Loan Modification Company Blog

Stop Foreclosure with Loan Modification

loanmod — Thu, 19 Feb 2009 07:14:31 +0000

Stop Foreclosure with Loan Modification

If you’re unable to afford a refinance or an alternative repayment plan in order to pay off your mortgage dues and avoid foreclosure, you may be able to stop foreclosure with a Loan Modification. Stopping foreclosure with a mortgage loan modification involves extending the loan period and adding the missed payments to the loan balance. This may reduce your monthly payment and help you pay off the dues in order to get current on the loan. The monthly payments can also be lowered by rate reduction.

Do you qualify for a mortgage loan modification?

You may be eligible if:

The lender hasn’t declared a foreclosure yet and even if he has done so, he should have removed the loan from the foreclosure status.
You’re delinquent on the loan - but lender guidelines vary!
The loan has been originated for more than 12 months.
You can afford modified rate/terms.
The property is in good physical condition

How can I get accepted for a mortgage loan modification?

We help you prepare 5 tips to help you get approved for modification.

A Monthly Expense Worksheet including a detailed list of your expenses (food, gas, credit cards and other financial obligations) in a spreadsheet and calculate the average costs on each item for the past 3 months or so.
A Hardship Letter of not more than 2 pages wherein you’ll put down why you aren’t able to carry on with the usual payments and why need a loan modification. Know how to write Hardship letter.
You need to make sure that you have 1-2 hours at hand every day from your daily routine so that you can meet the the representatives at the lender’s Loss Mitigation Department and discuss on your loan modification.
Gather your paystubs and bank statements for past 2 months as the lender would like to check them along with your Hardship letter and Financial Statement. The lender may take 15-30 days or even 60 days to review your loan status and Financial Statement depending upon how much you’re behind on payments and whether your loan is very close to foreclosure.
If you’re denied for mortgage modification, don’t lose hope. Contact a loss mitigation specialist who’ll be able to negotiate on your behalf for getting the modification approved.

What happens when your loan is modified?

You’ll be able to get current on the loan.
If you have an ARM, modification may help you convert it into a fixed rate fully amortizing loan.
The lender may reduce the interest rate below the market rate.
The entire PITI (principal, interest, escrow items such as tax and insurance payments etc) may or may not be added to the current loan balance.
Any administrative fees resulting from cancellation of foreclosure may be added to the loan balance.
The modified principal balance can exceed 100% loan-to-value or the original principal balance.

Loan modification may be offered alone or as a part of forbearance . However, if you’re delinquent even after modification, the lender will consider it as a new default and service the loan accordingly.

Always use a law firm backed loan modification company to help with your mortgage negotiation.

Government Loan Modification

loanmod — Thu, 19 Feb 2009 06:12:54 +0000

Thanks to President Barack Obama, we are in for wider acceptance and expanded guidelines for loan modifications. The new government stimulus loan modification program outlines mortgage servicers and holders will obtain one-thousand $1,000 dollars to help modify loans for American homeowners. American homeowners can look forward to increased modifications, banks offering lower modification rates, and participation in creating the lowest mortgage rates ever seen. Our law a firm backed government loan modification program, LoanModUS.com is law firm backed and compliant with all federal regulation. LoanModUS.com is Attorney backed, and provides government supported loan modification mortgage help.

Drafting Powerful Hardship Letters

loanmod — Thu, 04 Dec 2008 00:07:05 +0000

When negotiating with your lender to reduce your monthly payment, mortgage rate, or principal balance, the most important leveraging tool at your disposal is the mortgage hardship letter. Without an effective hardship letter, your chances of loan modification success are reduced immeasurably.

There are three very important things to keep in mind when preparing to write your hardship letter:

1.Emotionally Effective
Remember, this letter is being read by a person just like you and me who may be facing similar economic hardship. That said, make sure your letter evokes emotion. If you have an Adjustable Rate Mortgage loan that ‘popped’ up on you and you are struggling to put food on the table for your children and recently out of work husband, stress that in your letter. Do your best to make the letter as emotionally effective as possible.

2.Honesty is the Best Policy
Don’t make up a dire strait scenario that simply does not exist. The lender will be checking your recent financial records to see if your hardship letter matches up with the nuts and bolts of your financial situation. Dishonesty will not be rewarded with a successful loan modification and your hardship letter should reflect accurately your current situation.

3.Put on the Lender’s Shoes

A. If you were lending to an individual in your shoes, would you offer another chance to keep their home? Ask yourself: Will they be able to meet the new loan terms? Is their financial situation permanent, or only temporary? Do they have a serious desire to remain in their home?

B. You must also think like a lender along other critical lines. Would you say that an individual who makes payments on a boat, a 4-wheeler, and his ‘toy hauler’ is truly facing economic hardship? Along those same lines, do you think that a family who is sending their son or daughter to college or private school is truly facing economic hardship? (The answer to both of these questions are, NO!) The mortgage lender does not believe that they should foot the bill for your child’s education or your hobbies.

Ok, now that we have a better idea of how to write a powerful hardship letter, it is also important to know that a loan modification company that negotiates on your behalf will help you write an effective, heart felt, honest, ‘lender minded’ letter. A good loan modification company will sit down with you and help you write your economic hardship letter FREE OF CHARGE.

You should never have to pay an attorney or independent individual to write your hardship letter. A good Loan Modifications company understands the financial needs of today’s American homeowner and will have no problem formulating a loan modification hardship letter with you.

For loan modification hardship letter sample, visit: Sample Hardship Letters.

If you or someone you know will benefit from a mortgage loan modification, visit www.LoanModUS.com for legal help.

Regain Ownership with a Loan Modification Agreement

loanmod — Mon, 01 Dec 2008 22:09:37 +0000

What is a loan modification agreement?
Simply put, a loan modification agreement is one of the best options to foreclosure. A loan modification agreement is a legal instrument negotiated with your lender to prevent foreclosure and work out an affordable long-term solution. With a loan modification agreement, you are able to stay in your home and live under affordable terms. (Before getting started, always require these conditions when dealing with a loan modification company: 1. Attorney Backed 2. 100% Money Back Guarantee 3. Some Form of Online Tracking.)

1.)
Begin gathering your financial records.

These include (but are not limited to):

bank accounts records (checking & savings)
most recent tax record
most recent pay stub
receipts of major purchases

Your current financial picture will determine whether your lender will conduct a loan modification agreement. Based on the lenders assessment of your financial picture, your loan interest, principal, or terms of payment may be adjusted to a more affordable level.

Honesty is the best policy! If you are asking for a loan modification agreement because you are our of money due to unemployment, don’t hide any bank accounts, or extra source of income. Lenders may require that large withdrawals be properly explained and documented.

Show your ability to make payments under new mortgage terms. You need to have something to show your lender that you are financially able to pay the mortgage under the new negotiated terms. Items include, being employed, receiving monthly payment, or some cash in the bank. In applying for a loan modification agreement, if properly negotiated, lenders might reduce the amount charged for your deferred payments. This is easily negotiated with the help of a Law Firm backed Loan Modification Company.

2.)
Contact the “decision maker” regarding your request for a loan modification agreement at your lending institution. The unfortunate fact is, in most cases, you will be stopped at the gate and will be forced to speak with either collections officers or receptionists. Talking to them is fruitless, because they are not the true “decision makers” and can not help in the actual loan modification agreement. Simply trying to find the “decision maker” is a major hassle for an ordinary homeowner.

The aid of a loan modification company will vastly improve your odds for success. Lenders are more inclined to negotiate a loan modification agreement with an experienced company or individual that knows the ‘jargon’ and has the legal authority to back it up. The most important advantage of a loan modification company is their legal expertise and leverage by knowing who to speak to and how to present legal information. The loan modification level of of success is greatly enhanced with assistance of a law firm backed loan modification company.

3.)
Keep True to Your End of the Loan Modification Agreement

Once your loan modification agreement is properly negotiated and you have received a “clean slate”, maintain your monthly obligations to pay your mortgage. A loan modification agreement does not simply mean an extension of your stay before foreclosure! You now have a mortgage that you can afford, so take pride in maintaining the American dream of homeownership.

What is Loss Mitigation?

loanmod — Mon, 01 Dec 2008 17:41:54 +0000

Loss mitigation is when an asset isn’t worth what was expected and then deciding how much loss is acceptable. If you have shares of stock or another investment that isn’t worth your original purchase price, then you have to decide how badly you want to keep it and what price you’d accept when selling. This is how banks have to look at every loan that doesn’t perform. They must decide to keep the terms, possibly foreclose, and lose the payments from it…or to forgive debt or make other concessions so that the loan works for the homeowner.

When negotiating with the lender or loan servicer, there are different tactics that are available:

Loan modification – address the terms and conditions of the loan itself
Lien modification – the lender modifies the current loan so that the borrower can qualify to refinance into a new loan
Short sale – the lender agrees to the house being sold at a price lower than the mortgage amount

Each of these solutions has different advantages depending on the homeowner’s situation and goals. Working as an arbitrator with the borrower and lender’s interests in mind, Loan Modification Masters works with a proven Law Firm that negotiates to find the best solution for each individual case.