Hilsz & Associates



Join Loss Mitigations Social Media Now


Millions of American homeowners are facing the challenge of no longer being able to afford their monthly mortgage and / or credit card payments.  With the prospect of defaulting on their loan or credit line and no longer having the ability to refinance into a more affordable loan, there may be only one solution for you: Loss Mitigations. 

Loss Mitigations is a process whereby the holder of the mortgage (your lender) agrees to a favorable settlement via lender litigation or individual plaintiff litigation.  These changes may incorporate a reduction in your interest rate, term, balance, or accrued late fees. Until recently this was only done for delinquent borrowers; however rising levels of delinquency in their portfolios are forcing lenders to take a look at borrowers in a new category: those in danger of imminent default. Loss Mitigations is often the right choice for borrowers looking to avoid foreclosure.

Clean Start

Loss mitigation may assist borrowers by changing their note affording them the chance to start over. This may also result in any past due or delinquent payments being brought current. This usually includes changes to the interest rate so that payments become more practical for borrowers. Unlike a refinance, you aren't charged typical "closing costs", though there may be some small fees charged by the lender to complete these changes.


From Mortgage and Debt to Credit Improvement to Tax / IRS issues to Bankruptcy " We've got you covered ! "

Lender and Creditor Settlements

When borrowers have financial difficulties and don't have alternative financing options, lenders are usually willing to agree to a structured settlement. We will demonstrate to lenders why it is in their interest to work out a new arrangement with you. Lenders will often be willing to reduce the interest rate, monthly payment amounts, loan term and may in some cases reduce principle as well to allow you to avoid foreclosure.

Do Lenders want to Foreclose on my house? NO !

Lenders are in business to make money, not lose it.  It is very common for lenders to lose money on foreclosures. This is worse if they are forced to claim ownership of a property. In areas hit hardest by foreclosures, lenders lose even more. This is good news for you since lenders and their investors do not want to lose on your loan.

Litigation [click here] to complete prequalified application













LOSS MITIGATIONS LLC HAS IDENTIFIED THE TOP INDUSTRY PROFESSIONALS IN THE PARALEGAL FIELD TO COMBAT LENDER FRAUD AND ADVOCATE THE CONSUMERS RIGHTS. These are the paralegals who previously worked for,represented or have been harmed by these very same banks; the paralegals for the firm know their way around the courthouses better than anyone.

Already, homeowners have filed a litigation case against Bank of America (Countrywide) and additional litigation against JP Morgan Chase / Washington Mutual, One West / Indy Mac, GMAC / Ally, Wells Fargo / Wachovia, Citibank and more to come; which have all defrauded hundreds of thousands of Homeowners. Lawyers have invoked laws and procedures the banks were previously unaware of. Recently the Bank was forced to admit that it had been defrauding the government in foreclosing on mortgages nationwide. 


If you would like more information regarding these stunning developments, or should you wish to be considered for involvement in these individual lender litigation actions, please contact Loss Mitigations LLC at 888-4-LOSS-MIT or email info@lossmitigationsllc.com and a registered, bonded, and insured legal document assistant can help you fill out the forms or schedule a call with attorney. 



1) Fraudulent Concealment

2) Intentional Misrepresentation

3) Negligent Misrepresentation

4) Invasion of Constitutional Rights to Privacy

5) Violation of California Financial Information Privacy Act

6) Violation of California Civil Code § 2923.5

7) Violation of California Civil Code § 1798.82

8) Unfair Competition

For more info email our Paralegal Firm at info@lossmitigationsllc.com for a complimentary consultation with a firm representative. We are currently accepting industry professionals to join our team.

If you would like more information regarding the developments, or should you wish to be schedule an appointment please call Loss Mitigations LLC info@lossmitigationsllc.com





If you would like more information regarding defending your own rights and or the latest developments, or should you wish to be considered for involvement in these lender litigation actions, please contact Loss Mitigations LLC at 888-4-LOSS-MIT or email info@lossmitigationsllc.com 



Loss Mitigations LLC are privileged to ASSIST LAW FIRMS who have clients/homeowners who have been victims of a lending system based on negligent processes.  Lender Litigation against your lender is a complex process that requires the expertise of an experienced legal team.  The following information will help you better understand some key aspects to deciding if litigation is right for you. 

YOU truly MAY have legal cause against your lender and you can join thousands who are fighting back!!!!

Q. How do I know if litigation against my lender is right for me?

  1. As always, you can give us a call at 888-4-LOSS-MIT or email us at info@lossmitigationsllc.com and one of our knowledgeable and friendly representatives will answer any NON LEGAL - GENERAL INFORMATION ONLY you may be referred to an attorney if you are the right client to benefit from representation. The following criteria are general guidelines for a client inclusion in the lender litigation case:
  • Any loan transaction handled by MERS (Over 62 Million Homeowner Qualify)
  • Clients may be current or have already lost their properties
  • Clients whose loans are service by the included list of lenders
  • Loans that were securitized
  • Avoid private party, credit union, or other non-traditional financing (ask about alternative solutions)
  1. Q. Can we help a client who has already lost their home due to foreclosure?
    1. A. YES!  Although we cannot guarantee the return of the property to the homeowner we will seek damages. 
  2. Q. Does a client stop paying their mortgage when involved in the litigation process?
    1. A. NO!  Clients should use best efforts to continue making their mortgage payments unless instructed in writting by counsel.  
  3. Q. What are the case merits that have propelled attorneys forward in filing these cases?
    1. A. The following criteria include:    Claims include:
  • Malfeasance
  • Statutory Violations
  • 3rd Party Beneficiary Claims
  • Phantom Investors and Beneficiaries
  • Unfair Business Practices
    • MERS (Beneficiary processes, rights to foreclose, robo-signing of documents)
    • Proof of Note (security instrument)
    • Proof of Funds (Patriot Act Violations)
  1. Q. What are the potential outcomes of a case like this?
    1. A. There are SEVERAL potential outcomes of a case MAY CONSIST OF THE FOLLOWING HOWEVER EACH CASE VARIES:
  2. Principal loan balance IS NOT ONE OF THE OUTCOMES THAT THE LAW FIRM REPRESENTS TO ITS CLIENTS AS THIS IS A RARE RESULT; however suit will attempt to demand the loan to be reduced to 95 % of current market value. a demand will be made but NOT PROMISED to have an Interest rate reduced to as low as 2.5% fixed for 40 years. a demand will be made but NOT PROMISED to Waive all late fees, penalties and suspend foreclosure sale date (NO GUARANTEE) to resolve compliant.

      • *Pre-trial settlement:  As each client joins an individual litigation action the lender will receive a pre-trial settlement offer.

  1. Q. What is the time frame for a case like this?
    1. A. While it is understood most homeowners would seek a quick resolution it is often in the homeowners’ best interest to extend the time frame  The cases will likely be filed in Superior Court or Federal Court depending on the specific circumstances. The actual time frame for individual suits are undetermined.  There are many compensating factors that could expedite or extend the litigation process.
  2. Q. What is a individual lender litigation case and how does this differ from a class action ?
    1. A. In a class action suit plaintiffs are not identified as individual clients.  They are one collective group.  Additionally their individual causes of action are not identified therefore they must accept the same a uniform class action settlement.  The vast majority of class action settlements result in attorneys collecting the award in attorneys’ fees.
  3. Q. What will the law firm do to help homeowners avoid foreclosure during what may be a lengthy timeframe?
    1. A. Counsel will seek a temporary restraining order, and injunctive relief in each case to attempt to bar lenders from proceeding with foreclosure action. 
    • If the lender or the courts do not offer foreclosure relief there are two options Loss Mitigations LLC will support the clients with:

      Clients may pursue Chapter 13 Bankruptcy

Q. How does this differ from some of the battles we have faced with the "Loan Modification" process?
    1. A. Here are some of the major differences separating a litigation approach versus the traditional loan modification process:
      • The firm is not submitting documentation with the hopes the lender acts in good faith; The firm is issuing pre-litigation demand settlements at terms that tremendously benefit the homeowner.
      • Attorneys directly overseeing case management with attorney updates provided directly from counsel to plaintiffs.
      • No longer subject to lender choice guidelines.  Litigation sites case criteria with lenders in potential violation of lending laws.
  1. Q. If a client is already in the Loss Mitigation process or has already been offered a modification are they still eligible for the litigation process?
    1. A. YES!!  If there is specific language within the documentation counsel may review on an individual basis.
    2. Q. What documentation is needed to sign a client up for the Lender Litigation?
      • Executed Litigation retainer agreement
        • Copy of the Trust Deed
        • Copy of the Mortgage Note
    3. Completed and Signed Client & Property Worksheet

Q. What is the process once clients sign up for the Lender Litigation?

A. Litigation of this size is a complex time consuming process.  The following is a VERY brief outline of the litigation process:

  • *Attorney Retainer Agreement Executed

  • *Copy of the Deed of Trust and Copy of Note submitted with file

  • Settlement Demand and QWR (30 day wait)
  • Seek foreclosure injunction relief
  • Plaintiff update from counsel every 30 days
  • Settlement Offer
  • Case Resolution

For more info email our Paralegal Firm at info@lossmitigationsllc.com for a complimentary consultation with a firm representative. We are currently accepting attorney, CPAs' and industry professionals to join our team.

If you would like more information regarding the developments, or should you wish to be reviewed for qualification or considered for involvement in this action, please call at 877-733-4786 or email us at info@lossmitigationsllc.com

Loss Mitigations Help

HAMP Loan Modifications On The Rise For Bank of America

The country has been hard hit by the current economic crisis and in few industries is it more evident than in the housing market. The number of vacant homes across the country continues to grow as a number of lenders are aggressively foreclosing on thousands of homes in the US.

In an effort to slow the mounting number of foreclosures, the Federal Government's Making Home Affordable Modification Program (HAMP) was introduced to ease the burden on homeowners who are struggling with financial difficulties. The program is designed to restructure home loans, reducing payments and helping these homeowners stay in their homes.

According to information released earlier this month to the public, Bank of America reported an increased number of active loan modifications through HAMP during July of this year with the total number of modifications handled by Bank of America rising from 127,355 in June to 132,763 in July. As one of the top lenders in the US handling the home loan modifications, Bank of America has also reported seeing a rise in the amount of homeowners who applied for home loan modifications but are experiencing difficulty with the loan modification process.

The Treasury Department has held back incentives to Bank of America pending a number of improvements by the lender in its method of completing the modifications and their ability to streamline the process. They also called for the lender to improve its accuracy in calculating borrower income after numerous errors were discovered in this area.

Lenders industry-wide are being urged to reevaluate their procedures in dealing with HAMP loans while homeowners are being cautioned not to put off getting assistance if they are struggling with their finances. Seeking early assistance is the most effective way to avoid foreclosure in many cases.

How Much is the Attorney Fee to Negotiate a Loan Settlement?

We fully understand the seriousness of your financial situation and are completely aware that legal services can get expensive under normal circumstances.  Due to current market conditions and the increasing amount of foreclosures, we have decided to set an affordable fixed price for our legal loan modification service.  Our goal is to save homes from foreclosure and truly help those who are experiencing a financial hardship. Please give us a call for a free consultation and to find out how much it will cost to complete your loan settlement.

A Typical Bank Loan Settlement Process

A loan settlement is a change to the loan terms that is agreed to by and between the lender and the homeowner as a method to avoid costly litigation. The lender will modify the existing loan(s) in order to work with the homeowner because of a hardship. The purpose is to help make the loan(s) more affordable. Usually loan modifications are in the form of a rate reduction and/or fixing the rate for a certain period of time and/or even lowering your principal balance in extreme cases. In the past, loan modifications were only utilized when a borrower was delinquent and suffered a hardship such as a job loss, divorce, or illness. Borrowers can even obtain modifications from their lender to convert to a fixed rate loan from an adjustable rate mortgage.

The earlier the homeowner addresses the issue, the better the chances are of negotiating a lower fixed rate and a payment that is manageable. If the household can afford the home, but not their current mortgage, then they may be eligible for a loan modification. A key factor that is required in every loan modification submission is the existence of some type of a hardship. The hardship can be temporary in nature or permanent, but the borrower must be able to prove the hardship.

The following are a sample of hardships that may get a loan modification request approved:

1. Adjustable Rate Mortgage has re-set (causing an increase in the monthly payments)

2. Illness to yourself or family member

3. Loss of Income or Reduction of Income

4. Loss of Job, changing of jobs

5. Damage to the Property

6. Unable to sell the Property

7. Failed Business

8. Job Relocation

9. Death of a Spouse or a family member

10. Incarceration

11. Divorce or Separation

We know how serious your situation is, and how important your home is. This is why it is very important to work with experts to resolve your situation with the best options available as soon as possible. Please review the steps below:


Please give us a call to start your initial consultation. We need to talk to you to make sure that a Loan Settlement is your best option. 


We will need the following documents:

  • Hardship Letter
  • Most Recent Mortgage Statement
  • Last 4 Bank Statements
  • W2 Forms (2008 & 2007)
  • Tax Returns (2008 & 2007)
  • Income/Expense Financial Statement

Then, we will analyze your information to create a litigation packet to submit to your lender. We will fully review your case before we start negotiations. NOTE: This process could take up to 45 days to be completed depending how fast you provide us with all necessary information.


Our team will submit your financial packet to your bank and will start negotiations. Negotiations will continue until we achieve an acceptable agreement approved by you, the homeowner.


When you settlement request is approved, all final settlement documents will be sent to you to get your approval.

Remember, this will not happen overnight, however, in most cases it takes 30 to 60 days to complete the process. We are here to assist you at all times. 

Most homeowners are confused when it comes to saving their home. You need information on how to save your home fast. Lender Litigation sounds intimidating to the average homeowner but the process is indeed simpler than you might think. By following a prescribed action plan, the process can reach a successful conclusion in a relatively short time. Whether performing a DIY loan modification on your own or get assistance from a professional company, you have a good chance of success if you act on time and follow directions.

Loss Mitigation Options

Loss Mitigation is one of several processes designed to minimize the damage caused by defaulting mortgage loans. Often backed by an attorney or firm, it involves negotiations between the lender and the borrower that binds them to new, more manageable terms. These terms are aimed at preventing foreclosure and lessen the damage incurred by both parties.

Although mortgage loss mitigation has been around for decades, the real estate slowdown has created a larger demand in recent years. Loss mitigation companies now offer a variety of solutions for troubled homeowners. This article discusses two of the most common methods: home loan modification and short sales.

Loan Settlement

A loan settlement is ideal for borrowers who have fallen behind due to a temporary hardship. Common reasons include job loss, illness, death in the family, and military service. The process involves a modification of loan terms that will allow the borrower to get back on track and stop foreclosure.

Qualifications vary from lender to lender, but borrowers generally need to be employed to qualify for a mortgage loan modification. Most lenders also require a hardship letter explaining the circumstances of default, and . Other common requirements bank statements, proof of income, and other financial documents that show if a bank loan modification is the right solution.

In most cases, borrowers will need a loan modification attorney to negotiate the deal. There are many attorney-backed loan modification companies who have established connections with most major lenders. With a good attorney, loan modification applications get processed faster and gain leverage for better loan modification deals.

Short Sale

A short sale is a common alternative for people who don’t qualify for a bank loan modification. Typically, a loan modification company will offer a short sale foreclosure in case the modification doesn’t work out.

A bank short sale allows the borrower to sell the home, usually to a third-party investor, and pay the proceeds to the lender. The lender may accept it as full payment for the loan, even if the selling price falls short of the mortgage balance or the home’s fair market value. In some cases, however, the lender can still file a deficiency suit against the borrower to recover the remaining balance.

Lenders usually allow a pre-foreclosure short sale if the discount is less than the expected costs of foreclosure. To get a better picture of the situation, most of them also require a hardship letter and standard financial documents.

The obvious drawback to a mortgage short sale is that it doesn’t keep borrowers in their homes. Short sale foreclosures are usually meant to minimize credit damage when the only other alternative is foreclosure. While it still adversely affects the borrower’s credit, it’s a less damaging form of foreclosure loss mitigation. Short sales easier to clean up on the record and the borrower can usually take out another loan after one to three years.

Bankruptcy and Loss Mitigation

Declaring bankruptcy can open up new options and increase one’s chances of getting back on track. Because of the large demand for loan loss mitigation, many banks are starting to tighten their policies. Some are offering mortgage loan modifications only to those already in foreclosure, or more commonly, to those who have filed or are about to file for bankruptcy.

This does not mean that bankruptcy is a surefire way to stop foreclosure, nor will it qualify homeowners for mortgage loan modifications. In fact, studies show that 96% of people who file for bankruptcy still end up with a foreclosure, which just doubles the damage.

For borrowers with relatively small debt (typically less than $75,000), a good alternative is to make a consumer proposal. This is an offer to pay the lender a percentage of the debt over a specific period. The process generally takes one to two months, which makes it ideal for borrowers who are already in foreclosure and cannot afford to wait for loan modification help.

The circumstances vary for each borrower, and what may work for one may not be so effective for another. To see if bankruptcy is a viable option, it’s best to consult companies or law firms offering loan modification services. Find a good attorney who can listen to your situation and discuss the effects of bankruptcy on your mortgage

Loan Settlement Frequently Asked Questions

Q: What is a Loan Settlement ? : A Loan Settlement is when the bank allows a change in the terms of your existing mortgage. The purpose of a modification is to significantly lower your monthly payments, for either a temporary or permanent period of time.

Q: Who qualifies for a Loan Settlement ? A: Anyone that is having trouble paying their existing loan may qualify for a loan modification. In today’s housing market banks are willing to work with mortgage holders who are having trouble paying their mortgage. However, homeowners with a high probability of getting a loan settlement are those currently in an adjustable rate mortgage, who have a high interest rate, and/or are experiencing any kind of hardship.

Q: Why will it work for me? A: The government has asked for ALL lending banks to help in the foreclosure epidemic and modify mortgages for all troubled homeowners. Going to your lender with the representation of an Attorney, will make a scary process seem simple.

Q:  What if my credit is bad? A: A Loan Settlement is not based on credit. The banks are trying to make a good loan out of a troubled loan. The loan modification will not hurt your credit; generally only late payments or a foreclosure will negatively affect your credit score.

Q:  What if I have no equity or I am upside on my home? A: It does not matter! Some banks are doing a principal reduction, which means the bank will discount the total loan amount to the current value of your home or close. Most banks or lenders rarely do this.

Q: What if my income is too low? A: You will need to show the bank that you and all others in your household together can afford the new payment. 

Q: What should I expect the terms to be on my new loan? A: Banks are rapidly more willing to agree to a Loan Settlement. A bank will typically modify your loan into a loan you can afford and continue to pay. This may include a lower interest rate, payment reschedule, principal reduction, longer terms or any other modification that will make and keep the loan a “performing loan".

Q: How much can I save by doing a loan modification? A: You can save hundreds or even thousands a month, depending on your loan amount. Remember, a loan is typically for 30 years. So the Loan Modification that saves you $500 a month really equals $150,000 over the life of the loan.

Q: Does every bank do loan modifications? A: Most all banks do some form of a loan modification today. We are in a housing crisis and most banks are willing to work with clients to help them save their homes.

Q: How do the government programs affect my chances of getting a loan modification? : The government is telling banks they need to do their part to fix the housing crisis.  The Bail-Out Bill, Obama’s Home Affordable Modification Program (HAMP) or Making Home Affordable (MHA), and other plans will only improve your chances of getting a Loan Modification. The government is now offering incentives to banks and servicers, and even homeowners, depending on certain criteria. 

Q: How long does the process take? ¨A: Every bank is different, but it typically takes 30-90 days or more to get settle on a loan modification agreement.

Q: Are there any other costs involved? Appraisal, credit report, title, closing costs, broker fees, etc "A: There are No other costs associated with a Loan Settlement. The banks are modifying loans for no charge. They may sometime ask for a trial period, which demonstrates that you are serious about staying in your home.

Why Do Lenders Prefer A Loan Settlement Over A Lawsuit that results ?

Lenders are known to be difficult when it comes to loan modifications. But did you know that they benefit at least as much from the process as you do? The main reason they balk at mortgage modification is that they have to train agents to handle them, and each case requires individual attention. But it also saves them a good deal of time and money compared to foreclosure, and may even have a few long-term benefits. Here are some good reasons why your lender might prefer a loan modification over a foreclosure.

It’s faster and cheaper. In a foreclosure, there are specific wait times that allow the borrower to get current with their mortgage. It’s not uncommon for the process to drag on for almost a year. These delays can cost your lender a good deal of money. A loan modification, on the other hand, takes an average of 30 to 60 days. All they have to do is go over your documents, talk to your loan modification attorney, and see if you qualify. The negotiations are the hardest part, but they don’t cost quite as much as foreclosure expenses.

It’s less work. To start the foreclosure process, your lender will have to assess late charges, file a Notice of Default, pay heavy lawyer fees, and arrange an auction to sell your home. And if you manage to get back on track and stop foreclosure, all the work simply gets filed away. Loan modifications involve less work on their part. You and your loan modification attorney will do most of the work and provide most of the documentation. Often, all they have to do is assess your case and decide what kind of mortgage assistance you will need.

It helps keep investors. Foreclosures are as damaging to your lender as they are to you. It may benefit them for now, but with the recent housing bubble, it will eventually weigh them down. Investors don’t want to deal with banks that have too many foreclosures on record. If they grant you a loan modification instead, your payments will keep showing up on their records instead of being written as bad debt.

Of course, this doesn’t make it any easier to get what you want from your lender. After all, you’re still a liability—and it’s important to prove that you can get back on your feet. To get the best loan modification deal, use our system to show your lender you are well qualified for a loan modification.

How to Apply and Qualify For a Loan Modification

Loan modification sounds simple enough: you basically ask your lender to change your mortgage terms on the basis of your financial hardship. If you’re one of the millions of American homeowners who want to stop foreclosure, it may just be the solution you’re looking for. If all goes well, you can get your loan modified within a short period of time and start getting your life back on track.

1. With the most brutal economy since the great depression, banks are now beginning to modify their mortgages in order to avoid more costly foreclosure process, and the U.S. Government is supporting these banks, even offering incentives to modify your loan...

Here are just a few examples of what can be done by modifying your loan!

A.  Convert Adjustable Rate or Pay Option Mortgage into a lower Fixed Rate loan (rates starting as low as 2.50%)

B.  Lower the rate on a high Fixed Rate loan

C. Add your past due payments to the balance of the loan

D. Re-Amortize your loan into a longer term of up to 40 years

2.  If you are behind on your monthly payments, your lender may take any past due payments and add these to your total loan amount and help you get back on track to making your monthly mortgage payments, without having to come up with a large lump sum of money to keep your home.

3.  A Loan Modification under the HAMP program may stop any foreclosure action before it is too late.

4.  Save your credit by reducing your monthly mortgage payments to an amount you can afford, thus allowing you to more easily make timely payments on all of your credit cards and other debts.

5.  To successfully modify your mortgage, you should learn how the process works from the banks perspective. Read this guide book to learn and understand the process.

6.  As with any government program, the paperwork can be extremely difficult and overwhelming. Submitting a bank ready loan modification package is the key for a quick, successful loan modification experience.

7.  It all starts when you make your first contact with your lender or servicer. By providing a fully completed bank-ready Loan Modification Package you are making a good impression and you are already one step ahead and on your way to a successful modification experience.

8.  When submitting your loan modification request, you will need a formal Loan Modification Request Letter, Income Worksheets, Expense Worksheets, Loan Modification Proposal, Letter of Hardship, signed Affidavit, and the contact information for submitting your request to your bank's loss mitigation department.

9.  If you have two mortgages, you will need two complete separate packages. Our system will automatically prepare these two submission packages and all of the required documents.

10.  If the lender loss mitigation department's information is missing or incorrect in our system, you can call your lender or servicer for this information. Ask for the “Loss Mitigation Department” or the “Loan Modification or Work-Out Department”

11.  You will need to follow-up with your lender or servicer until your file is assigned to a loss mitigation agent/specialist or negotiator. As soon as you file is assigned to this person, make sure to get their name, phone number, extension, and all information. Ask what to expect and when you can expect it. Take GOOD NOTES.

12.  When your lender or servicer offers you a loan modification, make sure it is sent to you in writing and carefully review the details. NOTE: The bank is always looking out for their financial interest first, so the best offer is not always the first offer.

13.  DON’T BE AFRAID TO NEGOTIATE! Always try to re-negotiate your bank's offer. Review our case studies or give us a call to learn and understand how aggressive banks can be.

14.  Take notes and use the task/reminder tool to stay on top of your loan modification.

Things to Consider before Getting a Loan Modification

Choosing a loan modification isn’t a decision you make overnight. Sure, it can be your ticket to a better mortgage, but it’s not a surefire way to solve your money problems. Like any other transaction, it has its challenges, and it suits some people better than others. If you’re not the right candidate, even the best loan modification attorney can’t guarantee the results you want.

Remember, loan modification is as much a commitment as it is a solution. If you’re considering a loan modification, here are some things you should ask yourself before making any decisions.

Do I qualify?

Each lender has its own policies, but the general requirement is that you have a job and be able to prove your financial hardship. This tells your lender two things: first, that falling behind wasn’t entirely your fault, and second, that modifying your loan can really help you back on your feet. If you’re still unstable or have no reason to request mortgage assistance, our system wont be able to help much.

How far behind am I?

It’s important to build a strong case to persuade your lender, but there are limits to how far behind you can be. It’s one thing to miss a few payments because you lost your job, but it’s another to deliberately miss half a year because of bad spending habits. As your debt accumulates, your lender perceives you as a high-risk borrower and may be less willing to work with you.

Can I afford it?

With our affordable DYI system, your loan modification can cost as low as $299. But it’s not just a matter of having that much money in the bank. We offer an affordable solution that gets the best results.  With a little time and effort you can save money and save your home.

How much equity do I have?

Your equity value is probably the biggest factor affecting your lender’s decision. If you have enough equity to cover foreclosure expenses and deferred interest, foreclosure may actually be cheaper for your bank. However, equity is determined by the value of your property, which your lender can easily overestimate. Do some research beforehand to see how much your home is really worth, so you can face your lender with hard facts.

Can I stay on track?

A loan modification won’t free you of all responsibilities; it only allows you to meet them more comfortably. Once it’s granted, it’s no longer your attorney’s job to keep you on track. Make sure you have enough money saved up to cover initial payments when the mortgage reinstates, as well as an emergency fund. If something comes up and you fall behind again, the whole loan modification process will have been useless.

Choose Your Loan Settlement Law Firm Carefully!

With the serious need that many homeowners now have for relief from high adjustable rate loans, looming foreclosures, and mortgage loans higher than the home’s value, many opportunistic companies who have jumped onto the loan modification bandwagon.

Some of these companies are legitimate; however there are a number of scam artists and boiler room operations who are taking money from people who are in need of real help, and not delivering on their promises.

Do you homework to determine who is genuine, and who you can trust with the most valuable asset you have, which is your home.

Why trust your most valuable asset with a third party company when you can easily modify your home on your own your our online loan modification software.

It is crucial that you do your homework and ask the right questions before committing to pay for service that can have such a significant effect on your home ownership.  Your best option is to spend a little time, save money and save your home on your own.

Loss Mitigations connects you with a law firm IF YOU PREFER NOT TO HANDLE IT YOUR SELF that can help you avoid foreclosure. We have several Lender Litigation Law Firms within our network, each with hundreds of successful Loan Settlements. Depending on your specific situation (the property state, your mortgage lender, your mortgage history, your hardship, and any other unique situation you might be in), we will match you up with the right company.

You can save your home, lower your rates/payments, reduce your mortgage balance, and eliminate all late payments, interest, attorney fees and more! Applying is free, no up-front fees, and you have many options to assure that you keep your home. Our success rate is one of the highest in the industry!

Loan Settlement Process

It starts with you filling out the short form on this site. Your case is then immediately assigned to a company within our network who will be contacting you shortly to get the ball rolling and obtain more details about your specific scenario.

Click here for more information about the loan modification process.

Loan Modification Myths and Facts

Loan modification has become the solution of choice for people facing unaffordable mortgages and foreclosure, but as the market for mortgage assistance grows, the number of misinformed homeowners is also rising steadily. A lot of people enter loan modifications with serious misconceptions, and end up making the wrong decisions, based on inaccurate information.

How do you tell fact from fiction? Can a loan modification really stop foreclosure and solve all your mortgage problems? This guide shows you some of the most common myths about loan modification, and the truth behind them.

Myth #1: You can do it on your own.

Fact, yes! you can do your loan modification on your own—Your lenders would rather work with you than a third party company, if you give them the proper information.  Many lenders even say on their voice recordings not to use a loan modification attorney. You may find that the guidance of an experience staff to assist you may increase your outcome.

Myth #2: Your lender would rather foreclose than modify your loan.

In some cases, foreclosure is the more practical option. But according to a Tower Group study, lenders lose substantial money with every foreclosure, and are required to increase their reserves in addition. The banks already own too many foreclosure properties and have too many non-performing loans on their books. They would much prefer to adjust your mortgage to something affordable and convert your loan into a performing asset. Don’t be intimidated by threats of foreclosure.

Myth #3: You can’t stop the foreclosure process.

It’s true that your chances dwindle the longer you wait, but until your home is auctioned off, no one can really kick you out. A loan modification can stop the process as close as seven days before the sale date. This buys you enough time to get back on your feet while you work out a better arrangement with your lender. Of course, it’s always better if you take steps early on.

Myth #4: It’s an instant solution to mortgage problems.

Loan settlements really work, but they take time, the right expertise, and money. Depending on how far behind you are, the process can take anywhere from one to three months. But since it stops the foreclosure process, you won’t have to worry about losing your home while the modification is under way. If you submit your paperwork on time and cooperate with your lender, you can speed up the process and avoid complications.

Myth #5: You need good credit to qualify.

Standard requirements vary from lender to lender, but the bottom line is that the loan modification should make financial sense to your bank. Your credit rating doesn’t have anything to do with it. Your lender will want proof that falling behind was a temporary snag, and that you can afford to stay on track if they do modify your loan. This means you have to have a job and a valid proof of hardship. You don’t need to disclose your credit rating in most circumstances.

Myth #6: Loan Modification companies are scams. Companies take your money, but don’t really do any thing.

In any business there are always some unscrupulous people, but you can find legitimate organizations that will help you. The important idea in loan modification is to utilize a system that helps you aggressively present your loan modification case to your lender. You should thoroughly check on the background of anyone who claims to be able to do a loan modification before you spend your money from them to do it for you.

We are not associated with the government, and our service is not approved by the government or your lender. You may stop doing business with us at any time. You may accept or reject the offer of mortgage assistance we obtain from your lender [or servicer]. If you reject the offer, you do not have to pay us. If you accept the offer, you will have to pay us for our services. Even if you accept this offer and use our service, your lender may not agree to change your loan.

How To Stop Foreclosure

A bank, or other lender, seeks foreclosure when it has good reason to believe that it no longer has any chance of repayment of the debt it is owed. The first step you can take to stop foreclosure on your home is avoid giving the bank any reason to believe it will not have its debt repaid! Just because you are unable to make a payment on your mortgage does not mean you have to lose your home. Homeowners will often avoid notices from their lenders after they have missed a payment.

This is understandable and usually driven by embarrassment or the sense of helplessness. However, by not responding to the lender's notices, you are giving them their first reason to think you will not be able to repay your loan. Stop the foreclosure mindset by contacting your lender immediately through one of the prescribed methods in the notice letter. Explain your situation and open the dialogue on options for avoiding foreclosure. Or if you're looking for immediate assistance, fill out the form below to begin!

Loan Modification Demonstration Video

Step-By-Step Instructions to Our Online Loan Modification System

Follow the steps below to get the best loan modification.

Step 1 – Activate Account

Once you activate your account, you will have access to your loan modification account, here you will be guided step-by-step to answer questions that will auto populate into your “Bank Ready” loan modification package. To return to the loan modification station, just return to the website and log-in using your log-in information and you can make changes, updates, notes, tasks, etc.

Step 2 (Tab 1) - Borrower Info

Answer all questions relating to your contact information and current mortgage scenario. Required boxes are shaded blue. Position your mouse over any of the question mark icons to see a full explanation of what the question is asking for.

Step 3 (Tab 2) - Income & Expenses Info

Answer all questions relating to your HOUSEHOLD income and expenses, regardless of whether all individuals in the home are listed on the loan or the property title. Lenders will look at all income sources in qualifying you for a loan modification. NOTE: The system will automatically calculate your disposable income (the amount of income you have left over after paying all of your bills. This number should be within a relevant range. Too much disposable income left over will indicate you make too much money and should be able to pay all of your bills; therefore you would not need a loan modification. Too large a negative can indicate that you have too much total debt, and/or your mortgage payments are too large, even with a loan modification. If this is the case, the lender will quickly see that no matter how much they modify your loan; you will still be in a bad financial situation.

Step 4 (Tab 3) - Proposal

Here is where you can adjust and suggest new loan terms for your lender to consider. The proposal module will automatically calculate and analyze other variables such as Market Value, Cost of Foreclosure, Asset Liquidation Analysis, and overall proceeds to the lender in the event of a foreclosure. Your lender does not want to foreclose on you in today’s real estate market. Their goal will be to try to keep you in the home. The proposal will demonstrate a win-win solution for both parties.

Step 5(Tab 4) – Hardship Letter

It is very important to demonstrate and prove a hardship to your lender. Your lenders loss mitigation department will carefully review this explanation and may request that you provide verifiable proof of your explanation. So be prepared to back up your hardship with proof of what you say here. See below for some sample hardship cases.

Step 6 (Tab 5) - Q+A (Questions & Answers)

The system will ask you detailed questions that are important for your lender to review to determine your eligibility for a loan modification.

Step 7 (Tab 6) – Get Documents

This is where you can print your bank ready loan modification package. If you have a first mortgage and a second mortgage, you will be able to print 2 separate loan modification packages here. You can also print a copy of your Instructional E-Book (documents tab).

Step 8 (Tab 7) – Submit to your Lender (Set Tasks & Reminders)

You can set a task for yourself or a reminder to complete your task here. As you start the negotiation process and engage in conversations with your lender, you will want to document these discussions and track any offer they give you. The more notes you keep: date, time, and whom you spoke with, the better. Set reminders for items that your lender may ask you for. For example, your lender may request additional documents or additional proof of income by a certain date, and you can have the system automatically notify you with a reminder to complete this task.

Step 9 – Approvals & New Loan Modification Agreement

When you receive a loan modification offer from your lender or servicer, keep detailed notes and all paperwork. Your lender may approve your loan modification based on 3 months of timely payments; this is known as the “Trial Period.” If you do not follow up on time, you run the risk of losing the loan modification offer or delaying the overall process.  In the event of foreclosure proceedings, the judge will want to know the details and every measure you took to work out a loan modification with your lender. In some areas and in certain cases, the judge is recommending or forcing the lender to modify your loan, especially if you can prove your efforts to get a loan modification. They will ask for proof and will also need to see all of this information.

In any business there are always some unscrupulous people, but you can find legitimate organizations that will help you. The important idea in loan modification is to utilize a system that helps you aggressively present your loan modification case to your lender. You should thoroughly check on the background of anyone who claims to be able to do a loan modification before you spend your money from them to do it for you.

Foreclosure Help - Loan Modification Helpers

We're here to help you with your foreclosure problems. In addition to the information we provide on how to stop foreclosure, you will find information below that may help answer additional mortgage and foreclosure questions you might have. Above all we want to stress the point that you should act now, especially if you have already received a notice from your lender. The longer you wait and the more you ignore the problem, the less likely it becomes that you’ll be able to get help with your foreclosure. Look for the phone number of your bank on our lender’s contact information list, on your monthly bill statements or on any notices you may have received about your mortgage.

If all of this information is too much to take in or just too confusing, let us connect you with a mortgage professional in your area that specializes in helping borrowers fight foreclosure and understands the state laws that govern your situation and the options available. Remember that the bank does not want to go through a lengthy and costly foreclosure process and would rather employ a loan modification option if agreeable terms can be met for both parties.

Most of all, understand that you are not alone. Unique economic conditions have led to the current crisis and millions of Americans are facing mortgage foreclosure. Be one of the ones that asks for help.

How can I stop foreclosure of my home?

There are only two ways to stop foreclosure. The first is to pay all of the delinquent payments, late fees, and attorney fees to bring the loan status back to "current". The second way to prevent foreclosure is to negotiate with the lender to somehow relieve the current situation and set aside a plan for future payments. The first approach is generally impossible, since at this point the amount due can be anywhere from $10,000 to $50,000+ depending on your loan balance. The second attempt is generally difficult as well, but much more benefiting for both the homeowner and lender/servicer in the long run.

Requesting a loan modification on a home in foreclosure can be both intimidating and rewarding at the same time. The negotiations for someone in this position will not only prevent the Trustee or Sheriff’s sale from taking place, it will also help waive or negotiate down the delinquent balances due, initiates a new affordable payment and lets you walk away with a "clean slate" with your lender.

Loan Modification Do’s and Don’ts

One of the biggest mistakes you can make in a loan modification is to ignore the rules. You need to be educated before the negotiating process. it helps a great deal if you do your homework and arm yourself with the right information. After all, you’re dealing with lenders—and at the end of the day, you still have to play by their rules. Here’s a list of loan modification do’s and don’ts to help you avoid common pitfalls.

Do know your rights.

More than 80% of mortgage contracts violate one or more lending laws—and most of them go unnoticed. But these violations can be your biggest weapon in the loan modification process. They can give you the leverage you need to negotiate with your lender and stop foreclosure. Our loan modification attorney system can help you understand your rights and use them to get the results you want.

Don’t wait too long.

The foreclosure process is designed so that you have time to get back on your feet and save your home. But that doesn’t mean it’s safe to procrastinate. The longer you wait, the harder it gets to get you out of that fix. As soon as you decide you need mortgage help, create your account to get started today.

Do work use the help of our system.

Your loan modification doesn’t rest soley in the hands of your lender, your broker, or our loan modification attorney system. These can help, but you have to do your part and cooperate with your lender. Make sure you follow our guide to properly submit your paperwork on time, answer questions honestly, and give them a clear picture of your financial situation.

Don’t file for bankruptcy, unless you really have to.

Many people think that filing for bankruptcy can help them stop foreclosure. But data from the American Bar Association shows that it doesn’t work that way. In fact, 96% of the people who file bankruptcy end up losing their homes anyway—so they’re left with a foreclosure AND a bankruptcy on their records. In some cases, bankruptcy is still a viable option, but don’t make any decisions without getting professional advice.

Do have a backup plan.

Not all people will qualify for a loan modification. Maybe you’ve fallen too far behind, your lender may be simply hard to work with, or maybe you don’t need it after all. In any case, it’s always good to have a Plan B. Our mortgage modification system can help you find the best solution.

If you can’t get your loan modified, talk to your lawyer about a short sale. This involves selling your home for less than its fair market value and giving the proceeds to your lender. Although you still lose your home, it’s not as damaging to your credit as foreclosure, so it’s easier to get back on your feet.  We can link you with a Short Sale Specialist in your area for further information about selling your home to avoid further credit dings.

Types of Loan Modifications

What do you expect from your loan modification? If you can’t answer that question, your lender will assume you don’t know what you’re doing and try to trick you with unreasonable deals. Setting your goals is an important part of the loan modification process. If you know your options, you know when your bank is making a fair offer or just trying to fool you.

The terms you will get depend on what makes the most financial sense to your lender. Your loan modification attorney should run you through your options and help you set realistic goals. Below are some of the ways your loan modification can be changed, and how they can work for you. The ultimate goal with loan modification is to save your home by adjusting your mortgage to a payment that you can afford for the long term.

1. Waiving or reduction of delinquent balance.

If late penalties account for most of your debt, this can be a viable option. Your lender can reduce the amount you owe in late charges, or if you’re lucky, even write it off altogether. They can also add it to your principal, so you won’t have to pay it up front.

2. Reduction of interest rate.

Sub-prime lenders, with their notoriously high interest rates, are the reason why many people are facing foreclosure. This is why interest reduction is one of the most common forms of loan modification. With a lower interest rate, you can better handle monthly payments and stay current on your mortgage.

3. Extension of term.

Your lender can also add years to your loan term, allowing you to spread out the payments. This may be the best arrangement if your income has changed and the payments have become unmanageable. Most lenders will agree to this change because they technically don’t lose any money—they’ll simply get it in smaller installments.

4. Shift to fixed-rate plan.

Most people who fall behind are in adjustable-rate mortgages. This means the interest rates are determined by market indicators and can change from month to month. A fixed-rate mortgage, on the other hand, uses the same rate for the term of the loan and is better for the long run. Because it’s more secure, you’re less likely to be affected by economic slowdown.

5. Reduction of principal.

In some cases, it may be cheaper for your lender to simply reduce the amount you owe. This isn’t very common, since they still lose money in the process. It’s usually granted when the costs of undergoing foreclosure or a short sale are greater than the amount they can write off.

Types of Loan Modifications

What do you expect from your loan modification? If you can’t answer that question, your lender will assume you don’t know what you’re doing and try to trick you with unreasonable deals. Setting your goals is an important part of the loan modification process. If you know your options, you know when your bank is making a fair offer or just trying to fool you.

The terms you will get depend on what makes the most financial sense to your lender. Your loan modification attorney should run you through your options and help you set realistic goals. Below are some of the ways your loan modification can be changed, and how they can work for you. The ultimate goal with loan modification is to save your home by adjusting your mortgage to a payment that you can afford for the long term.

1. Waiving or reduction of delinquent balance.

If late penalties account for most of your debt, this can be a viable option. Your lender can reduce the amount you owe in late charges, or if you’re lucky, even write it off altogether. They can also add it to your principal, so you won’t have to pay it up front.

2. Reduction of interest rate.

Sub-prime lenders, with their notoriously high interest rates, are the reason why many people are facing foreclosure. This is why interest reduction is one of the most common forms of loan modification. With a lower interest rate, you can better handle monthly payments and stay current on your mortgage.

3. Extension of term.

Your lender can also add years to your loan term, allowing you to spread out the payments. This may be the best arrangement if your income has changed and the payments have become unmanageable. Most lenders will agree to this change because they technically don’t lose any money—they’ll simply get it in smaller installments.

4. Shift to fixed-rate plan.

Most people who fall behind are in adjustable-rate mortgages. This means the interest rates are determined by market indicators and can change from month to month. A fixed-rate mortgage, on the other hand, uses the same rate for the term of the loan and is better for the long run. Because it’s more secure, you’re less likely to be affected by economic slowdown.

5. Reduction of principal.

In some cases, it may be cheaper for your lender to simply reduce the amount you owe. This isn’t very common, since they still lose money in the process. It’s usually granted when the costs of undergoing foreclosure or a short sale are greater than the amount they can write off.

Loan Modification Glossary

You know what a mortgage is, how it works, and what to watch out for. But when you go asking for mortgage assistance, your lender’s words make about as much sense as alien banter. That’s what makes the loan modification process so confusing for many homeowners—and why many of them simply give up.

But you don’t have to be a financial expert to make sound decisions. A working knowledge of the lending and loan modification industry can help you better understand your situation, and know exactly what your lenders mean. Below is a list of terms you’re likely encounter in a loan modification, and what they mean for you.

Amortization: The repayment of a loan (usually a mortgage) through regular installments. The payments are determined by the term of the loan, the principal balance, and the interest rate.

Annual Percentage Rate (APR): The total cost of the loan, including the interest, mortgage insurance, points, and other associated fees.

Adjustable-Rate Mortgage (ARM): A type of mortgage in which the interest rate changes according to market conditions. This means your payments may increase or decrease from month to month. Most ARMs have a payment cap that keeps the amount from rising beyond certain levels.

Debt-to-income ratio (DTI): The ratio of the amount you pay on the loan to your total income. Lenders use this to determine whether or not you can comfortably pay the loan. According to the Federal Housing Administration (FHA), the mortgage payments should not exceed 29% of your monthly income before taxes, and your total debt (including credit cards and other loans) should not go over 41%.

Deed-in-lieu: A deed that passes interest in your property to your lender as settlement for your debt. It doesn’t let you keep your home, but it helps you avoid the foreclosure proceedings and associated costs.

Equity: The amount of financial interest you have in your own property. This is calculated by subtracting the amount you still owe from your home’s fair market value.

Fair market value (FMV): A theoretical price given to your home considering the current market conditions. The FMV assumes that the buyer and seller are acting freely and have all the pertinent information for the deal.

Fixed-rate mortgage: A type of mortgage that uses a fixed interest rate throughout the term of the loan. This gives you more stability as a borrower, as your payments will remain the same regardless of the market figures.

Foreclosure: A process wherein your property is sold off and the proceeds go to your lender, allowing them to recover their losses when you default on the loan.

Forbearance: An agreement in which your lender revises your payment plan to help you get current and avoid foreclosure. This may involve lowering your monthly payments or suspending them for a given period. Unlike loan modification, this is usually temporary and is often used as a loss mitigation option.

Good faith estimate (GFE): An estimate of the total cost of the loan, including all the closing fees, lender charges, and insurance costs. All lenders are required to give you a GFE within three days after you apply for a loan.

Interest: A percentage of the principal added to your monthly fees, as a way of paying your lender for the use of money.

Interest Only: A loan structure in which you only pay interest for the life of the loan, and pay the principal only after a given period.

Lien: A claim held by your lender against your property as a form of security in case you default on the loan.

Loan-to-value ratio (LTV): The ratio of the total amount you pay on the loan to the actual price of your home. The higher the LTV, the less you have to put out as down payment.

Loss mitigation: A process that helps borrowers to avoid foreclosure and lenders to minimize their losses on delinquent borrowers. When you fall behind or apply for a loan modification, your lender’s Loss Mitigation office will handle your case and make the decisions.

Mortgage banker: A firm that resells loans to secondary lenders, such as Fannie Mae and Freddie Mac.

Mortgage broker: A person or company that serves as a mediator between agents, buyers, sellers, and mortgage lenders. Brokers are paid by a percentage of the amount earned by the lender or seller. Lenders are required by law to disclose all fees paid to brokers and other parties, so you can be sure they’re not making kickbacks at your expense.

Mortgage insurance: An insurance policy that helps minimize losses for your lender in case you fail to keep up with payments. This is usually required for borrowers who make a down payment lower than 20% of the purchase price.

Principal Balance Reduction: A type of loan modification in which your lender reduces your principal balance to lower your monthly payments. Lenders usually grant this only to people from heavily depreciated areas, or when the amount they write off is still lower than the cost of foreclosing on your home.

Refinancing: A process wherein you take out one loan to pay off another. This allows you to enjoy better loan terms, such as a lower interest rate or a more stable structure.

RESPA: Real Estate Settlement Procedures Act. This is a law that requires all lenders to give you a Good Faith Estimate (GFE) of the loan and disclose all the fees involved. It also gives you the right to dispute any fees or even cancel the loan within a reasonable time frame.

Short sale: A common alternative to foreclosure. In a short sale, you sell the home for less than its fair market value, and give the proceeds to your lender as payment for the home. Although it won’t let you keep your home, it’s less damaging to your credit than a foreclosure.

Teaser Rate: An introductory interest rate offered on many mortgages to draw in borrowers. After the introductory period, the interest reverts to normal rates, increasing your monthly payments for the rest of the loan.

Teaser Rate: A temporary rate reduction at the inset of a loan.

TILA: Truth in Lending Act, also known as the National Consumer Credit Protection Act. This law requires lenders to give you complete information about the terms and total cost of the loan.

Home Loan Modifications and Your Credit Score

A home loan modification can help you stop foreclosure and stay in your home. But if you’re like most homeowners, you’re probably wondering how it will affect your credit, and whether in a good or bad way. Unfortunately, there’s no single answer—it all depends on how far behind you are and the kind of mortgage loan modification you’ll be granted.

Best-case scenarios

Technically, since you’re not borrowing any money, a home loan modification won’t hurt your credit score. If you’re paying less in interest, you have a smaller debt burden. And since most lenders prefer an interest rate reduction, there’s a pretty good chance that a mortgage loan modification will improve your credit score.

The implications are even better if your lender forgives part of the principal, although this is less common. If they write off $50,000 from your loan amount, it will show up on your report as a smaller loan, which can increase your credit score.

The lender factor

Unfortunately, it doesn’t always happen that way. It also depends on how your lender reports the home loan modification to the credit bureaus. Many of them will consider it paid for less than the original amount owed, which will count against your score. If you’re already in foreclosure, the impact on your credit can be substantial. Of course, compared to a short sale or a foreclosure, a home loan modification is still the best way to maintain your credit standing.

Tax implications

One of the early problems with loan modification is that the amount forgiven is usually taxable. That means if your debt is reduced by $50,000, the IRS views it as income and imposes the corresponding tax. This can catch homeowners off guard during tax season, as many of them don’t know the tax implications at the time of the modification.

To avoid such incidents, the IRS announced in 2007 that loan modifications would no longer be classified as “prohibited transactions.” This applied to all loans originated from January 2004 to July 2007, the peak of the sub-prime boom, and those due to adjust from January 2009 to July 2012. If your mortgage falls under these categories, you won’t have to file a 1099 declaring the change as taxable.

How to Speed Up the Loan Modification Process

Foreclosure is always a race against time. Although a home loan modification can slow the process, you have less options the longer you wait. Not all lenders have the staff or experience to handle mortgage loan modifications. Even with a perfect case that is presented to your lenders, the process can drag on for months.

But you don’t have to sit and wait. There are some things you can do to speed up the process. Once your home loan modification is under way, these steps can help you get more positive results.

1. Put everything on paper. It’s not uncommon for lenders, especially smaller ones, to lose track of your application. To prevent delays, make sure all your efforts are documented and kept on file. This includes all the calls you make and receive, both from your lender and loan modification attorney. Keep receipts of all your transactions, and make copies so you don’t have to let go of the originals.

2. Save Money. Be sure and cut back on your normal spending so you are able to pay for your first few payments under your new modified term.  This way you will be ready to start making your payments if you get your loan modification early.  You must work hard and be financially disciplined before you start on your new loan modification term.

3. Stay organized. Be sure you organize and save all of the following, just in case your lender needs it in the future:

-Information about your property, including the estimated value

-Income documentation

-Any additional income, such as welfare, child support, etc.

-Your estimated total value, including other assets such as real estate, investments, savings and checking accounts, IRAs, 401(k), stocks and bonds

-Liabilities, such as existing loans, monthly bills, medical expenses, and tax liens

4. Keep all your bills. The financial worksheet will require you to dig up old bills and hold on to the ones that keep coming. This will help you keep the information as accurate as possible. You may also need to present these bills (or copies of them) along with your hardship letter, which explains why you need a mortgage loan modification. Even if they don’t ask for it, it’s best to include them anyway. That way, there’s no reason for your lender to doubt your statement. The more proof you have, the better your chances of getting that home loan modification.

Be sure to submit as much truthful and verifiable information to your loan modification lender so they are able make the best decision in modifying your loan for the long term.

What is a Short Sale?

In a short sale, your bank or lender agrees to settle your loan for less than the amount you owe. Lenders have their own reasons for agreeing to a short sale, but in a nutshell, it helps them minimize their losses compared to a foreclosure.

Banks lose more money in a foreclosure because of lost interest, attorney fees, court expenses, eviction costs, selling costs, and property maintenance. And the longer the process draws on, the more money they lose. A short sale doesn't involve as much wait time, so they just get their money sooner. With a loan modification, lenders are able to continue to collect on their an investment, and would prefer a loan modification over a short sale

As a borrower, you can also benefit from a short sale. For one thing, you won't have to undergo the stress and embarrassment of a foreclosure, since it's a much faster process. It's also less damaging on your credit than a foreclosure, so you can get back on your feet faster.

In this age of financial crisis, even major lenders are forced to take offers they wouldn't have considered in better times. This allows us to easily negotiate better terms with your lender, whether you're after a short sale or a loan modification.

Foreclosure vs Short Sale: Saving Your Credit

What exactly does a foreclosure do to your credit? Simply put, it’s credit suicide. The plain fact is that by the time you reach the foreclosure stage, there’ll already be some serious damage. The foreclosure stays there for seven years, and even the best credit repair techniques can’t do much about it. And while it’s there, even finding a place to rent can be difficult. But unlike many homeowners, walking away isn’t your only option.

A short sale allows you to avoid foreclosure and minimize the credit damage. Basically, your lender agrees to discount your loan balance by receiving less than your home’s fair market value. It doesn’t appear as bad because you’re still technically making full payment for the loan, save for the late payments and penalties. Unlike a foreclosure, you can usually clean up a short sale in two years with some aggressive credit repair.

But before you consider a short sale, you have to think in the long term. Remember, you’ll still be losing your home and it will still damage your credit. Here are some basic differences worth keeping in mind.

Foreclosures stay on your credit report a lot longer. If you’re planning to buy another home in the future, a short sale will make it easier.

If you’ll be renting a place after a foreclosure, your options will be severely limited, and the process can be complicated.

After a foreclosure, you will still owe your lender money. Most banks have hired collection agencies whose job is to get that money out of you, no matter what it takes.

Short sales give you a limited time frame for finding a buyer.

In most cases, a short sale is always the safer choice. It can protect you from aggressive debt collectors and give you more ways to clean up your record. And if you still have your job or a source of income, you may qualify for a loan modification, which makes it easier to get back on your feet.

Perhaps the biggest drawback to short sales is the pressure to find a buyer on such short notice. If you are planning on keeping you home and still have an income, you need to contact us to see if we can help you.

Foreclosure Timeline

Everyone's heard of foreclosures, but how do they really work? Knowing how one thing happens is vital to preventing it. Here's a quick peek into the foreclosure process and what happens at each step.

Collections Stage (30-90 days)

This period starts when you miss your first payment. Initially, your bank may take steps to help you stay current before taking any drastic measures.

From day 16 to 30, your bank starts assessing late charges. By day 45 to 60, if you still haven't caught up, you will receive a letter (known as a breach, demand, or NOI) informing you that the mortgage terms have been violated. You will then be given 30 days to pay the charges and resolve the situation.

Pre-foreclosure - NOD - Notice of Default (90 days)

Pre-foreclosure starts when your lender files a Notice of Default (NOD) or breach at the county office where your property is located. A “Constructive Notice” is given to the public at the time or soon after the recording. Technically, the foreclosure process starts at this point.

After the NOD is recorded, you will receive the notice in about 10 days. Within the next 30 days, the trustee also informs all the other creditors collateralized by your property of the notice.

A Reinstatement Period is also initiated at the time of the NOD. In California, this gives you up to 90 days to settle the amount you owe.

Midpoint (60 days before Auction Date)

From here on, your exit options start to dwindle. The terms vary from lender to lender, but the trend is that they get stricter the longer you hold off payments. However, if you do get current or reach another arrangement, the NOD may still be withdrawn and your case resolved.

Pre-Trustee Sale - NOS - Notice of Sale (21 days up)

In this stage, a Notice of Trustee Sale (NOS) is posted on your property, advertising it to the public. The notice stays up for at least three weeks and includes the time, date, and location of the auction. You can still settle your payments and reinstate the loan 5 days before the auction date.

Trustee Sale (Auction date)

When your home gets auctioned off, you will be given 10 days to leave the property. On the 11th day, a sheriff will come to move you out.

If you are struggling with your mortgage payments, you basically have two options to avoid foreclosure: 1. Keep your home with a loan modification, or 2. Short sell your home.

Facing foreclosure? You’re not helpless—you’ve got your rights.

There's a reason lenders are called predators: they can and will go after your money, even when they know you don't have it. But even in the foreclosure process, you still have your rights-and you can't let your bank ignore them. Each state has its own laws, and a homeowner always has his rights during a foreclosure.

The first place you can look is your own mortgage contract. Most people just scan the papers and sign them. Brokers want to close the deal right away, so they don't take time to explain it to you either. But if you're facing foreclosure, now's the best time to dig out your contract and read it through. Here are some of your basic rights:

To fix payment problems: All mortgages give you the right to resolve defaults before the foreclosure starts, and even while the process is under way.

To get informed: All borrowers must be kept up to date on the foreclosure process as it happens, even if you don't take part in them. They can carry on without you, but you are officially one of the parties concerned.

To a Loan Modification:All borrowers are given the right to modify the existing terms of the loan. However, not all homeowners know how to get the best results. Use our loan modification attorney system to create your custom package and learn how to agressively negotiate so you can stay in your home.

Protecting Your Assets During Foreclosure

Foreclosure can be financially and emotionally crippling, but it doesn't end there. After a foreclosure, you still end up owing money, and there's nothing stopping lenders from going after your other assets. Fortunately, there are ways to protect yourself and avoid any further loss.

In non-judicial foreclosure states like California, banks have to go to court before they can get any deficiency claims. Some banks won't bother with the extra expense, but others will go that far to get hold of your assets. It doesn't make you any less vulnerable. In fact, once you get back on your feet, creditors can almost instantly come knocking on your door.

Your best options are Loan Modification or short sale. They can be a bit more complicated, but if all goes well, you can walk away with technically no obligations. It all depends on the loan modification attorney or short sale negotiator you choose to work with.

So how much of a discount can you get with a short sale? These days, most banks are willing to write off up a substantial percent of your property's value. For a bigger discount, you may have to sign a promissory note for the amount exceeded. It's best to do it without such obligations, as they'll only come back to attack your credit in the future. With a loan modification you are able to re-structure the terms of your existing loan and keep your home.

The bottom line is that you have two options: arrange a short sale or get a loan modification. Whatever you choose, The Loan Modification Department has the right people to help you. When you're working with the right professionals, you can protect your assets no matter what happens to your home.

The Foreclosure Process

Foreclosures come in two types: judicial and non-judicial. A judicial foreclosure is one wherein your lender must go to court in order to seize your home. This makes it considerably expensive for your lender, and can take much longer to complete.

A non-judicial foreclosure, on the other hand, is based on the state's statutory requirements. In this setup, lenders don't have to go through the court system to foreclose on your home. This kind of foreclosure can take as little as two months. In California, the average time is four to five months.

In either case, once your lender decides to foreclose, they will record a Notice of Default (NOD) at the county office where your home is located. This usually doesn't happen until you miss your third payment, but once it does, it progresses fairly quickly. Within 10 days, your lender will publish the NOD in the local paper, and by day 30, you will receive the same notice in the mail.

The NOD outlines the steps you need to take to resolve the problem. You are usually given three months from hereon to get your account current. Otherwise, your lender can schedule a sale date and your house can be sold within the next month. Once it's sold, you have ten days to leave the property.

As you can see, time is of the essence when you're facing foreclosure. This is especially true in states that have non-judicial foreclosure laws, such as California. You can see a more detailed description of the foreclosure process in our Foreclosure Timeline.

If you're facing foreclosure, there are two things you can do: 1) Request a loan modification and get a chance to save your home; or 2) Arrange a short sale. A short sale won't let you keep your property, but it'll minimize the credit damage compared to a foreclosure.

Foreclosure Options

The thought of foreclosure is enough to send any homeowner into a panic. But contrary to belief, starting the foreclosure process does not mean your at a dead end. From the day you receive your Notice of Default, you always have options, and the earlier you act, the easier it is to get back on track. .

The two most common ways to stop foreclosure are a short sale and a loan modification. Both have their own pros and cons, and it’s important to choose the right path based on your situation depending on if you plan to keep or sell your home. This guide shows you both options and how they can help.

Option 1: Loan modification

The main advantage of loan modification is that you get to keep your home and continue your mortgage on more comfortable terms. It works by changing your mortgage terms to lower your monthly payments, allowing you to afford making your monthly payments again. This option is best for homeowners who have good payment habits but fell behind because of unavoidable hardship.

How it works

In a loan modification, you work with a lawyer who will basically guide you through the application. Your loan modification attorney will start by evaluating your case and deciding whether or not a mortgage modification will work for you. It’s important to talk to a good loan modification attorney who can completely understand your situation.

Once you’re qualified, they’ll ask for a few financial documents complete your negotiation package. These usually include proof of income (pay stubs, W2 forms, etc), bank statements, and a hardship letter explaining your request and how you fell behind. They’ll go over your documents to see if there are any legal violations (RESPA and TILA) that can be used as leverage.

After that, your application is submitted and your lawyer begins negotiations. This is the main part of the loan modification process. The wait time depends on how your bank responds and whether they make a reasonable offer. Your lawyer will keep negotiating until you reach the best loan modification agreement with your lender.

Finally, a loan modification offer is sent to you for approval. The change can be an extension of your loan term, a shift from adjustable to fixed rate, a lower interest rate, or a reduction of principal. It all depends on your situation and how well your lawyer can negotiate.

How to qualify

Anyone in financial trouble can qualify for a loan modification. However, each lender has its own standards, and you may want to check with yours to see if you’re eligible. In most cases, you’ll need at least a source of income and valid proof of your hardship. Examples of acceptable hardship include job loss, illness or death in the family, and military service. You’ll need to explain this in detail in your hardship letter so that your bank can fully understand your case.

They’ll also look into your financial documents to see if you can handle your loan once it’s modified. It’s best to have at least two months’ payment saved up by the time you’re approved, and an emergency fund to cover up in case you fall behind again.

Option 2: Short sale

A short sale is when you sell your home and your bank agrees to receive the proceeds, even if it’s less than the amount owed on the loan. The drawback is that you still lose your home, and your lender can give you a tight time frame in which to find a buyer. A short sale is still damaging to your credit, but it’s easier to clean up than a foreclosure which stays on record for up to ten years.

How it works

The short sale process starts when you contact your lender and make your proposal. You may want to contact a lawyer beforehand to help you talk to your lender, and help you map out your selling plan. Once your lender has agreed to the sale, you will issue a letter authorizing them to release information about your mortgage and property to investors or potential buyers.

The details are presented in a document called a settlement statement. This includes the proposed selling price, remaining balance on the mortgage, and all associated expenses such as commissions and closing costs.

As with a loan modification, you will also need a hardship letter explaining your situation and what kind of mortgage assistance you want. Your bank will verify your claims using standard financial documents, which you will also provide. When you’ve been properly assessed, your lender will contact a third party (usually a broker) to examine your home and verify its market value.

Once you find a buyer, the short sale takes place and the proceeds go to your lender. The rest of the loan is written off, so effectively you’re getting a discount. Note that the savings can be taxable. Check with a lawyer and accountant to see if there are any liabilities.

How to qualify

The requirements for a short sale can vary from lender to lender. Most of them have to do with your type of hardship and the market value of your home. Before applying, check your local listings to see if your home’s market value has dropped. It should be worth less than the balance you owe your lender. You should also have a valid hardship that can be verified in your financial documents.

What is Predatory Lending?

Predatory lending is a practice wherein a lender forced you into abusive or unfair lending terms. This can be in the form of high interest rates, unreasonable penalties, and hidden fees that aren’t part of the mortgage contract. Often, the contract is written out so that it’s all but impossible for the borrower to get out of it, even when it puts them under financial stress. In fact, studies show that most of today’s foreclosures and defaults can be traced to some form of predatory lending.

How do I know I’m a victim? ¨Many predatory mortgages are so subtle that the borrower doesn’t know it—until things get out of hand and they’re facing foreclosure. But the earlier you take action, the faster you can set things right. Here are some signs that tell you if you’re on the losing end of the deal.

Excessive fees. Some fees can be financed but are not directly affected by the interest rate. This makes them easy to disguise or manipulate. Fees below 1% of your loan amount are usually no cause for concern, but if they add up to more than 5%, you should get suspicious.
  • Prepayment penalties.It’s common for lenders to charge you a penalty if you pay off your loan in advance. This is to make up for the interest they lose by letting you off early. The penalty is considered abusive if it’s effective for more than three years or is worth more than six months of interest.
  • Yield Spread Premiums. This is a fancy name for the kickbacks your lender pays a broker to steer you into a high-interest or sub-prime loan. If you see this term on your bill, you’re probably paying more interest than is legally acceptable.
  • Refinancing offers. If your lender offers you a tempting refinance package, think twice about it. It may be a form of loan flipping, a practice they use to generate income without giving you any tangible benefits. In the long term, the refinance can simply drain your equity and increase your monthly payments.
  • Mandatory arbitration. This is one of the most common predatory practices. Mandatory arbitration is a provision in many contracts that bans you from going to court if you find the terms abusive. You’re basically being denied of your rights to justice.

What are my rights? ¨Most cases of predatory lending violate the Real Estate Settlement Procedures Act (RESPA) and the Truth in Lending Act (TILA). These laws were put in place to protect borrowers like you, but lenders continue to violate them every day and trick millions of people out of their money. The best way to protect yourself is to know these laws and the rights they give you.

For one thing, you always have the right to speak up whenever you feel you’re being cheated. Sometimes it’s as simple as calling your lender and asking them to explain vague or overly high charges. They may or may not give a useful answer, but it’s important to let them know you’re not being fooled.

Even if you’re already in foreclosure, there are always steps you can take to correct the situation and save your home. Find a competent lawyer to help you out and look for RESPA and TILA violations in your contract. In most cases, the laws can help stop foreclosure and even give pay you back in damages.

What can I do? ¨If predatory lending has put you in serious financial trouble, one thing you can do is apply for a loan modification. This is a simple way to restructure the terms of your loan into something more reasonable and helps you stop foreclosure. All you need to do start with our loan modification system to create your loan modification proposal. Most lenders are already aware of these violations so they are more willing to work with you on your loan modification.

The only other option outside of a loan modification is to sue your lender for these violations.  This is a lengthy a tedious process that can easily be avoided by simply getting a proper loan modification.

Understanding Lending Laws

Thousands of people enter mortgage loans every day, but few of them really know what they’re getting into. When you sign that mortgage form, you’re not just borrowing money to buy a home. You’re signing up for a serious obligation and sealing a decades-long commitment with your lender. Even if you read every word of your contract, lenders—especially sub-prime ones—will always find a way to wring more money from your pockets. After all, that’s how they make a living.

Luckily, the government has taken steps to protect borrowers and make sure everyone gets a fair deal. The Real Estate Settlement Procedures Act (RESPA) and the Truth in Lending Act (TILA) were put into place to prevent unfair lending practices. Knowing these two laws, and the rights they give you, can keep you from making the wrong decisions and making a 30-year mistake.

The Real Estate Settlement Procedures Act

The RESPA basically says that borrowers should be given all the pertinent information when buying a home. The law is designed to prevent the parties involved in the purchase from making kickbacks at your expense. These include your lender, realtor, broker, and the construction and insurance companies. Before the RESPA was enforced, these parties got huge kickbacks from undisclosed fees in the loan.

The RESPA requires mortgage companies to disclose all the expenses involved in the transaction, from the actual purchase price to the small one-off fees. This is called a good faith estimate. The estimate lists your expenses in six main categories:

-Loan fees


-Government charges

-Title charges

-Additional charges

-Fees to be paid in advance

The law also gives you the right to dispute (in writing) any vague or unexplained fees. This way, you know exactly where your money is going, and you can always speak up when you feel you’re being cheated.

The Truth in Lending Act

This law was passed in 1968 to protect borrowers in credit transactions. Like the RESPA, it requires maximum transparency from your lender in all aspects of the transaction, from the actual costs to the payment terms. The law is not limited to mortgage loans; it applies to all other credit transactions including car loans and payday loans.

The TILA does not directly regulate the amount you pay on the loan. Instead, it requires lenders to disclose certain costs so that you can compare and shop around for the best deals. The standard figure is called the annual percentage rate (APR), which reflects the total cost of the credit including interest, discount points and origination fees.

For refinancing and second mortgage loans, the TILA also allows you to cancel the transaction within three business days. This is known as the “right of rescission.” It basically serves as a cooling-off period—it gives you the time to go over the contract and change your mind before it’s too late.

There may be violations of the above regulations in your loan documents. Lenders typically are aware that they may have violated laws, thus, they are more willing to give you a good loan modification.

Understanding Adjustable and Fixed Rate Mortgages

The loan structure is one of the first decisions you’ll have to make when taking out a mortgage. The two main types of mortgages are fixed-rate and adjustable rate, the main difference being the way your interest is calculated. Each structure has its own pros and cons, and it’s important to know which one best suits your situation. This article lists some of the basic differences between the two.

Fixed-rate MortgagesA fixed-rate mortgage, as the name suggests, uses a single interest rate for the life of the loan. The main advantage of this loan is stability: because the rate never changes, your monthly payments remain the same regardless of the market situation. Fixed-rate mortgages are typically offered in 10-year, 20-year, and 30-year plans. Some loans also have a bi-weekly option, which allows you to make extra payments and pay off your loan sooner.

On many fixed rate mortgages, you start off paying more interest than principal in your early payments. But since your principal gets smaller each year, the situation eventually reverses and more of your payments are counted against the actual cost of the loan.

The fixed rate doesn’t apply to property taxes and insurance premiums—these are controlled by the government and your insurance provider respectively. But since your monthly payments are mostly made up of principal and interest, you can expect fairly stable payments with only minimal changes.

Adjustable Rate Mortgages An ARM bases its interest on a third-party index that determines the market interest rate. This means that your interest rates can change from time to time, depending on current market indicators. Some of the commonly used references are the Certificate of Deposit Rate (CD), the Treasury Security Rate, and the Cost of Funds Index (COFI) of the Federal Home Loan Bank.

To protect borrowers from drastic increase, most ARMs impose a cap on either the payment itself or the change in interest rate. For example, a mortgage may allow a maximum increase of 2% each year, no matter what the current rate is. Others may cap the actual amount your payments can go up. Ideally, this will be a “lifetime cap”; that is, the cap applies throughout the life of the loan.

ARMs typically have an introductory period where you pay a fixed or low interest rate for the first few years. This scheme is designed to attract more borrowers, especially in the sub-prime market. Many people take advantage of this structure by enjoying the introductory rate, and then selling or refinancing the home when the rates shift back to normal.

If you are in an adjustable rate mortgage that you cannot afford you may qualify for a loan modification.

What is Sub-prime Lending?

Sub-prime lending is a type of credit given to homeowners who do not meet the criteria for regular (“prime”) loans. A typical sub-prime borrower has a poor or limited credit history and a FICO score of less than 620. These factors make them a risky investment for regular lenders, which keeps them from taking out loans. To compensate for the risk, sub-prime lenders impose higher costs on their contracts. For credit cards, this is usually a higher fee for over-the-limit spending or late fees. Sub-prime mortgages usually have higher interest rates and stricter terms.

Contrary to popular belief, sub-prime lending is a perfectly legal business. But like many new industries, it has been tainted by lenders who don’t play by industry standards. From 2003 to 2007, shady companies have turned up offering terms ranging from unfair to downright illegal. This, along with the economic slowdown, has contributed a great deal to the real estate crisis that forced many homeowners into foreclosure.

Are all sub-prime loans bad?

No. There are actually some sub-prime companies who give you good value for your money. If you find a good lender and stay current, sub-prime lending can have its benefits.

For example, many people use sub-prime loans as a means of credit repair. Basically, it gives you a chance to rebuild your credit history and improve your scores. By keeping up a good record on sub-prime loans, you can eventually refinance to better terms and get back on your feet.

How do I know when a loan is sub-prime?

The first thing you should look at is the cost of the loan. Sub-prime loans have a higher overall cost (including interest, origination and closing fees) compared to prime loans. Although the basic formula is the same for both types, the pricing for sub-prime loans is more noticeably risk-based. A low credit score, small down payment, and other negative factors can greatly increase the cost of a sub-prime loan.

Another common feature is the prepayment penalty. Prepayment is when you pay more than the minimum monthly amount, or pay off the loan ahead of schedule. The penalty is to make up for lost interest on the lender’s part. Because you’re getting off early, the lender stops earning regular interest—and naturally, they charge you for it.

Many sub-prime mortgages follow the 2/28 structure. This means that you pay a fixed interest rate for the first two years, after which the loan switches to an adjustable rate where your payments are determined by market indicators. Often, the introductory rate is higher than the current index and the margin is applied once the loan shifts. For example, a lender can give you an intro rate of 8% while the index is currently at 4%, with a margin set at 6%. Assuming the index stays the same, your rate can jump to 10% when your two years is over.

What can I do if I’m in a sub-prime loan?

Fortunately, there are laws in place to protect borrowers in any loan, prime or sub-prime. For instance, the Real Estate Settlement Procedures Act (RESPA) requires all lenders to give you a good faith estimate of the total cost of the loan before closing any deals. This prevents any third party, such as mortgage brokers, from making any kickbacks at your expense.

All mortgages are also covered by the Truth in Lending Act (TILA). This law gives you the right to know the full lending terms and loan costs in any credit transaction, including credit cards. The TILA allows you to opt out of a transaction within a reasonable time if you don’t agree with some of the terms.

If a sub-prime mortgage has put you in financial difficulty, another thing you can do is apply for a loan modification. This is basically an agreement between you and your lender to change the terms of your loan on account of your financial situation. Our loan modification attorney system will help you present your case and use the above mentioned lending laws as leverage to get you more reasonable rates. If you’re already in foreclosure, this will also stop the process while you work out better terms with your lender.

Loan Settement Case Studies

Keep or Sell Your Home?

Not qualified or dont want to stay in your home? We can link you with a short sale specialist for a quick sale.

Other Debt Solutions

Not sure if Loan Modification is right for you? Find out about additional debt solutions.

Loan Modification Application

Please complete the following loan modification application in full so we can completely review your case for a pre-approval. We need all of the following information to determine if your case is acceptable or not. We only accept loan modification cases that have a high probability of success.

The 4 step application typically takes between 10-15 minutes to fill out. Please keep in mind that the more information you give us, the better we will be able to determine the probability of your case. If you have any questions filling out the application please do not hesitate to call us at 877-733-4786 x 801.

About Us

Our team has been helping homeowners legally save their homes since 2007.  Our mission is to get through these tough economic times by helping homeowners stay in their homes.  A loan modification is for homeowners who have experienced a financial hardship and need to restructure their mortgages to make their payments more affordable.

Loss Mitigations LLC provides paralegal services for a network of Loan Modification Attorneys that can help you avoid foreclosure and help you stay in your home. Our website is a great portal for current information about the loan modification industry as well for learning the process and procedures for obtaining the best home loan modification.

LOSS MITIGATIONS LLC is Licensed, Insured, Registered and Bonded


Loss Mitigations LLC is a registered, bonded and insured to provide Legal Document Assistant, Unlawful Detainer Assistant and Bankruptcy Preparation in accordance with Division 3, Chapter 5.5 of the California Business & Professions Code (commencing with § 6400). Under this law, any non-attorney individual or company providing “self help legal services” is required to register and post a bond before offering services to the public. San Francisco County registered and bonded LDA #2011-000052, expires 07/09/2013. Loss Mitigations LLC and its agents are not attorneys or accountants. Loss Mitigations LLC and is agents can only provide self-help services at your (general public) specific direction. Loss Mitigations LLC is not a Law Firm, CPA Firm, Real Estate Broker, Financial or Securities Adviser, Insurance Broker, Debt Settlement or Credit Repair Company.


Loss Mitigations LLC is contracted as a Paralegal to work under the direct supervision of licensed and experienced industry professionals to provide client intake, document prep, and paraprofessional services to the licensed law firms client only. NO UNAUTHORIZED PRACTICE OF LAW OR TAX ADVISE will be rendered to the general public in accordance with local state and federal laws.


Paralegal services are provided under contract with licensed attorneys, pursuant to California Business & Professions Code § 6450, et seq.




Click here to view photo of Carl Hilsz in discussion with Sr Vice President of BofA Matthew Vernon


Carl Hilsz, founder of Loss Mitigations LLC, is a leader in the “self-help legal and consumer advocate” movement, with specialized expertise in assisting self-represented parties as they make their way through the courts and governmental agencies. Prior to establishing his Legal Document Assistant practice, Carl Hilsz worked as a paralegal in both law firm and cpa environments. He is a founding member of Nhora, past branch manager of one of the largest mortgage brokers in the nation,community leader and is committed to servicing the latino and ethnically diverse market place while maintaining a non discriminatory view on providing affordable solutions to all.


Carl Hilsz currently serves as President of the Loss Mitigations Alliance, a nationwide organization dedicated to protecting consumers and ensuring the integrity of the legal document preparation and paralegal profession in the loss mitigation market place. In 2009, He authored several do it yourself manuals, has produced and presented at lender sponsored events such as BofA and many lender outreach events. Loss Mitigations LLC is a member in active standing with the BBB, Chamber of Commerce. 


In 2009, Loss Mitigations LLC supported the lobbyist to modify California’s passed SB94 and the In 2010 the NEW FTC Advanced Fees Laws to protect the consumer, preserving the LDA profession and protecting the rights of consumers to choose from among a number of options to meet their self-help legal needs.


Founders Education and Certifications

Bona-fide Paralegal, HonorsSFSU
• Top Business Litigation Student
• Legal Research and Writing
B.S. in Social Science and Minor in Criminal Justice, SFSU, San Francisco California
Certified Mortgage Planning Specialist

Loss Mitigations Expert Witness

Continuing Legal Education (CLE) 


Professional Affiliations

San Francisco State University Alumni Association

Have a look around our website for useful information and give us a call if you have any further questions.




Loan Modification Recovery Plan

What to do During the Stressful Time

Do not panic, and certainly do not file bankruptcy hastily.  Remember that 4 out of 5 bankruptcies fail.  So begin by taking advantage of the other possibilities such as a loan modification. During the foreclosure process no one can take your home until there is a trustee’s sale, which takes approximately 90-120 days after default notification.  Therefore, if you begin the loan modification pr ocess in the early stages of foreclosure, you will be able to examine all of the options available to get you the best results.

Beware of Scams

Be aware of predators like collectors and con artists who love to prey on the desperation of people in trouble. Remember, if it sounds too good to be true it probably is not.  Do not believe anyone who guarantees specific results. There are no guarantees.

Spend Your Time and Money Where it is Most Important

Your home is your most important asset.  Try not to be bothered by other credit card creditors who are harassing you with phone calls, remember that they will use any trick possible to collect their debt because it is unsecured. Focus on saving your home first with the help of our Loan Modification Attorney.

Do Not Procrastinate

We know it is tempting to hide out and try to avoid all the stress, however, the longer you wait the fewer options you have, until you eventually have none left.  Your payments will continue to accrue. Sitting back and taking no action allows your lender go through the steps necessary to sell or repossess your home. No matter how fast we work for you, your mortgage lender still needs time to process your approval.  So don’t wait, get started today.

Recovery Plan Steps

Step 1: Get Your Sanity Back

Stop worrying about the harassing phone calls. Guilt is something you do not need right now.  Do not allow creditors to drive you crazy. The creditors do not care about you. They will still harass you regardless of what you tell them. Focus first on saving your home and getting back on financial track.

Step 2: Plan Your Recovery

Now that you can think straight, plan your attack. This is a war that you can win. The plan can be simple. First, look at what went wrong, and what you can do to recover quickly. Then plan on what you will do to stay on track with your mortgage once you have recovered. (We can help you with your mortgage but it is up to you to plan your personal recovery and make it happen)

Step 3: Get Back into the Drivers Seat

Focus completely on your recovery plan.  Get your finances in order. Take care of business (get a new job, second job, roommate to share expenses, realistic budget, etc.)

Step 4: Start Saving

Catch up on your essential payments before you can start saving.  Essentials are food, medical needs, utilities, etc, Do not use Credit Cards.

Step 5:  Hire an Attorney & Start Your Loan Modification Processs

You will need some time before you get a response back from your lender, usually 30 to 90 days.  If your lender approves your loan modification, your savings should be substantial enough to save your home

More about Debt Settlement and Debt Settlement Attorney Services ...

Loan Modification Case Studies

It is interesting to see how this economic crisis has affected just about everyone. You see modest homeowners facing foreclosure as you see the owners of big mansions struggling to keep them. It doesn’t matter how big or small the house is, it is not immune to these economic downturn effects and that is why a Loan Modification can make a huge difference as our recent success stories show.

Citi Group Loan Modification

In this particular case the borrower has a loan with Citi Group & came to us when her sale date was just days away. With a payment of $1,940 & an interest rate of 9.75% our client felt hopeless. In less than 48 hours we stopped the sale date & started negotiating for better terms. She was shocked when she found out that her modification request was approved & her interest rate was reduced to 6% & her new payment would only be $1,182. Not only did she get a $758 reduction in her payment but she was not required to come up with a down payment and all the late payments were placed on the back of the loan.

IndyMac & American General Loan Modifications

We recently worked on a case in which the borrower was behind on both his 1st & 2nd mortgages and had a sale date set for his house. After stopping the sale date we worked out an agreement with both lenders. IndyMac reduced his mortgage payment from $4,500 to $3,900. The borrower would have to make six consecutive timely payments in order for his modification to become permanent. This new payment will allow our client to save $600 every month. American General also reduced his interest rate to 2.25%, reduced his payment by $105, & $4,000 of accrued interest were completely forgiven!

A Principal Reduction is Possible

It is true that most lenders are not willing to reduce the balance of your loan but it doesn’t mean that it is impossible. It is important for you to know that a principal balance reduction will not happen without the help of a skilled & knowledgeable negotiator. Our Loss Mitigation Department recently negotiated a balance reduction of $50,924 with Chase. They also dropped the interest rate from 8.35% to 3% on a 22 year period and the client’s mortgage payment was reduced $434.

AHMSI Loan Modification

AHMSI is one of the lenders that have been actively participating in modifying thousands of loans. We recently had a remarkable success with one of our clients who has AHMSI as his lender. When we took on this case our client’s mortgage payment was $2,266 per month. By the time we finished the negotiations our client was granted a 2% rate that would gradually increase to 5% over the next five years and would remain fixed for the rest of the life of the loan. Our client’s new mortgage payment is now $1,225 and that is a savings of $1,041 per month.

Stories like this prove that a loan modification is definitely the best way to avoid foreclosure.

Countrywide / Bank of America Successful Modification

We recently had another success with a client that has a loan with Countrywide (now Bank of America). When we started working on her case she had a mortgage payment of $2,725 per month. After a couple of months of negotiating with her lender we were able to put her in the Making Home Affordable Plan. With a new payment of $1,932 and a savings of $793 per month, she’s now able to afford her mortgage.

NationStar Mortgage Modification

Another one of our clients has a loan with NationStar Mortgage. His payment was $913.60 a month and after our work was completed we got him a 30 year fixed rate of 5.5% that resulted in a reduction of $241.30. His new payment is now $672.30 and he’s able to comfortably pay his mortgage every month.

Countrywide / Bank of America Loan Modification

One of our clients was experiencing financial difficulties that led to default. His loan was with Countrywide (Bank of America) & he was paying $2,260.00 a month, had an interest rate of 6.880% & was 4 months behind when he came to us for help. It took approximately 8 months to complete his modification but the results were great. Not only we were able to lower his mortgage payments to only $1,300.00 allowing him to save $960.00 every month but also got the lender to reinstate the loan by adding the $27,000.00 that he owed to the back of the loan. We always advice our clients to be patient since Loan Modifications don’t just happen overnight and this case is a perfect example of what can be achieved with reasonable patience & the right team.

Successful GMAC Modifications

GMAC is one of the few lenders that has been active in their efforts of helping homeowners in need of a loan modification. Not only do they offer additional workout options for those who don’t qualify for the Making Home Affordable Plan but they also do it at quicker pace.

Below are a few cases in which homeowners are now saving a significant amount in their monthly mortgage payments.

Case 1

Our client was granted a modification just 2 months after we started working on his case. He received a 36% decrease in his payments resulting in a $1,099.00 monthly savings.

Case 2

After just 2 ½ months our client received a 28% decrease in her monthly mortgage payments and is now saving $628.00 per month.

Case 3

3 months after we submitted her modification request our client received a 17% reduction in her monthly mortgage payment and now saves $310.00 a month.

Bank of America Loan Modification

Bank of America was being severely criticized because of their unwillingness to modify loans under the Making Home Affordable Program. However, they have been making an effort to increase the efficiency of their Loan Modification System.

We recently had great success with one of our clients who has Bank of America as her lender. She was granted a making home affordable loan modification just 4 months after she hired us. S he received a significant reduction in her monthly mortgage payment. Her original payment was $2,700 and she had an interest rate of 8.99%, and even though she had not yet missed a payment she was really nervous as she knew she wouldn’t be able to remain current for much longer.

Her new payment is now $1,539.98 and she will be saving $804.57 per month. She now only has to complete her 3 month trial before the modification becomes permanent as that is a requirement for all Making Home Affordable Loan Modifications.

We are glad we were able bring some financial relief for her family. We are hopeful that this Loan Modification will allow her to make her new mortgage payment comfortably.

Bayview Loan Modification

One of our clients has a loan with Bayview Loan Servicing. He came to us with a monthly mortgage payment of $4,500.00. He knew he was imminently headed for default if his payments weren’t adjusted. We were able to help him save $2,200 by reducing his mortgage payments to $2,300 a month.

Carrington Mortgage Loan Modification

This client was upside down on their house by 30,000. They attempted to refinance with the original broker, however with no equity in their home the banks would not take that risk. With a 10.10% adjustable rate mortgage the client has to do something or else the mortgage payment is completely unaffordable, leading them down foreclosure lane.

Original Loan Information Modified Loan Results

Loan Type Adjustable Rate

Original Teaser Rate 6.50%

Amortization 30 Years

Current Rate 10.10%

Principal Balance $625,000

Monthly Payment $5,675

Amount Behind $17,025

Home Value $605,000

New Loan Type Fixed Rate

New Fixed Rate 2.75%

Principal Forgiveness $10,000

Total Monthly Savings $1,750

As a trusted source for homeowners in need and our staff is dedicated to providing you with top professionals that specialize in loan modifications and how to safely avoid foreclosure. As we all know the housing crisis brought about by predatory lending practices has increased mortgage foreclosure filings to a historic high. Regardless of the reason you are in foreclosure, the home mortgage lending market is flooded with foreclosures providing a huge incentive for lenders to consider alternatives to home foreclosure.

Lenders are more likely to consider alternatives like loan modification or other loss mitigation options with responsive, proactive borrowers who seek help before the foreclosure process is necessary. If you have already received a notice of default from your lender, act now, penalties and fees are adding up and you have options.

Let our experts help you find a professional who specializes in stopping foreclosure. Fill out the form below to begin today!

What is a loan modification and how can it help me?

A loan modification is when a lender or loan servicer modifies the terms of a loan which they currently collect payments on. The purpose of a modification is to create a payment that the homeowner can afford based on their current financial situation, and to re-establish a loan which will perform and give the holding lender an efficient return on their investment. Loan modifications are granted on an individual basis, targeting homeowners who for whatever reason are having problems making their current payments, and do not have an option to refinance their mortgage, sell the property, or improve their financial situation. Loan modifications stand apart from refinances with no transfer of property between lenders, no new liens recorded in public records, and no new accounts on credit.

Loan modifications are accomplished through a detailed negotiation process between the servicing lender and the requesting party. A successful modification will drastically reduce the homeowner’s monthly mortgage payment(s) to a level which they can realistically handle, which means final results are determined by their true expenses and affordability. The method of obtaining the needed mortgage payment can be accomplished by one, or a combination, of the following; interest rate reduction, term extension, principal balance reduction, and/or converting payments from principal and interest to interest only. This renegotiated not only helps homeowners avoid future turmoil, it also helps save those who are currently delinquent, and in jeopardy of losing their home.

Whether you are currently making your payments on time but foresee yourself falling behind in a matter of months, or are already several months behind and weeks away from foreclosure, modifications can help you! In the currently volatile economy, many home values have depreciated and income levels have dropped. Because of this, getting out of what could be a painful mortgage is not possible, leaving many with the only option of foreclosing. A modification will allow you to get your goals accomplished and avoid future foreclosure, leaving you with a payment that you know you can make. Not only does this negotiation prevent future hardship, it can also help you get caught up if you are behind. Once you fall several months behind, a large lump sum is required to be paid to come current. Loan modifications while focusing on future payments will also help alleviate delinquent payments. Negotiations should address the delinquency and any other problems, so you have all of your hardship wiped away at the same time. Mortgage modifications for many equate to a home saving necessity, and a fresh start with true relief from their unavoidable hardship.

How do I qualify for my loan to be modified?

Various circumstances and situations will qualify one for a loan modification. An easy way to know you may be a candidate is you are financially "hurting" when it comes to meeting your monthly obligations. Living paycheck to paycheck, paying bills with credit cards, and depleting your savings are all vital signs that you may need a loan modification. Most people at that point approach a refinance, which is where many are finding they run into a wall. The most common reason for not qualifying for a refinance is the home’s value coming in less than what is owed on the home, otherwise known as being "upside down". The second factor that will hinder one obtaining a new loan will be overall credit ratings. With a tightening finance market, top tier credit is generally needed to obtain a competitive loan with an affordable rate. Many are finding that without high credit scores, they do not have sufficient credit to get a beneficial loan. Lastly, due to many wage and hour cuts across the board, many homeowners no longer meet the debt to income ratio requirements for extended financing. The reduced income works against increased bills and generates monthly debt levels that are too high. All of the examples given are prominent suggestions of one who needs assistance through a loan modification.

What type of person can do a loan modification and where should I look?

Anyone can attempt to negotiate a modification, however not many have the needed time or ability to do what is needed on their own. When negotiating a modification, lots of time is spent on the phone and at the fax machine. You need to be very patient and willing to take a little bit of "heat" from the lender representatives. Typically, the best modifications are performed by Attorney backed firms who specialize in modifications. Many companies offer assistance with loan modifications but do not have the experience or knowledge to negotiate with these powerful lenders, nor do they have an Attorney to back their services. When looking for a modification company, make sure you confirm whether or not they are an Attorney backed firm. We can help you get in contact with the right person by simply filling out our 30 second form

Mortgage Help? Get a Loan Modification

Congratulations on making the decision to discuss your loan modification options.

With years of loan modification experience, our specialists are experts at negotiating with lenders. When you complete the form below, one of our loss mitigation specialists will contact you to complete the contract process. This process takes less than 10 minutes from start to finish and will allow us to begin the negotiation process. To get started, please fill out the form below and expect to be contacted.

Interested, But You're Not Sure What Loan Modification Is?

A Loan Modification is "a permanent change in one or more of the terms of a mortgagor's loan, which allows the loan to be reinstated, and results in a payment the mortgagor can afford." In other words, your interest rate can be lowered, your remaining balance re-amortized and/or the current term of your loan extended, in order to reduce your monthly payment.

There are costs and fees associated with a modification that you will be responsible for, and for which you will have to make an immediate payment.

In order to qualify for a Loan Modification, all property taxes must be current, or you must be participating in an approved payment plan with your taxing authority.

If you have any additional liens or mortgages with other lenders – they must agree to be subordinate to the first mortgage.

What is Foreclosure?

Foreclosure is the legal proceeding when a lender obtains a court order giving the lender the right to resell the property. This normally takes place when an owner buys a property and takes out a loan, or mortgage, to pay for the piece of property. If the property owner misses one or more payments, the foreclosure process may begin with an official notice or call from the lender demanding payment.

Who is affected by Foreclosure?

Foreclosure is affecting more people now than any time in US History. Foreclosures nationwide increased 225% from 2006 to 2008, with 1 in 54 homeowners receiving foreclosure notices in 2008. Final numbers for 2009 are expected to be as high, or higher, than those in 2009. The states that have been hardest hit by foreclosures were the same ones that that recorded record high housing price increases in the late 90s to around 2005. These states included California, Nevada, Florida & Arizona.

It is expected that 12.1 million home owners, or 21% of all homeowners, will fall into foreclosure by 2013.

While it used to be true that Foreclosure affected only lower income individuals, this trend has not been the case in recent years. The rise in exotic mortgages in the late 90s and early 2000's coupled with the steep decline in housing prices in the last few years has made foreclosure a reality for nearly all segments of our society.

How does the Foreclosure process work?

Foreclosure processes vary from state to state but they do generally follow the same general process. The information in this section refers to California procedure but may be used a general guide for other states. You should review the official website of your state to look for state specific processes and information.

As is mentioned in the first section above ("What is Foreclosure?"), your first indication of a pending foreclosure is a demand for payment from the lender after one or more missed payments. If you do not respond to this demand or can't come to an agreement with your lender, a Notice of Default is filed with with the county Recorder's Office. The home owner will also be served with the Notice of Default.

Once the Notice of Default is filed, the 90 day Reinstatement Waiting Period begins. This waiting period is designed to give the home owner the time to pull together enough money to bring the debt current and pay off overdue payments.

After the 90 day waiting period, a Notice of Sale of the property can be issued and the home owner must be served with the notice. The notice of sale must be published once per week for a period of a least 20 days.

When the 20 day publication period is up, the auction for sale of the home can be held.

Altogether the minimum time that between the filing of the Notice of Default and the home auction is 111 days.





What is a Loss Mitigations ?

A loan modification happens when a borrower, who is facing great financial hardship, manages to work with the lender to change the terms of their mortgage loan. The changes may be permanent or temporary and usually focuses on the interest rate, length of the loan or the monthly payment.

Who can qualify for a Loss Mitigations ?

Anyone facing serious financial hardship who expects to be in danger of home foreclosure should consider a loan modification. The final judge on who is eligible for a modification is the lender holding the loan so the criteria changes from situation to situation and lender to lender. There are also varying circumstances that can affect a homeowners chances if they have heavy debt or if they are filing for bankruptcy.  We assist our clients in determining when to apply for a loan modification if they are also in need of bankruptcy, some may need to file before, some after their loan modification.

In general, you can refer to the following guidelines or your lender's published guidelines.

Most lenders will not approve a loan modification unless someone has a high rate of mortgage debt compared to income. In addition your home likely would have to be worth less than the total amount of outstanding mortgages on the property. In addition, a borrower would have to have a realistic chance of keeping up on the modified loan amount.

If a homeowner purchased a home and took out loans that they clearly could not afford, a loan modification is not a likely outcome. People in this situation would instead likely need to pursue Foreclosure, Deed in Lieu of Foreclosure, Short Sale, Bankruptcy or a combination of these options.

How does the Loss Mitigations process work?

The general process of a loan modification involves convincing the lender that you face a grave financial situation but that you can also keep up to date on the modified monthly payments.

In order to prove these, you need to present a complete picture of your current financial situation as well as an idea of what can be expected in the months and years ahead. A borrower would also need to speak to the correct people at the lender to make sure that the person has the authority to make decisions and enact any agreement made.

Once you have proven your current hardship and your future ability to keep up on payments an agreement is signed by all parties and a borrower will receive and outline of their new payment responsibility.

Real Estate Judgments

What are Real Estate Judgments?

Real Estate Judgments are court orders that a homeowner or borrower may receive in regard to a piece of property that is currently or previously owned. These judgments usually order the person who receives them to pay more money regarding a piece of property.

Many times the person who receives the real estate judgment is not aware that they may owe more money on a real estate issue that they thought was resolved.

Who is affected by Real Estate Judgments?

There are many types of real estate judgments but the ones that usually catch people by surprise have to do with either a home that was Foreclosed and sold at auction or home that was sold through the use of a Short Sale.

In some cases a person may also receive a Real Estate Judgment after being involved in a Deed in Lieu of Foreclosure agreement with their lender.

In most cases people are surprised by Real Estate Judgments because they did not use a skilled and knowledgeable attorney when going through the Foreclosure, Short Sale or Deed In Lieu of Foreclosure process. It is best to have a skilled attorney take the lead with any of these complex real estate situations but you should at least have the paperwork reviewed by an experienced attorney before going through with these transactions.

Contact us today for a free consultation or check out our Menu of Services to determine see if any of our Self-Help Services would be useful for your situation.

How does the Real Estate Judgment process work?

The two main situations that cause Real Estate Judgments are when a home is Foreclosed and when a Short Sale goes through. Each of these is discussed below:

Real Estate Judgments - Foreclosure:

The people that get into trouble after a Foreclosure are those that had taken out a home equity line of credit or some other kind of refinance after the original date of the purchase. In California, the holder of a second mortgage (or third, fourth, etc) can still come after a borrower for money, even if a Foreclosure and sale at auction has already occurred.

Real estate Judgments - Short Sale:

Real Estate Judgments resulting from a Short Sale can happen in the same way that they occur after a Foreclosure. The holder of a Second, Third or Fourth mortgage on the property can legally come back for compensation from the original borrower. If the subsequent lenders (2nd, 3rd, etc.) are not included in the Short Sale agreement in a legally binding way, a person may be opening themselves up to a future Real Estate Judgment.

There is also another reason a borrower may receive a real estate judgment after a Short Sale. For some background on Short Sales, click this link: Short Sales.

The difference between the amount owed on the loan and the home sale amount during a Short Sale is sometimes called a deficiency. The lender may or may not waive this deficiency. If the deficiency is waived by lender, the seller in the Short Sale transaction does not have to pay the deficiency in the future. If the lender fails to waive the deficiency in a legally binding way, the seller could have to pay this back in the future.

Check out our menu of services or contact us today for a free consultation to make sure that you are protected from future Real Estate Judgments.

What is Home Reinstatement?

Home reinstatement has several meanings that can vary from lender to lender.  The specialized meaning that we are discussing is the process of a homeowner getting their house back after a Foreclosure takes place.

People are sometimes surprised to find that with the right guidance and in the right situation, a person can get a home back after Foreclosure.

Who can qualify for Home Reinstatement?

Home reinstatement can only realistically happen in certain situations.

To be eligible for home reinstatement a person must have had their home Foreclosed. If a Short Sale or Deed in Lieu of Foreclosure was used, home reinstatement is not a likely option.

The next requirement is that during the Foreclosure auction, it did not sell to an outside third party. When a home does not sell at auction, the bank or lender retains ownership. When a bank owns a property after foreclosure it is referred to as "Bank Owned" or "Real Estate Owned (REO)".

Though it is not a requirement, home reinstatement is much more likely if the person involved has at least half of the past due loan amount on hand. A person that is pursuing Home Reinstatement must prove that this home will not be foreclosed again.

How does the Home Reinstatement process work?

Once the above conditions are met, there are two avenues to home reinstatement. In both of the following situations, it is important to note that the final decision is at the grace of the lender. A person pursuing home reinstatement must prove that they can now afford the home

The first avenue to home reinstatement is known as Rescinding and Reinstating a loan. For this type of reinstatement an experienced attorney analyzes all of the foreclosure documents looking for a mistake on the part of the lender. If an error is found, a person has an opening to get their Foreclosed home back. After agreement with the lender, the previous loan is activated again and the homeowner can move back into their home.

The second path to home reinstatement is called Redemption and it is an exceedingly complicated legal matter. home reinstatement by Redemption would only be considered after all loan and Foreclosure documents are reviewed and no lender errors are found. An experienced and reputable attorney would sit down with a client and weight the costs and benefits of Redemption before moving forward with this process.

If you would like to see if we can help then CHECK HERE TO SCHEDULE APPOINTMENTree Consultation


Consulting Defend your Rights & your Business.


Civil & Criminal from Consumer Protection to Online Fraud. 


Fintech Software as a Service Payment Integration.



Get a Quick Quote