As a result of recent legislation passed to slow down the rate of foreclosures and to help borrowers trapped in loans they cannot afford, lenders are considering and qualifying homeowners for loan modifications depending upon the hardship and their adjustable rate mortgage (ARMs). If the rate adjustment is going to occur within the next 60 to 90 days, one is more likely to obtain a loan modification. Know that the lenders tend to grant loan modifications if the ARM caused the financial hardship or will cause a financial hardship within the near future. Simple debt or the loss of a job may or may not enough to permit a loan modification.
A loan modification is a revised agreement, in which the lender modifies the current terms and reduces the monthly payment for the borrower. The primary objective of a loan modification is to restructure the mortgage to a payment that is affordable for the homeowner. Recent state legislation and Congressional initiatives require lenders to make possible every effort to provide loan modifications to homeowners risking foreclosure.
Are you stuck in an adjustable rate mortgage you can't afford?
Modifying your current mortgage loan could be the solution for keeping your home!
- Stop the Harassing Calls from Your Lender
- Remain in Your Home
- Free Foreclosure Prevention Analysis
- Reduced Interest Rates
- Lower Mortgage Payments
- Short Sale Advice
- Fast Mortgage Relief
- No Cost Consultation
What kind of results can I expect?
In some cases, lenders have agreed to such terms as: forbearance (a temporary break from making mortgage payments), temporary or permanent lower than market interest rate, lien stripping where the mortgage company lets you pay off settle for less...(i.e., 2nd mortgage is $125,000 and the let you buy it off for $17,000). Why? Because the 2nd mortgage banks get nothing if a bankruptcy is started prior to foreclosure. And, it's better for them to get something that to lose everything.
Loan modifications are less of a loss to lenders than foreclosure. According to research by FBR Capital Markets, the projected loss severity for a bank from a loan modification was 12%, compared with 42% in case of foreclosure.
The Loan Modification Outlet has assembled a team of Christian lawyers and mortgage modifiers who have experience negotiating with lenders in an effort to offer homeowners a lower monthly payment. Our team strives to help people retain their homeownership by modifying their mortgage with affordable monthly payments.