Dec
22
Top Faqs for Home Loan Modifications
Filed Under Real Estate
Chris Fuelling asked:
1. What is a Loan Modification?
A Loan Modification is when the bank allows a change in the terms of your existing mortgage. The purpose of a modification is to ultimately and significantly lower your monthly payments, for either a temporary or permanent period of time.
2. Who qualifies for a loan modification?
Anyone that is having trouble paying their existing loan. In today’s housing conditions banks are willing to work with mortgage holders that are having trouble paying their mortgage. However, high probability characteristics are homeowners currently in an adjustable rate mortgage, have a high interest rate, are upside down on their home, and/or experiencing any kind of hardship.
3. Why will it work for me?
The government has asked for ALL lending banks to help in the foreclosure epidemic and modify mortgages for all troubled homeowners. Certain websites can automatically produce your Bank Approved Loan Modification Package. Going to your lender with a complete modification package that has been reviewed by modification consultants, will make a scary process seem simple.
4. What if my credit is bad?
A Loan Modification is not based on credit. The banks are trying to make a good loan out of a troubled loan.
5. What if I have no equity or I am upside on my home?
It does not matter! Some banks are doing principal reduction, which means the bank will discount the total loan amount to the current value of your home. This is called a principal reduction and is becoming popular for banks.
6. What if my income is too low?
You will need to show the bank, you or all others in your household can afford the new payment proposed by your bank.
7. What should I expect the terms to be on my new loan?
Banks have rapidly changing guidelines for Loan Modifications. A bank will typically modify your loan into a loan you can afford and continue to pay. This may include a lower interest rate, payment reschedule, principal reduction, longer terms or any other function that will make and keep the loan performing.
8. How much can I really save by doing a loan modification?
Hundreds or Thousands a month. Remember, a Loan is typically for 30 years. So the Loan Modification that saves you $500 a month, really equals $150,000 over the life of the loan.
9. Does every bank do loan modifications?
Yes. We are in a housing crisis and banks are willing to work with clients to help save their homes.
10. How does the bail out bill affect my chances of getting a loan modification?
The government is telling banks they need to do their part to fix the housing crisis. The Bail Out Bill will only help your chances of getting a Loan Modification.
11. What should I do to ensure the best loan modification?
Take Advantage of Attorney services that fully process your modification. Read up on submission steps, and negotiation tips.
12. How long does the process take?
With the right documents you will be able to submit a full package ready to go to the bank. All Banks are different and can take 30-90 days for a decision. It all depends how busy their are with current modification requests and how many loss mitigators they have on staff. It is not uncommon for one loss mitigator to have up to 700 files under their management at a time.
13. What is the difference between doing a loan modification myself or hiring an attorney?
A Loan Modification firm will charge you a high fee ($2000-$5000) to submit the docs that you can submit yourself. Banks are willing to help their clients with a Loan Modification with out an Attorney. What is important, is you have the CORRECT, BANK APPROVED documents ready for submission, so the bank can efficiently and more effectively review your case.
14. Are there any other costs involved? Appraisal, credit report, title, closing costs, broker fees, etc…
There are no costs assigned with a Loan Modification. The banks are modifying loans for no charge.
NIGEL
1. What is a Loan Modification?
A Loan Modification is when the bank allows a change in the terms of your existing mortgage. The purpose of a modification is to ultimately and significantly lower your monthly payments, for either a temporary or permanent period of time.
2. Who qualifies for a loan modification?
Anyone that is having trouble paying their existing loan. In today’s housing conditions banks are willing to work with mortgage holders that are having trouble paying their mortgage. However, high probability characteristics are homeowners currently in an adjustable rate mortgage, have a high interest rate, are upside down on their home, and/or experiencing any kind of hardship.
3. Why will it work for me?
The government has asked for ALL lending banks to help in the foreclosure epidemic and modify mortgages for all troubled homeowners. Certain websites can automatically produce your Bank Approved Loan Modification Package. Going to your lender with a complete modification package that has been reviewed by modification consultants, will make a scary process seem simple.
4. What if my credit is bad?
A Loan Modification is not based on credit. The banks are trying to make a good loan out of a troubled loan.
5. What if I have no equity or I am upside on my home?
It does not matter! Some banks are doing principal reduction, which means the bank will discount the total loan amount to the current value of your home. This is called a principal reduction and is becoming popular for banks.
6. What if my income is too low?
You will need to show the bank, you or all others in your household can afford the new payment proposed by your bank.
7. What should I expect the terms to be on my new loan?
Banks have rapidly changing guidelines for Loan Modifications. A bank will typically modify your loan into a loan you can afford and continue to pay. This may include a lower interest rate, payment reschedule, principal reduction, longer terms or any other function that will make and keep the loan performing.
8. How much can I really save by doing a loan modification?
Hundreds or Thousands a month. Remember, a Loan is typically for 30 years. So the Loan Modification that saves you $500 a month, really equals $150,000 over the life of the loan.
9. Does every bank do loan modifications?
Yes. We are in a housing crisis and banks are willing to work with clients to help save their homes.
10. How does the bail out bill affect my chances of getting a loan modification?
The government is telling banks they need to do their part to fix the housing crisis. The Bail Out Bill will only help your chances of getting a Loan Modification.
11. What should I do to ensure the best loan modification?
Take Advantage of Attorney services that fully process your modification. Read up on submission steps, and negotiation tips.
12. How long does the process take?
With the right documents you will be able to submit a full package ready to go to the bank. All Banks are different and can take 30-90 days for a decision. It all depends how busy their are with current modification requests and how many loss mitigators they have on staff. It is not uncommon for one loss mitigator to have up to 700 files under their management at a time.
13. What is the difference between doing a loan modification myself or hiring an attorney?
A Loan Modification firm will charge you a high fee ($2000-$5000) to submit the docs that you can submit yourself. Banks are willing to help their clients with a Loan Modification with out an Attorney. What is important, is you have the CORRECT, BANK APPROVED documents ready for submission, so the bank can efficiently and more effectively review your case.
14. Are there any other costs involved? Appraisal, credit report, title, closing costs, broker fees, etc…
There are no costs assigned with a Loan Modification. The banks are modifying loans for no charge.
NIGEL
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