Frequently Asked Questions 

1. How does it Work?

2. What is loan modification?

3. What is a loan workout?

4. What is Predatory Lending?

5. What is Loan Forbearance?

6. What is a Deed in Lieu of Foreclosure?

7. What is a Short Sale?

8. I am worried about Foreclosure.  How can AHS help?

9. What if you are in foreclosure, have a note to sell, or have missed payments?

10. What are Hardships, and do I qualify for any?

11. Can I file the Loan Modification paperwork by myself?

12. How do I get started with the process?

How does it Work? 

Our experienced loan modification team will work with you to create a detailed financial analysis and hardship package to show your Lender why it is in their best interest to agree to the new terms of your existing loan. We will negotiate directly with your Lender on your behalf, and keep in close contact with them until an agreement has been reached. We have been very successful in helping homeowners like you to obtain a more affordable mortgage payment, resolving back owed interest, and ensuring a comfortable future in your home.

What is a loan modification?

A Loan Modification will change your existing mortgage note and give you a fresh new start in managing your home. These changes can be in your interest rate, length (term) of the loan, late charges can be waived or added to principle, change from ARM mortgage to a fixed rate. There are several other possibilities and modifications that can be made. But it is on a case by case basis. A large number of clients will find themselves using a Loan Modification Plan to stop foreclosure. If you can currently make your regular payment, but you can't catch up with the past due amount, we will negotiate with your lender to fold any past-due amounts, including interest and escrow, into the unpaid principal balance. This new amount will be re-amortized over a new period of time.

We have had great success in dealing with lenders, and have already dealt with all of the major mortgage companies and many different banks we have positive experiences with nearly every lender in the industry. We want to keep you in your home, and we will find an acceptable middle ground between you and your lender.

What is a loan workout?

A loan workout is just another term for a loan modification. However it is more a broad term and can be applied to several other loss mitigation techniques, such as negotiating a short sale and a deed in lieu of foreclosure.

What is Predatory Lending?

I am often asked, "What is Predatory Lending?" this term can apply to all aspects of the mortgage industry and refers to the practice whereby a creditor put a borrower into a loan that the borrower will probably not be able to repay. Federal laws like the Truth In Lending Act ("TILA") and the Real Estate Settlement Procedures Act ("RESPA"), as well as many state laws, require that creditors disclose certain terms of loans to borrowers, and when those terms are not disclosed or are inaccurately disclosed these laws provide sever monetary penalties against these creditors. Predatory Lending tactics like the classic bait and switch involve being sold on the phone by a smooth talking loan officer who pitches you a great rate. Things move quickly and when you go to sign your loan documents with a notary, the great rate is not so great anymore. Elder abuse is really common because retirees often have a large amount of equity in their homes; they are prime targets for greedy and crooked creditors. We have seen mortgage sellers cold call elderly homeowners and then scam them into a loan that they do not need, could not afford, and which provided the seller with an incredibly large commission. 

Both federal and state law prohibit the mortgage industry from providing different loan terms to people based on race, sex, ethnicity, or other protected classes. Such a transaction may be subject to a cause of action under the Unruh Civil Rights Act or other law. Equity theft also called equity stripping refers to the situation whereby the same creditor refinances the same property with the same borrower multiple times and uses the equity in the borrower's property. Some violations of the Truth in Lending Act are so easily spotted that it takes an experienced mortgage attorney just a few minutes to uncover them. Other predatory lending violations are harder to find and require recalculations of the loan figures to discover. We are often able to meet with a potential client, review the loan documents, and discuss how the loan was done. We are usually able to determine whether there was a violation within 30 minutes and then advise the borrower whether he or she has a case worth pursuing.

What is Loan Forbearance?

Forbearance means you are allowed to delay or reduce payments for a short period, with the understanding that another option will be used at the close of that time to bring your account to a current status. Your lender, if in agreement, will then temporarily cease legal action. Lenders may agree to combine your Forbearance with Reinstatement or a Repayment plan if you know you can provide the needed funds to bring your account current by a specific date. This plan works for people who have just experienced a sudden living expense increase or income loss. We will negotiate with your lender to explain this hardship and hopefully get you the time you need to readjust your spending and recover financially.

What is a Deed in Lieu of Foreclosure?

The deed in lieu of foreclosure offers several advantages to both the borrower and the lender. The principle advantage to the borrower that it immediately releases him/her from most or all of the personal indebtedness associated with the defaulted loan. The borrower also avoids the public notoriety of a foreclosure proceeding and may receive more generous terms than he or she would in a formal foreclosure. If you have been unable to make your monthly mortgage payments and have also been unsuccessful in trying to
sell your home at the market value, this form of foreclosure may be what is necessary to get you back on track. 

This procedure allows you to transfer your property voluntarily to your lender or Mortgage Company and your debt or deficiency is often forgiven. This will not save your home, but it will help you with your chances of getting another mortgage loan in the future and it will help you avoid the lengthy legal process of foreclosure. Although it is a negative strike on your credit rating, it is less harmful than a mortgage foreclosure. Typically your Mortgage Company will require that your home has been listed with a Real Estate Agent for at least 30 days and there are no other liens on the property for them to approve you. Some Companies may also require that the property be vacant, an interior appraisal of the property and a minimum of 60 days prior to a Foreclosure sale. Let us help you with filing the necessary paperwork and negotiation with your Mortgage Company.

What is a Short Sale?

A short sale is when a lender accepts a discount on a mortgage to avoid a possible foreclosure auction or bankruptcy. Instead of buying from a seller, you are purchasing the property directly from the lender for a discount. For example: homeowner, who is facing foreclosure, has an existing first mortgage of $400,000. you wire an offer to the lender for $320,000, which is accepted as full payment for the loan. This is a short sale. Why are they willing to take such a discount? First of all, banks do not like excess inventory and bad loans on their books; therefore, if they see an opportunity where they can sell the property without huge loss, they will do it. 

Secondly, lenders know they could lose a lot more money if the property goes to auction. There are so many fees involved if the property goes to auction, that they would be better off taking the discount before hand and be finished with the headache of it all.

Your lender will use the proceeds from the sale to pay off the mortgage and the remaining balance will be negotiated or perhaps even forgiven. This avenue is open for homeowners who are willing to part with their property but keep their credit rating with the least amount of negative reports. 

Negotiating a Short Sale with the lender is a difficult process, generally because it is very hard to find the bank officer who has the authority to negotiate the loan discounts. Much like getting your phone bill corrected, you can expect the process to involve a lot of waiting on hold and being bounced around an intricate maze of automated voice mail systems. Once you get in touch with the right person, then the hard work and the negotiating can begin.

I am worried about foreclosure.  How can AHS help?

If you feel like you may be in danger of facing foreclosure, the time to call is now! America's Housing Solutions modifications service includes loss mitigation techniques that will work with you to find a solution for your individual situation. The sooner you call, the sooner you can regain your peace of mind. Remember, you're not alone. Millions of people across the United States have trouble with their mortgage due to the current economic struggles.
We Are Here For You!

We are available for clients and non-clients alike, so if you have comments, questions, suggestions, or would like additional information about our comprehensive services, please contact us in the manner that is most convenient for you. America's Housing Solutions, LLC is a trusted firm and we pride ourselves on customer service.

What if you are in foreclosure, have a note to sell, or have missed payments?

If you are in foreclosure, or are nearing it, you need to call us now. We have a number of loss mitigation techniques that we will use to find you a solution. You may lose your home within 90 days of a defaulted payment- but there are ways to delay the situation, as no one wants a family to lose their home. We can file paperwork to help you out- whether you are in default, are nearing default, or even if you have a Notice of Default (also known as a foreclosure notice). But you must contact us as soon as possible- so we can get started on saving your house.

What are Hardships, and do I qualify for any?

There are so many economic hardships in the news today. Whether you have poor stock performance, or were a victim of a predatory lender, or simply miscalculated your payments. There are millions of people across the United States that are having trouble with their mortgage; and most qualify for a Loan Modification. Here are some hardships that lenders consider during the loan workout process: 

• Adjustable Rate Mortgage Reset- Payment

• Illness 

• Loss of Job 

• Reduced Income 

• Failed Business 

• Job Relocation 

• Death of Spouse or C0-Borrower 

• Death 

• Incarceration 

• Divorce 

• Marital Separation 

• Military Duty 

• Reduced Income 

• Medical Bills 

Can I file the Loan Modification paperwork by myself?

You can negotiate with your mortgage company without a professional's help. It is similar to when people act as their own legal representation- some people are knowledgeable enough about mortgage delinquency to file their own paperwork, and request their own terms when negotiating with their mortgage company. Of course, those people do not need our help- and we would prefer to help those that do need our help.

Phrases like "partial claim" and "special forbearance" are just two of many that you will need to know to file your own modification paperwork. Even if you do file the paperwork on your own, you may not file it correctly; or worse, the banks may not show you the respect that they give to industry leaders like AHS. We are here to help, and to negotiate the best possible loan modification terms that the banks will agree too.

How do I get started with the process?

Fill out an online application today and one of our professional modification agents will get back to you within one business day. Please note that the process may take some time- so if you are struggling, or if you have missed payments, you should call us as soon as you can. If you are significantly late on your payments, or if a Notice of Default has been filed against you, we can file emergency paperwork on your behalf.