Frequently Asked Questions About Loan Modification
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What if I recieved a notice of a sale date?
There is still hope but you must contact us today. The longer you wait, the fewer options you have.
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What is a loan modification?
Simply put, a loan modification is a renegotiation of your loan with your existing lender to restructure the loan to meet your current financial situation.
A loan modification consists of 2 aspects:- Interest Rate Reduction - We come in and generally cut your rate in half on the 1st and 2nd mortgage.
- Principal Reduction- We come in and reduce the principal loan amount on the 1st or 2nd mortgage.
Foreclosures are bad for banks. They lose every time. Banks are not in the business of buying and selling property. With each foreclosed property comes an attorney fee, buyer agent fees, seller agent fees and the risk of the homeowner destroying the property before they leave. What does this mean for you? Your lender is motivated to modify your loan and help you stay in your house. With a modification, everyone wins!
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How do I know if I qualify for a loan modification?
If you are behind on your payments, in foreclosure, soon to be in foreclosure, have received a notice of default or sales date, have an adjustable loan, have a negative amortization loan, a balloon loan, a first and second on a single property, or a high interest loan then you qualify.
Basically, anyone experiencing a hardship, in distress, or soon to be in distress qualifies. The larger the hardship, the more leverage the homeowner has! Remember, it is very expensive for a lender to foreclose on your property. It is in the lender's best interest to keep you in your home.
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Why hasn't my lender contacted me or why won't they work with me on a loan modification?
With the market the way it is right now the lenders are focused on refinancing the loans that they can and making new loans which leaves them little time and resources to contact their existing clients. Simply put, they don't have the time or personnel to deal with your situation.
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Can't I just do this directly with my lender?
You can, but it's highly recommended that you don't. Over 87% of homeowners fail in their attempt to modify their mortgage.
Why do you ask? For the simple fact, the average homeowner does not know the loan modification guidelines associated with their particular lender. In most cases they either show they make too much money to qualify for a loan modification or too little money. The guidelines for a loan modification are very strict and rigid. The reason so many people hire us to represent them we have over 13 years of experience in the industry. Unlike other companies, we have a copy of the loan modification guidelines for each and every lender.
Therefore, we know how to structure a file to get it approved before we even submit it. In some cases, ff you go directly to the lender they will try to give you an option that will benefit them first, and you second. Most lenders that do some type of plan, only do a temporary solution that many times will put the homeowner right back into a hardship after just a few months. We provide a permanent solution that benefits you first and your lender second.
Our goal is to keep you in your home with a solution that will keep you from experiencing a hardship ever again. Your lender's goal is to make money on the loan.
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How long does the process take?
With the amount of modifications being done today the average turnaround time from start to finish 8 to 12 weeks. What this means to you is that you now have 2 to 3 months to save money while you're not making a mortgage payment.
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Is this process guaranteed?
No the modification is not guaranteed. We pre-qualify each file before it is submitted. If our negotiating team does not think they can successfully negotiate your loan your money is refunded. This is why we have a 97% success rate. We will only accept the files that we are certain can be modified successfully.