FAQ’s
Q. What is loan mitigation?
A. The step by step approach that helps you attempt to preserve your home ownership and avoid losing your home to foreclosure. Loan Mitigation Advocates’ goal is to obtain a loan mitigation solution that keeps you in your home. We bridge the gap that exists between borrower and lender, creating a mutually beneficial solution for both.
Q. Should I call the lender myself and try to have a modification granted?
A. Loan Mitigation Advocates support and encourage you to contact and discuss with your lender directly. Depending on your time constraints, ability to reach the proper source within your lender’s system and the time it takes to complete the loan workout should all factor into your decision of whether to try and discuss directly or to hire a professional. Loan Mitigation Advocates’ system is in place and we are skilled in obtaining the best possible loan modification with your lender.
Q. How do I get the process started?
A. The first step is to contact Loan Mitigation Advocates at 1.866.797.7011. We will ask you a series of general questions to assess if you are a good candidate for a loan modification. We will walk you through our services and the process. We will cover our fee and how our payment works. It will also be an opportunity for you to make sure that you are comfortable with our services, the process and our fee structure. If we are in agreement and you elect to proceed, we prepare a contract that outlines our process and confirms our terms and conditions. Your signature will be required. Upon receipt of the signed contract, we begin working on your case immediately.
Q. How long do I have to act?
A. If you are faced with the possibility of foreclosure, unfortunately time is not on your side. The foreclosure process varies from state to state. Loan Mitigation Advocatessm is focused on preventing you from reaching the initial stage of a foreclosure. Acting fast to remedy your situation is essential. Keep in mind, in some cases the strength of our ability to have a loan modification granted by the lender is directly tied to your stage of delinquency. Take action now.
Q. Will I have to contact the lender directly to let them know you are representing me?
A. Possibly. There are some lenders that require you to contact them directly to request an Authorization Letter. For the lenders who do not have this requirement, Loan Mitigation Advocates will prepare an authorization letter which you will sign. The letter is then forwarded to each lender. Once confirmation is received and acknowledged by the lender, we can discuss your situation in detail with the lender.
Q. How long will it take to obtain a loan modification and complete my case?
A. Everyone’s situation is different. Our experience has shown that cases are taking on average between 75 to 240 days to settle. However, we have closed transactions shorter than 75 days. The determining factors depend on your financial position, the lender’s current backlog and your lender’s willingness to grant a solution.
Q. How is our credit impacted?
A. Your inability to make payments and stay current on your bills will have an impact on your credit. This speaks volumes on the necessity to act quickly to obtain a loan modification. We recommend you seek the advice of a credit professional for detailed information.
Q. Do I have to stop making my payments for a loan modification to be considered by my lender?
A. Do not stop making payments. Our experience is that most lenders will review your situation regardless of payment history or delinquency.
Q. What hardships are considered by lenders when requesting a loan modification?
A. Any of the following could be considered a hardship:
- job loss
- reduction in hours or overtime
- reduction of a business income
- divorce or separation
- illness/injury
- death of a family member
- other
Q. Do you guarantee a solution by going through this process?
A. In all cases, we are dealing with 3rd parties to which we have no control. The multitude of factors that differ in every case creates an environment where we do NOT guarantee a solution. This is one of the justifications for why we do not collect any up front fees and only charge our clients upon a final resolution from the lender.
Q. What happens if the lender will not modify the loan and we can no longer afford the payments?
A. You do have other options. If a loan mitigation option is deemed not feasible, the founders of Loan Mitigation Advocates are licensed California Brokers/Realtors and can represent you during a short sale transaction. If you are located outside of the East Bay in Northern California, we also have Realtors we can refer you to across the nation. There are potential tax implications to a “short sale” and we can recommend a trusted advisor to assist you.
Q. At what point do we have to pay for your services?
A. As detailed in our contract with each client, payment for our services is due upon the confirmation from the lender that a modification is approved either by letter or receipt of loan modification documents.
Everyday, struggling homeowners call foreclosure and loan mitigation hotlines for help on how to save their homes. This is just a small sample of a larger problem. Foreclosures, short sales, adjustable mortgages, and financial or personal hardship have wreaked havoc in the marketplace. The need for loan mitigation is paramount.
At Loan Mitigation Advocatessm, we encourage homeowners to try and resolve their situation themselves. In many cases, the homeowner realizes the complexity of the situation and that they do not have the time, connections within the lending industry or negotiation power. This is where many homeowners turn to a loan mitigation advocate. The hiring of a specialist to handle the process from start to finish can ease an already stressed situation, reaping benefits long into the future, and most importantly, help you, the homeowner, stay in your home.
CORPORATE BROKER’S LICENSE #01858172