“Were You Dumb When Stating Your Income”

There is a lot of confusion out there about loan modification and who is going to do the best job…it isn’t a shop but a law firm where you enter into a specific attorney client relationship not a shop that claims to have attorneys they work with. Some prosecutors are now pursuing borrowers as you can read in this article.

For one, a broker shop can do no distressed borrower any good with the current situation. As you’ll read in the attached article, some prosecutors will be going after borrowers for participating in fraud by overstating their true income. What this does is make your submission to the lender vulnerable unless you have the attorney/client privilege over your submission…hence the modification process should be a legal maneuver not Joe the Modifier who may be a Pirate that has no right to take an advance fee.

If you must send your clients to a friend who is a broker – make sure they are one of the 18 firms listed on the Department of Real Estate’s website as approved to take an advance fee as many are doing it illegally and offer no real value since they can’t prevent the documents from being used against the borrower because there is no such thing as broker/client privilege.

http://www.dre.ca.gov/mlb_adv_fees_list.html

Not everyone will be a loan modification as we are seeing the abuse of the stated income loan in a gross proportion which makes there no way to modify certain loans unless principal was to be drastically reduced which is not happening although it was announced yesterday there is a plan for some principal reduction by the government to find the market bottom; only time will tell.

LIBOR, COSI, CODI, MTA – these were the indexes of the option arm and then there is the bank’s margin spread which was immense along with the prepayment penalty so the person had to stay locked in for 3 years otherwise they suffer a severe penalty that wipes out most of the equity they would be trying to tap in a refinance or the money they would be trying to save.

If you have a friend, family member or client you care about who is having trouble making their home payments due to a temporary hardship, please have them go to this site and download the questionnaire and fax it in for a FREE evaluation www.foreclosurelegalsolutions.com.

In your service,

James Burns, Esq.