Mirror of Justice

Feldman Law Center – Loan Modification – The Truth, The Whole Truth, And Nothing But The Truth!

July 15th, 2009 at 04:38pm Under Estates Law

 

Loan modification and stop foreclosure services should be provided by a reputable attorney and NOT a loan modification company that boasts “in house attorneys” or “attorney based”. Most so called Loan modification experts are misleading, giving home owners false promises and misrepresenting their services. We have seen many of these loan modification companies send home owners loan modification examples similar to the way they sold mortgages. Making statements and emailing examples with guaranteed or proposed principal reductions and charging up front fees as well as trying to collect monies at the close if they obtain a loan modification agreement. Honestly, these types of loan modification companies should be reported to the DRE and the Attorney General’s Office.

 

We have reviewed several loan modification agreements from loss mitigation companies offering to help stop foreclosure and found they all highly recommend you have “your attorney” review ALL documents including their contract before signing. Why would a borrower hire an attorney just to review a loan modification company’s agreement before signing? In addition, why would they then again hire an attorney to review the final loan modification agreement? The simple truth is, this is advised so you fully understand what you are signing. You must read the fine print and know how to interpret the agreement.

 

Why not just hire an attorney in the first place to negotiate with your lender and review ALL the documents as well as counsel you with a plan of action. Attorneys providing loan modification services and real estate negotiations are not as easy to find. The Feldman Law Center offers a flat fee for loan modification services that is much less than most loan modification companies. We have reviewed several loan modification service agreements from companies that charge up front fees and found them poor at best. DO NOT PAY UP FRONT FEES TO A LOAN MODIFICATION OR LOSS MITIGATION COMPANY THAT OFFERS STOP FORECLOSURE OR LOAN MODIFICATION SERVICES. THESE COMPANIES SEND THEIR FILES TO OUTSIDE LOAN PROCESSING COMPANIES PRAYING FOR A RESULT. OUR LOAN MODIFICATIONS TAKE 3 TO 6 WEEKS, NOT 3 TO 6 MONTHS!

 

Loan modification services should be provided from a Law Office that has experience negotiating with mortgage loan servicing companies for a multitude of reasons. The Feldman Law Center in California has long standing relationships and a sophisticated approach with all the major lenders and mortgage servicing companies and proven results. To see for yourself or for more information about loan modifications call us today or visit www.feldmanlawcenter.com .

Feldman Law Center – Feldman Law Center Acquires Former Lending Tree V.P. To Head Up Expansion

July 15th, 2009 at 02:52pm Under Business Law

The Feldman Law Center, a Law Firm that provides nationwide loan modification and debt relief services announced the recent acquisition of former Lending Tree Vice President Mr. Jerry Koller to head up their expansion. Mr. Koller brings us a wealth of knowledge, says Mr. Steven C.Feldman as Koller has worked for Mr. Anthony Hsieh Former ETRADE Financial CEO who then founded HomeLoanCenter.com and sold it to Lending Tree in 2004 for an undisclosed sum. With over 20 years in the finance and mortgage industry Feldman feels the long awaited acquisition could not have come at a better time.

Feldman Law Center was one of the original loan modification attorneys providing loan modification services throughout the country and has grown at a record pace over the past year. Back in the day, homeowners facing foreclosure or immanent hardship due to interest rate adjustments didn’t know what a loan modification was and with the recent development of our Internal Management System Software and the acquisition of Mr. Koller we can structure our growth accordingly as to not adversely effect our day to day operation. The newly developed IMS system will improve the way we do business and allow us to process and negotiate over 5,000 loan modifications per month. Currently the Feldman Law Center manages a large case load and negotiates pools of loan modifications with the major loan servicers like Country Wide Home Loans, Chase and CITI Mortgage. The original staff of five has grown to over 65 in a year that most new nothing of loan modifications being used to stop foreclosure. The Law Offices occupies over 10,000 sq.’ in Mission Viejo, Ca. and is currently negotiating the lease of another 35,000 sq.’ in Irvine, Ca. Coincidently within a mile of the former Lending Tree campus Mr. Koller frequented. Feldman sees the rapid growth as the next “refi boom” and it should be smooth sailing with Koller aboard. “We couldn’t do it without a man of his caliber” says Feldman.

Mr. Koller went to every Loan Modification Company and Law Office that provides loan modification services in town before settling on the Feldman Law Center. When asked why Koller says, “He has the reputation and I want to work for the best”. When asked why loan modifications, Koller says “I like helping people and I miss the fast paced operations”.

Loan Modification Companies – Information For Consumers

July 10th, 2009 at 08:56pm Under Consumer Law

It’s like the “perfect storm” for ex- mortgage brokers and ex-cons alike. All of a sudden we have thousands of “loan modification experts” hitting the internet. The truth is these guys have absolutely no clue and no leverage with your lender. The best most of them can hope for is an unaffordable forbearance agreement or a loan mod under a government or FDIC backed program that you can probably do yourself. The truth is most of these struggling homeowners end up losing their home to foreclosure because they fell for some gimmicky website, a smooth talking ex- loan officer promising a super low interest rate, and a promise of principal reduction and no payments for 6 months or your money back ( minus a small processing fee of course). At the end of the day they have divulged all of your financial information to the lender, only to get turned down and unfortunately lose their home. The truth is most of these guys who boast “attorneys” and whatever else they can throw at you, are nothing more than beat up loan originators running around town trying to find someone… anyone cheap…,,(usually an ex-loan processor)  to send your file to the bank and see what they’ll do. Common sense should tell you to pick up the phone and call your lender or mortgage loan servicing company and if you don’t like what you hear, then hire an attorney! Yes, when you are in trouble hiring an attorney to fight for you is what one does for the best possible results.

Do NOT buy a “do it yourself book” and do not trust a loan modification company or send them any money to negotiate with your lender. There are about 10 mortgage shops in all of California (most loan mod shops are in California) that have advance fee agreements, see http://www.dre.ca.gov/mlb_adv_fees.html for details. The California Department of Real Estate does not endorse these companies; they only try to regulate them. The rep from these companies must be licensed as well.  Also, you should take note that these companies have been doing loan modifications for less than 6 months, but of course, they are all experts. Yes, I believe some mean well, but the truth is even if they have an attorney on staff, he is not your attorney… and he does NOT represent you at all. Look, you can put a Ferrari emblem on a Ford and it’s still a Ford with a Ferrari emblem. There are just way too many loan mod companies using words like legal and law in their name or boasting they have “in house attorneys”.

You can expect to pay somewhere in the neighborhood of $3,000 to $5,000 with these companies which is general the same amount you will pay to an attorney. If you are in default or foreclosure, only an attorney may collect upfront fees to help stop a foreclosure and save your home. If you don’t have all the money the lender wants to reinstate your loan, an attorney can usually negotiate with the lender to modify the loan, waive the arrearages, and even modify the principal balance to make the loan affordable. There are several laws in place that make it difficult for a mortgage loan servicing company to foreclose on you and have the investor take a huge loss through foreclosure. A good attorney understands how to work with the lender to stop a foreclosure and the lenders… recognizing when someone ‘knows their stuff’… will generally respond to reasonable offers made by a law office for their client. I am confident in saying that as a law firm, we have secured modifications for our clients that neither a loan mod company or homeowner dealing direct, would have been able to secure   For more information on loan modifications go to www.feldmanlawcenter.com or call Mr. Steven C. Feldman at (800) 527-8497.

Saving Thousands with a Loan Modification – Debt Settlement Combination – Felmdan Law Center

July 10th, 2009 at 02:57pm Under Consumer Law

A grinding recession has put already struggling homeowners in a position where household debt loads are quickly becoming unmanageable. Loan modification has become a well known remedy for those experiencing hardships including toxic mortgages, job losses, being underwater on the house, divorce, etc. It has been widely reported that fully half of these modifications end up back in default within six months. Recently Fitch Ratings published estimates that the re-default rates on mortgages would rise to 70% by yearend 2009 due to inadequate terms on the loan modifications and additional household debt that isn’t included in calculating a what a homeowner can actually afford to pay on the monthly mortgage payments.

Once a homeowner has engaged a firm to negotiate a loan modification on his behalf, entering a debt settlement process can double or triple the decrease in monthly payments gained from a loan modification by itself. The debt settlement aspect of this combination has several advantages in terms of the loan modification and the benefits that would accrue outside of it:

1) Monthly consumer debt/credit card payments are typically cut by 50% within one month of starting the process.

2) The documented decrease in consumer debt payments makes the overall financial picture of the homeowner look much better. As lenders broaden their scope to account for consumer debt and ability to pay after a loan modification, the decreased payment as a result of the debt settlement could be the difference between getting a loan modification and being denied.

3) Engaging in a debt settlement will hurt the credit score of the consumer/homeowner but credit scores aren’t a major factor in determining whether a loan modification will be accepted or not. Acceptance for the loan modification is mostly contingent on ability to pay meaning that a debt settlement, even accompanied by a declining credit score, can help make the case for a modification.

4) The timing for completion of debt settlements varies from eighteen to forty-eight months during which time the credit score of the borrower will decline. Over time, as each account is paid off in the settlement the borrower’s credit score will begin to increase. Concurrently, initial interest rates on a new loan modification are typically set for three to five years before payment increases start to go into effect. An attorney negotiating the terms of a loan modification to coincide with completion of a debt settlement can put his client in a position where the homeowner could apply for a refinance at a time when his credit scores are on the upswing.

5) Even if a refinance is not available to the homeowner, timing the conclusion of the debt settlement process to precede the first interest rate bump on the modified loan proves to be advantageous as the homeowner/consumer would have additional cash flow as he finishes his payments to the debt settlement.

For consumer/homeowners with burdensome mortgage and consumer debt payments, combining the two processes can make a significant difference in cash flowing out of the household, the difficulty in managing the debt, and dealing with the possibility of foreclosure. Have attorney assess your total financial picture so that the two processes can be synchronized for optimal results.