Risk-freeLoan Modification
Loan Modification is arguably the most effective tool you can use if you are behind on your mortgage and been impacted by a financial hardship to save your home from entering foreclosure. With a loan modification, the mortgage loan is restructured so that it is affordable and can fit within your budget. Get Professional Help Now!
Here at Loan-Modification411.com, we connect you with loan modification companies who can help negotiate a successful mortgage loan modification on your behalf with your bank or loan servicer and save your house.
We also provide you with up-to-date and accurate information and loan modification advice so you can make the right decision. Here are some questions you will find answers to: What is a home loan modification? Do I qualify? What are loan modification requirements ?
Latest Loan Modification News:
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FHA Numbers Indicate Foreclosures Will Rise Feb 2, 2010
Get ahead of the slow-moving loan-mod train Jan 31, 2010
New rule affects homeowners in foreclosure avoidance program Jan 29, 2010
Treasury Announces Documentation Changes to Expedite Permanent Mods Jan 28, 2010
Obama's Loan Modification Plan Simplified
As part of his 2009 economic recovery package, President Barack Obama has introduced a plan to rescue and revive the troubled housing market. Called the Homeowner Affordability and Stability Plan (HASP), the plan argues that modifying and restructuring existing distressed mortgages will keep struggling borrowers in their homes and stop the downward spiral of property values by keeping homes from entering foreclosure. There is $75 billion dedicated to this plan, and below are the key details about this plan:
First off, HASP focuses on "mortgage payments" rather than "property values" since it argues that homeowners will continue to stay in their homes, even as values decline, as long as they can make their monthly payments. Many economists agree that foreclosures happen mostly because borrowers can’t pay the monthly payment that they agreed to pay. To that end, Obama's plan requires the particiapting loan servicers to reduce monthly mortgage payments to less than 38% of the borrower's gross monthly income. The government would then pick up the rest of the tab. The loan servicer can use several methods to achieve lowering of the payment such as: reduce the mortgage interest rate to as low as 2%, extend the terms of the loan (possibly up to 40 years), forebear loan principal at no interest. In an attempt to incentivize participation, loan servicers will be paid $1,000 for each modification and will get an additional $1,000/year for up to 3 years, as long as the mortgage payments are paid on time . Borrowers can also get up to $1,000 off the principal balance for up to 5 years if they make their payments on time.
Because HASP is designed for responsible homeowners who just happen to have been plagued by the slump in the housing market, only owner-occupied, primary residences with mortgage balances of up to $729,750 are eligible. The plan also helps those homeowners who have been hit by a "financial hardship" such as a loss of income or a mortgage rate increase which have put them at risk of default. To qualify, each borrower must sign an affidavit of financial hardship and verify their income with documents. Although second liens such as home equity loans or HELOCs are also being addressed by the plan by providing further incentives, key details on this component of the plan are still somewhat unclear.
At the end of the day, it is all about the economic interest of the investor. Servicers typically run the Net Present Value test to determine whether there will be more cash flow to the investor if the loan is modified or not. In this case, government is helping to pick up the slack where there is shortfall of cash.
Loan modification agreements come in different forms but quite frequently they involve the reduction of mortgage's interest rate for a specified period of time so the homeowner can continue to make payments and stay in the home. Loans can also be modified so they have a longer amortization term (e.g. 40 year instead of 30 year) which will cause the payments to decrease. Principal writedowns are rare, but they do indeed happen where the bank actually writes down some of the principal amount.
Majority of the home loans needing modifcation today are conforming mortgage loans made by big banks such as HSBC, CitiMortgage, Countrywide, Household, IndyMac, JPMorgan, Wells Fargo, Washington Mutual and Bank of America and based on Fannie Mae and Freddie Mac guidelines. If you are behind on your mortgage and do not see any relief in your near term future, you can benefit from a loan mod. Act now since time is really not on your side. Get Started Now!
Loan modifications used to be reserved for borrowers whose mortgages became delinquent because of job losses, divorce proceedings, or illness, but today they are also open to those individuals who are suffering in the aftermath of adjustable rate mortgages skyrocketing and placing the monthly payment beyond the means of the borrower. It is vital to begin the process as soon as possible when the damage to the budget and the financial backup of the homeowner is still contained. The sooner a fixed rate is negotiated, the better the odds of receiving a most beneficial rate cut and experiencing the relief that lowered mortgage payments will bring. Get Started Now!
If you love your home and know you can afford it, but the current mortgage is threatening a loss of both home and good credit, let us match you up with experienced loan modification legal professionals to see if you are a qualified applicant for the process. Fill out the form to the right to see if you qualify.
Even if you have attempted to work with your own lender in the past and have come away from that experience with a less than positive experience, we can help. As a matter of fact, many lending institutions experience a severe lack of trained personnel to help struggling homeowners save their homes and it is therefore common that the homeowner is left without any help - in spite of a business relationship with the company that may have spanned several years.
Understanding the plight facing homeowners today and the very real threat of foreclosure, legal assistance during the process of applying for a loan modification is essential in the attempt to make the lender sit up and listen and provide the best possible solution for any homeowner before it is too late. Do not hesitate to contact us so we can connect you with a legal professional today who is well versed in the field of loan modification and who will save your budget, your home, and your good credit. The assistance you receive is fast, concise and confidential.
Do not put it off any longer but enlist the help of a powerful ally today by filling out the form. Get Started Now!
We have performed successful mortgage loan modifications in all 50 states:
Among the most successful states are California loan modification, Nevada loan modification, New York loan modification, Florida loan modification, Pennsylvania loan modification.
Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, District of Columbia, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, Wyoming.
