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Frequently Asked Questions
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What is a Loan Modification?
A loan modification is a renegotiation of your loan with your existing lender to restructure the loan to meet your current financial situation. A loan modification changes the terms of the original loan rather than creating an entirely new loan agreement. A loan modification is the best way for a homeowner that is having trouble making their monthly payment to get relief because it can lower the interest rate of the loan, the amount of the monthly payment that is due, and sometimes it can extend the length of the loan which will lower payments even further.
Are you a Good Candidate for Loan Modification?
There are basically 3 conditions that must be met for you to be a good candidate for loan modification:
1) You must be still employed,
2) You must want to stay in your home and save it from entering foreclosure,
3) You must have had a financial hardship occur in your life making it difficult to keep up with your mortgage payments.
Basically, anyone experiencing a hardship, in distress, or soon to be in distress qualifies. Remember, it is very expensive for a lender to foreclose on your property. It is in the lender's best interest to keep you in your home.
What Happens During a Loan Modification?
If you decide to try a loan modification then we will work with your lender to modify the terms of the original loan so that you will have a lower interest rate and a monthly payment that you can afford without having difficulty paying other bills or meeting other financial obligations.
What is needed from me to get the process started?
You will need to bring all of the paperwork that you have from your original mortgage loan in addition to documents that can verify your current income and financial status in order to start the process.
What is the success rate?
We have an excellent track record of negotiating loan modifications for our clients. The modification is not guaranteed and if our negotiating team does not think they can successfully negotiate your loan your money is refunded. This is why we have a 98% success rate. We will only accept the files that we are certain can be modified successfully.
Is there a money back guarantee if I do not qualify for the Loan Modification?
Our affiliates have the choice if they want to offer a guarantee or not. If the file is accepted then the staff will be working on the file in an attempt to get a successful modification. If, after meeting with our staff, our staff declines to accept the file because they don't believe they can gain a benefit for the client, then the file will be rejected and our fee will be refunded. Of course, we will then provide the client with other options and refer them to an alternative plan of action.
What are the typical results you gain for your clients?
There are no "typical" results in the loan modification process. Each file is different in its own way and we will not achieve the same results for any two files. The agreement negotiated is between the homeowner and the lender. The lender will decide if the loan modification we propose is in their best interest or if they should counter offer. But what you can be assured of is that we are aggressive and will prepare and present the best possible modification proposal possible.
How is a Loan Modification different from “refinancing”?
Refinancing a home loan requires the expenses of closing costs, appraisal fees, origination, documentation and other unnecessary fees. A loan modification basically changes the rate and mortgage payments of your existing loan for a nominal fee.
Do I need an attorney?
No. But in order to obtain a successful loan modification, you have to have a willing lender and be well informed of mortgage terms. Loss mitigation divisions of banks have their hands full with the downward spiraling real estate market and distressed properties. You will have a much better chance of getting the attention of a bank representative if you are represented by one of our attorneys. Most lending institutions won’t even talk to you until you’re two or three months delinquent in payments, at which point your options will be limited.
Does the loan modification negatively affect my credit?
No, once a loan modification is agreed upon, only you failing to make payments from that point on will it negatively affect your credit.
What does the "Summary" show me?
The "Summary" is an overview of important information about applications for which you, or people reporting to you, are responsible.
The "Pipeline Summary" shows you how many applicaitons are in each stage of the sales pipeline.
The "Leads with Oldest Contacts" shows you the ten applications in the "Lead" stage which have gone the longest time without a contact attempt.
The "Applications with Rejected Documents" shows you all applications which have a rejected document on them. This allows you to make sure you are resolving any problems with active documents.
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