FAQ
What is a loan modification?
As of December 2008, loan modification is the quickest, fairest, and most mutually effective way for homeowners and banks to prevent foreclosure. Banks use loan modification to reduce interest rates, loan balance and/or extend the term. By reducing the monthly payment, homeowners keep their house and resume paying a reduced monthly payment and the bank avoids taking back a house they cannot afford. In 2010, we expect 70 million homeowners to use loan modification to save their homes. Banks will make loan modification the number one banking strategy to keep them solvent.
Why would my bank agree to a loan modification?
The bank loses less money lowering your interest rate and mortgage balance than taking your house back in foreclosure. Let’s do the math on a $200,000 mortgage. The bank has two options.
Option #1 - Getting 40¢ on the dollar reselling your house – $80,000 net to the bank - $120,000 loss to the bank. Plus they are required to escrow a foreclosure penalty of six times the loan amount totaling $1,200,000. That money goes into a vault and collects dust – not interest - losing interest and profits every day until that foreclosed home is sold.
Option #2 - Knocking 40% off your interest and principle.
You do not need a calculator to figure out the best option.
What kind of loan can be modified using a loan modification?
Almost any loan can be modified. However, we will not accept you as a client if we feel your loan cannot be modified. Our knowledgeable staff is highly trained to deal with all types of loans and lenders. We can help you prevent foreclosure on any type of loan. Our consultation is always free as we take our time in understanding our potential clients needs. Contact us today to find out how we can help you with your particular loan.
I have spoken to my bank and they refused to help. Is there still a solution?
Yes. Many homeowners have faced this exact situation. You would not be the first person to get nowhere with their lender only to be approved for a 35% loan modification. It all comes down to the team you have behind you.
I am current on my mortgage, can I still qualify?
Yes. Due to extenuating factors affecting you financially, you may be qualified. Banks do not require your being behind in payments. If we can’t reduce your terms significantly, we’ll give you a full refund.
How do your fees work?
The Principles of our company believe that if you do not get a loan modification – no fee should be charged. It’s just that simple.
What is Predatory Lending?
PREDATORY LENDING is a term that refers to various illegal and immoral activities many lenders engage in. These practices are a major cause of foreclosures, poor credit and unmanageable financial burdens. Your loan may have been unlawful, and you may be entitled to substantial damages whether or not you are currently in foreclosure. The penalties for failure to comply with the TRUTH IN LENDING ACT can be substantial. IF you are in foreclosure, the Truth in Lending Act can stop the foreclosure process immediately. If you are a victim, then don't be preyed upon twice and let them take your home. Let us help you fight for your rights. Predatory lending is a hot topic in the news and there is good reason why. Lenders and brokers have spent the last few years taking advantage of homeowners by providing teaser rates and pay option loans. The lenders and brokers knew these loans were too good to be true and the borrowers were not told the truth. Our real estate Attorneys and trained personnel are skilled at spotting predatory practices in your paperwork and use this when negotiating on your behalf.
Why choose ModificationsLoan.com?
- Personalized Service
At ModificationsLoan.com, we make it priority number one to earn your trust – particularly when something as important as your home is at stake. We want you to feel totally comfortable about the process, understand exactly how we can help you, and be confident that you are working with the very best people.
Expert Representation - Expert Representation
As opposed to relying on an inexperienced realtor or mortgage broker, we match you with a experienced professional who has exactly the right knowledge and expertise to best represent you. This distinction is critical in that it can make all the difference between success and failure. With us involved, you have an important ally in your corner to get you the mortgage help you need – quickly, efficiently, and confidently.
- Caseload Limits
Most loan modification companies are focused on gaining as many cases as they can. This works for their best interest, but unfortunately, not for yours. The loan modification process is extremely time sensitive and backlogs, delays, and slow response can greatly jeopardize the outcome. That’s why ModificationsLoan.com maintains a small caseload to team ratio to ensure that all communications and initiatives are clear, concise, and timely when it really counts.
How can I afford to pay a loan modification professional for his / her services if I am struggling to make my house payment?
At ModificationsLoan.com, we understand that coming up with the money for our service is not easy for many of our clients. We also understand the significant long term value of a successful loan modification. Several clients have used the following plan to make payment as easy as possible.
Use a credit card or credit line to make the payment and then pay it off with the savings throughout the process of the modification. Here’s how it works. If you are currently making your mortgage payment on the 1st of the month, delay payment until the 26th and continue paying near the end of the month until the modification is complete. This way you effectively skip a payment and, at the same time, become more of a priority to the bank. Banks give lower priority to borrowers that are current in their payments, even if they are truly struggling or going into further debt to make the payment.
As long as you make payment prior to the 30th of the month there is no impact to your credit score. You will be assessed a late fee that we ask the bank to waive as part of the modification. Worst case scenario, they will add the late fee to the principle balance of the loan. Additionally, we ask the bank to delay the first payment under the new modified agreement until the first of the following month, effectively skipping a portion or all of another month payment. The combination of the savings from the delayed payments and the new reduced mortgage payment amount will allow you to quickly pay back the credit used to pay for our service. Typically, by following this plan, our service pays for itself within the first few months. When you add up the thousands in savings over the life of the loan, and consider our 100% money back guarantee, your investment in ModificationsLoan.com is truly a “no-brainer.”
Are you saying that I should not make my mortgage payment?
No. Missing mortgage payments will negatively impact your credit score and your ability to obtain financing in the future. If you are already behind on your payments it DOES NOT HURT our ability to negotiate a successful loan modification settlement. Professionally, we do not recommend that clients intentionally damage their credit score to obtain a loan modification. However, the farther you are behind in payments the stronger your case for modification with your lending institution.
