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Loan Modification

Loan Modification lets you change the terms of your mortgage so that you can pay it off better. But you can't expect lenders to make it easy. In fact, many homeowners fail to reach a reasonable settlement with their lenders, and even those who do have to settle for less-than-satisfactory setups.

That's where your loan modification attorney comes in.

Contents at a Glance

The Loan Modification Department
How to Increase Your Credit Score with L...
Loan Modification FAQs
Contact the Loan Modification Attorney
How to Apply and Qualify For a Loan Modi...
Every good business has a blog.

Our Mission

The U.S. housing bubble has left many homeowners in mortgage crisis, but the Loan Modification Department of the law offices of Christian Dillon offers a practical solution.

The California-based law firm helps homeowners in financial hardship to restructure their loans and avoid foreclosure. Employing a team of experienced lawyers and financial experts, Dillon & his team has helped thousands of Americans survive their crisis and save their homes.

How to Increase Your Credit Score with Loan Modification

Home Loan Modifications and Your Credit Score

A Home Loan Modification can help you stop foreclosure and stay in your home.Unfortunately, there's no single answer-it all depends on how far behind you are and the kind of Loan Modification you'll be granted.

Best-case scenarios:-
Technically, since you're not borrowing any money, a home loan modification won't hurt your credit score. If you're paying less in interest, you have a smaller debt burden. And since most lenders prefer an interest rate reduction, there's a pretty good chance that a mortgage loan modification will improve your credit score.

The lender factor:-
Unfortunately, it doesn't always happen that way. It also depends on how your lender reports the home loan modification to the credit bureaus.Of course, compared to a short sale or a foreclosure, a Home Loan Modification is still the best way to maintain your credit standing.

Tax implications:-
One of the early problems with loan modification is that the amount forgiven is usually taxable.This can catch homeowners off guard during tax season, as many of them don't know the tax implications at the time of the modification.To avoid such incidents, the IRS announced in 2007 that loan modifications would no longer be classified as "prohibited transactions."If your mortgage falls under these categories, you won't have to file a 1099 declaring the change as taxable.

Loan Modification FAQs

Do you have a question regarding Loan Modification?

Can you help unemployed homeowners?
No. You will need a source of income to qualify for a loan modification.

Do you count the income of people who are living in the home but are not on the title?
Yes. We consider the total income of the household, not just the homeowner.

Do I need to be delinquent or behind on my mortgage?
No, but it will make things easier. Loan Modification is meant to help people in financial hardship, and banks are more willing to help borrowers in trouble.

Do you have any preferred lenders?
We work with all lenders, but the results vary with each one. The results depend not just on your lender, but also the specifics of your case.

Are all lenders willing to negotiate with you?
Yes. Our head attorney Marc R. Tow has established contacts at all major lending institutions. These relationships have saved our clients millions of dollars in successful loan modifications.

Can you help me with properties that I'm not living in or currently renting out?
Yes.

What do you look for in clients?
We can help anyone in financial trouble, but certain conditions can make our job easier. Ideal clients are those who:

- are already in foreclosure
- have received a notice of default
- have an adjustable-rate mortgage that has already increased
- have negative amortization loans
- are experiencing financial hardship due to bad loans or predatory lending

What disqualifies a client from your program?
We cannot help people who have no source of income or have no proof of hardship.

Is it too late to help clients who have received a Notice of Trustee sale?
Definitely not! CD Loan Modification can prevent foreclosure up to seven days before the actual transfer sale date.

What interest rates can I expect after a loan modification?
The results vary from case to case, but most of our clients have gotten interest rates between 2.5% and 5.5%. We have also successfully negotiated on 5/1 I/O and shifted to a 30-year fixed rate mortgage.

Will my lender need other documents (such as credit scores) to assess my application?
Besides the pay stubs and tax forms, some lenders will ask for at least two months of bank statements. But that is strictly to determine your income. Credit scores are never used for qualification.

Can my lender give me any compensation?
No. Lenders don't offer commission like on normal loans, so there's no compensation involved.

Do I need to pay for your services in advance?
Yes. Basically, you're paying our head attorney Marc R. Tow for legal representation services. It works as a legal retainer, as it does for any legal service.

How do I pay?
You can pay with cash or a cashier's check.

How long does it take to get a response from my lender?
The average wait time is 30 to 60 days, but it varies from one client to another. Some applications process faster than others, but it may take a while for your case to be settled.

Contact the Loan Modification Attorney

800.738.1170

Waiting doesnt help avoiding Foreclosure..

How to Apply and Qualify For a Loan Modification?

Loan modification sounds simple enough ! !

You basically ask your lender to change your mortgage terms on the basis of your financial hardship. If you're one of the millions of American homeowners who want to stop foreclosure, it may just be the solution you're looking for. If all goes well, you can get your loan modified in just a few weeks and start getting your life back on track.

Unfortunately, it's a bit less simple than that. Lenders aren't all too willing to restructure your mortgage at your request, and you can bet they'll make it hard for you. But with a strong case and the right defense from a loan modification attorney, it's more than possible to get your way. This guide shows you how to face your lenders and get the best loan modification agreement.

How Loan Modification works:

1. Consultation. The process starts when you consult your loan modification attorney. During the meeting, your lawyer will review your situation and decide whether or not a loan modification is the right step.

2. Paperwork. When they've decided they can help you out, your loan modification firm will send you a package asking for financial documents that will be used for your application. These usually include:

Proof of income
At least four month of bank statements
A hardship letter explaining your situation and requesting a loan modification
A monthly expense sheet detailing all your expenses, including items you are not paying for (such as food and utilities)
Your most recent mortgage statement
2 years W2 forms
2 years tax returns

Your loan modification attorney will determine the best approach based on your current situation. They can also use violations of the Real Estate Settlement Procedures Act (RESPA) and Truth In Lending Act (TILA), as leverage during negotiations.

3. Negotiations. Your lawyer will begin negotiations shortly after sending your application. This is where the real work happens, as they'll actually talk to your lender about your situation and get your loan modified. A good loan modification attorney will negotiate aggressively until the bank makes an offer that suits your financial capacity.

4. Approval. When your bank and lawyer have reached an agreement, they'll send you a document detailing the offer for approval. The change can be a bad credit refinance, a lower interest rate, or a restructuring of your mortgage, depending on your request and what they agreed on.

How to qualify for a Loan Modification:

Each bank has its own guidelines on qualifying borrowers for mortgage assistance. To get the best results, it's important to know their standards and do your best to meet them. Factors commonly considered include:

Income vs. Expenses. The main reason you need to show income vs. expenses is to prove to your lenders that you can still afford to make your payments if they were lowered. This comparison shows how much of your monthly salary goes into paying off your mortgage, including the principal and interest, property taxes, and insurance.

Nature of hardship. Some lenders have specific rules on what qualifies as financial hardship. Your hardship letter should explain in detail what made you fall behind and show that it was out of your hands. Commonly accepted situations include illness or death in the family, job loss or demotion, lawsuits, divorces, and military service.
Payment history. Lenders will also look at your previous mortgage statements to see how you handled it before you fell behind. If you made timely payments prior to financial hardship, it shows that you can get back on track once you have a mortgage modification. Note that this isn't the same as your credit history-your credit rating has nothing to do with qualifying for a loan modification.

Bank statements. A good bank account shows two things: first, that your spending habits were stable before you fell into hardship; and second, that you have an emergency fund in case you fall behind again.

Tax payments. This serves as secondary proof of your financial responsibility. Consistent returns show that you pay all your duties and aren't just trying to get cutbacks. It also backs up whatever claims you made in your hardship letter, and proves that the situation was out of your hands.

Finally, your Loan Modification Attorney also plays a big part in your application. You want someone who comes from a respectable firm, has a good track history (preferably in legal foreclosure assistance), and has contacts at all the major lenders. A good attorney can take time to understand your case and keep negotiating until you get proper mortgage assistance.

Every good business has a blog.

CDLoanMod.wordpress.com is an online discussion location for each and everything related to Loan Modification, Mortgage Modification, Foreclosure Prevention Assistance and Avoiding Bankruptcy. Provides all the loan modification news updates and new updates from the mother site CDLoanMod.com

Understanding Lending Laws

Get to know more about the Laws regarding mortgage loans

Thousands of people enter mortgage loans every day, but few of them really know what they're getting into. When you sign that mortgage form, you're not just borrowing money to buy a home. You're signing up for a serious obligation and sealing a decades-long commitment with your lender. Even if you read every word of your contract, lenders-especially sub-prime ones-will always find a way to wring more money from your pockets. After all, that's how they make a living.

Luckily, the government has taken steps to protect borrowers and make sure everyone gets a fair deal. The Real Estate Settlement Procedures Act (RESPA) and the Truth in Lending Act (TILA) were put into place to prevent unfair lending practices. Knowing these two laws, and the rights they give you, can keep you from making the wrong decisions and making a 30-year mistake.

The Real Estate Settlement Procedures Act

The RESPA basically says that borrowers should be given all the pertinent information when buying a home. The law is designed to prevent the parties involved in the purchase from making kickbacks at your expense. These include your lender, realtor, broker, and the construction and insurance companies. Before the RESPA was enforced, these parties got huge kickbacks from undisclosed fees in the loan.

The RESPA requires mortgage companies to disclose all the expenses involved in the transaction, from the actual purchase price to the small one-off fees. This is called a good faith estimate. The estimate lists your expenses in six main categories:

-Loan fees

-Reserves

-Government charges

-Title charges

-Additional charges

-Fees to be paid in advance

The law also gives you the right to dispute (in writing) any vague or unexplained fees. This way, you know exactly where your money is going, and you can always speak up when you feel you're being cheated.

The Truth in Lending Act

This law was passed in 1968 to protect borrowers in credit transactions. Like the RESPA, it requires maximum transparency from your lender in all aspects of the transaction, from the actual costs to the payment terms. The law is not limited to mortgage loans; it applies to all other credit transactions including car loans and payday loans.

The TILA does not directly regulate the amount you pay on the loan. Instead, it requires lenders to disclose certain costs so that you can compare and shop around for the best deals. The standard figure is called the annual percentage rate (APR), which reflects the total cost of the credit including interest, discount points and origination fees.

For refinancing and second mortgage loans, the TILA also allows you to cancel the transaction within three business days. This is known as the "right of rescission." It basically serves as a cooling-off period-it gives you the time to go over the contract and change your mind before it's too late.

There may be violations of the above regulations in your loan documents. A Loan Modification Attorney may do a forensic audit to determine if errors have been made that could be used to effect a loan modification in your favor.

Loan Modification Help

Loan Modification

Contents at a Glance

Contents at a Glance

The Loan Modification Department

Our Mission

How to Increase Your Credit Score with Loan Modification

Home Loan Modifications and Your Credit Score

Loan Modification FAQs

Do you have a question regarding Loan Modification?

Contact the Loan Modification Attorney

800.738.1170

How to Apply and Qualify For a Loan Modification?

Loan modification sounds simple enough ! !

Every good business has a blog.

Understanding Lending Laws

Get to know more about the Laws regarding mortgage loans

Loan Modification Information Resources

Information, Tips, FAQs on Loan Modification

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