Frequently Asked Questions

Can I do this myself? Why should I pay someone else to do it for me?
Yes, you can prepare your own financials, your loan modification package & negotiate with your mortgage company all on your own. Just as some people act as their own real estate agents, accountants, or lawyers. Everyone's skills, talents, knowledge and comfort level is different. Please review "The Process" section of this website; we have detailed many reasons why we believe that this most important process should be left to highly experienced professionals.

We're well aware that some well meaning Government Officials recommends doing this on your own, that you don't need to pay someone to do this for you. We fully cover this in The Process section as well. How many financial transactions are as important to the average person as their home? Much like in any important matter, having the proper guidance and representation can make all the difference in the world. It can save you time, trouble and money and ultimately, your home. There is an old saying that aptly applies here: "The most dangerous thing in the world is a little bit of knowledge!"

Why does it seem like a lot of Modification Companies are located in Florida?
It is actually quite natural since Florida is one of the states with the highest foreclosure rates. US Mortgage Advocate was founded out of a desire to help homeowners in Florida, but many, if not most transactions are completely done over the telephone, faxes and emails, and since it is quite easy to assist and help homeowners of other States we decided to offer our help nationwide.

Do you charge an upfront fee?
No, we do not collect a fee upfront! US Mortgage Advocate recently adopted this new payment model to comply with many states new requirements. We believe that we have created a win-win situation in regards to this subject. Your loan modification process is divided into 2 phases. The processing phase and the negotiation phase. Our Clients only pay upon the completion of each individual phase and have the option to opt out of our program at the conclusion of a completed phase and finish the process with their Lender on their own, if they feel confident and qualified to do so.

The processing phase requires the most work and time and therefore is also the most costly phase. From our initial conversations with our Clients, reviewing and understanding each unique circumstance, collecting the application and all supporting documents from our Clients, thoroughly analyzing each situation, preparing the entire modification package properly so that it makes sense to your Lender the first time that they receive it, from the detailed financial worksheet, hardship letter and cover letter. Once we receive all of the required documents from a Client, we go hard to work to prepare as quickly as we can the loan modification package to be sent to the Lender, either by us or by our Clients if they choose. Upon completion of this phase, which usually takes form 3 days to 2 weeks from our receipt of all requested documents from a Client, our Client is asked for payment for preparing the loan modification package and given the option to have us submit their file to their Lender and negotiate on their behalf, or they may elect to end the process with US Mortgage Advocate and receive their loan modification package from us and send their completed package to their Lender and negotiate their own loan modification. Once we receive payment, will then either send the package onto their Lender, or send the package to our Client so that they may complete the process on their own if they so choose.

If a Client elects to have us complete the next phase of the process, the negotiation phase, we submit the package to their Lender and begin the negotiation process. Once we have reached agreement with a Lender, the Lender will mail the completed documents. Once received, payment is then due for the completion of the negotiating phase. Upon receipt of final payment from our Client, Credit US Mortgage Advocate offers a complimentary, FREE document review which we strongly encourage a Client to take advantage of. All too frequently we have seen where a Client receives the new loan modification package and the rate and terms were not what we agreed to, or it contains what we term "junk fees.” When this happens, a call is placed by us to the individual Loss Mitigation Specialist that we worked closely with and this costly mistake is brought to their attention. Because we see this frequently enough, a sinister person would conclude that this happens 'accidentally on purpose" as they say! However, in our opinion, it's most likely just due to the fact that all Lenders are overloaded with foreclosures and loan modification request.

How long does it take to complete a file from start to finish?
The total hours it takes to work each file from start to finish are approximately 25 hours to 60 hours. The following hours are approximations and estimates and each case varies.

Is it legal to collect a fee up front?
All states vary who may collect a fee up front, if any, and it depends if the Homeowner is current or late on their mortgage payments. But many states now prohibit by law the collecting of a fee up front from a Homeowner that is 31 days late on their mortgage payment and that Loan Modification Companies may only charge for work that is completed. These laws exist to protect Homeowners because many fly-by-night companies were opening without the proper experience, licensing, and ethics and people were not seeing results after they already paid up front. We're equally appalled by any instances of this. US Mortgage Advocate joins side-by-side with the Attorneys General and Government Officials of most states in recommending never doing business with a company that requires any fee upfront until the work is completed!

I'm already having financial difficulty, I need you to help me, but how can I afford to pay your fee?
Many people ask this question. If you are current on your mortgage, we strongly suggest that you do everything you can to remain current. No one from US Mortgage Advocate or any of our affiliates will ever suggest that you stop making your mortgage payment. We always believe in "doing the right thing,” regardless of the scenario, and the right thing to do is that if you can afford to make your mortgage payment on time, that you do so. However, if you find that you are falling behind and there is nothing that you can to remain current, we're here to help and we have found that there are actually two positive things that come out of this.

First, because of the amount of families falling behind on their payments, the system is overloaded. Many Lenders have adopted the position that it is best to help those in need the most first. This means that if you're late on your payments, it's more than likely that a Lender will review your case before someone that is current. Second, when you've fallen behind on your payments we have found that most people just stop making their mortgage payments. Sometimes this produces the needed money to afford to pay a Professional to help you with your loan modification.

And lastly, the loan modification process with US Mortgage Advocate is divided into 2 phases, the processing phase, and the negotiating phase. You pay upon completion of each phase. Our total fee to have us complete both phases is only $2,195. The processing phase is $1,695.00 and the negotiating phase is $500.00. You pay each phase individually as it is completed and you may elect to have us complete both phases, or only the processing phase. However, we will not negotiate on behalf of a Client that prepared their own loan modification package. In order for us to undertake the negotiation phase with your Lender, we must have completed the processing phase for a Client.

That brings up a good question. Will my Lender work with me if I am current on my mortgage payment?
The most difficult thing about this whole loan modification business is that there are no concrete, set guidelines. This varies from lender to lender and situation to situation. For instance, while you may be presently current, there may be an impending hardship such as you have received a layoff notice, or your rate will be adjusting upward soon etc. It just varies and until we find out your particular situation it's difficult to give you a firmer answer. But we have seen many cases where someone was current and able to get a loan modification.

My mortgage was a stated income or no-doc loan. I'm concerned about the income that I claimed originally could cause me problems now. If my lender asks for tax returns for the last several years now to verify my income, should I be concerned if there's a discrepancy from what I originally claimed was my income and my tax returns show otherwise?

In our experience there is no reason for concern here. From all the evidence that we have this has not been an issue. Remember, the Banks, Lenders and Mortgage Companies and their aggressive Loan Officers were equally guilty in these no doc and stated income loans. It appears that no one wants to open up that can of worms! No one is concerned about the past, only the future and everyone just wants to do what is necessary to fix this huge national problem and move forward.

Will my Lender require a good faith payment upfront?
It varies from Lender to Lender and case to case. Not always but often, if someone is several months behind on mortgage payments Lenders will require a good faith payment. We always advise Clients that if you have, or you think you will be ceasing to pay your mortgage payment altogether, do not spend this money! Save it because your Lender may require 1 month or several months’ worth of payments, depending on how far behind you are, to show good faith on your part as part of the negotiated loan modification. If you're many months behind, often a forbearance agreement is the best option whereby the amount in arrears is tacked on to the back of the mortgage or a separate agreement is drawn up where you make additional payments to catch up. We often prefer and recommend payments be added to the back of the mortgage. Clients have a difficult enough time making the regular new mortgage payments without having the added stress of additional payments to catch up at the same time.

What is Loan Modification?
A Loan Modification is a process of negotiating with your lender to obtain a better interest rate, a longer amortization term (e.g. 40 year instead of 30 year) and although not as common as some modification companies claim, in some instances, a principal reduction. As mentioned, they are not as common but they do indeed happen where the bank actually writes down some of the principal amount. A loan modification is a permanent change in one or more of the terms of a loan which will reduce your monthly mortgage payment that you can now afford allowing you and your family to stay in your home. In many cases a homeowner in need of mortgage help will qualify for a loan modification if the following are met:

• There has been some sort of hardship that has occurred that is the cause of you not being able to meet your monthly mortgage obligation.
• There is the desire to remain in the home.
• It can be demonstrated that once your loan is modified and your payments are lower, that you will have sufficient income each month to afford the new mortgage payment.

How Does It Work?
A US Mortgage Advocate Consultant will review the alternatives available to allow you to keep your home. The key to avoiding foreclosure is your taking action and your honest communication! Only through open candid communication with our Consultants can we fully help you to stay in your home. Please review "The Process" section of this web site for a full understanding of the loan modification process.

For Homeowners having difficulties affording their mortgage payment, there are generally 5 options:

1. MODIFICATION: In certain circumstances, an investor may allow us to add the delinquent amount to your loan balance or temporarily, or permanently, reduce the interest rate. They may give you a "step-rate" in which they lower your rate and gradually raise your rate. And although not as common as many companies claim, they may agree to reduce your principle amount to assist in making your future mortgage payments more affordable.

2. FORBEARANCE: A forbearance Plan is an agreement made between a mortgage lender and delinquent borrower in which the lender agrees not to exercise its legal right to foreclose on a mortgage and the borrower agrees to a payment plan that will, over a certain time period, bring the borrower current on his or her payments. That can include adding on any delinquent mortgage amount to the back of the loan or a separate agreement to allow for payments to catch up on the delinquent amount. A Professional will negotiate what's best for you with your Lender.

3. PRE-FORECLOSURE SALE: Every Home Matters frequently works with homeowners who have experienced some legitimate hardship and can no longer afford their home. The decision to sell your home under these circumstances is difficult; in addition, fluctuation in real estate markets may leave you in a situation where you have little or no equity. If this is the case we may be able to assist in the sale of your home.

4. DEED IN LIEU OF FORECLOSURE: In the event you have decided you can no longer afford your home and you do not want to go through the Marketing efforts or foreclosure, you may voluntarily return the property to the investor. You hand over the deed to the house to your lender and you walk away from it. These will most likely show negatively on your credit report but it is not as devastating as a foreclosure would be.

5. A SHORT SALE: A Short Sale is where you sell your house for less than it is worth. You must prove to your lender that there was a hardship that no longer allows you to afford the mortgage payment and the lender must agree to accept the less than valued sale price.

How do I apply for assistance? 
Consult with one of our Loan Modification Specialists about the best possible solution for your individual situation. Call any of the numbers listed below or complete the form on any of these pages and one of our Specialists will contact you within 24 hours.

How do I qualify for a Short Sale?  
A borrower must prove that a hardship exists. The lender must be willing to accept the short sale proceeds as full settlement of the debt.  Often it must be proved that you attempted to sell the house at an amount not less than the current mortgage balance.

Can any Real Estate Agent assist me in selling my home in a short sale situation? 
Possibly, but usually you have only one shot to succeed in a short sale transaction, it is therefore highly recommended that you work with a company experienced in short sale negotiations that can properly represent you and is specialized in this field. US Mortgage Advocate are not licensed Real Estate Brokers but we are affiliated with some of the best companies that we know of and will recommend them to you if this is determined to be the best course of action.

Does my mortgage company want to foreclose on my property and take my house?

Absolutely NOT, but they will. When a mortgage company forecloses on a property, they usually lose money. It is estimated that each house foreclosed on cost a Lender $75,000 in legal and other costs. They lose even more if they are forced to take ownership of the property called (real estate owned) and are unable to sell the house at a Sheriffs Sale. Because of the mortgage companies as well as the investor's likely losses on foreclosed properties, there are many ways to either avoid going into foreclosure or to get out of it.

Unfortunately, you are one of millions having mortgage problems at this time. You're simply another number to your mortgage company and HUD's government workers and they don't have the proper amount of trained staff to handle this huge influx of families with mortgage problems we're experiencing in this country. While it may be encouraging to know that their financial interests lie in keeping you out of foreclosure, you should also realize that mortgage companies are some of the largest owners of real estate in the world. They will foreclose if they are left without a viable alternative that makes financial sense to them. They just need to be convinced that it is less expensive for them to modify your loan than the cost of foreclosing or Holding your property in REO.

Is it too late to save my home if I am currently in foreclosure?
Unless the bank has already taken the house back, it is not too late. We may still be able to help you keep your home. Until that gavel comes down at the sale, and your house is sold, it's never too late.