American Residential Law Group Loan Modification with BOA

[Bethm1026]

Has anyone heard of them or used them for a loan modification?

I called  them...sent them a 3rd party auth. form to talk to BOA about a modification.

They (ARLG) called me back several hours later to tell me that BOA WILL do a mod. for me.

However, they do want a retainer upfront.

Just need some input from you all.......

Thanks! 

[Anonymous]

first off, get the exact terms that they say BofA will offer you.

Call BofA.  If they are tellign the truth, it will be on record in your file and BofA will be able to do it without the use of an outside party.  There is nothing the outside company can do that you can not do on your own with a few calls.

Last, they are definietly not telling the whole story.  There is no way BofA would have given an answer in a couple hours.  They have to getinfo from you and documentation to support your income and need for a modification.  Then it goes to the department that decides what to do from there (and if they are just servicing the loan it has to go to the people who actually own the loan for approval), then it comes back to you and there is a bunch of more paperwork you will have to do.

So, this company is not being upfront with you..  BofA probably told them that you do QULAIFY for a modification.  That does not mean it is approved.

[Lel]

Be very, very, very careful about dealing with third parties to negotiate loan modifications.  A large proportion - if not the vast majority - are preying on distressed homeowners and usually do not deliver on their promises.

There is no way that this company can guarantee a loan modification.  Period.

The fact that they are requesting an upfront payment is a huge red flag.

You do not need to work with a loan modification "company" to get a modification.  You can work directly with B of A.  I'll try to dig up their number for you.

They are swamped with requests for modifications.  You will have to be patient but persistent, and you must be organized.  Get all your financial information together - salary, monthly debt obligations, monthly expenses, savings, etc.  Be prepared to provide this information on a moment's notice - you never know when a phone call from an analyst may come.  Don't exaggerate your hardship, because claiming too much of a budget shortfall will lead to a denial.

[Bethm1026]

I have called BOA SEVERAL SEVERAL SEVERAL times and it takes an act of congress to talk to anyone there. I did do the paperwork for the HOPE program but each time I call they act like they've never heard of me and takes forever to even find my name. The response each time is, we are working on it. THEY sent me the paperwork December 1st and I fedex'd it back to them overnight that very next day.

I've since gotten foreclosure paperwork & now my husband HAS found a job & we can afford our payments once again. When I called to make my full payment BOA wouldn't take it.

I'm lost as to what to do now....ARLG did send me some forms to fill out. Hardship letter & a monthly cash flow sheet.

I sent them the authorization form and they said BOA would work with them.

I just want to save our house now that my hubby has a job again.     

[Lel]

Yes, B of A is not easy to work with.  A year ago, it was somewhat easier to work with them, but ever since they absorbed all of Countrywide's business and the new government plan, loan modifications have gotten more difficult, partly due to the sheer volume of the loan modification requests that they are trying to address.

The number for their loss mitigation is 800-846-2222, but you probably already knew that.

Are you trying to qualify for the HOPE for Homeowners program, or the more recent Making Home Affordable plan?

I checked out this law group on BBB, and it has a clean record.  But nevertheless, I am very disturbed by the fact that they have practically guaranteed you a loan modification.  It sounds like all you sent them was a third party authorization - no detailed financial information.  How could they get an answer within a day, when it takes other people days or weeks to get an answer after having fully disclosed their financial situation?  How much is their retainer?

I could be completely wrong about them, and I hope that I am.

Are you familiar with NACA?  One of their services is to help troubled homeowners negotiate loan modifications.  They have mixed results - some are successful, others are not - but they are a legitimate organization.  And they do not charge any fees to the homeowners.

Good luck.

[Bethm1026]

I checked them out as well. I've not saw any negative posts at all. I did the paperwork with BOA for the a program THEY sent me the paperwork.

We financed with Flagstar who sold it our loan to CountryWide who now is BOA. 

I did give them verbal income details but not anything on paper in great detail. Just all incoming income.

The retainer is $1550.00...they said they called BOA & we can expect a reduction in our rate anywhere from 3.5% to 5.5%.....we are at 6.5 FHA 30 yr fixed.

He said they go straight to their people who make the decision. I've not gotten any further than the home retention/loss mitigation. BOA will not take my payments and told me to just "hold" all my payments until my paperwork for the HOPE.

The paperwork he did email to me was....hardship letter example & a spreadsheet for DETAILED cash flow. He said I need to be at 31% of income for my mortgage payment.

I will say, every question I asked, he answered but I'm at my wits end trying to deal with BOA...45 minutes to JUST get someone on the phone is ABSURD.......not to mention, they aren't very helpful at all.

NACA....I have scheduled a "meeting" with them when they are in my town.

I just know I need some help from someone before I lose my home.

My hubby was out of work for several months but now we are making MORE than we did before we got our house.

I just want to make my payments but they will not take it because they started the foreclosure process.       

[Lel]

Good luck, whatever you choose.  Maybe you can get some sort of money back guarantee from this firm.  After all, they've promised you the modification.

It seems, though, that you don't need the modification anymore.  You just need B of A to accept your back payments and take your home out of the foreclosure process, and your old payments would be affordable again.  A lower interest rate, though, would make things even better.

I hope everything works out for you.

[Anonymous]

I have just spoken with this law group as well, and sent them the same authorization form. I am concerned about working with a third party, but my lender (IndyMac) has indicated that it could take 3 to 6 months for the possibility of a loan modification, and then we don't even know if that will occur. Our mortgage and regular escrow payment aren't the problem. We apparently have a shortage in our escrow. Last year IndyMac decided to pay our non-escrowed property taxes, then to escrow our taxes from that point on. As of April or so, we have been paying the regular escrow amount plus a portion of the amount they paid for us. However, this shortage seems to have grown and we're not sure why. The payment is $1000 too high for us; our mortgage is now about 45% of our net income.

Since we are desperate to have this modified, we have sought a third party. We found this law group and saw no negative information or BBB complaints. Doe anyone have any advice on dealing directly with IndyMac? Does anyone know if it's possible that this law group will be beneficial? On another blog site, one homeowner said in three months time, this law group saved them more than $800 per month, which was hopeful to me.

Any more advice would be greatly appreciated.

[Anonymous]

what percentage is your payment of gross income.  That is what they go by.  The current guidelines are to try to get people down to 31% but it sounds like you are not much above that.  Also, the negative escrow is a short time thing.  It sounds like you need to determine why it eeps getting lower if you are paying in to it and what happened to all of your money.  INDY MAC does not have the power to pay your taxes and then initiate escrowed taxes unless you approved that with them, and in this case, it shoudl just have been a matter of you guys paying them oney for the taxes to them.  If the taxes were not escrowed, then you should have had that money saved to pay them yourself.  On top of that, you just have to pay monthly for the taxes instead of killing yourself 1-2x per year to come up with the money.

If that is the situation, and I am not missing anything, you are probably not a very string candidate for a modification.  The escrow issues will not really be taken into account.  Taxes have to be paid no matter what.  It also sounds like you actual payment (not counting the escrow repayment) is probably pretty close to the 31% mark if not under it.  Unless there is a change in situation (job loss/illness/etc), it is a long shot.  First and foremost with a lona mod there must be a change in circumstance that requires the loan mod. 

You best bet is probably ot request a 2-3 month forebearance on your account and during that time, instead of making mortgage payments, get the escrow account replenished and hopefully put away a payment or tow in savings.  Then when the forebearance ends, your payments should be back to normal, you have a month or two put away for emergencies, and things are good.  Any of these situation will probably hurt your FICO score to a degree, but would in the end help you.  Good Luck.  

[Anonymous]

Thanks so much for your reply, it was helpful. I do have another question you might have insight into: My lender's documents ask for all of expenses; although our mortgage payment (not including taxes) are not above 31%, our expenses are high and the bank's documents ask for a detailed list of every expense, including my student loan or other loan payments. How likely will they be to take these into consideration, even if the mortgage itself isn't above 31% of gross income?