Just because you are an attorney does not mean you will do the right thing! I’ve reviewed many attorney loan modification contracts and the documents often lean toward the attorney rather than securing the appropriate help for the borrower.

I agree that you may stand a better chance of reaching someone who may not take advantage of the homeowner; however it does not guarantee you that they will do a better job at obtaining a loan modification on your behalf. One would think that after all of the time and money attorneys have invested in their careers they have much more to lose. Let reason enter the picture for a moment, if this not their primary line of business how could they do a good job on your behalf. I am not saying that all attorney cannot do loan modifications, many have done so quite successfully.

I have seen many attorneys use this angle as a bait and switch to lure the homeowner to other services, namely debt consolidation or bankruptcy and even a shortsale. I have also observed people sign over real estate investment properties into a trust as payment to do a modification on the borrower’s primary residence. If the attorney can identify predatory lending, they usually instruct the borrower to hold back payment. Ultimately the trust ends up owning the property, and guess who receives the benefits of the trusts; the law firms.

If the homeowner truly wants to stay in their home, the first step along the path is to investigate a loan modification before a shortsale or bankruptcy! If you are going to move forward with an attorney my recommendation is to identify a real estate attorney. They have more common knowledge of the components involving a mortgage negotiation. Further, new regulations also state that attorneys can only participate in this discussion if it is within their scope of business, other wise they should be licensed as a mortgage broker.

I happen to feel that a mortgage professional is in a better position to understand the various components better than most attorneys’. If you engage law firm, I think it would be prudent to ask what has been their experience to mortgage transactions.

I have taken classes at the National Association of Mortgage Processors and the bottom-line is no one can guarantee a homeowner a loan modification! Not an attorney, mortgage broker, loan modification specialist – NO ONE! This is ultimately the decision of the lender and their investors.

What they can do is help you understand what documents you need to gather, what the process is and to keep the homeowner informed every step of the way.

In order to assemble the loan modification proposal, you need common knowledge of the mortgage business.

For starters, gather the following documents:

- 2 Years of Tax Returns
- 2 Years of W2s
- 1-month of paystubs
- 3 Months of Bank Statements
- Homeowners Insurance
- Property Tax Bills
- Homeowner Dues or Condo Fees
- Monthly Utilities
- Monthly Credit Card Expenses
- Any other monthly expenses

If you have assets, the lender will also want to know what those are also. The most common are second homes or investment properties. The banks want to know that if want to stay in your primary home that you would sell off other assets to do so. The only time it makes sense to retain a second home or investment property is if it produces positive monthly income. That means you have money you can use in other areas once all of the month expenses for that property are paid. If retaining a second home is important to you it should be cash flow positive. Before you shortsale a second home or investment property you should analyze whether there will be a deficiency judgment on the balance of the loan and whether you have an exculpatory clause in your mortgage note.

An exculpatory clause is what lets the homeowner off the hook for any unpaid balances. If is not in your note, don’t worry most of us don’t have them. You should be certain however, that you have language that protects you should there be a balance left over after the shortsale, deed-in-lieu of foreclosure or pre-foreclosure sale.

If you have any questions regarding these matters, 1st-Trust.Net welcomes the opportunity to review this matter with you at no cost.

Thank you for your consideration.

Mr. Sharaf
loanmodification@1st-trust.net

1,495.00 we payed april 1st he robed us i am disable i only get 1,200.00 a month that hurt us a lot please some one stop them.

i have worked hard all my life when will this stop!