What We Do To Effect a Loan Modification

This page takes you through our process in the documentation we prepare for the lender. We take our modifications from the perspective of making them financially feasible to the lender. That is why we are so successful.

We handle every aspect of the client’s negotiation and prepare a comprehensive loan modification package for the Lender, including but not limited to:

Financial Prospectus Workout. Detailed and documented to include all income, assets and payments made, from their mortgage payment to their dry-cleaning bill. This allows a realistic view of your financial abilities to be sure you can continue to make your mortgage payments for years to come once the loan is restructured.

Letter of Hardship. We take your reasons for financial hardship and insert them into a package that is easy to navigate through so the lender better understands why you need financial relief.

Cost Benefit Analysis for the Lender. We document exactly what the lender stands to lose if they do not modify your mortgage loan. We document the costs associated with the Pre-Foreclosure, Foreclosure, and Bankruptcy Process, as well as the costs associated with missed Property Taxes and Home Owners’ Insurance. We document the costs associated with Attorney Fees for the Foreclosure, Bankruptcy and Eviction Proceedings. The lender will then attempt to auction the property, yet will fail because the lenders today seek a property sale value much higher than market value. Upon failure the property becomes an “REO” (Real Estate Owned) property. Furthermore we assess the costs associated with selling the property: Rehabilitation Costs, Realtor Fees and Holding Costs. We demonstrate a loss by the lender between 20% -70% on first mortgages and 120% on second and third mortgages.

Financial Analysis. We document what your financial situation will be based on new, lower monthly payments.

CMA. We do a Comparative Market Analysis on the property. We DO NOT use local comparable property values on properties that have sold 6 to 12 months ago because those values do not apply in today’s market. We use current comparable property values.

Loan Restructuring Proposals. We draft and propose two new loan scenarios for the lender that make financial logic to both the lender and the client. We execute a profit forecast, documenting how much the lender is to incur in interest after year 1, 5, 15, 30.

Cross Cost Analysis. We apply a side by side comparison to the lender based on the figures we derive from the Cost Benefit Analysis and the Loan Restructuring Proposals. It is basic mathematics; “What is better?” Does the lender acquire a loss of $150,000 by not completing a modification for the homeowner, or procure a profit of $15,000 by accepting our terms for a loan modification?