What is a Loan Modification?
The simplest expanation is a loan modification restructures
the terms of a loan without actually refinancing the property it secures.
Wikipedia defines a loan modification as an agreement between the bank and the
borrower which stipulates a long term relief from untenable loan terms. The
modification of the loan applies to the terms governing the interest rate, the
amount of your monthly payments, and in some cases the length of the loan (ie 30
years).ases also the length of the loan.
Skilled home modification legal specialists work on behalf of borrowers with
their lenders to achieve the relief of a home loan modification via drastically
reduced mortgage payments. Get Help Now And Save Your Home!
Are you a good candidate for Loan Modification?
Any homeowner currently stuck with an adjustable rate mortgage that
has been or will be adjusting upwards is a premier candidate for loan
modification. Millions of Americans were lured into signing up for
interest-only mortgage loans & while the loan was initially cheap and
affordable, the double impact of hugely rising interest rates and the addition
of principal into the monthly mortgage payments have forced borrowers to see
their payments triple or even quadruple, make it impossible to pay their
mortgage.
For homeowners who might only see a raise of 10% in their salary, having
their mortgage payments doubling in one month is impossible to stay financially
stable.
The temporary one or two month forbearance your lender offers is a Band-Aid
but not a bona fide solution to the problem that will get worse and the only way
to halt the skyrocketing house payment and keep your credit intact at the same
time is with the help of a loan modification.
Waiting too long to get the loan modification process started may
actually disqualify you from the loan mod program! Don’t wait until
your adjustable rate mortgage (ARM) or Interest-only loan resets and increases
again but instead act as soon as you can to save your home from foreclosure.
What happens during a Loan Modification?
During a loan modification the terms of your mortgage are renegotiated to
bring the interest rate down to a percentage that fits into your budget and the
monthly payment no longer presents a severe strain on your ability to meet your
other financial obligations.
With the reduction in payments, you will be able to have an affordable
mortgage that is determined by the amount of income you have every month.
Why don’t I simply ask my lender for a Loan Modification myself?
It would be great if borrowers and lenders had the ability to negotiate loan
modifications, but the problem is two-fold:
- Many lenders simply lack the skilled loan officers who know how to
negotiate and set up a loan modification in the first place
- Secondly, some lenders are more interested in recouping any potential
losses up front via a foreclosure than they are in keeping a customer for a long
period of time with the help of a renegotiated mortgage. In both cases it is the
involvement of legal specialists that provide borrowers with the results they
desire.
Is Loan Modification similar to Debt Consolidation or Refinancing?
The answer is a resounding no. With debt consolidating, a group takes a large
amount of unsecured debt and loads it into a larger loan that offers lower
payments. It does not apply to mortgages, and is meant mainly for credit card
debt.
When you refinance your home, you as the borrower are required to apply for a
new mortgage which will require you to 1) get approved 2) pay for closing costs
and 3) make another down payment. Refinancing is not for people who are at risk
of losing their home, as it is very costly and hard to qualify for.
With loan modifications, the goal is to help homeowners whom are in dire need
of financial help by drastically reducing their mortgage payments
and allowing them to stay current on their home.
What is needed from me to get the process started?
To get started with a loan modification you will need to provide the
following:
- Documents on your financial statement including income, mortgage details
and any other necessary financial statements
Once the loan professionals have analyzed your paperwork, the entire process
is handled by the professionals. You are not required to attend any meeting or
deal with any stressful negotiations. Our trained professionals fight on your
behalf, to save your home.
How long is the Loan Modification process?
You will be able to see relief in as short as 2 weeks or a couple of months
if the FHA guaranteed loans are involved. In the meantime, your lender will be
amenable to halting foreclosure proceedings and even the sale of a home!
The added benefit is that you may be able to skip one mortgage
payment and get back on your feet with your budget as a result.
What are typical success rates?
Our success rate for our customers is phenomenal. Of our clients, we have a
90% or better success rate, and with each case our commitment to getting you a
loan modification is unwavering.
We have an entire team of trained, ethical professionals
forming our network of loan modification services and decades of combined legal
experience. Your loan modification is in good hands and within 60-90 days you
will be back on the road to strong fiscal health, and your home will be
saved from foreclosure!.
