Mortgage Loan Modification – Is There Really Good Help Out There?

 

 

 

Just like any other industry, there is both good and bad help available in the financial services industry.  There are lenders who focus purely on the numbers.  Their job is to get you approved for the loan as quickly as possible so they can get the big interest flowing in and stacking up.

With this in mind, it is quite possible that you could go looking for financial advice and wind up worse off than you already are.  In many cases, it makes good sense to start your quest by seeking professional advice not from your lender but from a third party who has no vested interest in the money you owe.

If you are missing making your loan payments or are in danger of finding yourself in that situation, it’s time to find a good loan modification expert and get right down to work.  If they have a website, be sure to visit it and absorb all of the information available to you.  It will help you to come up with questions to ask when you finally do have your initial consultation.

It is the mortgage loan modification experts job to get you setup with a new plan that includes (but isn’t limited to) a lower interest rate, lower monthly payments and a longer term with which to repay your loan.  Moments into the call or meeting, you should have a very good feeling that this person has your needs in mind and is going to come to mutually beneficial agreement

Many homeowners are of the idea that one should go for a mortgage loan modification only when foreclosure looms large. Remember that you can go for a loan modification even if you are currently paying your payments on time. You might be able to foresee that there will be a dip in your income in the near future and that you might have a problem paying your installments on time. It is then a good idea to consult a professional in the business. There are many reputed Loan Modification assistance companies backed by qualified attorneys who will give you the right advice.

The loan modification company you hire will be aware of all the complexities in a legal contract. They will know how to negotiate a better deal since they have a lot of experience in these matters.   They will assist you in getting you into a plan that keeps the lender happy as they will be getting their money back and they’ll also befriend you as they help you get your life back on track.

Be very careful of the kind of company you pick to represent you in your loan modification application as there are a lot of scam artists who will very quickly relieve you of that little bit of money you have left.   The focus should start and stay on you and your situation.

To see if you qualify online, just fill out the form on our homepage!

Mortgage Modification- Will the Government  help?

Recession, the dreaded word, has hit the world badly. Especially in the United States where millions with a mortgage on their homes saw their whole world coming crashing down. The home owners, owing to their inability to pay their mortgage due to losing their jobs, getting less salary because their work hours have been cut or other financial difficulties, are unable to meet their monthly repayment on their homes. Homeowners have seen the value of their properties fall and have become unable to make their payments even at lower mortgage rates.

Because the value of their homes has fallen so drastically, their choice of selling or refinancing has also disappeared and in some case, foreclosure is also not an option. The best option for homeowners in this type of situation may very well be loan modification.

Mortgage Loan modification is the modification of the terms of an already existing loan previously taken out by the homeowners and offered by the lender due to the homeowners’ inability to meet their regularly scheduled repayments.

Federal loans

President Barack Obama has come up with a plan called the Homeowner Affordability and Stability Plan (HASP), which involves loan modification that will help prevent the property values from falling even further and into foreclosure.

HASP argues that the homeowners will stay on the repayment program even if the property values decline provided that they can meet their monthly repayments. Foreclosure occurs only if the monthly repayments are not met; or so it was in the past.

According to HASP, the government has agreed to make up for the shortfall ($1,000 for each loan modification with an additional $1,000 for the following three years.  Borrowers will also get an incentive reduction of $1,000, if they make their payments on time for five years.  This represents a shortfall if the lenders agree to bring down the interest rate to thirty-eight percent of the homeowners’ income or less and increase the length of time to make repayment of the loan to as long as forty years.

To qualify for loan modification under HASP, homeowners  have to prove that they, and not renters, are occupying the property, sign a sworn statement supplied with dates and figures that clearly show an inability to pay the mortgage (due to financial drawbacks or medical disability), and supplying documents stating their monthly income. Homeowners are eligible only if the above criteria are met.

Declaring bankruptcy does not does not qualify homeowners for a loan modification. It is necessary to bring in an income of some sort to be eligible for one.  Loan modification is to be made use of only if you’ve exhausted all other options.  Performing a loan modification does not mean that you get free monthly payments for your home or forgiveness of the principle balance.  It simply an agreement made between the financial institution and the homeowner where you pay a lower interest rate, smaller monthly payment or longer term based on how dire your financial situation is.

To see if you qualify for a mortgage loan modification, just fill out the form on our homepage!  You may be able to qualify for a HAMP loan modification or in-house lender programs as well.