Understanding a Mortgage Modification and how it can help you!
A mortgage modification is a permanent alteration to the terms of your existing mortgage.
Some clients we have helped with the Traditional Modification and the Obama HAMP [examples]
If your lender agrees to modify your mortgage then you keep the same loan that you used to purchase your property but the terms of that loan are modified. Because you are keeping the same loan and not applying for a new one, as you would with a re-finance, your credit score is not relevant.
The reasons for modifying a mortgage are much the same for both the lender and you. Both parties do not want the property to go in to foreclosure. Foreclosure will likely cause the lender to lose money and it will cause you to lose the property and damage your credit.
Exception:If you get behind on your mortgage and live in a high property value area, have equity and/or market sales are average to good. Then the Lender may in some cases foreclose as quickly as possible on you. That is why it is good to be ready and start the modification process before you get too many mortgage lates.
Notice: Funding-Loans will never ask you to deliberately get behind on your mortgage. We do recognize the fact on a traditional modification it is more favorable statistically to be 1 to 3 months behind on your mortgage, and some lenders will not want to work with you, if you are not late... Just the same, those lates need to be verified and clearly shown as because of a financial hardship and change in your finances. Not because you felt like not paying, and/or another modification consultant / company told you to get behind! Thus, please pay your mortgage on time unless a serious document-able financial change has occurred and you have no other choice...
The Obama HAMP allows for no mortgage lates, and we try to get our clients qualified into that program first, before considered the traditional home loan modification.. That way those not behind on their mortgage has the same chance of a modification as those behind.
An important point to remember is that a lender will only modify the terms of your mortgage if they believe that it is in their best interest to do so. Mortgages are not modified out of mercy, goodwill or pity. Funding-Loans.com will present a sound business proposition to your lender that makes financial sense. Funding-Loans.com has a great deal of experience in dealing with Mortgage Modifications, and know what to recognize in our file review and forensic audit that will helps us push the lender into helping to give you an even better modification when possible.
Funding-Loans.com will work for you as your defense team. They are ready to fight with the lender and their negotiators to provide you the best possible solution and positive out come. Because as stated before the Lenders do not care about you, or want what is best for you... They will by their very nature try not help you at all, or provide the least positive solution for you to accept...
Remember the mortgage lenders are the same people that create the loan programs for the mortgage companies too sell that got you into this spot right now. Do you really think the lenders have changed into some warm fuzzy friend, since then? It is all about the numbers and money to them. You are just another number that needs to be balanced in a more positive light in their favor, not yours... It is better for them to reduce the rate for a bit, or trick you into something just a little bit better then what you currently have, instead of foreclosure... Foreclosure will likely cause the lender to lose money. - That is the only reason why they want to help you, not really help you, but to help themselves!
Why not do a modification directly with the Lender or through a modification group the Lender recommens?
Funding-Loans.com does modifications by the hundreds each month and knows what is a good deal and what is not... Because their experience and our direct relationship with the negotiators of most of the lenders... They recognize us as your "people" and protector. Funding-Loans.com will fight for the best solution for you when ever possible.
Instead, of going it alone against a giant in your attempt to modify your home loan. You have in the front lines us "your people" fighting and defending you during the loan modification process.
Common Sense:Doing a Home Loan Modification directly with a lender, without Funding-Loans.com help. Is like going to court for a serious situation / crime without a Lawyer... The opposing side has all the information, practice, and experience with a group of lawyers ready and eager to fight for them and you just yourself... Do you really expect to get the best deal possible in this kind of situation?
The nature of a traditional modification is still a wild west situation. Ever lender is different on how they handle a case, and every negotiator for each lender has a different way of handling a case... There is little to no set guidelines and the outcome varies. Just the same, Funding-Loans.com has a great deal of history with many of the lenders and can still provide a guideline and expectation for them to meet. Funding-Loans.com determined what to expect from them by prior modifications and the prevailing type of solutions given to similar people in your situation from all the lenders in general. This critical experience, knowledge on what they expect to see, and how they generally react is critical too having a positive out come for you!
It is our experience, relationships, willingness to fight, and knowing what tactics and what to expect from the lender that separates Funding-Loans.com from you doing it yourself. We help clients all the time get a better modification, even after they had done it alone with just the lender. Lenders tend to offer shorter terms, and higher rates to someone doing a modification directly compared to doing one with a modification company.
It is Funding-Loans.com professional integrity; desire to give you the best modification possible, internal systems, multiple options, and some of the best modification specialist in the industry as our partners. That separates them from other modification companies and gives you a much needed edge with the lenders.
Any or all of the terms of your mortgage can be modified. Here is a list of some possibilities:
1. Lower fixed interest rate for the remainder of the mortgage
2. Lower or even a 0% interest rate until a set date. Interest only periods can be as long as 10 years with some lenders.
3. A payment holiday until a set date
4. Arrears added to the balance so as to bring your account up to date and help your credit
5. Fees and charges forgiven
6. Lowering of monthly payments by lengthening the term of the loan up to 40 years
7. A reduction in the principal owed - (this is seldom done) It is part of the HAMP if you qualify.
The act of applying for a mortgage modification does not affect your credit score in any way. Unlike a bankruptcy or foreclosure, a mortgage modification will not appear on your credit at all.
Making late payments on your mortgage does damage your credit. It is very common for a successful modification to remove any arrears from your account and add them to the amount outstanding on the mortgage. This brings your payments up to date and has a positive effect on your credit score.
To Pre -Qualify you for a traditional modification we will need to get some information from you.
The Pre-Qualification will usually take about 10 minutes on the phone with one of our Modification Specialists.
The Specialists will not ask you for your social security number, bank account information, nor pull your credit!
If you are Pre-Qualified then we will help you choose the best program to fit your needs.
In most cases we will have you collect the following documentation:
1. Current pay stubs (at least your most recent) 2. W‐2’s or 1099 for the last 2 years. 3. 1040 for past 2 years 4. Bank Statements for current and savings accounts for last two months
(The costs of the Home Loan Modification varies to what state you live in and other factors.)
General Pricing: (Prices and programs very depending on what state you live in.)
Legal Service for Home Owners program includes - Loan Modification + Basic Forensic: $3495 - includes both 1st and second
HAMP - Obama Home Affordable Program + Basic Forensic Audit: $3000 - $3500 [details] - this is the best program if you qualify!
WACHOVIA Loan Modification - Fast Track 30 Program
