Things are getting nastier, that’s for sure. It’s getting harder to get “out-of-line” and move to the front of the line for a decent loan modification. Over 10,000 homeowners are submitting loan mod applications each day…and fewer than 10% are getting good modifications. You must be in default and you must flex the muscle of “informed suspicion” of predatory lending practices in order to be successful now.
Use this checklist to help you gather your thoughts about whether/not you were a victim of predatory lending. Watch this site and participate in our telecons, etc. to learn about how to conduct your own audit of your loan to identify violations.
60 Minute Loan Modification……………..Legal Loan Mod Checklist
- Is the loan a Adjustable-rate, Neg-Amortizing, Interest-only, Pick-a-Pay…or does the loan have a balloon payment? Explain.
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Did you get the loan as an original purchase or as a refinance…and, is it a 1st , 2nd or HELOC?
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Is the home your primary residence?
- How much is the current interest rate? What was the original rate?
- What was your FICO score at the time of the loan?
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Did you get the loan through a broker or directly from the bank?
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Did you get the loan between 1/1/2003 and 1/1/2007? What was the exact date of the loan?
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How much was your down payment?
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Were Points charged? How many?
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Are you over 65, disabled or a vet?
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How much was the original loan amount?
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Were there any prepayment penalties?
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Do you recall anything about getting the loan that made you feel intimidated, unsure or uneasy about any part of the deal?
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Is the original loan originator still in business? How about the original lender?
- Was/is this a sub-prime loan (is the rate more than 3% points higher than the best)?
