Step 4—Once we have obtained the results from the QWR and the Forensic Mortgage Loan Audit, we use them to document the lender’s non-compliance and violations of the law. Using these violations as leverage, we will then either negotiate an acceptable loan modification agreement with the lender, or we will threaten to sue for the violations. An acceptable loan modification includes the following parameters:
a) Reducing the mortgage loan amount down to the fair market value of the property.
b) Lowering the interest rate to 5% or below, if your interest rate is higher than 5%
c) Lowering the monthly payment.
d) Stretching out the term of the loan back to 30 or even 40 years to keep the monthly payment affordable. If the lender agrees to these terms, we recommend that the consumer accept the loan modification agreement. If the lender fails or refuses to negotiate in good faith, then the file is referred for litigation.