How I Got a Loan Mod Accepted by Bank of America

Even with all of the distress being experienced by bank lenders and borrowers alike, it is surprising how few success stories of loan modifications are out there. This is one of them.

A loan modification is simply when the lender will redo the terms of the mortgage to make it more affordable. They may even take the back payments, add them back on to the principal payment, and lower the interest rate and/or extend the term of the loan to make it more affordable to help a borrower stay in the property.

I refinanced with a loan originator in Arizona who sold the loan to Countrywide early 2008. My loan amount was $365,000.00 and the interest rate was 6.125% approximately, interest only for 5-10 years, and then the loan amortizes.

Around October 2008, I was scheduled for a medical procedure and contacted Countrywide. They immediately offered a forbearance, in which I did not have to pay any payments for 6 months. Actually, I insisted on paying 500.00 per month to show my good faith.

After the end of the forbearance, I may be eligible for a loan modification, or extension of the forbearance, unless I paid back the back payments or entire balance sooner.

In February 2009, despite my written agreement and timely payments, Countrywide/Bank of America reported my loan as past due. This ruined my credit and compounded my medical hardship.

Around March/April 2009 the loan was transferred to Bank of America, and this is where some of the confusion began.

Bank of America sent over a new repayment plan, which contained confusing language to the effect that the loan would continue to report late even if I paid on time. I conditionally accepted this agreement in May, but asked for clarification of the misleading and confusing wording.

Throughout June, the representative failed to return my calls. I mailed in a payment that was returned by the bank, and I called in to ask why. The representative said it was because my agreement expired because it was not received on time, but the representative also said the file showed up in her system, so it was resubmitted.

Meanwhile, the loan origination company began leaving threatening messages, apparently because the investor was forcing them to buy back the loan (for reasons beyond my comprehension). The loan origination company also sent me strange requests for my tax returns, pay stubs, and explanation for why the mortgage payments were made by a company which actually NEVER made the payments.

I responded firmly and clearly. At the same time, I kept at Bank of America/Countrywide relentlessly with letter after letter documenting their default and misconduct. I even filed a complaint with the Office of the Comptroller of the Currency (OCC.gov) because they repeatedly ignored my certified letters addressed to the CEOs regarding the damage done to my credit.

(Perhaps the CEOs were too preoccupied with their pending indictments to respond to me.)

My concerns continued to grow into July because BofA was refusing my payments and not returning my calls. On top of this, the loan originator kept harassing me with difficult to answer questions and threatening messages. I felt attacked, as if they were planning an elaborate trap to damage me with any apparent inconsistency I would state. But I would not succumb to their tactics.

However, I received a fedex package dated July 11, 2009, containing loan modification documents from Bank of America. All I need to do is sign, notarize, and return them by August 10, 2009, and I am on my way.

I sent the documents over to my researcher and to a banking attorney to review, and apparently these documents seem kosher. Also the documents do state that my loan will be considered and reported as current, which was an important "sticking point" for me.

The next step is to send a notice of fault and opportunity to cure to the originator, for their failure to respond. My researcher tells me to invoice them for damages, treble the amount of the mortgage originated. This is for their damaging correspondence. And who knows, many law firms now are representing consumers and would love to take this case on contingency and ultimately get my mortgage forgiven.

So although the circumstances leading up to this loan modification are a bit unusual, and someone else's case is likely to be different there are many lessons in this process appliable universally:

1. have a goal and stick to it relentlessly. But remain flexible to new developments.
2. keep accurate records and notify parties in writing (certified) of any discrepancies.
3. any errors the lender makes, properly documented, can be utilized in your favor if documented properly
4. fight back and refuse to be intimidated
5. plan for the worst but expect the best outcome
6. if you have a medical issue or other hardship that is compounded by the lender's conduct/misconduct, be sure to document this thoroughly
7. have thorough documentation to justify your case for loan modification

How to Delete Inquiries On your Credit Report

Like it or not, having inquiries on your credit report can get you turned down for a loan approval or credit report. I've applied for credit for years for myself and my clients, and I can't tell you how many times a bank wrote a rejection letter that we were turned down for a credit card "because of excessive inquiries."

No matter what a creditor tries to convince you of otherwise, inquiries DO lower your credit score. Granted, some mortgage companies, for example, only consider your most recent inquiries for past 3-6 months. The more you have, and the more recent you have them, the more your score is lowered. And a lower score also means you will end up paying a higher interest rate on your credit, which could cost you thousands of dollars over time.

In fact, many business and personal credit line services who specialize in obtaining credit lines for their customers won't even touch you if you have more than 2-3 inquiries per bureau.

But how do you delete inquires? The bureaus may like to tell you the propaganda that inquiries cannot be deleted, they are permanent, and stay on for months, even years.

Nothing is farther from the truth. Based on years of trial and error, I've uncovered some of the best ways to remove inquiries.

1. Write the bureaus a letter. Especially if an inquiry is truly unauthorized, they will have to contact the creditor and ask for them to prove the existence of the inquiry. Most will not have the time, or documentation to prove it, and inquiries will just fall off.

NOTE: Beware of disputing inquiries pertaining to an open credit line. For example, I heard of a consumer whose car got repossessed by Bank of America because he disputed the inquiry associated with obtaining the car loan with that bank. This is an extreme case, but beware of the risks.

But if inquiries resulted from "shopping" for credit, these are fairly easy to fall off.

2. File a fraud alert and dispute inquiries as fraudulent. Be careful of this as well, as your file will then be very closely scrutinized by higher paid credit bureau staff, which can be to your disadvantage.

3. "Bump" your inquiries off with TransUnion. For example, subscribe to a credit monitoring service such as creditchecktotal.com that allows you to check your credit daily with updates. These updates are "soft pulls" on TransUnion bureau. So they don't count as inquiries that other people see that would affect your score, but they are added to the record. Enough of these soft inquiries maxes out the record, and eventually bumps off the inquiries seen by all. It takes approximately 60 soft pulls. But you can cut the time in half by subscribing to multiple services that allow you to check inquiries daily.

Note that deleting inquiries years ago was much faster and easier than now, as bureaus have tightened up in their practices. TransUnion appears to be the most difficult to work with at this point in time, and takes the longest to see results with by mailing letters. Whereas Equifax and Experian are pretty fast.

4. Hire an expert to delete inquiries. I have worked with 3 different providers that have all performed. I have paid as much as $150 or more per inquiry to an attorney for deletion because the money I had paid him would be quickly recouped by the credit lines I would get approved for after the inquiries were deleted. No provider can guarantee all inquiries will be deleted, rather, on a "Best efforts" basis.

The most recent expert I have worked with uses a proprietary online and offline tactics to get inquiries deleted quickly and professionally. His cost is one of the most reasonable I have seen and he is very responsive and professional.

This should give you a better overview and more hope for your credit report. Time and space does not permit me to share the specific letters I have written to delete inquiries successfully.

Or if you wish to have the provider's contact information I would be glad to share it with you. This is all contained in my step-by-step home study system that teaches you how to repair and build your personal and business credit so you can have all the money you need to tide you over during these times.

Although the bar has raised for credit, banks still have plenty of money to give you, and if you can tap this vault, you will have an advantage that will help you make a fortune because you can buy assets as such an incredible discount.

Please visit the Million Dollar Corporate credit system for complete information.

Get faster short sale or loan workouts with Forensic Loan Audits

Fed up with your mortgage lender? Smell something fishy? Is your mortgage lender not cooperating with your requests to reduce your mortgage payments or principal balance? You are not alone.

According to many estimates, a majority of mortgage loans originated since 2005 at the peak that led to the mortgage meltdown--contain errors.

These errors can be "leveraged" as tools for a borrower or investor to perform a loan workout with the bank, or enact a short sale. Or, the ultimate tool is "rescission" - where you actually can sue the bank to get the entire mortgage forgiven. You will probably "settle" before this happens but this is powerful leverage.

Some may feel moral qualms about this process, but rest assured, it is a legal process by which a trained auditor or legal firm will actually review all of your loan documents to look for the following areas below. This came from a blog posted online - click here:

"Did the loan officer accurately disclose the loan terms to you? ·
Did you sign a separate broker fee agreement? ·
Was your home’s value inflated by the lender’s appraiser? ·
Did the lender fail to verify your ability to repay the loan? ·
Were you given all federal and state disclosures? ·
Were you properly notified of your right to cancel the loan? ·
Do your closing documents contain any technical errors? ·
Were you charged excessive or undisclosed fees? ·
Has your loan been sold without your knowledge? ·
Any and all applicable federal and state law violations ·
The real terms of your loan ·
Outline of hidden fees and/or commission earned by your broker or lender ·

A complete assessment so you can pursue possible legal claims against your broker and/or lender Report of all factual findings of the forensic audit using violations along with other areas of fraudulent discovery may allow litigation claims such as:

Slander of Title; Fraud (Material Misrepresentation)
Void Contract - Impossibility to Perform (CA Civil Code 1411,1511, 1595 et seq)
To Cancel Deed of Trust; Breach of Fiduciary Duty
Violation of CA Business and Professions Code Section17200 etseq
Intentional Infliction of Emotional Distress
Declaratory Relief; Injunction Relief
Restitution (Unjust Enrichment)"

Bottom line is, if the lender violated these or any number of laws, you have recourse against the lender. This can translate into bottom line dollars for you or your client.

If you are a real estate investor, you can offer this as value added to your seller or homeowner you are doing business with. If you are a homeowner, you could do the same.

Note this is not the catch-all that can or will solve all of your problems, but it is an important step to help you or your clients get the relief you seek.

CAUTION: you must hire a competent trained expert to perform these. There are many frauds and scams out there preying upon desperate borrowers not performing these services, or services not being performed by credentialed individuals.

Good luck!

Top 3 Critical Times You MUST meet Face-to-Face with your tenant/buyer Part 2

Here is a perfect example for #2 and #3, which are very closely related:

We took over a property "subject to" a year or so ago, where the seller was behind on her first mortgage payments with Chase, and deeded us the property into our trust, and we brought the loan current and started making payments.

For some reason, the bank did not properly process these payments. They started putting them in "suspense account" while starting to send a late notice to the seller who is also a previous borrower.

Meanwhile, buyers had moved in on a "contract for deed" in which they made repairs as part of their downpayment, and began making payments on the property. We agreed to give them the deed in their name when they complete the payments on the property or refinance, whichever happens sooner.

Anyway, the seller freaked out and was unable to reach us. So she went directly to the property and informed the buyers in the property of a delinquency and possible pending foreclosure.

Understandably so, the buyers were so freaked out they called us and began making all sorts of legal demands and accusations.

As a solution, the seller suggested we all meet somewhere near the property to discuss this face-to-face. I agreed, and then got the insight that this should be best handled with an official present. So I scheduled a meeting at my local title company where my title agent would preside, and answer all questions. All the parties would be present.

This worked like a charm. The title agent validated the title, the parties raised their concerns. I handled their objections and then steered them in the direction of setting up an account servicing program, where they would make payments directly to the title company, who would then make payments to the bank.

It would all be done third party and at arm's length. They were all happy with that solution and left with smiles on their faces. This was done on a Friday, in time for the Easter Holiday, which I am sure they all enjoyed more.

Had we stalled on meeting face to face, or dealing with these problems squarely, this deal would have blown up and resulted in a costly, unnecessary lawsuit.

Top 3 Critical Times You MUST meet Face-to-Face with your tenant/buyer Part 1

With all the emphasis made on "delegating" and "outsourcing", having others help do what you can't or don't want to do in your business, and using technology to make life more efficient and automated, there are times that you still must meet with the buyers for your homes.

I know I like to work in a very "hands-off" sort of way. I prefer to spend my time writing, thinking, meditating, strategizing newer and better ways to run my business, create new revenue streams and information products.

It's very tempting to get so into my bandwagon of prosperity I almost forget that the business is there to serve it's clients: buyers and sellers. I do have an acquisitions/resale coordinator Dave J., who handles the day to day operations and interactions with the sellers and buyers.

He's very efficient by phone and email, but here are the times when you still MUST meet with the buyers:

1. When reserving the property and signing the lease and purchase paperwork. Sometimes you will reserve it first, and then give them the paperwork to sign. Sometimes you will do it in one fell swoop, all at the same time.

2. When the buyers request it and there is no way to address their concerns my phone, fax, email, or mail.

3. When its so important for the integrity and stability of the deal, you have no other better alternative.

No-Cost Credit Tip Gets Your Buyers Financed Faster

For today's real estate investor, good credit is critical to enact a sale of your property to a buyer.

But there are alot of factors that can harm your buyer's credit and they may not even know it.

For example, an identity thief could steal your personal data and social security number to get credit cards without your permission or knowledge. Or a past due phone bill that doesn't even belong to your buyer may pop up on your credit. It has happened to our buyers more often than I care to admit.

Many of these inaccuracies prevent our buyer from closing a purchase. So in that case, we sell to them with a 12-24 month lease-purchase agreement. Before we move our buyer into the property, we make sure they are aware of the credit problems that need to be fixed, and give them a plan to take care of these items.

This keeps the buyers happy because they feel more in control and empowered, and this keeps us happy because we know our lease-options will cash out sooner when the buyer obtains new financing.

Many of my buyers are shocked to find some of the inaccuracies on their credit report. Fortunately there is a simple solution to empower our buyers. We encourage them to check their credit once a year just to see their progress.

Fortunately, there is a FREE way, that doesn't cost a single dime that lets you check credit every 12 months at no cost. There is no excuse not to check your credit in this manner.Click AnnualCreditReport.com to go straight to the source.

Beware of imitation sites - to the best of my knowledge and research this is one of the only few truly authentic sites.

Avoid Unpleasant Credit Surprises with this Free Tool

Recently our admin assistant operations coordinator noticed how successful I've been with repairing errors on my credit report and how I've helped others do the same for themselves. Seemingly incurable fixes.

One of the worst problems I've seen people do is they fail to check their report regularly.

Here are some common objections to checking credit and how you can handle them:

It takes too much time.

The good news is that checking your credit takes a few moments or just a click of a button.

I don't want the hassle.

The truth is, in this day and age, you can't afford NOT to check your credit. ID theft is on the rise, and your credit could be accessed by someone without your knowledge.
Its too expensive, I don't want to have to pay every month to have my credit monitoring.

Fortunately, there is a FREE way, that doesn't cost you a single dime that lets you check credit every 12 months at no cost to you. There is no excuse not to check your credit in this manner.

Click AnnualCreditReport.com to go straight to the source.

There are many "wanna-be" sites that look similar to this official "Free Credit Report" site but they are cheap imitations. Only stick with this official site to keep from having items tampered with.

So go visit this site and check out your credit. Do it now, thank me later!