The most common complaints that we hear from people trying to qualify for a loan modification is that the banks often lose their financial documents and that they can’t get anyone from the bank to focus on their file. Each time they call, they get a different person, and the bank employees give them contradictory information. It seems that the bank’s the left hand does not know what its right hand is doing and the borrower is suffering because of it.
Mediation is a process whereby a judge orders the banks and borrowers and their respective lawyers to meet with a neutral mediator. The mediator is not a judge. The mediator’s role is to facilitate a conversation between the lender and borrower so that they can reach an agreement about the terms of a loan modification. Anything can be discussed at mediation – reducing the interest rate, extending the term of the loan, deferring part of the principal until the end of the loan, or even outright principal reduction. There is no guarantee that mediation will result in a settlement of the case, but it is the best last chance for homeowners who to save their homes.
Our firm adds value to a client going to modification in three ways. First, we are familiar with all of the government programs and regulations used to modify mortgages. So we know what deals are available for you. Second, we know how to help you prepare your documents in such a way that you will have the best chance for a modification. Finally, once the loan modification package is ready, we send it to the bank’s lawyers – not to the bank. A bank lawyer has a fiduciary duty to pass the loss mitigation document to his/her client. We keep records of the date and time that we sent the documents so that if the bank claims that they did not get them, we can return to court and ask the judge for sanctions.
Not everyone qualifies for a loan modification, but a mediation is the best, last chance to help those people who want to save their homes, and we make full use of it in our firm.
Remember: If you don’t move on your foreclosure, your foreclosure could end up moving you!