Loan Modification

A home loan modification is a permanent change in one or more of the terms of a loan allowing the loan to be reinstated resulting in a lower payment that the borrower can afford better during their current hardship. Most cases prove that a homeowner in need of help will indeed qualify for a loan modification. Do you Qualify? - Apply Today.

Let’s make sure that you understand what a loan modification
can actually do for your situation, consider the following:

• Loan modifications are not the same as debt consolidations, refinancing loans, or even forbearances. Instead, they are long term solutions for rising interest rates or other hardships that are threatening to overwhelm the budget of a homeowner.
• Loan modifications stop foreclosure proceedings and instead reinstate the loans as they are being modified.
• A loan modification is indicated when the original loan that is secured by a residence has terms that make it impossible for the homeowner to continue making the payments, thus risking the loss of the residence.

Other facts that explain why lenders are in favor of working with borrowers and their legal specialists in order to negotiate equitable loan modifications.

• Modified mortgages may use a step rate approach or an extended term methodology to provide for the repayment of the due and past due funds. The lower payments ensure the repayment by the borrower while to the lender the added time is actually money in the bank in terms of yet to be earned interest due.
• A modified loan protects the credit rating of a borrower and it also helps lenders in showing less defaulting loans in their portfolio. This of course makes a good impression when the financial institution is wooing potential investors.
• All or portion of the outstanding principal and interest, past due escrow, late fees, and even costs may be rolled into the loan modification and thus will not be lost revenue to the lender. Since they are spread over a long period of time, they do not pose a problem to the borrower.
• Foreclosure is avoided and even though banks routinely foreclose on properties and sell the homes to other buyers for a fraction of a price, the slowing housing market has made it difficult for banks to unload such properties and then recover any additional funds from the previous homeowners. Loan modification is a fiscally much more attractive solution for any lender.

If you think you qualify, Act Now!

Here are the requirements you must meet in order to be considered a good candidate for a loan modification process to be started on your behalf:

• Your monthly mortgage payment MUST be affected directly by a verifiable reduction in income or hardship.

• You MUST be employed or have another source of a stable and provable monthly income.
• You MUST live in the home that you are attempting to modify