Aus Bildungsstreik 2009
Requesting a mortgage rate reduction could be tricky business. What lender within their right mind would give you more favorable terms on the contract that you already signed off on? The kind of bank that isn't sure that they've their "i's" dotted as well as their "t's" crossed, that is what kind!
Requesting mortgage loan reduction is still not really a simple process. Many times, it takes as long as Six months for the entire tactic to take effect as well as in the interim you can expect to be expected to pay the initial rate. Often, banks won't even work with borrowers until they're delinquent on payments and almost in default. It is just then that the bank knows that the borrower may indeed be losing their house and in fact needs a mortgage rate reduction. There's a better way, though.
Attorney based loan modification companies are the powerhouse of the loan modification industry. Instead of requesting a home loan rate reduction, attorneys flex their muscles just a little and have to have a rate reduction for his or her clients. This really is much more effective.
Several ways in which this is achieved are:
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An attorney sends out a QWR towards the lender. A QWR is a written legal document that in effect subpoena the apply for review. This allows the financial institution know that we mean business. This means the lender must undergo their files and send the lawyer the originally signed documents from closing for forensic auditing. Also, a lawyer will send out a letter of representation towards the borrower's bank letting them know that they've obtained council. Therefore takes away the ability of the bank to use ruthless strategies to pressure the borrower into paying their inflated mortgage payments. Additionally, it removes the right to are accountable to the credit rating agencies as the case is under review. And, in most cases, this can also stop, or at best delay, a foreclosure sale or trustee sale. At this time, any and all correspondence with the bank must be carried out by the borrower's representative (the attorney).
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Throughout the paper filing stage, an attorney generally utilizes a forensic accountant to undergo the original documentation to check out errors and indications of predatory lending. [As a side note, I'll tell you just how within my office, typically we're finding 9 errors per loan.] Once the forensic accountant is done finding errors the lawyer can return to the bank, only this time around they've got a little leverage to negotiate with. The thing is, every error on a file could cause the bank a fine as high as $2000 per occurrence. So, you can see the amount of leverage this brings to the table.
At this point, there is a significantly greater chance that the lender will grant a mortgage rate reduction, and sometimes, totally on second mortgages, even a principal reduction for that borrower.