The big banks have done a lot of wrong, but one of the most shameful things that they've done is deny deserving homeowners loan modifications. Many homeowners have lost their homes because of this. It would be one thing if banks simply denied these loan mods on the spot after accepting the modification applications, but instead, they usually lead homeowners on wild goose chases for months- or years- before denying their loan modification, or will often offer homeowners a loan modification, but with terms that are much worse than what homeowners deserve.
However, there is hope for homeowners who need a loan modification. A qualified, well-experienced attorney is the key to successfully obtaining a loan modification. Even the biggest, most terrible banks tend to behave themselves once an attorney enters the fray. Why is this?
The fact is that there are 4 main reasons why your bank doesn't want you to hire an attorney to help you obtain a loan modification.
1. Attorneys Know the Law
The federal government created the HAMP and HAMP 2 programs in order to incentivize the loan modification process for banks. The big banks must follow certain guidelines when offering mortgage modifications, or else they'll be in serious trouble. Also, certain states have created laws that are designed to help homeowners get more of an advantage when negotiating for a loan modification. The problem is that 99.99% percent of troubled homeowners don't know about or understand these federal and state rules, and banks take advantage of this fact. A well-qualified attorney knows and understands every word of the national and state guidelines, and will make sure that a bank adheres to these rules.
2. Attorneys Understand the Bank's Foreclosure Processes
Banks often intimidate people into doing what they want them to do by exploiting the uncertainty that comes with foreclosure. They'll often exaggerate the negative things that can happen to homeowners once a home is foreclosed on, and will even resort to intimidation tactics (see below). An experienced attorney doesn't only bring legal knowledge to the table, but the practical knowledge that only comes with helping clients obtain modifications over time. They know the quirks and tendencies that make every bank unique, and will exploit them for the homeowner's benefit.
3. A Lawyer Isn't Afraid of the Bank
Banks have spent years developing their intimidation tactics. In fact, they use shame, guilt, uncertainty and desperation as psychological weapons in order to force homeowners into doing what they want. Bank's representatives are trained to use these tactics in their phone calls, voicemails, letters, and e-mails that they send to people. Attorneys, on the other hand, are trained to see through the intimidation, which does the most to place lawyers on an equal plane with the banks. This is why when it comes time for negotiation with attorneys, banks will cut out the "bull" and discuss what really matters: a homeowners' future.
4. An Attorney Has Legal Powers
If a bank is not doing the right thing, then an attorney has the power to take the banks' lawyers to court in a lawsuit. If a banks' attorneys have hundreds of new cases to deal with each month, then oftentimes the least economical option for them is to pursue an extended fight in court. It makes a lot more monetary sense for banks to negotiate directly with a homeowners' lawyers to come to a solution instead.
If you need to get a loan modification, then don't go at it alone. Be sure to hire it's a foreclosure attorney that offers loan modification as an ancillary service. Click below to download our checklist to see what else your attorney should offer.