May 9, 2015

Loan modification denial? Here are your next best moves!

By Timothy Stull (

The term “loan modification” has become a household word over the last 8 years.  Spurred by the financial crisis and housing meltdown, the era of modifying mortgage loans has lingered on at a very high rate.  This particular era is something that nobody wants to deal with….the banks, homeowners, government & taxpayers all wish to exult the problems surrounding distressed mortgages.  However, these problems are far from over.  Many leading economists have predict that nearly 11 million mortgage loans are headed into foreclosure.  Failed government programs, weak loan modification deals, mortgage loan servicer abuse & rising home equity lead us into a new upcoming disaster zone.  Understand that there was long period of foreclosure stagnation from 2008 to 2012.  Economic calamity amongst the banks and Federal Government litigation stalled out the process over 4 years.  This period caused a massive log jam of home owners that are severely delinquent on their mortgage loans.  Banks are now working through the log jam, profiling each home owner to determine from a collection level.  These banks are essentially operating like collection agencies, since they are dealing with large volumes of defaulted loans.  These banks / collection agencies are not the operations of yore.  They are smarter, technologically advanced and more efficient than even.  In this new age of the internet, they are able to socially & financially profile anyone very quickly.  They know what you earn, how much money you have in the back & what assets you hold.  Simply thinking you can hide information from them is wishful thinking.  The home owner’s social and financial profile is the number one reason people are denied for loan modifications.

OK, so now what?  Since the loan modification has been denied, the bank / collection agency will likely proceed with foreclosure action.  At this point, blocking the foreclosure action with the only effective strategy.  The “best offense is an excellent defense” strategic plan will be the only method to proceed with at this stage.  Many folks feel that they can simply reapply, call free government counseling services or write simple dispute letters to the bank / collection agency.  All of these methods are a waste of time and are not effective in creating leverage.  If you proceed aggressively by stripping down the validity of the debt or filing effective FDCPA complaints, you will be gain traction by creating leverage.  Filing a 92 point complex qualified written request is also an excellent maneuver.  If the opposition fails to file respond to remain in compliance with RESPA, you can proceed with a motion to compel.  This motion has a case record of extinguishing foreclosure activity within the courts.  Also, if you feel that you have been abused through payment misapplication or escrow padding, you can audit a payment ledger and file the necessary FDCPA complaints.  You see, since all banks and collection agencies are collection money for an investor, they need to abide by the FDCPA.

Long story short, if you are able to go through the trenches and battle your lender, eventually they will offer you a deal.  Though it is a brutal process, it is very effective.  We have executed on the above listed strategy for our clients for over 14 years.  We have saved thousands of homes and settled large volume debts in the process.  Feel free to call us at 877.297.7011 for free advice or email

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