Loan Modification
You may have been hearing more and more about this and with good reason. As millions of homeowners have become saddled with adjustable rate mortgages and no longer have the ability to refinance into a new loan, there may be only one solution for these stressed borrowers: loan modification. What does it mean? It is when the lender of the note modifies the existing mortgage to make it more reasonable, the interest rate, term, balance, late fee maybe modified by the lender. Until recently this was only done for delinquent borrowers, however with such extraordinary circumstances it will now be used before borrowers reach this stage. This is often the right choice for borrowers looking to avoid foreclosure.
A Fresh Start
Loan Modification helps borrowers change their note and have a chance to start over as accounts are brought to date right away. By modifying your loan you change your interest rate and payments to change to a fixed rate that will be more practical for borrowers. You won’t have to pay new closing costs and fees, but if you refinance you will be responsible for the normal closing costs, taxes and fees.
Lenders Negotiate
When borrowers have financial difficulties and don’t have alternative financing options, lenders are open to negotiate. We will demonstrate to lenders why it is in their interest to work out a new arrangement with you. Lenders will often be willing to reduce the interest rate, monthly payment amounts and / or loan term to allow you to avoid foreclosure.
Do Lenders want to Foreclose on my house?
No! It is very common for lenders to lose money on foreclosures. This is worse if they are forced to claim ownership of a property. In areas hit hardest by foreclosures, lenders lose even more. This is good news for you since lenders and their investors do not want to lose on your loan.
But unfortunately you are often just a number in their spreadsheet. While you can negotiate on your own behalf often times you may hear that there is nothing you can do to modify your loan, however this isn’t always true. By using our expertise we can often help turn no into yes
If you would like to see if we can help then click here to apply now.
Paperwork Needed
Here is a list of paperwork you will need for your loan modification.
- Hardship letter
- Authorization to release information (one for each lender if more than one)
- Most recent mortgage statement
- Last 2 Months Banks Statements
- Borrower Expenses Breakdown – list of all expenses from utility to phone to monthly food budget, all necessary spending
- W2’s and all tax returns for last two (2) years
- Last 2 paystubs and or financial benefit letter (includes social security, child support, pension, etc).
How it works
If you think loan modification is difficult and stressful, you are half-right. It can be if you’re not a professional. But we are professional loan modifiers, and with our knowledge and negotiating, we help negotiate with your lender to achieve an affordable new monthly payment. You don’t have to worry about what to say, who to call, how to negotiate, we take care of all of that for you. We have successfully negotiated many difficult scenarios, so we know how to negotiate yours!
Getting Started
First complete the short application on our site (click here). Then one of our representatives will call you with a no-obligation consultation. If we determine you are a good candidate for loan modification, you may then be asked to complete a more detailed application.
Hardship Letter and Documentation
You will need to provide a hardship letter, financial documentation for us to begin the loan modification with the bank. Our staff will provide a hardship letter tutorial for you to write this letter which explains your financial situation and why you need the modification. You will often also be required to provide your last two months bank statements, proof of salary, federal tax returns.
Our Turn
After we have all the paperwork arranged, we will then begin negotiating with your lender, to reach a satisfactory modification. We can often do this in less than 60 days. While we are negotiating, you do not have to worry about dealing with the banks, you can relax and let us do the work for you.
Click here for your no-obligation consultation.