Loan Modification FAQs

When the terms and conditions pertaining to the home loan are changed permanently it is called loan modification. Major modifications sought by the applicants are with reference to reduction in the monthly payment, reduction in the rate of interest, reduction in the total pending amount, exoneration from the penalties due to irregular payments or a blend of all the changes. To summarize, reduction in the monthly payment and respite from the financial crisis is a sign of a good loan modification program.

Some Common Frequently Asked Questions:

• Am I eligible for loan modification? How do I come to know about it?
• Is there any need for the bank to do the physical inspection of my residence?
• What about penalties and late fees?
• Can a loan modification prevent foreclosure?
• Can the payments that I have missed be added back to my new loan?
• Do I have sufficient time to avert foreclosure?
• What can I anticipate from loan modification?
• What is the process of qualifying for the home loan modification program?

1) Am I eligible for loan modification? How do I come to know about it?
You qualify for home loan modification if you demonstrate and prove that you are able to pay the monthly payment of the new loan in the present and in the future. You will have to submit income proof like bank statements and the salary stubs or slips. You also need to furnish us with complete financial statements. It is after this, that we go ahead with your application for loan modification.

2) Is there any need for the bank to do the physical inspection of my residence?
In most of the cases there is no need for the bank to do any physical inspection of the residence. We have come across many cases in which the lender is under compulsion to do a second inspection.

3) What about penalties and late fees?
In most of the cases the penalties and late fees are waived off. We take utmost care that the creditors or the lenders do not charge the late fees. We also see to it that the pending dues if any are included in the new loan.

4) Can a loan modification prevent foreclosure?
Yes, loan modification can prevent foreclosure. One of the major objectives of loan modification program is to avert foreclosure.

5) Can the payments that I have missed be added back to my new loan?
To the best of our experience, the payments that you have missed can be added to the new loan in such a way that it is spread over a specific duration to make the monthly payment affordable.

6) Do I have sufficient time to avert foreclosure?
One can be optimistic till the time of foreclosure sales actually takes place. If a date is set then the debtor should act quickly without wasting any time. If you try to avert foreclosure just before a day or two it can turn out to be too risky because the lenders may not agree. The best alternative with the debtor is to act and contact us as quickly as possible so that the loan modification process starts quickly. .

7) What can I anticipate from loan modification?
The possible outcome of the loan modification process can be

• Reduced monthly payments
• Fixed term of 30 yrs
• Past payments that are completely or partially deferred
• Preservation of home ownership
• Preservation of the credit ranking
• Reduction in the principal balance
• Reduction in the rate of interest.

8) What is the process of qualifying for the home loan modification program?
You just need to contact us through the following click to know whether you qualify for the loan modification program or not.