What is a Loan Modification?

A: A Loan Modification is when the bank allows a change in the terms of your existing mortgage. The purpose of a modification is to significantly lower your monthly payments.

Who qualifies for a loan modification?

A: Anyone that is having trouble paying their existing loan may qualify for a loan modification. In today’s housing market banks are willing to work with mortgage holders who are having trouble paying their mortgage. However, homeowners with a high probability of getting a loan modification are those currently in an adjustable rate mortgage, have a high interest rate, and/or are experiencing any kind of hardship.

Why will it work for me?

A: The government has asked for ALL lending institutions to help in the foreclosure epidemic and modify mortgages for all troubled homeowners, especially the lenders and banks that accepted money from TARP. TARP stands for the "The Troubled Asset Relief Program", a program that is part of the $750 billion dollar stimulus act brought forth by the President of the United States. As of data dating from January 2011, out of 7 million applicants, only 200,000 have had their loan modifications approved.

That equates only to a 2.86% success rate! Please keep in mind that our company has over a 90% success rate. Sadly, we can’t accept everyone’s case or file. Because of our expertise and years of experience, we already know what the borrower is going up against and what their payment will be before we even submit the file. We don’t cross our fingers or throw files up against the wall hoping they stick. We only accept files we know that going to be approved. Going to your lender with the representation of an attorney that specializes in loan modifications, is the only logical choice. A wise man once said, "A man that represent himself, has a fool for an attorney."

What if my credit is bad?

A: Loan Modifications are not credit score driven. Quite frankly, the worse off a homeowner is, the stronger candidate they are. Homeowners behind on their mortgage would indicate and reinforce the idea that they are facing or going through a financial hardship. The banks will try and salvage the troubled loan. In addition, homeowners that are currently in bankruptcy, not behind on their mortgage, and with no equity or negative equity can also qualify and get their loans modified. Typically, loan modifications will not hurt your credit; generally only late payments or a foreclosure will negatively affect your credit score.

Do I Qualify for a Loan Modification?

Contrary to what some loan modification companies may claim in advertisements, not everyone can qualify for a loan modification. In order to qualify for a loan modification you must show proof that you are experiencing a hardship. You must also provide proof of income and be able to show that you can keep up with payments after the terms of your home loan have been modified. To find out if you qualify for a loan modification please fill out the form on the left to have a loan modification specialist contact you.