Loan mods are done in loss mitigation, which helps the lender not you

It has never been about saving your home. It has always been about saving the Investor’s and Servicer’s bacon.

Did you know that there is a special department within the servicing company that is called “Loss Mitigation”? More importantly, did you know that this is the department that reviews your request for a loan modification?

Why is this important? Because of this one reason: the department is entrusted to work out a solution that is most profitable and least risky to the bank or investor, not to you. You are in the wrong department to get help for your hardship.

This is why most companies today urge you not to work with your bank directly. You need a legal professional that is working for your best interests, just like the bank has attorneys working for their best interest.

And you need to empower those legal professionals working for you with forensic loan audits and securitization audits so that they can give the bank real reasons why the bank should give you a good loan modification.

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The Investor is the actual owner of your loan. The way things are currently set up, these investors hide behind a veil of secrecy, having farmed your loan out to a servicer of their choice to do their bidding.

The Servicers and the Investors work together on behalf of each other. Often the Investors buy, sell, swap or trade the loans behind the scenes, while the servicer may or may not remain the same.

There are very detailed contracts between the servicer and investor that delineates what the servicer may or may not do with your loan, and very often the servicer will claim that the investor denied your loan modification, when in fact the investor never even needed to review it.

There are many tricks that this secret and symbiotic relationship of people can and have played upon the unsuspecting homeowner.

In most cases, your lender is actually the servicer.

The role of the servicer can be compared to that of a property manager: he collects the rent, sends it to the owner, and evicts you if you don’t pay your bill.

Your Servicer, collects the mortgage payments, sends it to the Investor and conducts a foreclosure and eviction if you don’t pay your bill.

Your servicer makes money if you send in your payment every month, and if you fail to do that, then he makes money by foreclosing on you. The servicer does not make money by giving you a loan modification.

Lenders have been called to task for all the illegal loans that were issued and loan modification became the solution to resolve this national and international crisis (many investors are actually from other countries).

Loan Mods are done by the Loss Mitigation Department. It is important to understand what Loss Mitigation does: Loss Mitigation Departments serve a purpose for the Lender: to stabilize the risk of loss the lender (investor) is in danger of realizing.

Simply put: Loss Mitigation is the department that has been entrusted to “help” you get a loan mod, but their purpose is to minimize the potential risk the Investor could experience. They are not reviewing your file for loan modification. They are reviewing your file to see where the best return with the most amount of safe financial gain is for the Investor.

Loan mods are only approved if the lender will be making more money there than in foreclosure at a lesser amount of risk.

Without proof that your lender has violated laws in your loan or the securitization of your loan, there is less than a 20% chance of getting a loan modification..

What Can You Do About It?

You can turn the tides on your lender. He’s been walking all over you because you haven’t shown him that he’s the one with a problem!

You need a forensic loan audit or a securitization audit &the right kind of professional services to save your home.

Call 702-508-0335 or click to request more information.