De Irmãos Franciosi
Asking for a home loan rate reduction can be tricky business. What lender in their right mind will give you better terms on the contract that you simply already signed off on? The kind of bank that isn't certain they have their "i's" dotted and their "t's" crossed, that's what kind!
Requesting mortgage loan reduction continues to be not really a simple process. Many times, it takes so long as 6 months for the whole tactic to take effect and in the interim you can expect to be anticipated to pay for the initial rate. Many times, banks won't even work with borrowers until they are delinquent on payments and almost in default. It is just then the bank knows that the borrower may indeed be losing their house and in fact needs a type of loan reduction. There is a better way, though.
Attorney based loan modification companies are the powerhouse from the loan modification industry. Rather than requesting a mortgage rate reduction, attorneys flex their muscles just a little and have to have a rate reduction for their clients. This is a lot more effective.
A few ways that this is accomplished are:
An attorney sends out a QWR towards the lender. A QWR is really a written legal document that essentially subpoena the file for review. This lets the bank realize that we mean business. This means that the lender must go through their files and send the attorney the originally signed documents from closing for forensic auditing. Also, a lawyer will send out a letter of representation to the borrower's bank letting them realize that they have obtained council. Therefore takes away the ability of the bank to use ruthless techniques to pressure the borrower into paying their inflated mortgage repayments. It also removes the authority to report to the credit rating agencies as the case is under review. And, in most cases, this could also stop, or at least delay, a foreclosure sale or trustee sale. At this time, any and all correspondence using the bank should be done through the borrower's representative (the attorney).
During the paper filing stage, an attorney generally utilizes a forensic accountant to go through the original documentation and look for errors and signs of predatory lending. [As a side note, I'll tell you that in my office, typically we're finding 9 errors per loan.] When the forensic accountant is performed finding errors the attorney can return to the bank, only this time around they've got a little leverage to barter with. The thing is, every error on the file might cause the financial institution a fine of up to $2000 per occurrence. So, you can observe the amount of leverage this has.
At this time, there is a significantly greater chance the lender will grant a mortgage rate reduction, and often, totally on second mortgages, a principal reduction for that borrower.