Loan ModificationsLoan modification can help you stay in your home, and may even allow you to negotiate a lower monthly mortgage payment. If you're unable to make your current mortgage payments on time – maybe due to job loss, illness, divorce, death of a family member, or an increase in your adjustable rate mortgage payments – you may qualify for loan modification. We can help adjust your interest rate, extend your loan period, and reduce your principal balance. You’ll have an affordable monthly payment that allows you to stay in your current home.
3% interest rate is easy to get for those who qualify.
2% interest rate is a stretch but achievable if circumstances necessitates it.
If 2 or more months behind on the loan payments, it can be reinstated with the new lower monthly payment and without having to pay all the arrearages.
For those who want to really lower their payment even more they can add 10 years onto the term of the loan, amortize to a 30 year or even a 40 year.
Principle Reduction is the newest advent to loan modifications. At this time it is difficult to get but not impossible. The value of the property must be upside down (underwater), that is the home must be worth much less then the loan amount.
Forbearance Plan. Lender agrees to hold the loan in limbo where as no monthly payments would be required for a short period of time. This is NOT A PERMINANT LOAN MODIFICATION!
Sue the Lender for damages. In the most extreme circumstances in which a homeowner definitely qualifies and tried to get a loan modification but the bank said no and is acting exceptionally unfair with the homeowner, an attorney can be hired to sue the bank to perform a loan modification and/or additional damages.
Forensic Loan Audit to first discover if there are any mistakes or violations the lender made which violate State or Federal regulations, then if such violations are found the next step is to hire an attorney and sue for either; Loan Modification, return of all past payments, elimination of all future payments, reduction of principal, deem the loan void and/or have a Judge remove all liability to repay therefore canceling the loan.
A homeowner who had experienced an economic hardship of some kind.
An Adjustable Rate Mortgage that has increased in monthly payments.
Value of the property upside down (underwater), that is the home must be worth much less then the loan amount.
Could not qualify for a refinance for any reason.
Anyone 2 or more months behind on payments.
Anyone struggling to pay all their monthly expenses, but can afford to pay a portion (50-75%) of the monthly mortgage payment.
How do I know if I am eligible for a modification under the Home Affordable Modification Program (HAMP)?All Loan Modification options for distressed homeowners:
A loan modification may include three possible changes: Pay Rate Reduction, Loan Reinstatement and a Reamortization agreement. A loan modification requires a home owner to demonstrate to the lender that they have experienced a financial or economic hardship and that they can now afford to make a newer lower mortgage payment. The lender is willing to take the loss if they can justify it as the best solution for them and if they give the homeowner a new lower monthly payment that they can make it on time, every time from then on.
A Loan Modification is a life changing solution which gives a homeowner a fresh new start in managing their home. For anyone that is behind on their mortgage payments the loan can be reinstated and all arrearages either forgiven or put on the back of the loan without having to come up with the full amount. A Loan Modification is also a great solution for a borrower who has an adjustable rate mortgage that reset to a higher payment which they can't afford, cannot refinance and want to stay in their property.
1. Mortgage pay rate reduction is a possibility if the borrower provides proof of an economic hardship since they got the loan, but can now afford to make a new lower monthly payment. In that situation, a mortgage pay rate reduction is an ideal solution because it will lower the monthly mortgage payment to a manageable amount. Two ways to do this is by either lowering the interest rate or lowering the loan amount with a principle reduction.
2. Reinstatement is possible for a loan modification when the borrower has not made payments for a while, but the borrower can now afford to start making payments again. A reinstatement agreement takes all the past due principle, interest, late fees and additional junk fees and adds it to the back of the loan. The result of this negotiation is a slightly larger principal loan amount, but it brings the loan current and the borrower can now continue on with their mortgage loan payments.
3. Reamortization agreement is one more option to make payments more affordable by extending the loan for a longer period of time. 10 years can be added to the term of any loan or a reset to a 30 year or even a 40 year Term is possible today.
Designed for a homeowner that experienced a temporary economic hardship which caused them to fall behind between 2-6 months on their mortgage payment. The situation or cause of hardship must be over in order to qualify.
Repayment Plan. Banks required a contribution of between 20-50% of the arrearages to reinstate the loan with the remaining arrearages stretched out between 6-18 monthly payments in addition to the agreed upon monthly mortgage payment. This is banks preferred first option, very few people could do this.
Forbearance Modification. The loan would be reinstated with all the arrearages put on the back of the loan and loan term amortize to keep the same monthly mortgage payment.
Forbearance Plan. Lender agrees to hold the loan in limbo where as no monthly payments would be required for a short period of time. This is NOT A PERMINANT LOAN MODIFICATION!
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