Demanding a mortgage rate reduction can be arduous business concern. What bank in their right mind would give you more beneficial conditions on a contract that you already agreed to? The kind of bank that Is not confident that they have their “i’s” dotted and their “t’s” crossed, that is what kind! Asking for a loan rate reduction is still not an easy process.
It, on a regular basis, takes a long time as much as six months for the whole process to become in effect and i n the meantime you could anticipate to be called to pay the first rate you agreed to pay. Many times, banks will not even work with borrowers till they’re behind on payments and nearly in default. It’s only then the bank realizes the borrower may indeed be losing their home and in reality calls for a mortgage rate reduction. There’s a better way, though .
Attorney based loan modification companies are the power-house of the loan modification industry. Rather than asking for a mortgage rate reduction, attorneys flex their muscles a little and demand a rate reduction for their clientele. This is far more effective. Some techniques this is accomplished are : * An solicitor sends out a QWR to the bank. A QWR is a written legal document that in effect subpoena the file for reexamination. This lets the bank know that we are serious about this matter. It connotes that the bank must send the attorney the originally signed documents for this property from the date of closing the escrow for forensic substantiating.
Also, a solicitor will send out a letter of representation to the borrower’s bank letting them know that they have got counsel. This in turn eliminates the capability of the bank to use high pressure techniques to pressure the borrower into paying their inflated home loan payments. It also causes a denial of the legal right to report to the credit reporting agencies while the case is under review.
And, usually, this will also stop, or at least delay, a foreclosure sale or trustee sale. At that point, any and all correspondence with the bank must be done through the borrower’s representative ( the attorney ). In the paper filing stage, a solicitor typically uses a forensic accountant to go first through the paperwork and look for mistakes and indications of preditory lending.
Once the forensic accountant is done finding mistakes, the attorney can return to the bank, only this time they will have a tiny leverage so their only option is to agree with the attorney’s terms. You see, each mistake on a file could cause the bank a fine of almost $2000 per occurrence. So, you can see how much leverage this brings to the table. At that point, there’s a seriously greater probability that the bank will grant a mortgage rate reduction, and occasionally, typically on 2nd mortgages, even a principal reduction for the borrower.