HOME               THE BOOK        EXPERT HELP           FAQ'S            CONTACT US

FREQUENTLY ASKED QUESTIONS

1. WHAT IS A LOAN MODIFICATION?

Loan modifications restructure the existing loan without refinancing the lien by which the property is secured.  The lender works with the borrower to redefine the terms of the loan.  The result is that it allows the borrower to repay his loan based on a smaller monthly payment that will work for him.  The part of the loan that is restructured may include the interest rate, the length of the loan and certainly the monthly payment.
  

2. HOW DOES A LOAN MODIFICATION HAPPEN?

During the process, the terms of the mortgage are renegotiated downward to fit the borrower’s budget, thus making the payments bearable.

3. WHO WOULD BENEFIT MOST FROM A LOAN MODIFICATION?

Homeowners with a hardship or homeowners who were caught in the subprime issues and signed up for loans that are adjustable. When the adjustment went up too high for them to afford their mortgage, these borrowers went into foreclosure without a Loan Modification.

4. WON'T THE REAL ESTATE MARKET ADJUST ITSELF AND FIX THE PROBLEMS?

ARM or Interest-Only Loans reset periodically and they are usually going up. Even if the housing market stabilizes the loan is still in danger. Don’t wait for the next upward adjustment to put more strain on your budget.

5. CAN I INCLUDE MY OTHER LOANS IN THE MODIFICATION?

This is not a consolidation loan, which seeks to lump all of the borrower’s debt under one large loan which will result in an overall lower payment. This is a renegotiation of the original terms of a real estate loan and only the property it secures.

6. HOW LONG WILL IT TAKE?

This is an approximate 30 to 90 day process although it can taken even longer if the loan is FHA guaranteed. Fortunately, while the process goes on, the lender will usually freeze foreclosure proceedings.

7. WOULD I BE BETTER OFF JUST LETTING THE BANK FORECLOSE?

No. You still need to live somewhere and you love your home. If you could save it with a lower payment, you can live there in most cases cheaper than if you moved to a comparable rental property.

You would ruin your credit and possibly be subject to still owing money on the balance which may be more than the home is currently worth

8. HOW COMPLICATED IS THIS PROCESS?

You can do this yourself with the proper guidance. You will pull all of your paperwork together, determine your budget and what you can afford, plus examine the hardships that brought you to the brink of foreclosure. You will learn what the lender’s guidelines are for Loan Modification and then you will make the contact, fill out the paperwork, write your hardship letter and present it with the clear and justified hope that you will be granted an affordable Loan Modification.

Even if you use a professional firm, you will still have to fill out forms and gather all of the documents by yourself. With the information and guidance in this book, you can follow through and DO IT YOURSELF to save the fee of a professional Loan Modification firm.

    
 We Accept