What is a Loan Modification?
A loan modification is a financial process wherein the conditions of a loan are changed by reducing the interest rate and extending the loan term therefore enabling the homeowner to prevent foreclosure.
The lender must agree with these conditions, hence our experts are committed to working directly with your lender to not only get reduced monthly payments for you but also let you retain your house and maintain your credit.
Is Loan Modification right for me?
Indeed, if you are among the many Americans grappling in the current financial environment with an adjustable-rate mortgage and insufficient equity in your house to refinance.
In this case, a loan modification is best because, unlike short sales or forbearances, they let you retain your house and start making fewer monthly payments right away. Furthermore unlike both short sales and forbearance, the loan modification procedure results in no negative credit or tax ramifications.
What happens in a Loan & Modification Procedure?
We will renegotiate with your lender to work out fresh loan conditions and a monthly payment amount you can afford!
What do you need from me to start my loan modification?
Our experts will require some basic financial information to begin your loan modification process: your income, house, debt, number of properties, and monthly affordability range. After that, we will call your lender and show that you cannot afford anything more than this without running the danger of foreclosure; so, we will be able to renegotiate your loan conditions to get you a new reasonable monthly payment amount.
Are the lenders and banks willing to go through the modification process?
Indeed, completely! Lenders understand they would lose a lot of money attempting to sell your house on the open market given the present upheaval in the real estate industry.
By enabling the lender not to have to foreclose on your house and sell the property in a depressed real estate market, the Loan modification helps not only you, the homeowner, but also lowers monthly payments.
Will I have to meet with the Lender or do any Paperwork?
Not at all, either. From all the documentation to actively negotiating on your behalf with the lender, we will handle every aspect of the loan modification procedure. Once you hire us, we will handle everything, thereby enabling you to keep your house; you will never have to deal with your lender personally.
What other options are available to homeowners who don’t qualify for Modification?
BK7: The bankruptcy that lets you eliminate, mostly if not all, your unsecured debt. If you follow certain income criteria, you will be qualified to discharge your unsecured debt. You safeguard the little equity in your house. Every state has restrictions that usually relate to your family situation. While providing no legal remedy, a CH 7 prevents a pending foreclosure.
BK13: The bankruptcy the judges like. Usually, over 3-5 years, it offers a repayment schedule for all or part of unsecured debt. It allows one to make past-due mortgage payments, therefore resolving a foreclosure. CH 13 also offers a credit card repayment schedule and gives great weight to your salary and house equity. You may only owe in secured and unsecured debt, however, a certain amount.
Forbearance is the procedure wherein the lender agrees not to foreclose on the property if the borrower agrees to a payment schedule therefore lowering the overall amount owing. High monthly payments under this approach are still expected. The foreclosure will have to remain, nevertheless, while you make your payments.
Short sales let the lender let the house be sold for less than the entire mortgage owed. Through this procedure, the bank loses something. But you would be unable to retain any of the sales money from your house.
Hard Money Loan: One based on the equity of your house.
Keeping the property, discounting the debt, and paying the lender off results in short payoffs. Good for junior liens.
Cash For Keys: Try to avoid unnecessary protracted disputes by negotiating with the bank to get you cash to relocate.
For those who cannot afford their current monthly mortgage payments, loan modifications are finally the greatest choice accessible. Modifying a loan means changing its terms by reducing the interest rate and extending the loan duration. Your credit report may also be kept or improved.
Call today for a free consultation at (888) 803-7889 CreditRepairEase.com
Resources:
Ten Tips to Make you More Attractive for a new Home Loan - even if you have bad credit
How to fix credit to buy house?