 Loan Modification and Loss Mitigation Questions and Answers: I have compiled a bunch of answers for you so that you can determine if Loan Modification is the route for you to take.
Question 1. What is Loan Modification? Answer . A procedure where your loan(s) payment plan is altered due to the hardship of the borrower. This include the new lowered rate, 30-40 fixed term, past due payments put on the end of the loan, 2nd or 3rd mortgages reduced or eliminated, principle reduction, and sometimes freeze your payments for up to 6 months to give you time to rebuild. This a negotiation process between the lender and our Legal Department. Question 2. What is Loss Mitigation? Answer . Loss mitigation is the process of trying to stop a home foreclosure before it occurs. Question 3. What is a Short Sale? Answer . The sale of property prior to foreclosure at a reduced amount. Your lender determines the outcome of your proposal. We are very successful with this procedure if your choose to go this route. Question 4. What hardships qualify for this type of help? Answer . Whether it was the loss of a job, a divorce, an illness, or rising interest rates, in most cases, there is a legitimate reason for a homeowner falling behind on their mortgage payments. There are numerous reasons, and it's extremely hard to get back on track when you're on a tight budget. Question 5. How far behind on my payments do I have to be, before I can qualify for a Loan Modification? Answer . If you know that you are unable to make the next payment, contact us after the due date so that we can assist you immediately which usually gives us quick results and much more leeway. If you are more than a month behind or even in the foreclosure stages, we can help you. Question 6. How long will I have to remain on this program? Answer : This all depends on how quickly your Lender will come to terms with us. Our Attorneys will fight for your "best loan modification" which could take up to 3 months. We work to get you the best modification that fits with in your budget. If you lender refuses to work with us, they have to provide good reason to justify their decision. We do have other options available to you. Question 7: Do I have to have good credit? Answer : No. Credit is not a determining factor. Question 8: Is this kind of like a refinance? Answer . No. This is not a refinance, and there are no closing costs. We negotiate with your lender to reduce your rate, and place you on a fixed term. Question 9: Why would my bank agree to your terms? I tried to work with the lender myself, but they wouldn't budge. Answer : Foreclosing on your home is your banks last alternative. They do not want your home. Most lenders Lost Mitigation Departments do not have the manpower it takes to accommodate all of the homeowners efforts to resolve the matter. This is why they now allow a 3rd party Loss Mitigation company to step in and do most of the work for them. It is important that you have experts and experienced Attorneys working on your behalf. Also, we have no emotional attachments, which allows us to work in your best interest for the best modification and settle for nothing less. Question 10: My lender calls me at least 3 times a day. Do I have to continue taking their calls? Answer : No. While enrolled on our program, if your lender contacts you, tell them they will have to communicate with your attorney and that he will be speaking for you on your behalf. Question 11: I don't want to keep my home but I would like to sell it. Could this help me buy time to keep it on the market? Answer : Yes. This process would be the same as if you were going to stay in your home. You also would have the option to short sell.. Question 12: Can I rent my home and generate extra income while enrolled in this program? Answer : Yes. There are no repercussions on what you decide to do with your property. You are free to rent, sell, short sale, or live in your home. Question 13: What states can you assist? Answer : All 50 states of the USA Question 14: Can you help investors who have multiple properties in foreclosure? Answer : Yes, please see my blog made specifically for investors. How to Prevent Foreclosure on Your Investment Property Question 15: Will this have an adverse effect on my credit? Answer : Yes. Whenever you find yourself past due on your mortgage, your credit score will drop. But, once you are back on track it will take you only a couple of years of consistent payments to bring your credit score back to normal. There are also credit repair companies who can assist you in helping remove your past due payments from your credit. A foreclosure would remain on your credit for 7 years which in turn would have a longer more negative effect. So, this alternative actually would work best for you. Question 16: What if I find myself back in this predicament after my new loan modification takes effect? Answer: In most cases, you will have a hard time working with your lender once they have agreed to modify your mortgage. This is why it's important to have experts working on your behalf so that you end up with the best, more affordable terms. Question 17: What would classify me as an unlikely candidate for Loan Modification or Loss Mitigation? Answer : If you have filed a bankruptcy or have already joined a 3rd party Loss Mitigation company and are trying to join another, we would not be able to take on your case. You could ask your trustee to forgive or dismiss the bankruptcy and then we could proceed. Question 18: How much does a Loan Modification or Loss Mitigation cost? Answer : The fee is determined on a case by case basis. Please contact me with your scenario and I will be happy to analyze your unique situation and provide you with more information on fees. Considering all the hard work and effort we put into your modification, including our Attorneys and legal staff, we are very competitive with other companies when it comes to fees. On the other hand, it's kind of hard for them to compete with our services. You may be surprised at how affordable it is. Question 19: How can I be a part of the foreclosure solution? Answer : It's simple. Spread the word. Talk to your family and friends. Let them know there is legit help for them. Sometimes it's hard for people in these predicaments to come forth and ask for help. I feel I have provided you with valuable information. If you have any unanswered questions, please contact me and I will add it to my list. Thank you for any suggestions. How to Avoid Loan Modification Scams |
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