Avoid Foreclosure
Loan Modification – The best way to avoid foreclosure
What is a loan modification program?
A loan modification program is a change in the terms of a homeowner’s mortgage. These changes will allow the loan to be reinstated and make the monthly payment more affordable.
What types of changes will take place with my mortgage?
The typical changes in a loan modification program include permanent lower monthly payment, convert ARM (adjustable rate mortgage) into a fixed rate, re-age your loan to be brought current, an remove late/delinquent charges.
How do I know if a loan modification is for me?
If you are struggling to make your payments, currently behind, or feel like you may be falling behind in the near future. Below are some things to help you identify if a loan modification is for you.
Is your home owner-occupied? Lenders are far more willing to help those who truly need it. Lenders do not like to do a loan modification for 2nd homes (investment, vacation, rental, etc). If they do decide to a loan modification on a 2nd home, you must have a strong, documented hardship e.g. a renter not paying is not going to work.
Do you have negative equity in your home? Any homeowner who currently owes more than their home is worth is a normally a great candidate. The reason being is the homeowner cannot refinance for a more favorable interest rate or loan term. The homeowner also cannot sell the home without the lender taking a substantial loss (short sale).
Are you suffering from a financial hardship? Any homeowner who cannot qualify for a loan and has recently experienced one of the following events : Reduction in pay, Loss of job, Death of Co‐Borrower on loan, Illness, Medical Bills, Divorce, etc. might be considered eligible under financial hardship.
What are the costs involved?
The cost will vary from company to company. One of the most important things to look out for is to make sure they are attorney-backed. Any reputable company will review your file before charging you. They do this to maximize results and to reduce your risk of additional financial hardship.
