Hard Time

Loan Modification Secrets-Loan Modification in a Nut Shell

What is loan modification?

Let’s start with the scenario:

Your mortgage current balance is $200,000

The home value is $150,000

Your rate is 6.75%

You have a hard time paying your mortgage payment

So far, you haven’t missed a payment but you are getting close to the “end of the rope”

Here is a second scenario:

Use the same information above except this time you have already missed several mortgage payments – you are behind on your mortgage.

This is in a nutshell what homeowners out there are facing when loan modification comes up.  It’s usually in a casual conversation you overheard, you read something in the paper, or maybe heard in the news. 

A year ago, the buzzword was short sale.  Today, the buzzword is loan modification.  The bank that holds your mortgage could modify your loan in 3 ways.

1. Modify the interest rate-
   Usually reducing the mortgage rate so that your monthly mortgage payment would be lowered to an amount you can afford and maintain the payments currently the magic # today is that that is your monthly payments exceeds 38% of your gross income.
   
   
   
2. Modify the term of the loan
   If you had a 15 or 30-year loan the bank may elect to extend the term to 40, 50 or more years. Again the idea is to arrive at a payment amount that you can afford to maintain and keep current.
   
   
   
3. Modify the principal balance-
   This option is the hardest one to achieve. This is a real scenario of a client of mine
   Her      1^st  Mortgage is $220,000
               2^nd Mortgage is $120,000
   She owed                       $330,000

The current value is $180,000 and going down each and every month
Nothing other than getting a refinance for a new loan amount under $180,000 would make sense.

All this sounds very simple so far right,

The problem homeowners face when contemplating what to do is THEY NEED TO TALK TO THE BANK. But the bank is putting roadblocks, how?

1. When calling the bank they are sent from department to department person to person to find themselves after a couple of hours NOWHERE. See below the link how a congresswoman who introduced her self as a congress woman got no where after being tossed from person to person.
2. If you get someone to give you information about loan modification, you will be advised the “you have to be behind on your mortgage to be able to speak to someone. Nothing could be further from the truth. You can make them speak with you. See below the link how.
   By telling you to stop making payment the bank is actually breaking the law. The bank is instructing you to ruin your credit for the privileged of speaking with them.
   
   
   
3. You will stay on hold for hours and days or to find your self you’ve just been hanged up on, not once not twice but many times over. Se the congresswoman video trying to make the calls on behalf of one of her constituents. If she is shuffled around what should a normal citizen who is asking for help should expect ? Watch the video by going to the link below, you’ll be shocked.
   
   
   

So what solutions do homeowners have?

1.      Do it yourself-
you must have the expertise the time and know the law.
you will need to learn the “lingo” and use the law to protect your rights. Be prepared to spend hours on hours on the phone. You will have to know what to say and what not to say because the bank has legal council and will use everything to benefit themselves.  You will need to discover all the secrets and tolls possible to arrive at a successful Loan Modification.
or

2.      You may choose to use the services of a Loan Modification firm who is utilizing an attorney.

Either or, you must know what it will take and what will suite you better to utilize.

And now you should have a better understanding into the process of Loan Modification. Claim your free guide to Loan Modification by signing up below: