A Step By Step Loan Modification San Diego Attorney Procedure
San Diego Attorney Based loan Modification Process
You can represent yourself in a court of law, if the trial is of a serious nature it is best to have a professional represent your interests. By utilizing a 3rd party you are accessing their expertise in a loan modification San Diego program.
The first document that needs to be sent to the lender is the authorization form. This form notifies the lender that an Attorney is working on your behalf. After the authorization is acknowledged, the loan modification package is ready to be submitted. Each and every package that an attorney-backed company sends will be accompanied with a demand letter. This letter is demanding action on the file within 60 days. Included in the package: Mortgage statement, insurance declarations page, 30 days pay stubs, W2s, full tax returns, bank statements, other supporting financial documentation. Last but certainly not least is the hardship letter. This is the borrower’s one chance to address the lender and tell their side of the story. It is important for you the client to pour out your heart and let whoever is reading your hardship letter can feel the emotional pain to coincide with the hard facts that the attorney is providing.
Level 1
Once the package is received and uploaded into their internal system, it will go to initial review (Level 1). Level 1 is generally a front line employee in an underwriting department. They are looking for major red flags that would immediately disqualify you for a loan modification San Diego homeowners program. Low fixed rates or substantial monthly surplus/deficit are two of the reasons you may be disqualified. If you are using a quality loan modification processing company, you should never have a mortgage modification denied at this stage. Most companies would catch a major red flag prior to submission. Generally, those who don’t know what they are doing get a level 1 denial. Ultimately it is a waste of everyone’s time, most importantly the borrower.
Level 2
After Level 1 review the file moves to Level 2. Level 2 is generally someone who has the authority to sign-off on a loan modification San Diego agreement. This is sometimes a management or supervisor level position. The level 2 reviewer is now ‘underwriting’the file. They are going over financials and supporting documentationto ensure that they match up with the borrower’s and processing company’s statements. Often, they will come back to the processing company asking for clarification or additional information. This step is the longest of all the steps as the lender wants to ensure that if they give you a loan modification program that you the borrower will in fact be able to handle the new terms and that the lender is not giving up too much ground on the loan modification San Diego agreement. After the review process is over, it is time to be assigned to a negotiator.
Level 3- The Negotiation Level
When the level 2 reviewer assigns the file to a negotiator, the client has in fact been approved for a modification loan agreement. Now, we are to find out the terms to be set. Once it is with a negotiator it can take some time before an offer will come. The negotiation is the third level and the end of the process. Many negotiators will take the review from level two and crunch the numbers to find a reasonable solution that protects the lender but also helps the borrower. If there is an investor on the loan, the negotiator will also go to the investor for a sign off on final terms so that an offer can be made. At this stage is where the attorney can use their negotiating skills and tactics to achieve the best results for you the client. When the negotiator decides on the loan modification San Diego agreement offer, the offer will be sent directly to you the client. It is a very exciting time, but the processing company needs to review the offer to make sure it makes sense for all parties. It is possible to go back and re-negotiate a new offer. Once the offer is signed and return, the home loan modification agreement is complete. However, there are instances that the borrower is not happy with the terms. Most companies will try to renegotiate but this will drag out the process and/or make the first offer null and void. Most times, the offer is the ‘first and final’ offer. So you want to make sure you negotiate the best deal the first time.
One final note There are, of course, many different ways to approach a loan modification San Diego loan agreement. Some believe in the litigation route and others believe in the hardship route. Both have their pluses and minuses. In the end, both will have to provide a compelling argument and a full and complete package to procure a loan modification for their clients.
