What is Loan Modification?
Loan Modification- This term has been getting a lot of attention lately and rightfully so. With millions of homeowners stuck in toxic adjustable rate mortgages and no way to refinance out of them, loan modifications may be the only way to assist struggling borrowers. This term is used when your lender modifies your current mortgage (same loan you have, only changes are made to the note) in order to work with you and make your mortgage more affordable. A modification to your rate, balance of loan, delinquent fees owed, term of loan etc. can be made by the lender. In the past this was only used when a borrower was delinquent but now we will see it being used before somone is delinquent. This will be the hottest term and the best way to help people to avoid foreclosure.
-
A loan Modification will change the existing mortage note and give the client a fresh new start managing their home. Accounts will be brought up to date immediately.
-
With a loan "modification" you take the mortgage you now have and change the interest rate and payment requirements in order to achieve a fixed rate. A change in rates and payment does not result in the need for a new closing, legal fees, survey, appraisal, or taxes. In contrast, if you "refinance" a loan you'll be required to have a closing and forced to pay a variety of fees and taxes.
-
Lenders are willing to negotiate when borrowers are facing financial difficulties and can't obtain other financing alternatives. Federal Loan Modification shows the lender why it would be in the lender's best interest to agree to a "workout arrangement". In turn, the lender will reduce the loan interest rate, reduce monthly payment amounts or change other loan terms to allow for an affordable loan to allow the homeowners to avoid foreclosure.
SaveMyLoan.org brings the two parties of problem loans together to mutually agree to a workout that creates new and better loan terms which are affordable and realistic. The hope is that the new loan will enable the borrower to meet their obligations. With SaveMyLoan.org detailed, personalized financial analysis, this hope becomes a reality. Our clients accept the loan that is affordable to them based upon their current financial situation without the worry of another foreclosure.
How long does it take to compelte the case once we fill out paperwork?
Anywhere from 10 days to several months. This depends on the stage of delinquency you are in and your financial position. Typically it takes 30 - 90 days to obtain a resolution.
Do I need to be behind in my mortgage to qualify for a note/loan modification?
No, you simply need to demonstrate the fact that the loan has become or will become unaffordable.
No, each mortgage lender has their own specific guidelines. Our Pre-Approval Service will get you pass the initial qualification tests that most lenders use to disqualify over 90% of all applicants.
Can you gurantee that I will be approved for a Loan Modifciation after completing your preliminary work with the Pre-Approval Application?
No, each mortgage lender has their own specific guidelines. Our Pre-Approval Service will get you pass the initial qualification tests that most lenders use to disqualify over 90% of all applicants.
Is it too late to save my home if I am currently in foreclosure?
Unless the bank has already taken the house back, it is not too late. We may still be able to help you keep your home.
Can I negotiate with the lender myself?
Yes, but should you? It really depends on the results you want to achieve. We have a loan mitigation team whose only job is to work with lenders and modify loans, every day, five days a week. By letting us do what we do best you will get better results with less stress and effort. We know how to deal with lenders and have in-depth knowledge about how these institutions work. We can potentially save you thousands of dollars and free you from the time commitment required to achieve an effective resolution. SaveMyLoan.org delivers the critical information and professional representation that you need to get the best possible "workout agreement" with your lender.
What if I can no longer afford my home? Can SaveMyLoan.org still help me?
Yes. If you are certain that you cannot afford your home any longer and wish to sell, SaveMyLoan.org can help you to secure a short sale payoff or a deed-in lieu of foreclosure agreement with your lender. Often times these agreements can be arranged at low or no cost to you.
|
