What is a Loan Modification?
Loan Modification refers to the restructuring of an existing loan agreement, without actually refinancing. The goal is long term relief for the borrower from difficult or untenable terms. Modification of a loan may involve changes to the terms governing the interest rate, the amount of the monthly payment, or the timeline for repayment.
Are you a good candidate for Loan Modification?
Any homeowner with an adjustable rate mortgage that is due to increase is a good candidate for loan modification. Anyone who is facing foreclosure should investigate loan modification first. Loan modification programs will likely end in the near future so do not wait to contact us.
Why not just ask my lender for a Loan Modification myself?
You can always attempt to secure a loan modification for yourself. We recommend the assistance of the team at Loan Modification Experts. The application and various programs are confusing and complicated. You should consider the support of the experts in loan modification.
What happens during a Loan Modification?
The process of loan modification will involve the renegotiation of the loan terms, in the favor of the borrower. Interest rates might be reduced, monthly budget analyzed and reduced. The goal is to create a new loan arrangement that is more feasible for the homeowner. Lenders and borrowers look to avoid foreclosure.
Can I get a Principal Reduction?
We will always look to secure a principal reduction. It is rare that a loan principle will be reduced, that an existing loan amount will be discounted. It is unlikely that you will receive a Principal Reduction.
What about refinancing or debt consolidation programs?
Loan modification is preferable to these other strategies as it actually reduces your burden with favorable loan terms. If you qualify for loan modification you should happily accept the amended terms. Refinancing your original loan is also an option. You will have to qualify for the financing and pay fees. Debt consolidation does not apply to mortgage loans.
What are the next steps?
Use the contact form to contact us with some basic information. Collect financial documents such as tax returns, pay stubs, w-2s, and a hardship letter. This information will provide your loan modification expert with the details to determine your eligibility for loan modification.
How long before I can get a Loan Modification?
The typical timeframe is 60 to 120 days. Lenders will usually halt foreclosure proceedings in order to restructure to a more favorable arrangement.
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