Loan Modification FAQs


What is a Loan Modification?

A Loan modification is a change of the terms of a loan in which the lender restructures your loan without actually refinancing the property. A loan modification should not be confused with refinance home loans it is meant to help a distressed homeowner avoid and or stop a property from foreclosure. They are also meant to be a long term solution which takes a more favorable interest rate, longer loan term or even reduced principal balance as well as the borrower's current budget into consideration. A modification can include change of your interest rate, length of the loan term and even a reduction in the principal amount owed. In most cases the borrower and Lender enter a loan modification agreement with agreed upon terns when it is determined that the current loan parameters can no longer be met. Our participating Attorney's specialize in negotiation with lenders can often help you get the best possible deal if you are seeking a reduction in your mortgage payment. The process will just simply allow you to modify the terms of you existing mortgage. Register now and get FREE advice to discuss your best Options!

How can a loan modification help you?

A Loan modification can lower your monthly mortgage payment to make your payments more affordable which can relieve stress. It is always in the borrower's interest to seek loan modification advice as soon as possible to avoid unnecessarily damaging their credit and possibly limiting their options for a solution to their current financial predicament. Imagine how a lower monthly payment could affect and improve your finances and the quality of life for you and your family! A Loan modification is also a great tool for avoiding and stopping foreclosure.

  • You can drastically reduce your monthly mortgage payment!
  • You can erase late payments and fees!
  • You can reduce the principal balance on your loan!
  • You can Avoid Foreclosure and save your credit!
  • You can stop your adjustable rate mortgage from resetting!
  • Regain control of your finances!
  • Protect your home and protect your Family's security!
Am I Eligible for a Loan Modification?

If you have an adjustable rate loan or interest only loan you should look into having your loan modified. Even if you have a fixed rate mortgage that you are struggling to afford, it is very likely that your lender may be open to modifying your terms to insure you do not go into default on the loan. It is fundamentally a transaction that makes more business sense than costly foreclosure proceedings. Simply it is in the best interest of the bank. Since many programs vary in how they work, you should contact your lender and advise them of your hardship and get more information. Each mortgage lender has different loan modification programs and processes however most have very similar qualification criteria. If you find your current mortgage payment to be unaffordable it is very important for you to act quickly and see if a loan modification can help you before it is too late. Seeking expertise in streamlining your loan modification process can often save you a lot of frustration and money.

Can you ask your lender for a Loan Modification?

The answer is yes, but the problem is that many lenders are not set up to deal with large numbers of consumers seeking a loan modifications. Many consumers do not get the attention that they need from these lenders. Having an attorney and team of legal professionals working and fighting for you can result in a faster and much more favorable outcome. A Licensed Attorney that is an expert in Loan Modifications and knows what to do and what will be the best acceptable outcome of your loan modification is the best way to go. It is very common for many consumers to experience inflexibility from their lenders before using an attorney. Attorneys get your lenders to listen to your needs because they know their legal teams of experts.

Do you have time to save your house from foreclosure?

Possibly but it is very important that you act now if you are behind on payments and wish to avoid foreclosure. Time is definitely of the essence and not on your side. Each day that passes makes it more and more difficult to get a work out agreement with your lender. The home foreclosure process can take from a few months to many months, depending on your state law and the method of foreclosure your lender chooses. We can only help you once you are ready to help yourself. Until the foreclosure sale occurs there is still hope. If a sale date for your house has already been set, you are running out of time and really need to act fast. We have stopped sales set for the next day but this is not a situation that you want to get into.it is very risky and some lenders will not agree to it. You're best option is to take action immediately to stop foreclosure before it goes too far.

Why a Loan Modification better than refinancing your Mortgage?

In most cases, a loan modification is recommended to homeowners that have a financial hardship that is preventing them from making their monthly mortgage payments. By refinancing your existing mortgage to obtain a more affordable mortgage payment is an option. Unfortunately refinancing is the process of applying for a new mortgage which requires a certain amount of equity and an appraisal and bank fees. To qualify for a loan refinance the lender will look at your credit score, and examine your overall financial picture. You must meet an acceptable level of income versus the amount of debt payments you owe to all of your various creditors. That is precisely why loan modifications are better for homeowners that have incurred a financial hardship. In many cases if you are already struggling with your mortgage payments, chances are that you are in a financial position that would get denied for a refinance. Loan Modification takes the existing loan and changes it to be more realistic for you to pay according to your current finances.

How long does the Loan Modification process take?

The process can take anywhere from a few weeks to a few months depending on how quickly you can gather the appropriate documentation. Also it depends on what lender holds your mortgage loan, some act quicker than others. Once a Loan Modification procedure has been initiated, lenders will often halt foreclosure proceedings and freeze additional penalties on your late payments until your mortgage loan is modified. It is in the best interest of the lender and the borrower to get this process finished as soon as possible.

What Documents are needed for the Loan Modification Process?

The first step is filling out our information form so a participating attorney can contact you and go over your options. The consultation is free and you have no obligation to continue the process after they advise you of your options. They will answer your questions so you can make a well informed decision on taking the next steps. If you decide to proceed, you will be asked for various documentation regarding your financial situation, your income, and information on your current mortgage. Your loan modification package is going to be the most important part of your mortgage modification efforts. Again, the contents and process for packaging the information for your lender's consideration will vary, but the critical elements are typically the same. Here is an example of the documents you will probably require:
  • A letter documenting and explaining your hardship
  • Proof of current income and capability to make modified loan payment
  • Detailed monthly expense report or budget
The principal purpose of the loan modification package is to provide your lender with sufficient documentation to evaluate the risk in modifying your mortgage. The main question your lender is trying to answer is can you pay the new modified mortgage payment, and will you.

Does your lender have to modify your loan?

No but It is in the best interest of the lender. The lender is ultimately in the business to have your loan performing on their books and return a profit to their stockholders. Consequently, your objective in presenting your loan modification request is to show that it is in the best interest of the bank to modify your loan.

What might support your modification request? Here are the points that you should be able to show your bank:
  • You have had a hardship or a material change in your financial circumstances
  • You own and occupy the property as your primary residence
  • You have not filed for bankruptcy protection
  • You have made every effort to make your mortgage payments
  • You have been cooperative and responsive in working with them
  • You are not in any way purposefully defaulting to get a loan modification
  • You are willing to be open, honest, and provide all necessary documentation
Remember your bank is essentially making a new loan to you after taking a loss on the first one. You need to demonstrate to the bank that you are able to pay on the new modified loan terms.

Who are the Participating Attorneys?

Our Loan modification program is an attorney backed loan modification program available in all 50 states. We have set up this program so you have nothing to lose and everything to gain.

The team has helped thousands of homes from foreclosure. Over the years the participating attorneys have developed positive working relationships with key people in most of the biggest mortgage lenders all over the country. Their integrity and professionalism have earned them the utmost respect from the country's biggest mortgage lenders. Their reputations that gives us notable credibility with your lender and allows us to be heard when no one else can get through the red tape. We will use Our Loan modification program their experience and established relationships to your advantage in your loan modification.

Once you send them the required and requested paperwork their Professional Modification teams will take it from there and their Expert Attorneys will negotiate with your lender for the best modification possible on your behalf.

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