FREE Loan Mod Evaluation Can Save You Thousands!

Countless homeowners have hired loan mod companies only to find themselves back in the same place they started but even more in the hole, to no fault of the homeowner. Loan modifications are a very complicated process and the average homeowner is not expected to understand how to tackle it.

But all that has changed with LoanModificationForFree.com and Loan Mod D.I.Y., two services courtesy of The Homeowner Defense Network (The HDN). We specialize in educating homeowners with a mission to keep people in their homes. Our loan modification course is a free service to the public and teaches valuable lessons on how to understand the loan mod process. The course also gives step-by-step tactics to prepare a loan modification that’s in the best interest of you and the lender; our win-wins ensure a higher rate of success!

We’ve helped hundreds of people take the power into their own hands at absolutely no cost to them. Forget loan modification companies that charge thousands of dollars while you’re in a vulnerable financial situation. The HDN offers our expertise for free. Why? Because our company was founded by people just like you. Our founders are homeowners first and industry experts second. Co-founder Jeremy Kossen modified his own home loan prior to launching the company, so we understand what it takes and the hardships you face.

Not only do we have first-hand loan mod experience, but our founders have years of experience working in financial institutions, real estate and foreclosures, and have an inside understanding of what the lender wants. This knowledge is directly transferred to our community of homeowners through educational consultations and services.

Written by our experts and hosted on one of the nation’s leading Internet platforms, LoanModificationForFree.com’s curriculum uses the same technology utilized by many of the country’s top schools offering online courses. That means, you have access to state-of-the-art courses in addition to forums that connect you with homeowners who are experiencing the same or similar situations across the U.S.  – all this at no cost to you.

We have restored hope to countless homeowners by empowering them through knowledge. In addition to our free online course and expert consultations at no charge, our LoanModDIY service is a great next step to preparing for the loan modification. Let our experts help you refine the process each step of the way, serving as you own personal advisor at a fraction of the cost of what you would pay a loan modification company. We can even manage the process for you by preparing the hardship letter and package to submit to the lender. And we’ll serve as your representative during any communication you have with the lender.

The most beneficial aspect of your partnership with The HDN is our proficiency in following the complex guidelines the lender requires but does not necessarily publicize. Our programs are completely different than a traditional loan modification company because they’re based on education and empowerment of the homeowner.

We take the time to understand your situation entirely and then create a thoughtful and strategic plan of action to fight for your home at no cost to you. With The HDN, our programs are flexible and some of them are absolutely free, including our online course and initial consulatations. You decide which services work best for you based on our careful recommendations. You’ll never be forced into using services you don’t need and can also take advantage of our money-back guarantee.

When we take the time to learn about your scenario, we go over all the options that may be available to you, including a loan modification, rate reduction, term extension, balance reduction , forbearance, principal balance reduction program, short refinance, short sale, loan doc audit, different loan mod programs and more.

We’re committed to ensuring you are o the right path, even if you choose not to partner with The HDN. We’ll help you develop a plan of action at NO COST. You have nothing to lose by contacting us today.

Get in touch with us online or call one of our founding experts directly at 619.269.3602.

What to Expect from The HDN

The Homeowner Defense Network handles any type of property across the  United States including commercial. We perform extensive due diligence on our partners and require the utmost integrity of our vendor affiliates. Standard methods we employ and characteristics we look for in partners include the following:

- Professional ethics reviews
- Monitoring track records of success
- Ensuring compliance with state and federal guidelines regarding loan modifications
- Search of unresolved complaints with the Better Business Bureau (BBB) 
- Not accepting every client

Depending on the availability of funds for a borrower and his or her scenario, it will determine which program is best suited for the homeowner. Our most basic program is a free online course on how to obtain a loan modification on your own. Our online classes educate consumers on topics such as foreclosure prevention, loan modification and credit rehabilitation. This community service has positioned us as a credible source on the matter. 

To date, we’ve helped hundreds of homeowners; however, this program is limited. Homeowners have the opportunity to speak with a representative and be upgraded to a more comprehensive program. This program is called Loan Modification Do-It-Yourself (Loan Mod D.I.Y.), and is an inexpensive solution for distressed homeowners who can easily qualify for a loan modification and are prepared to do most of the work on their own. 

Loan Mod D.I.Y. is more comprehensive than the free online course and features a planned voice over and more. It includes professional guided audio lectures, live chat, and forums and tips from industry experts. We provide clients with the tools professionals use to modify mortgages and make them more affordable for homeowners.

Giving the same end result at not even half the price, Loan Mod D.I.Y. was created as an inexpensive solution for homeowners. Additional supplemental services include a forensic loan audit, loan modification proposal, loss mitigation service and more, all of which can be purchased a la carte or bundled together with the Loan Mod D.I.Y. curriculum.

One of our services, the forensic loan audit, helps clients exercise their rights and determines if their lenders violated fair lending laws. If so, the borrower has recourse and powerful leverage to obtain a loan modification and/or principal reduction. Litigation against a lender can be costly and time consuming, so it’s always to advised to contact an attorney to determine if this is a feasible or desirable outcome.

Nonetheless, we have homeowners changing lenders’ minds from a “no” to a “yes” with regards to a loan modification simply with the submission of a forensic loan audit that documents lender violations during negotiations. 

Loss mitigation services work to negotiate mortgage terms for the homeowner to prevent foreclosure.  These new terms are typically obtained through loan modification,  however they could also be as a result of short sale negotiation, short refinance negotiation, deed in lieu of foreclosure, cash-for-keys negotiation or a partial claim loan, to name a few.

All of the options serve the same purpose: to stabilize the risk of loss the lender/investor is in danger of realizing. The different options available to homeowners try to make the homeowner “perform” (pay timely), and cure the potential loss the lender/investor projects with the foreclosure process and auction sale of the property.

Throughout the past months, we’ve worked very hard and diligently to create solid relationships with what we believe to be the best in class service providers/vendors. We ensure the organizations we partner with always have the homeowners’ best interests in mind. When you choose The HDN, you choose experience and compliance. Ultimately, we’re here to help you save your home. 

Free Gift

As a thank you for registering for our loan modification course, we’d like to extend a free service to you. For a limited time, we’re offering your choice of one of the following items:

• Custom loan modification proposal
• Forensic loan audit to determine if your lender was unlawful and therefore liable for damages
• E-book on rebuilding your credit in a bad economy. 

The most common feedback we receive from clients is that they wished they acted sooner, saving thousands of dollars, time and heartache.  Sometimes we receive calls where it’s indeed too late and we can no longer help the person. Please don’t wait until the last minute. Call us today to set up a free no-obligation consultation and receive your complementary gift.

How the Foreclosure Crisis Happened and What You Can Do About It

Loan defaults and foreclosures are at an all-time high, and most national markets are in decline.  This is largely due to mortgage interest rates that are adjusting upwards and the lack of affordability on the borrower. Military families have seen some of the most significant increases in foreclosure.

Many attempts, mostly unsuccessful, have been made by lenders and government agencies to facilitate an economic stimulus and real estate market comeback by offering incentives and access to loan modifications through various programs and government legislation.  

A loan modification provides either a temporary or permanent change in one or more of the terms of a borrower’s mortgage, resulting in a more affordable mortgage payment. The reality is that the state of the economy, slated to be one of the worst recessions since the Great Depression, is not easily overcome.

The situation is partly due to the faulty lending practices by lenders nationwide over the past five years or so, during which government agencies turned their watchful regulatory “eye,” and brokers, agents and borrowers exploited available finance programs. 

We at The Homeowner Defense Network believe that most homeowners armed with knowledge of the loan modification process can obtain a loan modification on their own without having to spend thousands of dollars for a loan modification.

There are, however, circumstances in which a homeowner may need or find it beneficial to pay for professional assistance. Some of these situations include if you are facing foreclosure, have a complicated financial situation or have reason to believe you were the victim of unfair or predatory lending practices.

In these cases and more, a great need has been created for this type of service. Unfortunately, there are many unethical companies looking to exploit vulnerable homeowners. Our objective is to provide distressed homeowners across the country with resources, knowledge, assistance and access to a network of attorneys and professional organizations specializing in protecting homeowners. 

Created by industry experts, Loan Mod D.I.Y. will teach you the secrets and tips that lenders and the loan mod industry don’t want you to know. Attempting a loan modification on your own without first educating yourself on the proper steps and strategies is extremely risky, since lenders may not have your best interest in mind. ONE seemingly minor mistake could not only cost you thousands of dollars, but it could be the difference between getting your modification approved or not approved. Don’t delay, since time is not on yoru side and sign up today.

SB 94 Loopholes for Loan Modification Companies: What Homeowners Should Know

The response to SB 94 from the loan modification industry, including attorneys, was that of outrage. Some attorneys threatened to sue the state. Other attorneys banded together to come up with their own ways of operating within the law that they felt was acceptable; but these options are sometimes questionable with regards to compliance.

Attorneys, brokers and loan modification companies are desperately searching for a loophole in SB 94 so they can continue to operate.

Why Loopholes?

Loopholes are a funny thing. Loopholes can be used for good or for bad. According to Wikipedia, a loophole in a law often breaches the intent of the law without technically breaking it.

When you scour the Internet, including several blogs online, you’ll notice a lot of talk amongst those in the business of loan modification who are searching for loopholes in SB 94. I noticed several discussions just today.

In order to continue to profit, some loan mod professionals are suggesting they charge for other services during the loan mod process, and then collect the remainder of the balance at the end of the modification, or use trust accounts to ensure services are paid for.

Some companies have good intentions with finding loopholes because they wish to continue to serve homeowners in need, but that’s not always the case. If we can determine why certain companies are searching for a loophole, perhaps we can uncover their true intention. But determining intent is neither an easy nor fair task for the borrower to undertake. The last thing a homeowner in distress needs is to have to psychoanalyze a business.

We Empower Homeowners Through Education

We at The Homeowner Defense Network (The HDN) aren’t looking for any loopholes nor do we plan to. This is because it’s business as usual for us and our clients. We have been operating and educating distressed borrowers for years.

Yesterday, today and tomorrow, our premier service offering, the Loan Modification Do-It-Yourself program, will still be making the loan mod process simple and educational for homeowners, empowering them in California and across the nation.

We aim to save our clients money — potentially thousands of dollars — not just on loan modification assistance but also on the home loan itself. More importantly, we save homeowners from companies that operate under questionable loopholes. And ultimately, we keep people in their homes.

Contact us today to learn how The HDN can benefit your home loan.

Obama “Making Home Affordable”

Stay In Contact With Your Lender

Millions of Americans have been affected by the economy and the depressed housing market, creating a climate in which we’ve seen an unprecedented number of foreclosures.

Many homeowners have been affected by a job loss, divorce, a mortgage re-set, a mortgage re-cast, or any number of other potential factors that have made it difficult –if not impossible—to afford their mortgage.

With the economy in shambles, soaring unemployment, foreclosures are occurring at the highest rate in history and no one knows exactly when our economy will recover! No wonder the only companies thriving in this economy are companies like McDonald’s, Wal-Mart, Anheuser-Busch and Pfizer!

But the reality is, most foreclosures can be prevented. While there’s no magic bullet, the most important thing a homeowner can do is….

Stay Positive and Stay in Touch!

Many borrowers are so overwhelmed by their financial situation that they stop staying in touch with their lender. This is a big mistake. Loan modification is getting easier to do with many (but not all) lenders, and with the Obama plan, many lenders have simplified the process. Moreover, the banks have been under increasing pressure on banks to find every alternative to foreclosure for distressed homeowners. I have clients I’ve coached who just 3 months ago couldn’t get their bank to work with them, and now lenders have become much more cooperative.

While trying to keep up with one’s mortgage payments and the threat of foreclosure can create serious financial distress be emotionally draining, it is imperative to keep the channels of communication open.

As my title indicates, more than 50% of foreclosures could be prevented by staying in touch. The lesson is simple: STAY POSITIVE AND KEEP IN CONTACTl!

Why Are So Many Loan Modifications Going Bad?

More than half of mortgages modified went delinquent again within six months. In fact, according to the Office of the Comptroller of the Currency, 57.9% of loans modified in the first quarter of 2008 were in default again by the 8th month.

If loan modifications are supposed to help borrowers, why are so many going bad?

“Toxic” Terms:

Surprise, surprise, but many lenders have not been modifying mortgages aggressively enough to actually make them affordable to distressed homeowners. Some lenders are in fact modifying mortgages with terms that the borrower could never afford. So it’s not a shock that borrowers are quickly in the same place they were before they modified. Often times, the servicer and/or investor wants to squeeze out as much money as possible from the borrower, believing that foreclosure is inevitable. The modified terms may be more affordable than they were before the modification, but they don’t go far enough.

Other Debt:

Many, if not most borrowers, are behind not only on their mortgage debt, but they are behind on payments to other creditors as well such as credit card companies and student loan providers. These borrowers may feel compelled to use the cash they are saving on their mortgage to pay off their other debts. So essentially, their overall relief—if any—is minimal. Many people no matter what the terms of their modification are will never be able to get caught up until they address the other financial problems they are having.

Negative Equity:

Negative equity—or what’s known as the “underwater effect”—has been a major contributing factor in the high default rate of loan modifications. Most loan modifications do nothing to address the issue of negative equity in which a borrower may owe significantly more on the property than it is actually worth. Many of these borrowers have little incentive to keep their homes because it will take such an incredibly long time for them to be in a positive equity position again. They think, “I’m still underwater on my home. Why bother paying the mortgage?”

Overextended Borrowers:

Many borrowers are simply overextended on their home loan. They may have gotten a loan with a short-term teaser rate, but they really got in over their heads, and bought more home than they could ever afford. Even if the lender significantly reduces their payment, it still may not be enough for them to afford the property.

Moral Hazard:

Some distressed borrowers may be expecting another round of modifications if they default again. There is a “moral hazard”: the borrower may feel that since the modification was negotiated once, the potential to renegotiate exists.

Job Loss:

With unemployment headed into double digits, more and more borrowers are losing their jobs. Once they’ve lost one of their main sources of income, the chances of them being able to afford even a modified mortgage are greatly diminished.

Lender vs. Servicer: The Good Old Days

This concept is often confusing to people.

Back in the good old days, it was simple. You went to your local bank or Savings & Loan to get a mortgage. You spoke to your personal banker or loan officer who helped you get a loan.

The institution had lots of customers who put their money with the institution in a savings account, CD, checking account, etc. The institution paid interest to their customers, which gave them the right to use money to lend out to other customers.

You can see why banks did not want to give bad loans to people. They were lending the money of other customers and the loans remained on their books. Likewise, if a borrower got in trouble, they were very motivated to keep them in the home. This was often your local bank in your community. You had developed a personal relationship with them, and they were tied to the community. If the community could get hit hard by defaulting mortgages, so could the bank, hence they were highly motivated to work with you.

The Problem of “Securitization”

But, then this all changed. In the 80s, many Savings & Loans institutions went out of business, and in the 90s something called “securitization” became popular.

What exactly is “securitization”?

Essentially it is a process in which loans are pooled together and then sliced and diced into securities which can then be sold on the secondary market on Wall Street. So basically, you have no idea who actually owns your loan. Your loan probably started with a broker who used a loan originator who then immediately sold off your loan.

The administration of your loan is now handled by a company you’d think was your lender. You send your payment to them, but they are actually just a “servicer”. They get paid to service your loan, but they don’t actually own it.

Lender vs. Servicer: The Challenges

Unfortunately, since they only service your loan, getting a loan modification isn’t necessarily that easy. They are bound by lender guidelines which define what they are and aren’t allowed to do in the event that a borrower becomes financially distressed and must modify the terms of their loan.

To further complicate the issue, servicers generally represent numerous investor pools, all of whom have slightly different guidelines. If they all had the same guidelines, life would be much simpler. You could simply find out what the guidelines were and what kind of modifications were available, and from the outset of this process you’d know if you were going to get approved because there would be no mystery.

Instead, you have to go through a long a laborious process with your servicer to get your modification approved, and ultimately there is no guarantee that it will actually get approved. However, armed with a little knowledge, the process will at least be a demystified for you and you will dramatically increase your chances of getting approved.

Is The Obama Program Working?

It’s been nearly three months since the Obama Administration rolled out “Making Home Affordable”, a plan intended to help distressed homeowners. But, what’s happening? It looks like the jury is still out. Amid all the hype, is the plan living up to its expectations? Thus far, only 55,000 homeowners have been helped, a far cry from the Administration’s goal of seven to nine million.

Even more disturbing, the foreclosure crisis seems to be worsening:

• According to RealtyTrac, a company that compiles foreclosure data, reports that 342,000 households received at least one foreclosure-related notice last month. This is an increase of 32 percent, compared with notices issued last April. It is also the second consecutive month in which more than 300,000 households got a foreclosure filing.

• According to a report from the Federal Housing Finance Agency (FHFA), completed foreclosure sales increased 900 percent between March and April this year.

• According to the Wall Street Journal; on April 15th, 2009, one of the nation’s largest mortgage servicers, GMAC, acknowledged that only 10 percent of their customers that are facing foreclosure actually qualify for Obama’s “Making Home Affordable” program.

While the Obama Administration should be commended for taking a proactive approach by promoting loan modification as a tool to prevent foreclosure, more needs to be done and the administration needs to be honest with the American people about who can realistically be helped with ‘Making Home Affordable’.

There does seem to be some hope. Good news came out yesterday. Citibank, Chase, WAMU and EMC announced they will no longer require homeowners to be late on their mortgages to qualify for loan modification.

I’ve also developed the only truly free online loan modification course. The course is seven lessons and covers all aspects of the loan modification process.

The program is not only good for distressed homeowners, but realtors and CPAs who want to learn more about loan modification. The only requirement to participate is the completion of a brief, one page application, at which point you’ll be immediately provided with a username and password with access to the full loan modification program.