Mortgage Modification Legal Network offers the largest National Footprint as a Resource to Banks for Greater Standardization and efficiency with the Modification Process
Mortgage Modification Legal Network offers the largest National Footprint as a Resource to Banks for Greater Standardization and efficiency with the Modification Process
“Reducing the number of avoidable foreclosures” Fed Chief Ben Bernanke comments that we need to draw on the best thinking available and a network of solutions
WASHINGTON, Dec 05, 2008 (BUSINESS WIRE) — According to Federal Chairman Chief Ben Bernanke, the Banks are essentially overwhelmed with the demand by homeowners to modify their mortgages. As the Federal Government actively pursues immediate relief, banks look for ways to reach homeowners with a message to work together to solve the crisis.
The Mortgage Modification Legal Network (www.wesavehomes.com) answers the need for bank relief with the largest network of attorneys and affiliates nationwide.
In many cases, due to the sheer volume of the demand, the homeowner’s lack of awareness of the bank’s mindset, and the homeowner’s reluctance to speak directly to the banks, a third-party relationship is ideal for getting the job of modifying mortgages done in a timely and efficient manner.
There are pitfalls however; many loan modification “mom and pop shops” are overly aggressive in counseling the homeowner to the detriment of the bank’s fragile eco-system.
“There are many companies out there that will take a homeowner’s money, counsel them to miss payments and then not complete the modification until the homeowner is severely delinquent,” says Paul J. Simino, President/CEO of www.onesimpleloan.com. “This gives the third-party relationship a black-eye and hurts all of us robbing the opportunity to help the homeowner and the economy.”
“We offer the homeowners and the banks a highly transparent and efficient system and we simply never counsel the homeowner to miss payments or go against the most basic code of lending practices. Because we have the largest affiliate network in the Country we are able to turnaround the modifications in record time compared to what homeowners are typically quoted and we are able to show the homeowner and the banks the status of their modification on a daily if not hourly basis,” says Ryan Boyajian, President of the Mortgage Modification Legal Network.
The Mortgage Modification Legal Network is also known for their grassroots efforts in providing in-neighborhood seminars and meetings and community outreach. The Spanish-speaking community considers Mortgage Modification Legal Network as their number one resource. “From the beginning we have taken a very active role with the Spanish-speaking community,” says Gerry Fernandez with MMLN. “We know this market, and provide the level of competency and trust they deserve. We also provide our services in other languages including Japanese, Korean, Vietnamese, Farsi and Mandarin.”
About the Mortgage Modification Legal Network:
With over 40 years of combined experience in the financial services, debt settlement and mortgage industry, MMLN has rapidly become one of the largest nationwide loan modification and loss mitigation servicing firms.
Founded by industry experts and with the help of our nationwide network of attorneys, MMLN was created to meet the mortgage industry’s increasing demand for loan modifications, loss mitigation services and loan work-outs. We have created a variable cost solution that allows all of our clients the ability to contract our services in hopes of saving their homes.
Visit our website at www.wesavehomes.com to find out about the seminar near you or contact us at: (877) 606-MODS. 27651 La Paz Road, Suite A, Laguna Niguel, CA 92677
Subscribe to the comments for this postCredit Card Companies Willing to Deal Over Debt
The New York Times published a new interesting Article on Credit Card Debt and Banks willingness to negotiate.
Bank of America says it eased off on more than 700,000 credit card holders in 2008, lowering interest rates and some balances.
Lenders are not being charitable. They are simply trying to protect themselves.
Banks and card companies are bracing for a wave of defaults on credit card debt in early 2009, and they are vying with each other to get paid first. Besides, the sooner people get their financial houses in order, the sooner they can start borrowing again.
So even as many banks cut consumers’ credit lines, raise card fees and generally pull back on lending, some lenders are trying to give customers a little wiggle room. Bank of America, for instance, says it has waived late fees, lowered interest charges and, in some cases, reduced loan balances for more than 700,000 credit card holders in 2008.
American Express and Chase Card Services say they are taking similar actions as more customers fall behind on their bills. Every major credit card lender is giving its collection agents more leeway to make adjustments for consumers in financial distress.
“Consumers have never been in a better position to negotiate a partial payment,” said Robert D. Manning, the author of “Credit Card Nation” and a longtime critic of the credit card industry. “It’s like that old movie ‘Rosalie Goes Shopping.’ When it’s $100,000 of debt, it’s your problem. When it’s a million dollars of debt, it’s the bank’s problem.”
Debt Settlement Companies like www.netdebt.com should gain from this change in philosophy.
Ayuda de Deudas Elimine la deuda y salve miles
Ayuda de Deudas
Elimine la deuda y salve miles
¡Rápido, fácil y privado!
www.NetDebt.com
Debt Settlement Letters - Counter Offer
Counter Offer
If you want to counter an offer made to you by a creditor, verbal or otherwise, this is the way to go. You should pair this letter with the “Agreement to settle a debt” letter.
Dear Creditor,
Re: Account Number
In response to the settlement offer made between myself and your customer service representative <name>, <phone number> on <date>, this is a counter offer from my end.
I highly appreciate your company’s kind consideration and willingness to work out the matter with me and help me in all earnest to settle this debt. Your support will be of immense help to me in settling this debt issue which I honestly wanted to resolve for quite sometime now.
The final amount we mutually agreed upon is $………. I also request you to take into consideration the fact that we also agreed that all my interest rates, late fees or any reference to them are to be eliminated from my credit report.
Incidentally, I have enrolled with several other companies to clear my debt issues and have a moderate amount of funds. In all probability I can only come to business terms with you if you consider and agree on my proposal mentioned above. Fortunately, I have already attained agreeable settlements with a couple of my creditors and will hardly have any left over funds at the end of this month.
<Optional clause> If I can manage my finance more effectively, I may also offer extra money added to the agreed amount, in order to upgrade my credit rating. I’m sincerely concerned with my credit ratings as this is the most important issue in this agreement for debt settlement.
Keeping in mind our mutual agreement, I hope that the above terms and conditions are acceptable to your company. On accepting my proposals please sign the attached letter to confirm our agreement and forward me a copy of the same. On receipt of your approval letter I will send you a money order with valuation of the amount stated above.
Thanking you in anticipation,
Yours truly,
Your signature
Your name
<Enclosed attachments>
Loan Modification Press Release
Bank of America Announces Nationwide Homeownership Retention
Program for Countrywide Customers
Nearly 400,000 Countrywide Borrowers Could Benefit After Program Launches December 1
CALABASAS, CA - Bank of America today announced the creation of a proactive home retention program that will systematically modify troubled mortgages with up to $8.4 billion in interest rate and principal reductions for nearly 400,000 Countrywide Financial Corporation customers nationwide.
The program was developed together with state Attorneys General and is designed to achieve affordable and sustainable mortgage payments for borrowers who financed their homes with subprime loans or pay option adjustable rate mortgages serviced by Countrywide and originated prior to December 31, 2007. Bank of America acquired Countrywide July 1, 2008.
“We are confident that together with the Attorneys General we have developed a comprehensive program that provides more solutions than ever before to assist troubled borrowers and put them back on the path to sustained home ownership,” said Barbara Desoer, president, Bank of America Mortgage, Home Equity and Insurance Services. “Since acquiring Countrywide in July, we have committed significant resources and developed innovative programs to help as many Countrywide customers as possible stay in their homes.”
Countrywide mortgage servicing personnel will be equipped to serve eligible borrowers with new program elements by December 1, 2008 and will then begin proactive outreach to eligible customers. Foreclosure sales will not be initiated or advanced for borrowers likely to qualify until Countrywide has made an affirmative decision on the borrower’s eligibility.
The centerpiece of the program is a proactive loan modification process to provide relief to eligible borrowers who are seriously delinquent or are likely to become seriously delinquent as a result of loan features, such as rate resets or payment recasts.
Various options will be considered for eligible customers to ensure modifications are affordable and sustainable. First-year payments of principal, interest, taxes and insurance will be targeted to equate to 34 percent of the borrower’s income. Modified loans feature limited step-rate interest rate adjustments to ensure annual principal and interest payments increase at levels with minimal risk of payment shock. Modification options include, among others:
- FHA refinancing under the HOPE for Homeowners Program;
- Interest rate reductions, which may be granted automatically through streamlined processing; and
- Principal reductions on Pay Option adjustable rate mortgages that restore lost equity for certain borrowers.
The program applies to eligible mortgage loan customers serviced by Countrywide and who occupy the home as their primary residence. Under the national program, Countrywide will not charge eligible borrowers loan modification fees, and Countrywide will waive prepayment penalties for subprime and pay option ARM loans that it or its affiliates own. Some loan modifications will be subject to compliance with servicing contracts and some will require investor approval.
“Now more than ever homeowners and home buyers are looking to Bank of America as the lender they trust and as a leader that can renew America’s confidence in home ownership,” said Desoer. “Combined with our strong track record in responsible lending and previously announced lending practices commitments, this bold new program makes it clear that Bank of America is committed to be the leader in responsible mortgage lending practices.”
As part of agreements to resolve outstanding claims against Countrywide by certain states, borrowers in participating states will additionally be eligible to access their share of:
- A Foreclosure Relief Program of $150 million on a nationwide basis for payment to eligible Countrywide servicing customers who suffered foreclosure or are currently at serious risk of foreclosure having made only minimal payments since the time their mortgages were originated by Countrywide; and
- An additional program, projected to make payments up to $70 million to support customers with loans serviced by Countrywide who face imminent foreclosure, providing financial assistance with their transition from home ownership.
As part of the state agreements, Countrywide is further committing to eligible borrowers in participating states that it will waive late fees associated with a borrower’s default in finalizing modifications under the program.
In addition, states that have not yet become participants in Bank of America’s program will be provided an opportunity to do so, which would enable their residents to become eligible for these benefits.
“Our program represents principal and interest reductions over time to borrowers on loans Countrywide owns and on loans Countrywide services on behalf of investors,” said Joe Price, Bank of America Chief Financial Officer. “By taking projected foreclosure losses and instead directing those funds into these proactive foreclosure prevention efforts, we create a solution in the best interests of both our customers and the investors whose loans and securities we service. Of the eligible loans, about 12 percent are now held by Bank of America. The cost of restructuring these loans is within the range of losses we estimated when we acquired Countrywide.”
Bank of America is one of the world’s largest financial institutions, serving individual consumers, small and middle market businesses and large corporations with a full range of banking, investing, asset management and other financial and risk-management products and services. The company provides unmatched convenience in the United States, serving more than 59 million consumer and small business relationships with more than 6,100 retail banking offices, more than 18,500 ATMs and award-winning online banking with more than 25 million active users. Bank of America offers industry leading support to more than 4 million small business owners through a suite of innovative, easy-to-use online products and services. The company serves clients in more than 150 countries and has relationships with 99 percent of the U.S. Fortune 500 companies and 83 percent of the Fortune Global 500. Bank of America Corporation stock (NYSE: BAC) is a component of the Dow Jones Industrial Average and is listed on the New York Stock Exchange.
Countrywide Customer Contact: Homeownership Retention Program not available until Dec. 1. Countrywide will begin its proactive outreach to eligible borrowers on December 1, 2008.
Homeownership Retention Division: 800.669.6650
General Customer Service: 800.669.6607
Media Contact: Dan Frahm, 800.796.8448
Investor Contact: Kevin Stitt, 704.386.5567, or Lee McEntire, 704.388.6780
What is a Loan Modification?
What is a Loan Modification?
I am sure that many of you have been hearing more and more about Loan Modifications, also known as Mortgage Modifications. I have been receiving many inquires about them. So let me share with you what a Loan Modification is and how it may apply to you or someone you know.
A loan modification means simply that your current lender modifies or “changes” the terms of your existing loan in order to lower your monthly payments. This can be accomplished through a variety of ways such as reducing your current interest rate, extending the term of your loan, reducing your principal balance, or a combination of these factors. In the past, lenders would only modify your current mortgage if you were delinquent. Well, times have changed. Delinquency is no longer a factor. However, in the event of late payments lenders may forgive or postpone repayment of delinquent payments – sometimes without adding interest or penalties!
With the recent and ongoing credit crisis that has led to a weakening economy and a declining housing market, banks are very anxious to prevent more homeowners from going into foreclosure. Their rationale is fairly simple: if lenders reduce the homeowner’s payments today, the homeowner can remain in their home. This frees up additional lending capital rather than tying it up in a lengthy and expensive foreclosure process.
Who is a good candidate for a Loan Modification?
- Someone who has a mortgage with unfavorable terms that has become too much to afford
- Someone who owes more on their home than its current value
- Someone who is having financial difficulty due to a change in their job or financial situation
- Someone who is delinquent or is going to become delinquent on their current mortgage
- And many more
Debt Settlement is similar to 700B Debt Bail Out
Debt Settlement is very similar to the Federal Debt Bailout bill on a smaller scale. The US government is removing the “toxic” debt that is on the books of the major banks. Debt Settlement removes your “toxic” personal debt so you can start new and improve your cash flow situation.
FTC To Host Workshop On Debt Settlement Industry
The Federal Trade Commission staff will hold a workshop on September 25, 2008, to explore the growth of the for-profit debt settlement industry and to analyze how this model is affecting consumers and businesses. The event is free and open to the public; pre-registration is not required.
WHEN: September 25, 2008, 8:30 a.m. to 5 p.m.
WHERE: FTC’s Satellite Building Conference Center, 601 New Jersey Avenue, N.W., Washington, DC. A valid photo identification is required. A live webcast will be available at www.ftc.gov.
AGENDA: Topics will include regulation and legal developments, advertising and marketing of debt relief services, role of third-party lead generators and other service providers, the history and development of the industry, and consumer education.
The Federal Trade Commission works for consumers to prevent fraudulent, deceptive, and unfair business practices and to provide information to help spot, stop, and avoid them. To file a complaint in English or Spanish, visit the FTC’s online Complaint Assistant or call 1-877-FTC-HELP (1-877-382-4357). The FTC enters complaints into Consumer Sentinel, a secure, online database available to more than 1,500 civil and criminal law enforcement agencies in the U.S. and abroad. The FTC’s Web site provides free information on a variety of consumer topics.
MEDIA CONTACT:
Office of Public Affairs
202-326-2180
Debt Solution
What is the difference between good and bad debt?
You may heard credit specialists on cable and radio speak about “ good debt ” and how it compares to bad debt. You are taught to pay off your bad debts first due to the fact that they normally are tied to high APRs and aren’t backed by an item of value. It’s good to first understand the distinction between good and bad debt when you’re mulling over a debt reduction plan.
All About Good Debt
- What’s Good Debt? A good debt is any debt that will actually raise your assets. The rule to go by is: if obtaining the debt might help you build your assets, then it’s considered a good debt. Good debt will produce a profit for you through an escalation in value or business transactions. Arguably, a good debt may also be a debt that leads to an increased overall quality of life. Also, a debt that’s tax deductible, which means that having it decreases your tax due each year, can most certainly be thought of a good debt.
- Which Accounts are Good Debts The best example of a good debt would be a mortgage debt. Assuming that it’s associated with a home or portion of terrain that’s increasing in price, a house debt produces a cash flow through the equity that’s built up in the house. A further example of good debt would be a student note, since it’s made for an education and could produce higher income. A new business debt might also be considered a good debt if the business becomes profitable and leads to a regular residual salary.
Why Do We Call Certain Debt Bad Debt?
- What’s the Easiest Way to Decide If I’m Dealing With Bad Debt? Simply put, if the debt does not produce added value for you and your personal stock, then it’s bad. A car debt is a bad debt since automobiles decrease in value. The rule to follow is that once you take a new vehicle away from the dealership you leave behind 20 percent in value, and that loss of value carries on right up until the vehicle is paid in full. The most widespread demonstration of bad debt would be those credit card bills. Credit card debt is the most dangerous form of bad debt for three major reasons:
1) it’s not associated with items of value (unless you look at the jacket you got in 1997 an item of value!),
2) it normally is established with an expensive rate, and
3) it’s a rotating debt that can continue for the duration of your life.
How To Eliminate My Bad Debt?
You have many choices if you are searching for a debt solution. Certain individuals look to going bankrupt, which can get rid of your credit card bills but cause you to be denied by potential creditors, jobs, and other companies for up to a decade. A number of debtors set up their own debt reduction plans, and others have found out about the advantages of plans proposed by debt settlement companies. No matter what approach you choose, your bad debt should in every case be the main concern since it is more expensive and actually robs value from your net worth.
What You Need to Know About Debt Settlement Programs
Millions of Americans are currently struggling with bad debt, including credit cards and other unsecured loans. The climate calls for unique debt solutions that can help indebted individuals climb out of sink holes of bad debt quickly and efficiently. One such solution is offered by debt settlement companies. They offer debt relief programs that can reduce your total debt by up to 50% and help you get back on track with your payments if you have fallen behind.
Okay, So How Does it Work Exactly?
Step 1. You will fill out an online debt consolidation questionnaire that gives the debt relief company the information they need to determine how to proceed with your debt negotiation process. The online process saves you the embarrassment and time of having to go back and forth with a human counselor over the phone with a detailed history of your debts and obligations.
Step 2. The debt relief company will then set up a trust account, similar to an escrow account, in your name with a reputable debt relief attorney in your area. From that point forward, you will make your regular debt payments to this trust account.
Step 3. Meanwhile, skilled debt negotiation attorneys will be working on your behalf to come to an agreement with your creditors. Debt settlement companies can reduce your debt by up to 50% off the bat. They will prioritize your debts based on the interest rate (highest first) and whether it is a revolving or installment account.
Step 4. Once your trust account reaches a certain level, the debt relief attorney who is working on your behalf will settle with your first creditor and scratch that debt off of your list. You will continue to pay into your trust account until all of your debts are settled.
Your Requirements and Responsibilities
- You have to stop using your credit card accounts. Your credit card debts will never go away if you continue to use them. You simply cannot succeed with a debt relief program if you plan to keep making charges on those accounts.
- The interest rates on your unsecured debts generally have to be over 10% to qualify for debt settlement programs.
- Continue making your agreed upon monthly payment to your trust account each month in full. The quicker your trust account reaches the balance where a creditor can be paid off, the quicker you will be out of debt.
Important Considerations
Ask Yourself These Questions. When you are looking into debt settlement programs, you have to first ask yourself exactly what you are trying to accomplish.
- Are you looking to reduce your monthly payments?
- Are you trying to get rid of your debt more quickly?
- Are you looking for a debt solution because you have fallen behind and are tired of creditor calls?
It may be a combination of all three, but one of these questions applies to your situation more than the others. When you are truthful with yourself and figure out what your main motivation is for seeking debt reduction strategies, debt settlement companies can design a solution for you that is tailored for your exact situation.
Fees. All of the fees for your participation in a debt relief program are already built into the agreed upon low monthly payment that you and your debt negotiation attorney have decided on. There are no additional costs.
Your Credit Rating. A common question from those who are looking into debt relief programs is “What will happen to my credit report?” When you stop paying your debt payments to your creditors and begin to make your payments to a trust account instead, of course this is going to cause your creditors to raise an eyebrow. You may experience a temporary increase in creditor calls. You will inform them that you are now working with a debt settlement law firm and direct them to the attorney’s office. After your creditors have been duly notified that you are on a debt relief program, most consumer protection laws state that they should no longer be harassing you. Your credit accounts will show as “not current” on your credit report until the accounts are settled in full. The good news is that after a while your credit rating may actually go up after your debts are paid off since your debt percentages will be reduced. Compared to the crippling effect of a bankruptcy on the average consumer’s credit score (10 years of bad credit), working with debt settlement companies is a mostly preferred alternative.
How would it feel to have zero debt again? You may have forgotten what that is like after years, even decades of debt payments. Once you have made the conscious decision that you are no longer going to be enslaved by outrageous balances of unsecured debt, your debt solution is waiting.