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FAQ

Frequently Asked Questions

  • 1. What is a Loan Modification?

    A Loan Modification is when the bank allows a change in the terms of your existing mortgage. The purpose of a modification is to ultimately and significantly lower your monthly payments, for either a temporary or permanent period of time.

  • 2. Who qualifies for a loan modification?

    Anyone that is having trouble paying their existing loan. In today’s housing conditions banks are willing to work with mortgage holders that are having trouble paying their mortgage. However, high probability characteristics are homeowners currently in an adjustable rate mortgage, have a high interest rate, are upside down on their home, and/or experiencing any kind of hardship.

  • 3. Why will it work for me?

    The government has asked for ALL lending banks to help in the foreclosure epidemic and modify mortgages for all troubled homeowners. This site will automatically produce your Bank Ready Loan Modification Package. Going to your lender with a complete modification package that has been calculated and personalized will give you the confidence you need to push back to the bank if necessary, reduce your frustration and confusion and make a scary process seem simple.

  • 4. What if my credit is bad?

    A Loan Modification is not based on credit. The banks are trying to make a good loan out of a troubled loan. However, please note that missing mortgage payments as well as entering into a loan modification will affect your credit score and so will entering into a trial plan.

  • 5. What if I have no equity or I am upside on my home?

    It does not matter! Some banks are doing principal reduction, which means the bank will discount the total loan amount to the current value of your home. This is called a principal reduction and more banks are starting to do a principal forbearance vs reductions, please note that only approximately 2% of all loan modification applications receive any sort of principal reductions.

  • 6. What if my income is too low?

    You will need to show the bank you or all others in your household can afford the new payment. This is done in our Pre- Qualification when you start the process and when you click to calculate your loan modification in the module within the system.

  • 7. What should I expect the terms to be on my new loan?

    The terms on your new loan will be dependent on many factors. Depending on the scenario you may see anywhere from a 10 year to a 50 year term.

  • 8. How much can I really save by doing a loan modification?

    This depends on your income, loan amount, loan modification program guidelines and how your financial picture fits into the guidelines both government programs and your lenders in-house loan modification programs, and other factors. The results you get will vary. Remember, a Loan is typically for 30 and in some cases extended to 40 years.

  • 9. Does every bank do loan modifications?

    Almost all banks do. We are in a housing crisis and banks are willing to work with clients to help save their homes although your results are not guaranteed and subject to your banks guidelines and decision.

  • 10. How does the bail out bill affect my chances of getting a loan modification?

    The government is telling banks they need to do their part to fix the housing crisis. The Bail Out Bill should help your chances of getting a Loan Modification. The government is now offering incentives to banks and servicers and even homeowners depending on certain criteria.

  • 11. What should I do to ensure the best loan modification?

    Read all the articles you can and familiarize yourself with the guidelines, know your full financial picture and keep a file with your paperwork in one place. Keep good notes of all conversations, actions, dates and people you speak with, including first and last name as well as department. Stay determined and escalate if necessary. If you are denied question everything, make changes and reapply. Take a deep breath, a walk in nature to stay grounded and clear.

  • 12. How long does the process take?

    With our service you will have all the documents needed to submit to the bank immediately. Banks are different and can take 30-90 days for a decision, sometimes more. We will be here for you every step of the way to walk you through the loan modification process just post your questions on the blog, make sure you read through the posted comments and answers, they are loaded with answers. You are not alone.

  • 13. Are there any other bank costs involved? Appraisal, credit report, title, closing costs, broker fees, etc…

    There are usually no other costs assigned with a Loan Modification. The banks are modifying loans for no charge for the HAMP program but sometimes charge fees for in-house programs, many times they lump those fees into your balance – so verify all of your paperwork and always send a Qualified Written Request, I send you a template when you request your free e-book and DO IT YOURSELF tools.