I have a little confession….

In September of 2007 when the mortgage crisis started with the collapse of the sub-prime lenders …my mindset about the troubled homeowners was different than it is now.

Like millions of Americans I thought that it was the 100% responsibility of the homeowner…..in other words….it was the borrowers fault that they were losing their home.

Guess what, I was 100% wrong.

The simple fact is that many borrowers were scammed. No question.

The mortgage credit was flowing so fast..the lenders were giving out loans to anyone who could fog a mirror. Often times the lenders themselves were breaking the law to close these loans. The truly horrible part of what is happening as a result of the ‘Mortgage Money Induced’ greed is that now millions of families are losing their homes.

Julie and I have recently been in some of the hardest hit areas in the US. We have seen the ghost towns in the Inland Empire of California..we have walked the neighborhoods in Nevada and Arizona. When you see a families possessions being tossed out into the front yard of the recently foreclosed home your mindset about this crisis will change.

Its time to help homeowners fight back. Learn how to help homeowners in your community do loan modifications. Helping a homeowner who is in trouble is the first step you should be taking before pursuing a short sale.

Here are 3  common things to look for when you start the Loan Modification process…

1) Is the mortgage that was promised the one the borrower actually got? Are the terms the same? That is, is your Annual Percentage Rate (”APR”) the same as the one you were quoted? Are your total monthly payments the same as you were told they would be? Is there a prepayment penalty, and if so, were you told about this prepayment penalty?

2) Here is another common issue…if the mortgage was refinanced and it was a primary residence, look for a form in the borrowers closing docs called “Notice Of Right To Cancel”.  Also called the Three Day Right of Rescission. Meaning the borrower has three days after signing loan documents to change their minds and cancel the loan. The borrower must be told of this right in writing.

3) Lets assume that the lender didn’t have the borrower sign the ‘Notice Of Right To Cancel”.  If thats the case the right of rescission may be extended for up to three years! When the right is extended for three years you can rescind the loan at any time before three years, meaning that the loan is treated as if it never existed. Essentially, you become entitled to all profits made by the creditor as a result of this loan. This means that the creditor must refund all interest paid, all closing fees, all broker fees, and even pay for your attorney fees. As you can imagine, this amount can be quite significant. The extended right of rescission is a powerful tool to help borrowers who have been victims of predatory lending, and helping our clients exercise this right is often the first step in holding a creditor responsible for illegal behavior.

Helping homeowners modify their loans is a great way to help homeowners fight back…and earn a great living. Learn how to start your own mortgage loan modification business now. Watch the Agent Loan Mod Secrets video now.

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