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!



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!

Recently, Bank of America launched a new program called the Principal Reduction Plan.  According to the plan, people who have home loans with Bank of America and Countrywide and are 60 days or more late on their monthly payments may qualify for “earned principal forgiveness”.  Loans that qualify are, “pay option ARMs, prime two-year hybrid mortgages and subprime loans initially offered by Countrywide. Fannie Mae and Freddie Mac loans will not be eligible”. (Wallet Pop)

Essentially, the purpose of the new plan is to reduce borrowers’ principal balances and to help homeowners avoid foreclosure.  Bank of America promised that it would eliminate, “$3 billion in principal owed by thousands of severely delinquent borrowers who owe more than their homes are worth,” reports the Los Angeles Times.  Many say that the plan came into existence due to increasing pressure from the government for banks to reduce the number of foreclosures and offer assistance to needy homeowners.

“Modifications are better than foreclosure,” said Bank of America executive, Jack Schakett, during a media conference. “The time has come to test this kind of program.”

The new program is expected to launch in May.  At this time, Bank of America says that it has 1.5 million borrowers who are 60 days or more behind on their mortgages.  The bank claims that it will reach out to qualified borrowers, but warns that not all borrowers who have defaulted on their loans will qualify.  Wallet Pop reports that only, “45,000 customers will ultimately qualify for this program.”

Prior to the introduction of the Principal Reduction Plan, banks have tried to combat foreclosures by offering loan modifications.  However, during loan modifications, banks would traditionally lower interest rates, increase loan terms or reduce late fees.  Until now, banks have always been resistant to reducing borrowers’ principal balances.  After realizing that homeowners are considering leaving their homes instead of paying high mortgage payments, banks are being more aggressive and presenting solutions.

The Los Angeles Times says that, “If successful, the plan could become a model for other lenders.”  Should this happen, the fragile real estate market may regain some stability and the number of foreclosures in the United States could decrease – a great win for homeowners throughout the country.  With Bank of America daring to take this huge step and put homeowners’ needs first, it is only a matter of time before other financial institutions feel pressured to follow in its lead.

Read Full Articles:
How Bank of America’s Principal Reduction Plan Will Work (Wallet Pop)

Bank of America to Reduce Mortgage Principal for Some Borrowers (Los Angeles Times)

The government has spent tons to bail out banks during the economic crisis, but according to middle class America, big banks are doing very little to help the average American.  Due to the increase in unemployment and a weak economy, more and more homeowners are finding it hard to make ends meet and pay their mortgages.  In fact, at this time, 6.5 million homeowners in the U.S. are behind on their mortgages.

Despite lofty promises banks made when the government bailout came into play, countless Americans say that they have been given little help and are now on the verge of losing their homes.  Of the 1.1 million Americans that have requested federal assistance, only 168,000 have been helped by banks, the very institutions that promised to give Americans the assistance they needed to recover from economic hardships.

A few days ago, ABC News published a story entitled Whistle-Blower: Banks Give Homeowners the Runaround.  To go along with the story, the news station casted a poll and the results were quite alarming.  According to the poll results, 60% of people feel that banks are not doing enough to help struggling Americans.

ABC News’ story revolves around an insider who works at a very large financial institution.  If you think he is a low man on the totem pole – you are wrong.  The insider reports that he has worked at one of the biggest banks in the U.S. for over 20 years and is a Vice President.  Deeply bothered by the bank’s response to struggling homeowners, the Vice President decided to come forward and discuss how the bank is giving the runaround to people who are in desperate need of assistance.

According to the informant, people who call the bank for assistance with loan modifications or with lowering their monthly mortgage payments are told to call an 800 number.  However, instead of answering homeowners’ questions and lending assistance, bank representatives simply give callers the runaround.

He also told ABC News that, “In our managers meeting, which can last eight or nine hours, we probably addressed mortgage modifications five minutes or less.”  When asked how many loan modifications his bank has completed in the last year, he responded, “Fully completed?  Zero.”

After getting the runaround, many homeowners come to the informant in tears and are deathly afraid.  Not to mention, these homeowners often have to deal with astounding late fees and penalties, as well as the fear of losing their homes.  Each year, it is estimated that banks receive $40 billion in penalties and late fees alone, which proves these institutions are more focused on capitalizing instead of giving much needed assistance.

If the government does not intercede and banks continue to hold all the power, the middle class will continue to face difficult times.  In fact, some question how the middle class will even survive.

If you are finding it difficult to get a loan modification, contact the friendly staff at American Economic Solutions.  We would be happy to work with you and to provide you with dependable help when you need it most!

Watch full story from ABC News: http://abcnews.go.com/WN/saving-middle-class-whistle-blower-banks-helping-americans/story?id=10178938

Up until recently, President Obama’s plan to counterattack the foreclosure crises in the United States was to keep homeowners in their homes.  Now, the plan has changed as the Obama Administration is looking to help homeowners sell their homes at a loss.  Under the short sale program, homeowners that have defaulted on their mortgages will get paid to leave their homes. 

In an article entitled Program Will Pay Homeowners to Sell at a Loss for the New York Times, author David Streitfeld writes, “This latest program, which will allow owners to sell for less than they owe and will give them a little cash to speed them on their way, is one of the administration’s most aggressive attempts to grapple with a problem that has defied solutions.”  Streitfeld also says that, “More than five million households are behind on their mortgages and risk foreclosure.” 

This alarming number prompted the Obama Administration to launch a $75 million mortgage modification plan, but the initiative was only successful at helping very few homeowners.  For example, in the month of October, 500,000 people tried to modify their home loans, but only 2,000 were successful at obtaining permanent loan modifications (New York Times).

With millions of homeowners in the U.S. on the verge of losing their homes, the government needs to take action or the crises will escalate.  It seems that the government’s response is the new short sale program, which is scheduled to begin on April 5, 2010.  Instead of trying to obtain loan modifications, homeowners will now be encouraged partake in short sales. 

The new plan is supposed to make the short sale process easier for both homeowners and mortgage lenders.  In the past, many homeowners complained that mortgage lenders and banks had made the short sale process an utter nightmare by refusing to accept offers from buyers.  Now, banks will be asked to accept offers, even if they are for less than what they expect.

The program has many benefits for homeowners and communities.  For example, homeowners will not have to worry about incurring damage to their credit ratings because they will avoid foreclosure.  Communities will have less foreclosed properties and instances of vandalism.  Yet, even though there are many pros and a short sale boom seems eminent in 2010, lenders are wary and anticipate fraud.  They also do not want to sell properties at a loss.  To them, it is just bad business and the program presents great risks.

At American Economic Solutions, we think that it is about time that the government passes an initiative that addresses the issues homeowners are confronted with in this tough economy.  So much has already been done to help banks and lenders.  Now it is time to focus on what the middle-class needs, better foreclosure solutions and compliance from mortgage lenders.  We are very excited about the possibilities the new short sale program presents and are looking forward to helping homeowners avoid foreclosure.

On February 8, the California section of Real Estate Rama posted an article entitled “New Research Shows Red-lining in Five California Cities”.  According to the article, predatory lending is hitting cities in California that have a high Latino or African American population.  The article, which cites a report by the California Reinvestment Coalition, asserts that many banks have failed to prevent foreclosures and that there is a high denial rate for home loans amongst the Latino and African American populations.

The report produced by the California Reinvestment Coalition examined the practices of banks, including large mortgage financiers, in five California cities over the past three years.  The cities surveyed were:  Los Angeles, Oakland, Sacramento, San Diego and Stockton. 

After the study concluded, the California Reinvestment Coalition discovered that there were a high amount of predatory home loans and defaults, specifically within the Latino and African American communities.  The study also revealed that the amount of loan modifications and new prime loans were very low compared to other ethnicities and neighborhoods.

The report from the California Reinvestment Coalition brings to light four main points.  First, mortgage lenders in California have saturated communities with high-cost predatory loans.  Second, a large number of foreclosures have resulted from predatory lending practices.  Third, the majority of mortgage lenders are not working with families to prevent foreclosures.  Finally, mortgage lenders are denying home loans and loan modifications to a high number of applicants in the Latino and African American communities.

Kevin Stein, associate director of the California Reinvestment Coalition, said, “The data confirm what we have heard from housing counselors and borrowers—that banks aren’t meeting their commitments to help families stay in their homes, and that this is further destabilizing California communities.”

At American Economic Solutions, we feel these are bad banking practices that must be stopped immediately.  With the number of foreclosures already being so high and California’s staggering unemployment rate, we find it disconcerting that banks are choosing to deny select communities credit. For too long, mortgage lenders have been taking advantage of homeowners’ lack of knowledge. A lot of these mortgages were issued while homeowners were under duress and looking for options. 

The reality is, the government has been taking care of the banks, but banks are not taking care of homeowners. Lenders received billions, if not trillions, in assistance from the government.  Historically, lenders have been very conservative, but they very liberally took the government’s money.  Instead of passing the savings and money onto homeowners who need it the most, they pocketed it, leaving countless people homeless and economically devastated.

Read full story from Real Estate Rama – California….

In a recent article in the November 25th New York Post entitled “Judge Blasts Bad Bank, Erases 525G Debt”, the author details how Suffolk Judge Jeffrey Spinner wiped out more than $525k in mortgage payments to the California bank formerly known as IndyMac Bank, now known as OneWest. At American Economic Solutions (AES), we have run into several issues with this bank and the way they handle – or better yet mishandle – the clients that we represent.

AES has continually found OneWest’s loan modification practices to be disconcerting. The New York Post seems to be in agreement with our company’s viewpoint, “Spinner pulled no punches as he smacked down the bankers at OneWest — who took an $814.2 million federal bailout but have a record of coldbloodedly foreclosing on any homeowner owing money.” AES’s stance is this – if the banks received a bailout from the TARP (Troubled Asset Relief Program) – so should their clients!

Now, in the case of OneWest (IndyMac), at least they are getting exposed for the lack of service they have provided their clients who had qualified for loan modifications. It’s just a shame that it took this long for something to happen. We hope to see more people take action against these types of unethical business practices. Thank you Judge Jeffrey Spinner.

To read more from the New York Post’s Article visit: http://www.nypost.com/p/news/local/judge_kos_mortgage_to_slap_bank_28ZS1oW8Y58z6gu1AQbWMI#ixzz0YMzCXGKQ

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/