and further behind in their payments without any relief. The government keeps publishing data about how many homeowners they are helping but I would like to see the actual numbers published. How many applications have been opened? How long does the process take? How many applications have been rejected? How many have actually been modified? These are some big questions. Here are my 5 reasons it does not and will not work:
1.    No Hammer. The program was supposed to be mandatory on all Banks that received the TARP Funds. But how is that enforced? Who monitors this? With no enforcement language and no repercussions, Banks were allowed to pick and choose who they wanted to help and how long it would take.
2.    Gordon Gekko. Let’s say you sell sneakers. I buy a pair of sneakers from you for $40.00. One year later I come back to you and ask you to give me back $20 of the $40 I spent. I think anyone reading this would agree that the answer would be NO. Why then would a Bank/Lender agree to cut their interest rate in half or give back principle on a loan that they made a couple of years ago. Greed is good still in the Corporate World
3.    Free Service. You get what you pay for is still true. Originally, this program was advertised as a “do it yourself” program, or go to one of our free counselors that will help you fill out your forms. As most homeowners have found this is not an easy thing to do. Those that tried to do it themselves either got the run around or were so frustrated with the process they gave up. Those that called the “government” backed organizations found that they knew more about the program than the people they had to trust to help them through this.
4. Stall, Stall, Stall. The Banks/Lenders became experts in this very quickly. The most often heard statement we hear is “we never received the information”. Almost none of the lenders will let you email anything to them. It all has to be faxed. Then you wait 5 days before the fax will show up on their computer files. Then wait 30-60 days for a response. Then re-submit all of your documents because they are now 2 months old. Wait 5 more days. We did not receive your information…rinse and repeat.
5.    Common Sense. This program was designed by former Investment Bankers, Politicians, and Finance Moguls. When was the last time any of them had a problem getting a mortgage, got laid off, or faced foreclosure. Probably never. Real World people like Real Estate Attorneys, Mortgage Brokers, and Realtors could have put a much better plan in place. Give the people that deal with this stuff every day a chance and I guarantee we could come up with a better plan.

That’s my rant for today. Topics coming soon: Loan Modification, Short Sales, Foreclosure Lawsuits, and Things Lenders don’t want you to know.

Gurley & Cookson PLLC

Loan Modification Tips For North Carolina Homeowners

Why The “Making Home Affordable” Plan Does Not Work