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A Loan modification or loan workout is a permanent change in one or more of the terms of a mortgagor’s loan. It is a long-term solution to remedy a borrower's inability to repay the loan. Loan modifications are not specific to real estate transactions and mortgages. Borrowers modify all sorts of loans every day, only recently has the term gained so much publicity with the recent financial crisis at hand. Lenders allow for a modification of the loan’s terms in order to help the homeowner who in experiencing hardship and by doing so further prevents greater loss in a foreclosure. Through a modification, it is expected that the new loan will enable the borrower to catch up and meet their obligations on time. Borrowers must, however, convince their lender how and why it would be in their best interest to modify their loan.
In the recent months, homeowners faced with foreclosure or even the slightest stress in managing their monthly obligations should waste no time and consider act as soon as they begin to struggle. In this current market missing one payment is a good sign of distress. Please consider that at the point one payment has been missed, your home and credit are already at stake. In addition, lenders are not interested in foreclosing your home except as a last resort. They are simply not in the business of owning real estate. Keep in mind that lenders usually agree in a loan modification only if they find that modifying the loan will be more profitable to them rather than a foreclosure. Banks tend to lose more money in a foreclosure transaction rather than a modification or short sale. In addition to the losses on the financing. there are fees for an attorneys, buyer agent, seller agent have to be paid. Don't forget the lender also risks the unhappy homeowner destroying the property before they leave. With these considerations in mind, lenders are far more interested in helping borrowers stay in their homes as long as they can truly afford the terms. Given that a homeowner has a true hardship, with a loan modification, everyone is a winner.
A Loan Modification Solution can help you save your home. We provide homeowners an opportunity to restructure their loan in such a way that they can stay in their home. By negotiating a loan modification on behalf of the homeowner, we are able to protect your most important asset, your home.
Absolutely not. When a mortgage company forecloses on a property, they almost invariably lose money.
The mortgage company wants to limit their losses and keep qualified borrowers in their homes.
 | Currently behind on mortgage payments @7.95% adjustable. Negotiated offer - 3.95% fixed for 3 years. |
| | Currently in NOD with a sale date, behind over $17,000, principle balance $385,772. Negotiated offer - 7.12% 2yr extension to new rate. new principle balance of $330,000 (lender waived over $55,000 in principle balance + lates) |
| | Currently behind over $21,000, 9.625% adjustable rate. Negotiated offer - 7.00% until maturity date (2036) with only $5,160 requested from client. (Over $15,000 forgiven) |
| | Currently 9.25% adjustable rate. Negotiated offer - 6.95% 5yr fixed |
| | Currently 9.95% adjustable rate. Negotiated offer - 6.25% 5yr fixed |
| | Currently in pay option arm, with notice of default. Negotiated offer - locked min payment 3.25% towards principle and interest. four year fixed. |
| | Currently behind one month, high adjusting rate principle balance of over 75k. Negotiated offer - rate reduction to 2%, three year fixed. Principle reduction down to $51,334 (Lender waived over $23k in principle balance) |
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