Question Regarding Option One Loan Mod

[luvmyhouse]

I had posted a question previously inquiring about other people's experience with Option One Mortgage. Nathan kindly replied to that post suggesting that I get assistance from a lawyer when applying for a loan modication. Through my employer, I am a member of a legal plan. I'm not sure if this is covered with them. But, I want to know how the process differs when working with a lawyer versus doing one myself. I submitted an application to them, but I have not heard anything back. And no one can confirm that they have received my package. I mailed it to them. Now they are suggesting that I fax it. I just want to get this loan modified. Sigh!

Regarding loan modifications, the difference with working with an attorney is largely that of access. When you call is the borrower you may not reach the appropriate person. An attorney generally can get to the right person easier. Additionally, unless you have done a modification before, it is difficult to know how best to package the file and "make your case" to the lender. There are some guidelines and criteria that an experienced attorney can use to maximize your chances of success. There is never a guarantee whether an attorney is used or not. Some lenders are better than others, and frankly, some are making it much easier for homeowners than it has been in the past. I expect that it will continue to get more streamlined as time goes on. Hope this answers your question.

[Moe Bedard]

Dealing with lenders is difficult for anyone. There are certain things you need to do and say just to get back to the loss mitigation departments. LetterS and communication need to be addressed throughout the whole process also.

Anyone can do this themselves but the resulys you may get will not be a good or as expedient as if an attorney was to handle the loss mitigation process. They seem to get a bit more resapect then the average person and are not as abused on the phone when calling and dealing with the employees of the lender. That is the biggest issue is just getting through, speaking with someone who has the AUTHORITY to approve or dissaprove a loan modification or a short sale. Many times homeowners are told they do not qualify or they can't get help by employees that are in collections and not even in loss mitigation. Some are trained to brush you off and ask for money. "You can't pay this, how about you pay this or what can you afford?" Just back and forth,

I myself have been hung up on, cussed at and sweared up and down by lender employees. I have spoke with many, many homeowners who have had the same issues also.

This is such a stressful time for people and when you're behind the 8 ball, you're not in the best frame of mind and you may not make good decisions. Plus the time that you really need to devote to just calling your lenders to get answers is ridiculous. You litterally have to sit and call all day for days to reach a live person who can help you. Sometimes you may get lucky and get through and get answers. More often you don't.

I don't like saying this to be negative but I am not going to make it sound easy because it is far from a simple process. My mission is to make it easier for everyone, but that's just not reality now.

[Paul M.]

"Loan Modifications" is becoming a household term. Just a couple years (maybe even a year) Loan Mods were not something the average person even knew existed. The lenders did not have big departments nor many rules in place to handle many different scenarios. The lenders are now fielding calls from literally thousands of borrowers in trouble. The lenders are scrambling to hire competent staff, make appropriate rules, and protect their assets all at the same time. If you realize this when you start a loan mod, you will understand why the process seems difficult and the rules change from day to day, depending on who answers your call, and why your neighbor gets a different deal than you.

That said, while the lenders are slow to respond to this crisis, they are not stupid, and when faced with the realization that a mod will be a better investment than foreclosing, they will take the deal.

[luvmyhouse]

Thanks so much for your answers. It sounds like getting an attorney is the way to go. Should I be looking for a mortgage/real estate lawyer? Any recommendations in the Massachusetts area?

[Moe Bedard]

Sorry everyone! I know Nathand and Paul are busy and trying to answer questions as they field phone calls that are coming in to the law firm as they do this.

I am by no means a know it all but I have been at this long enough to know a few things. I would say your best bet is to deal with an attorney that has experience in both areas of the law. There are a lot of great real estate attorneys that just do not have a grasp of the mortgage side of the equation because this is such a new field of law. In applying for a lon modification you need to have experience with the mortgage side and also the loss mitigation side of the bsuiness because it's actaully a blend of the two.

I myself am getting calls and working with lawyers across the country who need help with loan document reviews, loan modifications and consulting in regards to how the mortgage process works and how a transaction is performed from a-z. If you don't understand the inner workings of a mortgage and the nuts and bolts then I believe you cannot effectively represent someone in a predatory lending case or with a loan modification.

I also believe that there are many great non profits that can do a great job for homeowners, but when you get into aspects of the law, then an attorney will always be the best defense. However, your outcome will only be as good as your attorney is.

The next question is affordability now for many people and I understand this as everyone is tight on cash when they are delinquent on their mortgage. But when your home is on the line??????? It becomes a question of what is the best thing to spend your cash on? A good attorney is always worth their weight in gold. A good lawyer referral is huge whne you need advice. Maybe they will have one for you?

My recommendation is to look for a mortgage law specialist because they will most likely have training in real estate law. That's how many attorneys started in the mortgage side of law.

[Paul M.]

Sorry, I don't have any recommendations in Massachusetts for you, but you could start with lawyers who practice "consumer law" or "real estate law" and see if they have experience with mortgage law. Contact the county bar association for referrals.

We can review loan documents and look into modifications for you, but if we have to file suit, we would need to work with an attorney in your state.

- Paul

[Mike86]

Paul,

When you look through loan documents, what are you looking for? What if my loan documents were lost?

Thanks,

Mike

We examine the loan documents for specific violations of various laws. The most common violations we find involve the Truth In Lending Act (15 USC 1601 et. seq.) Examples of violations are understated finance charges and the APR. The notice of right to cancel is also defective in several cases because it is not completed properly by the signing agent.

If you do not have your loan documents because you were not provided them, this is in itself a violation. Unfortunately as you can imagine it is difficult to prove. That being said, we have been successful in cases where a borrower was not provided with their documents at closing. If on the other hand, you lost them or destroyed them, we can usually obtain a copy from the escrow company and/or current lender.

You can find an article i wrote on various violations at: http://www.fransenandmolinaro.com/pr...Rescission.pdf
The article was written for a legal publication but it may give you some insight.

Hope that helps.

[Mike86]

OK, suppose I would like to have you handle this for me. What are your fees to have this done and what happens if there are predatory lending violations?
What if I need to fight my lender in court?

A lot of us homeowners need an attorney but it's out of our financial range.

[Paul M.]

We truly understand the financial bind our clients are in, and we have a two level fee schedule to get started on a review and assessment. Then, if we find a case or decide to pursue a course of action with our client, we have specific fee structures in place for each type of additional services.

To start... assuming you are in California... our initial fees for mortgage document legal services are as follows (and of course, specifics may vary according to each client... we try to keep everything the same, but so far, like snowflakes, no two clients are the same as each has a different loan, financial situation, and story of how they were abused by their broker/lender):

EXPANDED ASSESSMENT, CASE REVIEW, AND
DOCUMENT AUDIT (Fee of $1,500.00)
1. AN ASSESSMENT OF YOUR CURRENT LOAN:
● a thorough loan document audit;
● a review of your loan terms;
● a legal case assessment of your rights; and
● potential solutions to your mortgage problems.
2. A WRITTEN REPORT OUTLINING:
● whether your loan was done in accordance with California and federal laws;
● the amount your broker and other people made from your loan;
● the terms of your loan in language you can understand; and
● an assessment of whether you have legal claims against your lender, broker, or other parties who took part in your loan.
3. ATTORNEY CONSULTATION:
An attorney will also spend up to one hour with you providing legal advice and discussing your available options to make your monthly loan affordable such as, but not limited to, getting you out of your current loan ("rescission"), getting new terms for your current loan ("modification"), selling your property to get out of your unfavorable loan (sale, short sale, deed in lieu), or in more severe instances, bankruptcy.
Depending on the results of our loan review and assessment, we may be able to provide further legal advice and help in carrying out the plan we recommend, whether it involves rescission, modification, sale, bankruptcy, or other means of protecting your rights.

BASIC LOAN DOCUMENT REVIEW (Fee $375.00)
Attorney will review the loan documents and advise Client as to whether there exist violations of the Truth In Lending Act, or other federal laws to which rescission applies to the loan described above. If rescindable violations are found, we may offer to take the case on a contingent basis (that is, the rest of our fees will be a percentage of the money the borrower "gets back" as a result of a successful rescission).

- Paul

[12345]

do you help folks in MN? if you help with a restructure, do you charge extra? lastly, when i got my loan, i did not have enough money to pay my bills, i felt talked in to it when it was clear i didn't make enought money do to the fact i had so much other debt at the time, now however i make more $$ but as you already know, once behind its hard to get out...

[Paul M.]

We are licensed to practice law in California. However, we are able to work with counsel in other states to represent borrowers in those other states. We have a network of attorneys that allows such a relationship in just about every state. Such a relationship is necessary first because it is the law, and second because, while we know the federal laws and the California laws, we are not familiar with the unique laws of each state. These other attorneys are able to look into violations under that state's mortgage statutes and advertising statutes. The first step for an out-of-state potential client is to contact our office, tell us what state and city your home is in, and then we'll look to our network to see if we have local counsel.

- Paul

[12345]

i will call you for direction. i could perhaps do this on my own, but they seem to use the intimidation factor when dealing with me and i don't always understand to boot. i am even argueing over a payment they said they didn't get, but i have the cashed ck, i don't know how they can get away with that...