Anytime homeowners are thinking about modifying the terms of their home loans, it is important that they work with a credible loan modification company for numerous reasons:

Experience. Most people do not possess the experience it takes to successfully complete the loan modification process.  In fact, the majority of people who choose do-it-yourself loan modifications never complete the process.  However, when homeowners work with experienced loan modification companies, such as American Economic Solutions, they are able to successfully modify their home loans and obtain favorable terms from their lenders.

Knowledge. The majority of homeowners do not the same level of knowledge as loan modification companies do.  Additionally, most homeowners are not aware of all the federal loan modification programs that exist or even how to apply for these programs, which is why working with a company that specializes in home loan modification is crucial.

Relationships. Homeowners usually do not have established relationships with their mortgage lenders, which can make it difficult to enter into negotiations or get the best rates on their home loans.  At American Economic Solutions, we have worked tirelessly to build relationships with large lenders, like Bank of America and ING, and our relationships always benefit our clients.

Time. Anytime homeowners choose to pursue mortgage modifications on their own, they not also waste a great deal of money, but also a lot of time.  However, when homeowners work with American Economic Solutions, they are often amazed at how quickly we are able to modify their loans and they avoid wasting precious time.

Rates. The primary reason homeowners seek loan modification is to lower their monthly payments and to reduce interest rates.  Yet, the vast majority of homeowners do know have the experience, skills or abilities to get the best terms possible and this is why working with a loan modification company is so important.  At American Economic Solutions, we have helped innumerable homeowners get the lowest rates on their home loans, reducing their monthly mortgage payments and helping them save a ton of money.

Need assistance with loan modification?  Contact our knowledgeable specialists now!



If you are a California homeowner who entered into a short sale or completed the loan modification process in 2009, chances are that you were very relieved to hear that Governor Arnold Schwarzenegger signed SB401.   This new measure was created to offer homeowners tax relief on mortgage debt that was forgiven through:

• Foreclosures
• Short sales
• Loan modifications

Before SB401 came into existence, homeowners throughout the state were exempt from paying taxes on forgiven mortgage debt.  However, they were required to pay state taxes on the supposed income they acquired through short sales, loan modifications and foreclosures.  Many people started to coin this revenue “phantom income” and thought it was unfair that they had to pay additional state taxes, especially after losing their homes and properties.

With the new measure, homeowners who filed 2009 tax returns did not have to pay taxes on the amount generated from the difference between their home sale prices and mortgage balances.  In order to be eligible for tax forgiveness, homeowners had to be Qualified Primary Residents and could not exceed $800,000 in indebtness or exceed $500,000 in forgive debt.

SB401 is a great win for many people in the state, including those who have filed for consumer bankruptcy and those who have completed or are considering short sales.  With SB401, people who decide to partake in short sales, or the Home Affordable Foreclosure Alternatives Program (HAFA), can do so without incurring additional tax consequences.  Now that these individuals do not have to worry about incurring a hefty tax bill, they have the freedom to make financial decisions that will suit their best interests instead of worrying about tax penalties.

If you would like to learn more about SB401 and how it can make the short sale process easier for you, we encourage you to speak with our knowledgeable specialists by calling 1-888-500-2632.  We would be happy to discuss SB401 with you and can provide advice on both short sales and loan modifications, ultimately allowing you to pursue of a course of action that is most beneficial for you and your family.

When it comes to the topic of loan modification, there tends to be a lot of fiction and little fact circulating, which can make it difficult for homeowners to understand their options.  If you are thinking about loan modification, this blog will be of immense help and has been created by our team of experienced, accredited and knowledgeable loan modification specialists:

Fiction:  You must be behind your mortgage to apply for loan modification.
Fact:  This is absolutely false and a popular misconception. In order to get your home loan modified, you do not have to be late on your monthly mortgage payments.  You simply have to prove to your mortgage lender that you are in danger of defaulting on your mortgage to initiate the loan modification process.

Fiction:  You can’t modify your home loan if you have received notice of foreclosure.
Fact:  Many people wrongly assume that if their lenders have issued notice of foreclosure, it is too late to pursue loan modification.  Yet, the reality is, you can still negotiate more favorable loan terms with your lenders and modify your home loan even after receiving foreclosure notices.  If you are successful with your loan modification, you can stop foreclosure and save your home.

Fiction:  You can modify your home loan on your own.
Fact:  While it is true that you can try to modify your home loan on your own, the fact is that very few homeowners have been successful when trying to seek loan modifications alone.  Many report that they found the process confusing, strenuous and complicated and most say they never completed their loan modifications.  For this reason, homeowners should always seek help from loan modification specialists instead of trying to get through the process on their own, which can cost them time and money.

Fiction:  Attorneys are best equipped to handle loan modifications.
Fact:  Attorneys are not the best choice for homeowners pursuing loan modifications.  Instead, homeowners want to work with a reputable company that specializes in modifying home loans, like American Economic Solutions (AES).  Our company is approved by the Better Business Bureau (BBB) and, unlike lawyers who claim they are loan modification experts, we can actually prove we are experts as we have successfully modified hundreds of home loans nationally.

If you would like to learn more about the facts surrounding loan medication, we strongly encourage you to contact our knowledgeable specialists by calling 1-888-500-2632!

One of the many questions that homeowners ask when they are on the verge of losing their houses is, “Will filing for bankruptcy stop foreclosure?”

The answer to this question is never easy to come up with because it depends upon the circumstances that are involved.  In some cases, the answer will be “yes” as many homeowners prevent foreclosure by filing for Chapter 13 or Chapter 7 bankruptcy.  Unfortunately, in other cases, the answer will be “no”.

After people file for consumer bankruptcy, an automatic stay is issued.  This stops creditors and collectors from calling people to collect debts that they owe.  However, this stay is only temporary and will only stop foreclosure for a short period of time.  Even more disheartening is the fact the mortgage lenders and banks can get around automatic stays by appealing to the court to issue lifts.  Once courts grant lifts, lenders will be free to pursue foreclosure.

You may be wondering how this is possible.  The fact is, a home is an asset that is secured by a deed of trust and your mortgage lender is allowed to ask the courts for relief from automatic stays because they financed the purchase of your property.  In order to remain in possession of your home and avoid foreclosure altogether, you will need to negotiate favorable terms with your mortgage lender.  You may also pursue loan modification or short sale by working with the team at American Economic Solutions as both of these alternatives could stop your foreclosure.

The bottom line is this, if you want to stop foreclosure, filing for bankruptcy is really a temporary solution and will provide short-term relief.  If you pursue bankruptcy, you will have to live with several consequences, such as having the bankruptcy on your credit report for up to 10 years.  Therefore, if you are facing foreclosure, it is to your advantage to consider all of your options by speaking with the specialists at American Economic Solutions.

If you are still seriously considering filing for bankruptcy, American Economic Solutions encourages you to work with our preferred partner, Scott Orona, an experienced bankruptcy lawyer.  Scott Orona has helped many homeowners get through the consumer bankruptcy process with little stress and in minimal time.  You can contact Attorney Orona directly by calling 619-306-7627 or by visiting his bankruptcy website:  http://www.sdbankruptcy.net/

One of the biggest challenges homeowners are facing in today’s economy is paying their mortgages.  Last year, over 2 million individuals in the U.S. went through foreclosure (RealtyTrac) and in 2010, another foreclosure wave is expected to hit consumers.

Due to the overwhelming amount of foreclosures, many homeowners are pursuing alternatives in order to keep their homes.  One of leading alternative is loan modification programs.  While loan modification programs are known for helping consumers lower their interest rates, increase loan lengths, eliminate penalties and make lower monthly mortgage payments, the sad reality is that many loan modification programs are offered by fraudulent companies that make money y taking advantage of homeowners.

At American Economic Solutions, we know that loan modifications are a viable option for homeowners, but we also know that if homeowners work with the wrong company or fall prey to predatory mortgage lenders, agents or attorneys, they may wind up in worse predicaments.

Therefore, it is important that homeowners work with a loan modification company that:

• Does not charge upfront fees.  At AES, we charge zero advance fees for loan modifications.
• Is legally compliant.  American Economic Solutions is not only legally compliant, but also SB94 compliant.
• Has years of experience.  The AES team has over 20 years of finance, mortgage and real estate experience.  Some of our team member have Department of Real Estate licenses in multiple states and are Certified Mortgage Planning Specialists.
• Has great standing with the Better Business Bureau.  AES has an upstanding history with the BBB.

These are all qualities that American Economic Solutions has.  At AES, we aim to keep our clients in their homes by offering dependable loan modification programs that are effective and ethical.  Contact us today to learn how our loan modification programs can help you save your home.

For more tips on finding the right loan modification company, check our recent article on eHow.

In today’s market, many homeowners are finding it difficult to make their mortgage payments on time.  For this reason, our team has compiled a list of frequently asked questions and answers which may be helpful for people who are behind on their mortgages.

I am behind on my mortgage.  What are my options?
Your options will depend upon your financial situation, length of delinquency and age.   For example, if you are struggling to pay your mortgage because of accumulated late fees and penalties or have a high interest rate, one of our loan modification programs may be ideal for you.  Or, if you are over the age of 62, you may qualify for a reverse mortgage.  Depending on your circumstances, other options may include short sales, bankruptcy or loss mitigation.

I know other people who have filed for bankruptcy.  Is that the best option for me?
Again, in order to determine which option will work best for you, we would have to consider your individual circumstances.  It is true that many people choose to file for Chapter 7 or Chapter 13 bankruptcy when they are behind on their mortgage payments.  While there are several bankruptcy benefits, like having your debts discharged or being able to repay your debts over the course of 3 – 5 years, it is important that you speak with one of our mortgage specialists before you commit to filing for consumer bankruptcy.  Simply put, there may be better options for your situation.

I just received a notice of foreclosure.  What should I do?
Immediately after you have received a notice of foreclosure, you need to take quick action.  The best thing you can do is contact American Economic Solutions and speak with one of our mortgage specialists.  We may be able to prevent your foreclosure and will do everything we can to help you remain in possession of your home.   Our team will review your current situation and provide effective solutions that will enable you to stop foreclosure.  Remember, the sooner you get our team involved, the better your outcome will be.

What should I do if I want to modify my home loan but don’t know where to start?
You can start the loan modification process easily by speaking with a specialist from American Economic Solutions (AES).  We are a trusted company that has completed hundreds of loan modifications.  With our help, you will avoid scams, pay zero advance fees and have the comfort of a 100% money back guarantee.  We will work closely with your lender to come up with the best mortgage terms possible.

What if I believe I was a victim of a loan modification scam?
If you have been a victim a loan modification scam, you should report the company you worked with to the Better Business Bureau.  You can also file a complaint with your state’s Attorney General’s Office.

For further assistance, contact our team today!

On December 4, 2009, Time featured an article entitled “Why the Loan-Modification Program Isn’t Working” by Barbara Kiviat.  In the article, Kiviat’s stance is simple – the loan modification program is faulty because it does not address the core issue homeowners are facing in this weak economy – lacking paychecks.

In numerous states, the unemployment rate is over 10%, which means that more Americans are without jobs than ever.  Without jobs, people do not have the financial resources to pay their mortgages, even with President Obama’s new loan modification program. 

According to Kiviat, at the close of November 2009, the departments of U.S. Treasury and Housing and Urban Development (http://www.hud.gov) announced, “they would no longer take kindly to mortgage firms that don’t make modifications lasting.”

Historically, mortgage firms were offering short-term or trial loan modifications to homeowners.  In order to qualify for permanent loan modifications, homeowners had to make it through a three month probationary period.  Kiviat writes, “More than 650,000 borrowers have been placed in trial modifications, but as of September, fewer than 2,000 had become permanent.”  With the new loan modification program, the government has one objective – to make loan modifications long-term. 

Still, even with permanent loan modifications, Americans will struggle to pay their mortgages if they do not have jobs or the financial means to keep their homes.  Kiviat says, “While an out-of-work person can, theoretically, get a loan modification under HAMP by proving eligibility for at least nine months of unemployment benefits, the program isn’t set up to handle someone without a regular stream of income.”  Therefore, the overall effectiveness of the newly launched initiatives are questionable and remain to be seen.

At AES (American Economic Solutions), we believe that homeowners can get affordable and lasting terms for their loan modifications when they work with mortgage professionals that understand their financial situations.  Contact us to discuss our no advance fee loan modification programs!

Read full story from Time…

This article written by Justin McHood, entitled “Loan Modification: What to Expect if You are not Currently Late” addresses questions that the Foreclosure Prevention Consultants at American Economic Solutions encounter every day.

In the section entitled “When Loan Modifications Make More Sense than Refinancing”, McHood discusses the topic of when to refinance versus a loan modification. He makes a great argument for homeowners who owe more than their house is worth. He suggests that it makes more sense to work with the homeowner’s lender to get the home loan modified, which may leave the homeowner in a better financial situation.

Another question our Foreclosure Prevention Consultants are faced with every day is, “If the client is not late on the mortgage can American Economic Solutions help the homeowner?”

McHood addresses this obstacle in the next portion of his article in the section entitled, “Loan Modifications: What To Expect If You Are Not Currently Late.” The best recommendation our Foreclosure Prevention Consultants can give is to let the homeowner know that the loan modification varies from lender to lender. While the loan modification process varies by lender, it also varies by each individual borrower’s situation. This is why at American Economic Solutions, we feel it pays to have an authorized company represent the client. We know how to work with various lenders and maximize homeowner/borrower benefits, not the banks’ benefits.
To read the full article referenced above, please visit the following site:
http://www.zillow.com/blog/mortgage/2009/01/28/loan-modification-what-to-expect-if-you-are-not-currently-late/

In Emmett Pierce’s March 22nd article titled, “Loan-Modification business booming,” he states that attorney’s are attempting to reinterpret the law, which prohibits advanced fees for loan modification services in the state of California.

“Some for-profit loan modifiers are circumventing the law by affiliating with lawyers who can request retainer fees. The California Bar Association’s Committee on Professional Responsibility and Conduct recently issued an ethics alert, warning members that such conduct can result in discipline. ‘Over the past two months, the association has received more than 1,800 calls or complaints regarding loan-modification issues,’ spokeswoman Diane Curtis said.”

At American Economic Solutions, our position is this: a client in need of a loan modification should be wary of using an attorney to obtain the same results that a trusted loan modification company can provide. Not to mention, clients should make sure that there is no advanced fee paid for the modification services until the modification is complete.

At American Economic Solutions, our  California clients utilize a 3rd party client-trust account. In the client-trust account, the funds remain in the name of the client while providing AES with sufficient evidence that the client can pay for the service once the loan modification is finished.

In an August 4th article written by Ray Berona titled “No Advance Fee Loan Modification?” Berona writes,

” Why Not Use An Attorney?…
1) Attorneys charge upfront fees, usually with a minimum fee of $3000.00
2) Even if the Attorney is unsuccessful, they will keep the client’s money
3) Most Attorneys have no experience dealing with mortgage lenders
4) The main goal of an Attorney is not to modify a loan but to create a lawsuit against the lender. The majorities of these lawsuits have no grounds, and therefore are unsuccessful. Attorneys will keep the Clients money anyway.”

After reading these articles, American Economic Solutions personally called 3 law firms in San Diego inquiring about loan modification services. We found that all three were attempting to collect an advanced fee for loan modification services.

When we asked the firms about the passage of SB 94, all three gave their spin on what they were doing in regards to collecting advance fees. They stated it was legal.  We were ultimately hung up on by all three law offices after citing points of the SB 94 bill.

Most of these firms were simply attempting to break up portions of the services included in a loan modification and earn the service fee before the modification was completed. SB 94 clearly prohibits this practice. The bill specifically that a person cannot:

“Claim, demand, charge, collect, or receive any compensation until after the person has fully performed each and every service the person contracted to perform or represented that he or she would perform.”

At the end of the day, the decision is up to the homeowner in need of a loan modification. Our goal at American Economic Solutions is to forewarn homeowners as of potential scams that exist in this relatively new industry. While every homeowner has the ability to represent themselves for no charge, American Economic Solutions believes that choosing to work with a reputable firm, like AES, will provide homeowners exceptional services and positive results.

To read the full articles mentioned above please visit the following sites:
http://www3.signonsandiego.com/stories/2009/mar/22/1n22modify00024-loan-modification-business-booming/
http://www.submityourarticle.com/articles/Rey-Berona-5872/no-advance-fee-loan-modification-61694.php