Mortgage Loan Modification
MORTGAGE LOAN MODIFICATION FAQ’S
Q: What is a mortgage loan modification?
A: A mortgage loan modification is a negotiation between a lender and a borrower so that the loan terms are restructured without refinancing. The rate and terms of your loan are restructured to fit your current financial solution.
Q: How do you do it?
A: The banks and lenders would rather take less money and keep you in your home making a payment that you can afford, rather than go through the expense of foreclosing on the home, hiring a listing agent, rehabilitating a home, and letting it sit empty on the market for months, only to lose thousands in the process. Within 24 hours after receiving your package, our legal team will contact your lender to notify them that they will be negotiating a mortgage loan modification on your behalf.
Q: Are lenders and banks really willing to negotiate?
A: Definitely. Lenders do not want to foreclose on your home unless they have no other alternative. If you can present them with a realistic professional proposal that makes sense, they are very open and receptive to the loan modification process.
Q: Who qualifies for a mortgage loan modification?
A: Anyone who can prove they are having a tough time. Especially those who are currently a few months behind, those with negative amortizing loans, those with loans that are about to adjust, those who are upside down on their loan and those who would rather keep their home than do a short sale. Basically, the bigger the hardship you are having, the more negotiating power you have with your lender.
Q: Why should I choose a loan modification?
A: If you are having trouble and behind on your payments you have several different options to fix your problem.
* Reinstatement Plan: Where your lender will reinstate the original terms of your loan once you are caught up.
* Repayment Plan: Where your lender will tack on an extra amount onto each payment for a set period of time.
* Loan Modification: Where you negotiate a restructure of your current loan once without refinancing.
* Loan Refinance: Refinancing may be an option if you have the equity and credit required.
* Forbearance Agreement: Where your lender negotiates a repayment plan and may force you to list your home for sale.
* Short Sale: You sell your property for less than you owe but your lender accepts it as payment in full.
* Deed-in-Lieu of Foreclosure: You agree to give your property back to your bank and walk away.
* Bankruptcy: You have to file bankruptcy to protect yourself, but if you miss one payment you will be back in foreclosure.
A loan modification is a good solution if you cannot refinance, are behind on your payment or struggling to make your payments, have experienced a genuine hardship, and you want to stay in your home.
Q: Can I negotiate the loan myself?
A: In short, yes you can. You can contact your lender or your bank and see about going through the process of loan modification. Keep in mind that your bank has their best interest at heart. They neither have the time nor the inclination to hear about what troubles you might be experiencing. This also takes many hours of back and forth information exchanges in order to accomplish. It is not easy to complete on your own and the outcome may not be favorable to you.
Q: How come you have more success?
A: We are trained negotiators that that have been doing loan modifications every month, working with virtually every bank and lender. They have open lines of communication with most lenders, which gives them the ability to negotiate directly with the person who is in charge of making a decision on your loan. We also create a professional legal file on your behalf which includes all of your financial data such as income, assets, expenses, and unexpected intangible expenses. This coupled with a full property analysis makes it easy for the lender to read and understand.
Q: How much does it cost?
A: The cost of loan modification will vary depending on the value of your property, the type of loan, the lender and the number of loans held against your property. Since every loan modification is different, it requires a varied amount of negotiation. After a quick consultation, we can help you determine what the cost of your loan modification will be. Our primary goal is helping homeowners who want to keep their homes.
Q: What do you need from me to get started?
A: We will need some basic information about your current financial situation. This will better allow us to make an evaluation of just how we can help. We will contact you in order to gather some of your paperwork required in order to negotiate a successful loan modification. We will also determine the current value of your property and put together a professional proposal for your lender.
Q: Why should I go with you?
A: We use senior negotiators to negotiate on your behalf. Loss mitigation departments at major banks and lenders give much more credence to modification proposals submitted by professionals. Maybe it is fear of a lawsuit if they do not negotiate in good faith, but banks and lenders are typically more responsive to proposals submitted by mortgage professionals than they would be with the actual homeowner.
Q: Will I have to meet with my lender?
A: No. We take care of all the paperwork and all of the negotiating on your behalf.
Q: How long does the process usually take?
A: Typically, between 60 and 90 days.
Q: Is there any guarantees on the outcome?
A: No. It would be impossible for us to guarantee that some other entity (the lender) will do what we suggest that they do. We can say we have a very high success rate in obtaining a modification for our past clients. Many of our clients have attempted to negotiate with the lender or work out an arrangement. They have come to us after those attempts have failed. Only 4% of the clients who try this succeed.
Q: Can you guarantee me a refund?
A: We don’t grant refunds. The service fee covers our negotiations. Ultimately the decision to offer a plan is solely with the lender. However, we have a 97% success rate with getting our clients a plan. The other 3% we do not get a plan for are the ones who do not send us the documents we need or save the money we advised them would be needed.
Q: How will this affect my credit?
A: Obtaining a mortgage loan modification is the least damaging to your credit when compared with a short sale, foreclosure or bankruptcy. If we are successful in obtaining a modification for you, the loan will, from that point forward, be reported as being paid as agreed. Assuming you make all of your payments on time, you may see your credit begin to get better over time.
