First Horizon, as one of the largest mortgage lenders in the county, has been directed by the Congress and the US Treasury to offer homeowners Home Loan Modifications or Mortgage Modifications. Under the HAMP and MHA (Making Home Affordable), First Horizon has no choice but to make these programs available to borrowers, as well as “in house” First Horizon loan modification programs. Under HAMP, if the loss First Horizon Home Mortgage takes on a loan modification is smaller than the projected loss under a foreclosure scenario, the loan modification must be offered to the homeowner.
First Horizon Loan Modification Pre-foreclosure
The problem with the US governments “brilliant” plan for homeowners is that only the lender would know which loss is greater, and therefore which option is most appropriate whether a First Horizon loan modification must be offered. The first step for most borrowers is the pre-foreclosure stage. In the pre-foreclosure stage, the formal foreclosure process has not begun and all options are still available for First Horizon mortgage homeowners. This is the ideal time to explore loan modification options, especially since there isn’t a sale date looming.
First Horizon Trial Loan Modification
Often times, instead of offering a First Horizon homeowner a permanent loan modification, the lender will begin with a “Trial Modification.” The clear implication (in my opinion) of a trial modification is if the homeowner makes all the “trial” payments on time and according to the contract, they should be offered a permanent First Horizon mortgage modification. Why else would the “trail” been offered…it’s to see if the homeowner is serious and can make the payments. If the homeowner fulfills his/her end of the bargain, First Horizon should then have to offer a permanent loan modification.
First Horizon Mortgage Modification
The reality of the loan modification business is that lenders often don’t do what they’re supposed to do. It’s all too easy for a lender to just keep the trial payments and respond that the borrower “doesn’t qualify” for a permanent First Horizon loan modification. To arrive at this decision, they use their own numbers (which will never be shared with the homeowner), and use their own software to calculate “loss” (which also won’t be shared with the homeowner). Only recently, however, the lenders software has become available to certain loan modification law firms, it’s called the REST Report.
Improving Your Chances for a First Horizon Loan Modification
You may have never heard of a “REST Report,” but it can be the distinction between securing a First Horizon loan modification or foreclosed on. The REST software is the actual program that is used by First Horizon and the mortgage industry to evaluate their potential loss on a property. It offers mortgage companies a summary of the total amount of their loss under each loss mitigation option including: loan modification, short sale, deed in lieu of foreclosure, and foreclosure. The mortgage company is then bound and obligated by the option that shows the least amount of loss for them under federal guidelines. Lenders simply may not deny the loan modification if it is in their best interest financially to offer it.
REST Report and Home Loan Modification Attorneys
McFarlin LLP is one of the few law firms in the country to have negotiated an exclusive license to run the REST Report for clients. More importantly, if your mortgage company refuses to accept the REST Report results, we are fully prepared to file a lawsuit on your behalf. Our lawyers handle all aspects of First Horizon loan modification, foreclosure defense and mortgage litigation for borrowers in Irvine, Los Angeles, Long Beach, Riverside, San Bernardino, Fresno, Stockton, Sacramento, Rosemead and throughout California.
Our lawyers are available to provide you with honest reliable loan modification, foreclosure defense and mortgage litigation advice at our Irvine office or over the phone. With a matter as important as loan modification and the REST Report, it is a very good idea to consider hiring a qualified California loan modification lawyer to represent you and protect your interests. Call us today at (888) 728-0044.