How Does It Work?
Most of you reading this fall into one of three categories: (i) you haven’t yet applied to have your loan modified, (ii) the bank rejected your application, or (iii) you submitted the application and the bank is giving you the runaround and you need help.
The first step in advancing your application is calling us. Many people ask initial questions over the phone and then set up an initial, face-to-face meeting. During that consultation, we review your loan modification application (if any), review your finances, and then give you our professional assessment as to whether we believe your modification will be successful. If we agree to accept you as a client, we provide a more extensive analysis and document review.
We closely analyze the documents that the banks examine when determining your loan modification eligibility. These documents include: financial documents (pay stubs, bank statements, income, and expenses), delinquency status, insurance policies, real estate taxes and debt to income ratio. Based on your finances, we determine what your targeted monthly loan amount should be and then focus our efforts toward hitting that target.
We work the numbers and correctly prepare your application (or fix any errors on a previously submitted application) and present your application in the most advantageous form to your bank.
Because the bank employees are not trained underwriters, but inexperienced loss mitigation department staff, they confuse their own procedures. They request supporting documents in piece-meal fashion. By the time you submit the supporting documents, the bank alleges that the earlier application has “expired” and you need to start all over again. Other times, the inexperienced bank staff misread the application and wrongly denies the application for a variety of reasons. This cat and mouse game can be frustrating.
At Monteiro & Fishman LLP, we break the cycle and end this game. We know what the bank wants and needs from the beginning and streamline the process to avoid the typical pitfalls. Recognizing the bank’s staff as obstacles that need to be overcome, we make it easy for them from the beginning by accurately, completely and timely providing all necessary documents.
Once the application is submitted, the banks may hold up your application without even telling you why. We consistently follow up with the banks on behalf of our clients so your files don’t get “lost” or “misplaced,” and to ensure there are no outstanding phantom document requests. We keep the banks on their toes to ensure they are working for you, not against you.
Once the application is accepted, the bank will put you in a “trial” period. This period will allow you to pay a lowered, “modified” loan amount, and usually lasts for three months. After you successfully complete the trial period and timely make your mortgage payments, the bank should permanently modify your loan to the new, reduced amount. Generally this amount will be substantially similar to the trial payments and you will have saved hundreds of thousands of dollars over the life of your loan. Congratulations! You broke the cycle, saved your home, and now have payments that you can afford!