Much of the mortgage and refinace market across the country has changed dramatically in the past year, and some parts have remained the same. Each deal is different, and we have learned how to help people negotiate financing through banks or mortgage brokers, private individual financing, and owner financing...and sometimes a combination of two or more is the recipe that works.
We're not mortgage brokers, but we have become experts in helping our clients and customers negotiate the financing end of transactions, including refinancing, short sales, and yes counseling on loan modifications...occasionally with home run results for clients and customers.
Call or email SimonTheBroker@aol.com for more info, or just to be pointed in the right direction...
What is a Loan Modification?
In short, a Loan Modification is a permanent change in one or more of the terms of a mortgage, resulting in a payment the mortgagor can afford. This can involve interest rate reduction, loan amount reduction, change to a different type loan, and other considerations. Don't go it alone! My dedicated team of experts knows how to get the "best deal", quickly, with no hassles! If loan modification is for you, this can be the most important financial decision ever! Let the professionals do the work for you.
Who is eligible for Loan Modification?
There are no fixed rules (yet) for loan modifications. Here are some typical circumstances that preclude a refinance on affordable terms, can lead to a foreclosure, and could compel a lender to modify the terms of the mortgage:
- Current or past mortgage arrears
- Negative equity (loan values exceeding the property value)
- Decrease in income
- ARM that will or has re-set at a high rate
- Low credit scores or other credit issues
- Increase in personal expenses (medical, educational, emergencies, etc.)
What can Loan Modification consist of?
LM typically consists of one or more of the following:
- Interest rate reduction on a permanent or temporary basis
- Loan balance reduction
- Change of mortgage program, usually to a long-term fixed rate product
- Delay of payments to allow the borrowers to deal with things like credit card debts, typically for 2-6 months.
What is "forbearance"?
Forbearance is a lender's postponement of payments in order to give the borrower time and opportunity to make them up. I am typically not in favor of forbearance because it usually only postpones the problem. It does not provide the borrower with a new financial beginning, nor the opportunity to start accumulating equity again. Forbearance arrangements sometimes also include a pre-defined sharing of increase in the property value with the lender.
How to get a loan modification
You can approach your lender yourself, but I definitely don't recommend it. This could be your biggest financial move ever. One which will have a drastic impact on your long-term financial situation - and ultimately quality of life. People who approach their lender directly usually have a frustrating experience. It typically takes a long time, no communication, uncertainty, stress, and ultimately NOT the best possible deal for the borrower, but the best possible deal for the lender! If you have more than one mortgage you have an added challenge because no lender wants to compromise more than the other, plus the total solution needs to fit the guidelines of both. Most lenders will also stipulate that they will not make any subsequent modifications, so you only have one chance to get the best possible deal. Don't go it alone!
What I can do for you
I have the support of a dedicated team of Loan Modification negotiators who are connected with over 600 LM decision makers at mortgage lenders and servicers nationwide. They know how to get the best deal for YOU, quickly, and with no hassles! LM service is not expensive and certainly a lot cheaper than re-financing, selling your property, or worse - and the "upside" is substantial.
How it works
1. We review the situation to determine what the possibilities are, and report back to the borrowers. There is no charge for this, and it typically takes 24-48 hours.
2. The borrowers review and sign the service agreement and pay a non-refundable negotiating fee. This puts our team to work.
3. We "build the case" with the help of the borrowers so that our negotiators have the tools to successfully negotiate with the mortgage lender(s).
4. We can negotiate a loan modification in nearly 100% of the cases. But our focus is on getting the very best terms! It is not just a matter of resolving the immediate crisis, but more importantly to establish a permanent solutions that amounts to a true "new beginning".
5. When the loan modification has been negotiated and accepted in writing by the borrowers, the paperwork is taken care of and the success fee is paid. This is a much simpler process than a refinance because the existing loan gets modified, not replaced.