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Loan modification
(Foreclosure Prevention and Loss Mitigation)
Loan modifications, recently in the news due to generous arrangements made with Indymac borrowers who were offered interest rates as low as 3%, are now widely made! I am offer a dedicated Loan Modification Service, backed by an expert team of negotiators and who have well-established contacts with all mortgage lenders. If you, or anybody you know, can benefit from this I recommend you contact me asap because the future of loan modifications (on favorable terms) is unclear.
Foreclosure Avoidance and Loss Mitigation
Our Loan Modification service is actually "Foreclosure Prevention and Loss Mitigation" service. The focus is on the best possible out-of-court solution. Ideally this would be a "new beginning" with the borrower keeping the property, making affordable payments, and the opportunity to generate equity again over time. Our assistance can also result in realizing a short sale (where the lender agrees to accept a sale at market value and forgives the deficit), or surrendering the deed in lieu of foreclosure (where the lender assumes ownership and absolves borrowers of the mortgage debt). We work closely we our clients to evaluate the alternatives and make the best possible case with the lenders. Note that we are consultants and negotiators. We are NOT attorneys, and we do not provide legal services.
Who is eligible for Loan Modification?
There are no fixed rules (yet) for loan modifications. Here are some typical circumstances that preclude a refinance on affordable terms, can lead to a foreclosure, and could compel a lender to modify the terms of the mortgage:
- Current or past mortgage arrears
- Negative equity (loan values exceeding the property value)
- Decrease in income
- ARM that will or has re-set at a high rate
- Low credit scores or other credit issues
- Increase in personal expenses (medical, educational, emergencies, etc.)
What can Loan Modification consist of?
LM typically consists of one or more of the following:
- Interest rate reduction on a permanent or temporary basis
- Loan balance reduction
- Change of mortgage program, usually to a long-term fixed rate product
- Delay of payments to allow the borrowers to deal with things like credit card debts, typically for 2-6 months.
What is "forbearance"?
Forbearance is a lender's postponement of payments in order to give the borrower time and opportunity to make them up. I am typically not in favor of forbearance because it usually only postpones the problem. It does not provide the borrower with a new financial beginning, nor the opportunity to start accumulating equity again. Forbearance arrangements sometimes also include a pre-defined sharing of increase in the property value with the lender.
How to get a loan modification
You can approach your lender yourself, but I definitely don't recommend it. This could be your biggest financial move ever. One which will have a drastic impact on your long-term financial situation - and ultimately quality of life. People who approach their lender directly usually have a frustrating experience. It typically takes a long time, no communication, uncertainty, stress, and ultimately NOT the best possible deal for the borrower, but the best possible deal FOR THE LENDER! If you have more than one mortgage you have an added challenge because no lender wants to compromise more than the other, plus the total solution needs to fit the guidelines of both. Most lenders will also stipulate that they will not make any subsequent modifications, so you only have one chance to get the best possible deal. Don't go it alone!
What I can do for you
I have the support of a dedicated team of Loan Modification negotiators who are connected with over 600 LM decision makers at mortgage lenders and servicers nationwide. They know how to get the best deal for YOU, quickly, and with no hassles! LM service is not expensive and certainly a lot cheaper than re-financing, selling your property, or worse - and the "upside" is substantial.
What it costs
- There is a non-refundable underwriting fee of $595 for a single mortgage, plus an additional $100 for any additional mortgage on the property.
- A success fee, which is 100% refundable if we fail to negotiate an acceptable solution.
- There are no other costs.
The process consists of five steps:
- Submit Loan Information. You provide us an overview of your current situation.
- File Audit (qualification). Senior negotiators review your file to be sure you qualify for a modification or other solution.
- Submit Income & Expense Information. You submit detailed income & expense information. This is an interactive process where we "build your case"
- Package and Submit info to Lender. We present your case to the lender(s) and negotiations begin.
- Once negotiations are successfully concluded we guide you through the process of putting your modified loan in place.
Are you a candidate for Loan Modification?
You can put the professionals to work for you by contacting us for a no obligation review. Click here
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