WHAT IS A LOAN MODIFICATION?

A loan modification is an agreement between the homeowner/borrower and the lending institution (bank) holding the mortgage that changes the terms of the original loan rather than creating an entirely different new loan agreement.

A loan modification is a process for a homeowner in financial distress to gain a measure of relief when having trouble making the regular monthly payment.  The modification can lower the interest rate on the loan, thus lower the monthly payment, it many extend the term of the loan that can also help lower the monthly payment.  It may also provide relief for some payments missed by adding them to the “back” of the loan.

A loan modification is not a refinance, though some FHA loans may also for a “Short Pay” refinance.  Ask for details.

WHO IS BEST QUALIFIED TO OBTAIN A LOAN MODIFICATION?

For optimum loan modification results it is extremely important to choose an expert with specific experience in negotiating loan modifications, verifiable credentials, favorable Better Business Bureau ratings, and an individual or firm you can trust.  Choose either a qualified attorney or an experienced bonded real estate licensee. 

HOMEOWNERS MUST QUALIFY FOR LOAN MODIFICATIONS

To be a candidate for a loan modification 3 CONDITIONS must be met:

1.      You must still be employed

2.      You must desire to remain in you home saving it from foreclosure.

3.      You must have qualified financial hardship resulting difficulty making regular monthly home loan payments.

For example, if you are a homeowner with an “interest only” mortgage currently facing substantially increased payments as many other have experienced, you can qualify for a loan modification since a rate increase qualifies as a financial hardship factor.  However, do not wait too long to take remedial action.  Inaction leads to those increased payments, notices of default, foreclosure actions and greater difficulty in obtaining a loan modification.

Additional income and expense conditions apply with household expenses not exceeding between approximately 30-40% of household income.  These guidelines are subject to limited adjustments when properly presented to banks by qualified negotiators. 

HOW TO GET STARTED

Gather all documentation from origination of all current loans secured by the property.  In addition, prepare a current financial statement, household income and expense schedules, recent pay stubs, recent bank statements, tax returns, along with additional information if self employed.   Contact your preferred loan modification representative.

FORENSIC AUDIT CONDUCTED

A forensic audit is conducted to analyze all loans in question to determine any lender or loan servicer regulation violations, misrepresentations, miscalculations, nondisclosures, predatory lending or any other factors to assist in a borrower’s rights to a loan modification or any additional legal rights. 

HOW LONG IS THE PROCESS?

Lenders are often just as eager to complete the loan modification process.  It is in their best interest not only to help the homeowner remain in the home, but also to keep their loan classified as a performing loan, and to avoid further nonperforming loan consequences such as foreclosures, repair, and reselling the property.

FHA loan modification can take as little as two weeks to two months.  However, the average loan modification extends from two to four months.

PROBABILITY OF SUCCESS

While recent industry reports indicate a 50% success rate, our clients have experienced between 80-90% successes. Why the difference?

Success is based upon preparation and an applicant’s qualifications.  We do not take all clients, but only those who have a likelihood of qualifying and obtaining a loan modification.  There is no need to waste a client’s time or money seeking that which is not attainable.  If an applicant qualifies the work can begin with an excellent chance of success.  All applicants are screened and advised of the likelihood of success.

EFFECTS ON CREDIT REPORT

A client’s credit report is affected by many factors before and/or during the loan modification process.  Absent other outstanding debt obligations the loan modification process itself should not negatively affect one’s credit rating.

HOW MUCH DOES A LOAN MODIFICATIONCOST?

Fees begin at $1,995 up to $4,995 depending upon the type, amount and/or number of loans secured by the subject property.

ARE ANY FEES REFUNDABLE?

Subject to a small initial qualification processing fee, the majority of a retainer fee is refundable.

*** Before retaining unlicensed loan modification firms, real estate agencies that are not bonded or any company not highly rated by the Better Business Bureau, talk to us for clear concise information.

FREE CONFIDENTIAL ONE HOUR CONSULTATION

CONTACT

ATTORNEYS REAL ESTATE SERVICES

HOWARD HARMATZ                      EMAIL: howardharmatz@earthlink.net

ATTORNEY AT LAW

22312 EL PASEO, SUITE “H”

RANCHO SANTA MARGARITA, CA 92688

IN ASSOCIATION WITH THE LAW OFFICES OF

ANDREA LOVELESS, LLP              EMAIL: andrea@andrealovelesslaw.com

114 PACIFICA, SUITE 215

IRVINE, CA 92618

(949) 679-4690