What is a loan modification?
A loan modification is a permanent change in one or more terms of a borrower's home loan, allows the loan to be reinstated, and results in a payment the homeowner can afford.
A Loan Modification is a way to renegotiate your current mortgage with the ultimate goal of placing you into a fixed rate mortgage or reducing your interest rate or monthly payment. In other words, many aspects of your mortgage can be changed to your benefit, including the term of the loan, interest rate, balance of principal and monthly payments. There are many opportunities opened through loan modification and each home owner's situation is unique. Our skilled negotiators will contact your lender on your behalf to renegotiate the terms of your loan.
A Loan Modification is a legal negotiation in which a loan's terms, like the interest rate, the monthly payment or the term, are changed to reflect the current situation of the homeowner. This is legal and done with the approval of the lender.
A Loan Modification will change your existing mortgage note and give you a fresh new start in managing your home. Your account will be brought up to date immediately.
Is Loan Modification right for me?
If you are facing a rising adjustable interest rate, if you have fallen behind on your mortgage or foresee falling behind on your mortgage due to financial hardship, or if you are 'upside-down' on your loan (owing more than your home is worth), then a loan modification is probably right for you.
Does everyone qualify for a Loan Modification?
Not everyone may qualify for a loan modification. Often, this is the case when you have waited too long to act and take charge of your situation.
How do I know if I will qualify for a loan modification?
The number 1 criteria your lender is looking at is your ability to make the new modified payment now and in the future. You need to supply the lender with proof of your income, along with a complete and accurate financial statement detailing your income and expenses to show them that if granted the loan modification, you will be able to afford the new, lower payment.
Any homeowner currently stuck with an adjustable rate mortgage that has been or will be adjusting upwards is a prime candidate for loan modification. Millions of Americans were lured into signing up for interest only mortgage loans and while initially the loan was low and affordable, the double impact of rising interest rates and the inclusion of principal into the payment have caused borrowers to see their payments triple or even quadruple! 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.
Remember that waiting too long to get the process started may actually disqualify you from the program! Do not wait until your ARM or Interest-Only Loan resets again but instead act as soon as you realize that your financial situation is putting you at risk.
What changes occur within the mortgage with a loan modification solution? What happens during a Loan Modification?
A few different things can occur with mortgage modification. A variable rate may become fixed. An interest rate may be lowered, the time period for payment may be extended, or a combination of these arrangements.
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.
During the Loan Modification process, your loan's terms, like the interest rate, monthly payment or the length of the loan, can be renegotiated to match what you can pay. So if you can't afford to make higher payments on your mortgage, we negotiate with your lender to keep the lower payments.
What is foreclosure?
Home foreclosure is a process by which a lender regains a property which they have financed. Typically, this is because the borrower or homeowner is behind on house payments and is unable to catch up, often due to circumstances outside of his or her control. When the lender forecloses on the homeowner, the homeowner must move out of the house, therefore, losing all possession of the property and jeopardizing any possible equity that the homeowner may have in the home. There is a legal time frame, which varies from state to state, which determines how long the foreclosure process can take.
How do Banks and other Lenders perceive Loan Modification? Would they rather foreclose?
Banks DO NOT prefer foreclosure to a reasonable, workable loan modification. Contrary to public image, banks are not looking to scoop up all the homes they can find. They have more real estate in their portfolios than they can handle.
The average foreclosure costs the mortgage lender $50,000 and in today's economic market the number of foreclosures is growing at an alarming rate. It is almost always in the lender's best interest to participate in a loan modification program.
Foreclosure is an expensive process for a lender. Banks are in the business of making loans, in general they don't want to possess the property. You also must remember that not only is foreclosure a long and arduous process for the bank but it also costs money. If the lender goes through the entire foreclosure process significant costs will accrue including posting the notice of foreclosure and advertising the foreclosure sale.
Should I file for bankruptcy to save my house?
Maybe. The American Bar Association has reported that 96% of homeowners who declare bankruptcy end up loosing their home to foreclosure anyway. Bankruptcy is very unlikely to help you save your home. If you declare bankruptcy you will likely end up with BOTH a bankruptcy and a foreclosure on your credit report. That being said, there certainly are times when bankruptcy is appropriate and we recommend you consult a reputable attorney should you think you need it.
Do I have to be currently delinquent on my payments to get a loan modification?
Most lenders are now accepting loan modification applications from homeowners who are not currently delinquent, but who are able to prove to their bank that due to imminent interest rate increases, they will no longer be able to afford the loan payment under the terms of their loan. It is advisable to contact your lender as soon as possible to start the loan modification process, regardless of if you are delinquent or not.
How long do I have to act?
Time is of the essence when you are having difficulty with your mortgage payments. Time is definitely not your friend in this situation. Each day that passes makes it that much harder to get a work out agreement with your lender that you can live with.
Time is of the essence when you are behind on house payments. Time is definitely not your friend in this situation. Each day that passes makes it that much harder to get a work out agreement with your lender that you can live with. The home foreclosure process can take anywhere from a few weeks to many months, depending on your state law and the method of foreclosure your lender chooses to use. We have encountered many homeowners who did not even know that they had already lost their house!
When is the best time to do something about my adjusting ARM?
RIGHT NOW! Time is of the essence in these matters. The faster you act to control your situation, the faster you will work your way out of it. The longer you wait, there are less options available to you.
Can a mortgagee qualify an asset for the Loan Modification option when the mortgagor is unemployed, the spouse is employed, but the spouse name is not on the mortgage?
Based upon this scenario, the mortgagee should conduct a financial review of the household income and expenses to determine if surplus income is sufficient to meet the new modified mortgage payment, but insufficient to pay back the arrearage. Once this process has been completed the mortgagee should then consult with their legal counsel to determine if the asset is eligible for a Loan Modification since the spouse is not on the original mortgage.
What is an acceptable Hardship situation?
Each homeowner has a unique set of circumstances that caused them to fall behind on their home loan, but generally the lenders consider divorce/separation, loss of income, death of spouse, co-borrower or family member, illness, job relocation, military service to be acceptable reasons to consider a loan modification. A compelling loan modification letter included in your loan modification application is a very important part of a successful loan modification.
Will a loan modification help me stop foreclosure? Do I have enough time to stop my foreclosure?
Yes, that is the goal of a loan modification. By working with your lender to find a loan workout solution, your loan is brought current and the foreclosure process is halted.
Up until the foreclosure sale occurs there is still hope. If a sale date for your house has been set you need to act fast. We have stopped sales set for the next day but this is very risky and some lenders will not agree to it. You're best option is to take action immediately to stop foreclosure before it goes too far.
Can my missed payments be added back into my new loan modification?
Yes, the arrears can be added to the new loan balance and spread out over the term to allow the loan to be brought current.
Can a mortgagee include late charges in the Loan Modification?
Mortgagee Letter 2008-21 states that accrued late charges should be waived by the mortgagee at the time of the Loan Modification.
Is it true I may be able to skip a payment during the modification process?
YES! Oftentimes, we are able to capitalize at least one month's payment in the process of the modification.
Are you trying to buy my home?
NO! Absolutely not! We work with your lender to negotiate your current loan terms. You remain the owner, title holder and note holder. In no way shape or form do we ever assume ownership of your property.
Should I try to do this myself?
No. If you have a claim with an insurance company you will be treated much better with a public adjuster pushing the insurance company to treat you fairly. A public adjuster works for you, not the insurance company. Loan modification is the same situation. The bank is not your friend. You need someone who understands your rights and the process of loan modification. We work for you. Possibly the most important reason you should work with us is the fact that all families who are candidates for loan modification are experiencing very difficult times. Extremely high levels of stress cause sadness and confusion. You need a company who understands how difficult it is for you and your family to weather such a storm. We understand. We care. We will help you.
It is very unlikely that a borrower could accomplish a loan modification or pay rate reduction alone. As you may know from experience, mortgage lenders are averse to any suggestion of a workout from the borrower directly. However, they will listen to our lawyers! We are professional real estate attorneys and specialize in dealing legally with lenders. Our mission is to protect you and your home.
Is Loan Modification similar to Debt Consolidation or Refinancing?
The answer is a resounding no. Debt consolidation seeks to lump a group of unsecured debts into either a loan or a program that offers lower payments. It does not apply to mortgages. Refinancing a home requires the borrower to apply for a new mortgage for the home and as such will require a down payment, an appraisal, and a lot of fees for the lender. This is often not an affordable solution for a borrower who is already stretched to the max with the current mortgage payment and the existence of an adjustable rate mortgage that eats up a lot of the available funds on a monthly basis may actually be held against the applicant and thus causes the refinance application to be denied. Loan modification seeks to restructure an existing loan.
Our services are for Loan Modifications, whereby we renegotiate with your lender the current terms of your loan, ie. interest rate, loan amount and length of loan. If you are upside down in your home, or have been told "NO" to a traditional refinance, a loan modification may be right for you.
So how do I get started to modify my loan?
Before contacting your bank's loss mitigation department or a loan modification company, do your homework-learn as much as you can about the loan modification process so you can make informed decisions. Documents relating to your financial situation, income, and mortgage details help modification professionals to draft the papers your lender requires for a need based loan modification approval. Upon receipt, the terms of the mortgage are renegotiated to reflect a lower monthly payment. Best of all, the paperwork is handled in its entirety by the professionals in charge of negotiating the deal and you are not required to attend a closing or any such meeting.
Will I have to meet with the Bank/Lender or deal with Paper-work?
NO! We will handle all of the paper-work for you. You won't have to worry about the legal jargon and negotiations. You never speak with your current mortgage holder. We perform all of the necessary legwork and take the headache away.
How long is the Loan Modification process?
The Loan Modification process generally can take anywhere from one to three months to complete.
Contact us to learn more about Loan Modification process. Visit our website @ www.americanlegalnetworkonline.com.
A loan modification is a permanent change in one or more terms of a borrower's home loan, allows the loan to be reinstated, and results in a payment the homeowner can afford.
A Loan Modification is a way to renegotiate your current mortgage with the ultimate goal of placing you into a fixed rate mortgage or reducing your interest rate or monthly payment. In other words, many aspects of your mortgage can be changed to your benefit, including the term of the loan, interest rate, balance of principal and monthly payments. There are many opportunities opened through loan modification and each home owner's situation is unique. Our skilled negotiators will contact your lender on your behalf to renegotiate the terms of your loan.
A Loan Modification is a legal negotiation in which a loan's terms, like the interest rate, the monthly payment or the term, are changed to reflect the current situation of the homeowner. This is legal and done with the approval of the lender.
A Loan Modification will change your existing mortgage note and give you a fresh new start in managing your home. Your account will be brought up to date immediately.
Is Loan Modification right for me?
If you are facing a rising adjustable interest rate, if you have fallen behind on your mortgage or foresee falling behind on your mortgage due to financial hardship, or if you are 'upside-down' on your loan (owing more than your home is worth), then a loan modification is probably right for you.
Does everyone qualify for a Loan Modification?
Not everyone may qualify for a loan modification. Often, this is the case when you have waited too long to act and take charge of your situation.
How do I know if I will qualify for a loan modification?
The number 1 criteria your lender is looking at is your ability to make the new modified payment now and in the future. You need to supply the lender with proof of your income, along with a complete and accurate financial statement detailing your income and expenses to show them that if granted the loan modification, you will be able to afford the new, lower payment.
Any homeowner currently stuck with an adjustable rate mortgage that has been or will be adjusting upwards is a prime candidate for loan modification. Millions of Americans were lured into signing up for interest only mortgage loans and while initially the loan was low and affordable, the double impact of rising interest rates and the inclusion of principal into the payment have caused borrowers to see their payments triple or even quadruple! 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.
Remember that waiting too long to get the process started may actually disqualify you from the program! Do not wait until your ARM or Interest-Only Loan resets again but instead act as soon as you realize that your financial situation is putting you at risk.
What changes occur within the mortgage with a loan modification solution? What happens during a Loan Modification?
A few different things can occur with mortgage modification. A variable rate may become fixed. An interest rate may be lowered, the time period for payment may be extended, or a combination of these arrangements.
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.
During the Loan Modification process, your loan's terms, like the interest rate, monthly payment or the length of the loan, can be renegotiated to match what you can pay. So if you can't afford to make higher payments on your mortgage, we negotiate with your lender to keep the lower payments.
What is foreclosure?
Home foreclosure is a process by which a lender regains a property which they have financed. Typically, this is because the borrower or homeowner is behind on house payments and is unable to catch up, often due to circumstances outside of his or her control. When the lender forecloses on the homeowner, the homeowner must move out of the house, therefore, losing all possession of the property and jeopardizing any possible equity that the homeowner may have in the home. There is a legal time frame, which varies from state to state, which determines how long the foreclosure process can take.
How do Banks and other Lenders perceive Loan Modification? Would they rather foreclose?
Banks DO NOT prefer foreclosure to a reasonable, workable loan modification. Contrary to public image, banks are not looking to scoop up all the homes they can find. They have more real estate in their portfolios than they can handle.
The average foreclosure costs the mortgage lender $50,000 and in today's economic market the number of foreclosures is growing at an alarming rate. It is almost always in the lender's best interest to participate in a loan modification program.
Foreclosure is an expensive process for a lender. Banks are in the business of making loans, in general they don't want to possess the property. You also must remember that not only is foreclosure a long and arduous process for the bank but it also costs money. If the lender goes through the entire foreclosure process significant costs will accrue including posting the notice of foreclosure and advertising the foreclosure sale.
Should I file for bankruptcy to save my house?
Maybe. The American Bar Association has reported that 96% of homeowners who declare bankruptcy end up loosing their home to foreclosure anyway. Bankruptcy is very unlikely to help you save your home. If you declare bankruptcy you will likely end up with BOTH a bankruptcy and a foreclosure on your credit report. That being said, there certainly are times when bankruptcy is appropriate and we recommend you consult a reputable attorney should you think you need it.
Do I have to be currently delinquent on my payments to get a loan modification?
Most lenders are now accepting loan modification applications from homeowners who are not currently delinquent, but who are able to prove to their bank that due to imminent interest rate increases, they will no longer be able to afford the loan payment under the terms of their loan. It is advisable to contact your lender as soon as possible to start the loan modification process, regardless of if you are delinquent or not.
How long do I have to act?
Time is of the essence when you are having difficulty with your mortgage payments. Time is definitely not your friend in this situation. Each day that passes makes it that much harder to get a work out agreement with your lender that you can live with.
Time is of the essence when you are behind on house payments. Time is definitely not your friend in this situation. Each day that passes makes it that much harder to get a work out agreement with your lender that you can live with. The home foreclosure process can take anywhere from a few weeks to many months, depending on your state law and the method of foreclosure your lender chooses to use. We have encountered many homeowners who did not even know that they had already lost their house!
When is the best time to do something about my adjusting ARM?
RIGHT NOW! Time is of the essence in these matters. The faster you act to control your situation, the faster you will work your way out of it. The longer you wait, there are less options available to you.
Can a mortgagee qualify an asset for the Loan Modification option when the mortgagor is unemployed, the spouse is employed, but the spouse name is not on the mortgage?
Based upon this scenario, the mortgagee should conduct a financial review of the household income and expenses to determine if surplus income is sufficient to meet the new modified mortgage payment, but insufficient to pay back the arrearage. Once this process has been completed the mortgagee should then consult with their legal counsel to determine if the asset is eligible for a Loan Modification since the spouse is not on the original mortgage.
What is an acceptable Hardship situation?
Each homeowner has a unique set of circumstances that caused them to fall behind on their home loan, but generally the lenders consider divorce/separation, loss of income, death of spouse, co-borrower or family member, illness, job relocation, military service to be acceptable reasons to consider a loan modification. A compelling loan modification letter included in your loan modification application is a very important part of a successful loan modification.
Will a loan modification help me stop foreclosure? Do I have enough time to stop my foreclosure?
Yes, that is the goal of a loan modification. By working with your lender to find a loan workout solution, your loan is brought current and the foreclosure process is halted.
Up until the foreclosure sale occurs there is still hope. If a sale date for your house has been set you need to act fast. We have stopped sales set for the next day but this is very risky and some lenders will not agree to it. You're best option is to take action immediately to stop foreclosure before it goes too far.
Can my missed payments be added back into my new loan modification?
Yes, the arrears can be added to the new loan balance and spread out over the term to allow the loan to be brought current.
Can a mortgagee include late charges in the Loan Modification?
Mortgagee Letter 2008-21 states that accrued late charges should be waived by the mortgagee at the time of the Loan Modification.
Is it true I may be able to skip a payment during the modification process?
YES! Oftentimes, we are able to capitalize at least one month's payment in the process of the modification.
Are you trying to buy my home?
NO! Absolutely not! We work with your lender to negotiate your current loan terms. You remain the owner, title holder and note holder. In no way shape or form do we ever assume ownership of your property.
Should I try to do this myself?
No. If you have a claim with an insurance company you will be treated much better with a public adjuster pushing the insurance company to treat you fairly. A public adjuster works for you, not the insurance company. Loan modification is the same situation. The bank is not your friend. You need someone who understands your rights and the process of loan modification. We work for you. Possibly the most important reason you should work with us is the fact that all families who are candidates for loan modification are experiencing very difficult times. Extremely high levels of stress cause sadness and confusion. You need a company who understands how difficult it is for you and your family to weather such a storm. We understand. We care. We will help you.
It is very unlikely that a borrower could accomplish a loan modification or pay rate reduction alone. As you may know from experience, mortgage lenders are averse to any suggestion of a workout from the borrower directly. However, they will listen to our lawyers! We are professional real estate attorneys and specialize in dealing legally with lenders. Our mission is to protect you and your home.
Is Loan Modification similar to Debt Consolidation or Refinancing?
The answer is a resounding no. Debt consolidation seeks to lump a group of unsecured debts into either a loan or a program that offers lower payments. It does not apply to mortgages. Refinancing a home requires the borrower to apply for a new mortgage for the home and as such will require a down payment, an appraisal, and a lot of fees for the lender. This is often not an affordable solution for a borrower who is already stretched to the max with the current mortgage payment and the existence of an adjustable rate mortgage that eats up a lot of the available funds on a monthly basis may actually be held against the applicant and thus causes the refinance application to be denied. Loan modification seeks to restructure an existing loan.
Our services are for Loan Modifications, whereby we renegotiate with your lender the current terms of your loan, ie. interest rate, loan amount and length of loan. If you are upside down in your home, or have been told "NO" to a traditional refinance, a loan modification may be right for you.
So how do I get started to modify my loan?
Before contacting your bank's loss mitigation department or a loan modification company, do your homework-learn as much as you can about the loan modification process so you can make informed decisions. Documents relating to your financial situation, income, and mortgage details help modification professionals to draft the papers your lender requires for a need based loan modification approval. Upon receipt, the terms of the mortgage are renegotiated to reflect a lower monthly payment. Best of all, the paperwork is handled in its entirety by the professionals in charge of negotiating the deal and you are not required to attend a closing or any such meeting.
Will I have to meet with the Bank/Lender or deal with Paper-work?
NO! We will handle all of the paper-work for you. You won't have to worry about the legal jargon and negotiations. You never speak with your current mortgage holder. We perform all of the necessary legwork and take the headache away.
How long is the Loan Modification process?
The Loan Modification process generally can take anywhere from one to three months to complete.
Contact us to learn more about Loan Modification process. Visit our website @ www.americanlegalnetworkonline.com.
