Hello, my name is Michael Shields and I am a Real Estate and Mortgage Broker doing business in San Diego for over 8 years. Having worked for Citibank, Saxon, and Interbay Funding, I’ve learned what will and won’t fly with these lending institutions. Lenders might find it profitable to foreclose on your home.  Although this may be their last option, and they want to avoid this painful process at all costs. The bottom line is profit! The foreclosure process costs lenders more money than to modify your loan, unless these loans are insured by the FDIC.  These lenders are already suffering huge losses due to foreclosures, if not insured by the FDIC, they will want to keep you in your home. I’m not going to tell you it’s easy to work with your lenders loss mitigation department, because its not. It takes patience, time, and a solid strategy to accomplish a loan modification. This is where we come in. We have the time to wait on hold, provide documentation, and ultimately jump through the necessary hoops to get the ball rolling. Also, we know what the lender is looking for to accept your need for a loan modification. Below is an outline of what we’ll be doing to fight for your new loan terms.

Step one: We’ll prepare and review your financial statement that your lender will certainly require before even considering you as a candidate for a loan modification. We’ll take a three month average of income and expenses to make sure we’re on the right track.

Step two: Preparing a hardship letter. The fact is there are great borrowers that just can’t refinance. This could be because the “creative financing” that was in place when your last refinanced or purchased your home is no longer available. The days of risky no money down, no tax returns, and no documentation loans are gone. Or the equity that you once had to qualify is also gone due to foreclosures in your neighborhood. Whatever the reason, the lender will want you to prepare a hardship letter pleading your case for a loan modification.

Step three: Prepare the call time. This is the most difficult step, for us! This is where we will have to set side hours of phone time. Getting a live person on the phone is not easy when you’re dealing with the loss mitigation department. We will have all of the documents ready for their review to help expedite the process. Having someone (us) on call with your lender will greatly help your success rate and achieving your new loan modification terms from your lender. We will have detailed notes and records of your file readily accessible when your lender requests them, and they will.

Step four: Negotiate, and ultimately accept the new financing terms. At this point the lender has already made the decision to modify your loan. We aren’t done yet! We need to find out if the lender is offering their best terms, or if they have some more wiggle room on your new loan. This is why it’s very important to have a professional on your side that will fight to get you the best financing terms available.