Do-It-Yourself Loan Mod Tool
Los Angeles-A new DVD offers homeowners in distress a loan-modification tool that opens the door to a more affordable, do-it-yourself approach to modifications.
It is known that homeowners in distress intimidated by the traditional mortgage process tend to avoid contacting their servicer. LoanModDVD could help millions of Americans who are as intimidated by the complexity of loan modifications.
LoanModDVD creators say most of these homeowners can benefit from the new affordable and easy-to-use, do-it-yourself tool instead of turning for help to high-priced lawyers and other mortgage default service providers. Using patented online software, LoanModDVD provides step-by-step instructions and all the necessary forms borrowers need to apply for a loan modification without third-party assistance.
There is a growing need for loan modifications, says LoanModDVD co-founder, Amir Fathi, and president and CEO of Silverstone Investment Group, so the DVD is available online for $99, compared to thousands of dollars charged by law firms, he added. "Our goal, not only as the creators of LoanModDVD but also as industry professionals, is to help halt the ongoing foreclosure rate that is hurting this country so much," he said.
The DVD includes a step-by-step guide to modifying a loan online. Using the LoanModulator software homeowners can calculate their loan's modification and come up with a new suggested interest rate they can negotiate with their lender.
They also receive a "hardship letter" sample and a loan proposal worksheet, individually customized income and expense worksheet, and inside tips on exercising a homeowner's legal rights. In the end, it is up to a homeowner's discretion to make an informed decision whether they need additional legal assistance.
"Most lenders are currently being overwhelmed by loan modification inquiries," said LoanModDVD co-founder Maz Badie, president and CEO of Exclusive Partners Inc., a real estate firm in Los Angeles he founded in 2003. "Many are understaffed and are using banking customer service representatives to answer questions regarding loan modification, most of whom are not knowledgeable enough to properly answer your questions over the phone. LoanModDVD will teach you how to submit a professional loan modification proposal that goes directly to a loss mitigation underwriter, not just a customer service representative."
Mr. Maz said over the last couple of years his firm has seen thousands of people "coming to us, asking for help in modifying their loans ... and many people want to charge them even more just to submit applications with no guarantees of success."
The LoanModDVD creators do caution borrowers to use the information properly. If properly used the DVD can help distressed homeowners lower mortgage rates and reduce payments by up to 40%. Also, they can convert an adjustable-rate mortgage loan into a fixed-rate long-term loan and they can combine a first and second mortgage into one low fixed rate.
While results are bound to vary according to different loan amounts, loan types and interest rates, ultimately the software "will calculate what type of rate and payment homeowners should ask for in their package." Homeowners are also briefed on basic facts such as lender acceptance of a loan modification application even if homeowners are not facing foreclosure, and even if they have not defaulted on their payments "as long as they can prove their current hardship." LoanModDVD shows homeowners how to properly put together the right type of loan modification package, which can get their proposal approved without needing to be late.
The creators of LoanModDVD say their primary goal is to slow down the current foreclosure epidemic, save homeowners thousands of dollars in legal fees and provide lenders with more uniform loan modification packages. Differently from other loan modification options, it offers borrowers a hands-on approach to the solution that may ultimately benefit lenders, too. So far loan modifications such as CitiMortgage's "Homeowner Unemployment Assistance" or the much-talked-about Hope for Homeowners program are options given to the borrower by the lender, not the other way around.CitiMortgage started HUA to enable delinquent customers to pay a mortgage reduced to an average of $500 for three months, available over the next two years. CitiMortgage CEO Sanjiv Das said the program is one way borrowers can reduce credit losses.