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Mortgages Loan :How Can a Loan Modification Help Me?

admin — Fri, 25 Dec 2009 02:23:07 +0000

A Mortgage Modification is the desirable resolution to financial trouble for mortgagees in need of mortgage aid, and as such has been the focus of a substantial degree of press recognition following the coming of the credit crisis.
Most reasonably, you are here on grounds that you

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A Mortgage Modification is the desirable resolution to financial trouble for mortgagees in need of mortgage aid, and as such has been the focus of a substantial degree of press recognition following the coming of the credit crisis.

Most reasonably, you are here on grounds that you in fact have discovered Loan Workouts, the aptitude they have to aid just about all homeowners, regardless if you are behind or current on your loan, and your as likely as not hunting for more enlightenment on Loan Modifications and loss mitigation practice.

My design through this post is to help you become a Home Loan Modification pro, so read on!

We’re going to review the essentials first:

What is a Mortgage Loan Modification?
A Loan Modification is a permanent alteration in the conditions of your existing mortgage as aceded to by you, the borrower and your mortgage lender.

Why on earth do I want a Loan Modification?
A Loan Workout can do many great things for you. Most importantly, succesful Mortgage Modifications lower interest rates, and of course, lower payments. There are borrowers throughout the USA saving tons each month because of Mortgage Modifications.

Further benefits of a Mortgage Loan Modification include the prospect of a decrease in the amountunpaid (principal balance reduction), a revision in the number of years of the loan, converting the loan into a lower, fixed-rate mortgage, and even clearing of late fees and legal fees.

Saving money each month? Lowering my interest rate? Wow that sounds great. What’s the catch?

Why would my lender help me?
Your mortgage lender has lost a huge amount of money due to foreclosures; most of the homes they foreclose on are underwater, meaning that the defaulted loans are significantly higher than the values of the properties. Sure, your lender will “lose” money when your payments go down, however, receiving any mortgage payment from you is better than no payment at all, or worse, having to foreclose on you.

How do I get a Mortgage Modification?
Friends, the name of the game is hardship. Well, it goes a little beyond simple hardship, but that’s what we’re going to start with. The first step to getting a Home Loan Modification is showing your lender that you simply can no longer afford to make your mortgage payments on time.

Now, different lenders adhere to different criteria for determining your “affordable” payment. Many lenders participate in Making Home Affordable, for example, wherein and aside from other guidelines, your “affordable” payment is 31% of your gross income (income before taxes).

Other lender’s use different guidelines to qualify you. With Indymac, for example, the magic percentage of your gross income is 38% (under FDIC’s Mod-in-a-Box program). This “affordable” payment is the total of your Principal, Interest, Taxes, Insurance, and HOA Fees (if applicable).

Still other lenders utilize an archaic system of totaling up your total net income, then subtracting expenses. For many “in-house”, non-Government backed Loan Workout programs, lenders may use a combination of both qualification methods.

Getting qualified is as simple as contacting an expert who can aid you. An expert can also ensure you hit key target hardships that will help you qualify for a Mortgage Modification, and, being a wonderful expert, I’m going to give you a couple of the best hardship’s for free, right here!

Justin’s Acceptable Loan Modification Hardships

A Quick Guide to the Loan Workout Process

Write a Hardship Letter. Need help writing a hardship letter?
Get on the phone with your loss mitigation department. (There’s a complete list of lender loss mitigation department contact numbers at the bottom of the resources page of this website.)
Set realistic expectations, and document your conversation with your lender – start a log – called Countrywide, 12:00 pm Saturday the 29th, spoke with Dave regarding HAMP Loan Modification, faxing over required documents.
Send required documents that your lender needs – Bank statements, tax returns, paystubs, etc.
Negotiate for the best terms that you can on your Loan Modification.
Sign your Loan Workout agreement.

Alrighty, hopefully you’ve got a pretty good idea of what to do to get a Loan Modification. If you need assistance, the best place to get aid is by completing the form to the right. I know that we’ve covered a good deal of Loan Modification information, but there’s a good deal more Mortgage Loan Modification facts that you should know prior to contacting your lender, for example, which programs your lender participates in, and what the guidelines are of those programs. Also, you may want to find a direct contact number so that you don’t have to wait on hold for hours and hours. We’ve got that and more throughout this website, and experts are always standing by to offer you free advice and offer free consultation. We ask that if you do need loan modification representation, that you consider Modification Zoom first!

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Best Mortgage Loan :What is a Mortgage Loan Modification & How Do I Get One?

admin — Mon, 21 Dec 2009 13:14:40 +0000

What is a Loan Modification?
A mortgage loan modification is a process whereby the terms of the existing mortgage are modified to new terms that are more agreeable to the homeowner and lender.
What’s the basic idea behind loan modifications? How does this work? Can a loan

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What is a Loan Modification?

A mortgage loan modification is a process whereby the terms of the existing mortgage are modified to new terms that are more agreeable to the homeowner and lender.

What’s the basic idea behind loan modifications? How does this work? Can a loan modification save my home?

Lenders have been faced with staggering losses due to so many foreclosures. Typically when a lender forecloses on a home, the house is “under-water”. When you add the total cost of foreclosure, including legal fees, maintaining the property, Realtor fees, and the overall loss due to the house being upside down, it typically translates to a huge cost to the lender. Rather than foreclosing on a home, in most cases it makes more sense for a lender to help the homeowner lower their payment on their mortgage and keep their house. By helping borrowers save their homes, lenders are able to still earn interest on the existing loans, and do not have to face the huge cost of foreclosure up front.

What are the benefits of a loan modification?

There are many possible benefits to successfully modifying your mortgage loan, which include a reduction of your interest rate, changing your loan from an adjustable mortgage to a fixed rate mortgage, reducing the principal balance, or the amount that you owe, reducing or forgiving the amount that you owe in late fees and penalties, changing the duration of the loan – e.g. to a 30 yr. or 40 yr. mortgage, and capping the monthly payment to a percentage of the household income.

Who ultimately decides whether or not to grant a loan modification?

Your lender ultimately makes the decision whether or not to modify your mortgage.

What about Government Programs, such as FDIC’s Mod-in-a-Box, HAMP (Home Affordable Modification Program) under the Loan Modification option of Obama Administration’s Making Home Affordable Program, and the new FHA – HAMP? Will these force my lender to grant a loan modification?

It is important to remember that lender or bank participation in these programs is voluntary. Yes, the Government typically provides incentives under these initiatives to lenders to modify mortgages; however, it may not necessarily guarantee that a mortgage loan modification will be completed. Additionally, even if your lender or servicer participates in Government Loan Modification Programs, your loan may actually be held by a servicer that does not participate in these programs. The very best thing to do is to speak with a loss mitigation expert that can help you make sure that you qualify under these Government Programs, such as a HUD Counselor or a reputable Attorney.

Do I have to be late on my mortgage to qualify for a loan workout?

You do not necessarily have to be late on your mortgage to qualify for mortgage help, a lower interest rate, and a lower payment. Many lenders do require that you are late on your payment prior to considering a loan modification, however, under some programs and with certain lenders, you do not have to be late on your mortgage, you merely need to demonstrate that you are experiencing enough financial hardship that warrants a loan modification.

What if I have lost my job and am currently unemployed?

In some cases you may still qualify for assistance. It is important to speak with your lender, a HUD counselor, or legal representation regarding your qualification and the possibility of getting a mortgage loan modification prior to beginning the loan modification process. In some cases, the time may be better spent looking for employment, and then contacting your lender’s loss mitigation department.

What if I have completely let my finances go, and the Sheriff is literally knocking on my door?

Speak with an attorney immediately. You may be able to postpone the foreclosure with an attorney’s help long enough to get a loan modification done. One stall tactic that is often employed is merely to send a qualified written request to your lender demanding a copy of the original note; without a copy of the note, your lender cannot foreclose. Filing for bankruptcy can also delay the foreclosure process, however lenders are catching on and almost immediately combating this with requests for release. The best thing to do is to speak with an attorney.

How long does it take to get a Mortgage Loan Modification?

Typically, mortgage loan modifications take anywhere from 30-90 days to complete. Make sure that during that time, you make an effort to still make your payments, and that you are prepared to document each and every statement that is made to your lender.

How tough is it to get a Loan Modification?

In most cases it is very difficult to wrestle a loan modification from your lender. Often, homeowners will have to wait hours on hold, and be transferred from department to department. Even Congresswoman Maxine Waters could not get anywhere in helping homeowners after over two hours on the phone with Bank of America and Countrywide. It is a painful, arduous ordeal that takes time, and even after a good deal of time is spent on getting the loan modification, if you do not fit your lender’s guidelines exactly, you will not be granted a loan modification.

Who do you recommend for HELP!?

ModificationZoom can connect you with an attorney that will guarantee a loan modification that will put you in a better financial position. Contact us at (866) 760-9099, or complete the quick-qual form on our website. Our attorney’s know loss mitigation, and know the guidelines that will get you a successful mortgage loan modification, and will negotiate the very best terms that they can for you.

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