Frequently asked questions

What is Loan Modification?

Loan Modification- This term has been getting a lot of attention lately and rightfully so. With millions of homeowners stuck in toxic adjustable rate mortgages and no ways to refinance out of them, loan modifications may be the only way to assist struggling borrowers. This term is used when your lender modifies your current mortgage (same loan you have, only changes are made to the note) in order to work with you and make your mortgage more affordable. A modification to your rate, balance of loan, delinquent fees owed, term of loan etc. can be made by the Lender. In the past this was only used when a borrower was delinquent but now we will see it being used before someone is delinquent. This will be the hottest term and the best way to help you avoid foreclosure. A Loan Modification will change the existing mortgage note and give you a fresh new start in managing your home. Your account will be brought up to date immediately. With a loan "modification" We take the mortgage you now have and change the interest rate and payment requirements in order to achieve a fixed rate. A change in rates and payments does not result in the need for a new closing, legal fees, survey, appraisal, or taxes. In contrast, if you "refinance" a loan you'll be required to have a closing and forced to pay a variety of fees and taxes. Lenders are willing to negotiate when borrowers are facing financial difficulties and can't obtain other financing alternatives. Guillermo Perez shows the lender why it would be in the lender's best interest to agree to a workout arrangement. In turn, the lender will reduce the loan interest rate, reduce monthly payment amounts or change other loan terms to allow for an affordable loan to allow you to avoid foreclosure. Guillermo Perez brings the two parties of problem loan together to mutually agree to a workout that creates new and better loan terms which are affordable and realistic. The hope is that the new loan will enable you to meet your obligations. And with Guillermo Perez detailed personalized financial analysis, this hope becomes a reality. You simply accept the loan that is affordable to you, and never need worry about foreclosure again.

Can't I do this myself? Why should I pay someone else to do it for me?

Of course you can negotiate with your mortgage company yourself. Just as some people act as their own accountants or legal representation, some people are knowledgeable enough about mortgage delinquency that they are comfortable negotiating with their mortgage company. However, for others phrases like "partial claim", "loan modification" and "special forbearance" are intimidating and confusing terms. People in this category may find dealing with their mortgage company to be a dehumanizing experience as they are shuffled along the assembly line-like process, never sure if the representative they are talking to is truly looking out for their best interests or merely trying to meet their quotas while attempting to keep their talk time low. Guillermo Perez doesn't offer any service to you that you cannot technically perform for yourself. Then why pay us to represent you? There are many reasons we could provide but perhaps an example would be more effective: When you are on the phone with your mortgage company and they tell you there is nothing that can be done for you, how do you know if this is the truth or if it is simply what the representative chooses to tell you as a result of their inexperience or apathy? These representatives aren't sitting in an office of their own, thinking about what a great career they have. The mortgage company representatives you will deal with work in call centers- a low-paying, high-turnover field of employment. Our negotiators have more experience in mortgage retention than most any of these representatives, do you? How many financial transactions are as important to the average person as their home? Much like in any important matter, having the proper guidance and representation can make all the difference in the world. It can save you time, trouble and money.

Does my mortgage company want to foreclose on my property and take my house?

Absolutely not. When a mortgage company forecloses on a property, they almost invariably lose money. They lose even more if they are forced to take ownership of the property. Because of the mortgage company's as well as the investor's likely losses on foreclosed properties, there are wonderful ways to either avoid going into foreclosure or to get out of it. This is the good news. The bad news is that you are really nothing more than a loan number (usually one of millions) to your mortgage company. While not trying to insult your mortgage company, they don't need or want to specifically help you. They simply need to ensure that they meet their numbers. While it may be encouraging to know that their financial interests lie in keeping you out of foreclosure, you should also realize that mortgage companies are some of the largest owners of real estate in the world. This is directly attributable to the sheer number of properties they assume after the foreclosure sale.

What are "hardships" and do I qualify?

Here is an example list of hardships that lenders consider during the loan workout process: Adjustable Rate Mortgage Reset - Payment Stock (uncommon, but we will see more lenders accept this in the future) Illness Loss of Job Reduced Income Failed Business Job Relocation Death of Spouse or Co-Borrower Death Incarceration Divorce Marital Separation Military Duty Reduced Income Medical Bills Damage to Property (natural disaster or unnatural)

What other options do I have?

Well besides a loan modification you have two other options to consider. The first is a short sale and the second is a deed in lieu of foreclosure; aka deed in lieu. To do either of these you MUST be in default: Short sale: A short sale occurs when a property is sold and the lender agrees to accept a discounted payoff, meaning the lender will release the lien that is secured to the property upon receipt of less money than is actually owed. Example: If the unpaid balance of a loan is, say, $100,000 and a property sells for $90,000, under a short sale the lender might accept $90,000 as payment in full. Deed in lieu: A Deed in Lieu of foreclosure (DIL) is a disposition option in which a mortgagor voluntarily deeds collateral property in exchange for a release from all obligations under the mortgage. Some lenders may even give you cash to deed your home back to them. This is also known as "Cash For Keys". A DIL of foreclosure may not be accepted from mortgagors who can financially make their mortgage payments. When you speak with your representative we can assist you with either of these options if you wish. Besides loan modification, our legal team has many years experience negotiating short sales and deed in lieu of foreclosure.

What do I get with your service?

Your getting full loss mitigation services which may include a loan modification, shortsale, or deed in lieu of foreclosure. Credit repair and debt consolodation are optional.

What if I have equity and I just want to sell my house?

If you have enough equity you can always just sell the house quickly to an investor. If that’s the case we have our preferred investor group that we can refer you to. Just tell your representative you would like to sell your property NOT keep it and we will be able to assist you with that.