Frequently Asked Questions about Loan Modification:
Q: Is loan modification right for me?
A: If you currently own a home with an adjustable rate mortgage that has been adjusted upwards or may be adjusted upwards in the future, loan modification could be the perfect solution to your payment problems. If you signed up for an interest only loan that seemed affordable at the outset but is now causing you financial difficulties due to higher interest rates, you are not alone. Millions of Americans are finding themselves in exactly this situation. Don't wait to take action! Waiting too long before pursuing loan modification could make matters worse. See what loan modification can do for you today, and rest easier tomorrow.
Q: Isn't loan modification similar to refinancing my mortgage or consolidating my debt?
A: Not at all! Refinancing a home loan requires you to pay out of pocket for things like appraisals, applications, and lender fees, and the problem is already that you don't have enough money. Why should you be asked to spend more to find a solution? Debt consolidation works by grouping together debt from numerous sources into a single loan or program with lower payment rates, but it doesn't apply to mortgage payments. Loan modification works by taking your existing loan and restructuring it to better suit you and your financial needs.
Q: So how exactly does loan modification work?
A: Loan modification reworks the terms of a loan that is currently impossible for the mortgagee to maintain. We work closely with you and your lender to negotiate new terms for your loan that offer you relief from increased debt and the fear of foreclosure. Through negotiations we are able to alter the terms of your loan by changing your interest rate, changing the amount you pay to the lender each month, and even sometimes altering the length of your loan. The changes we make with your lender can have substantial and positive effects on your loan and your whole financial situation.
Q: What kind of success rates do you have from loan modification?
A: Our success and the success of our clients is outstanding. Our mortgage and legal specialists work carefully and efficiently to make sure you get back on your feet as quickly as possible with the best possible outcome for you and your finances. In as little as a couple or weeks you could be back on track, with your savings and credit intact, and your home safely secured.
Q: Why can't I negotiate a rate-change or modification with the lender myself?
A: While it may seem simple to accomplish on your own, it is through the knowledge of legal specialists and loan professionals that you the client will get results. Many times the lenders themselves lack employees with the information or skill to modify loans on their own. Some institutions may also be unwilling to take a longer view of the situation at first, preferring to cut their losses and take the money that would result in foreclosure rather than work with the mortgagee to reword the terms of the loan and come up with a mutually beneficial solution. By allowing professionals to handle the negotiations associated with loan modification, you are taking the guesswork out of the process and making sure you get the best results possible.
Q: What actually happens while my loan is being modified?
A: Our professionals work with your lender to negotiate a lower interest rate for your loan. By bringing down the percentage of your interest rate, we can lower your monthly payments to an amount that fits your budget and reduces the strain on your assets and your family.
Q: How long will it take to modify my loan and get my payments lowered?
A: It could be a matter of mere weeks before you begin to see the benefits of having your loan modified. While the process is underway, most lenders are willing to stop foreclosure on your home. Imagine not having to worry about foreclosure while the details of your loan modification are solidified! You may even be able to skip a mortgage payment, and then start paying again once your rates have been reduced and your loan is restructured to better suit your financial needs.
Q: What is required from me in order to start modifying my loan?
A: All it takes is some basic information from you to get the process underway. We'll need a few documents relating to your income, the details of your current mortgage, and your overall financial situation. This information allows us to put together the paperwork the lender requires in order to approve a modification of your loan.
