Loan Modification News-Here's the skinny on what loans qualify for modification.

Here's the skinny on what loans qualify for modification.
Part 1 of a two part series

US Treasury predicts 2.9 million Foreclosures between 2009 and2011, for each year. In addition, you know the government, there numbers are often not only off but short by a long shot. To put that into context, a normal year according to treasury there are eight hundred thousand foreclosures a year. This this means the treasury expects over three times as many foreclosures. What homeowners need is help to negotiate affordable mortgage terms. The article goes on to say that, “6-8 million loans need to be modified to stem foreclosures”

What Loans Qualify

Residence or rental property
It is true that just months ago you could not get a modification on a rental property, but this is no longer the case. If you can show hardship these loans may too be modified.

Loans that are current (or behind)
Your residence or rental property
Loans in pre-foreclosure
Loans that are not yet in foreclosure
The key here is that the homer owner must be struggling to make payments. Don’t think you can get a modification just because you would like to pay less monthly payments. This falls under the area of refinance.

What is Loan Modification?
Loan modification means the terms of the loan are changed to make it easier to pay. If the homeowner is in default, the modification gets them out of default.

Here’s how
Lower the interest rate- chop the rate in half and you pretty much cut the loan amount in half or close to it.

Stretch out the term (number of payments)

Penalties and Late Fees We can some times get the banks to forgive these fees
Reduce the Principle This one doesn’t happen often but I have gotten this accomplished

Sample loan mod we recently did for a neighbor:
Mortgage at 9.75 %, 100,000 for 30 years. Payment $859.15
After Loan Mod- 5.25 Still at 100.000 a month for 30 years.
Payment - 552.20
Savings of 306.95/month - a 35% reduction! For each and every month for the life of the loan They are saving $3,683.40 each year

That’s helping people in a substantial way

Who needs to have their loans modified
Any body who got a mortgage from 2003-2007
Pre Foreclosures
Sheriff’s sale

Do it yourself loan Mod: Reasons to hire an expert
Does not work. Homeowners have absolutely no idea what to negotiate. As desperate Homeowners,they will take whatever crumbs the Bank gives them. -How do you know this is the banks best offer?

US Treasury says”25% of loan mods go up "More then 50% of the time loan mods fail".Problem: The home owner excepts what the lender offers 1st. You can spend a lot of time bumbling (wasted time on the phone) only to get a bad loan modification. If senator Maxine Waters couldn't’t get through to Bank of America after 4 and ½ hours, what do you think your chances are?

Contact us for more info at 800-782-1408