Frequently Asked Questions
Answers to common loan modification, forensic loan analysis and debt relief questions.

Topic Questions: Loan Modification | Forensic Loan Analysis | Debt Relief

Why are the services offered by JnR Associates less expensive than most companies?

At JnR Associates we believe that home owners have been through enough and should not be taken advantage of. We are very efficient in the services we provide and believe that by charging much less than the industry average while providing quality effective service, you our valued customer will be more likely to refer us a friend or family member struggling with their mortgage.

Can I be current or do I need to be behind in my mortgage to qualify for a note modification?

You only need to fit into a predetermined set of guidelines, Click here to see if you qualify.

What are the most commonly approved loan modification?

The most common modification are done on adjustable rate loans that are affordable now but will not be affordable when the loan adjusts.

Can I reduce my principal balance with a loan modification?

Yes, however lenders are more reluctant to offer homeowners principal reductions than they are interest rate modifications. There is some proposed legislation that may cause lenders to begin to do this in the near future.

What are the average costs of third party Negotiation companies?

Average fees range from anywhere from $3,000 and as high as $7,000. We feel that a moderate fee schedule in the range of the $1,500 we charge is fair, slightly higher for multiple mortgages.

What if my preliminary work derived from your site concludes I don’t qualify for a Note Modification?

Learning that you do not qualify is a valuable free services we provide. This will save you time and possibly thousands of dollars paid to a modification company when you do not qualify. Most importantly is an understanding of why you may not qualify. Once you know this reason you may be able to make adjustments in your situation that will result in a situation that allows for a modification in the near future.

Can you guarantee that I will be approved for a Note Modification after completing your preliminary work with the Analyzer Service?

No, each mortgage lender have their own specific guidelines. Our Analyzer Service will get you past the initial qualification tests that most lenders use to disqualify over 90% of all applicants.

Can Making Home Affordable help me if my loan is not owned or securitized by Fannie Mae or Freddie Mac?

Yes. JnR Associates offers help to borrowers who are struggling to keep their loans current or who are already behind on their mortgage payments. By providing mortgage servicers with financial incentives to modify existing first mortgages, the Treasury hopes to help as many as 3 to 4 million homeowners avoid foreclosure regardless of who owns or services the mortgage.

How do I know if my loan servicer is participating in providing one of the Note Modification programs? Are all servicers required to participate?

Participation in these programs is voluntary. However, the government is offering substantial incentives to servicers and investors, and it is expected that most major servicers will participate. Participating servicers will sign a contract with Treasury’s financial agent, through which they agree to review every potentially eligible borrower who calls or writes asking to be considered for the program.

Will the modified loan payment include property taxes and homeowners insurance?

Yes. The modification payment will include a monthly amount to be set aside (escrowed) to pay taxes and insurance when they become due. This escrow is required even if your prior loan did not include an escrow.

How low can the interest rate go to make me qualify?

Treasury is providing incentives to your investor to write the interest down to as low as 2%, if necessary to get to a payment that you can afford based on your income.

What happens if that is not enough to get to an affordable payment?

If a 2% interest rate does not result in a payment that is affordable (no more than 31% of your gross monthly income), your servicer will:

First try to extend your payment term. At the servicer’s option your payments could be extended out to 40 years.
If that is still not sufficient your servicer may defer repayment on a portion of the amount you owe until a later time. This is called a principal forbearance.
A portion of the debt could be also be forgiven. This is optional on the part of the investor. There is no requirement for principal forgiveness.

Could I end up with a balloon payment?

Yes. If your servicer determines that a principal forbearance is required to get your monthly payment to an affordable level, the amount of the forbearance, say for example this was $20,000, would be subtracted from the amount used to calculate your monthly mortgage payment, but you would still owe the money. You would have a $20,000 balloon payment that had no interest and was not due until you paid off your loan.

My loan is scheduled for foreclosure soon, can it be saved?

Yes, many servicers have made a commitment to postpone foreclosure sales on all mortgages that meet the minimum eligibility criteria for a Note Modification until those loans can be fully evaluated.

top

What is the benefit of a Loan doc Audit?

The benefit to the borrower of having a loan doc audit is it provides valuable information regarding errors committed within the legally binding documents. These errors can assist the negotiations in performing a loan modification, as the validity of the loan documents becomes in question with the multiple errors found within the legal disclosures.

Can a Loan Doc Audit be preformed on any loan?

Yes however the loan that are adjustable either the ARMs or the “Pick a Payment” loans typically have the higher rate of errors within the loan documents, however this does not mean that this service is not a benefit for Fixed mortgages.

What is done with the information obtained form the Loan Doc Audit?

We provide you with a detailed synopsis in an easy to read repost showing all violations and the applicable law that was violated. We will also send a certified letter to the lender and cc this letter to the Federal Trade Commission and RESPA. We use this information in conjunction with our Loan Modifications as additional leverage to further encourage the Mortgage Lender into Modifying the Loan. This information may also be presented to your attorney who can further handle to violations in court.

Is a loan doc Audit necessary for a Loan Modification to be successful?

No but it is highly recommended as it helps support our case, and provides a legal incentive for the bank to correct the loan, as the validity of the existing loan is compromised due to the disclosure of the errors found within the Loan Documents.

What is the outcome from a Loan Doc Audit?

The results vary depending on the loan type you have. The Adjustable Rate Mortgages have a higher error occurrence than that of the Fixed Rate Mortgages. The outcomes of the Loan Doc Audit have varied from the consumer receiving the mortgage deed with no existing lien to the errors being corrected and modifying the Existing Note.

top

Is there a different between a debt workout solution and a debt consolidation program for reduction the purpose of lowering credit cardt and other unsecured debt?

Consider credit card debt workout as a negotiated settlement for less than the principal amount of credit card debt owed, with the possibility of an interest rate reduction. Companies such as JnR Associates who perform this type of work identify themselves as debt management, debt reduction, debt relief, debt workout, or debt settlement companies. A company specializing in debt consolidation usually uses the services of a credit counselor or taking a debt consolidation loan to pay of the debts in full.

Who factors are required for an individual to qualify for a debt reduction program?

Creditors consider candidates for debt reduction arrangements where they feel a settlement or reduction of interest rate and/or total debt will be in their best interest, as the candidate could qualify for bankruptcy where the creditor would get nothing. To prevent this they may opt to take a discounted settlement on the debt rather than receive zero dollars through the discharge of debt through bankruptcy.

Who appears to be bankruptcy candidates to the creditors?

1. Individuals who have shown an inability or continued struggle to pay their debts as evident by missing payments for several months on their credit cards and other obligations.

2. Individuals who have no or little assets to pull from to consolidate or pay their financial obligations such as equity in homes or cars.

3. Individuals whose current or future income would prevent them from reorganizing their finances through Chapter 13 bankruptcy or some other debt consolidation program.

How is this information obtained from the creditors?

When you originally applied for the credit you gave authorization for the creditor to review you credit. They continue to periodically review your present credit status. If they feel you are increasing in financial risk they may increase your interest rate, lower your available credit, or close the account. This periodic review gives them a good understanding of your financial situation and ability to make good on your outstanding financial obligations.

How do the creditors find out about my income and assets?

They use the income disclosed on the initial application used to obtain the mentioned credit. The credit reporting agencies who provide the information on your credit report also try to maintain current employment records as well.

Is my income required in debt settlement negotiation?

To usually obtain the best settlement proving your financial hardship is the best course of action, and what better way to do this than by proving your current income.

What is the typical debt settlement amount or percentage?

Most revolving accounts such as credit card debt accounts settle in a range of 30 to 50%. Some credit card debt accounts may settle considerably higher reaching into the 75 to 80% range depending on the financial hardship presented.

What determines the debt reduction amounts?

Many factors including the lender themselves as each have their own policies on how they settle debt, the individual and his/her situation, and the amount and the length of credit history the debtor has with the creditor.

How does this type of debt settlement affect someone’s credit?

There are many factors that come into play here. If there is other good debt that is not affected by the debt settlement such as a car or home loan ti=his ais a positive contributing factor to the overall hit to the credit. If there are no good standing accounts remaining and all are in some form of debt settlement this will greatly hurt your credit. The disposition of the settled debt itself is a factor. If the creditor disclaims account settled for less on the credit report once the settlement is finalized this will negatively impact the credit. If the accounts can not be maintained in an open status this too will have a negative impact on the credit.

Can a person achieve these credit card debt settlements on their own or do you have to contract a debt settlement company?

Absolutely, just as you can defend yourself in the court of law without the representation of an attorney, its just not advised as the results are rarely never as good as when the services of a licensed professional are used. Creditors take more seriously when the debtor employees the services of a licensed credit services company such as an attorney or debt management firm. An individual is not as experienced and would not know how to negotiate a debt settlement or what a proper debt settlement would be. A debt management professional working in this field would know most individual creditors and what they will usually settle for. In order to achieve the proper credit card debt settlement it is important to understand the proper way to fill out certain financial forms, most individuals do not know how to do this properly.

Do the creditors usually give a n initial offer that can be settled for even lower?

Usually in any negotiations you do not lead with your best offer. The first debt settlement letters coming from the creditors are initial attempts with a debt settlement offer that is usually high and certainly one the credit card company would be happy to accept. A typical case would be a creditor offering a settlement of 75 or 80 cents on a dollar. In almost all cases debt settlement can be achieved for much less than the initial contact letters from the credit card companies.

How long does the typical credit card debt settlement process take?

Done correctly where the best offer is obtained the process can and should take anywhere from three to nine months. If someone wanted to expedite the situation it realistically is accomplished in three months. Someone wanting to stretch things out could have the process extended to over a year. This process gets involved and usually has a bankruptcy filling and then canceling the filling. This is not a strategy we are looking to work out for someone. Our goal is to achieve a resolution in a time efficient honest manner.

What ramifications are evident on my credit report post the settlement resolution.

This can vary depending on circumstances such as if the client was late during the debt settlement process, how the final disposition was entered on the credit report i.e. if the creditor states on the credit report account settled for less, this will have a longer lasting negative impact vs. stating paid as agreed. There are many variables and we will attempt to have the resolution be the most favorable for credit reestablishment concerns.

top

Frequently Asked QuestionsAnswers to common loan modification, forensic loan analysis and debt relief questions.

Loan Modification

Forensic Loan Analysis

Debt Relief