Kenneth H.J. Henjum Law Offices

Family and Bankruptcy Law


(805) 654-7032

Our office has not entered into this area of practice. There is a lot of controversy out there, and you must be very careful when selecting a company to represent you. Please remember the Loan Modification is a voluntary process by the banks. Voluntary means that each bank is handling it slightly differently. The solutions they offer vary from bank to bank. Most are modifying the interest rate on the existing loan, or extending the term of the loan (some up to 40 years). In a rare situation, they will lower the principal balance.

Most banks are very responsive to answer your first call. They will send the application right out, or have you download it from their website. It is the review process that takes time, sometimes several months. They request that you re-send the material and continue to update it, since it is deemed stale, if it is 30 days old. As you can see, it is a process.

My concerns with Loan Modification companies are as follows:
How long have they been in business?
What can they do, that you cannot do on your own?
What do they charge? When are they paid?
*Do they have relationships with your bank?
*This is the primary concern, since every time I contact a bank these days, I speak to a different person. How can I build a negotiating relationship if the person on the other side keeps changing?

I recommend the following:

  • Create a place to keep your written notes. A file cabinet to stay organized. The bank will have everything on their computer screen. What are you going to have to combat them?
  • Maintain a written file.
  • Keep track of every person that you speak to, including the number you called, the fax number you sent material, and the extension of the representative.
  • Keep a copy of anything you send them. They tend to need updates, or lose it, so do not send them the only copy.
  • Check with a lawyer before you sign ANY agreements or send them money.

We have found that banks handle loan modifications well, but it takes time. If you have the money to pay the mortgage, they will work with you.

Bankruptcy: Our office handles Bankruptcy cases, Chapter 7, Chapter 13, and because of some large mortgage balances, Chapter 11.

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