Mortgage Modifications-Helping You Save Your Home!

by DEBRA FIORILLI of DEBT SOLUTIONS OF OHIO, LLC ( )

You do not need to lose your home through foreclosure, you have too many options without risk. There are certain consumer protection laws in place that are truly effective in helping homeowners fight against lenders who are trying to foreclose on their homes. Many homeowners are unaware that they can fight back against their lenders and win!  A large number of homeowners will find themselves using a Mortgage Modification Plan to stop foreclosure. If you can currently make your regular payment, but you can’t catch up with the past-due amount, it is possible to negotiate with your lender to fold any past-due amounts, including interest and escrow, into the unpaid principal balance. This new amount will be re-amortized over a new period of time. Or, if you are unable to make payments at this rate, it is possible to negotiate with your lender to extend your loan for a longer period of time, modifying the loan amount to a more affordable level. A loan modification will change your existing mortgage note and give you a fresh new start in managing your home. Your account will be brought up to date immediately. You need to save your home but your lender is asking for too much money. You're not asking for them to forgive the loan but you need help creating a payment plan that you can handle. You just need someone on your side to negotiate with your lender to get you back on track. What is a Loan Modification? A mortgage loan modification is a changing of loan terms which are agreed upon by both the mortgage holder as well as the borrower. This can include a change in principal, interest rate, prepayment penalties or just about any other previously defined term. A loan modification can be used to stop foreclosure and avoid bankruptcy. Do I have to be behind on payments to qualify for a Loan Modification? While most loan modifications are done for those who are behind on mortgage payments and can show a substantiated reason for why they cannot catch up, you don’t have to be behind to qualify for a mortgage modification. Can missed payments be included in a Loan Modification? Past mortgage payments that went unpaid can be included into a loan modification. A willingness to get caught up in your current mortgage can show the lender how serious you are about making any new mortgage terms a top priority. What constitutes a “Hardship Situation”? A “Hardship Situation” can be included to mean the death of a spouse, divorce, injury, illness, loss of employment or extreme financial difficulty. Other situations might occur and are subject to review. Our mortgage modification specialists are available to help determine if you situation warrants this. Can a Loan Modification help me avoid foreclosure? Absolutely, in fact you should aggressively consider a mortgage modification before entering the foreclosure process. As lenders and banks continue to help homeowners avoid this costly situation mortgage modifications have become more and more attractive. We can help evaluate your current loan and recommend a modification plan. How long does it take to do a Loan Modification? Because each homeowner’s situation is different the time need to qualify for a loan modification can vary. Typically a modification takes between 2 weeks to 4 months. How long do I have to start a Loan Modification? Generally speaking the sooner you start the easier a loan modification is. As soon as the foreclosure process starts a loan modification is no longer an option. Homeowners who want to apply for the mortgage loan modification plan will be asked to complete an application and provide their income documentation.  The application will include required loan modification forms that must be filled out detailing income and expenses, as well as a hardship letter verifying an acceptable financial hardship situation.  How these forms are completed will in large part determine the lenders decision to approve or deny the application.  If you can show clearly that you meet the approval guidelines, you will have a very good chance of getting a new lower payment. * First, the interest rate will be reduced to as low as 2%, then * Term lengthened to 40 years, if more is needed, then * Some principal may be deferred   These terms are some of the most aggressive mortgage loan modification options available, and are designed to give the homeowner an affordable monthly payment.  This is the second chance that many homeowners need to avoid foreclosure and stay in their homes.