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!.