| A Home Loan Modification is an offer to make a | | | | to collect for their investors. You are not the |
| permanent change in the borrowers mortgage | | | | client to them. The investors are. |
| terms which is normally involves a rate | | | | Remember the lender is mainly trying to collect |
| modification. To find out if you qualify or how to | | | | delinquent payments, not give you a break. The |
| get help on a mortgage loan modification there | | | | loan loss mitigation area is not in the business of |
| are plenty of attorneys and loan modification | | | | offering each person that requests 3.00% fixed |
| companies to help consumers. | | | | rate for 5 or 10 years or reduce the principal loan |
| To determine if you are eligible the legal | | | | balance down by $100,000. Although, the odds |
| representative will request certain documentation | | | | increase when using qualified loan modification |
| and ask you income and expense questions. One | | | | companies with an attorney. If they are done at |
| will need to be in a hardship situation such as job | | | | all, it is based on the individual file and must be |
| loss, dramatic reduction in income, divorce, death, | | | | properly negotiated to achieve positive results. |
| etc. many individuals opt to try and do the home | | | | When one uses the loan modification services |
| loan modification themselves without the | | | | from a company that has an attorney on staff, |
| assistance of an attorney who knows the laws, | | | | they are usually going to have a better outcome. |
| knows how to stop a foreclosure, knows what | | | | A loan modification is a long term solution, |
| errors to look for in the closing documents, and | | | | modified forbearance agreements are designed |
| what is needed to qualify. | | | | by the lenders to just get paid. Of coarse they |
| There are other companies out there who claim | | | | will negotiate with you to get caught up, requiring |
| they can modify the terms of your loan and then | | | | a portion of the late payments to be paid up |
| actually can't help the homeowner and find | | | | front to reinstate the loan or to stop foreclosure. |
| themselves even more underwater since they | | | | Be Careful of Loan Modification Company without |
| had to pay that particular company a processing | | | | an Attorney |
| fee. A loan modification, also called debt | | | | There are many loan modification companies also |
| restructuring, with an attorney can significantly | | | | known as loss mitigation companies marketing |
| make headway for clients at a faster rate and | | | | their success stories, refunds, and principal |
| faster responses. I have personally witnessed | | | | reductions. If they guarantee a principal reduction, |
| people trying to save a buck here and there and | | | | then you need to do business elsewhere because |
| do it themselves. Yet, they discover six months | | | | that simply cannot be guaranteed period. It may |
| later they are still no closer to a modification | | | | be a strategy within the company's marketing but |
| agreement and are still chasing down different | | | | there is no guarantee! |
| office staff in the lenders office. | | | | If they say refunds, make sure they disclose the |
| Some homeowners that are struggling to make | | | | refund amount if their processing department |
| their mortgage payments or close to foreclosure | | | | deems it not to be a favorable file for a loan |
| may choose to employ a real estate attorney or | | | | modification. |
| a loan modification company rather than doing it | | | | I will agree that not every company out there is |
| ion their own due to the fact that an attorney | | | | untruthful however most of the salesman are |
| has a significantly more positive impact and | | | | working just to make a sales commission. You |
| results, when ordinary individuals have failed. The | | | | should work a loan modification company that has |
| lender has to respond to attorney in a timely | | | | attorneys, paralegals and experienced bank |
| fashion otherwise there are penalties, possible loan | | | | negotiators to personally handle files that come in. |
| rescission, and expensive legal fees. They don't | | | | What is a Typical Loan Modification? |
| want this in addition to a foreclosed property. | | | | A standard loan modification puts the borrower |
| Once an individual fails to negotiate with the loan | | | | into a comfortable and long term ability to make |
| servicing company, it is much harder to use an | | | | their new payment. Modifying the mortgage |
| attorney later on to stop a foreclosure due to | | | | terms of the current loan can involve a very low |
| time constraints and the lender having your | | | | rate that is fixed for a period of 3 to 7 years |
| current information. Getting to the right person or | | | | then systematically rise to the current market |
| persons within the mortgage lenders' loss | | | | fixed rates. In certain situations, the lender may |
| mitigation department can be difficult to impossible | | | | also choose to decrease the principal loan balance |
| at times. Some have stories that their documents | | | | or wipe out part or all of the second lien if it is |
| simply disappeared like the loss mitigation has a | | | | introduce properly with documentation. In |
| magical genie on staff. Mail and faxes may | | | | summary, a loan modification should be favorable |
| suddenly become misplaced, agreements moved | | | | solution to both the homeowner and the investor. |
| to different departments, etc. Their objective is | | | | |