What is a loan modification?
Loan Modification: A loan modification is an agreement that is negotiated with your lender that changes the terms of your current loan. It can alter the characteristics of the loan term, rate, balance, and penalties. Lenders can be willing to negotiate when you are facing financial difficulties and can not find other financing alternatives. You must be able to show your lender why it would be in their best interest to agree to a modification. A lender may be willing to reduce the interest rate, monthly payment or change other terms. It is important to understand that a loan modification is not reported to the credit agencies and will not have an adverse impact on your credit scores
Who qualifies for a loan modification?
- Someone who does not qualify for a refinance
- Someone currently in an adjustable rate mortgage
- Someone who is behind on your mortgage
- Someone whose mortgage payments are too high
- Someone who has had a hardship
- Someone who is self employed
- Someone who has no equity in your home or are “upside down”
- Someone who is about to go into foreclosure
- Someone who cannot afford their mortgage payments
Why are the banks willing to do this?
With the housing market in total disarray, the lenders loosing money, and the economy on the verge of crumbling, the banks would rather modify your loan terms then take on another Foreclosure. Equity in homes has shrunk and in many area’s become negative, leaving homeowners upside down on their loans. Banks would rather reduce the payments and/or balance than foreclose on another property. The fact that banks are willing to negotiate lower payments brings about this part of the real estate cycle know as “The Modification Period”. Although extremely rare, during these periods, both the bank and the borrowers are deemed powerless. Both face tough times ahead and only as a team can the banks and borrowers pull out of this deep tailspin. They must work together to keep Americans in their homes but also to begin to turn this recession around. Loan modification often equates to immediate financial losses for our banking institutions, but the long term gain will well outweigh the short term loss. By slowing future foreclosures through loan modifications, the banks will begin to firm up soft markets. This in turn will offer relief to the homeowner’s upside down on their loans.
Do I need to hire a company to do my loan modification?
Some people are scared to call or talk to their lenders when they are behind on their mortgage. This is the main reason to use an outside company. Many of these companies claim they have better relationships with the lenders. These services can charge anywhere from $1000.00 - $5000.00 bucks. Having a company fight for you is great, but is it worth the additional cost? We feel that the lender would much rather work with you directly, and not through a third party. This e-kit gives you all the tools you need to successfully negotiate your own loan modification. Don’t be afraid anymore, you can do this!
Why should I buy your e-kit?
With so many choices in loan modification, knowing the right path can be half the battle. Our kit offers so much more then other self help kits. We give you all the tools and resources you will need to complete your loan modification. Included in our kit are some incredible financial worksheets and budget resources you can use the rest of your life. We will show you how to modify your loan, and also how to get yourself financially back on track. We have included resources on fixing your credit, creating monthly budgets, and saving for the future. All tools you will need to continue enjoying financial freedom after your loan modification is complete. All for only $99.00 $49.99. Our e-kit was truly created to help thousands of Americans get out of the financial turmoil they are currently in. charging thousands of dollars for this service is simple unfair to American facing tough times. We feel this will be the best 50 bucks you ever spend!! This book was written from the real trials and tribulations the author faced in modifying his own loan. His success proved to himself that thousands of other families could benefit from everything he learned. If this kit helps you and your family, please leave a testimonial on our site for others to read.
Is it to late to modify my loan if I am already in foreclosure?
If your home has not sold, you are still ok. Don’t delay; your time line is very small. The sooner you get your request in, the better chance you have of keeping your home. Once a modification request is submitted, your foreclosure proceeding will be placed on hold. Having the right direction here can make all the difference in the world. You must act now!!
How long does the whole process take?
The loan modification process can take anywhere from 2 weeks to 2 months depending on the lender, and the types of modifications requested. You must be prepared to offer proof of your income and expenses, as well as a documented value of your home. The lenders are swamped with requests so it often takes weeks between having them review and re-review your request. This is a negotiation that can often go back and forth. Customer can counter offer the lenders offer as many times as they like. On average, we estimate the time to be approx 3-4 weeks. Our e-kit can make the process move quickly and efficiently.
Can I really get the bank to lower my rate, and balance of my loan?
Although now easy, the lender is some times willing to lower both your interest rate, and your current loan balance. This can also be combined with a fixed rate, and forgiveness of penalties and fee’s. Greedy borrowers will often get nothing while homeowners who propose a fair modification are often granted their requests. We will show you exactly how to determine which aspects of your loan you are most likely to get modified!
