Mortgage-Mod-Monster.com Two Reasons for the Unmitigated Success of the REST Report in and out of Foreclosure Court
Now that we've had a chance to watch the REST Report prove it's magic, we could see why it has the spectacular results it has had. There are two main aspects to the incredible success. A Brief Background: The reader must make sure and separate the mortgage servicer and mortgage investor in their mind. The mortgage servicer is just that, a bill collector. They make their profit in collecting the monthly monies for a performing asset and mortgage investor. Or not. With the current economic crisis and the Home Affordable Mortgage Plan (HAMP), the new designation of 'imminent default' took away the necessity of being 45 days behind. A Hardship letter and current statement of financials is now the requirement to demonstrate imminent default. The distressed mortgage owner is not required to prove hardship by skipping monthly mortgage payments. Unfortunately, many mortgage servicers have used the Imminent Default clause as an excuse to essentially require distressed homeowners to miss mortgage payments in order to qualify for mortgage modification consideration. The disorganization, (either planned or unplanned, you guess) in the mortgage servicer's Loss Mitigation and Foreclosure Departments then invariably led to foreclosure. It is widely known that in almost all cases, the mortgage servicer profits more in a foreclosure than either mortgage modification or short sale. Those of us in the Loss Mitigation industry know that there is a designed process here, but the courts have so far proven to be incapable to investigate or prosecute, the current Foreclosuregate scandal to the contrary.
Up until the spring of 2010, many adept attorneys were getting great results negotiating beneficial mortgage modifications for distressed mortgage owners that couldn't get through to the mortgage servicers themselves. The typical fee was $3000. Last spring, the mortgage servicers learned that no one was going to hold them accountable to negotiate in good faith. The servicers became just as successful at sandbagging attorneys as the homeowners themselves. Suddenly, attorney fees multiplied because of court time, and all of the adept attorneys I was aware of got out of the business. What mortgage servicers may not legally do is foreclose while engaged in a mortgage modification or short sale. Attorneys did not have, or weren't aware of, a recognized, unbiased calculation of Net Present Value to hold servicers accountable for in court. A judge will not permit foreclosure while a mortgage modification or short sale is in the works. No one was around to inform the distressed homeowner of that right. (I will leave it up to the reader to guess as to whether that lack of information was fostered by the mortgage servicers or not.) Mortgage servicers will not reveal their Net Present Value calculation for obvious reasons. So, buy the banksâ€™ software and do it behind their back. It is up to the individual distressed homeowner to claim their right to good faith negotiations, backed up by an unbiased Net Present Value calculation with their mortgage servicer and if necessary, a fair hearing in foreclosure court. The Process: The Net Present Value is a calculation universally recognized by all mortgage lenders as the break even point where the best solution is for that mortgage investor to a non-performing asset. That's bankerspeak for a mortgage that is more than 45 days in arrears. Those solutions include mortgage modification, short sale, deed-in-lieu of foreclosure, foreclosure, and incidentally, bankruptcy. The mortgage servicer has nothing to lose. They profit from all the penalty fees and interest, plus all the other numerous profit generating that a foreclosure represents. The mortgage investor in almost every case, is protected by a Loss Sharing Agreement with the Federal Deposit Insurance Corporation (FDIC) that guarantees 80% of the original mortgage purchase price in cases of default. All the mortgage servicer has to do is use enough treachery, confusion, and subterfuge to discourage the distressed homeowner into utter confusion and fear to drive them away. Then foreclose.
When the distressed homeowner is given the opportunity to calculate an unbiased Net Present Value and submit it as part of a mortgage modification or short sale application, they bypass all the potential shenanigans of the mortgage servicer. It becomes part of the application and potentially a legal document. The REST Report uses mortgage lender software to calculate Net Present Value. There is no escape for either mortgage servicer or investor(s) to consider such an unbiased document. There may be as many as eight, count 'em, eight; separate investors involved in a single property mortgage. Whether the current Foreclosuregate scandal ever gets prosecuted by the 50 state's Attorney's General or not is a prospect that intrigues all of us that observe the distressed mortgage industry and counsel distressed homeowners on how to benefit from the system. But the prospect is moot. The process for a distressed homeowner to successfully negotiate a win-win solution is clear. The nation's foreclosure judges have made it clear they are rubbing their palms together in anticipation of adjudicating any foreclosure process. That leaves the distressed mortgage owner the singlular opportunity to provide a tool for the judge to rap his gavel on the knuckles of any careless mortgage servicer. The mortgage servicer absolutely dare not misplace the REST Report if it can be proved to have been submitted by the distressed mortgage applicant. On an individual mortgage basis, that would be an immediate trip to jail for the offending mortgage servicer company officer. It's just not gonna happen. To be clear, the other main aspect to success in mitigating a distressed mortgage is to prove that the mortgage servicer, and by extension, the mortgage investor(s), received the REST Report and it's inherent unbiased calculation of Net Present Value, along with the supporting documents required by the mortgage servicer in a mortgage modification or short sale application. A hint: do not fax anything, ever. Do not believe anything you hear on the phone, ever. There are too many stories of mortgage servicers foreclosing while in the midst of a mortgage modification or short sale negotiation. The REST Report computes either mortgage modification or short sale as the most efficient solution to a distressed mortgage. The mortgage investor will assuredly jump at the opportunity to resolve the distressed mortgage, given the pressure put on them by the federal government to resolve any mortgage that has an unbiased Net Present Value calculation.
We have yet to see a judge do anything but defer to the REST Report as a positive resolution to a distressed mortgage in foreclosure court. No one can guarantee any future results, but given approximately 1500 REST Report submissions with positive outcomes, in or out of foreclosure court; we are ecstatic at being able to offer such a positive foreclosure avoidance tool. And Lastly: We are finding that there is no financial advantage to hiring a third party mortgage modification negotiator. If you qualify and want a mortgage modification, you can do it all yourself for free with virtually no extra work. Mortgage modification is a Do-it-yourself project. If you want a short sale, regardless of what the REST Report qualifies you for, an experienced distressed property investor can negotiate the best avoidance of mortgage deficiency available, based on your hardship. They will certainly be a better choice than the Home Affordable Foreclosure Assistance option. The HAFA option was written by and for the mortgage lenders. It stacks the deck in their favor because of their incredible lobbying power with the U. S. Congress. No one, homeowners or realtors, who have gone through the HAFA process has anything good to say about it. Again, an experienced investor will have a vested interest in your best interest. HAFA has the best interest for the same mortgage servicer that avoided good faith negotiations with you in the first place. Utilizing an independent investor keeps you in control of liquidating your mortgage. The minute you sign the HAFA commitment letter, you give away all control you ever had to the mortgage servicer. The obvious: I am a proud vendor of the REST Report. I'm not the only one. But I also have the most successful Hardship letter template anywhere. I've watched it succeed countless times. Call Chris at: 970-242-2600 Read more about your Do-it-Yourself Mortgage Modification REST Report Email at: info ‘at’ Mortgage-Mod-Monster ‘dot’ com Please surf: http://www.mortgage-mod-monster.com/
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Published on Nov 18, 2010
Now that we’ve had a chance to watch the REST Report prove it’s magic, we could see why it has the spectacular results it has had. There are...