INFORMATION ABOUT THE PROCESS
The National Foreclosure Consultants Group Is Not Part Of The Federal Government's Hope For Homeowners Program. We Are A For Profit Loan Modification Organization With An Experienced Real Estate Staff Attorney.
Our goal is to keep you in your home if you can afford to stay. We are experienced in working with your lenders to restructure your current property loan(s), by providing you with a unique, professional plan that you and your lenders can consider.
We fully understand and you acknowledge that you have a serious financial problem and only a short time to overcome the real possibility of losing your property.
We are a group of experienced attorneys, residential and commercial bankers and real estate brokers who understand that federal rules and lender foreclosure policies often conflict. Few people outside the banking world have the knowledge to work with your current lender to restructure your loan.
We believe bankruptcy is the LAST resort.
Typical results of our restructuring plans:
- LOAN MODIFICATION Most lenders will negotiate a loan modification where most of the delinquent payments and foreclosure fees are added on the back end of the loan. Payments can remain approximately the same. In some cases the interest rate will be reduced permanently.
2.FORBEARANCE PROGRAMS Typically 30% of sub-prime lenders (with high interest rates) will only offer a workout program that requires borrower to immediately pay at least 20% or more of the total delinquencies including foreclosure fees, plus the balance of delinquency will be added to their regular monthly payment over a period of six to forty-eight months. Forbearance plans do not remove a foreclosure action but simply stop it in place until the loan is current.
FORBEARANCE PROGRAMS OFTEN FAIL IF THE LENDER IS NOT FORCED TO CONSIDER THE ABILITY OF THE BORROWER TO PAY. WE REQUIRE THEM TO CONSIDER YOUR ABILITY TO PAY.
3. RATE REDUCTION PROGRAM Many homeowners with the 2/28 and 80%/20% purchase loans are having a pay rate adjustment of 28% to 44% and many homeowners can?t afford the new payments and will not qualify for a new loan.They have only one chance to keep their home: a pay rate reduction. A pay rate reduction is not simple to get approved, but we have approximately a 70% success rate on pay rate reductions for qualified borrowers. That is a risk for the homeowner but it is often their only hope.
The key to our high rate of success rate is constructing a financial plan that you and your lender will approve and, most importantly, that you are able to afford. We work with you to compose a hardship letter that describes why the problem occurred and, the good news, why it will not happen again. (A sample hardship letter is attached to this document).
We construct a financial plan that considers your current income and details a list of your monthly expenses and make recommendations to improve your budget and cash flow so your income exceeds your total monthly expenses each month.
Warning Homeowners that try to work directly with their lender have a failure rate of over 80%. Even attorneys do not represent themselves.
We cannot accept you as a client for negotiations until the problems that caused the delinquency have been solved.
The lender wants to see a provable relationship between your income and expenses that will ensure them and federal regulators that you will be able to make your payments in the future.
What is a DEED IN LIEU? When there is no hope or little equity and no interest or hope of keeping the property or selling. Then the borrower may want to offer a DEED IN LIEU to the lender to avoid the lender going to court and getting a deficiency judgment against them. This is a problem in many states. Many times we can negotiate with the lender to accept the property as full payment.
There is also the opportunity to "short sell" your property in the event that you owe significantly more that it is worth and the lender approves the sale. A "short sale" is a most viable option if you are unable to afford future mortgage payments.
Note: A deed in lieu will also prevent the lender from filing a 1099 on their loss which is regular income to the borrower.
FREQUENTLY ASKED QUESTIONS
CAN I DO THIS MYSELF?
You may be able to but there are risks. If the lender forecloses on your home they will be the owner and they will sell your home and pocket your equity (if any). They will use everything you say against you. They will want lots of cash down to do a forbearance payment plan you cannot afford. You lose the cash and your home. We are attorneys and retired bankers and know your rights.
HOW LONG DOES THE PROCESS TAKE?
There is no exact answer. Generally forbearance plans take only two to five months. NEW LOAN MODIFICATION GUIDELINES WERE IMPLEMENTED IN MARCH OF 2009. THERE ARE MANY OF OUR LOAN MODIFICATION APPLICANTS THAT WILL REQUIRE A RESUBMISSION OF LOAN MODIFICATION DOCUMENTS. EXISTING LOAN MODIFICATION CLIENTS MAY CONTACT OUR OFFICE TO DETERMINE IF THEIR DOCUMENTS SHOULD BE OR HAVE BEEN RESUBMITTED TO THEIR LENDER. FOR EXISTING CLIENTS, WE WILL RESUBMIT DOCUMENTS AT NO COST TO YOU IF WE DEEM IT TO BE IN YOUR BEST INTEREST.
Fortunately, most lenders will take only a few months to approve a loan modification program once they have received a complete package.
Most lenders will postpone the sale of your property if they have received a complete package at least two to three weeks before the sale date.
HOW MUCH TIME DO I HAVE BEFORE I SELL MY HOME?
Every situation is different, typically in California the entire foreclosure process takes about three months. The sooner we start the loan modification process and the more time we have to work, the greater the likelihood of success. If you are unsure of the foreclosure laws in your state contact your broker or our office.
OUR MAXIMUM SUCCESS IS POSSIBLE WHEN WE RECEIVE THE YOUR INFORMATION 60 DAYS OR SOONER BEFORE THE FILING OF THE NOTICE OF (FORECLOSURE) SALE.
INFORMATION REQUIRED
In order to process your request for a debt restructuring we will need the following documentation:
- Hardship Letter: Your lender wants to understand what the problem was that caused the delinquency, and how you solved or intend to solve the problem. In other words, tell what caused the problem and why it won?t happen again. It should be a DETAILED letter. Note that we will consider the letter a DRAFT and will help you if necessary.
- Authorization to Represent: Form(s) for each lender: Be sure to give us complete information about your lender(s). For example, copies of correspondence you received, address, phone number and name of any individual with whom you have discussed this matter.
- Legal Notice: Copies of all legal notices you have received from your lender(s).
- Income and Expense Form: A completed Income and Expense Form.
- Tax Returns: We only need the first page of the last two years of Federal Income Tax returns. If you have not filed for last year, please include a copy of the extension and a brief note explaining why you have not filed.
- Bank Statements: Copies of all bank statements for the last three months.
- Pay Stubs: Copies of your last two paycheck stubs. If you are self-employed include a profit and loss statement for the last six months and bank statements for your business accounts for the last six months. If you have rented a room(s) in your home the lender will require a rental agreement.
- Other Income: Verification of any other source of income. Example: Rental agreements, Social Security benefit statements, and so forth.
- Borrower Financial Statement: A completed Borrower Financial Statement.
- Retainer Agreement: A signed Client Contract.
- List of Creditors: A list of all creditors.
Please complete and mail the above items to:
The National Foreclosure Consultants Group
49 Newton Avenue
Woodbury, New Jersey 08096
Or Fax: 856-853-0276
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