Frequently Asked Questions
What is a loan modification?
Starting in December 2008, loan modification became the quickest and most practical way for both homeowners and banks to prevent the perils of foreclosure. The banks use loan modification to help reduce on interest rates, loan balance and also to help extend the term of the loan. When homeowners can reduce their monthly payment, often they can keep their home and find it easier to make a smaller payment each month and then the bank doesn’t need to take back a home the homeowner cannot afford. So everyone wins in this arrangement. During 2010 it was expected that approximately 70 million homeowners would use loan modification to help save their homes. It seems that banks would make loan modification the top banking choice to help keep them “in the black” and serving homeowners.
Why would a bank agree to a homeowner’s loan modification?
When your bank says, “Yes” to loan modification, they will lose far less money by lowering your interest rate and mortgage balance than if they were to choose to take your home back in a foreclosure. Say for example your home has a $200,000 mortgage. Your bank thus has two choices:
One – To get 40 cents on every dollar by reselling your home! That would be just $80,000 net back to the bank and they would lose a hefty $120,000 in this arrangement. Additionally they are required to escrow a foreclosure penalty of six times the entire loan amount which would total up to $1,200,000. Now this money will go into a vault and actually just collect dust, not helpful and useful interest and then the foreclosed home will be sold.
Two – Taking 40% off of your interest and principle using loan modification. Which now seems like the best choice? We know which one we would choose – and probably you too.
We know you aren’t scratching your heads in confusion, wondering which one to pick. We know this isn’t a hard decision to think about.
So, what type of loan can be modified with a loan modification?
Just about any type of loan can be modified. But we simply won’t accept anyone as a client if we feel that your loan can’t be modified. Our helpful and knowledgeable staff is highly skilled to manage and coordinate every type of loan and lender you can imagine. We can assist you in preventing foreclosure on any type of loan – any type! A consultation is always complimentary; let us give you our time so we can understand your specific needs to see how we can help you the best. Contact our office today to see how we can help you with your loan and if loan modification is the ideal choice for you, just as it has been for hundreds of thousands of homeowners.
But I spoke to my bank and they flat out refused to help. Could there still be a solution for me?
Yes! You aren’t the only homeowner that has faced this type of situation – you are certainly not alone. And you wouldn’t be the first person to face a brick wall with their lender, only to wind up getting approved for a 35% loan modification. So take the time to get the information, get all of the facts. It really all comes down to the talent and skills of the team you have helping you get the loan modification.
We are current on our mortgage. Can we still qualify for loan modification?
Yes you can. Depending on your financial situation, you may qualify. Banks don’t require you being behind in your payments. And if we can’t reduce your terms by a significant amount, you’ll receive a full – 100% - refund.
How exactly do your fees work?
Rest assured that you ONLY pay for the work that has been accomplished for your loan modification and situation. That’s it.
Explain Predatory Lending?
Predatory Lending is important to understand. It refers to a variety of both illegal and immoral activities that some lenders participate in. Many of these practices have led to some of the challenges that face families today that own homes – including foreclosure, poor credit and crushing, unmanageable financial burdens. While your loan may not have been technically unlawful, you may be entitled to damages whether or not you are in foreclosure presently. There are penalties for a failure to comply with the Truth in Lending Act that lenders need to abide by.
If you are facing or in foreclosure, the Truth in Lending Act can actually help to prevent the foreclosure process! So if you are a victim of this experience, don’t let yourself go through this a second time or let them take your family’s home. We can help you fight for your rights – that you so deserve. Predatory lending is important to understand, to fight back and to know that it happens. Lenders and brokers have in the past few years taken advantage of homeowners, providing “teaser” rates or pay option loans. While they have known these offers are just too good to be true, the borrowers haven’t understood or weren’t told the exact truth. Let our practiced and skilled real estate attorneys and staff members help notice any predatory activity in your experiences, we can use this to your benefit when we work on your case.
Why should I choose to work with you?
- Receive Caring, Personalized Service Every Time
At ModificationsLoan.com, our relationship with you is priority #1. We understand you may have had an experience that has made you feel you can’t trust others – and we make it a top priority to let you feel you can trust us, that we will help you. We understand that your home is not only an asset but an important part of your daily lives. ModificationsLoan.com will work hard to help you feel comfortable at every step of the process. You can trust you are working with the top people to help you get a loan modification.
- Highly Skilled Professionals and Experts
Your previous experience may have been in speaking with a realtor or mortgage banker who had less experience than they needed to manage your transactions. At ModificationsLoan.com, you’ll be connected with highly skilled professionals and experts who will represent you every step of the way. You can trust and feel confident that this difference is felt not only by you but everyone connected with your loan modification. We’ve found success where others have been met with brick walls or “No’s.”
- Limits on Caseloads
At ModificationsLoan.com, we limit the number of caseloads our staff can manage. Every case is time sensitive and a time delay can cause a catastrophe at any step of the process for the homeowner. Our teams manage smaller caseloads than many other firms so you’ll receive personal attention. While some companies are larger, their clients may receive less attention or get less response to their inquires.
If I’m having a tough time making my home payment, how can I afford to pay a loan modification professional?
At ModificationsLoan.com, we understand that paying for services can be a challenge for some clients. Keep in mind the long term value of a successful loan modification for your family when considering loan modification professional services. Here’s what several of our clients have done to pay for services:
Credit card/credit line. Make the payments this way and then pay them off using your savings from the process of loan modification. It’s not very difficult, here’s how it works: if you now make your mortgage payment on the 1st of the month, delay the payment until the 26th and continue paying near the end of the month until the modification has been completed. In this way you wind up skipping a payment and in many ways, actually become more of a priority to the bank. Banks actually give a lower priority to borrowers that are current with their payments even if they struggle or go deep into debt to make that payment each month.
By making your payment before the 30th of the month, there is no impact to your credit score. Keep in mind that you will be assessed a late fee but we will ask the bank to waive it as part of the loan modification process. In a worst case scenario, they will add the late fee payment to the principle balance of the loan. We also ask the bank to delay the first payment under the new modified agreement until the first of the next month. This way you skip a portion or an entire month’s payment. This great combination of savings from delayed payments and a reduced mortgage payment will mean you can easily pay back the credit you’ve used to pay for loan modification services. By following this plan, our service quickly pays for itself in just a few months. Adding in the thousands in savings over the lifetime of the loan, consider also our 100% money back guarantee, choosing ModificationsLoan.com is an ideal choice.
So are you saying that I should not make my mortgage payments? I’m confused.
No, you do want to pay your mortgage! Missing mortgage payments will negatively affect your credit score and will affect your financial future, the ability to get a loan in the future for example. Keep in mind that if you are already behind on your mortgage payments, it doesn’t hurt our ability to help negotiate your successful loan modification. But we would never recommend that our clients go out and not pay their mortgage on purpose, as this can affect your credit rating also to get the loan modification. Keep in mind that the farther behind you are with your payments, this can also be a strong case for loan modification with your bank or lending company.
