What is a

Loan Modification?

An alternative for struggling Homeowners.

There are so many Homeowners nationwide that are worried because their adjustable rate mortgage (ARM) is going to reset and they can not afford the new payment.   Others may owe more than the house is worth.   Or, they are unable to get a new loan because their credit is bad or the guidelines are too stringent.     

A Loan Modification is a method to help Homeowners who want to stay in their homes and avoid Foreclosure.  The goal is to try and help Homeowners avoid further hardship.  The process of a Loan Modification must be started promptly and can not be done for Homeowners who are currently in NOD (Notice Of Default).  Homeowners in NOD may need to consider a Short Sale. 

Time is not on a Homeowner's side.  So, if a Homeowner is having problems or struggling to keep up with rising mortgage payments, immediate action is necessary to keep their home.

Are Lenders Willing to Negotiate?

Yes.

Banks and Lenders have been mandated by President Obama to do everything they can to work out a payment plan with their borrowers.  Banks and Lenders would rather take less money and keep you in your home by making payments that you can afford, rather than go through the expense of Foreclosure.

If a realistic and professional proposal is presented to the Lender, they are open and receptive to the Loan Modification process.  The bigger the hardship that the Homeowner is having, the more negotiating power we have with the Lender.

Bottom line, the Lender would rather keep you in your home and create a solution that is affordable to you, rather than go through the vast time and expense of Foreclosure.

A Loan Modification Can:

•  Reduce the Interest Rate

•  Reduce Principal (Loan Balance)

•  Convert to a longer Fixed Term

•  Eliminate any unpaid balance

Bottom Line . . . 

There is help.  It is possible to handle a Loan Modification on your own.  There are scam companies that charge enormous fees and empty promises.  See the federal government's link for further information.   

http://makinghomeaffordable.gov/beware.html 

However, if a Homeowner prefers to use an attorney to handle the Loan Modification process, please contact us to give you an excellent source.

If a Loan Modification is not a viable option for the Homeowner, the next best alternative is to short sale the property.  Go to our Short Sale link for further details.