ATTORNEYS vs. LOAN MOD FIRMS vs. DIY

[vegasunderwater]

Can anyone give me the lowdown, pros and cons, and results on what they think works best for aggressive modification?:

1) Engage an attorney that specializes in loan mods/debt-re-structuring, short sales, etc.

2) Contract with a loan mod firm (that works with an attorney firm) that has a money-back guarantee.

3) DIY - do it yourself

I have 7 rental properties - all underwater and all with negative cash flow. My colleagues have advised to NOT attempt negotiations myself because I have so many and with different lenders. The units are fully leased and CAN be saved if the lenders reduce the monthly payments, despite the negative equity. Restoring CASH FLOW is the key for the time being and in the near future.

[Banzai]

I have a bunch of rentals as well. I am meeting with an attorney tomorrow to discuss some strategies. I pulled a bunch of equity out of some houses with helocs and these are now severely underwater. That is the main reason for the attorney, to negotiate the settlement of the helocs.

I have recently become aware of some programs where first mortgages on rentals can be refinanced even if they are in a slightly negative situation. I have one started and will be working on a few others. CW/ Bof A is doing one on a first that has a second on it. Taking a 7.375% to a 6% fixed 30 with everything just rolled into the new loan. This was very low documentation. They are telling me that the second is obligated to subordinate their loan . This is saving me 166 dollars a month. I hope to do several more.

[classicgk]

What I needed also was not so much an attorney as a good bean counter. We got about a quarter of a million dollar writedown (still not signed and delivered) from our local credit union.

I used an attorney for sporadic advice.

I would consider targeting the lender that is considered most efficient in handling loan mods to warm up on.

I found that the lender was only interested in my homestead plus their property.

My best,

Joe

[vegasunderwater]

"the lender was only interested in my homestead plus their property."

I don't understand what you mean, please elaborate.

[classicgk]

The lenders I have worked with have asked for information on their particular rental plus my homestead. They have not been interested in the big picture of all my rentals just their particular mortgage plus my homestead.

[vegasunderwater]

That's interesting; shows you that they really don't have the time or resources to look at you under a microscope, as I surmised. They are so backlogged and have way too many files. I would think that this is to the borrower's advantage.

The one common denominator that I keep hearing from other borrowers: They won't even pay attention to you if you are still current on the loan. Were you current? An attorney told me that the there's some new law that has to give equal chances for loan mods to current borrowers as well. So, I don't know what to think yet.