Loan Modification FAQ's

• What is Loan Modification?
• Are you a good candidate for Loan Modification?
• How long do I have to act?
• What happens during a Loan Modification?
• Should I try to do this myself?
• Is Loan Modification similar to Debt Consolidation or Refinancing?
• What is needed from me to get the process started?
• What are typical success rates?

What is Loan Modification?

A Loan Modification is a way to renegotiate your current mortgage allowing you to maintain or repair your credit. Many aspects of your mortgage can be changed to your benefit, including the term of the loan, interest rate, balance of principle and monthly payments. It's even possible to have late fees waived. 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.

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 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.

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.

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.

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. Congress recently passed laws that give you special rights to help you modify your loan. We work for you. We are your advocate throughout the process. 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 an advocate who understands how difficult it is for you and your family to weather such a storm. We understand. We care. We will help you.

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.

What is needed from me to get the process started?

Documents relating to your financial situation, income, and mortgage details help legal 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.

How long is the Loan Modification process?

The Loan Modification process takes anywhere from 30-60 days to complete.

What are typical success rates?

Our success rate is amazing and our commitment to our clients is unwavering. With several professional and ethical professionals forming our network of loan modification servicing staff, your loan modification is in good hands and within 30 to 60 days you may be back on the road to fiscal health while having your good credit intact and keeping your home.

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