Understanding Loan Modification Basics

Why Loan Modification?

•  Lower mortgage payments


•  Lower your interest rate


•  Save your home from foreclosure


•  Grant extensions on payments


•  Reduce your loan balance


•  Waive negatively accrued interest


•  SAVE YOUR HOME!

What is a loan modification?

Loan modification is the process which allows homeowners and lenders to work together to change the terms of their loan in order to stop a foreclosure, it is NOT a new loan; it is simply the restructuring of the homeowners current loan.  For a homeowner who is behind on their mortgage or has low credit, a loan modification is often the only option available.

How can a loan modification help?

A modified loan protects the credit rating of a borrower and it also helps you lower your payment without having to refinance.  Our attorneys and underwriters will negotiate with your lender to get you a lower interest rate and sometimes lower your principle.  Loan modifications help you if you have or are suffering hardship, such as losing equity in your home, loss of income, death, divorce, etc.

Why can't I just apply by myself?

When a loan modification application is submitted by a homeowner, it is thoroughly reviewed to determine the profitability to the investor or the likelihood of loss.  The "Net Present Value Test" is used to determine what will create more cash flow to the investor-Foreclosure or Modification.  Their decision has nothing to do with what is in the best interest of the homeowner. It is solely based on what is more profitable to the investor.  If modification is not in the economic interest of the investor, they will decline your application.

Our firm doesn't work for big investors.  WE WORK FOR YOU!