A: A Loan Modification occurs when a Lender allows a homeowner to modify the terms of an existing mortgage. It is an addendum to an existing loan. It’s not a new loan. This enables homeowners to maintain monthly payments and stay in their homes. Loan modification may include: a reduced interest rate, modification of the principle, variable to fixed rate loans, forgiveness of arrears, or moving a portion of the principle and/or arrears to the back end of the loan.
A Loan Modification typically changes the loan substantially. This differs from a forbearance agreement, which is a short-term agreement that brings someone current on back payments and penalties.
A: Yes. Although banks make it very difficult to do. They will often compromise with homeowners, especially if they are making late payments, have notices of default (NOD) and/or, Notices of Sale (NOS). Banks would rather resolve these situations than foreclose on properties because they lose money trying to sell your home in today’s market. Therefore, banks are encouraged to keep you in your home if at all possible.
Q: Is loan modification legit?
A: There have been many fraudulent companies out there who have taken peoples’ money without doing the work. However, we are attorneys who provide Loan Modification as part of a full service law firm. We have been in existence for 14 years in Woodland Hills, California, and are compliant with all California laws. You can visit us in our law offices any time, and speak with our attorneys directly about your file. We value our service to the community. Our reputation and success with our clients is extremely important to us. There have been equally eggregious actions done by the banks and "help" groups, it leaves people caught in the middle.
Q: Should I get a Loan Modification?
A: A Loan Modification will likely benefit you if you currently have an Adjustable Rate Mortgage that is about to reset to a high monthly payment. It is very difficult to refinance if your home has little or no equity. Due to the value of homes steadily dropping a Loan Modification may be the only solution available to keep you in your home.
Q: What is the procedure of a Loan Modification?
A: Through a loan modification, changes are made to mortgages in terms of – monthly payments, interest rates, length of the loan, and principle. These aspects can be modified in order to make mortgage payments more affordable to the homeowner.
Q: What should I expect out of our first meeting and subsequent meetings?
A: We will first present you with a rather simple, few-page breakdown of your expenses and finances. Then, we will offer you a formal detailed request on your behalf, which will be presented to the bank for your Loan Modification. Through this formal request, we will demonstrate that your current income situation requires changes be made to your existing loan. We will then negotiate the best terms possible to keep you in your home with an affordable monthly mortgage payment.
Q: How long does the Loan Modification process take?
A: A Loan Modification can be completed within 60 days (in some cases), but typically, it will take about 90 days to complete.
Q: Will I have to deal with a terrifying amount of paperwork from the bank?
A: There is a lot of paperwork, but we’re here to help. WE HANDLE EVERYTHING. Our firm will negotiate with the lenders and do the work. You can track our work with our online log in system.
Q: Does a loan modification work for everyone?
A: No. When people WAIT TOO LONG and do not ACT EARLY enough, lenders will not consider a Loan Modification. Since it takes time to negotiate with lenders, they are less than willing to enter into discussions when a Foreclosure is just days away.
Q: When should I take care of my ARM or Interest-Only Loan?
A: NOW! Do not wait until it is too late. Time is of the essence because it takes 60-120 days to complete the process! Call us TODAY!
Q: Can I stop my foreclosure in enough time?
A: Yes, if you act sooner, rather than later. It is important for you to find the appropriate state laws pertaining to your situation. However, you should be aware that time is of the essence! Loan Modification, as with other loss mitigation techniques, all require time. So, stopping your foreclosure requires you to take charge of your situation and act now! PLEASE CALL US TODAY. We are here to help you!
Q: Will this be able to work for me?
A: Yes. Our firm explores all possible alternatives and approaches to keep you in your home and save your credit.
Q: What is the difference between Loan Modification, Refinancing, and Debt Consolidation?
A: Loan Modification involves a comprehensive negotiation with the lender for a REDUCTION in your monthly payments and, perhaps, principle.
Refinancing is a very difficult process in today’s mortgage environment, since as many homeowners lack credit and equity to receive new mortgages.
Debt Consolidation mainly attempts to restructure your (unsecured debt) credit cards into lower monthly payments through lower interest rate credit cards. It will not change your monthly mortgage.
