Loan Modification
December 1st, 2009 | 
Author: You May Qualify for a Loan Modification to Reduce Your Mortgage Payment and Avoid Foreclosure
If you are struggling to make your mortgage payments for any reason, a loan modification may be the answer. We can renegotiate the original terms of your mortgage loan with your lender and get you a payment you can afford. If you prefer to sell your home, we can negotiate a sales price with the bank and help you sell your home so you can walk away without further obligation. Fixing Loans and Saving Homes!
Our team of professional loan modification negotiators will listen to your story, properly prepare your file and negotiate directly with insiders at your mortgage company to get you quick results. Best of all, no up-front fees are required.
You pay only for results…not promises.
How Does Loan Modification Work?
A loan modification is a negotiation between a borrower and a lender to obtain new rates, terms, or lower loan amounts, to make the mortgage payment more affordable or save the home from foreclosure. One out of ten home owners are currently behind on their mortgage payments. The banks that back these loans
are now faced with the decision to either foreclose on properties or work out affordable solutions to keep borrowers in their homes. And, with the Obama Administration’s Home Affordable Modification Program, you do not have to be behind on your current mortgage to be eligible for loan modification.
If you are eligible for a loan modification – and your file is properly submitted to the lender – then getting a loan modification is a mathematical certainty.
But, you have to process and submit your application correctly. You could deal directly with your lender to try to negotiate your loan modification. But, your lender has a fiduciary responsibility to its investors first. The lender is simply acting as a collection agency and may not have your best interest at heart. Our group gives you the unbiased support you need to renegotiate the terms of your current mortgage agreement. We represent you in the negotiations.
For your convenience, here are some answers to commonly asked questions that you may have about loan modification.
Q. Can I do a loan modification if my home is already in foreclosure?
A. Yes. Time is of the essence, but there are special circumstances that our professional negotiators can take advantage of, and buy enough time to analyze your case.
Q. If I’m not in foreclosure, can I still lower my monthly mortgage payment?
A. Yes. In many cases, this is easier because you have maintained your good credit standing with your lender. If your debt-to-income ratio is higher than 31%, chances are you are eligible for a lower payment.
Q. I’ve already failed at my own loan modification. How can you help me?
A. Our group has a full-time team of experts that can submit your application through the correct channels – properly packaged – to meet guidelines that are constantly changing. Fifty percent of all home owners who try to negotiate their own loan modification fail to get approval. If this has happened to you, we may be able to help you resubmit it correctly and get you approved.
Q. How do I get the $5,000 offered by Obama’s Home Affordable Modification Program?
A. When your modification is approved under the Obama guidelines, the U.S. Government will contribute $1,000 per year for five years toward your principal balance if you make your payments on time.
Q. How do I qualify for loan modification?
A. Part of successfully negotiating a loan modification requires proving to the lender that you have the ability to meet the terms of a new agreement. This may include verifying that you have a steady source of income that will cover your total monthly budget, as disclosed on your loan modification worksheet.
Banks also require a hardship letter, which explains specific circumstances that may be factors in why you are unable to make payments on your current loan.
Q. How will loan modification affect my credit?
A. A loan modification will improve your credit scores because the lender will start reporting your current payment history as “on time”, rather than “past
due”. Making your future mortgage payments on time and in full will also improve your credit scores.
Q. Why would my lender want to do a loan modification instead of foreclosure?
A. A foreclosure is a very timely and expensive process. By negotiating new terms on your current loan, the lender avoids having to take possession of a property that may require additional rehabilitation and maintenance costs, while it sits on the market for several months waiting to sell.Basically, in most cases, it is more expensive to foreclose than it is to negotiate with the current home owner.
Q. What terms can I expect from my modified loan?
A. No two loans, banks or borrowers are exactly alike, so there is a huge variation in loan modifications. We have seen significant results in the following areas.
- Interest rate reduction
- Term adjustments
- Principal forbearance
- Interest rate type changes
- Late charge forgiveness
- Re-amortization…and MORE!
In most cases, the lender will reduce your monthly payment to an amount you can afford. Call us today to take action and get a monthly payment that works for you. You won’t be disappointed.
We can be reached at 219-695-0369 or scott@usccraonline.com.
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