What is Loan Modification?

A loan modification is the process of renegotiating the terms of ones mortgage loan in order to save the home from going into foreclosure. A successful loan modification can reduce your mortgage payment, lower your interest rate, and even reduce your principle balance.

How to get a Loan Modification!

Getting a loan modification from your bank may be harder than you would expect. Although the government has put the pressure on banks to modify loans whenever possible, homeowners are often given the runaround from their lender. The best way to make sure you get the best possible loan modification is by hiring an experienced loan modification company or real estate attorney. By using a professional your chances of getting approved for a loan modification are substantially increased.

Choosing the right Loan Modification Company!

When choosing a company to handle your loan modification it is always best to seek out a company with years of experience in real estate law. Make sure the company has a proven track record of successful loan modifications under their belt. You may also want to investigate their company to make sure there are legally allowed to service loan modifications. Certain states have requirements and restrictions regarding loan modifications.

Even with The President of the United States putting pressure on banks to modify loans whenever possible, borrowers are often given the runaround from their banks, making it extremely difficult if not impossible for an unrepresented individual to get a loan modification done. This is clearly seen in the video above when even a Congresswoman fails to assist one of her constituents in getting a loan modification.

This is why it is best to have expert representation when trying to get a loan modification. Most borrowers simply don't understand the maze of laws and requirements that the banks need to modify a loan. This often leads to frustration and allows the lender to take advantage of you, put you off or ignore you completely. Having expert representation is the only way to get the bank's attention and get the loan modification that you need in order to stay in your home.

Don't wait. Complete the form now. Be on your way to a new loan tomorrow.

Why a Loan Modificaton? Just consider these benefits!

Mortgagee Letter 2008-21 states in part: Legal fees and related foreclosure costs for work actually completed and applicable to the current default episode may be capitalized into the modified principal balance.

Mortgagee Letter 2008-21 also states that accrued late charges should be waived by the mortgagee at the time of the Loan Modification.

Mortgagee Letter 2009-35 states that the Mortgagee shall reduce the Loan Modification note rate to the current Market Rate.

Mortgagee Letter 2009-35 also states that the Mortgagee must re-amortize the total unpaid amount due over a 360 month period from the due date of the first installment required under the modified mortgage.

In Summary...

The administration's plan requires participating loan servicers to reduce monthly payments to no more than 38 percent of the borrower's gross monthly income. The government would then chip in to bring payments down further, to no more than 31 percent of the borrower's monthly income. The Bank would first reduce the interest rate to as low as 2 percent. If that's not enough to hit the 31 percent threshold, they would then extend the terms of the loan to up to 40 years. If that's still not enough, the servicer would forebear loan principal at no interest. (The plan does not, however, require servicers to reduce mortgage principal.)