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"Millennium Consulting made a significant difference in my life by working tirelessly with my lender to lower my payment by over 25% per month! Without the proprietary information that they presented to my lender, and the communication and payment strategy that they presented to me, this never would have gotten done. This difference not only helped keep me in my home, but also gave me and my wife a brighter financial future. Thanks Millennium Consulting, I could not have done it without you!"

– Eric and Andrea (Arizona)

FAQ


What do you charge for a consultation?
We charge $200 to review your situation and tell you exactly what options you do and do not have based on your specific scenario. We can look at both property retention and liquidation within the consultation.

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What are the costs of the services offered by The Millennium Consulting Group compared to competitors?
At The Millennium Consulting Group we do charge an up front fee of $2500.00 when you have one lien and $3000.00 if you have multiple liens on the property. This can be paid as a lump sum or broken down with two equal payments (One at the start and another 30 days later). Our competitors are currently charging anywhere from $2,200.00 to $7,000.00 per property. We are very efficient in the services we provide and believe that by charging less than the industry average, our customers will be more likely to refer friends or family members who may be struggling with similar situations.

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Are there any additional costs to me as the homeowner when I work with you to retain the property?
We do have a contingency fee of 5% of any principal reductions we negotiate. This means if we negotiate $100,000 in principal reduction you will have an additional cost of $5,000. This is only when we get principal reduction or else this fee doesn't come into play. When we do not negotiate principal reduction but we do significantly reduce the monthly payment we will charge 10% of your first years savings. Significant payment reduction would be defined as reducing your monthly payment by $700 or more. So if we reduce your monthly payment by $1000 a month moving forward you will have an additional fee of $1200.

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What is a short sale?
A short sale is when a bank is willing to accept less than what is owed on the property in order to enable a homeowner who is significantly upside down on their property to sell the home as opposed to foreclosure or forcing them in to bankruptcy.

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Does Millennium Consulting Group only work with the homeowner or will they also work with realtors to facilitate a short sale?
We work with homeowner s as well as numerous real estate agents handling the short sale processing and negotiations.

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What is the cost when all I want to do is short sale the property?
If all you want to do is short sale the property and get out from under the liability we charge a flat processing fee based on the situation. Most real estate agents put our fee into the contract as a buyer cost so we can help reduce the financial burden on the seller. If the buyer does not pay the fee then the seller will be required to pay it when the transaction closes. Millennium Consulting Group will also try to negotiate additional compensation from the bank but this compensation is not guaranteed and does not change the flat fee charged.

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Is your fee refundable if we can not get something approved with my bank?
We do not offer refunds of the up front fee. The reason we do not offer refunds is that regardless of the outcome certain services have to be performed and in performing those services we have to pay our staff. We are not a basic modification company trying to fit our clients into a government program we are trying to reduce the principal and in going after a different outcome than everyone else in the industry we have to see the file to the end and that takes much more time and effort.

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Do I need to have Legal / Attorney representation? Does that help the outcome?
Most states have adopted new business licenses for people who have banking experience who would be more qualified to negotiate banking issues than an Attorney. Attorneys are not aware of what banks may be willing to do in order to mitigate their internal losses. Understanding this is critical in working towards the best financial outcome for our clients. Attorneys not only have a track record of converting less than 5% of the modification clients they sign up but also have a track record of dragging out short sales much longer then normal. It seems to us that attorneys generally try to scare homeowners into bankruptcy which is not in the best interest of the homeowner in most cases.

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Can you do anything with my 2nd or 3rd lien attached to the property?
If you have additional liens we will negotiate those as well and try to get significant principal reduction or settlements that will actually remove the lien from the property.

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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.

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What are the tax ramifications of foreclosure or a short sale currently?
Currently if you short sale your property and the bank loses money through the transaction your bank will issue you a 1099 for the amount of money they lost. Prior to 2007 this 1099 would be additional taxable income and you would owe the IRS taxes on this money just like ordinary income. Currently and until January 1st 2012 the homeowner in most cases is exempt from the tax liability associated with these 1099s on owner occupied properties.

If the property is non owner occupied than you may have tax liability but you may be able to offset this with a combination of depreciation and loss on investment. The Millennium Consulting Group is not a CPA firm and you need to contact a licensed CPA to give you definitive information about your situation.

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Can I reduce my principal balance with a loan modification?
Yes, however lenders have internal policies that may not allow for principal reduction. These same banks are getting more aggressive and offering new options as they see the net benefit to them long term.

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If I do get a settlement negotiated on my second mortgage how am I expected to pay the settlement amount?
If we get a settlement approved on your second mortgage you will need to pay the full amount in the form of a cashiers check. We have gotten seconds settled for as little as 4 cents on the dollar.

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How do I know if I may qualify for a Modification?
The basic modification has certain qualifying criteria but these banks also have internal programs designed for homeowners who do not meet these criteria. Why would they have internal programs to offer? Because even if you make too much money to qualify for a loan mod you still may owe hundreds of thousands of dollars more on your home than it is worth and the bank is trying to mitigate their potential losses by offering the homeowner something to make them not feel walking from their home is the only option.

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Can you guarantee that I will be approved for a Modification after completing your preliminary work with the Analyzer Service?
No, each mortgage lender has 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.

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Can Making Home Affordable help me if my loan is not owned or securitized by Fannie Mae or Freddie Mac?
Yes. The Millennium Consulting Group offers help to homeowners 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.

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If you modify my first mortgage what happens to my second mortgage?
Unlike most of our competitors we do not just stop at the first mortgage we are also trying to get something done on the second mortgage that makes sense long term. Negotiated outcomes on second mortgages very from basic rate reductions to as low as 0% to all out settlements on the accounts. These settlements get the lien released from title and in some cases have been for as little as 4 cents on the dollar of what is owed.

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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.

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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.

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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. We have gotten interest rates even lower in certain situations.

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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:

  1. First try to extend your payment term. At the servicer's option your payments could be extended out to 40 years.
  2. 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 curtailment.
  3. 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. If you can still not afford the payment than obviously something need to be done in order to get you out of this huge liability. In this situation or if the bank is not willing to offer anything that makes sense the next step would be to attempt to short sale the property. The Millennium Consulting Group will help facilitate the short sale for the homeowner as a way to help get out of this huge debt that may be depleting all your reserves.

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